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JAPAN MAY LAG BEHIND CHINA IN DIGITAL TECH

  • Writer: By The Financial District
    By The Financial District
  • Jan 21, 2021
  • 2 min read

As China likely became the only major country to achieve positive economic growth in 2020 amid the novel coronavirus pandemic, fears are mounting that Japan will lag further behind the world's second-largest economy in digital technology, according to Kyodo News.

Some foreign affairs experts have adopted an optimistic view on China's rise in the digital field, saying it would provide commercial opportunities for Japanese companies, many of which have been bolstering their business relations with Chinese firms.


Others, however, have warned that unless Japan makes serious efforts to promote its own digital competency as a national strategy, the world's third-biggest economy could be swallowed up by China's more influential platform in the not-so-distant future.


Although Japanese Prime Minister Yoshihide Suga has pledged to make digitalization a top policy priority since he took office in September, he has yet to yield visible results as he has been compelled to concentrate on taking steps to contain the virus crisis.


China's economy is expected to "gain momentum in 2021 with domestic demand bouncing back from the coronavirus shock," probably allowing the Communist-led nation to spend "huge money" for developing digital technology, a diplomatic source in Beijing said.


In contrast, Japan's economy "may not recover sharply," as the virus has rapidly spread in the past few months at home, forcing Suga's government to issue a state of emergency for several regions to restrict economic activities on a mass scale there, he said.


The increase in new infections peaked in China in late February 2020 on the back of the country's hardline "zero corona" policy approach, but Japan's request-based "with corona" policy has apparently failed to curb the virus outbreak so far.


While Japan might struggle to prop up its virus-hit economy this year, China is set to try to strengthen its digital infrastructure and capitalize on it as one of the drivers to expand its exports, a key engine of economic growth, the source said.


"Even now, Japan cannot hold a candle to China in terms of digital technology. If Japan cannot catch up, the course of its digital transformation could be dominated by China," he added.





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