Chinese-Japanese Relations in the Twenty-First Century: Complementarity and Conflict

By Marie Söderberg | Go to book overview

8

Economic relations

What can we learn from trade and FDI?

Hanns Günther Hilpert and Nakagane Katsuji


Introduction: why is the Sino-Japanese relationship so important?

Japan and China - in spite of their distinct differences - are economically the largest and most important countries of East Asia (see Table 8.1). Still the economic superpower Japan dwarfs the upcoming challenger China: by economic size Japan is four to five times as big as China; by level of income (i.e. GDP per capita) Japan outdoes China by nearly fifty times.

However, the sustained rapid economic growth of China contrasts with the economic stagnation of Japan in the 1990s. If China keeps growing at the same rate as it did in the 1990s (10.3 per cent in average), and if Japan keeps growing at the low average yearly rate of 1.2 per cent, as it did in the 1990s, China will surpass Japan in the year 2020 and become the second largest economy in the world. However, the extrapolation of present economic trends into the future is a very unreliable prognosis technique. Over the next twenty years Chinese growth rates may be considerably lower, as in the late 1990s they had already fallen below 8 per cent. On the other hand, Japanese growth rates could possibly be higher, once the current process of structural adjustment has been accomplished. These caveats notwithstanding, we can realistically expect that the size of the gap between Japan and China will narrow considerably and eventually disappear.

Certainly the rapid catching-up of China will not only alleviate poverty and improve economic welfare in China, but will also be beneficial to the outside world, including Japan, as the opportunities for profitable economic exchanges increase. By neo-classical reasoning the economic rise of China is not at somebody else's loss, but rather to everybody's gain. Japan more than any other country should profit from China's rise by virtue of the complementarity of the two countries. China is abundant in natural resources and in cheap labour and it has a huge market. These are all factors which Japan needs for its economic security. Japan, on the other hand, possesses all the capital, technology and human skills China needs for its modernisation and industrialisation. Japan may also utilise Chinese resources for the manufacturing of low-cost products for the world market. Furthermore the increasing supply of low-cost Chinese products improves the terms of trade of Japan in world trade. Hence, by virtue of

-130-

Notes for this page

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items
Notes
Cite this page

Cited page

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA 8, MLA 7, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Note: primary sources have slightly different requirements for citation. Please see these guidelines for more information.

Cited page

Bookmark this page
Chinese-Japanese Relations in the Twenty-First Century: Complementarity and Conflict
Table of contents

Table of contents

  • Title Page iii
  • Contents v
  • Tables and Figures vii
  • Preface xi
  • Abbreviations xiii
  • Note on Names xv
  • Introduction 1
  • Notes 9
  • 1 - Mirror for the Future or the History Card? 10
  • 2 - Sino-Japanese Relations in the Context of the Beijing-Tokyo- Washington Triangle 32
  • 3 - Engagement Japanese Style 52
  • 4 - Sino-Japanese Relations and Ballistic Missile Defence (Bmd) 69
  • 5 - The Taiwan Question 88
  • 6 - The Background and Trend of the Partnership 103
  • 7 - The Role of Oda in the Relationship 114
  • 8 - Economic Relations 130
  • 9 - Japanese Firms in China 154
  • 10 - Managing the Global-Local Dilemma 177
  • Index 195
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this book

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen
Items saved from this book
  • Bookmarks
  • Highlights & Notes
  • Citations
/ 207

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA 8, MLA 7, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Search by... Author
    Show... All Results Primary Sources Peer-reviewed

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.