Europe and the United States do not recognise China’s market economy status and they believe that China did not fulfilled its commitments when it joined the WTO in 2001. Europe and America want to restrict the development of China’s trade.

Xi Jinping is regarded as China’s most powerful leader since Mao Zedong because the constitutional regulation regarding the reappointment of the country’s president for more than two terms was abolished. In addition, Xi Jinping’s ideas were written into the constitution. “the system itself is extremely unusual. China has two ladders of authority: the government and the party and the party hierarchy outranks the state one” (Anonymous, 2018). Most Chinese are against centralisation and regard it as regressive. However, it has positive elements. A centralised approach helps policy implementation and sustainability, which may have a positive impact on the economy. It is widely believed that this will add a lot of uncertainty to China’s political and economic future. “An important factor influencing corporate finance and economic growth in China lies in its government sponsored industrial policies”. (Chen et al. 2017). China’s 13th Five-Year Plan shows the economic policy and targets. The biggest concern is the reform of China’s economic structure. China is shifting from low-quality industries to high-quality manufacturing, eliminating outdated production facilities, and enhancing innovation and smart production to increase production technology and efficiency. This will further expand China’s manufacturing advantage and increase its international competitiveness. For the service industry, China further opened its financial markets to the world and promoted the establishment of a green financial system, which can attract foreign financial institutions to expand their business. Green financial services can provide products and services for overseas companies across borders. Consequently, the proportion of the service industry in the GDP will probably increase significantly. Furthermore, AIIB helps Chinese companies to release excess production capacity and increase industrial output. The most important thing about AIIB is to strengthen international trade and accelerate the internationalisation of the RMB. It is evident that China is evolving from the previous model of driving the GDP through obdurate exports and manufacturing, and has turned to stimulating domestic demand and developing the service industries, which will increase the proportion of consumption in the GDP. Due to this transformation, the growth of China’s GPD has slowed in recent years, however, if the transition is successful, then China’s competitiveness as the world’s second-largest economy will increase significantly.

The population status of China and the US

The current population of the United States is 325.7 million. Its population has the