As I reported seven years ago in this article for Chief Executive magazine, Japan has pursued a strategy of moving into very specialized niche products to stay ahead of China’s raw manufacturing capacity. Japan makes the highest technology components that go into much of China’s exports. It makes the sensors and gauges and batteries that most global supply chains require.
The New York Times has consistently reported the demise of Japan’s economy and it does face a demographic challenge of an aging population. But the heart of Japan’s business and economic strategy is proving so successful that even the Times today acknowledged it in this article. It’s time to stop the narrative of the poor, struggling Japan and recognize that it is one of the world’s most sophisticated economies.
