Asian deflation

       I have to wonder how significant is the US borrowing of currency from Japan, in order to open factories in Asia from which to produce textiles and other goods which are then sold on Japan's domestic market, in relation to Japan's on-going deflationary period?   

       I was in Japan a very short while but I did have an opportunity to visit a number of stores and I was surprised at the amount of goods sold under American labels.  Now if it's true that you can depress an agricultural market by undercutting local prices,  then it should also hold true that you can depress a textiles market by undercutting local prices and it would be relatively simple to do so if US manufacturers are producing at low costs in Asia for the US domestic market at US market rates, (whatever the market will bear),  but also for Japan's market, (less than the market will bear in order to gain a greater share of the market?).

       Essentially, the question is this:  Is Japan caught in a cycle of funding deflation in transferring capital in the form of low interest rate international loans (1%?) to the US ?\

KR