China Surpasses Japan to Become World's #2 Economy

China has passed Japan to become the world's second-largest economy.

KYW's Ian Bush reports that the news should make it clear that China is no longer sitting on the sidelines.

Now, only the United States has a greater economic output than China (see related story).

And it's been a period of explosive growth for the Asian country -- up about 10 percent each year, as many other economies remain anemic.  And China already is the world's largest exporter and auto buyer.

James Chan, who heads the Philadelphia-based Asia Marketing and Management consultancy, says that means even the US could be playing catchup in the next couple of decades:

"I think what America needs to know is that China is no longer a poor, economically- or technologically-backward nation.  It's going to be a worthwhile competitor."

He says that although China's income disparity and spotty record on human rights worry Americans and engender mistrust, Beijing is not slowing down anytime soon -- and will become an even fiercer foe in the race to woo big companies and gain more market share in the global economy.