Why does China have a higher PPP GDP but lower nominal GDP than the USA?

PPP (Purchasing Power Parity) adjusts for cost-of-living differences between countries. China has lower prices for goods and services, so its currency goes further domestically. However, in nominal terms (using current exchange rates), the US dollar is stronger, giving the USA higher international purchasing power for imports and foreign investments. This means China's economy is larger for domestic consumption but smaller in global trade.

How do tariffs affect China's GDP growth projections for 2026?

According to Goldman Sachs and ECB analyses, tariff tensions could reduce China's GDP growth by 0.5-2 percentage points, potentially shaving $400-800 billion off its economy through reduced exports and supply chain disruptions. Since China projects 4.5-4.8% growth, tariff impacts could bring this down to 2.5-4.3%, materially affecting both economies' 2026 performance.

Where does China have the biggest competitive advantage over the USA?

China dominates green energy and manufacturing sectors: it produces 70% of global EVs, 94% of lithium-ion batteries, and 80%+ of solar panels. It also controls 35% of global manufacturing output versus the USA's 17%. These advantages in cost-competitive renewable energy and bulk manufacturing give China significant leverage in the energy transition and supply chains.

What is the USA's strongest economic advantage against China?

The USA leads in high-value sectors including semiconductor design, AI software development, advanced financial services, and pharmaceutical innovation. With a per capita GDP 6.31x higher than China's, the USA maintains superior consumer purchasing power and attracts global investment in premium technology sectors. US institutional frameworks and rule of law also provide business advantages China cannot easily replicate.

What does China's 4.5-5% GDP target for 2026 mean?

China's Two Sessions 2026 set a flexible 4.5-5% GDP growth target, signaling focus on high-quality growth over raw expansion. This represents a slowdown from historical rates but reflects China's shift toward sustainable, technology-driven development rather than infrastructure-heavy growth, and acknowledges global uncertainties including tariff risks.

USA vs China GDP Comparison 2026

Updated March 27, 2026

United States of America

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

Investors seeking stable, mature market investments; high-value technology and services

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People's Republic of China

World's 2nd-largest economy with $18.74 trillion nominal GDP and advanced industrial base

Short Answer

The United States leads in nominal GDP with $31.82 trillion versus China's $20.65 trillion, maintaining a 1.54x advantage. However, when measured by purchasing power parity (PPP), China's economy reaches $45.78 trillion, reflecting lower cost structures and massive domestic consumption potential.

Our Verdict

The USA maintains superior nominal GDP and per capita wealth, demonstrating advanced economic development and consumer purchasing power. China's rapid growth rate, PPP-adjusted GDP advantage, and dominance in manufacturing and green energy sectors position it as a formidable economic competitor with different structural strengths. Both economies represent complementary global powerhouses with distinct comparative advantages.

United States of America6.9

8.1People's Republic of China

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Key Differences at a Glance

💵

Nominal GDP 2026: United States of America wins ($31.82 trillion vs $20.65 trillion)

💵

PPP-Adjusted GDP 2026: People's Republic of China wins ($45.78 trillion vs $15.29 trillion)

💵

GDP Per Capita (Nominal): United States of America wins ($94,800 vs $15,000)

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Key Facts & Figures

Metric	United States of America	People's Republic of China	Diff
Nominal GDP 2026(USD Trillions)	$31.82 trillion	$20.65 trillion	+54%
GDP by Purchasing Power Parity 2026(USD trillion)	$31.82 trillion	$35.0+ trillion	-9%
Global GDP Share (Nominal)(percent)	22.73%

Key Differences

United States of America

Attribute

People's Republic of China

$31.82 trillion🏆

Nominal GDP 2026

$20.65 trillion

$15.29 trillion

PPP-Adjusted GDP 2026

$45.78 trillion🏆

$94,800🏆

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Last updated: March 27, 2026AI generated

Nominal GDP 2026

United States of America

$31.82 trillion🏆

People's Republic of China

$20.65 trillion

PPP-Adjusted GDP 2026

United States of America

$15.29 trillion

People's Republic of China

$45.78 trillion🏆

GDP Per Capita (Nominal)

United States of America

$94,800🏆

People's Republic of China

$15,000

Manufacturing Output Share

United States of America

17% of global

People's Republic of China

35% of global🏆

EV Production Market Share

United States of America

18% of global

People's Republic of China

70% of global🏆

Expected GDP Growth Rate 2026

United States of America

2.0-2.5%

People's Republic of China

4.5-4.8%🏆

Global GDP Share (Nominal)

United States of America

22.73%🏆

People's Republic of China

14.77%

Full Comparison

Attribute	United States of America	People's Republic of China

Nominal GDP 2026(USD Trillions)	$31.82 trillion	$20.65 trillion

GDP by Purchasing Power Parity 2026(USD trillion)	$31.82 trillion	$35.0+ trillion

