Don’t underestimate Japan

I’ve talked plenty about India on here, and I almost forgot about Japan. It’s still a major power in the region with an economy larger than India while having a tenth of its population. In fact, the only factor that could stymie Japan’s growth is its population and demographics. India still has lots of room to grow considering their huge population. It has the potential to become the next China with its low-wage workforce. And lately, many companies have diverted operations out of China and into India. What China loses is India’s gain in this era of decoupling.

Japan more than anyone has reason to fear a rising China. China’s EV manufacturing prowess might cut into the market share of Japanese auto manufacturers while China is also gaining a foothold in consumer electronics – something Japan once dominated. Not only that but China still harbors bitter feelings against the Japanese for WWII and as they see it, Japan had much to do with the “Century of humiliation” that China claims to have suffered at their hands. Having said all that, Japan is probably our most powerful friend in Asia with enormous influence that could serve to counterbalance China. If we underestimate Japan we do so at our own peril. Biden and Kishida have done great work at strengthening the US-Japan relationship. We should all be grateful for such a good friend in Asia.