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Thu, November 28, 2024

Has China Become the New Japan and Japan the New China?


Published on 2024-11-28 03:00:46 - Bill Williamson, WOPRAI
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  • With China's economy struggling and squarely in Trump's doghouse, the world's second-largest economy could stagnate over a sustained period, like Japan's did for decades. Conversely, Japan has shown signs of life lately.

The article from MSN Money discusses the evolving economic dynamics between China and Japan, suggesting a role reversal in their global economic standings. Historically, Japan was seen as the economic powerhouse with its rapid growth post-World War II, but it faced stagnation in the 1990s due to asset price bubbles and demographic challenges. Conversely, China has risen as a manufacturing giant and a significant player in global trade, but it now faces its own set of economic issues including a slowing growth rate, high debt levels, and geopolitical tensions. The piece explores how China might be entering a phase similar to Japan's "Lost Decades" with economic slowdowns, while Japan, with its technological advancements, stable governance, and efforts to reform its economy, could be on the path to resurgence. This shift is highlighted by changes in investment patterns, with investors now looking at Japan for growth opportunities and viewing China with more caution due to its economic and political uncertainties.

Read the Full MSN Article at [ https://www.msn.com/en-us/money/other/has-china-become-the-new-japan-and-japan-the-new-china/ar-AA1uTTL0 ]
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