The GDP of Russia would be one of the larger Chinese provinces.
The population of Russia would be one of the smaller Chinese provinces.
The land mass size of Russia would be 78% larger than the rest of China.
After considering the comparative data we will all be better able to address the following questions:
How would a consolidation of the two countries benefit China?
What might be the negatives of a consolidation be for China?
How could China make Russia more productive than it is currently?
What might be the reaction of America and other countries be to a consolidation?
How would China’s position relative to other countries be changed by a consolidation?
My answers are after the data and sources.
geobank.org/economy/china/russia Geobank.org 2021 is the source of the following data and an inspection of the website is recommended.
www.indexmundi.com/factbook/compare/china.russia is the 2021 CIA Factbook, comparing an extremely large number of elements, and it is worth the time required to review the data.
China vs Russia: Economic Indicators Comparison
China with a GDP of $13.6T ranked the 2nd largest economy in the world, while Russia ranked 11th with $1.7T. By GDP 5-years average growth and GDP per capita, China and Russia ranked 12th vs 162nd and 76th vs 68th, respectively.
Gross Domestic Product & Income
|
Stat |
China |
Russia |
| GDP | $13.6T | $1.7T |
| GDP growth, 1 year | 6.6% | 2.3% |
| GDP growth, 5-years average | 6.9% | 0.5% |
| Population | 1.4B | 146.8M |
| GDP per capita | $9.8k | $11k |
| GDP per capita growth | 6.08% | 2.26% |
| Purchasing Power Parity conversion factor | 3.54 | 25.64 |
| Price level ratio of PPP conversion factor GDP to market exchange rate | 0.54 | 0.41 |
| GDP per capita, PPP adjusted | $18k | $29k |
| GNI, Atlas method | $13.2T | $1.5T |
| GNI per capita | $9.5k | $10k |
| GNI, PPP adjusted | $25.3T | $3.9T |
| GNI per capita, PPP adjusted | $18k | $26k |
Financial system and Human development
| Stat | China | Russia |
| Income Tax Rate | 45% | 13% |
| Corporate Tax Rate | 25% | 20% |
| Inflation, consumer prices | 2.1% | 2.9% |
| Inflation, GDP deflator | 2.9% | 10.3% |
| Unemployment | 4.4% | 4.7% |
| Economic Freedom Index | 59.5 | 61 |
| Personal Freedom Index | 6 | 6.56 |
| Human Freedom Index | 6.11 | 6.49 |
| Property Rights Index | 60.9 | 56.8 |
| Judical Effectiveness Index | 76.3 | 44.4 |
| Business Freedom Index | 76.8 | 80.2 |
| Fiscal Health Index | 67.5 | 98.7 |
| Labor Freedom Index | 64.4 | 52.1 |
| Investment Freedom Index | 20 | 30 |
| Financial Freedom Index | 20 | 30 |
| Trade Freedom Index | 72.4 | 77.8 |
| Monetary Freedom Index | 71.1 | 68.2 |
| Government Spending Index | 67.9 | 63.8 |
| Tax Burden Index | 70.4 | 88.5 |
| Government Integrity Index | 46 | 41.3 |
| Corruption Perceptions Index | 39 | 28 |
| Life expectancy at birth, years | 76.5 | 72.1 |
| Suicide mortality rate, per 100,000 people | 9.7 | 31 |
| Mortality caused by road traffic injury, per 100,000 people | 18.2 | 18 |
| Intentional homicides, per 100,000 people | 0.6 | 9.2 |
| International tourism, number of arrivals | 62.9M | 24.6M |
Government debt & reserves
| Stat | China | Russia |
| Central government debt, % of GDP | 50.5% | 14% |
| External debt stocks, % of GNI | 14.5% | 28.1% |
| External debt stocks | $2T | $453.9B |
| Short-term debt, % of total reserves | 38.5% | 10.3% |
| Total debt service, % of exports and primary income | 8.2% | 19.6% |
| Adjusted net savings including particulate emission damage, % of GNI | 20.1% | 8% |
| Gross savings, % of GDP | 46.3% | 30.2% |
| Gross capital formation, % of GDP | 44.1% | 22.7% |
| Total reserves including gold | $3.2T | $468.6B |
| Foreign direct investment net inflows | $203.5B | $8.8B |
Exports, imports and economic structure
| Stat | China | Russia |
| Exports of goods and services, % of GDP | 19.5% | 30.7% |
| Imports of goods and services, % of GDP | 18.7% | 20.8% |
| Current account balance (balance of payments) | $49.1B | $113.5B |
| Revenue excluding grants, % of GDP | 15.8% | 27.5% |
| Grants excluding technical cooperation, BoP | $191.6M | $658.1M |
| Personal remittances received | $24.3B | $8.6B |
| Industry including construction value added, % of GDP | 40.7% | 32.1% |
| Agriculture, forestry and fishing value added, % of GDP | 7.2% | 3.1% |
| Charges for the use of intellectual property, payments BoP | $35.8B | $6.3B |
| Charges for the use of intellectual property, receipts BoP | $5.6B | $876.1M |
| Expense, % of GDP | N/A | 28.9% |
| Government Expenditure, % of GDP | 32.7% | 34.7% |
How would a consolidation of the two countries benefit China? By lessening its need for oil and other natural resources.
What might be the negatives of a consolidation be for China? The cost and problems of dealing with those currently benefiting from Russia’s assets and international reaction to the consolidation.
How could China make Russia more productive than it is currently? By improving the life of Russia’s population and encouraging China’s version of capitalism.
What might be the reaction of America and other countries be to a consolidation? There could be a general lessening of tension as the control of Russia and its destructive capabilities shifted from an expansion of a destructive ideology to trade.
How would China’s position relative to other countries be changed by a consolidation? China could become more generous and supportive of markets where an improving local environment resulted in greater trade. China is currently and will likely be in the future, be focused on jobs and therefore trade. The Chinese will increasingly become international landlords and will benefit from having happy tenants.
Arthur Lipper, Chairman arthurlipper@gmail.com
British Far East Holdings Ltd.