Sino-Japanese relations are of critical importance to the future development of the two countries as well as wider East Asia. At the present time these relations are characterized by a number of incongruities if not contradictions. Diplomacy is at a low point, while economic ties are closer and more intensive than ever. History continues to overshadow the present and is destined to impact the shaping of the future.
Mutual resentment is deep-rooted, not having been put to rest by the shared aim of profit and growth. Developmental disparities between Japan and China foster more intensive economic ties because they both have what their opposite number needs. For the time being Chinese cheap labor and Japanese capital and technology complement each other well and to the benefit of both.
But the same disparities generate tensions between the two countries. "China rising, Japan stagnating" is a tune frequently heard of late when East Asia and the position of its major countries in the world are being discussed. They have many common interests, but there is rivalry and distrust, too.
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