Expert: Decoupling disastrous for Japan

A prominent Japanese economist has issued a stark warning against economic decoupling from China, characterizing such a move as potentially disastrous for Japan’s economic future. Hidetoshi Tashiro, serving as chief economist at Japan’s Infinity LLC and CEO of Terra Nexus Project Management Services, emphasized that China represents an economic partner that Japan fundamentally “cannot decouple” from due to deeply intertwined supply chain dependencies.

Tashiro’s analysis highlights China’s unique position as the world’s most extensive and comprehensive production ecosystem, making sustained cooperation not merely beneficial but essential for maintaining Japan’s economic vitality. The economist presented a grave assessment that deliberately undermining this established economic structure would constitute an act of economic “suicide” for Japan, given the catastrophic disruption it would cause to Japanese industries and trade networks.

The warning comes amid ongoing global discussions about supply chain diversification and economic realignment. Tashiro’s comments serve as a counterpoint to those advocating for reduced economic interdependence with China, arguing instead that the existing manufacturing and supply infrastructure between the two nations has become too integrated and too vital to dismantle without severe consequences.

This perspective underscores the complex reality facing many advanced economies that must balance geopolitical considerations with economic practicalities, particularly when dealing with a manufacturing powerhouse like China that occupies a central role in global supply chains.