That friendly meeting between the two leaders was a dizzying 12 months ago. But in recent days, Trump has threatened tariffs on Chinese goods. And China, for its part, has promised to counter with tariffs on U.S. goods.  
     For now, and just for now, the U.S. has the upper hand as the world’s largest economy. But economists say that could change -- and soon. Here’s the rundown, along with links for further study:

The background: The U.S. has been the world's largest economy for more than a century, according to the World Economic Forum. As such, the U.S. accounted for more than 24 percent of the world’s gross domestic product in 2016.

What is the gross domestic product and what does it include? This is the “total final value of goods and services produced in a national economy over a particular period of time, usually one year,” according to Barron’s Business Guides Dictionary of Business Terms by Jack P. Friedman (Barron's Educational Series; 2007). “The GDP growth rate is the primary indicator of the status of the economy. The U.S. GDP includes the private and governmental sectors and foreign business operations within the confines of the United States; it does not include overseas operations of domestic corporations.”

Not so fast: China has a population of approximately 1.4 billion, according to the The World Factbook on the CIA.gov website. The U.S., on the other hand, has a population of 327 million. 
    In 2016, China was the world’s largest economy based on “Purchasing Power Parity,” according to World Bank figures. Purchasing Power Parity is “a measure that adjusts countries’ GDPs for differences in prices,” according to the World Economic Forum  website. “In simple terms, this means that because your money stretches further in China than it would in the US, China’s GDP is adjusted upwards.”

China will take the top spot: The Centre for Economics and Business Research predicts that China will overtake the U.S. as the top economy in other measures by 2029 roughly 10½ years away.

• Barron’s Business Guides Dictionary of Business Terms by Jack P. Friedman (Barron's Educational Series; 2007).
• CIA.gov: The World Factbook -- China.
• Encyclopedia Britannica: Gross domestic product.
• The Centre for Economics and Business Research: World Economic League Table 2016 Highlights.
• The United States Census: Online.
• World Bank: Purchasing Power Parity chart.
• World Economic Forum: The U.S. versus China in five economic charts.

     Related:

     Did NAFTA take jobs from U.S. workers?
 
        
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