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China and Japan Cannot Afford an Economic War

The bilateral economic and trade relationship between China and Japan has become highly interdependent over the past 40 years. The prospects of economic integration in Asia hinge on China, Japan, and South Korea working together to create a regional end market. However, many people have overlooked the negative impact the Diaoyu islands dispute might have on the Sino-Japan economic and trade relationship and the uncertainties it might bring to the political and economic landscape of East Asia and even the Asia-Pacific region.

Steering the relationship between Asia's largest and second largest economies out of the current predicament is a test for the citizens and policymakers of both countries. Both China and Japan should rein in hysterical nationalism and return to negotiations to prevent the worst-case scenario and achieve long-term cooperation.

Issue 334
Print:2012-10-08
By staff reporters Shu Taifeng, Wang Kai, and intern reporter Zhang Beibei
The government's monopoly of the land market and artificially high housing prices have caused a sharp increase in the construction of housing properties with limited rights.
By staff reporter Tian Peng and intern reporter Xu Jing
Despite increased efforts, government responsibility in reducing the prevalence of chronic disease risk factors through effective policy intervention has been lacking.
By staff reporter Jin Yan
Chinese enterprises see the financial crisis as the perfect window to invest in cash-strapped international energy companies in North America.
By staff reporters You Xi, and Dong Yuxiao
The government's new financial plan aims to be market-oriented and emphasizes letting the financial industry play a bigger role in supporting the real economy.

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