As we've reported, China's on course to replace Japan as the world's second largest economy by the end of this year. The economy grew by a staggering 10.7 percent in the fourth quarter compared with a year ago, as the country continued to surge forward - even as many others are still struggling to shake off the effects of the global recession.

Over the whole of 2009, Chinese gross domestic product grew 8.7 percent, comfortably above the 8 percent growth-rate benchmark that Chinese leaders believe is necessary to maintain social stability.

As we reported earlier this week, Japan narrowly retained its lead over China last year as the world's second-largest economy behind the U.S., buoyed by recovering exports and rising consumer spending. Data released by Japan's Cabinet Office showed the country's inflation-adjusted gross domestic product grew at 1.1% in the fourth quarter and 4.6% on an annualized basis, beating analysts' expectations.

Japan's GDP last year totaled $5.09 trillion compared with China's $4.91 trillion. Economists said Japan's data suggest that a "strong cyclical recovery" is underway and a "spiral shrinking of Japan's nominal economy has come to a halt.” But despite the recovery, analysts still expect China’s GDP to surpass Japan, taking over the number two spot by the end of this year.

Last year China posted strong GDP growth of 8.7% while other nations were posting much smaller gains. China also overtook Germany last year as the world's largest exporter and the U.S. as the largest auto market in the world.

China is on course to becoming the world's number two economy after economic data released Thursday showed the economy grew by 8.7% in 2009.

The figure is well above the government's official target of 8% growth in GDP. Earlier today Fergus took a closer look at just what these figures mean for China.

Top Chinese securities company Hai Tong recently released its investment preview for 2010, which predicts a 9.5 percent growth for China's economy next year. But that could have implications for the country's carbon emissions - as accusations over the Copenhagen climate summit continue to fly. 

Figures announcing robust growth for China's economy are usually good news, and especially so in uncertain financial times like these.

And the figures from Hai Tong will certainly be well received by Chinese businesses and those whose investments or jobs depend on China's continued rapid development.

China's National Bureau of Statistics is set to announce the country's GDP growth data for 2009 next Thursday. And it seems the country has defied earlier predictions of a sharp drop. It's now expected to easily meet the government's target of 8 percent – that's the figure it sees as crucial for job creation and ensuring social stability.

The economy grew 8.9 percent in the third quarter of 2009 - compared to 7.9 percent in the second quarter after a record low of 6.1 percent in the first. Analysts are now predicting a figure of between 8.2 percent and 8.4 percent for the year.

Based on this and other factors, one of the country's top think tanks is predicting a staggering 9.5 percent growth for the economy next year - 2010. The State Council's Development Research Center says the economy will be boosted by double-digit growth in real estate investment and predicts exports, a key driver of economic growth, will start to grow again in 2010.

So can such a high target be met? We went out and asked some Chinese people if they felt that 9.5% growth was practical.

The World Bank's latest quarterly update says China, the world’s third largest economy, will continue to see steady economic growth through 2011, but it will likely begin to slow.

Strong real estate investment and a recovery in exports has helped China's steady growth.

Some recent financial data has caused a certain amount of excitement over the current state of China's economy. And it's not just in China where people have been taking note. Those in the US could also be eyeing China's growth nervously.

Move over Japan. Here comes China. The most populous country in the world is on course to overtake Japan this year as the world's second largest economy. According to preliminary figures, China's GDP in 2009 reached four point nine trillion dollars, up nearly 9 percent year-on-year. Even though Japan's GDP figure won't be released until next month, the outlook for China seems promising.

The economic data released by China last week seem to confirm the country's emergence from the global financial crisis relatively unscathed: 8.7% growth in 2009; adequate employment; a healthy trade balance.

It all seems to underline China's safe passage through the turmoil of last year that severely damaged so many other economies.But one top analyst is warning that China may not find things so easy in 2010.

Stephen Roach is chairman of Morgan Stanley Asia. He says after that after years of growth, the Chinese export sector could soon face a backlash from western countries.