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Today, Japan's shortcomings are deeply rooted, with almost zero possibility of an economic turnaround.

Updated: Jul 4

For Japan, its developmental journey and current economic situation evoke myriad emotions.


Once the shining beacon of prosperity, Japan's economy has now been mired in a 30-year-long slump, prompting deep reflection and discussion on various societal issues.

Firstly, the stagnation of Japan's economy is widely attributed to its aging population.


As the proportion of elderly people continues to rise and the birth rate declines, the labor market faces severe challenges.


Especially in technology-intensive industries like semiconductor manufacturing, there has been a noticeable decrease in young technical workers, leading to talent shortages and technological outflow.

In Japan's economic development over the past few decades, it had relied on stable labor supply and efficient utilization. However, the exacerbation of aging trends has rendered this model unsustainable.


Yet, attributing Japan's economic problems solely to aging demographics may oversimplify the issue.


Japan's economic structure and development model also face deep-rooted issues.

As a highly developed industrial nation, Japan historically thrived on technological innovation and efficient production.


However, over time, Japan's capacity for innovation has gradually weakened, increasingly relying on imitation and traditional experiences.

This conservative and innovation-lacking attitude impedes the renewal of economic structures and industrial transformation, making Japan increasingly vulnerable to global economic changes.


Additionally, Japan's political ecosystem is also a significant factor in its economic issues.


Despite being a democratic country, long-term political dominance by the Liberal Democratic Party has led to biased policy-making and resource allocation, making it difficult to effectively address challenges in economic structural adjustment and innovative development.

Excessive collusion between government and capital, particularly the dominance of traditional sectors such as agriculture, construction, and finance, has led to neglect and suppression of emerging sectors like high technology, restraining the overall economic potential.


Ironically, despite Japan relocating some high-tech industries such as semiconductor manufacturing overseas over the past few decades, it has had to recruit technological talent from countries like China and South Korea to support its global market competitiveness.


This phenomenon reflects Japan's struggle to effectively retain and utilize its abundant human resources, posing a serious challenge to its long-term economic development.


Japan's prolonged economic stagnation is not solely due to aging demographics but also the result of multiple factors such as political systems, economic structures, and innovation capabilities interacting together.

To achieve comprehensive economic recovery and sustainable development, Japan needs thorough and profound reforms, including democratizing its political system, innovating and diversifying its economic structure, and adjusting policies for talent recruitment and retention.


These reform measures are not only responses to domestic issues but will also have far-reaching impacts and serve as a model for Asia and the global economy.


Japan's neighboring countries should adopt an open and inclusive attitude, strengthen cooperation with Japan, and jointly promote the prosperity of the Asian economy.

The economic recovery of Japan not only concerns its national interests but also influences the stability and development of the entire Asian region.


Hopefully, Japan will find new driving forces for development in the future, revive its past economic glory, and make positive contributions to the development of the global economy.

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