Thread by @Dragondescendan

This tweet I am gonna compare the GDP of China and the US to prove why China has never regarded surpassing the US as its goal and how is the US economy being exaggerated? (1)

In 2020, the GDP of the US and China is $20.6 trillion and $15.6 trillion respectively, so the gap is about $5 trillion. But the problem is that at present, there is no unified regulation on the statistical method of GDP worldwide. There are many statistical methods, among (2)

which the US adopts the "Expenditure method", that is, the total expenditure of the whole society to buy the final product, including both personal consumption, personal domestic investment, government expenditure and net exports. (3)

Let’s take a look at the specific situation of the three major industries in the US. According to the data, in 2018, the added value of the primary industry in the US was $164.1 billion, accounting for 0.8% of its total GDP, the added value of the secondary industry was $3.81(4)

trillion, accounting for 18.6% of its GDP, and the added value of the tertiary industry was as high as $16.51 trillion, accounting for more than 80% of its GDP. (5)

Through this set of data, it is obvious to find out what is the pillar of the US economy? Yes, It’s tertiary industry, more than 80% of the US GDP is contributed by the service industry, while the manufacturing industry, as the country's fundamental, accounts for less than 20%(6)

and agriculture accounts for less than 1%. So how is the US economy being exaggerated? We can take the real estate industry as an example, all houses in the US need to count rent into the GDP. Whether you are self-housing or renting a house, you need to count rent income, (7)

also known as "Virtual rent" income, so there is a serious duplication of statistics. In addition, the American lawyer industry is huge, and the annual cost of litigation cases is also included in GDP, and the GDP generated by the entire lawyer industry has already (8)

exceeded $1 trillion. Whether it is stocks, bonds, or funds, the US will include all the income statistics of the whole process into GDP. (9)

In contrast, China's GDP statistics adopt the "production method", which is generally relatively conservative and does not have too many duplicate statistics. The US has included "Virtual rents", lawyer litigation fees, financial services, etc. in the category of GDP (10)

statistics, which do not exist in China. Even there are so many street food vendors, micro and small companies and family workshops, they all not included into China’s GDP. That’s why I said that China has never regarded surpassing the US as its goal, because if China adopts (11)

the same GDP statistics method as the US, perhaps China's GDP may have already surpassed the US. (12)

China has never regarded GDP as an important indicator, and it will not change its GDP statistical method purely to surpass the US. The purpose of China’s development is let 1.4 billion people to live a better lives and building a community with a shared future for mankind. (13)