Comparing the Economy Between China and Japan

Abstract

The purpose of this paper is to acquire the experience from Japanese economic recovery and bubble bursting history after 1946 and to better expect future economic development of China. This research compares the similarities between China and Japan that are based on things such as economic growth, exchange rates, labor force and industries when measures China’s and Japan’ differences related to development stages, political and economic systems, etc., analyzing some important data including exchange rate, debits, enterprises, etc. The result shows that the economic growth potential, financial policies and economic system of China have significant advantages compared to Japan. To sum up, Chinese government is supposed to regulate the financial system and government policies to avoid financial bubble like Japan’s, and many aspects of China evidence that Chinese economic development has development potential in the medium term.