Current anxiety surrounding China is largely confined to policy and financial circles, lacking the broad public and pop culture resonance that characterized the fear of Japan's economic rise in the 1980s, which permeated movies, media, and consumer attitudes.
In an attempt to gain a currency advantage, Caterpillar lobbied the Reagan administration to open Japan's financial markets. This policy backfired, causing Japanese savings to flood into the U.S. and enabling competitor Komatsu to build factories directly on American soil.
Trump's consistent economic nationalism is not a recent phenomenon but is deeply rooted in the 1980s. He publicly railed against Japanese trade practices and high-profile investments in American assets, demonstrating that his protectionist instincts are a core, long-held belief.
The "Japan panic" was rooted in fears of economic subordination—like having a Japanese boss or seeing landmarks bought by Japanese firms. In contrast, anxiety about China is dominated by concerns over direct military conflict and a technological arms race, a much starker form of geopolitical rivalry.
Public and political fear of Japanese economic takeover reached its zenith in the early 1990s, with books like Michael Crichton's "Rising Sun." Ironically, this coincided with the bursting of Japan's asset bubble, highlighting a critical lag between economic reality and popular discourse.
Unlike the 1980s, when Japanese corporations were common antagonists in films like Die Hard, modern Hollywood avoids portraying China negatively. This is attributed to a desire to maintain access to China's lucrative box office, resulting in a pop culture landscape that doesn't reflect geopolitical tensions.
During its boom, Japan's industrial policy and close bank-firm relationships were admired as strengths. After the bubble burst, these same traits were immediately relabeled as crony capitalism and systemic flaws, showing how quickly dominant narratives about national economic models can invert.