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China's economy close to overtaking US, but ...

A new report comparing global economies generated some eye-catching headlines like "China to overtake US economy" this week, but that doesn't mean the United States is through.

"China's been coming on strong for quite some time. U.S. businesses, as well as world businesses, are aware of that," said former Federal Reserve Governor Randy Kroszner. "But I don't think that, even if we pass this particular benchmark, it's a tipping point. That doesn't mean the United States can't still maintain its strength."

For example, the average Chinese worker makes just $6,000 a year, compared to $72,000 for the average American, and that won't change anytime soon.

In addition, economic growth doesn't necessarily lead to gains for stocks, as demonstrated in China. Dan Greenhaus at BTIG said, "Even though they're growing 7 percent or more, and even though the economy is set to become the largest in the world, the stock market has effectively gone straight down for the better part of five years."

—By CNBC.com staff, reported by Scott Cohn for "Nightly Business Report."

Contact World Economy

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