The Economic Battle: China's 'Lost Decade' vs Japan's 'Turning Point'

China's economic troubles are resembling Japan's decades-long problems, as it transitions from export-led growth to a more consumer-centric model. China is facing an ongoing real estate crisis, an aging population, surging youth unemployment, and trillions of dollars in local government debt, leading to a crisis of confidence among consumers and investors. Some experts warn that China could experience a "lost decade" of economic stagnation and deflation similar to Japan's in the 1990s. Meanwhile, Japan may finally be emerging from its long battle with deflation, as core inflation has risen for 16 consecutive months and the government sees signs of a turning point in its 25-year struggle. Investors have responded by sending Chinese and Japanese stock markets in opposite directions.