Japan's domestic demand is 85%, and the economy can quickly recover if domestic demand becomes healthy.
Although it is called "inbound demand," inbound Chinese demand is only about 0.6% of GDP.
Now, think back to 30 years ago. At that time, there was no China as we know it today. So, was Japan poor, or was Japan in trouble? The answer is no.
The chapters I sent out on January 27, 2021, all suffered from search interference and were divided into the above titles.
The following is from an article by Tetsuya Watanabe that appeared in Hanada, a monthly magazine released on January 26, 2021, titled Jack Ma Erased by Xi Jinping.
The monthly magazine Hanada is a must-read not only for Japanese citizens but also for people worldwide.
The article is a laborious work covering three columns from p91 to p98.
This paper is an excerpt from the last chapter from p. 97 to p. 98.
The emphasis in the text is mine, except for the headline.
Prison or Death
Preamble omitted.
Domestic demand for 1.4 billion people is an illusion.
In 2015, China's demographics shifted from a "human labor bonus" to a "human labor shortage," with more people being supported than working.
At the time of the switch from human labor bonus to human labor shortage, the bubble burst in Japan, and in 2015, China also experienced a stock market crash.
What will happen to China in the future?
A massive population of 1.4 billion people, an aging population three times faster than Japan, a juvenile social security system, excessive money supply, frequent corporate bond defaults of state-owned enterprises, and a large-scale power outage that occurred at the end of last year; Looking at the current "distortion" of China, there is a possibility that it will collapse at once.
Xi Jinping is appealing to the world that China has a "domestic demand of 1.4 billion people." Still, as Premier Li Keqiang revealed at a press conference last May, 600 million people in China have a monthly income of 1,000 yuan (about 15,000 yen). The "domestic demand of 1.4 billion people" is nothing but an illusion.
In the first place, the earth does not have the resources to enrich 1.4 billion people.
There will be a physical limit to development at some point.
Xi Jinping is trying to return the nation of China to communism because he thinks he has already reached the limit of development.
As Mao Zedong did during the Cultural Revolution, he said that he would make wealthy people like Jack Ma and private companies like Alibaba the enemy of his class, alleviate public dissatisfaction, and receive applause from the poor, who make up the majority of the population. That is probably the aim of Xi Jinping.
Thinking about things within the framework of a free society makes it difficult to see what is happening in China.
To begin with, the concept of the rule of law is different.
We in the West have laws that bind those in power, but laws are rules for those in power to control the people in China.
China is doing the same thing in the international community.
In other words, it is an interpretation of the law for its convenience.
Japanese-style democracy will not take root in China.
It is generally said that the limit of democracy is 300 million people.
The EU was successful only with up to 300 million people, and the U.S. started to mess up after its population exceeded 300 million.
Some people think that if China were to be divided, it would work out well. Still, since China's development model is centralized, it would divide labor by region, which would not be feasible as a nation if it were to be divided.
If the people are set free, a rebellion against authority will occur, and an alternative power will rule the country, the Communist Party.
China's history has not changed since the time of the Three Kingdoms.
Japan has created a monster.
Finally, I would like to touch on Japan-China relations.
With the global economy slowing down due to the Corona disaster, the "China wins alone" aspect is growing, but it is no surprise.
It is a matter of course. If you restart the economy by carrying out a planned economy and ignoring human life, you will see positive growth.
Is this the right thing to do or the wrong thing to do?
Naturally, everything works based on market principles, but China completely ignores market principles.
The Chinese model is possible because it is not a liberal economy, and if it were, it would have failed long ago.
It was Japan that raised the monster that is China.
Japan supported China's reform and opening-up that began in 1978. It was the first country in the West to lift economic sanctions against China after the Tiananmen Square massacre in 1989, making Japan poorer.
The blame for this lies with the Japanese politicians and business leaders who harbor the illusion of China.
They provided technical assistance to China, invested capital, and reinvested in China because they could not return the profits to Japan.
China's capital controls are strict, and the Chinese Communist Party will harass you if you don't reinvest most of your profits in China.
It calls for investment only when it can return the profit to Japan.
Don't you think it's ridiculous to invest in something you can't bring back home and work so hard on?
If you can't get your money back, it's not an investment; it's just a donation.
As for the results, they only boosted China's GDP.
Haier, which swallowed up Sanyo Electric, has been the world's No. 1 retailer of large home appliances for 11 consecutive years, from 2009 to 2019.
It is the reality.
Has there been even one good thing that has come out of our relationship with China?
Isn't it just that Japan's wealth has been eaten up?
When I argue this, some people say, "Japan's economy cannot exist without China.
Then, I would like you to think back to 30 years ago.
At that time, there was no China as we know it today.
So, was Japan poor, or was Japan in trouble?
The answer is no.
There are no economic benefits to be gained from friendly relations with China.
Although it is called "inbound demand," inbound Chinese demand is only about 0.6% of GDP.
Chinese people buy home appliances made by Japanese manufacturers and return home, but many are made in China.
They are merely reimporting products made in China.
Retailers make money, but those retailers are also Chinese-owned Laox. It's a funny story.
Japan's domestic demand is 85%, and if domestic demand becomes healthy, the economy can quickly recover.
One example is Taiwan.
Even with the Corona disaster, Taiwan has maintained positive economic growth by having more and more companies from China return to the country.
The separation between China and the U.S., known as decoupling, will accelerate in the future.
Japanese companies should also accelerate their move to return to Japan, and politicians and business leaders should abandon their illusions about China.
