ABSTRACT
This chapter discusses in more depth the likely impact of Japan's decline by considering a range of changing dimensions of Japanese influence and power, and the mechanics of how these might feed through into opportunities for conflict or cooperation. Japan's fortunes in its rise and decline as a great power have always been intimately bound up with the fortunes of conflict and cooperation in the East Asia region. Japan’s concerns about the erosion of its security position are exacerbated by signs of the decline of its US ally's national power. Japan's enhanced multilateral interaction and building of confidence with East Asian regional neighbours, even as it slips somewhat economically in standing, should be reinforced by Japan's status as an advanced industrial democracy. The consequence is that Japanese policymakers and citizens may feel a new vulnerability in economic ties by being exposed to potential Chinese economic pressure.
