China's model creates economic miracle

As celebrations of its achievements over the past 60 years subside, China can look forward to its next milestone: surpassing Japan as the world's second largest economy before the year is out. Another target reached ahead of schedule - and further evidence that China is emerging from the financial crisis as the big winner.

Based on past records, and taking into account China's expected growth rate over the next two decades, China will overtake the United States to become the largest economy in the world within five years measured in purchasing power parity-terms, and within 20 years measured in nominal terms.

It could be even sooner. These predictions are based on the assumption that the US economy will grow 3 percent per year and the Chinese economy 9 percent per year, assuming constant nominal exchange and inflation rates for both countries.