The lost decades experienced by Japan have had a significant impact on China's economy. As Japan struggled with prolonged economic stagnation and deflation, China emerged as a global economic powerhouse. China capitalized on the opportunity to become a manufacturing hub, taking advantage of its low labor costs and vast workforce. Chinese exports flooded international markets, posing tough competition for Japanese manufacturers. Furthermore, China's rapid economic growth led to increased demand for resources, benefiting commodity-exporting countries while Japan faced a decline in demand for its goods. As a result, China's economy thrived, while Japan grappled with the challenges and consequences of its lost decades.