There was a time when Japan was an economic powerhouse that rivaled even the United States in terms of economic production. This was owed to both their technology and manufacturing sectors creating a vibrant and efficient industry to drive the Japanese economy. When combined with various uniquely Japanese social and corporate structures it created a powerhouse economy that in the 80s the rest of the world was rushing to imitate. Then it all imploded as a result of economic policies started in the 70s that created a bubble economy.

Since then the Japanese central bank has essentially doubled down over and over again on the same policies that created their bubble economy, while the central government has allowed a huge chunk of their industry to manufacture their goods in China. Akin to the United States, the Japanese financial and corporate elite were eager to sell out Japan for greater profit margins as the nation and its people struggled.

One would think at a certain point the government would consider tackling the actual problems facing the Japanese economy, but until the Corona Virus pandemic wrecked imports from China, as reported by Bloomberg, this was not the case.

To remedy the problem the Japanese government is setting up a $2 billion stimulus package to aid companies undergoing the process of returning manufacturing to Japan, also reported by Bloomberg. With another $23.5 billion aimed to help companies move their factories out of China at the very least.

This move came not as a measure to increase the strength of the Japanese economy, but after a 14% decrease in imports from China following their lockdown. That this problem even existed as the two nations continue to have an antagonistic relationship with one another is astounding. Imagine if the US allowed it’s corporations to offshore manufacturing to Iran or North Korea. At best it is an act of gross negligence at worse an outright betrayal of the nation’s citizens.

With rising regional tensions, Japan should consider themselves lucky they woke up to the risks of globalism as a result of a plague and not a cold or hot war. With their economy returning the very elements that made it an economic powerhouse from the 60s through the 80s we could be witnessing the beginning of the next economic boom in Japan.