China to become world's top manufacturer, ending America's 110-year reign



China is poised to become the world's biggest manufacturer, ending America’s 110-year reign as the leading producer of goods.

Figures compiled by U.S economists reveal that America will drop to second place by 2011.

By then China will be responsible for a fifth of all the goods manufactured worldwide.

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Electrical machinery and equipment, clothes, footwear and furniture make up the most in demand items from consumers worldwide.

Toys and plastic items are also among the most in demand goods from a nation that has seen its exports quadruple in size over the last nine years.

Faster growth in China as the US emerges from its worst economic recession since the 1930s will see China take the top spot next year.

America has held the position as the world's top manufacturer since the late 1890s when it nudged Britain into the number two position.

Britain now ranks seventh the world's manufacturing league with economists warning that position is under threat from emerging nations.

Last year the UK produced goods worth $227billion, just $13billion ahead of South Korea and $20billion in front of Russia.

The UK was responsible for 2.6 per cent of world manufacturing output, down from 5.5 per cent in 1980.

Economists with the IHS Global Insight consultancy said China's march to the top manufacturer has been expected.

Last year the country exported goods estimated at $1.7trillion.



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Eighty per cent of the exports were manufactured in factories.

Economists with the experts admitted they were surprised the US had managed to maintain its pole position for so long.

IHS had predicted America would lose its manufacturing crown in 2009.

But a surprisingly strong output in 2009 kept China from claiming the top spot.

America produced goods valued at $1.717billion while China's outpout was $1,608billion.

Economist Hal Sirkin, head of the global operations practice at the Boston Consulting Group, said the US should not worry about losing out to China.

"If you have a country with four times the population of the U.S. and a tenth of the wages, it is fairly obvious they will pull ahead at some time in productive capabilities," he said.

Figures from the U.S.-China Business Council reveal how in nine years the amount of goods imported from China has tripled in size.

In 2000 the value of goods imported was at $100billion but by 2009 that figure was at $296billion.

In comparison the U.S. exported $69billion worth of goods to China, mostly supplying raw materials, auto parts and electrical machinery.