Global GDP Share (Nominal)(percent)	22.73%	14.77%

Per Capita Income Multiplier (Nominal)(ratio)	6.31x higher	1.0x (baseline)
GDP Per Capita(USD)	$89,000	$13,453
GDP Per Capita Nominal(USD)	$94,800	$15,000

EV Production Market Share(percent)	Emerging leader, <30%	70%

Global Manufacturing Output(%)	~15%	35%

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

Per Capita GDP (Nominal)(USD)	$89,000+	$14,100

Global GDP Market Share(Percentage (%))	23.6%	15.2%

Electric Vehicle Production Share(%)	18%	70%

Solar Panel Production Share(percent)	~15%	80%+

Lithium Iron Phosphate Battery Production(%)	6%	94%

Total GDP(USD Trillions)	$30.0+	$17.8+
GDP (Purchasing Power Parity)(USD Trillion)	$27.6 trillion	—
Foreign Exchange Reserves(USD Billion)	$637 billion	—

GDP Growth Rate 2026(%)	2.5%	4.7%

Government Expenditure(USD Million)	€10,266.8B	$6,240,157.8M

Defense Expenditure(Million Euros)	€925,796.8M	$313.7 billion
Defence Expenditure(USD billions)	€299,621.7M	—

Education Spending Per Capita(EUR)	€3,981	€467
Education Expenditure Per Capita(USD)	€469	—

Global EV Production Share(%)	20%	70%

Lithium Battery Production Share(%)	6%	94%

Nominal GDP(trillion USD)	$27.4 trillion	—
Total GDP (Nominal)(USD trillion)	$30.1 trillion	$17.9 trillion
Nominal GDP (Current)(USD Trillion)	$18.74T	—

Defense Spending(USD Billion)	$821 billion	—
Combat Helicopters(Count)	6,300	—

Active Military Personnel(Million)	1.3 million	—

Naval Destroyers(Count)	57	—

Technology Innovation Focus	Advanced semiconductors, AI, quantum computing, defense tech	—

PPP-Adjusted GDP 2026(trillion USD)	$15.29 trillion	$45.78 trillion

Projected GDP Growth Rate 2026(percent)	2.0-2.5%	4.5-4.8%
Annual GDP Growth Rate (2026)(%)	2.0–2.5%	4.6–4.8%

Global Manufacturing Output Share(%)	~18%	35%

Lithium-Ion Battery Production(percent)	6%	94%

Global Solar Panel Manufacturing(%)	<5%	80%+

Forecast Unemployment Rate (2026)(%)	4.5%	~4.0% (estimated)

GDP (Nominal)(USD Trillion)	$17.9 trillion	—

GDP Growth Rate(% annual)	4.8%	—

Population(millions)	1.42 billion	—

Median Age(Years)	38.4 years	—

JPMorgan Growth Leadership Outlook (2026)(Ranking)	Secondary	—

Annual GDP Growth Rate(%)	5.0-5.3%	—

Government Expenditure as % of GDP(percent)	32.94%	—

Government Health Expenditure(USD Million)	$620,062.8M	—

Debt Per Capita(EUR)	€11,242	—

United States of America

People's Republic of China

Nominal GDP 2026(USD Trillions)

$31.82 trillion

$20.65 trillion

GDP by Purchasing Power Parity 2026(USD trillion)

$31.82 trillion

$35.0+ trillion

Global GDP Share (Nominal)(percent)

22.73%

14.77%

Per Capita Income Multiplier (Nominal)(ratio)

6.31x higher

1.0x (baseline)

GDP Per Capita(USD)

$89,000

$13,453

GDP Per Capita Nominal(USD)

$94,800

$15,000

EV Production Market Share(percent)

Emerging leader, <30%

70%

Global Manufacturing Output(%)

~15%

35%

Combined Global Economic Share (Nominal)(percent)

42.46% (combined US-China)

Per Capita GDP (Nominal)(USD)

$89,000+

$14,100

Global GDP Market Share(Percentage (%))

23.6%

15.2%

Electric Vehicle Production Share(%)

18%

70%

Solar Panel Production Share(percent)

~15%

80%+

Lithium Iron Phosphate Battery Production(%)

94%

Total GDP(USD Trillions)

$30.0+

$17.8+

GDP (Purchasing Power Parity)(USD Trillion)

$27.6 trillion

—

Foreign Exchange Reserves(USD Billion)

$637 billion

—

GDP Growth Rate 2026(%)

2.5%

4.7%

Government Expenditure(USD Million)

