The Rapid Economic Growth of China in Predisposing The Complex Sino-Janpanese Relations with Japan in Post-Cold War (1991-2011)

Lewis, Ben Jay (2012) The Rapid Economic Growth of China in Predisposing The Complex Sino-Janpanese Relations with Japan in Post-Cold War (1991-2011). Bachelor thesis, Universitas Pelita Harapan.

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Abstract

People’s Republic of China (PRC) is the current world’s second largest economy, which is now called to be the emerging superpower that is undoubtedly highly influencial among the other countries. China has also proven that they are the world’s fastest growing major economy and is one of the major roles of the current world’s economy. PRC’s dramatic rise from poverty has given a marvelous impacts for the developing economies especially in Asia and particularly to Japan. China and Japan have shared a complex relationship for the past years until presently. Although both countries are located as neighbours and share an active relationship, there lies a question on how China’s rapid economic growth will affect its relation with Japan in the future. This research is conducted mainly based on the Economic liberalism theory that also includes modernization and developmental state theory which is often positioned between the theory of liberal economic system with capitalism. The concepts that are used are open door policy, global market integration, international trade, FDI, international partnership, flying geese paradigm, national interests, and comparative advantage that will further lead to the complex interdepence theory that will be used in regarding to Sino-Japanese relations. The research method used in this thesis is the Qualitative method. The data accumulation is through documentary research, which involves the use of study of literature, website, related documents, journals, articles, and also complemented with qualitative interview. The analysis in this research finds that China’s rise has proven that not only its own economy that been majorly affected, but China’s relationship with Japan, its region, and the world has been changed since then as well. The Sino-Japanese relations in its rapid expansion have shown a grandeur and brightest spot especially in their bilateral economic relationship. However, an increased and intensed economic relationship may have also increased the potential of controversies and disputes. Asides from the negativity, China’s rapid economic growth has distributed a major economic growth of Japan, as China-Japan bilateral trade has been the most prominent fuel of Japan’s total trading that will at least improve its sluggish economic situation in its lost decade. Sino-Japanese relations especially in the 1990s until presently have proven to be more positive than negative as they realize that they are both indispensable to each other.

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