Cross-cultural communication （161）　

161) “Nippon inside”
I've heard this phrase somewhere before. That's right. It's the 140)Intel inside Cross-cultural communication (140) phrase we talked about in the 140th installment of “Cross-Cultural Communication.” The person who coined this phrase is Dr. Ulrike Schaede, a professor at the University of California, San Diego (she earned her PhD in economics from the University of Marburg in Germany).

Professor Schaede wrote an article with this title in the Analysis section of the January 7, 2025, morning edition of the Nikkei newspaper. The gist of the article is that the Japanese economy is not as bad as the overly pessimistic Japanese themselves think, but rather that it is optimistic. The state of Japan, which has been referred to as the “lost 30 years” since the collapse of the bubble economy, continues to this day, and there is a domestic consensus that Japan will never recover due to its declining birthrate, aging population, and resulting poor productivity. This makes one feel as if they have been tricked by a fox.

According to Professor Schade, over the past 30 years, Japan's industrial sector has shifted its focus from the downstream to the upstream of the global value chain. Specifically, while there are no prominent “Made in Japan” labels, Japanese materials and components are embedded in various parts of mobile phones, computers, automobiles, and airplanes used worldwide. She referred to this as “Japan Inside.” What a wonderful name! (Although it does feel a bit like a copycat...)

Professor Shade has also come up with another interesting name for this strategic reinvention of Japan's global value chain shift toward the upstream sector: the “Mae-no- Umi Strategy.” “Mae-no-Umi” refers to a sumo wrestler known for his diverse techniques, earning him the nickname “the department store of techniques.” Professor Shade seems to be an economist well-versed in Japan's national sport, sumo. I was both surprised and amused.

Thank you, Professor Shade, for giving Japan hope and confidence at the start of the new year.

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