Japanese chip companies are tapping billions of dollars and collaborating with foreign firms as part of new government policies that look outward.The New York Times reports that Japanese chip companies are investing billions of dollars and collaborating with foreign firms in line with new government policies that focus on international expansion. This move is in response to China’s successful use of industrial policy to grow its economy and support green manufacturing, which has sparked a competitive race among nations to protect and develop their own domestic businesses.

This is not the first time that concerns about a rising Asian power have led to government intervention in the biggest free-market economies. In the past, it was Japan that caused unease, with books like Michael Crichton’s 1992 thriller “Rising Sun” and nonfiction titles warning of Japan’s powerful government trade ministry and its impact on the global economy. A 1990 survey showed that nearly two-thirds of Americans saw Japanese investment in the United States as a threat to American economic independence.

However, Japan’s economic decline after the collapse of real estate and stock market bubbles in the 1990s proved that these fears were unfounded. Now, after a period of stagnation, Japan’s economy ministry is implementing a multibillion-dollar industrial policy to revitalize the economy and regain its position as a leader in technology and innovation.

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