Why does China have higher GDP in PPP but lower nominal GDP?

GDP measured by purchasing power parity (PPP) accounts for the cost of living and local price levels, while nominal GDP uses current exchange rates. China's lower cost of living means its economic output has greater purchasing power domestically, but converting to USD at market exchange rates shows a smaller nominal value.

How does US military spending compare to China's?

The US defense budget in 2026 is approximately $821 billion, nearly 2.8 times larger than China's ~$296 billion. This disparity reflects the US focus on advanced technology, global military presence, and higher personnel costs, while China emphasizes rapid modernization and regional capabilities.

Which country has technological superiority in 2026?

The US leads in advanced semiconductors, quantum computing, and military technology, while China leads in AI applications, 5G deployment, and renewable energy. Both nations are competitive across different technology sectors, making overall superiority context-dependent.

What are the strategic implications of these differences?

The US maintains global military dominance through technological superiority and defense spending, while China's economic scale and large military force position it as the dominant regional power in Asia. Both represent competing models of great power influence—technology-driven versus population and manufacturing-driven.

How is the 15th Five-Year Plan (2026-2030) affecting China's economy?

China's 15th Five-Year Plan beginning in 2026 focuses on sustainable growth, technological innovation, and economic restructuring. This strategic framework guides long-term development priorities and influences military modernization, defense spending, and technology investment decisions.

China vs United States: GDP, Military & Technology 2026

Updated March 27, 2026

China (People's Republic of China)

World's second-largest economy with rapid growth and manufacturing dominance.

Nations seeking manufacturing partnerships and emerging market investments

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United States of America

World's largest economy by nominal GDP with superior per capita wealth and leadership in advanced technology.

Nations prioritizing advanced technology partnerships and military alliances

Short Answer

The US maintains military superiority with advanced technology and higher defense spending, while China leads in GDP by purchasing power parity and has rapidly expanding military capabilities. Both nations compete across economic, military, and technological domains with distinct strategic advantages.

Our Verdict

In 2026, the United States maintains overall military and technological superiority with significantly higher defense spending and advanced weapon systems, while China has achieved GDP leadership by purchasing power parity and continues rapid military modernization. Both superpowers represent distinct models of power projection—the US through advanced technology and global military infrastructure, and China through economic scale and growing military capabilities.

China (People's Republic of China)6.9

8.1United States of America

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Key Differences at a Glance

🔹

Military Defense Spending: United States of America wins (~$821 billion vs ~$296 billion)

💵

GDP (Nominal): United States of America wins (~$27.4 trillion vs ~$17.9 trillion)

💵

GDP (Purchasing Power Parity): China (People's Republic of China) wins (~$35.5 trillion vs ~$27.6 trillion)

See all 7 differences

Key Facts & Figures

Metric	China (People's Republic of China)	United States of America	Diff
Nominal GDP(trillion USD)	$17.9 trillion	$27.4 trillion	-35%
GDP (Purchasing Power Parity)(USD Trillion)	$35.5 trillion	$27.6 trillion	+29%
Defense Spending(USD Billion)	$296 billion

Key Differences

China (People's Republic of China)

Attribute

United States of America

~$296 billion

Military Defense Spending

~$821 billion🏆

~$17.9 trillion

GDP (Nominal)

~$27.4 trillion🏆

~$35.5 trillion🏆

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Last updated: March 27, 2026AI generated

Military Defense Spending

China (People's Republic of China)

~$296 billion

United States of America

~$821 billion🏆

GDP (Nominal)

China (People's Republic of China)

~$17.9 trillion

United States of America

~$27.4 trillion🏆

GDP (Purchasing Power Parity)

China (People's Republic of China)

~$35.5 trillion🏆

United States of America

~$27.6 trillion

Active Military Personnel

China (People's Republic of China)

~2.0 million🏆

United States of America

~1.3 million

Naval Destroyers

China (People's Republic of China)

~27

United States of America

~57🏆

Combat Helicopters

China (People's Republic of China)

~1,400

United States of America

~6,300🏆

Technology Innovation Index

China (People's Republic of China)

