China surpasses Japan as the 2nd largest world economy by Magdalena Rosova

Japan has lost its second place as the No. 2 economy in the world. Poor growth and a shaky economic recovery caused that in the second quarter of 2010 Japan has slipped below China. In the first quarter Japanese gross domestic product grew at an annualized rate of 4.4 percent. On Monday the government said in the second quarter GDP grew only 0.4 percent which is far below the previous quarter. Japan is also having evident problems with the recovery of its economy. Japanese figures just underlined Chinese emergence as an economic world power. China is changing probably everything – from global balance of military and financial power to way of designing cars. China has ! already become the biggest exporter and buyer of cars, the biggest steel producer and its global influence is further expanding. China was an important force in the world's recession, it has delivered money to the United States, Japan and also to Europe. All these countries are now China's debtors. However, Tokyo's latest figures showed that China's demand itself is not enough for Japan and other economic giants. Martin Schulz, senior economist at Fujitsu Research Institute in Tokyo, said that Japanese economy depended a lot on demand in Asia and China. Today the demand is cooling a bit. Japanese case is an important warning sign that focusing on overseas demand is simply not enough to keep stable economy in the country. It is not the first time China has surpassed Japan in GDP figures. But this time it is different as it seems China will not give up its lead easily.

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by Magdalena Rosova for Cantell TV (http://cantell.tv)

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