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 fastest growth rate of the developed countries. This is due to the fact that the United States has a good fertility rate and large numbers of immigrants. This keeps the United States’ production and consumption growing. In addition, the US population is highly educated. However, the rapid population growth does not solve the labour problem. The U.S. labour participation rate has dropped. This may be due to the fact that advanced technology in the United States has replaced a part of the labour.

China’s population is 1.379 billion people, which is approximately 18% of the world’s population, and four times the population of the US. The population has brought demographic dividends for China’s economic growth. The cheap labour force has promoted the rapid development of China’s manufacturing industry and increased the number of exports, contributing to the GDP. However, as China’s aging population increases, the demographic dividend gradually disappears. Therefore, China’s 13th Five-Year Plan promotes a comprehensive two-child policy and encourages the birth of a second child to avoid excessive population aging and the reduction of the labour force in the future. The huge population base means great potential of market.

The above analysis shows the US’s position as the world’s largest economy is stable. The US has strong political and economic influence. Trump’s policies show obvious protectionism and economic nationalism, especially in trade, which is contrary to globalisation and makes the US suffer from isolation pressure. As for China, its manufacturing industry has always maintained a leading position in the world. However, its economy is heavily reliant on exports and manufacturing. The overall industrial structure does not present long term advantage in the international competition. However, as China advances from low-end manufacturing to high-end manufacturing and supports the development of service industries, the competitiveness and advantages of China’s manufacturing industry will expand. If the transformation is successful, then China’s overall economic competitiveness will increase, and the increase in dom