Japan is faking it?

Financial Review - Is Japan faking it?
Nothing and Some More points to an excellent article on Japan's economic policy the last 20 years. To sum it up, when examined point by point it would seem that they could do worse, and in some cases, may have actually positioned themselves as a key player on the world stage the next 20 years...

Moreover, Japanese leaders are already planning for the day when China will take over as the world's most powerful economy. Although when measured at market exchange rates China's economy is today no more than one quarter the size of the Japanese economy, it is closing the gap rapidly. Given their uniquely clear-sighted insight into the wealth-creating potential of the East Asian economic system, the Japanese expect China to become the world's largest economy in little more than 20 years. And with economic success will surely come commensurate military power.

The underlying warmth of the relationship is evident in trade matters. Although Japan has never had any compunction about erecting barriers to US exports, it has welcomed many of China's exports with open arms (including exports of electronic goods which it generally does not accept from the US). Even more significantly, Japan has permitted its leading companies to transfer important technologies to China - something that it has usually opposed in the case of other nations, including the US.