Chinese Media Warns of Japan's Plaza Accord Lessons

As China and the U.S. prepare to resume trade talks, a Chinese state-run media outlet has reminded its readers of Japan’s economic plight after it agreed to U.S. demands in 1985.

That year, under pressure from the U.S., Japan signed the Plaza Accord, agreeing to strengthen its currency against the U.S. dollar. Rapid and steep yen appreciation and Japan’s domestic policy mistakes eventually brought about the nation’s "lost decade," according to an article published Friday by China’s official Xinhua News Agency.