1. China and Japan Today

2. President Hu Jintao’s visit zChina is committed to structural change of the economy from export-driven to domestic consumption-driven zpersonal savings: 15 trillion yuan zforeign exchange reserves 0.9 trillion US$ zyuan-US$ has risen over 3% since July zfirst quarter GDP grew by 10.2%

3. Peace Treaty with Japan z1951, Peace Treaty with Japan was signed in San Francisco yChina was not invited z1952, Republic of China (Taiwan) signed Peace Treaty with Japan y``state of war between the Republic of China and Japan is terminated”

4. Diplomatic Relation (1972) zTurning point: Nixon visited Beijing and Shanghai in February 1972 zJapan’s Prime Minister visited Beijing and signed Joint Communiqué in September zPRC government waived the claim of war reparations against Japan

5. Peace Treaty (1978) zTreaty of Peace and Friendship between the People's Republic of China and Japan zDeng Xiaoping visited Japan

6. Japanese Loans to PRC zOfficial Development Assistance (ODA) zJapanese government loan zenergy loans zJapanese free aid ztrade surplus loans

7. After Cold War zRelative rise yU.S. yChina zRelative decline yRussia yJapan

8. Current Status zWashington-Tokyo-Beijing triangle yPRC & Japan regard relationship with each other as 2nd in importance to that with US zJapan plays significant role in integrating PRC into world economy zJapan has a vital interest in PRC’s development and stability

9. PRC’s Trade Partners 2005 zJapan is Mainland China’s third largest trade partner and largest import source ywas the largest trade partner before 2003 zTotal trade volume: 184 billion US$ z13% of Mainland China’s total trade zTotal imports from Japan: 100 billion US$ z15.2% of Mainland China’s total imports

10. Japan’s Trade Partners zMainland China is Japan’s largest source of imports and the 2nd largest trade partner in 2004 zPRC (including both Mainland China and Hong Kong) became Japan’s largest trade partner in 2004 ysurpassing the US for the first time

11. Japan’s Direct Investment z3rd largest investment source z31,855 projects z46.8 billion US$ z9 mill. employees

12. Personnel exchanges 2005 z3.4 million visits from Japan to China z540 flights weekly between China & Japan z315 pairs of sister cities z487,570 Chinese citizens in Japan y80,592 Chinese students in Japan (2/3) y7,000 Chinese have obtained Ph.D. in Japan z19,059 Japanese students in China (17%)

13. Current Issues zYasukuni Shrine zJapanese history textbooks zJapanese chemical weapons left in China zDiaoyu (Senkaku) Islands in East China Sea

14. Generation Gap zChiang Kai-Shek (1887), Mao Zedong (1893), Deng Xiaoping (1904) zJiang Zemin (1926), Hu Jintao (1942), Professor Frost zGuo (1974) zthe “little emperors”