ABSTRACT
Cold politics, hot economics is when cross-border economic and business relations persist or even thrive despite tense political relations. This chapter traces the evolution of cold politics, hot economics in Japan-China relations from the 1960s–2010s, focusing primarily on 2001–2016. It includes data on trends in trade, investment, and the makeup of Japanese firms in China, as well as public opinion and political event data. Finally, drawing on academic debates about popular and state-led nationalism and anti-Japanese sentiment in China, the chapter shows how members of the Japanese business community interpret the periodic backlash against them in China, their own responsibilities about Japan’s colonial past, and the implications of these attitudes for the business relationship.
