siflux
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Bet Japan went third world not just cause the the Sinking of the Island and attendant massive geological effects, but from the lost in the economy, death in it' parahuman population, culutural backlash, and the conjoined effects of reduced globalism surging villain population, and the CUI being cunts.
Bingo. Remember, Japan and China are traditional enemies. Within a few years, virtually all that was left in japan were poor people. Almost all the capes on both sides who survived Leviathan ended up leaving the country. Japan is still an independent country in a somewhat similar manner to how Hong Kong is, but in reverse -- where Hong Kong is effectively independent but officially owned by China, Japan is officially independent but effectively owned by China.
I'm also declaring that Emperor Akihito was a Cauldron cape and died leading the Sentai against Leviathan at Kyushu. This means that the current emperor is Naruhito, who amusingly enough is highly interested in water policy and water conservation according to Wikipedia.