March 2014
Japan And China: A Ruinous Rivalry?
Sino-Japanese frictions over disputed islands in the East China Sea have stalled bilateral trade and driven the confidence of Japanese businesses in China to the lowest level ever. China’s increasing assertiveness, and Japan’s election of strongly nationalist leader Shinzo Abe, have sparked worries over a damaging conflict. Yet the news is not all bad: other Asian countries stand to benefit from increased investment and aid as China and Japan compete for influence, and many Japanese firms have figured out how to succeed in China’s hostile environment. On the whole, economic pragmatism still trumps political adventurism in East Asia.
Also in this issue:
- Arthur Kroeber analyze Xi Jinping’s policy priorities
- Tom Miller investigates the crackdown on steel plants in Hebei province
- Carsten Holz judges that the GDP numbers can be trusted