The important economic relationship between Japan and China has been growing rapidly as both trade and investment flows continue to reach record highs. Is the integration of the two economies on par with what we would expect from their proximity, the sizes of their economies and complementarities in resource structures and development levels? One major restraint on furthering the economic relationship has been the political distance between the two countries and the inability to put certain historical issues behind them. The trade relationship is calculated to be below potential trade and what would be expected from other trade relationships. Also a causal link is found between trade and politics which shows that the economic relationship is driving the political relationship but also that the politics has affected the trade. Recent developments such as Chinese investment into Japan and the possibility of a new agreement are discussed. With relations currently at a high point in the last 10 years, after some severe lows, the time is ripe to secure the relationship beyond dialogue and make it more robust to negative political shocks. As China’s rapid rise continues and its importance to Japan grows in every sense, it is important for the two countries to stabilize their relationship and narrow the political distance between the two countries.

Mr. Armstrong is a Ph.D. candidate (Economics) from the Crawford School of Economics and Government, Australian National University, staying in Japan as a Japanese Studies Fellow since September 2007. He is now affiliated with Graduate School of Economics, and joint with the Graduate School of Public Policy, University of Tokyo, and conducting research in consultation with his advisor, Prof. Takatoshi Ito, on the topic of "Japan, China and the Structure of East Asian Trade".

Thursday , December 6, 2007

16:00-17:30

English, Q&A session in English and Japanese (no interpretation)

If you would like to attend the seminar, please notify Japanese Studies and Intellectual Exchange Dept. by Monday, December 3, 2007 with your name, affiliation, and contact information (tel., fax or e-mail). If you have any questions, please feel free to contact us.
Tel: 03-5369-6069, Fax: 03-5369-6041