Emerging leader in AI/5G

United States of America

Dominant in advanced semiconductors

Full Comparison

Attribute	China (People's Republic of China)	United States of America

Nominal GDP(trillion USD)	$17.9 trillion	$27.4 trillion
Total GDP (Nominal)(USD trillion)	$30.1 trillion	—

GDP (Purchasing Power Parity)(USD Trillion)	$35.5 trillion	$27.6 trillion
Foreign Exchange Reserves(USD Billion)	$3.2 trillion	$637 billion
Total GDP(USD Trillions)	$30.0+	—

Defense Spending(USD Billion)	$296 billion	$821 billion
Combat Helicopters(Count)	1,400	6,300

Active Military Personnel(Million)	2.0 million	1.3 million

Naval Destroyers(Count)	27	57

Technology Innovation Focus	AI, 5G, semiconductors, renewable energy	Advanced semiconductors, AI, quantum computing, defense tech

Nominal GDP 2026(USD Trillions)	$20.85 trillion	$31.82 trillion

GDP Growth Rate(% annual)	5.2% (2024-2026 avg)	—

Per Capita GDP 2026(USD)	$14,800	—
Per Capita GDP (Nominal)(USD)	$89,000+	—

Global Economic Rank(rank)	2nd largest	—
Global GDP Market Share(Percentage (%))	23.6%	—

Population(millions)	1.4 billion	—

GDP Gap vs Leader(USD trillions)	-$11.53 trillion	—

Years to Close GDP Gap (at current growth rates)(years (projection))	~18-22 years	—

Manufacturing Output as % of Global(% of world)	~28% (largest)	—

GDP by Purchasing Power Parity 2026(USD trillion)	$31.82 trillion	—

Global GDP Share (Nominal)(percent)	22.73%	—

Per Capita Income Multiplier (Nominal)(ratio)	6.31x higher	—
GDP Per Capita(USD)	$89,000	—
GDP Per Capita Nominal(USD)	$94,800	—

EV Production Market Share(percent)	Emerging leader, <30%	—

Global Manufacturing Output(%)	~15%	—

Combined Global Economic Share (Nominal)(percent)	42.46% (combined US-China)	—

Electric Vehicle Production Share(%)	18%	—

Solar Panel Production Share(percent)	~15%	—

Lithium Iron Phosphate Battery Production(%)	6%	—

GDP Growth Rate 2026(%)	2.5%	—

Government Expenditure(USD Million)	€10,266.8B	—

Defense Expenditure(Million Euros)	€925,796.8M	—

Education Spending Per Capita(EUR)	€3,981	—

Global EV Production Share(%)	20%	—

Lithium Battery Production Share(%)	6%	—

PPP-Adjusted GDP 2026(trillion USD)	$15.29 trillion	—

Projected GDP Growth Rate 2026(percent)	2.0-2.5%	—
Annual GDP Growth Rate (2026)(%)	2.0–2.5%	—

Global Manufacturing Output Share(%)	~18%	—

Lithium-Ion Battery Production(percent)	6%	—

Global Solar Panel Manufacturing(%)	<5%	—

Forecast Unemployment Rate (2026)(%)	4.5%	—

China (People's Republic of China)

United States of America

Nominal GDP(trillion USD)

$17.9 trillion

$27.4 trillion

Total GDP (Nominal)(USD trillion)

$30.1 trillion

—

GDP (Purchasing Power Parity)(USD Trillion)

$35.5 trillion

$27.6 trillion

Foreign Exchange Reserves(USD Billion)

$3.2 trillion

$637 billion

Total GDP(USD Trillions)

$30.0+

—

Defense Spending(USD Billion)

$296 billion

$821 billion

Combat Helicopters(Count)

1,400

6,300

Active Military Personnel(Million)

2.0 million

1.3 million

Naval Destroyers(Count)

Technology Innovation Focus

AI, 5G, semiconductors, renewable energy

Advanced semiconductors, AI, quantum computing, defense tech

Nominal GDP 2026(USD Trillions)

$20.85 trillion

$31.82 trillion

GDP Growth Rate(% annual)

5.2% (2024-2026 avg)

—

Per Capita GDP 2026(USD)

$14,800

—

Per Capita GDP (Nominal)(USD)

$89,000+

—

Global Economic Rank(rank)

