This is indeed worrying. its true Japan needs to review it policies and adapt more to current world trends as some of their electronics have fallen behind some of its east asian rivals.
However, Japan is already a rich/wealthy/developed country, as such its hard for it to grow as fast as other emerging countries who are still relatively poor/low GDP per capital like India,China,turkey,Brazil, Indonesia etc.
As leveraged buyout once said here, to get rich is difficult, but once you are rich/wealthy, its difficult to be poor. Even so, the recent years has been better for Japan since their new prime minister took office, before the growth was always negative, now at least its more positive, though still low, but still its better than before and hopefully things will improve .
So Chinese/indians here shouldn't be rejoicing about Japans demise/slow down, since it will take decades for China to ever reach Japans current living standards(if they ever do at all).