Arrietty in East Asia (9-1-10)

I saw “The Borrowers Arrietty,” an animated film by Studio Ghibli, at a movie theater in Tokyo two weekends ago. I envy the small bodies of those pygmies in the film; if I were Arrietty, a melon would become a much greater deal. On the other hand, Arrietty wouldn’t seem tasty to real me by any cooking method.

I wish Japan had a commensurate population to its size. The living standard of the nation would be more sustainable by the same load of exports. Anyhow, a host of grandpas and grandmas whose brains suffer from dementia, roaming around disoriented, wouldn’t come in the market for international marriage. [nonsensical]

Unfortunately, the situation is converse. As the yen hit the record high of 83, exporting goods remains difficult.

In the ’80s and ’90s, the production of compact automobiles sporting the utmost comfort, and high-quality electronics goods, like audio systems, accrued according to Japan’s caliber while greatly helping open the door to the country’s economic boom. Symbolized by the rising sun, Japan saw the summer solstice only once. Yet thereafter, it’s now preparing for winter while a snowballing number of retired protagonists in the economic heyday appears to be putting out a sense of being endangered. [??]

When home-oriented machines that look satiated in quality satisfy buyers, often coming into eyes and ears are those of Samsung. With the well-performing airline hub Incheon, South Korea, the weakness of the currency, won, champions the yen.

It was written early this year that the total amount of international freight at Incheon airport already surpassed that of Narita. Furthermore, the airport is slated to grow five times in size, double its runways to four, breed the annual customers to 100 million, and increase flights to 480 thousand.

Meanwhile, China’s economy, with its 1.3 billion people, has unseated the second-highest status of Japan. Leaving alone continuous nagging from other developed countries to appreciate the renminbi, a situation which goes with membership in a group of countries with least expensive exports and labor force, emboldened by rich resources like rare earth metals, China sees the enthusiasm of its engineers for mastering skills and technology of front-runner countries dwarfing the presence of Japan. Surely, China is drawing the attention of the US more than ever.

Despite the widening wealth gap, the Chinese upper class has money and their traveling is extensive.

Take a look into downtown areas in Japan. Flocking amongst electric appliances on display are scores of Chinese tourists. Considering that the issued application sheets for receiving a refund in eco-points after purchasing environmentally friendlier machines are losing momentum to pique potential buyers’ impulse while supplies are fulfilling their demand, resorting to tourists from China is an alternative strategy. Not to mention that an announcement of putting off the closing of the eco-points scheme may have given another encouragement to Japan’s market, bumping up the weight of the tourist industry is a way to run the country’s economy more smoothly.

In line with this idea, it’s a convincingly lucrative arrangement that has been already decided to lower the required minimum annual income of Chinese tourists to 60,000 yuan from 250,000 yuan.

In addition, the more flights to Japan airlines make available, the more Chinese will come to the country. While the transportation minister, Mr. Maehara’s recent verbal pledge to develop the medical tourist industry to treat visitors to medical facilities at the meeting between China, South Korea, and Japan, remains a question, there are pieces of good news. One is the inauguration of the fourth 2,500-meter runway at Haneda airport, thus increasing the capacity for international flights. Another is the growing number of Low Cost Carriers. These strategies lead the government to project a tenfold increase in Chinese tourist visas to upwards of 16-million Chinese households. (More than one million Chinese people toured Japan last year.) And there is All Nippon Airways’ determination to double its customers and increase the freight amount sevenfold in sales. This mindset sounds ambitious in the economic overcast of Japan.

Still, Japan has concerns in China.

Although rare earth metals imported from China are the mainstay of electric products (as the reliance ratio rises up to 90%), Japan suffered a 70% drop through the July-September period from the same period last year. And, to provide China with advantages could also mean to back its repression on Tibetans about the autonomy issue and the authoritarian state of North Korea when China doesn’t stop aiding it.

Despite these, well-heeled Chinese tourists can possibly give Japan suffering from such an adamant yen a bit of salvation. The relatively short distance between the two neighboring countries is a boon. While universal views should be respected, signing up mutually beneficial deals with China will help Japan make a living.

(Give it rare earth metals, please.)