How can Japan fix its economy and return as an economic power again?

Question:

Can it retake China as number 2 after USA?

Answer:

Japan economy can only improve if the world economy improves. Japan's economy is based on exports. If the economy of other nations are down and people are not buy products whether it's domestic or foreign made products, then the demands for Japanese products is going to be down, too.

China is an economic power only because it has one of the cheapest cost of labor on earth. This allows them to make products at such low cost that other nations usually cannot compete. But China has a growing domestic problem that no one in the Communist government knows how to cure - widening gap between the rich and the poor where the poor makes up nearly 90% of China's population. When a nation has such as disparity in wealth, over time it leads to a revolution. And when that happens, China's economy will be in ruins.