China has surpassed the United States as the world's richest country.

The United States has lost its distinction as the world's wealthiest country, with China now taking its place. China's worth soared from $7 trillion in 2000 to $120 trillion in 2020, signalling a shift in the global wealth hierarchy.

During the same period, the US economy grew to nearly $90 trillion, falling just shy of the top rank.

China's ascension to the top of the leaderboard accounted for about a third of the entire growth in global wealth from $156 trillion to $514 trillion over the same time period.

China's economic progress is supposed to have accelerated after it joined the World Commerce Organisation (WTO), an intergovernmental agency that oversees international trade. Countries can profit from WTO participation because it assists countries in adopting and implementing international trade norms in developing markets.

While this is a significant triumph, it is not one that is enjoyed by the entire country, since more than two-thirds of the country's wealth is concentrated in just 10% of the wealthiest households. The United States, which is presently ranked second in the world in terms of wealth, has the same percentage.

While economic growth delivers a solid return, some patterns in expanding net worth can render nations prone to collapse, therefore China's success will be one to watch in the future years. With growing property prices being partly responsible for China's stratospheric ascent, analysts will need to keep a weather eye on the horizon for signals of a similar financial disaster, as evidenced by the historic 2008 US crash, which was caused by a breakdown in the housing industry.