ABSTRACT
This chapter summarizes the main trends that have evolved in Sino-Japanese relations since 1978 and discusses how the relationship may develop over the next decade. For both China and Japan, despite differing priorities, the Long-Term Trade Agreement (LTTA) and the economic policies it initiated were prompted by the general expectation of swift economic gain and long-term security concerns. Undoubtedly, China's modernization programme would have been severely handicapped had it not been for Japanese cooperation. A gradually increasing flow of Japanese Overseas Development Aid (ODA) to China and a 400% growth in Sino-Japanese trade in the ten years from 1977 to 1987 reflect a unique degree of cooperation between two ideologically diverse countries. In the early 1980s political discussions between Beijing and Tokyo were still very much concerned with cementing ties between two countries and ensuring that bilateral political friction was kept to a minimum. Since 1984, however, there has been growing emphasis on placing Sino-Japanese cooperation within the global framework.
