PM Abe’s just got overwhelmingly re-elected and the Japanese index is at its best for the last 10 years.
The implication of a rising Japan are multiple. It will be definitely another centre of power contrasting China and especially North Korea.
One of the major targets of PM Abe is to change the Constitution that does not allow Japan to have an offensive army (and for all pacific purpose, Japanese army budget was already the world 7th military budget in 2015).
And it is already aligned with India (the other anti-Chinese superpower in Asia).
Definitely North Korea has started an arms race in Asia and Japan will keep pace.
And if you like the movies like Terminator…..look no further than Japan. It is the most advanced country robot-wise and its army, for how well trained and well equipped it is, is just a fraction of the size of the Chinese one – due to population.
It will be able to inflict pain to China – but never win in a confrontation. Unless you have Terminators and a long view. Japan is one of the few democracy that have a long view notwithstanding the election cycles.
On the economic side – there are still issues – but Japan is one of the better positioned countries with continuing QE.
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