China's spectacular ascendance begins to reshape the world economy

From the UK Guardian: After three decades of spectacular growth, China passed Japan in the second quarter to become the world's second-largest economy behind the US, according to government figures released on Monday.

The milestone, though anticipated, is the most striking evidence yet of China's ascendance and that the rest of the world will have to reckon with a new economic superpower.

The recognition came early on Monday, when Tokyo said that Japan's economy was valued at about $1.28 trillion in the second quarter, slightly below China's $1.33 trillion. Experts say unseating Japan — and in recent years passing Germany, France and Great Britain — underscores China's growing clout and bolsters forecasts that China will pass the US as the world's biggest economy as early as 2030. America's gross domestic product was about $14 trillion in 2009...read on