Frontiers in Business, Economics and Management ISSN: 2766-824X | Vol. 4, No. 3, 2022 166 Analyze the Development of China and Japan Relations from An Economic Perspective Xintong Tao, Zhuo Yang City University of Macau, Macau, 999078, China Abstract: Since the 21st century, the relationship between China and Japan has been in a very delicate situation. People's attitudes and views towards Japan and the development of bilateral relations have always been different. Therefore, changes in China-Japan relations have always affected the hearts of the people of the two countries. Few countries in the world have such complex "love and hate" as China and Japan. Under the general trend of globalization, whether China Japan relations can develop smoothly not only affects the economic trend of East Asia, but also relates to the stability of the whole world situation. Therefore, China Japan relations have become one of the important issues in the strategic layout of China's international relations and a key link in build a community of shared future for mankind and achieve shared and win-win development. This paper analyzes the development of China and Japan from an economic perspective, which can better show the changing process of the relationship between the two countries. In the era of complex and volatile COVID-19, through economic cooperation and trade exchanges to promote the development of bilateral relations, and seize the opportunities of globalization, we can be prepared to meet future challenges. Keywords: China-Japan relations, Economic, Globalization, Cooperation. 1. Introduction The relationship between China and Japan has been worth discussing since ancient times. Whether from a historical perspective or from a practical perspective, there are indeed many issues that make the people of the two countries hold different views. From the perspective of realism, China and Japan belong to a relationship between structural conflicts, that is to say, we cannot deny history, but should face up to history and face up to some unresolved disputes between countries question. From a liberal point of view, this is a deep-rooted state of interdependence, especially the economic exchanges between the two countries, and the purpose of this demand is to resolve the strategic confrontation between the two countries and avoid the escalation of the crisis between the two countries. Nowadays, the two countries are developing rapidly. In order to comply with the trend of internationalization, China and Japan need to cooperate in international strategies. Under this premise, the cooperation strategy chosen by the two countries is to take participation in the main competition as an inevitable balance condition. This bilateral relationship tests the management level of the international strategic layout of the two countries. In fact, the economic relationship between China and Japan is not only mutual assistance, but also mutual restriction. Therefore, it is more like a relationship that can be both friends and opponents in the changing international environment. Therefore, it can be said that the relationship between China and Japan is not only the cooperation or confrontation of hard power, but also the fierce competition of leadership and influence of soft power such as economy, culture and diplomacy. Therefore, the relationship structure between China and Japan is not single and one-sided, but two complex and equal structural conditions. Under the general trend of globalization, whether China Japan relations can develop smoothly relates to the stability of the whole world situation. Therefore, China Japan relations have become one of the important issues in the strategic layout of China's international relations and a key link in build a community of shared future for mankind and achieve shared and win-win development. 2. China-Japan Strategic Interdependence of Contradiction and Cooperation The rapid development of China’s modernization did not begin until the summer of 1894. At that time, Japan thought that it was far more advanced than China in terms of national scale and military equipment, ignoring that China was actually achieving rapid progress and development. Japan was very shocked by the rise of China, so it also had obvious pertinence in the formulation of national policies at that time. The first thing people can feel is the military policy, and the second is the economic policy against China. At the same time, the Japanese people also have new anxiety and worry about China. Therefore, the relationship between China and Japan has been experiencing problems from the beginning, and needs to continue to develop in the process of adjustment. The problems left over from history will also affect the current relations between countries, and are more likely to cause friction and conflict between countries. Once there is a conflict, it will certainly damage the strategic interests of cooperation between China and Japan. As the saying goes, "people will die for wealth and birds will die for food". Both China and Japan need to work hard for the interests they need. Although this seems to be only for their own countries, in fact, this practice has also promoted the economic development of both countries to a certain extent. China needs to establish a long-term peaceful international environment for reform and opening up and socialist modernization, establish its own consistency in the process of a multipolar world, and strive for a new international order. As for Japan, although the party forces in recent years are unstable and have a great impact on the ideology of the people, the vast majority of Japanese citizens who grew up in the peace constitution still support 167 peace and are willing to look at the development between the two countries from a long-term perspective. As both sides gradually abandon the old concept of zero-sum game, the political relations between China and Japan will continue to adapt to the development of the situation in the future, because the current win-win situation is not zero effect, and avoiding losing everything is the only rational choice. On the issue of history, Japanese leaders have not yet formed a political atmosphere and moral values sufficient to admit the crime of aggression. In this regard, we must adhere to our own principles. But the bureaucratic generation was born in that era. The propaganda of national sentiment made them not very friendly to China and believed that China's rise was aggressive. Therefore, there has been a view that it is very important for Taiwan to maintain the safety of Japan's maritime transport routes. Japan has actually targeted China. The Diaoyu Islands and the continental shelf in the East China Sea have turned the territorial dispute between China and Japan into a long-term dispute, causing friction between China and Japan from time to time. Therefore, the contradiction and cooperation between China and Japan is not a simple problem that can be solved. The change of ideology requires long-term efforts, and the cooperation between China and Japan is more like a strategic dependency. 