After Overtaking Japan in Economic Might, China Faces New Challenges

Becoming the world's second-biggest economy would help boost China's global influence but presents economic, political and diplomatic challenges, reports the South China Morning Post, citing analysts.

 

China has surpassed Japan has the world second-biggest economy. Japan's nominal gross domestic product (GDP), was worth $1.286 trillion in the April-to-June quarter compared with $1.335 trillion for China. China is growing at about 10% a year, while Japan's economy is forecast to grow between 2% to 3% this year.

 

However, despite the economy's rapid growth, China's per capita output is less than a tenth that of Japan and it ranks lower than 100th for output per person among the world's 200-plus economies, notes the Post.

 

Jin Canrong, associate dean of Renmin University's school of international relations, told the Post that China's rising clout would cause more anxiety diplomatically and economically. Beijing would also be pressured to let the yuan appreciate further, say analysts.
 

Since 1968, Japan has been the second-largest economy after the US.

 

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