chinese premier xi jin ping might have cemented his power in china but dreams of dominating the global economy could soon come to a screeching halt over the last half century the chinese economy has transformed from a beleaguered struggling emerging market into a global power house with high growth year after year after year sometimes doubledigit increases but that economic surge is coming to a halt and by 2030 china’s annual growth will drop to a paltry 2 similar to the us according to a recent report from londonbased financial consulting firm capital economics “the chinaled bloc’s weight in the global economy will noit increase substantially further” states the report titled the fracturing of the global economy an introduction more precisely by 2050 china and its allies will likely constitute 23 of the global economy while the us and its allies will be responsible for 45 the report states the reason for this is what capital economics calls the fracturing of the economy from 2000 through 2019 globalization spread and the world especially china and the us prospered but over the last couple of years that yearinyearout expansion is trade got derailed the global system of trade likely won’t collapse entirely the capital report suggests instead the most probably outcome is that it will split or fragment “we think the world economy will coalesce into two blocs centered on the us and on china” the report states that fracturing will likely happen due to governments without input from industry this fracturing process will likely shave a fraction of productivity growth and add i sliver of extra inflation the report states that will likely have a small impact but the big takeaway is that china’s seemingly never ending growth and increased power relative to the west will stop china and its allies plus those countries that lean toward china accounted for 10 of world economic output in 1990 compared to 26 in 2021 by 2050 the same bloc will reach 28 of the world total at least part of the issue is china’s productivity growth will likely take a hit due the fracturing  “the chinaled bloc is dominated by china itself making adaption harder and therefore increasing the potential economic hit” the report states when you add in lower productivity growth plus a shrinking population in china there’s an obvious reason why china’s economy will stall contrast the share of china plus alliesfriends with the us its allies and those which lean towards the us that american bloc’s share will measure 65 in 2050 compared to 86 in 1990 yes the us and its friends share has fallen but china may have maxed out its portion the report suggests