China-japan Financial Cooperation And Integration:the Insights, Benefits, And Outcomes Of Necessary Convergence For The Two Biggest Economies In Asia

China and Japan are now two of the biggest economies in Asia and two of the world’s largest economies after the United States. While lessons from the Asian financial crisis had brought the importance of regional financial cooperation in Asia, the bilateral financial cooperation of China-Japan has now emerged the center stage for the future economic development in both economies as well as the region. With80percent of the total ASEAN+3outputs hailed from China and Japan nowadays, their financial cooperation is extraordinary not only between the countries, but also in the Asian region itself. Although their stance toward the Asian region is intact, China and Japan together should mutually achieve further cooperation in the areas of finance to continue to promote trade and investment. My finding shows that the impact of the financial cooperation between China and Japan on their economic outputs is affirmative. Ongoing bilateral cooperation starts to show benefits in mitigation of exchange risks, diversification of assets, and cost of transactions. Therefore, China and Japan should cooperate and integrate further in the universal field of finance, including cross-border transactions, currency exchanges, and securities markets. This thesis describes and argues the importance of the financial developments between China and Japan in every detail along with the implications for the future development.