BEIJING, Feb. 15 (Xinhua) -- With China's official ascent to the world's second largest economy Monday, analysts warned challenges still exist beneath the elevated ranking.
Japan posted nominal GDP of 5.474 trillion U.S. dollars last year behind China's 5.879 trillion, losing its long-held second place, behind the United States, to China, according to data released by the Japanese government Monday.
"China is still a developing country. Its GDP per capita is only 10 percent that of Japan, less than half the world average," said Cai Zhizhou, a researcher with the Center for National Accounting and Economic Growth at Peking University.
He said China lagged far behind Japan in terms of the development balance between urban and rural areas, economic growth and social development.
China's GDP per capita ranked about 100th in the world, according to statistics from the International Monetary Fund (IMF).
China has around 150 million people living below the poverty line set by the United Nations, those with earnings less than 1 dollar per day.
The yawning gap between the rich and poor, over-reliance on natural resources, lack of innovation, an imbalance between investment and consumption, and employment pressures are all factors that can threaten China's development if not properly addressed, say experts.
"Though China's economy is powering ahead, average earnings are not keeping up and the outdated development mode should not be ignored," said Ma Jiantang, head of the National Bureau of Statistics (NBS).
