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China and Japan Today President Hu Jintao’s visit China is committed to structural change of the economy from export-driven to domestic consumption-driven personal savings: 15 trillion yuan foreign exchange reserves 0.9 trillion US$ yuan-US$ has risen over 3% since July first quarter GDP grew by 10.2% Peace Treaty with Japan 1951, Peace Treaty with Japan was signed in San Francisco China was not invited 1952, Republic of China (Taiwan) signed Peace Treaty with Japan ``state of war between the Republic of China and Japan is terminated” Diplomatic Relation (1972) Turning point: Nixon visited Beijing and Shanghai in February 1972 Japan’s Prime Minister visited Beijing and signed Joint Communiqué in September PRC government waived the claim of war reparations against Japan Peace Treaty (1978) Treaty of Peace and Friendship between the People's Republic of China and Japan Deng Xiaoping visited Japan Japanese Loans to PRC Official Development Assistance (ODA) Japanese government loan energy loans Japanese free aid trade surplus loans After Cold War Relative rise U.S. China Relative decline Russia Japan Current Status Washington-Tokyo-Beijing triangle PRC & Japan regard relationship with each other as 2nd in importance to that with US Japan plays significant role in integrating PRC into world economy Japan has a vital interest in PRC’s development and stability PRC’s Trade Partners 2005 Japan is Mainland China’s third largest trade partner and largest import source was the largest trade partner before 2003 Total trade volume: 184 billion US$ 13% of Mainland China’s total trade Total imports from Japan: 100 billion US$ 15.2% of Mainland China’s total imports Japan’s Trade Partners Mainland China is Japan’s largest source of imports and the 2nd largest trade partner in 2004 PRC (including both Mainland China and Hong Kong) became Japan’s largest trade partner in 2004 surpassing the US for the first time Japan’s Direct Investment 3rd largest investment source 31,855 projects 46.8 billion US$ 9 mill. employees Personnel exchanges 2005 3.4 million visits from Japan to China 540 flights weekly between China & Japan 315 pairs of sister cities 487,570 Chinese citizens in Japan 80,592 Chinese students in Japan (2/3) 7,000 Chinese have obtained Ph.D. in Japan 19,059 Japanese students in China (17%) Current Issues Yasukuni Shrine Japanese history textbooks Japanese chemical weapons left in China Diaoyu (Senkaku) Islands in East China Sea Generation Gap Chiang Kai-Shek (1887), Mao Zedong (1893), Deng Xiaoping (1904) Jiang Zemin (1926), Hu Jintao (1942), Professor Frost Guo (1974) the “little emperors”