Over the past week, people have argued in the same breath that China is an economic threat to Japan and that China’s currency should be revalued. This recalls a similar debate between the U.S. and Japan, which led up to, but did not end with, the Plaza Accords in 1985. American newspapers liked to portray Japan as a giant sumo wrestler or a Godzilla invading the U.S. economy and squashing American industry. Now, with China, journalists have equally sensational imagery to draw from – the dragon is swallowing the sumo wrestler. But those who say that China is a threat are wrong and have merely shifted attention from the biggest problem. The real threat to Japan’s economy resides within Japan itself.
PacNet #34 – The Threat to Japan’s Economy is Japan, Not China
August 24, 2001