China became the second largest economy during last quarter finally overtaking Japan putting an end to the nation’s rise over the last three decades as they fought to overcome the isolation of Communism and become a superpower.
Japan’s GDP for the second quarter of 2010 came up to $1.288 trillion which China toppled with a GDP of $1.337 trillion. However, overall Japan is still in the lead for the first half of the year.
China was the leader as the world began to come out of the global recession with a strong economy that became over 90% better when Deng Xiapoing finally dropped the Communist policies and turned to free market reform during 1978.
By 2027, Goldman Sachs Group Inc economist Jim O’Neill predicts that China will take over the United States as the largest economy in the world.
Senior fellow at Brookings Institution, Eswar Prasad, stated that China passing Japan shows that they are continuing to hold onto their role in the global economy which was aided by the economy’s resilience during the economic crisis.
The Shanghai stock index reflected the strong GDP rising 2.1% before it closed at 3pm which is its largest climb of the month so far.
China is the lead in other places as well taking over the US during 2009 as the largest automobile market and beating Germany out as the biggest exporter. China is also the top buyer of copper and iron in the world and is known as the second largest crude oil importer around the world.
China did show a low industrial output in July but it is not expected to last.