Rich Countries Getting Soaked for a Change

Nation's now gearing up to take on No. 1 US

(NEWSER) - China has steamed past Japan to become the world's second-largest economy. Japan's economy, hit by a drop in exports and consumer demand, was worth $5.5 trillion at the end of last year, while China's was estimated at $5.8 trillion. China is expected to take over the US as the No. 1 economy in about a decade, reports the BBC . Japan officials played down the news. "As an economy, we are not competing for rankings but working to improve citizens' lives," said the nation's economics minister. More»

(NEWSER) - South Korea scrubbed a planned satellite launch minutes before liftoff today, citing an unspecified technical error, reports the BBC. Seoul has been itching to join the Asian space race and has already produced 10 satellites for other countries' rockets. But the event had threatened to strain recently improved relations with North Korea, which claims—to the disbelief of South Korea and the US—to have successfully launched a satellite in April. More»

But tensions persist between two boom economies

(NEWSER) - With US demand shrinking, China is looking to India to keep its exports buoyant and buy everything from iron ore to stuffed animals. But although China is its largest trading partner, India's not happy: this year it banned toy imports for safety reasons, and the country has lodged a dozen antidumping cases against China at the WTO. "It's a cause for worry," India's commerce secretary told the Wall Street Journal. More»

Investors, especially China, should have 'absolute confidence'

(AP) - T-bills are safe bets, says President Obama. In response to the much-publicized worry expressed by Beijing about its US assets, Obama today offered a clear response: "I think that not just the Chinese government, but every investor, can have absolute confidence in the soundness of investments in the United States," he said. More»

(NEWSER) - China's decision to flex its burgeoning naval muscles by sending two warships to patrol Somalia's pirate-infested waters has been met with equal parts thanks and worry from the international community, the Christian Science Monitor reports. The mission is China’s first outside of its own waters, and many are wondering what the country will do next with its growing sea power. More»