It's already had spillover in Canada with the layoffs and restructuring at Scotiabank [0].
We'll probably see something similar to the late 80s and early 90s when foreign assets owned by Japanese companies and funds were sold off to better balance their sheets.
It'll probably be somewhat similar to the experience Japan, SK, Malaysia, and Thailand had in the 90s imo. China today is in a similar boat to SK, Malaysia, and Thailand back then anyhow.
With the right leadership and investment in human capital, it can pull an SK, else it's "stuck" like Thailand (not really a bad thing - the average Thai in 2023 has a better QoL than the average Chinese in 2023).
We'll probably see something similar to the late 80s and early 90s when foreign assets owned by Japanese companies and funds were sold off to better balance their sheets.
It'll probably be somewhat similar to the experience Japan, SK, Malaysia, and Thailand had in the 90s imo. China today is in a similar boat to SK, Malaysia, and Thailand back then anyhow.
With the right leadership and investment in human capital, it can pull an SK, else it's "stuck" like Thailand (not really a bad thing - the average Thai in 2023 has a better QoL than the average Chinese in 2023).
[0] - https://www.bloomberg.com/news/articles/2023-10-18/scotiaban...