China vs. Japan

Here is an interesting image that gives a clear picture of what has happened in the economies of Japan and China over the last 25 years. Japan used to be the major exporter to North America. That business has moved to China causing a lot of difficulties in the Japanese economy. I don't think China will have the same bubble effect, simply because their population is so high that their domestic consumption will take over once their export economy shrinks.




Full article: http://www.economist.com/daily/chartgallery/displaystory.cfm?story_id=15096188

Source: http://krusekronicle.typepad.com/kruse_kronicle/2009/12/bubble-trouble-china-vs-japan.html

Danny