3. An Analysis of China-Japan Economy With the development of economic globalization, China Japan cooperation is facing new opportunities and conditions. Since the establishment of diplomatic relations between China and Japan, the economic relations between China and Japan have developed on the basis of equality and mutual benefit, especially in the fields of economy, trade, investment and finance between the two countries. The positive developments in these two areas have provided a good start and a solid foundation for further expanding and developing economic cooperation between China and Japan. (I) The bilateral trade between China and Japan has gradually increased, and the trade structure has developed to the level of division of labor. Due to the uniqueness of the two countries' geographical location and the complementarity in marine economic exchanges, the economic and trade between China and Japan has developed rapidly and gradually stabilized. The hegemonism of the United States has led to the gradual slow growth of the global economy and the sharp deterioration of the form of international trade. Japanese exports fell by 15.7% year-on-year, and world trade imports fell by 7.9%. However, since Japan established diplomatic relations with China, the trade volume between the two countries has increased by 4% over the previous year, reaching 89 billion to 196 million US dollars, an increase of about 80 times compared with the first trade. It can be seen that China and Japan have witnessed rapid growth in economic and trade cooperation, and the trade structure has also changed. China and Japan have become the largest trading partners in East Asia. (II)Direct investment in China has risen in ups and downs, and investment has shifted to high value-added industries. After the 90th century, China has its deepening of reform and opening up. Japanese enterprises in China began to gradually understand China's market demand through market research. Through the survey, it was found that China has very large investment space in clothing, food, electronics, machinery, automobile, building materials and other industries. Subsequently, Japan's investment in China began to increase significantly, and Japan's direct investment in China fluctuated, but on the whole, it was on the rise. The most important reason for the changes in investment is that the industrial investment structure between China and Japan has changed. From the beginning, the investment in clothing and food has gradually transformed into investment in heavy industries such as automobile and electromechanical manufacturing. This change in investment tendency also provides more choices for trade exchanges between the two countries and lays a foundation for subsequent economic development. (III)China and Japan signed a currency swap agreement, supplying a financial cooperation in a new level. In terms of currency issues, the financial cooperation between China and Japan mainly revolves around government development assistance. As for Japan's assistance, China's total loans exceed 50% of the Chinese government's development assistance in most countries. Although Japan's official development assistance policy has been adjusted in recent years, the future development of government assistance will still be an important part of China Japan economic relations. The sudden Asian financial crisis has sounded an alarm for both China and Japan. The East Asian currency exchange agreement has become the most important part of the construction of the East Asian Currency security network, and has fully played an important role in maintaining currency stability. 4. Stable and Rapid Development Will Benefit Both Sides It is undeniable that there are indeed some obstacles and unfavorable factors in the economic and trade exchanges between China and Japan, and the exchanges between the two countries are not always smooth sailing. It is under this condition that the two countries realize that the mutually beneficial relationship established by both sides is a more stable development model. We should cooperate and trust each other in finance and trade, and actively carry out trade exchanges. Every country in the world cannot escape the trend of economic globalization. Therefore, the development of countries is not only dependent on their own countries, but also should focus on cooperation. 5. Conclusion Thinking about the relationship between China and Japan can play a positive role in the face of East Asia and the world bilaterally, so this analysis is indispensable. The first problem is to overcome and prevent the Cold War mentality and psychological problems. Due to historical reasons, people in the two countries have been thinking, feeling the friendship of expediency, and always worried that the other country would do things that would harm their national interests. But in fact, we should recognize the existence of this contradiction and know that history will not change or disappear. The two countries can try to slow down this relationship and face up to the development trend of the world today. Maybe historical problems and strategic problems between countries are not easy to solve, but they can be managed. In the political and economic interaction, attention to their own national interests is inevitable, but this is not a problem that affects the strategic mutually beneficial relationship between the two countries. It 168 can be said that this is not easy to achieve, so under the premise of maintaining national equality, seeking common ground while reserving differences may be the best choice. However, the establishment of long-term stable and friendly relations between China and Japan is not only in the common interests of the two peoples, but also conducive to peace and development in Asia and the world, which is undeniable. The relationship between China and Japan is now a contradiction between ideal and reality, not a contradiction of time. We all know that history cannot be forgotten. Similarly, we also resist any falsification and distortion of historical facts, but this does not affect the trade and economic exchanges between the two countries today. One of the keys to the steady development of relations between China and Japan is to rebuild mutual trust between countries, under the complex background of the COVID-19, it is also indispensable to seize the opportunity of globalization, actively build a community of shared future for mankind through connectivity, and promote the development of economic relations between the two countries. References [1] Sperduto P W, Kased N, Roberge D, et al. Summary report on the graded prognostic assessment: an accurate and facile diagnosis-specific tool to estimate survival for patients with brain metastases[J]. Journal of Clinical Oncology, 2011, 30(4): 419-425 [2] Yahuda M. The limits of economic interdependence: Sino- Japanese relations[J]. New directions in the study of China’s foreign policy, 2006: 162-185. [3] Liao X. The petroleum factor in Sino–Japanese relations: beyond energy cooperation[J]. International Relations of the Asia-Pacific, 2007, 7(1): 23-46. 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