China overtakes Japan as number 2 economy

From: http://www.bbc.co.uk/news/business-12427321

China has overtaken Japan as the world's second-biggest economy, figures out of Tokyo have shown.

Japan's economy was worth $5.474 trillion (£3.42 trillion) at the end of 2010. China's economy was closer to $5.8 trillion in the same period.

China has enjoyed a manufacturing boom, while Japan has been hit by a drop in exports and consumer demand.

At its current rate of growth, analysts see China overtaking the US as the world's top economy in about a decade.

"It's realistic to say that within 10 years China will be roughly the same size as the US economy," said Tom Miller of GK Dragonomics, a Beijing-based economic consultancy.

Slowdown

According to the latest figures from Tokyo, Japan's economy contracted at an annualised rate of 1.1% in the final three months of 2010. Growth declined 0.3% from the previous quarter.

It was the first time in five quarters that the economy shrunk and was caused by a dip in domestic and export demand, analysts said.

They added that demand has been picking up since the start of the year, and they expect expansion to return.

Japan's anti-piracy tactics

Since I live in the same town as Capt Richard Phillips, it was of great interest to see that pacifist Japan has passed a law allowing the Japanese navy to fire on Somali pirate vessels. Japanese warships are allowed to protect any commercial ship, not just those under Japan's flag.

According to the BBC, "previously, the Japanese force was only allowed to escort Japanese vessels, or those with Japanese cargoes or crews, and use weapons only for self-defense."

Within Japan there are concerns over expanding the role of Japan's military.

http://english.aljazeera.net//news/asia-pacific/2009/06/2009619124944697820.html

http://news.bbc.co.uk/2/hi/asia-pacific/8109242.stm

Foreign investment in China

Foreigners may want to rethink their drop in investment in China.

A "W" shaped recovery is a better investment than the projected U.S. "L" shape recovery.


http://english.aljazeera.net/news/asia-pacific/2009/06/20096154332867464.html

Impact on Shanghai

Acceptance may grow as the economic impact of these events increase.

http://www.nytimes.com/2009/06/15/world/asia/15shanghai.html

No Tweets about Tiananmen Twentieth

I was wondering how a country that so heavily censors Internet traffic would handle Twitter ... they simply block it altogether.

http://news.bbc.co.uk/2/hi/asia-pacific/8078538.stm

Protests in Tiawan

Thousands in Taiwan protest the current administration's pro-China ties. (See my May 5th post about China's business inroads in Taiwan).

I would be concerned about China's increased military spending and number of missiles aimed at the island.


http://english.aljazeera.net/news/asia-pacific/2009/05/20095179175752227.html

English language and the Japanese

English is the most commonly used global language. Japanese students begin studying English in junior high, and many start private lessons at an earlier age. Emphasis was on written English; resulting in a reluctance to speak English unless it could be done well.

Popular television programs supposed teach English, but most are entertainment-based rather than instructional.

But as more businesses recognize the need to compete globally, firms such as Mitsubishi Bank are announcing that all business will be conducted in English.

A number of recently published books are taking advantage of the Japanese increasing interest in English, both written and spoken. Author Seiichi Kanise talks about the importance of being able to "tell a story". Another author, Kyoko Yasui, tells women that they can use English to become a freelancer and take control of their careers.





http://www.yomiuri.co.jp/dy/features/culture/20090428TDY12002.htm