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China has the world's largest population (1.3 billion people), immense fuel and metal resources and 140 million hectares of agricultural land. Since the 1970's the government has moved the economy from a highly centralised command type with detailed, inflexible planning to a decentralised, incentive-based system with only indirect general planning and has allowed private enterprise and foreign investment (for export production). The large trade surplus, rationalisation of industrial and agricultural production and massive increases in infrastructural investment and private consumption have led to high growth rates. Japan has a strong economy based on a comprehensive education system, highly developed infrastructure and well organised industrial combines (kerietsu) that vertically intergrate production, invest heavily in capital equipment and worker training and sacrifice profits for greater market share (aided by long term bank lending). Japan specialises in high value goods (machine tools, cellphone components, industrial ceramics, motor vehicles and lorries, carbon fibre, titanium, semiconductor materials and industrial plant/equipment) that enjoy large shares of the world market and the economy is not nearly as dysfunctional as the benighted Anglo-Saxon press or the Japanese government would have you believe.

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Q: Why China and Japan have a strong economies?
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