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Japan's role in China's economic reforms
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During his visit to Japan in October 1978 Deng Xiaoping said: "China must admit it is way behind (industrialized nations). We must learn from developed countries in terms of science and technology and business management." As a researcher of the Japanese economy this author witnessed the "learn-from-Japan" craze that swept across China's mainland back then.

Fourth, the Japan factor for quite a long time topped other Western countries for supporting China's reform and opening-up as the world's most populous nation sought economic aid for its modernization drive.

Japan is the first country to provide economic aid to China after the latter began reform and opening-up. Between 1982 and 1986 China received more official development aid (ODA) from Japan than any other country did. In 2000 Japan's ODA for China accounted for 61.2 percent of the total foreign official aid China received that year.

The economic aid from Japan spurred bilateral trade and Japanese investment in China, which for a while increased energy resources export to Japan as a result. Providing ODA to China was apparently a "win-win" undertaking for Japan, which is considered fortunate because China happens to take its reputation very seriously and always kept its promises. After all, not every recipient of Japanese loans has repaid their debts as they promised.

Fifth, the Japan factor is still relevant today, after China has adopted the scientific outlook on development, in that it offers experiences and facilitates cooperation for win-win results.

In the 1990s calls for "drawing from Japan's experiences" gradually disappeared from the Chinese media as China's development reached new heights whereas Japan slipped into an economic trough. The desire to learn from Japan was replaced by aspirations for the sustained economic prosperity that the US achieved through the information technology revolution of the '90s and for the American way of consumption and lifestyle.

The US has many worthy experiences for us to learn. No doubt about that. However, when it comes to natural resources, land conditions, the status of the US dollar as an international currency and the desirable age structure of the nation's population, China is simply no match for America.

Both Japan and China suffer from a "genetic" deficiency of natural resources. Because of its lack of natural resources and high population density, Japan was the first Asian nation to feel the constraint from resources shortage, the environment and aging population after beating other countries on the continent in achieving fast economic growth. Therefore, how it managed to sustain economic development under all these constraints, be it success or failure, throughout the post-war era offers us plenty to study and cherish.

It must be noted that the fourth report presented by the United Nations Inter-Government Panel on Climate Change in November 2007 points out: Climate change is becoming a major threat to the eco-environment on this planet and sustainable development of the human society. As the problems with the global and regional environment become more pressing by the day, there is really not much scope left for China and Japan to let their relations suffer more disruptions.

Having established strategic ties between them in the 1980s, it is now time for the two neighbors to form the most important strategic partnership in the 21st century joining hands in fighting environmental crises.

The author, Feng Zhaokui, is a senior advisor to the National Society of Japanese Economic Studies

(China Daily October 20,2008)

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