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August 17, 2010

The Chinese economy is not world number 2---yet, with yen's higher value

Yesterday the world media has reported that the Chinese GDP in the second quarter overtook that of Japan, finally becoming second largest economy in the world.
However, that is not the case yet.

In the second quarter the average value of the Japanese yen was 92 against one US dollar. Today the rate is 85 yens against one dollar, and the renminbi's rate is almost pegged to the dollar. This means that the Japanese GDP is still safely world number 2.

But this is a childish saying, and sooner or later China will overtake Japan in volume (and not in quality). The Japanese are ready for that. In China's growth Japan has been making substantial contribution through her investments along with companies from the U.S. and EU, just as we together have been doing in ASEAN countries.

I am glad that East Asia has thus become the moving force of the global economy. Japan will keep benefitting from it. Japan's task is to overcome the lack of her domestic demand and employment, as a large chunk of her production has flowed out abroad.

I a 昨日世界のメディアは、今年第2四半期中国のGDPが日本を抜いたと報じたけれど、これは1ドル=92円強で計算した時の話。今日は85円強のようだから、まだまだ日本as number 2の座は安泰。円をどんどん切り上げりゃ、中国は永遠に追いつけないかというとそんなことはなくて、日本経済がへたってしまうが。




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