Japan – China relationship: “cold politics” leads to “cold economy”

Japan – China relationship is dramatically worsening when Beijing has recently announced it is not going to celebrate the 40^th anniversary of diplomatic relation with Tokyo. This decision makes Japanese refer “cold politics” between Japan and China will lead to “cold economics” meanwhile there is not any sign of easing tension between the two sides.

Nikkei network and some others say that a delegation of twenty senior characters of Japan Business Federation (Keidanren) intending to come to Beijing on occasion of the 40^th anniversary of diplomatic relation was officially cancelled.

As planned, the delegation would have a meeting with the Prime Minister Wen Jiabao and other officials of China to discuss the Japan – China Free Trade Agreement, issues around rare earth…; meeting with Chinese economic groups and surveying some local factories. The visit was also expected to create opportunities for investors of the two countries.

After its announcement of canceling the celebration of the 40^th anniversary of diplomatic relation with Tokyo, through Japan – China Economic Association, Beijing assumed that it still would like to welcome Keidanren delegation. However, in such context of tense political situation, Japanese news agencies assumed even if the delegation went on their visit, there were hardly any results as expected.

Before the tense situation between Japan and China rapidly deteriorated into Senkaku archipelago, the Japan – China relationship used to be “politic cold” but with “hot economy”, the sphere of influence of politics on the economic relationship was not very significant.

As for Japan, China is still a trade partner and number one import – export partner. Meanwhile, China also takes Japan as its second-ranked trade partner, after America. According to some statistics, with 23.300 companies investing in China, Japan outnumbered America to be the leading country that has the most investors in China. However, in such situation, Japanese investors are feeling insecure because they think that political situation properly leads to “cold economy”.

Some experts assumed “cold economy” between Japan and China was erupting when China applies its strict policy on Japanese exports. This shows China’s rigid stance in sovereignty dispute with Japan. There are properly other rigid methods, worsening the Japan – China economic relationship. This, however, makes China incur a risk of losing foreign investment and low consumption in reverse. 

Japanese government sent its Secretary of State Chikao Kawai to China for 2 days (from the afternoon of 24^th September) in order to ease the bilateral tension of  Senkaku archipelago dispute (also known as Diaoyu) on East China Sea. As planned, Secretary of State Kawai would have a peer-to-peer meeting with Mr. Zhang Zhijun

 Source: Vietnam Government Portal