Question

In: Economics

how do you think whether china or Japan holds the edges in the modern time? especially...

how do you think whether china or Japan holds the edges in the modern time? especially economy, national security ?

Solutions

Expert Solution

China has the world's second largest GDP and is expected to grow more than several other countries. China grew by 6.8% in 2017 whereas Japan only grew by 1.5% given its small size. Japan and China both have manufacturing expertise and are export oriented. However, China has an edge in more exports as compared to imports and less external debt with much more reserves in its economy. China invests a lot more and saves lot more as compared to Japan, thus more investment is generated in China. Thus in terms of economy China holds an edge.

China has a communist leader who can take quick action without any deference in terms of military action. In addition it holds a vast arsenal of military weapons. In comparison Japan is a relatively small country which has to heavily depend on military rather than manpower as compared to China. China holds the edge mainly because of the manpower size and strategic investments in weapons. In comparison Japan can't compete with a major giant who spends 1.9% of its GDP on defense whereas Japan only spends 0.9% of GDP.


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