As US-China tensions continue to reshape the global financial system, Japan – the world’s third-largest economy – is achieving strong growth and record FDI levels by incentivizing businesses to diversify away from China. This June, the Nikkei index posted its highest gain in over three decades, rising by 20% from the start of the year. This is an incredibly positive sign given that Japan is still in the early stages of its post-Covid rebound, having lifted strict border controls in October 2022. Besides a secure alternative to China, Japan offers businesses a world-leading R&D ecosystem, fuelled by government subsidies aimed at transforming major cities into global start-up hubs.
By 2036, one-third of Japan’s population will be aged 65 and over. As a result, its government is investing in healthcare advances and digital progress encompassing