India and China has the capacity to emerge as new rivals to the US economy in the coming decades, an influential US daily has said.

"The rapid growth of China and India, eager participants in the US-dominated global economy, could eventually yield rivals to American economic might," the Wall Street Journal said in a frontpage article.

"America's open economic system creates a boundless thirst for imported goods, oil and capital from places such as China and Saudi Arabia - habits that improve many Americans' lives in the short term but also pose long-term threat.

"The US is now "pre-eminent" among nations, spending more on arms than Europe, China and Russia together.

"Its economy is twice as big as that of Japan, its closest rival country. The US no longer has reason to tremble before such threats as a menacing Soviet Union or a Japanese economic juggernaut," the daily said.

"Yet, it added, the US is a "much-frustrated giant."

"The Chinese balk at its trade prescriptions. Economically hapless North Korea thumbs its nose over nuclear weapons and goes about its business of selling missiles. Violent guerrillas resist the US in Afghanistan and Iraq, while vast numbers of ordinary Muslims around the world doubt America's goodwill towards them.