What China Can Learn From Japan’s Economic Comeback
personally I strongly agree with this viewpoint i think if we have to find a country for China’s economy to benchmark against the most representative and comparable one is Japan the US market due to differences in national conditions market environment and development level just isn’t comparable to ours japan is very similar because as East Asian neighbors we both share Confucian culture and are both Asian from this perspective Japan is highly relevant and serves as a valuable reference so I’ve always studied Japan in various settings taking our neighbor as a teacher looking at how Japan after its so-called lost 30 years managed to be the first to emerge from a deflationary environment and a period of low growth and how it came back from being a lowdire society to where it is today today we see that Japan’s stock market has basically returned to its historical peak and even real estate has climbed back to the height seen before the bubble of the 1990s of course there are some geopolitical factors at play but at the core after the bubble burst and with population and economic decline Japan actually implemented a very high level fiscal and tax system reform over the past 30 years it wasn’t just about supply side structural adjustments more importantly Japan introduced macrocredential regulatory tools in its overall economic management at the same time in fact these corrective policies have played a significant role in stabilizing and boosting economic growth this is exactly what Professor Gujaing mentioned regarding economies like this in Japan when the Abe administration came to power Abee’s three arrows policy was a very representative example they implemented large-scale fiscal stimulus policies that were sustained and effective which effectively offset the contraction in the balance sheets of the private sector and general enterprises during a balance sheet recession people no longer prioritize the profits of households and businesses as their guiding principle in this kind of environment because it’s a recession a deflationary environment and a debt-driven economy most companies and individuals are focused on repairing their balance sheets so most businesses are busy paying off debt rather than expanding at this point the government’s fiscal policy should step in to make up for the shortfall caused by the contraction of the balance sheets of the private sector businesses and households this is a large scale long-term macroeconomic stimulus policy that’s why Abee’s three arrows were very effective in helping the Japanese economy emerge from a deflationary and negative interest rate environment so now we’re seeing a very convincing situation the employment rate for Japanese university graduates is 98.5% which is basically equivalent to full employment and now what’s happening is that university students are being recruited by major companies even before they graduate in fact to compete for students and secure new hires companies are even offering signing bonuses relocation assistance and all sorts of incentives so in terms of the labor market Japan has entered an unprecedented era of prosperity a time of full employment that is very favorable for young people although there are still many people in flexible or gig jobs what does that indicate it means the nature and structure of employment have changed but the employment rate remains very high so even in a recessionary environment Japan managed to maintain its position because Abee’s three arrows expansionary and proactive fiscal policies effectively countered the effects of a balanced cheap recession as a result Japan’s overall GDP per capita GDP per capita income and disposable household income have all remained at peak levels in other words the standard of living for residents has not declined significantly so from this perspective Japan’s experience is actually very meaningful and offers valuable lessons for the development of China’s economy and its consumer
What can China learn from Japan’s economic comeback? This video explores how Japan’s recovery from a deflationary economy and its “lost 30 years” offers valuable lessons for China’s economic development. By examining macroeconomic trends and structural competitive advantages, the discussion highlights Japan’s strategic use of fiscal policies, including Abenomics’ “three arrows,” to stabilize the economy, maintain a high employment rate, and foster certainty of value for its population. Key insights from Harvest Capital emphasize how Japan’s proactive fiscal measures resonated with the economic cycle, ensuring consumer investment and steady growth in GDP per capita and household incomes.
Specific examples of successful investments, such as Laoxiangji, Dongpeng Beverage, and Jin Mailang, underline Harvest Capital’s expertise in identifying resilient brands that thrive across economic cycles. As China navigates its unique challenges, these lessons provide a critical framework for entrepreneurship and business strategies in the consumer market. Reflect on these insights and discover how Harvest Capital’s forward-thinking approach to investment can guide sustainable growth in rapidly changing markets.
#economicrecovery #china #policyreform #macroeconomics #japan
CHAPTERS:
00:00 – China’s Economy vs Japan’s Economy
00:49 – Japan’s Economic Recovery After Lost Decades
01:56 – Abe’s Three Arrows Policy: Fiscal Stimulus
03:05 – Japan’s Labor Market: Full Employment