So I guess the xenophobes and business school experts that told us in the 1980s that Japan was taking over the world were wrong. It sounded like such a convincing story. Of course, the business school experts also told us that the housing market would always grow and that China's economy is to be feared since it will continue to grow at bubble rates. Or was that what they said about Japan? Either way, be afraid. Reuters:
The latest GDP figures also confirmed that China overtook Japan as the world's second-largest economy in 2010 on a seasonally unadjusted, nominal dollar basis, at $5.8786 trillion against $5.4742 trillion.
Economics Minister Kaoru Yosano said Japan needed to make the most of China's growth to boost its own fortunes, as it increasingly relies on demand from its Asian neighbour.
"The fact that China's economy is booming is welcome news for Japan as a neighbouring country," Yosano told reporters. "We want to deepen the amicable economic relationship between Japan and China."
