Cato has a good analysis of the news that China has overtaken Japan and has become the worlds second largest economy. Good lord, what took them so long. The point is that China has such a large population -- if China doesn't do something to raise the standard of living for ALL its people, they'll be in trouble in a decade or so as modernity awakens those living in squalor.
We'll likely hear a lot of talk about how America needs to follow China's example of State management of the economy as it relates to infrastructure and public/private partnership -- no, all we need is a return to a free market and we'll be just fine. Market reforms in China have caused its recent rise, but if they stall out at partial reforms, they will soon be sliding backwards. If China were to go to a completely free market, they would be the number one by a large margin -- but this would not be a bad thing.
The more free markets which develope around the world, the better off we all will be -- just imagine, a world so busy producing, innovating, selling and buying, no one has the time or energy for wars.