Packing towels at one of the 220 towel makers in and around the quaint little city of Imabari on the island of Shikoku, Japan. Together, they produce nearly two-thirds of the towels made in the country. But cheap imports from China and elsewhere in Asia are soaking up orders, growing by a third in the past two years to take 60% of the market...This is the underside of the commercial juggernaut that only a decade ago terrified global competitors. The real Japan Inc. is dominated by small and medium-sized businesses ? factories that supply the behemoths or produce goods for the domestic market, construction firms that pave local roads, retailers that serve neighborhood shoppers. They employ 78% of the workforce, and they've never felt the full wrath of market forces ? until now.