Can China avoid becoming Japan? In a few decades’ time, we may be talking about how today’s up-and-coming economic superpower is starting to look like the Land of the Rising Sun and Falling Expectations. But before that, another country is first in line: the Republic of Korea.
Despite differences in politics and size, China can be seen as representing South Korea‘s past and Japan its possible future. Like China, Korea prospered by picking the low-hanging fruit of globalization; its growth was driven by the rural-to-urban migration of its population and the successful pursuit of export markets using low-wage labor. And as in Japan’s case, Korea’s exports started out with a less-than-savory reputation — such as when Hyundai cars first reached the United States — but eventually became accepted global brands. But after Japan exhausted the economic engines of urbanization and low-cost exports, it stopped growing — and now may be slipping into recession again.
Filed under: Asia Tagged: Asia, chaebol, China, Economy, Export, exports, Hyundai, Japan, Korea, labor wages, LG, Politics, recession, Samsung, South Korea, stock market, trade, United States, urban migration
