Is Japan treading the same path? 2
A lot of the economic news coming out of Japan in recent days has been good news.
However, there are also many signs that the Japanese government and business leaders have not learned much from 25 years of economic decline.
Toshiba is still struggling to sell its chip business to survive.
During Japan’s most prosperous period, officials tried to support growth by directing finance to priority industries, protecting new businesses and requiring private companies to work.
Continuous intervention in the economy has caused financial resources to be allocated inappropriately, causing companies to suffer, ineffective operations are still maintained and dragging down the growth potential of the economy.
Toshiba wants to sell its memory chip business
However, the Toshiba deal once again turned in this direction.
Officials’ intention is to keep chip manufacturing technology in Japanese hands and preserve jobs.
In the past, they made such decisions many times.
They want to keep Japan competitive in the LCD screen manufacturing industry.
The story of Sharp – another Japanese electronics giant is completely opposite.
Sharp TVs are sold at an electronics store in Taiwan (China).
The problem here is not that Japanese leaders are not as good as foreigners.
On Bloomberg, author Michael Schuman said that the Government’s presence is affecting the prospects of Japanese companies.
Japan is still paying the price for this over the past 20 years.
