It is undeniable that China's economy has made remarkable achievements, not only becoming the world's second largest economy, but also the renminbi becoming the world's fourth largest payment currency. According to Japan's "Asahi Shimbun" report, the yen's exchange rate against the dollar has fallen below the 150 mark, which means that its domestic inflationary pressure is increasing, and it also shows that the yen's international competitiveness is rapidly declining. This makes us wonder why the yen has fallen to the point where it is today, you know, in the 80s of the last century, the Japanese economy was still the second in the world, and the scenery was unlimited for a time, I think the reasons are the following two points.
First, the structural fragility of its own economy, on the one hand, Japan, as an island country, has relatively poor domestic resources, resulting in its excessive dependence on international raw material imports, which is not conducive to the return of manufacturing capacity and the progress of various investments, which seriously restricts the potential of economic growth. On the other hand, Japan is overly dependent on a single policy, in order to resist the trend of the yen depreciation, Japan has long adopted an ultra-low interest rate policy, although this can promote consumption and drive the development of the real economy, but it will also drive a large amount of capital into the market, which is very easy to cause financial bubbles and increase non-performing investment.
Second, stemming from the aggressive interest rate hikes in the United States, we all know that the United States has done everything in order to protect its own interests, especially after the conflict between Russia and Ukraine, in order to solve the problem of high inflation in the country, the Federal Reserve has repeatedly raised interest rates, and so far has raised interest rates by 300 basis points, which undoubtedly hit seven inches of Japan. Originally, with the depreciation of the yen due to the US interest rate hike, Japan should have contracted its monetary policy, but because the Japanese government insisted on implementing a loose monetary policy in order to ensure exports, the more money was naturally depreciated, after all, the yen was not as strong as the dollar and could only become a victim.
It can be seen that the decline of Japan's economy is not only the result of its own "hardware" strength and the interference of external "software" forces. Especially in the context of the new crown epidemic, the Japanese government's ineffective prevention and control measures have led to a rise in domestic confirmed cases, causing violent turmoil in the financial market, at this time, Japan may wish to look to China, the same neighbor, the main advantages of cooperation with China are the following three points.
First of all, the Chinese market is large, the mainland's 1.4 billion people are a "cornucopia", coupled with the increase in national income, the change of consumption concepts, the demand for various commodities is very strong, if Japan exports products to China, it will definitely drive its own weak export trade. Secondly, China has a good market business environment, and while continuing to promote the reform of "decentralization, management and service" and vigorously implementing the tax and fee reduction policy, the mainland has built a sound market evaluation system to ensure a fair and equal business environment and continuously enhance market vitality. Finally, China and Japan have strong economic complementarity, and as the dust settles on the Regional Comprehensive Economic Partnership Agreement, economic cooperation between the two countries has reached a higher level, China's energy and labor can help Japan, and Japan's industrial products can also help China's development.
As the saying goes, distant relatives are not as good as close neighbors, and if Japan can reform itself and refuse to collude with the United States, it will certainly be able to achieve long-term development in cooperation with China, which also proves that Japan's way out is not in the West but in the East. (Jiaxing)