As tensions between Tokyo and the Chinese mainland flare up, experts caution that recent statements by Takaichi may take a toll on Japan's economic outlook. Meng Xiaoxu, a researcher at the Institute of Japan Studies of the Chinese Academy of Social Sciences, highlights the risks involved.
Meng forecasts that Japan's GDP could shrink by 0.8 percent to 1.5 percent within the next year if trade frictions persist. "With the Chinese mainland as Japan's largest trading partner, any sustained drop in exports would have ripple effects across industries," he said.
The researcher notes that a 20 to 30 percent slump in Japanese exports could be enough to trigger a measurable economic downturn. Key sectors, from automotive to electronics, rely on smooth trade flows to sustain growth and employment.
Analysts now urge businesses and policymakers to monitor the situation closely. As global supply chains remain intertwined, even small shifts in exports can resonate far beyond national borders, affecting markets and consumers worldwide.
Reference(s):
Takaichi's wrongful remarks adding pressure to Japan's economy: Expert
cgtn.com
