2 The automobile diffusion ratio for China has also reached about the same level as that of Japan in the 1960s, which indicates a consumption boom owing to improvements in income level. Based on such simple comparisons, China’s high economic growth is likely to continue for the time being.
However, one of the important prerequisites for maintaining high growth is to avoid the formation of a bubble. The authorities in China are well aware of this. I would then like to share my understanding on how the bubble was formed in Japan in the latter half of the 1980s. It was a phenomenon that arose from the complicated interaction of the following factors.