Japanese Economy 2012
Going forward, what seems likely to have a much more chilling
effect–both psychological and practical–in Japan’s economy and politics
is uncertainty about the escalating dispute with China over the Senkaku
Islands (called Diaoyu by the Chinese). Japan’s decision to
“nationalize” the islands through a state purchase from the private
Japanese owner now appears irrevocable. China is leaving no doubt that
the cost of this move to Japan will be far greater than just the
purchase price.
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