China and Japan Today

President Hu Jintao’s visitChina is committed to structural change

of the economy from export-driven to domestic consumption-driven

personal savings: 15 trillion yuanforeign exchange reserves 0.9 trillion

US$yuan-US$ has risen over 3% since Julyfirst quarter GDP grew by 10.2%

Peace Treaty with Japan1951, Peace Treaty with Japan was

signed in San Francisco China was not invited

1952, Republic of China (Taiwan) signed Peace Treaty with Japan ``state of war between the Republic of

China and Japan is terminated”

Diplomatic Relation (1972)Turning point: Nixon visited Beijing

and Shanghai in February 1972Japan’s Prime Minister visited Beijing

and signed Joint Communiqué in September

PRC government waived the claim of war reparations against Japan

Peace Treaty (1978)Treaty of Peace and Friendship

between the People's Republic of China and Japan

Deng Xiaoping visited Japan

Japanese Loans to PRCOfficial Development Assistance

(ODA)Japanese government loanenergy loansJapanese free aidtrade surplus loans

After Cold WarRelative rise

U.S. China

Relative decline Russia Japan

Current StatusWashington-Tokyo-Beijing triangle

PRC & Japan regard relationship with each other as 2nd in importance to that with US

Japan plays significant role in integrating PRC into world economy

Japan has a vital interest in PRC’s development and stability

PRC’s Trade Partners 2005Japan is Mainland China’s third largest

trade partner and largest import source was the largest trade partner before 2003

Total trade volume: 184 billion US$13% of Mainland China’s total tradeTotal imports from Japan: 100 billion US$15.2% of Mainland China’s total imports

Japan’s Trade PartnersMainland China is Japan’s largest

source of imports and the 2nd largest trade partner in 2004

PRC (including both Mainland China and Hong Kong) became Japan’s largest trade partner in 2004 surpassing the US for the first time

Japan’s Direct Investment3rd largest investment source31,855 projects46.8 billion US$9 mill. employees

Personnel exchanges 20053.4 million visits from Japan to China540 flights weekly between China & Japan315 pairs of sister cities487,570 Chinese citizens in Japan

80,592 Chinese students in Japan (2/3) 7,000 Chinese have obtained Ph.D. in Japan

19,059 Japanese students in China (17%)

Current IssuesYasukuni ShrineJapanese history textbooksJapanese chemical weapons left in

ChinaDiaoyu (Senkaku) Islands in East

China Sea

Generation GapChiang Kai-Shek (1887), Mao Zedong

(1893), Deng Xiaoping (1904)Jiang Zemin (1926), Hu Jintao (1942),

Professor FrostGuo (1974)the “little emperors”