China Thwarts Japan's Economy, Stands No 2 In 2010

By ETHAN Markoff

JAPAN NEWS - China has replaced Japan in 2010 and becomes the second largest economy after the United States. It is a shock to Japanese economic foundation, which had its position for much of the last four decades, and almost surpassed even the United States for its exponential growth curve in 80s. Japan's economy had experienced its decline in the fourth quarter when compared with the previous three months, falling 0.3 percent in the October-December quarters as the end of the government incentives on environmentally friendly cars gave a negative impact on people's spending habit. At a result, Japan's economy shrank 1.1 percent annually from the previous quarter.

The contraction in the Japanese economy has led the country to suffer in front of rival China whose economy has risen to $5.88 as compared to Japan’s economy for 2010 to $5.47 trillion. This figure also testifies that China has tremendously raised economically in the recent years and holds a position as an economic superpower. Just five years back, China's was far more lagged behind Japan with gross domestic product was around $2.3 trillion, about half Japan's.

China is in the peak of its urbanization and industrialization, whereas Japan's economy is quite old now. Despite rapid economic growth, China's per-capita income is about $3,600, less than Japan. Initially Japan's economy had benefited from China's growth as trading shifted production and took advantage of lower costs, and small businesses gained profit, holding increasing attractive market for Japanese goods.

However, Japan's economy had contracted in the fourth quarter, it expanded 3.9 percent over all in 2010 compared with a year earlier.

Japanese government expressed its concern and showed optimism about its economic assessment and said the economy could soon rebound, as exports and factory output are gained by the steep demand China and other growing economies in Asia.

In the October-December quarter, the spending of people rapidly fell down to 0.7 percent for generous government benefits for fuel efficient cars. The recent high tax levied on tobacco also affect cigarette sales. Net exports were hurt by a surge in the yen to 15-year highs, which affected Japanese exports. Other factors include such as capital investment rose 0.9 percent that fell short of the 1.5 percent from the previous quarter.

However, the country's GDP did not affect the stock market and it rose to 0.8 percent at midday Monday.

IT Giant Lenova Plans To Launch Gaming Console

By ETHAN Markoff

To compete in the booming video game industry, China's IT stalwart Lenova will soon come up with a gaming console. The company will surely face a tough competition from Nintendo's Wii, Microsoft's XBox 360 and Sony's PlayStation 3.

The Chinese company has already developed a prototype of eBox console and branched a new organization in Beijing known as Beijing eedoo Technology Ltd..

One of the exciting features in the gaming console is controller-free operation. It means the console can be operated by gestures. The eBox can be connected to high-definition television set and the internet.

The company said the gaming console will be targeted to 120 million Chinese urban households. The launch would probably be by the end of the year.

Initially the company targets only domestic market but plans to move it to other Asia Pacific region and other overseas markets.

The motion-sensor technology is not the new innovation in gaming console, last month Microsoft announced that it would launch its kinect system for the XBox 360 November 4.

The largest Chinese IT company is yet to disclose the financial details of the gaming system. It is reported that Lenovo is expanding its business into new product types such as smartphones and tablet computers, and the gaming console is a part of this diversification.

Earlier this year the company launched LePhone, its first mobile phone.

Manufacturing Process Slows Down In China, Record 17-Month Low

China - Despite China's remarkable manpower efficiency and tremendous manufacturing process growth, showing a grim picture in recent months when the manufacturing output has been recorded its slowest rate for 17 months. The effort of Chinese government to accelerate the economic growth proves to be less effective, and the index of manufacturing output fell to 51.2 in July from 52.1 in June. Reported China Federation of Logistic and Purchasing.

Economic analysts have asserted the reason behind the slowdown is because of banks strict policies to lend money to firms. It has been reported that the Chinese economy is a major concern for the government and contemplated as it could be overheating.

Analysts have pointed the consolidation of property prices in China triggered banks to limit the credit.

Meanwhile, the government has taken damage control steps by reducing stimulus on construction projects, and kept a tab on high energy consuming and polluting factories.

"We know Chinese growth is slowing and this number provides confirmation of this," said Brian Jackson, a strategist with Royal Bank of Canada in Hong Kong.

Mr. Jackson further added that the export of Chinese goods could have been a major stimulus to check the slowdown. However, if the export fall to expectations then Beijing would likely to deliver a renewed surge in investment spending.

The Chinese economy grew by 10.3% and still higher than government's 8% target.