Why China Can't Copy Japan's Economic Miracle

If you look purely at the numbers, Japan should have collapsed decades ago. It holds the highest debt-to-GDP ratio in the developed world, hovering around 250%. By contrast, China’s official central government debt looks completely manageable. Yet, global economists lose sleep over China’s debt, while largely ignoring Japan's massive ledger. Why? Because not all debt is created equal. This video breaks down the fundamental difference between the two largest economies in Asia. It explores the financial alchemy of Japan’s "closed-loop" domestic debt, and the terrifying, hidden web of China’s Local Government Financing Vehicles (LGFVs) and real estate shadow banking. It is a story of how a country borrows money, who it borrows it from, and the brutal demographic clock ticking behind both empires. Footage: Shutterstock Inquiries: [email protected] Brought to you by the Behind Asian Team.