China needs major reforms to avoid ‘Japanification’

As the third plenum of the Central Committee of the Communist Party of China approaches in July, one of the challenges that the country’s economic policymakers face is to prevent China's economy from sliding into the Japanese malaise of the 1990s. One advantage that China has over Japan, as pointed out by NTU economist Tan Kong Yam, is that while Japan in the 1990s was dominated by legacy industries, such as steel, cars and consumer electronics, China is at the forefront of many industries of the future, such as EVs, batteries and other green energy industries, and its internet platform companies – which Japan never had – are world-class.

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