How China Could Face Japan's 'Lost Decades'
China's economy is showing worrying similarities to Japan's economic troubles from the 1990s, including slow growth, a property market downturn, low bond yields, and an aging population. This has led Chinese consumers to save money rather than spend, which further slows the economy. While Japan experienced a "balance sheet recession" where people saved instead of borrowed, leading to low interest rates and government debt, China also faces a real estate crisis and a shrinking population. However, China has some advantages, such as continued private sector borrowing, more room for urbanization, a larger domestic market, and a strong tech industry. Experts hope China can learn from Japan's past mistakes and avoid a similar long period of economic stagnation.
Key Vocabulary
A continuous period of time during which something happens or continues to happen, often referring to a series of similar events or conditions.
Examples:
- The basketball team was on a winning streak, having won ten games in a row.
- After weeks of sunny weather, the region experienced a streak of rainy days.
- Her perfect attendance streak at work extended for five years.
Not growing or developing; without movement or activity.
Examples:
- The stagnant pond was covered in a layer of green algae.
- Without new ideas, the company's progress remained stagnant for years.
- The air in the closed room felt stagnant and heavy.
A feeling of intense irritation or annoyance, often caused by a repetitive or persistent problem.
Examples:
- He sighed in exasperation as the computer crashed for the third time that hour.
- The constant delays at the airport led to widespread exasperation among travelers.
- Her voice was filled with exasperation when she realized she had lost her keys again.
Falling or dropping quickly and suddenly.
Examples:
- The stock market was plunging, causing investors widespread concern.
- Temperatures were plunging rapidly as the cold front moved in.
- He watched the ball plunging into the net, securing the winning point.
Relating to or characterized by deflation, which is a general decline in prices for goods and services, often associated with a contraction in the money supply and credit.
Examples:
- The central bank introduced measures to combat the deflationary pressures on the economy.
- Consumers tend to delay purchases during a deflationary period, hoping for even lower prices.
- The country was experiencing a deflationary spiral, where falling prices led to reduced spending.
In a way that is extremely unreasonable, absurd, or excessive.
Examples:
- The price of the vintage car was ridiculously high, far beyond what most people could afford.
- He was ridiculously fast, finishing the race well ahead of everyone else.
- The instructions for assembling the furniture were ridiculously complicated.
Lacking in energy, speed, or responsiveness; slow-moving or inactive.
Examples:
- The economy remained sluggish, showing little sign of recovery.
- After a large meal, I often feel sluggish and want to rest.
- The old car was sluggish, struggling to accelerate quickly.
Regularly found among particular people or in a certain area; prevalent in a specific region or group.
Examples:
- Poverty is endemic in some rural areas of the country.
- The plant species is endemic to this island and found nowhere else.
- Mistrust of the government became an endemic problem after the scandal.
The basic monetary unit of Japan.
Examples:
- I exchanged my dollars for Japanese yen before my trip to Tokyo.
- The price of the souvenir was 500 yen.
- The strength of the yen impacts the cost of imported goods in Japan.
Spent a lot of money on something, often unnecessarily or extravagantly.
Examples:
- She splurged on a designer handbag after receiving her bonus.
- For his birthday, he splurged on a gourmet meal at a fancy restaurant.
- They splurged on a luxurious vacation to celebrate their anniversary.
A general feeling of discomfort, illness, or unease whose exact cause is difficult to identify.
Examples:
- A sense of economic malaise settled over the nation after the recession.
- He experienced a general malaise, feeling tired and unwell for days.
- The company was suffering from a corporate malaise, with low morale and productivity.
To make a choice from a range of possibilities.
Examples:
- Given the options, she decided to opt for the healthier meal choice.
- Many students opt to study abroad during their junior year.
- The company chose to opt out of the new regulatory agreement.
Made a problem, bad situation, or negative feeling worse.
Examples:
- The lack of rain exacerbated the drought conditions in the region.
- His existing anxiety was exacerbated by the stressful news.
- Poor communication among team members exacerbated the project delays.
A set of strategies, tactics, or plans that are commonly used in a particular situation or activity.
Examples:
- The successful startup shared its growth playbook with aspiring entrepreneurs.
- The political party adopted a new playbook for the upcoming election campaign.
- Experienced negotiators often have a well-developed playbook of techniques.
Increasing or growing at a very rapid rate.
Examples:
- The company's profits grew exponentially after the new product launch.
- The spread of the rumor intensified exponentially through social media.
- As the population increased, the demand for resources grew exponentially.
Relating to the structure of populations, including characteristics such as age, gender, income, and education.
Examples:
- The marketing team analyzed the target demographic to better understand their customers.
- Changes in the country's demographic profile have implications for future labor markets.
- The town's aging demographic presented challenges for local services.
The quality of being able to invent things or to think of new ideas and methods; creativity.
Examples:
- Her inventiveness was evident in the unique solutions she proposed for complex problems.
- The company prided itself on the inventiveness of its research and development team.
- The artist's inventiveness allowed him to create truly original works.
Pulled or twisted out of shape; misrepresented or altered in a way that is misleading.
Examples:
- The funhouse mirror distorted his reflection, making him appear tall and thin.
- The media coverage distorted the politician's statements, changing their original meaning.
- The loud music distorted the sound quality of her headphones.
Relating to an image, video, piece of information, etc., that circulates rapidly and widely from one internet user to another.
Examples:
- The funny cat video went viral within hours of being posted online.
- The marketing campaign was designed to make the new product launch go viral.
- The news story became viral after a celebrity shared it on social media.
The path followed by a projectile flying or an object moving under the action of given forces; more generally, a path or course that is followed.
Examples:
- The rocket's trajectory was precisely calculated to reach its destination.
- After graduating, her career trajectory quickly ascended.
- The company is hoping to change its current financial trajectory.