If the economists cited by Reuters are right, China's travails could send Japan into a mild recession. These economists say that, depending on the severity of any slowdown in China, it "could knock 1-2 percentage points off Japan's annual growth." But the immediate impact is just that: just the immediate impact. Looking further down the horizon, Japan's economy will be hurt by a lasting deceleration in Chinese growth, the techno-war and geopolitical tension between China and the West that has led to de-risking, and Chinese intellectual property theft from Japanese firms located inside China.

For details, see https://richardkatz.substack.com/p/how-chinas-troubles-could-hurt-japan

Richard Katz