The Japanese economy is mature in the sense that the material needs of the people have been satisfied. Japan’s attainment of economic maturity has coincided with the first flush of youth in a number of new Asian economies. The Asian New Industrial Countries (NIC) are already replacing Japan as suppliers to the West of black and white TV sets, and textiles, while beginning to challenge the Japanese position in steel and shipbuilding. From the point of view of the NICs the surpluses with the West and the deficits with Japan have cancelled each other out to produce a reasonable overall balance of trade. In money terms, the evidence of the NICs export successes comes from Japan’s own statistics. The successes of NICs in penetrating the Japanese import market for manufactured goods raise questions for Japan and for its advanced industrial trading partners. Japan has been quick to seize the opportunities, perhaps quicker than the NICs themselves might have wished.