2nd largest

—

Global GDP Market Share(Percentage (%))

23.6%

—

Population(millions)

1.4 billion

—

GDP Gap vs Leader(USD trillions)

-$11.53 trillion

—

Years to Close GDP Gap (at current growth rates)(years (projection))

~18-22 years

—

Manufacturing Output as % of Global(% of world)

~28% (largest)

—

GDP by Purchasing Power Parity 2026(USD trillion)

$31.82 trillion

—

Global GDP Share (Nominal)(percent)

22.73%

—

Per Capita Income Multiplier (Nominal)(ratio)

6.31x higher

—

GDP Per Capita(USD)

$89,000

—

GDP Per Capita Nominal(USD)

$94,800

—

EV Production Market Share(percent)

Emerging leader, <30%

—

Global Manufacturing Output(%)

~15%

—

Combined Global Economic Share (Nominal)(percent)

42.46% (combined US-China)

—

Electric Vehicle Production Share(%)

18%

—

Solar Panel Production Share(percent)

~15%

—

Lithium Iron Phosphate Battery Production(%)

—

GDP Growth Rate 2026(%)

2.5%

—

Government Expenditure(USD Million)

€10,266.8B

—

Defense Expenditure(Million Euros)

€925,796.8M

—

Education Spending Per Capita(EUR)

€3,981

—

Global EV Production Share(%)

20%

—

Lithium Battery Production Share(%)

—

PPP-Adjusted GDP 2026(trillion USD)

$15.29 trillion

—

Projected GDP Growth Rate 2026(percent)

2.0-2.5%

—

Annual GDP Growth Rate (2026)(%)

2.0–2.5%

—

Global Manufacturing Output Share(%)

~18%

—

Lithium-Ion Battery Production(percent)

—

Global Solar Panel Manufacturing(%)

<5%

—

Forecast Unemployment Rate (2026)(%)

4.5%

—

Full Comparison

Attribute	China (People's Republic of China)	United States of America

Nominal GDP(trillion USD)	$17.9 trillion	$27.4 trillion
Total GDP (Nominal)(USD trillion)	$30.1 trillion	—

GDP (Purchasing Power Parity)(USD Trillion)	$35.5 trillion	$27.6 trillion
Foreign Exchange Reserves(USD Billion)	$3.2 trillion	$637 billion
Total GDP(USD Trillions)	$30.0+	—

Defense Spending(USD Billion)	$296 billion	$821 billion
Combat Helicopters(Count)	1,400	6,300

Active Military Personnel(Million)	2.0 million	1.3 million

Naval Destroyers(Count)	27	57

Technology Innovation Focus	AI, 5G, semiconductors, renewable energy	Advanced semiconductors, AI, quantum computing, defense tech

Nominal GDP 2026(USD Trillions)	$20.85 trillion	$31.82 trillion

GDP Growth Rate(% annual)	5.2% (2024-2026 avg)	—

Per Capita GDP 2026(USD)	$14,800	—
Per Capita GDP (Nominal)(USD)	$89,000+	—

Global Economic Rank(rank)	2nd largest	—
Global GDP Market Share(Percentage (%))	23.6%	—

Population(millions)	1.4 billion	—

GDP Gap vs Leader(USD trillions)	-$11.53 trillion	—

Years to Close GDP Gap (at current growth rates)(years (projection))	~18-22 years	—

Manufacturing Output as % of Global(% of world)	~28% (largest)	—

GDP by Purchasing Power Parity 2026(USD trillion)	$31.82 trillion	—

Global GDP Share (Nominal)(percent)	22.73%	—

Per Capita Income Multiplier (Nominal)(ratio)	6.31x higher	—
GDP Per Capita(USD)	$89,000	—
GDP Per Capita Nominal(USD)	$94,800	—

