Japan has fewer children; China is Australia’s largest trading partner

May 5, 2007
By Ken Worsley

Two seemingly unrelated news events hit yesterday:

Japan child numbers at record low from the BBC.

China overtakes Japan in trade with Australia from ABC News Online.

In 2006, Japan experienced its 26th year in a row with the number of young people declining as a percentage of the population. Amidst much hand-wringing over what to do, the government of Japan has steadfastly done nothing about what has become a serious demographic crunch. As the BBC puts it:

The Japanese government has pledged to bring in policies to make it easier for women to have children, by improving child care and maternity rights for working women.

I seem to have been reading that quote for the past 5 years. So, who’s set to fill the gap that Japan seems determined to create? According to Commsec chief economist Craig James:

Japan became the manufacturer to the world, particularly of electrical and electronic items, but has now passed that baton to China. Japan still draws our iron ore and coal but China has also taken over that principal role from Japan.

That would be a natural progression for the Japanese economy as it moves into a services-based economy, but that is not going smoothly either. With labor productivity in Japan’s service sector at 60% of US levels, is Japan effectively making the transition? And more importantly, will there even be a next generation to take the baton?

And, if they are there to take the baton, what are we to make of the statement about to be issued by the Education Rebuilding Council:

“Please turn off the TV when the infants are breastfeeding or eating meals,” says a draft of the proposal, seen by The Asahi Shimbun.

In particular, parents should instill in their children the old-fashioned notion of the “beautiful Japanese mind”, which is manifested in polite behaviour, deference to elders, telling the truth and devotion to the nation.

Filed Under Business, China, Japan