The 2024 Summer Olympic Games in Paris, a dazzling showcase of French culture and creativity, owed much of their success to China. Behind the scenes, China’s dominance in global manufacturing was on full display, with 80% of Olympic mascots produced in China and the Chinese-made Ali cloud system broadcasting the event to nearly half the world. This underscores a broader economic reality: the G7 nations—comprising the US, Japan, Germany, France, Italy, Canada, and the UK—are increasingly dependent on China to sustain their economic prosperity.
According to the World Trade Organization, China accounted for 43% of global sports goods exports in 2022. The US has held the position of the largest importer of sports goods since 2010, representing 31% of global imports in 2022. The EU followed with 22%, while Japan and the UK each accounted for 6%. This reliance extends beyond the Olympics, deeply embedding China into the economic fabric of the G7. (Source)
The International Monetary Fund (IMF) forecasts that the G7 economies will grow at a modest 1.6% annually until 2029, increasing their combined GDP from $48.9 trillion in 2024 to $53.8 trillion by 2030. However, this $4.9 trillion growth is insufficient to maintain current wealth levels, particularly for retirees and billionaires in these nations. (Source)
Data from the OECD indicates that G7 retirement assets stand at $42.8 trillion, needing to grow to $49.1 trillion by 2030 to keep pace with inflation. Forbes estimates that G7 billionaires will hold $7.9 trillion in wealth by 2024, requiring an additional $9 trillion by 2030 to sustain their current wealth increase. Together, the $13.6 trillion required far exceeds the projected GDP growth, leaving an $8.7 (= 13.6-4.9) trillion shortfall. (Source, Source)
This gap implies that each of the G7’s 390 million working-age individuals would need to generate an additional $22,300 in income by 2030. With the G7’s GDP per capita projected at $48,680 in 2024, this shortfall could lead to a 23% GDP per capita deficit by 2030. (Source)
The IMF and World Bank project global net GDP growth of $30 trillion by 2030, but a significant portion must come from China, the primary driver of economic development in the Global South. Without China’s economic contributions, sustaining G7 wealth and living standards through 2030 seems increasingly unlikely.
A recent Oxfam report reveals that the richest 1% have captured nearly two-thirds of all new wealth generated since 2020, totaling $42 trillion—almost double the amount gained by the bottom 99% of the global population. Over the past decade, the wealth and number of billionaires have doubled, with the top 1% consistently securing about half of all new wealth. In 2022 alone, 95 food and energy corporations more than doubled their profits, earning $306 billion in windfall profits and distributing 84% of that—$257 billion—to wealthy shareholders. The Walton family, who control half of Walmart, received $8.5 billion last year, while Indian billionaire Gautam Adani saw his wealth increase by $42 billion, a 46% rise in just one year. These excess corporate profits have been a significant driver of inflation in countries like Australia, the US, and the UK. Meanwhile, at least 1.7 billion workers are in nations where inflation outpaces wages, and over 820 million people—about one in ten globally—are going hungry.
Given this escalating inequality, it is essential to maintain a strong relationship with China, as its economic growth and ability to produce affordable goods help reduce global inequality by making essential products accessible to regular people. Without China’s contributions, the gap between the wealthy and the rest of the world would likely widen even further. (Source)
This stark reality underscores a fundamental economic truth: sustained growth from China is crucial for maintaining the wealth and living standards of the G7 nations, a fact already vividly demonstrated by the 2024 Summer Olympics in Paris.