Two Huge Reasons Why China Today Is Nothing Like Japan In 1990

It’s popular to argue that the China boom is overhyped, and to say that this is all just redolent of Japan 20 years ago.

There are some similarities, but there are also huge differences.

Courtesy of Deutsche Bank, here are two:

First of all, the market today in China isn’t nearly as bubblicious as Japan’s was.

china japan bubble

Photo: Deutsche Bank

And also, China still was WAY more urbanizing to do before that trends over, which is one reason China can’t afford to let the yuan rise much, the way Japan did at the Plaza Accord.

china japan bubble

Photo: Deutsche Bank

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at research.businessinsider.com.au.