China has overtaken Japan to become the world's second-largest economy
China came close to surpassing Japan in 2009 and the disclosure by a senior official that it had now done so comes as no surprise. Indeed, Yi Gang, China's chief currency regulator, mentioned the milestone in passing in remarks published on Friday.
China's economy expanded 11.1 percent in the first half of 2010, from a year earlier, and is likely to log growth of more than 9 percent for the whole year, according to Yi.
China has averaged more than 9.5 percent growth annually since it embarked on market reforms in 1978.
The economist magazine has a feature on the growing power and wages of the chinese workforce.
Average monthly wages increased 17.3% in 2009 for chinese workers.
China has subsidized its export industry by dampening wages and household income. This is changing because of the limits on exports that are possible. This rebalancing will be a good thing.
A 20% rise in chinese consumption might lead to an extra $25 billion of exports from America to China and would create 200,000 american jobs.
As China's economy passes the US economy (probably around 2016-2017) then it will be a major engine of the world economy. It is becoming that engine now, but it will be there fully until later this decade.
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