In their annual ranking for most competitive global economies, IMD announced on May 30 that China’s Hong Kong sector surpassed the United States on the list to move into the number one spot for 2016.
The U.S. had been number one of the rankings scale for the past three years, but massive regulation, higher taxes, declining infrastructures, and moves towards closed trade (TPP, TPIP) led to their dip down to number three behind China and Switzerland.
The 2016 edition ranks China Hong Kong first, Switzerland second and the USA third, with Singapore, Sweden, Denmark, Ireland, the Netherlands, Norway and Canada completing the top 10.
“The USA still boasts the best economic performance in the world, but there are many other factors that we take into account when assessing competitiveness,” he said.
“The common pattern among all of the countries in the top 20 is their focus on business-friendly regulation, physical and intangible infrastructure and inclusive institutions.”
A leading banking and financial center, China Hong Kong encourages innovation through low and simple taxation and imposes no restrictions on capital flows into or out of the territory. – IMD
Over the past decade, the U.S. has expanded their debt obligations without creating any real production, while at the same time increasing taxes on producers within their consumer based economy. And when you add in the narrowing of healthcare opportunities under Obamacare, the implementation of a massive tariff against China for steel imports, and the creation of secret trade treaties like TPP and TPIP, you can easily see how the once largest economy is shifting towards isolation and monopoly versus open free trade and competition.
China, Russia, India, and others within the BRICS countries have forged a path in recent years for both free trade, and trade done outside the dollar allowing nations to use their own sovereign currencies. And this has led to the rapid creation of new trade unions both in Eurasia, and in the ASEAN regions. And given the choice, more and more countries are selecting Chinese free trade over Washington’s closed and monopolistic trade agreements, and are now being recognized in the global rankings for their openness and competitiveness.
Kenneth Schortgen Jr is a writer for Secretsofthefed.com, Examiner.com,Roguemoney.net, and To the Death Media, and hosts the popular web blog, The Daily Economist. Ken can also be heard Wednesday afternoons giving an weekly economic report on the Angel Clark radio show.