Sino-Japanese Economic Relationships. Trade, Direct Investment, and Future Strategy

摘要

The study examines the pattern of Sino-Japanese trade during the nineteen eighties and identifies the factors responsible for it. It provides the Japanese perspective on direct foreign investment in China with emphasis on geographical and subsectoral distribution. Finally, the paper explores the likely future trends in both trade as well as investment flows between the two countries. It concludes that Japan has failed to strengthen its economic relationship with China to the due extent it should have over the past decade or so, but trends are increasingly positive. Being the key economic powers in Asia where the most dynamic economic development is expected into the next century, China and Japan would be able to acquire enormous benefit through expansion of a mutual economic relationship. Failure to fulfill its potential would not only deny benefits to the two countries, but also hamper the development of the whole region.