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International Relations Business and Finance Diplomacy

The Geo-Economic Potential of the China–Japan Relationship

Japanese and Chinese Flags. Image: futureatlas.com/Flickr

This article was originally published by the East Asia Forum on 28 September, 2015.

China and Japan already together account for more than a fifth of global output, bigger than the share held by the United States or that of Europe. Over three-quarters of that, of course, is generated in mainland China but, contrary to widely held perceptions, the China–Japan economic partnership is one of the biggest in the world.

The bilateral trade relationship is the third-largest in the world, with a US$340 billion trade relationship in 2014. China is Japan’s largest trading partner, accounting for one-fifth of its trade, and Japan is China’s second-largest. Japan is the largest investor in China, with a stock of direct investment at more than US$100 billion in 2014 or US$30 billion more than the next largest source, the United States. But even those massive trade and investment figures understate just how intertwined are these two Asian giants.

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International Relations History Diplomacy

Historical Memory and its Impact on Sino-Japanese Relations

Nanjing Massacre Bronze Head

Yesterday marked an important anniversary in the history of modern China. In keeping with Western Europe, the United States and others, the country commemorated the 70th anniversary of the conclusion of the Second World War and remembered its war dead. Beijing declared September 3 to be a national holiday, so that all Chinese citizens could take part in events. However, the rhetoric and tenor of the Chinese commemorations was different in many respects from the somber, understated and generally uncontroversial American and European ceremonies.

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Security Defense Politics

The Trouble with Japan’s New Security Bills

Flag Emblem on a Japanese Military Uniform. Image: Koalorka/Wikimedia

This article was originally published by the East Asia Forum on 3 August, 2015.

The debate over Japan’s new security bills, which seek to overhaul post-war defence policies, has shifted to the upper house and the streets, as Prime Minister Shinzo Abe presses on to secure their passage into legislation. On 16 July the lower house passed the package of bills in a vote that was boycotted by opposition parties as tens of thousands protested outside the Diet.

Abe has extended the parliamentary sitting by three months to secure the outcome before he faces re-election to the presidency of the Liberal Democratic Party (LDP) and therefore the prime ministership. He rammed the bills through the lower house in the knowledge that, even should the House of Councillors reject them, ultimate passage of the bills would be secured after a 60 day reconsideration and re-passage with a two-thirds majority through the House of Representatives. So, with enactment of the unpopular proposals almost guaranteed even if all of the opposition parties band together to block them in the upper house, why is the Abe government in trouble over the issue?

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International Relations

Why Japan Should Put Boots on the Ground on the Senkaku Islands

Japanese navy sailors at a ship railing. Image: tpsdave/pixabay

This article was originally published by Strife on 25 May 2015.

Halfway between Japan and Taiwan are the the Senkaku Islands. They are claimed by Beijing under the name Diaoyu and by Taipei with the label Diaoyutai. The islands are prime real estate from a strategic perspective. Despite rumblings to the contrary, Tokyo seems to be sticking to her policy not to deploy ground troops on these islands. This is usually portrayed as a goodwill gesture, an olive branch extended to China, showing how Japan is ready to negotiate in good faith and how she does not see a military solution as the only possible outcome of the territorial dispute over the islands between China and Taiwan. This is a view supported by the mainstream media and many observers.

But China is keeping the pressure on the islands, with constant incidents featuring coastguard (and other state) vessels and trawlers entering Japanese territorial waters around them. And there is not much evidence of any attempt by Beijing to negotiate in good faith. This is in contrast to the approach taken by Taipei, which has reached a fisheries agreement with Tokyo, a practical implementation of President Ma’s East China Sea Peace Initiative.

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Development Migration Regional Stability

Where Have All Japan’s Young People Gone?

Japanese student in a classroom. Image: ken19991210/Pixabay

This article was originally published by the East Asia Forum on 4 May, 2015.

The remarkable ageing of the populations in most advanced economies is no more evident or precipitate than in Japan. Earlier, Japan’s and other countries’ anti-natal policies encouraged a lowering of birth rates in an attempt to boost the chances of economic advancement.

In a decade or two, the impact of China’s one-child policy, and the subsequent low Chinese fertility rate, will also lead to a rapid decline in its population and acceleration of the ageing of its population. China may get old before it’s rich, as the popular aphorism now suggests, but most agree that while a reversal of the one-child policy may alleviate the decline in its fertility rate witnessed over the past several decades, that is hardly likely to entirely take the pressure off China’s coming demographic crunch.