Japanese Nationalism, Economic Supremacy, and Geopolitical Challenge to the US

Key Insight

Akio Morita, Sony's founder, observed a significant shift in the U.S.-Japan relationship by the 1980s, moving from admiration for America's post-war dominance to perceiving 'a certain arrogance' and deep-seated problems within the U.S. economy and society. He noted America's series of crises—Vietnam, racial tensions, Watergate, stagflation, and industrial malaise—contrasting them with Japan's economic ascendancy. Morita, a beneficiary of U.S. tech transfers, believed America had lessons to learn from Japan, arguing that the U.S. was 'creating lawyers' while Japan 'created engineers', and criticizing American business for its 'this year's profit' focus versus Japan's 'long range' management.

In 1989, Morita co-authored 'The Japan That Can Say No' with Shintaro Ishihara, a controversial far-right politician. While Morita's essays reiterated his critiques of American business practices, albeit with a harsher tone, Ishihara's contributions were overtly nationalistic. Ishihara's essays called for Japan to assert independence from an 'overbearing America', demanding 'Restrain America!' and challenging the U.S.-dictated postwar constitution. This partnership shocked many Americans and revealed a concerning nationalism within the capitalist class Washington had cultivated, questioning the efficacy of the U.S. strategy to bind Japan through trade and technology.

The book's most alarming aspect for Washington was Ishihara's assertion that Japan could coerce the U.S. due to America's reliance on Japanese semiconductors, particularly for military applications. Ishihara highlighted that 'the 1-megabit semiconductors which are used in the hearts of computers' were 'only made in Japan', where Japan held 'nearly a 100 percent share' and was 'at least five years ahead of the U.S.'. He speculated Japan could even provide advanced semiconductors to the USSR, potentially tipping the Cold War military balance. This led to fears of a 'Pax Niponica', an East Asian bloc led by Japan, and the alarming prospect of the U.S. defending Japan with weapons powered by Japanese technology, fundamentally undermining America's geopolitical preeminence.