| China has got great achievement in economy since the Reform and Opening in 1978, the annual-average true growth is over 7%. The GDP per capita of China is 6000$ in 2012, which is only 220$ in 1978. People would like to compare Chinese with the Japanese growth after the Second World War. After all, Japanese economy has been in Stagnation since the stock disaster in 1991. As China is familiar with Japan in real estate bubble, exchange rate appreciation and foreign currency reserve, the question will be “Will China repeat the Fall of Japanese Economy? Which is caused by economy bubble burst and end in long stagnation in economy.” First, we will reference the opinion in three topics: Will Chinese repeat the Fall of Japanese Economy, the reasons for the Fall of Japanese Economy and the comparison between Chinese and Japanese economy. In the following two parts, which are the cores of the article, we will compare Chinese with Japanese economy. The first part is manly the economic indicators concern economy development, economic openness, economy bubble, environmental factors, these are all direct causes of the Fall of Japanese Economy. The second part is the comparison of Economic institution of the two countries. We find out the two countries have similar macro economy policies, which stimulus the economy with export strategies and economy plans. But, the corporation institutions is definitely different, the diversification of Chinese corporation institutions seem safer than Japan. Unfortunately, the financial system of China is weaker than Japan, the bank system is more important in China than in Japan, but its efficiency and fairness is questionable. In the final part, we concluded that Chinese will not repeat the Fall of Japanese Economy, the economy of China is less developed and the environment. There are also problems for the economy reformers such as the speed of urbanization and the financial reform, which may cause economy bubble burst and risk. |
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