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Transcripts For CNN CNN Newsroom 20100816

that was then this is now. a new report shows china is about to pass japan as the second largest economy in the world. ali velshi here to talk about more, how do we get to this point this co-dependent relationship? china is three time he is the size of the united states. it is not individuals are not all getting that wealthy but this is a country that 30 years ago was an almost isolated communist country and has been slowly working into a market economy over the years. what happened is the west embraced china s reforms because china has cheap labor. so we wanted to buy cheaper goods from china over the years. we continued to ac knowledge their movement into the broader world china, for all intense and purposes has become the factory shop, the shop floor for the world. look at the stuff we buy, by some estimates, 80% of the manufactured goods we buy in this country were made in china that is what it is china builds the stuff that we buy. there are risks though a number o

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