Japan looks to have lost its place as the world's second largest economy to China in the second quarter of 2010. China has surpassed Japan in quarterly GDP figures before, but with its extraordinary growth, this time it is unlikely to relinquish the lead.
So what does this mean psychologically for Japan, a country that was known as the world's economic miracle 20 years ago? Tim Willcox spoke to The Times newspaper's Tokyo correspondent Leo Lewis, and to the BBC's China Editor Shirong Chen.
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