2nd Largest Economy: China or Japan?

choi

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Joe McDonald, China setting milestone as economy passes Japan's; China milestone: Economy seen overtaking Japan's, highlighting challenges at home and abroad. Associated Press, July 31, 2010.
http://finance.yahoo.com/news/China-setting-milestone-as-apf-2657392945.html?x=0

Quote:

"Exactly when China passes Japan formally will be unclear until after this year ends. It depends on shifting exchange rates and data reported in different forms by the two governments. * * * In 2010, Chinese GDP was $1.335 trillion for the April-June quarter -- a period for which Tokyo has yet to report. China is growing at 10 percent a year, while Japan's expansion this year is forecast at no more than 3 percent. 'On that basis, the crossover probably happened last quarter,' said Julian Jessop, chief international economist for Capital Economics in London, in an e-mail.

* There is no need to read the rest of the AP report.

Note:
(a) Hermès
http://en.wikipedia.org/wiki/Herm%C3%A8s
(a French high fashion house established in 1837; Its logo is of a Duc carriage with horse; The Hermès family, originally Protestant Germans, settled in France in 1828. In 1837, Thierry Hermès (1801–1878) first established Hermès as a harness workshop)

(b) Shang Xia 上下
http://www.shang-xia.com/

Note:
(a) 中国说已超过日本成为世界第二大经济体. VOA Chinese, July 30, 2010.
http://www1.voanews.com/chinese/news/20100730-CHINA-JAPAN-ECON-99628699.html
("易纲没有引用数字来支持他的言论")

(b) 专家分析中国GDP增长的质量.
http://www1.voanews.com/chinese/news/20100730-Chinas-GDP-99628449.html
("中国知名经济学家刘正山 * * * 说，在2009年底的时候，中国的广义货币供应(M2)是60多万亿元人民币，但是同期的GDP数据也就是30万亿元左右，两者的比重是在200%上下，而正常的比重应该是100%左右。从另一方面说明，这个比重越高，经济发展的效率就越低。")

My comment: My knowledge in economics is limited, so I can  not make an independent judgment on veracity of the statement, although it is true that China's M2?GDP ratio has been one of the highest in the world.

(c) Stephanie Clifford, In a Downturn, Even Knockoffs Go Downscale. New York Times, Aug. 1, 2010 (title in the print).
http://www.nytimes.com/2010/08/01/business/economy/01knockoff.html?_r=1&scp=2&sq=clifford%20knockoff&st=cse

Summary: Until reently, counterfeiters went after high-end luxury goods such as $2,800 Louis Vuitton handbags. Lately, criminals fake the more ordinary--"like $295 Kooba bags and $140 Ugg boots."

Quote: "Almost 80 percent of the seized counterfeit goods in the United States last year were produced in China, where the downturn in legitimate exports during the recession left many factories looking for goods--in some cases, any goods--to produce.

My comment: This is the only place in the report that mentions China. The sentence suggests that China's economy was really bad last year. How does that fit into the theme of my posting?  I do not know.








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