In the most recent ARC China weekly newsletter, Adam Roseman wrote that China is soon going to overtake Japan as the second largest economy in the world.  He reports that this is changing “everything from the global balance of military and financial power to how cars are designed.”

China almost surpassed Japan in 2009, but it certainly set to do so in 2010.  They are already the biggest exporter, auto buyer and steel producer and their worldwide influence is continually growing.

As Adam Roseman of ARC China wrote, “The rise of China wasn’t new, either, of course. But the speed at which the shift is taking place, and the fact that China has remained so stable and prosperous during the financial crisis has called into question Japan’s export-based growth model. China is moving up the food chain faster than anyone thought possible, and even beginning to challenge Japan at the very core of its economy: high-end manufacturing.”