As of October 2020 China has surpassed the U.S. as the largest economy in the world, with a GDP of $24.2 trillion versus the U.S. GDP of $20.8 trillion. This is based on the IMF measurement, which takes into account purchasing power parity. Because it places greater weight on China’s domestic market China’s economy is larger than the U.S. in terms of sheer purchasing power. However, that doesn’t make China’s economy the most important in the world. Because of globalization each economy contributes to the overall global economy, making China very important, but not more important that other major economies in Asia, such as Australia and Japan.