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Japan's Leading Economy in Asia to Be Replaced by Chinese Economy in 30 Years
The Japanese government for the first time acknowledges in its 2001 Trade White Paper that the "echelon structure" featuring its leading position in Asian economic development has collapsed and its position will be replaced by the rapidly growing Chinese economy.
The influx of foreign funds, especially the entry of the world's top 500 enterprises which have brought in technology, funds and markets that have enabled China to quickly become the biggest "world factory", giving it the momentum to replace China's Taiwan province, Hong Kong Special Administrative Region and the ROK. China's capability to challenge international products, particularly Japanese products, has increased dramatically.
Japanese companies have felt the pressure from Chinese good and cheap products and are in a dilemma. On the one hand, the Japanese government has since last May adopted urgent measures to restrict the import of some Chinese products. On the other hand, Japanese companies remain enthusiastic about investing in and importing from China. If Chinese and Japanese economies continue to develop at the present rates, China has considerable potential to catch up with Japan in 30 years.
It can be said that a competitive structure will be formed as China and Japan are getting close to each other in terms of economic strength and influence in Asia, which will surely exert great impact on Asian and the world economies and politics.
By PD Online Staff Li Heng
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