China's economy tops Japan: Are you worried? You should be, but not for the reason you might think.

[pampango]

http://www.globalpost.com/dispatch/100817/china-economy-japan?page=0,0

As political influence flows from economic strength, China is already a regional force and, in many ways, an important global power. Toss in a population of 1.3 billion people, its immense size and vast economic potential — not to mention a large and nuclear-armed military — and you'd be excused for worrying about China's capacity to threaten the rest of the world.

You'd also be wrong. That said, the deeper story here may be not Chinese economic strength, but rather, its weakness. And that's where our tale potentially turns dark.

That's because there is no guarantee that China's current economic model is sustainable. China grew so quickly over the past three decades by throwing masses of relatively cheap labor into thousands of coastal factories, driving GDP higher and boosting the living standards of millions of formerly rural and migrant workers. But the model is showing some strain. For one, factory workers across China have grown increasingly uneasy. Demands for higher wages and better working conditions sparked significant labor unrest earlier this year, with disputes hitting a number of high profile factories, including Honda and Apple supplier Foxconn.

In a high stakes strategy with implications beyond its borders, Beijing is trying to gradually reduce its reliance on exports while transitioning to a more sustainable growth model based on Chinese consumers buying more stuff. Oh, and it must do this while creating new jobs, expanding social safety nets, and without provoking political or social unrest. Developing a stable, consumption-led economic model is the whole game in China right now. That's how it is likely to become a true economic superpower in coming years.

[Boojatta]

1. China's economy topping Japan's economy is an incredible event.

It would be like the US economy producing more than Canada's economy.

[leveymg]

2. Great model - 1.3 billion SUVs and a McDonald's on every corner. Unsustainable.

And the world's largest carbon footprint.

[BeFree]

3. Yeah

But don't dare breathe the air.

We are watching an environmental collapse in real time. Thanks to the Liberals in the US we can still breathe our air.