July 1st, 2010
02:50 AM GMT
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(CNN) – A key reading on business sentiment shows that optimism is on the rise in the country’s business sector. The closely watched Tankan survey is out, and it shows – for the first time in a long time – the country's big businesses are feeling good about the state of the economy.

The quarterly survey had a reading of plus one. Most economists were expecting a reading of minus four. That means optimists outnumber pessimists.

That’s in contrast to negative numbers out of Japan earlier this week, led by news that unemployment inched upward in May. Still, the results will likely come as welcome relief, particularly to exporters who have been hammered this week by a stronger yen.

Meanwhile, Chinese state media is reported that China’s Purchasing Managers’ Index (PMI) was at 52.1 percent. That’s down from 53.9 percent in May, a sign China’s red-hot economy is starting to cool.

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Filed under: BusinessChinaJapan

soundoff (17 Responses)
  1. Cambojah

    Rich is rich at the cost of poor????????????

    July 1, 2010 at 6:00 am |
  2. AnataKumi

    The USD has finally equalized with the Canadian Dollar. Not a good sign for any global economy

    July 1, 2010 at 6:21 am |
  3. NG

    Who do you think your readers are ? Using a soccer fan photo shot to illustrate this article relating to Business matter.
    Please !

    July 1, 2010 at 6:45 am |
  4. OY

    NG – I agree with you, Using a soccer fan photo is not very helpful once you figured out what it is. To say that optimism arises in JP, that looks very unlikely, given the higher unemployment figure that was recently out – Gov't is/has been dysfunctional too.

    July 1, 2010 at 8:15 am |
  5. Richard Kytle

    China is now the second largest economy in the world. The differences between the economies has vanished and China has risen to the number two spot. Why hasn't CNN reported this yet?

    July 1, 2010 at 10:01 am |
  6. General Gonad

    Because Richard Kyle,

    CNN is and always will be an Anti-China/pro-Tibet website. Always trying to find all the negativity with China and her people. It is called the Age of Envy. CNN is made of blind one-sided reporting like the LA Times and Washington Post.

    July 2, 2010 at 1:16 am |
  7. Dr. Chip

    I agree General, I was in Atlanta for the protests after Cafferty called the Chinese people a bunch of goons and thugs. i still prefer CNN over Fox any day, but they can be ignorant and hateful when it comes to China.

    July 3, 2010 at 3:43 am |
  8. Tiekiu

    @General & Dr. Chip.
    First of all, I think that the global economy will change in a not too distant future. Emerging countries will close up to the west and they have every right to do so. BUT, the whole "China is becoming the biggest economy and in 50 years we will all be Chinese" debate is way overstated. Why should we praise a country and a political regime which does not care about human rights, international right, and intellectual property rights? What makes the Chinese economy so superior? In fact, the country does not offer much besides cheap labour, counterfeit products and governmental spending. This should not be a debate about envy. The Chinese have every right to be as wealthy as we in the western world. Though we should not try to sell our values because the numbers are so shiny. I have been in China and have seen the littering and the political injustice as well as void skyscrapers. In a not to distant future, the gap between the western economies and the emerging markets will vanish, but China has still a long way to go.

    July 7, 2010 at 3:59 pm |
  9. chinese netizen

    Be a people don't like CNN said by chinese netizen. it's a adage in chinese now.

    July 27, 2010 at 1:03 pm |
  10. gbbilly

    Richard Kytle and others, please see:

    http://en.wikipedia.org/wiki/Economy_of_the_People_Republic_of_China says "The economy of the People's Republic of China is the world's third largest, after the United States and Japan."

    July 29, 2010 at 1:35 am |
  11. Jeong

    who can say that Global economic crisis.. even chiness..
    i also have been in china for 1 year..
    ofcourse, their's policy, security.. there was so many problem.
    but i saw some aspiration in their mind and their eyes...
    in my case i wanna work in china even though i earn low salary..
    someone who hasn't been china, can not blame, can not criticize easily..

    August 2, 2010 at 8:33 am |
  12. Frederika Wissink

    To General Gonad: What has Tibet got to do with this news item? Nothing. A philosophy lesson: Life is generally like this: we all have good times and bad times. We talk about the good times and the bad times. In China, one is only allowed to talk about the good times.
    You don't understand that your government hides half of the truth, and they do not allow people to talk about what really is going on.
    China's wrong philosophy goes like this: Talking about hard things (concerning China) is the same as criticism, and people who criticise China are pro-Tibet. I know that is why you mentioned Tibet . You follow wrong logic. Sorry.

