China's gross domestic product (GDP), an indicator to a country's economy, is expected to surpass that of the United States in 2020.
Standard Chartered Bank, a British multinational banking and financial services firm, released a report that stated China's economy will increase at a rate of seven per cent between 2013 and 2020, overtaking the US in seven years.
"The economic growth, however, will slow down to 5.3 per cent from 2021 to 2030," said the Standard Chartered report. "The figure is still higher than the rate that the US economy is growing, registering growth of just 1.8 per cent in the first part of this year."
The Standard Chartered report meant that it will only take seven years for China's economy to overtake the US if the Chinese economic indicators will continue to show positive results.
The Organization for Economic Cooperation and Development say the GDP of the US will increase at 1.7 per cent this year, or lower that its prediction of 1.9 per cent growth early this year. China, meanwhile, has maintained its more than 7 per cent economic growth rate and experts anticipate that the country's economy will hit 7.5 per cent by next year.
Analysts, however, cautioned that Chinese officials will have to implement the various reforms discussed during the Third Plenum of the 8th Central Committee of the Communist Party of China last week in order to achieve the predicted economic growth. "The reform," analysts say, "holds the key to China's economy."
"China's ambitious economic reforms is foreseen as the main factor that will keep China's economic growth of about 8 per cent year-on-year," said Zheng Zinli of the China Center for International Economic Exchanges.
The Chinese Government is aiming for 7.5 per cent growth this year but according to the Organization for Economic Co-operation and Development (OECD), an international economic organization of 34 countries, China's economy will grow 7.7 per cent this year and could accelerate to 8.2 per cent next year.