Here's why China won't overtake the US as the largest economy.

We've reached peak globalization, says Capital Economics - "In fact, a period of de-globalisation is increasingly likely."

The group's economists, in a note on Monday titled, "The world in 2050: where and why the consensus may be wrong," wrote that the fallout would hit emerging economies the hardest.

"A rollback of globalisation would counteract any technology-driven pick-up in productivity growth over the next decade or so," says Neil Shearing, group chief economist.

The takeaway: "The widespread assumption that China will overtake the US as the world's largest economy is likely to be proved wrong."

Market watchers have predicted the boom in China's economy as an unstoppable Goliath that will soon leapfrog the US to the No. 1 spot. Standard...

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