On the Tokyo stock exchange shares fell, down 0.6%. The drop comes as official figures show economic growth has weakened in Japan.
Between April and June this year the gross domestic product – the sum of the nation’s goods and services – grew by 0.1%, much lower than expected.
That was outstripped by China’s growth raising expectations the country will overtake Japan as the world’s second largest economy.
“China’s growth is having, increasingly, an impact on many other regions of the world. In part that is via the things that China buys; commodities, technology, capital goods from Germany. But more commodities from countries like Australia and Brazil, many other emerging markets,” explained Louis Kuijs, Senior Economist at the China Office of the World Bank
China’s economy is growing at about ten per cent a year shadowing the forecast of three per cent for Japan. But China’s rise has brought about contradictions. The country’s per capita income remains a fraction of its neighbour’s.
“I definitely feel proud that our country has surpassed Japan, we really do feel proud, that’s for sure,” said Zhang Guo Bin a Logistics Officer.
Zhang Wei a property agent has a different view. “The economy has definitely improved but as for the overall standard of living of the general population, I don’t feel that has fundamentally been raised,” he pointed out.
China is already the biggest exporter and steel producer. The country’s worldwide influence continues to grow as the fortunes of companies across the globe depend on its economy.
China is the largest car market in the world with one million registered in July alone, a rise of over ten percent from last year.