As close neighbors, China and Japan are highly interrelated. The two nations not only enjoy similar culture and form a solid economic tie, but also share the same growth pattern and development strategies. The only difference may be that Japan seems to be one step ahead. Based on this notion, a widely accepted view claims that China is doomed to follow Japan’s path of late 1980s, fail in igniting its growth engine and be trapped in a “lost decade”.

After a decade’s double-digit impressive growth, resources to support the fascinating growth performance are approaching the bottom. This is like Japan years ago before the curtain had fallen on the prosperous feast. Critics dimming the future of China may be right on almost all conditions when compared with Japan. Yet China has an advantage as well: they could learn from Japan’s mistakes. [More]