EV Production Market Share(percent)	Emerging leader, <30%	—

Global Manufacturing Output(%)	~15%	—

Combined Global Economic Share (Nominal)(percent)	42.46% (combined US-China)	—

Electric Vehicle Production Share(%)	18%	—

Solar Panel Production Share(percent)	~15%	—

Lithium Iron Phosphate Battery Production(%)	6%	—

GDP Growth Rate 2026(%)	2.5%	—

Government Expenditure(USD Million)	€10,266.8B	—

Defense Expenditure(Million Euros)	€925,796.8M	—

Education Spending Per Capita(EUR)	€3,981	—

Global EV Production Share(%)	20%	—

Lithium Battery Production Share(%)	6%	—

PPP-Adjusted GDP 2026(trillion USD)	$15.29 trillion	—

Projected GDP Growth Rate 2026(percent)	2.0-2.5%	—
Annual GDP Growth Rate (2026)(%)	2.0–2.5%	—

Global Manufacturing Output Share(%)	~18%	—

Lithium-Ion Battery Production(percent)	6%	—

Global Solar Panel Manufacturing(%)	<5%	—

Forecast Unemployment Rate (2026)(%)	4.5%	—

China (People's Republic of China)

United States of America

Nominal GDP(trillion USD)

$17.9 trillion

$27.4 trillion

Total GDP (Nominal)(USD trillion)

$30.1 trillion

—

GDP (Purchasing Power Parity)(USD Trillion)

$35.5 trillion

$27.6 trillion

Foreign Exchange Reserves(USD Billion)

$3.2 trillion

$637 billion

Total GDP(USD Trillions)

$30.0+

—

Defense Spending(USD Billion)

$296 billion

$821 billion

Combat Helicopters(Count)

1,400

6,300

Active Military Personnel(Million)

2.0 million

1.3 million

Naval Destroyers(Count)

Technology Innovation Focus

AI, 5G, semiconductors, renewable energy

Advanced semiconductors, AI, quantum computing, defense tech

Nominal GDP 2026(USD Trillions)

$20.85 trillion

$31.82 trillion

GDP Growth Rate(% annual)

5.2% (2024-2026 avg)

—

Per Capita GDP 2026(USD)

$14,800

—

Per Capita GDP (Nominal)(USD)

$89,000+

—

Global Economic Rank(rank)

2nd largest

—

Global GDP Market Share(Percentage (%))

23.6%

—

Population(millions)

1.4 billion

—

GDP Gap vs Leader(USD trillions)

-$11.53 trillion

—

Years to Close GDP Gap (at current growth rates)(years (projection))

~18-22 years

—

Manufacturing Output as % of Global(% of world)

~28% (largest)

—

GDP by Purchasing Power Parity 2026(USD trillion)

$31.82 trillion

—

Global GDP Share (Nominal)(percent)

22.73%

—

Per Capita Income Multiplier (Nominal)(ratio)

6.31x higher

—

GDP Per Capita(USD)

$89,000

—

GDP Per Capita Nominal(USD)

$94,800

—

EV Production Market Share(percent)

Emerging leader, <30%

—

Global Manufacturing Output(%)

~15%

—

Combined Global Economic Share (Nominal)(percent)

42.46% (combined US-China)

—

Electric Vehicle Production Share(%)

18%

—

Solar Panel Production Share(percent)

~15%

—

Lithium Iron Phosphate Battery Production(%)

—

GDP Growth Rate 2026(%)

2.5%

—

Government Expenditure(USD Million)

€10,266.8B

—

Defense Expenditure(Million Euros)

€925,796.8M

—

Education Spending Per Capita(EUR)

€3,981

—

Global EV Production Share(%)

20%

—

Lithium Battery Production Share(%)

—

PPP-Adjusted GDP 2026(trillion USD)

$15.29 trillion

—

Projected GDP Growth Rate 2026(percent)

2.0-2.5%

—

Annual GDP Growth Rate (2026)(%)

2.0–2.5%

—

Global Manufacturing Output Share(%)

~18%

—

Lithium-Ion Battery Production(percent)

—

Global Solar Panel Manufacturing(%)

<5%

—

Forecast Unemployment Rate (2026)(%)

4.5%

—

China vs United States: GDP, Military & Technology 2026

China (People's Republic of China)

United States of America

Short Answer

Our Verdict

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China vs United States: GDP, Military & Technology 2026

China (People's Republic of China)

United States of America

Short Answer

Our Verdict

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China (People's Republic of China)

Pros

Cons

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Cons

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Resources & Learn More

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