ABSTRACT
The Chinese region was playing a declining part in Japan's overseas investment strategies, which increasingly directed its foreign direct investment (FDI) towards its major markets in the West. While Japan, as one of the world's great economic powers, is of a course a significant foreign investor in the region, it is not a dominant one. Japan's role as a supplier did not experience the same precipitate decline as its investment in the region, but neither did it compensate for it. If Japan had indeed triggered the initial take off of the region and masterminded the 'Asian Miracle', then it might perhaps seem reasonable to presume that any recovery from the crisis would depend on a revival of Japanese initiative, markets and investment. A stream of writings have argued the lead role of Japan in Asia's prospective and actual economic development. Japanese capital and technology are stitching together the disparate economies of Asia, integrating them into a multilevel production alliance.
