Bullet points of How China and Japan’s brotherhood of steel – forged by Deng Xiaoping – ultimately corroded

Bullet points of How China and Japan’s brotherhood of steel – forged by Deng Xiaoping – ultimately corroded
- The streets of China have undergone significant changes, with sleek electric vehicles (EVs) from Chinese brands dominating the roads, while Japanese models have seen a decline in sales.
- Nippon Steel has announced the end of its 20-year joint venture with Baosteel, marking the end of a relationship that began nearly 50 years ago and reflects China's rapid growth in manufacturing.
- China has surpassed Japan in areas like trade and automobile exports, and has transformed itself from the 'world's factory' to the 'world's market'.
- Chinese carmakers are now highly formidable and capable of iterative innovation, while Japanese carmakers have been slow to respond to growth in the EV market, resulting in poor performance in China.
- The Nippon Steel break-up shows China and Japan's economic relationship has shifted from one of teacher and student to a more equal or competitive footing.
- China has become the world's largest steel producer and consumer, and is now charting its own path and expanding overseas, with Baosteel targeting overseas markets in the Middle East, Southeast Asia, and Europe.
- The country's Belt and Road Initiative aims to establish international 'green steel' plants, including a joint venture in Saudi Arabia, and has invested US$1 billion to acquire a 50% stake in the project.
- The expansion of Chinese manufacturing supports the continuation of globalisation, but foreign investors are increasingly choosing to depart due to geopolitical tensions and complex security measures.