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This article is about increased foreign direct investment to China despite its weakening economic growth. Not only does China receive inflowing FDI, but it also invests outflowing FDI into other places such as Japan. The investment comes even as China's economy show signs of slowing from the stellar growth rates of years past as the government looks to shift the emphasis to structural reform rather than growth for its own sake. One pillar of the reform drive is to make the economy driven more by the service sector and consumers, ending its traditional reliance on investment and exports for growth. The obvious reason why foreign-based MNCs want to invest into China is because of increasing sales or decreasing their profits. The question is what kind of pull factors China has to attract such high levels of FDI. Stable economic environment, political environment, low labour costs are primal reasons.

This article talks about the protests of China against the Japanese goods. It states that both countries are economically independet, however China adores Japanese brands. It all started out with Japan having their factories in China, since theres a lower production cost. Now that China protests it will move the firms into other countries, such as Thailand.

Japan's trade deficit nearly doubled in October, as growth in imports outpaced robust increases in exports to the U.S. and China, the Finance Ministry reported Wednesday. A weakening in the Japanese yen over the past year has helped exports, but it has also increased the cost in yen terms... This is the importance of looking at **how** payments balance. Though Japan has seen some significant increases in exports, most notably in the vehicle and chemical industries, too much money is still leaving Japan. Part of this may be due to the fact that many Japanese firms depend on foreign manufacturing. The government has plans to revitalize a large manufacturing sector of Japan, but the question now is how quickly and how much will it help?

This article discusses the hard empirical evidence, arguing that, in fact, Japan is behaving rather responsibly and that other strong economies have themselves benefited from undervalued currencies. That said, it is true that politicians' short time horizons often lead to stealthy policy and large swings in exchange rates. Economists should therefore aim to promote longer-run cosmopolitan interests rather than shorter-run nationalistic agendas where possible.

Japan posted its biggest October trade deficit on record, as a revival in exports to the U.S. and China was overwhelmed by the nation's soaring costs for imported fuel in the wake of the nuclear industry's shutdown.

Because of the decreased amount of work opportunities the unemployment rates go higher. That is bad enough for any country, and even worse for a country like China who are dependent on their production and export. The scarcity of work opportunities get bigger, and creates competition on the market. This will contribute to a poorer population since the competition gets higher and people then work for less money.