We have $1.2 Trillion on Pension funds , and a FOrEX of over $1.5 Trillion.
We have ALOT of money, lol
That's about $2.7 Trillion .....
Yes, Japan is a financial behemoth beyond its "modest" GDP numbers, there is almost another Japan outside its sovereign soil and can easily put up a fund of such a scale! Let's run through a simple check and analysis.
At the peak of its time, in 1985 the Plaza Accord changed the course of Japan from GDP-driven (production on its sovereign soil) to massive overseas economic expansion (oversea production), making Japan the No. 1 creditor nation since 1992 till now, 24 years in a row. At the end of 2013 Japan's
net external assets was a mind-boggling $3.2 trillion, over 50% more than those held by China, the world's No. 2 creditor nation.
In terms of industrial leadership, despite say giving away leadership to SK in some heavy industries, and in electronics ceding market share to fast catching-ups in SK (e.g. Hynix, Samsung) and Taiwan (e.g. TSMC) since 1980's, Japan maintained a huge global lead in many other top-notched techs from robotics, advanced materials, optics, precision tooling to large-scale NC machines. Japan is actually
well-positioned in the integration of the East Asia manufacturing hub,
holding critical upstream positions in the whole supply chain. While being an upstream component superpower i.e. "Industry 3.0~4.0", Japan also maintains lead in several consumer products e.g. Toyota with its globalized production, the No 1 auto company both in volume and revenue.
Relatively speaking Taiwan and SK corps were integrated much deeper with China, which is both the bulk of the supply chain, as well as a market. An example would be the battle between PDP and LCD, technological factor contributed only partly to the results as witnessed today. Another example is SONY's retreat from consumer mobiles, and "pivot" to core components.
Noting Japan's unique positioning in the global supply chain, the future of Japan will continue to rely on
closer integration with China, which is both the bulk of the supply chain, as well as a potential market. The
well established, full-spectrum, continental-sized industrial base of China offers huge opportunities to
Japanese industrial techs.
I suppose some high-tech exports numbers of Japan are embedded with China, Singapore, US, Malaysia:
On consumption, despite the market is already huge, its potential is even bigger noting China's
annual domestic savings is an unusual 50% of GDP and world No. 1 in absolute size (the abnormally high savings, and low consumption of Chinese is a key reason for currently low GDP figure). Compared to industrial techs, due to political tension, Japan has been trailing its peers in Taiwan and Korea in tapping Chinese
consumer market.
Gross domestic savings (current US$)
Gross domestic savings are calculated as GDP less final consumption expenditure (total consumption). Data are in current U.S. dollars. World Bank national accounts data, and OECD National Accounts data files.
Catalog Sources World Development Indicators
Other than China, Japanese goods will continue to rely on markets from the
developed countries, either directly, through its offshore manufacturing assets, or through peer supply chain in East Asia.
In extremely low GDP countries, consumption potential is weak hence less attractive to hi-end Japanese consumer products. Furthermore if infrastructure and industrial base is underdeveloped, it would be difficult for hi-end Japanese techs or industrial goods to make any major inroads. Though there are still lucrative opportunities, say
infrastructure export, and
machinery for industry 1.0, especially for countries with stimulus packages and beginning to industrialize (e.g. Pakistan, Bangladesh), or countries rich in natural resources (e.g. Africa, South America).
@cnleio @mike2000 is back : comments and opinions are welcome
Some of above are extracted from my own post:
How China Made Japan Irrelevant!!! | Page 2
Coming Down to Earth
