China surpassed Japan in the ranking of the largest economies in the world, advancing to second place after the United States. Overthrow the U.S. is expected somewhere between 2020 and 2030. Climbing the ranks in the top two can be seen as a formalization of China’s economic superpower status, which in the past two years has benefited from global economic crisis that has knelt to the West for influence extends throughout the world.
This is the first time in over 40 years old when Japan lost the status of the second largest economy in the world gross domestic product (GDP) for 2010 was estimated at 5.500 billion dollars, lower value China estimates that by 5800 billion dollars.
China’s economy grew last quarter of 2010 by 11% while that of Japan declined by 1.2% over the same period. The problems facing Japan and led to a growth of only 3.8% in 2010 is a decrease in domestic consumption because Japan’s aging population spends less, while labor is relatively expensive and inflexible.
Economic boom, with GDP growing in recent years with annual rates exceeding 10%, turned the country, making it the largest car market in the world or the biggest energy consumer.
However, given that the country is the main advantage of cheap labor that makes products more competitive on foreign markets than companies from developed countries.
China also managed to change their performance communist state image of a superpower in the poor economic boom based on production, industry expansion and development.
On the other hand, China remains one of the poorest countries in terms of per capita income. According to World Bank estimates, more than 100 million Chinese – roughly equivalent to Japan’s population – live with only two dollars a day, and GDP per capita of China is ten times lower than that of Japan, the ratio being 4,500 dollars to 40,000 dollars.
But the economic boom has led to the rapid enrichment of certain social categories, so that producers of luxury goods, from cars to jewelry, flock to meet increasing demand coming from China.
China has used its foreign exchange reserves huge, 2,850 billion dollars, to gain influence in the world and provided loans on favorable terms to countries rich in natural resources from Africa or Latin America. Moreover, given the euro as a guarantor of stability when he announced he wants to buy bonds of Greece and Portugal, countries which are the “black list” of investors.