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China and Japan’s Entertainment Sectors Reflect Economic Struggles Amid ‘Japanification’ Fears


China’s long-term bond yields have fallen below Japan’s for the first time, a momentous economic shift indicative of growing deflationary pressures.

In the entertainment sector, Japan’s location incentive scheme, which offers reimbursement of up to 50% of qualifying expenditure in the country, with an upper limit of JPY1 billion ($6.66 million) on each disbursement, is now operational. The entertainment sector in Japan is also benefiting from structural reforms under the government’s Grand Design and Action Plan for a New Form of Capitalism, aimed at improving labor conditions and fostering global competitiveness​. In China, persistent deflationary risks are driving a reliance on digital platforms and government support, while Japan’s gradual economic recovery is mirrored in its steady structural reforms in the arts.

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