Japan is in bad shape and there is nothing to suggest it
is able to turn around its stagnant economy festering over the last
three decades. Unless a miracle happens. And that could only be war,
which some may like.
In fact, if Japan loses the car
manufacturing industry to China, it will get even worse. The Yen is
still sliding despite all the 'whateverdomics' the Japanese may be
inventing to rescue the economy and the Yen.
Japan depends on
most of its needs on imports eg energy and raw materials for its
industry, and with the sliding Yen, it has to pay more and more for such
imports. The sliding Yen would have helped its export market in theory,
but it is competing not too well with Chinese manufacturing. The only
saving grace is that Japanese citizens are pretty docile in behavior,
preferring to suffer the years of stagnant wages in silence to cope with
living costs. Elsewhere there would be riots erupting long ago.
Elsewhere does not include Red Dot, which is endowed with
'exceptionalism' as well.
Sad that an Asian country that once
was holding the Asian beacon of greatness by competing so well against
the West, is now a shadow of its former glory. There were the years of
the whole world chanting its greatness in everything it does and wanting
to emulate. Strange world!
Anonymous
1 comment:
China is complying with the USA and EU demands to cut its overcapacity, which is said to be affecting their industries and putting them out of business. Now, with lesser and lesser Chinese exports being reported to be going to the USA and EU, they cannot now keep blaming China for unfair overcapacity.
USA and EU industries can now move ahead in peace and produce goods for their own people. China is going to leave them alone to prosper and will concentrate on exporting to BRICS countries. If China can produce goods more cheaply, it is up to the USA and EU to uplift their competitiveness, not trying to push China to produce expensive goods for the rest of the world. I think the whole world understands and can agree wholeheartedly.
China is in reality selling more consumer products to BRICS and Global South countries and intent on selling less to the USA and EU. China is taking a leaf from the Russians, selling less energy to the EU and selling more to China and India. It certainly made Russia more prosperous so far.
This pushing out of Chinese products is what the USA and EU wanted all along, so China is helping them by diverting exports to BRICS countries instead. In fact, China is helping them with decoupling, since it has been talked about for years, and now due to tiredness of repeating the word 'decoupling' they have changed the mantra into 'derisking' to sound more deadly to the Chinese.
BRICS countries are enjoying a bountiful harvest of cheap products from China. It is a blessing in disguise for them and they ought to say 'thank you' to the USA and EU. China and India ought also to say 'thank you' to the EU for letting them enjoy cheap Russian energy. More cheap products from China, means more blessings for the BRICS and Global South countries.
What is perhaps less noticeable is that trade with other BRICS countries is going to be conducted outside the US$ with some countries today, but will be expanded in time to come, perhaps in October when BRICS summit is held in Kazan, Russia.
There is a saying though that the USA and EU ought to keep in mind - Be careful of what you wish for!
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