€10,266.8B

$6,240,157.8M

Defense Expenditure(Million Euros)

€925,796.8M

$313.7 billion

Defence Expenditure(USD billions)

€299,621.7M

—

Education Spending Per Capita(EUR)

€3,981

€467

Education Expenditure Per Capita(USD)

€469

—

Global EV Production Share(%)

20%

70%

Lithium Battery Production Share(%)

94%

Nominal GDP(trillion USD)

$27.4 trillion

—

Total GDP (Nominal)(USD trillion)

$30.1 trillion

$17.9 trillion

Nominal GDP (Current)(USD Trillion)

$18.74T

—

Defense Spending(USD Billion)

$821 billion

—

Combat Helicopters(Count)

6,300

—

Active Military Personnel(Million)

1.3 million

—

Naval Destroyers(Count)

—

Technology Innovation Focus

Advanced semiconductors, AI, quantum computing, defense tech

—

PPP-Adjusted GDP 2026(trillion USD)

$15.29 trillion

$45.78 trillion

Projected GDP Growth Rate 2026(percent)

2.0-2.5%

4.5-4.8%

Annual GDP Growth Rate (2026)(%)

2.0–2.5%

4.6–4.8%

Global Manufacturing Output Share(%)

~18%

35%

Lithium-Ion Battery Production(percent)

94%

Global Solar Panel Manufacturing(%)

<5%

80%+

Forecast Unemployment Rate (2026)(%)

4.5%

~4.0% (estimated)

GDP (Nominal)(USD Trillion)

$17.9 trillion

—

GDP Growth Rate(% annual)

4.8%

—

Population(millions)

1.42 billion

—

Median Age(Years)

38.4 years

—

JPMorgan Growth Leadership Outlook (2026)(Ranking)

Secondary

—

Annual GDP Growth Rate(%)

5.0-5.3%

—

Government Expenditure as % of GDP(percent)

32.94%

—

Government Health Expenditure(USD Million)

$620,062.8M

—

Debt Per Capita(EUR)

€11,242

—

Full Comparison

Attribute	United States of America	People's Republic of China

Nominal GDP 2026(USD Trillions)	$31.82 trillion	$20.65 trillion

GDP by Purchasing Power Parity 2026(USD trillion)	$31.82 trillion	$35.0+ trillion

Global GDP Share (Nominal)(percent)	22.73%	14.77%

Per Capita Income Multiplier (Nominal)(ratio)	6.31x higher	1.0x (baseline)
GDP Per Capita(USD)	$89,000	$13,453
GDP Per Capita Nominal(USD)	$94,800	$15,000

EV Production Market Share(percent)	Emerging leader, <30%	70%

Global Manufacturing Output(%)	~15%	35%

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

Per Capita GDP (Nominal)(USD)	$89,000+	$14,100

Global GDP Market Share(Percentage (%))	23.6%	15.2%

Electric Vehicle Production Share(%)	18%	70%

Solar Panel Production Share(percent)	~15%	80%+

Lithium Iron Phosphate Battery Production(%)	6%	94%

Total GDP(USD Trillions)	$30.0+	$17.8+
GDP (Purchasing Power Parity)(USD Trillion)	$27.6 trillion	—
Foreign Exchange Reserves(USD Billion)	$637 billion	—

GDP Growth Rate 2026(%)	2.5%	4.7%

Government Expenditure(USD Million)	€10,266.8B	$6,240,157.8M

Defense Expenditure(Million Euros)	€925,796.8M	$313.7 billion
Defence Expenditure(USD billions)	€299,621.7M	—

Education Spending Per Capita(EUR)	€3,981	€467
Education Expenditure Per Capita(USD)	€469	—

Global EV Production Share(%)	20%	70%

Lithium Battery Production Share(%)	6%	94%

Nominal GDP(trillion USD)	$27.4 trillion	—
Total GDP (Nominal)(USD trillion)	$30.1 trillion	$17.9 trillion
Nominal GDP (Current)(USD Trillion)	$18.74T	—

Defense Spending(USD Billion)	$821 billion	—
Combat Helicopters(Count)	6,300	—

Active Military Personnel(Million)	1.3 million	—

Naval Destroyers(Count)	57	—

Technology Innovation Focus	Advanced semiconductors, AI, quantum computing, defense tech	—

PPP-Adjusted GDP 2026(trillion USD)	$15.29 trillion	$45.78 trillion

Projected GDP Growth Rate 2026(percent)	2.0-2.5%	4.5-4.8%
Annual GDP Growth Rate (2026)(%)	2.0–2.5%	4.6–4.8%

