Monday 14th February, 01:41 PM JST
TOKYO —
Japan on Monday welcomed China’s advance to become the world’s second-biggest economy in 2010, with cabinet members expressing hope that Japan, now pushed into third place, and the wider Asian region would benefit from the emerging economy’s development.
Chief Cabinet Secretary Yukio Edano told a press conference that ‘‘the important thing is to incorporate such vitality of China’’ to seek growth in the Japanese economy, while economic and fiscal policy minister Kaoru Yosano separately said Japan wants to deepen its ‘‘friendly and favorable’’ economic ties with China.
‘‘We are not engaging in economic activities to vie for ranking but to enhance people’s lives. From that point of view, we welcome China’s economic advancement as a neighboring country,’’ Yosano said, while giving an upbeat view on the prospects for Japan despite its pausing economic recovery.
According to preliminary gross domestic product data released by the Cabinet Office earlier in the day, Japan’s economy contracted in the three months through December for the first decline in five quarters amid weak consumption.
‘‘The data for the October-December quarter underscored that the economic condition is at a standstill,’’ Yosano said, but noted that ‘‘the situation surrounding Japan’s economy is not necessarily bad’’ amid bright signs seen in the U.S. economy.
‘‘The Bank of Japan and the government have the same view that the economy seemingly is at a standstill, but will turn upward,’’ he said.
But Yosano warned that the domestic political situation could serve as ‘‘a risk’’ to the economy, given concerns among market players over whether the government would be able to ensure the passage of the fiscal 2011 budget and related bills by the March 31 end of the current fiscal year in the divided parliament.
The Cabinet Office also showed in its data that the value of Japan’s nominal GDP for last year totaled $5,474.2 billion, compared with China’s $5,878.6 billion.
Japan had maintained its position as the world’s second largest economy since 1968. But the latest data showed that Japan dropped to third place, behind the United States and China.
Yosano said he expects China’s advance to serve as ‘‘a cornerstone for the regional economy, including the East Asian and Southeast Asian regions, to develop in an integrated manner.’’
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