The root cause of Japan's financial crisis was planted as early as 1985 at the time of the Plaza Accord.

In the early 80s of the 20th century, the United States fell into a serious financial crisis, with a high deficit and a growing foreign trade deficit. Under these circumstances, the US Government has to consider adopting a policy of depreciation of the US dollar in order to enhance the export competitiveness of its own products and change the imbalance in the balance of payments.

On September 22, 1985, the finance ministers and central bank governors from the United States, Japan, West Germany, France, and the United Kingdom gathered at the Plaza Hotel in New York and signed an agreement on the joint intervention of the governments of the five countries in the foreign exchange market and inducing the orderly depreciation of the US dollar against major currencies.

The impact of the Plaza Accord on the Japanese economy has been most significant. Before the Plaza Accord, the exchange rate of the U.S. dollar against the yen was 1 to 250, but within three months of the agreement, it fell to 1 to 200, and since then it has fallen to a low of 120 yen per dollar.

The continuous appreciation of the yen has led to a large inflow of international capital into Japan, which has caused a blowout effect on the Japanese stock market and real estate market. According to later statistics, from 1985 to 1990, Japanese shares rose by an average of 30 per year, and land prices rose by 15 per year. At the same time, Japan's foreign trade conditions began to deteriorate, and the high value of the yen led to rising prices for export goods and loss of competitiveness.

In response, Japanese companies have set up subsidiaries overseas and shifted local production to third-world countries where labor costs are low. Japan's domestic manufacturing industry is gradually becoming hollow, and a large amount of excess capital is being used in virtual markets such as stocks and real estate, and the economic bubble is getting bigger and bigger.

In 1989, the Japanese government introduced a series of austerity policies to prevent the economic bubble from spreading. In the early 1990s, austerity began to show its effects, with a sharp and sustained decline in stock markets and land prices. Most of the real estate loans issued by banks turned into non-performing assets overnight. It is estimated that by 1992, the total non-performing assets of banks had reached 20 trillion yen, and the entire economy was in dire straits.

This sudden crisis caused many speculators to lose their fortunes, and Nihon Heavy Industries was unfortunately one of the targets of the financial crisis.

Nihon Heavy Industries started as a manufacturer of chemical equipment, and in just a few decades, it has become one of the key companies in the field of chemical equipment in Japan, with a stock market value of nearly $5 billion. However, such a powerful enterprise has been obsessed with the virtual economy in recent years, and Chairman Akira Ishikawa is obsessed with stocks and real estate, and has invested a large amount of the company's working capital in these two fields, resulting in insufficient investment in technology and declining market competitiveness year by year.

It stands to reason that the emaciated camel is bigger than the horse, although Nihong Heavy Industries lacks enterprising technology, but its brand and manufacturing capacity that have been precipitated for many years are still very strong, which is enough to make it occupy a place in the international chemical equipment market, and it is not for a while

1/5……，