Global Manufacturing Output Share(%)	~18%	35%

Lithium-Ion Battery Production(percent)	6%	94%

Global Solar Panel Manufacturing(%)	<5%	80%+

Forecast Unemployment Rate (2026)(%)	4.5%	~4.0% (estimated)

GDP (Nominal)(USD Trillion)	$17.9 trillion	—

GDP Growth Rate(% annual)	4.8%	—

Population(millions)	1.42 billion	—

Median Age(Years)	38.4 years	—

JPMorgan Growth Leadership Outlook (2026)(Ranking)	Secondary	—

Annual GDP Growth Rate(%)	5.0-5.3%	—

Government Expenditure as % of GDP(percent)	32.94%	—

Government Health Expenditure(USD Million)	$620,062.8M	—

Debt Per Capita(EUR)	€11,242	—

United States of America

People's Republic of China

Nominal GDP 2026(USD Trillions)

$31.82 trillion

$20.65 trillion

GDP by Purchasing Power Parity 2026(USD trillion)

$31.82 trillion

$35.0+ trillion

Global GDP Share (Nominal)(percent)

22.73%

14.77%

Per Capita Income Multiplier (Nominal)(ratio)

6.31x higher

1.0x (baseline)

GDP Per Capita(USD)

$89,000

$13,453

GDP Per Capita Nominal(USD)

$94,800

$15,000

EV Production Market Share(percent)

Emerging leader, <30%

70%

Global Manufacturing Output(%)

~15%

35%

Combined Global Economic Share (Nominal)(percent)

42.46% (combined US-China)

Per Capita GDP (Nominal)(USD)

$89,000+

$14,100

Global GDP Market Share(Percentage (%))

23.6%

15.2%

Electric Vehicle Production Share(%)

18%

70%

Solar Panel Production Share(percent)

~15%

80%+

Lithium Iron Phosphate Battery Production(%)

94%

Total GDP(USD Trillions)

$30.0+

$17.8+

GDP (Purchasing Power Parity)(USD Trillion)

$27.6 trillion

—

Foreign Exchange Reserves(USD Billion)

$637 billion

—

GDP Growth Rate 2026(%)

2.5%

4.7%

Government Expenditure(USD Million)

€10,266.8B

$6,240,157.8M

Defense Expenditure(Million Euros)

€925,796.8M

$313.7 billion

Defence Expenditure(USD billions)

€299,621.7M

—

Education Spending Per Capita(EUR)

€3,981

€467

Education Expenditure Per Capita(USD)

€469

—

Global EV Production Share(%)

20%

70%

Lithium Battery Production Share(%)

94%

Nominal GDP(trillion USD)

$27.4 trillion

—

Total GDP (Nominal)(USD trillion)

$30.1 trillion

$17.9 trillion

Nominal GDP (Current)(USD Trillion)

$18.74T

—

Defense Spending(USD Billion)

$821 billion

—

Combat Helicopters(Count)

6,300

—

Active Military Personnel(Million)

1.3 million

—

Naval Destroyers(Count)

—

Technology Innovation Focus

Advanced semiconductors, AI, quantum computing, defense tech

—

PPP-Adjusted GDP 2026(trillion USD)

$15.29 trillion

$45.78 trillion

Projected GDP Growth Rate 2026(percent)

2.0-2.5%

4.5-4.8%

Annual GDP Growth Rate (2026)(%)

2.0–2.5%

4.6–4.8%

Global Manufacturing Output Share(%)

~18%

35%

Lithium-Ion Battery Production(percent)

94%

Global Solar Panel Manufacturing(%)

<5%

80%+

Forecast Unemployment Rate (2026)(%)

4.5%

~4.0% (estimated)

GDP (Nominal)(USD Trillion)

$17.9 trillion

—

GDP Growth Rate(% annual)

4.8%

—

Population(millions)

1.42 billion

—

Median Age(Years)

38.4 years

—

JPMorgan Growth Leadership Outlook (2026)(Ranking)

Secondary

—

Annual GDP Growth Rate(%)

5.0-5.3%

—

Government Expenditure as % of GDP(percent)

32.94%

—

Government Health Expenditure(USD Million)

$620,062.8M

—

Debt Per Capita(EUR)

€11,242

—

USA vs China GDP Comparison 2026

United States of America

People's Republic of China

Short Answer

Our Verdict

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USA vs China GDP Comparison 2026

United States of America

People's Republic of China

Short Answer

Our Verdict

🔔Track this comparison

Key Differences at a Glance

Key Facts & Figures

Key Differences

Related Comparisons

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More Economy

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Full Comparison

Visual Comparison

Pros & Cons

United States of America

Pros

Cons

People's Republic of China

Pros

Frequently Asked Questions

Resources & Learn More

Learn More

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Videos

Full Comparison

Visual Comparison

Cons

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