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Google define tells me: hollow out: remove the interior of; "hollow out a tree trunk", however I am not quite sure what it refers to figuratively in the following excerpt, from the speech given by the new minister of Japan:
I want to implement countermeasures to avoid the hollowing out of industry in Japan...
...due to the historic appreciation of the yen, it is only natural to feel an unprecedented sense of crisis concerning the hollowing out of industry.
Thanks Michael, I understand it a bit better now.
Did you translate this?
"Hollow out" is not an economic or business term.
No, I did not translate this. I got it from here:
Press Conference by Prime Minister Yoshihiko Noda
This is just a provisional translation, it may well be improved later.