China and US Economic Indicators There has been a lot of comparison of China’s economy with the United States due to the economic growth China has been experiencing in the recent years. The United States however still remains quite ahead of China in terms of economic indicators such as employment and GDP. The GDP of the United States in 2009 was nearly $15 trillion while the China’s GDP was $ 5 trillion. The income levels for the average American was ten times more than for the average Chinese individual. These measures of GDP and income levels may not show the gains made by the Chinese economy. The purchasing power of the Chinese has been increasing yearly. A higher number of consumer goods are cheaper in China enabling the people to purchase more with their income. The purchasing power is therefore a better measure since the same amount of money should be able to buy the same types of goods in any place in the continent. The GDP of China adjusted by the current purchasing power shows that the country’s GDP is nearly $10 trillion. The gap of $5 trillion could be closed in the next few years considering the high GDP growth of the China [1] . The inflation in China has been increasing at a faster rate than the US causing the World Bank in 2005 to adjust the PPP measure of the country downwards by 40%. The inflation rate has continued to be higher than the United States even after 2005. The GDP growth of the United States over the period 1981 to 2010 increased 4.7 times however the Chinese GDP increased by over 30 times over the same period. In the area of trade, China has been able to surpass the United States in the area of exports. China is the biggest world exporter. In the period 1998-2000, there was a significant gap between the two countries however in 2006, China caught up and in 2010 and there is a gap with China leading. The export industry has shown significant progress. In the area of foreign debt, the United States over the years has been increasing its debt at a fast rate. It has made the experts and scholars in the country to be concerned as it currently stands at $4.45 trillion. China’s foreign debt on the other hand is a lower level of $785.17 billion. In light of all the economic indicators discussed, the world is watching China and it is expected in the next few years it be the world leader in the economy. US and China’s Capitalism impact on Economic Growth China’s capitalism is different from the United States since it practices state capitalism. The government controls the economy in a vertical economic structure. At the top there are monopolistic state companies which control the key industries while at the lower end, the government has allowed the state companies to face private competition [2] . The state controls the petroleum and natural gases, electricity and power, banks, transport and information technology industries. The trade liberalization policies adopted by the country especially when the country joined the WTO in 2001, caused a lot of expansion in private competition at the lower ends which caused high demand of the products sold by the state owned corporations in the key industries. The structure combined with labo