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  • Editor’s Picks / 17 September 2015 at 22:09 GMT

    China shock could derail Abenomics

    Nikkei Asian Review
    A new shock has hit Japan: China's economic woes. The Japanese economy is already showing signs of renewed weakness. The stockmarket has plunged even further than when Japan slipped into a technical recession after last year's tax hike. Unless Beijing reacts aggressively to revive its flagging economy, the consequences for Japan look far-reaching and uncertain. The bilateral relationship is a key pillar of the Japanese economy. The Bank of Japan can help, but there is a limit to what monetary policy can do in the face of such a huge shock. Ironically, China's troubles, which may so far have afforded Prime Minister Shinzo Abe some schadenfreude, might derail his flagship economic project, Abenomics.
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