Monday, January 24, 2011

Japan Just a Warm-Up

The United States is seeing strong similarities between Japan in the 1980's and China today with their rising economic powers. The difference seems to be that China is much stronger and more powerful than Japan was in the 1980's. China has been encouraging outside investors where Japan did not. China has put much of their focus on long term projects including commercial aircraft, telecommunications equipment, high-speed trains, clean energy, and automobiles. Due to this promising economic future, China has also managed to attract many entrepreneurial investors from the Unites States looking to partner with these up and coming ventures. This recent action in China is going to further increase their economic power and increase the United States' economic dependance on them to survive.

1 comment:

babuck said...

But Japan never really regained their status after their economic slow down. If China's inflation and real estate bubble pops they could end up in stagnation just like Japan did.