Ok, if all of that was meant to convey the statement that "China has a cost advantage in shipbuilding and electronics", then you have no argument from me. I think it's fairly intuitively easy to come to this conclusion without having any knowledge of even general GDP numbers of either country. I have said on more than one occasion that my disagreement with AndrewS comes in the form of rejecting his claim that in 10-15 years China's GDP will be twice as large as the US's GDP (presumably using a PPP comparison), and that therefore the PLAN will have twice as many ships as the USN. This claim is as wildly fantastical as ever, even after pages of discussion in this thread, not to mention nearly meaningless even if true.1) Total GDP = GDP from agriculture + GDP from industry + GDP from services. 2) China has the largest GDP from industry in nominal terms. Not "maybe", it's been a fact for the past 5+ yrs... 3) There is a rationale for using nominal figures for comparing GDP from industry, as inputs and outputs are generally tradable on global markets 4) GDP from services are by nature generally non tradable and there is consensus that PPP is more accurate measure for comparing economies that are predominantly service dominated. 5) A country with larger nominal industrial GDP can in general be inferred to be able to support a larger capacity for military production. 6) More accurate analysis would require looking at comparative advantages, which at least superficially favors China for shipbuilding and electronics, but giving a more accurate and deeper assessment is at least beyond my knowledge.