The Chrysanthemum and the Eagle

The Chrysanthemum and the Eagle
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Whether in the form of the ongoing automotive wars, books and films such as Michael Crichton's Rising Sun, or George Bush's ill-fated trip to Japan in 1991, frictions between the United States and Japan have been steadily on the rise. Americans are bombarded with images of Japan's fundamental difference; at the same time, voices in Japan call for a Japan That Can Say No. If the guiding principle of the Clinton administration is indeed new values for a new generation, how will this be reflected in U.S.-Japanese relations?Convinced that no true solution to U.S.-Japanese frictions can be achieved without tracing these frictions back to their origin, Ryuzo Sato here draws on a binational experience that spans three decades in both the Japanese and American business and academic communities to do just that. In an attempt to bridge the communication gap between the two countries and dispel some of the mutual ignorance and misunderstanding that prevails between the two, Sato addresses the following questions: –Is Japan really different? –Has America's sun set?–How have conflicting views on the role of government affected U.S.-Japan relations?–What are the real differences in American and Japanese industrial policies?–What is the anatomy of U.S.-Japanese antagonisms?–What effect has the collapse of the bubble economy had on relations?–What is Japan's future course? Is it truly a technological superpower? Can it avoid international isolation? An incisive personal look at one of the most important political and economic global relationships, written by a major player in the world of international business and finance, THE CHRYSANTHEMUM AND THE EAGLE provides a readable and engaging tour of U.S.-Japan relations, past and present.

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Ryuzo Sato. The Chrysanthemum and the Eagle

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THE CHRYSANTHEMUM AND THE EAGLE

CONTENTS

PREFACE

ONE. THE RISE OF REVISIONISM. The “Hawks” and the “Chrysanthemum Club”

Is Japan Really Different?

America’s Sun Has Not Yet Set

TWO. CONFLICTING VIEWS OF THE ROLE OF GOVERNMENT. Economic Strength as a National Security Issue

The Japan That Can Say “No”

The Secret of “Made in Japan”

THREE. THE ANATOMY OF U.S. –JAPANESE ANTAGONISMS. American Misconceptions about Japan

America: Living up to Appearances

FOUR. IN SOME WAYS JAPAN REALLY IS ODD. Manufacturing Is Not the Only Economic Activity

What Causes the Disparity between Japan’s Prices and World Prices?

Emotional Borders in a Borderless Age

FIVE. IS A PAX JAPONICA POSSIBLE? The “Amerippon” Concept

The Fading Reputation of Japanese Management

Japan: The Bubble Superpower

The End of the Bubble Economy

SIX. JAPAN’S FUTURE COURSE. Is Japan Really a Technological Superpower?

Can Japan Avoid International Isolation?

SELECTED BIBLIOGRAPHY

INDEX

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By adopting exactly the same policy toward Japan that it has toward its European trading partners, America has incurred a huge trade deficit and run up against an invisible wall that surrounds the Japanese archipelago. Under the circumstances it is not at all strange that Americans have concluded that there is something different about Japan and have decided to rethink their views. Reacting against this new U.S. position, some in Japan have argued that it is America that is different. Certainly, America would appear different from the Japanese perspective; this sort of nationalistic sentiment is quite understandable. But that does not mean Japan can force its rules on the rest of the world. And to believe that America ought to be the one to change is not only impractical but irresponsible. It is unreasonable to expect Americans to understand—let alone put into practice—such Japanese concepts as group solidarity or corporate groupings or to expect them to behave like the employees of Mitsubishi who will drink only Kirin beer. For better or for worse, the postwar world plays by America’s rules. That comes with the territory of world leadership, a subject I will discuss in more detail later.

Does Money Give Anyone the Right to Buy Someone Else’s Soul? Economic activities and trends inevitably have their own rules. Economics is the science of finding those rules. The problem is that sometimes an economy operates according to the rules and sometimes it does not. When the latter happens, measures must be taken to counteract events or trends that run counter to expectations.

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