I read somewhere, once Japan dominated Asian trade by some 35% while it is down to 12% these days.
China's share, on the other, has risen to 46% of all trade made in Asia.
That shows the huge difference in economies of scale.
What is more interesting, militarization seems not to be adding positively to economic vitality. And Abenomics cannot stop the slide in manufacturing and exports despite of Yen undervalued and QE.
Yes bro, I am also critical to Abenomics, and even more concerned about to where it's leading Japan. I wouldn't underestimate the influence of Washington neocons behind radicalization of geopolitics in Tokyo, since it's in their best interests to steer Japan into collision course with China.
However Japan is far from being irrelevant, in fact I would rate Japan as the second most powerful nation on earth, just as what CASS (Chinese Academy of Social Sciences) has done in the 2015 ranking of CNP (Comprehensive National Power). Link:
CASS: Comprehensive National Power 2015
One common public myth is about GDP's dominance in national power, but what is GDP? It's one measure of vibrance of economic activities within the geographical borders. Since Plaza Accord in 1985 Japan has been massively investing overseas, making it the largest creditor nation on earth, by now 23 years in a row. While having a "low GDP", huge and ever-expanding international assets continue to serve national interests of Japan. Link:
Japan net external assets hit record $3 trln as top creditor nation| Reuters
Another myth is "high government-debt", well I might as well quote a link:
The Myth That Japan Is Broke: The Worlds Largest Debtor Is Now the Worlds Largest Creditor
Their financial prowess came from tech reserves, industrial capabilities, I suppose their global leadership in say electronics, semiconductor, nuclear science, rockets, tools, optics, E&M machines, robotics, materials science, heavy industries, etc., are obvious.
Strategic reserves, we may dig deeper and see. Imperial Japan, so was Nazi Germany, were destined to loose from day one, I don't think people make the same mistake twice.
As I have described in another thread, the international "food chain" is like a banker (with armed guards, of course) on the top reaping the ultimate fruits, industrial-capitalists in the second league, resources-rich lucky ones in the third, and then the rest of miserable. Japan is at the top within the second league, along with say Germany. It's time to move beyond GDP myth, it isn't even fair to compare a continental-sized ancient civilization to an archipelago-sized country, let' be pragmatic to analyze facts, and move on to catching up with Japan in the real terms.