Weak yen constrains Japan’s economic security strategy

(Ty Tan – East Asia Forum) Japan’s economic security strategy seeks to reduce dependence on China and strengthen alignment with the United States, but macroeconomic constraints complicate this shift. Yen depreciation, driven by Japan’s debt burden and low interest rates, reinforces export reliance on China and raises the cost of supply chain diversification. Combined with demographic decline, these pressures widen the gap between Japan’s strategic ambitions and economic capacity. Japan needs a more selective approach prioritising economic security in critical sectors and diversification into Southeast Asia. – Weak yen constrains Japan’s economic security strategy | East Asia Forum