Once Chinas greatest enemy, and rival, Japans prospects are now dependent on ties with its bigger neighbour, the government admitted.
The important issue for Japan is how to incorporate Chinas growth, said Yukio Edano, the Chief Cabinet secretary, pointing out that Japans per-capita wealth is still ten times that of Chinas, perhaps giving Japan the ability to invest in, and profit from, Chinese growth.
Kaoru Yosano, the Fiscal policy minister, added: We welcome, as a neighbouring nation, that Chinas economy is advancing rapidly. This can become a foundation for the development of the regional economy.
He added: We are not managing the economy to compete for ranking, but to enhance peoples lives.
For China it was a triumphant moment. China has done more than any other economy to pull the world out of recession, and may remain an important engine of global growth for some years to come, stated an opinion piece in the China Daily, the official English-language newspaper.
Chinas global power has grown considerably in recent years, but the Communist party remains nervous about assuming the mantle of an economic superpower, especially given Chinas continuing development.
China surpassing Japan to become Worlds Second Biggest Economy - But not the Second Strongest, said a headline in the Peoples Daily newspaper.
Meanwhile, other economic statistics showed that Chinas trade surplus fell to its lowest level in nine months in January after imports surged. The trade surplus shrank to $6.5 billion from $13.1 billion in December, well short of predictions.
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