A Study On Economic And Trade Interdependence Between China And Japan In The21st Century

21st century is the era of rapid development of economic globalization and globaleconomies are inextricably interwoven with each other, therefore, theworld’s economies have reached a new level of interdependence. As an important part ofone’s foreign relations, foreign trade relations has been becoming the focus of the academiccommunity. As the world’s economic powers, Japan has abundant surplus capital, advancedtechnology and scientific management experience while China, as the largest developingcountry in the world, has rich natural resources, abundant labor resources and broadcommodity markets. Therefore, China and Japan have been interdependent in the economicand trade fields. Especially in the new century, this interdependence have been taking newchanges. Therefore, it will conducive to fully understand the interdependence of Sino-Japaneconomic and trade situations, causes and effects to study the Sino-Japan economic and tradeinterdependent relations in the21st century, as well as provides alternative policy for China todevelop economic and trade relations with Japan ultimately.This paper consists of four parts and discusses the Sino-Japan economic and tradeinterdependent relations in the21st century.In the first part, this paper will analyze the theories of economic interdependence. Itintroduces the meaning of interdependence and economic interdependence in theory, andanalyzes the connotation, connection and difference of sensitivity and vulnerabilityinterdependence with emphasis. Finally, it elaborates the influence of economicinterdependence to the international politics.In the second part, it will analyzes the current situation and reasons of the Sino-Japaneconomic interdependent relations. Firstly, it analyzes the current situation of Sino-Japaneconomic and trade relations from the bilateral trade, direct investment, official developmentassistance and technology introduction. Secondly, it briefly analyzes the Sino-Japan trade andeconomic interdependent relations by using the relevant data. Finally, it explains the reasonsfor the Sino-Japan trade and economic interdependent relations from the natural resources, capital flows, import and export trade, and science and technology.In the third part, it will analyzes the influences of Sino-Japan economic and tradeinterdependence to China. Sino-Japan trade and economic interdependence has been playingan active role in promoting China’s economic growth, providing financial and technicalsupport and ensuring sound bilateral political relations. However, Sino-Japan economicinterdependence is a double-edged sword and will have a negative impact onSino-Japan relations, such as escalating trade frictions, restricting the strategic adjustment ofChina’s economy, resulting in China’s stronger dependence on Japanese and the "Chinaeconomic threat theory" populating in Japan etc.In the fourth part, it will analyzes the China’s policy options under the Sino-Japan tradeand economic interdependent relations. This part will discusses how to avoid negative effectsand make use of the beneficial effects. That’s the contents will be discussed in this part. Itproposes the countermeasures to cope with the negative effects of Sino-Japan trade andeconomic interdependence to China from strategic adjustment of the economic structure,economic effects on political stability, establishing friction contingency mechanism,optimizing the structure of foreign capital utilization, improving theindependent innovation capability and adhering to peaceful development.In conclusion, this paper will summarize the core opinions and points to the deficienciesof this research.