Resources+China

 Now No. 2, Could China Become No. 1? CHINA The world's most populous nation officially became its second largest economy after Japan released its final GDP figures for 2010, showing a fourth-quarter dip in growth that left it lagging behind its East Asian neighbor for the first time in the postwar era. China's ascension to the second spot behind the U.S. comes after decades of rapid growth that has lifted hundreds of millions of people out of poverty. But the same fiscal woes that hobbled Japan's once soaring economy in the 1990s may catch up to China, which uses a similar model of state capitalism; China may also be vulnerable to the sort of asset bubbles that derailed Japan. Ruling a vast population with few political freedoms, China's leaders know that unrelenting growth is key to national stability. China's economy has eclipsed Japan's ... [The following text appears within 2 charts. Please see hardcopy or PDF for actual charts.] 2010 GDP JAPAN $5.47 TRILLION CHINA $5.88 TRILLION ... but its people remain much poorer 2010 GDP PER CAPITA JAPAN $33,828 CHINA $7,518 Some forecasters estimate that China's GDP may almost double that of the U.S. by 2030 CHINA JAPAN $73.5 TRILLION $38.2 TRILLION $8.4 TRILLION SOURCES: XINHUA; IMF; STANDARD CHARTERED

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