    Maybe you can live with 50% of the truth, but I prefer to hear all of it.

    August 2, 2010 at 11:02 am |
  13. ChinaUSA

    Tiekiu is spot-on. I have lived in Shanghai for 4 years. Every expat who has been here at least a year sees the same thing: much of the "juggernaut" that is China is a farce. Innovation and critical thinking are sorely lacking among even the middle and upper classes, and are not cultivated in the schools. 95% of the growth and progress that has been made here at the corporate level has been led by foreigners or Chinese nationals who have been educated/worked in the U.S. or Europe. Almost never do we see a local who has never lived/worked abroad contribute significant leadership or ideas. Many of the fancy skyscrapers of Shanghai are empty-and were built with govt money to gain "face" with foreign visitors. The folks defending China so vehemently often don't know what they don't know or they are Chinese American and fueled by nationalistic pride. Even if they have visited here, they don't know. It's easy to be fooled. Come live here full-time, see the people spitting in the street, the ignorance, then see what you think.

    August 2, 2010 at 8:33 pm |
  14. ChicagoRich

    Actually, I would love to see both countries. Both are booming economic power houses, China has been growing so rapidly that I would be terribly surprised to see that there were not growing pains. The growth rates in my city in the late 1800's were cause for much pain and unrest there. The technology is much more advanced now, but the shifts in wealth, and of occupations of the citizens, would be no less significant now. With all of this change comes opportunity. Japan on the other hand has been steadily advancing their technological leadership in robotics and other high tech industries. Someday I will hopefully get to visit both of these places. The scientific and industrial advancements within my own country and these and these and other countries are the only counters we have to the sustainability of so many of our trends. These are indeed exciting times.

    August 7, 2010 at 7:30 pm |
  15. eddie

    Those who say China has offered only cheap labor are only offering ignorance opinion. Africa, India, Latin America, Mexico, our nafta partner, do not offer cheap labor? If a country that offer only cheap labor can leap to no. 2 spot from number 50 within a short 30 years, perhap Americans should reduce everyone salary.

    Chinese are hardworking. Ask any expats that are sent and live in China for years, they will tell you that the local workers learns exteremly fast, so fast to a point that the ex-pat has a hard time jusifying their US salary that are typtcially 20 times higher that the locals, who perform also at par. The most impressive part about China is that the local workers work a lot harder than average American workers.

    CNN will never talk about that. They only talk about the negaives. If you wish to go on to beieve that Chinese are just offering cheap labor, then stay at you own little well. Westerners bad mouth China becuase they are jealous. Sure the Chinese have negatives, but look at the rate of progression. One would have to be a fool to discount that. Why are the multi-nationals are attracted to china while so many countries offer cheap labor. The multi-nationals aren't stipud. They are smart enough to employ the best, that is capitalisium at work alright.

    August 10, 2010 at 4:52 am |
  16. Josh

    The "ChinaUSA" attributes "95% of the growth and progress that has been made here at the corporate level has been led by foreigners or Chinese nationals who have been educated/worked in the U.S. or Europe."-What an ignorant bravado. China' economic progress so far are almost entirely built upon the hard work and smart brains of the Chinese people, especially the workers who has taken such a low salary while still managing to save half of it.

    The "foreigners or Chinese nationals who have been educated/worked in the U.S. or Europe" are largely profiteers who manipulate the system and bribe their way to insider deals. They are a drag and net negative to China’s development. They are castoff of, and second tiers to, the Wall Street elite; but look what the Wall Street elite has done: raking in millions a year, justifying the theft by calming superior knowledge, while in reality they know nothing about improving economy, mouthpiece free market virtue every day, wrecked the economy and bankrupted their companies and investors, and begged for bailout from government.

    Chinese are starting to wise up and their days are numbered.—just you watch.

    August 11, 2010 at 6:43 am |
  17. chan

    people are raising china 's superpower is short minded. Think about a country treat people baddly – arrogant – bad food product , bad comsumer product ...bad... .DO you want to live with bad super power – it will make you into chinese? do you like that?

    August 11, 2010 at 1:45 pm |

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