Behave Accordingly

Abstract

Some think that China and Japan are destined for war. Japan’s historical wartime aggression and present-day territorial disputes and military tensions over control of a small grouping of uninhabited islands in the East China Sea, known as Senkaku in Japan and Diaoyu in China, pave the way for a modern-day conflict. Beijing has even weaponized its trade with Japan to drive nationalism at home and try to shape Japan’s foreign and defense policy. Others argue China and Japan’s economic relationship will save Asia from a disastrous conflict. For decades the two economies have fed off one another. Economic interdependence forces Beijing to pull back from hard trade restrictions and consumer boycotts. Yet Xi Jinping’s calls for China to become self-sufficient by building its technological capabilities are a threat to Japan’s modern industries. Beijing’s military aggression and economic competitiveness provokes a response from Japan to build up its military and diversify its trade and investment.