Japan and the United States have committed to building an "unshakeable U.S.-Japan Alliance." The intention declared last week marks the 50th anniversary of the signing of the current Japan-U.S. security pact. U.S.-Japanese relations have been greatly affected by the Democratic Party of Japan's landslide victory in the Lower House last year. In addition, issues such as US military bases have never strayed too far from the headlines.

But of the non-superpower, developed nations, Japan is very important to China. Aside from a geographical proximity, the two nations share historical and cultural ties. Also factored in is China's perception of Japan as a possible resurgent threat and Japan's close relations with the United States since the end of World War II.

As we reported earlier this week, Japan narrowly retained its lead over China last year as the world's second-largest economy behind the U.S., buoyed by recovering exports and rising consumer spending. Data released by Japan's Cabinet Office showed the country's inflation-adjusted gross domestic product grew at 1.1% in the fourth quarter and 4.6% on an annualized basis, beating analysts' expectations.

Japan's GDP last year totaled $5.09 trillion compared with China's $4.91 trillion. Economists said Japan's data suggest that a "strong cyclical recovery" is underway and a "spiral shrinking of Japan's nominal economy has come to a halt.” But despite the recovery, analysts still expect China’s GDP to surpass Japan, taking over the number two spot by the end of this year.

Last year China posted strong GDP growth of 8.7% while other nations were posting much smaller gains. China also overtook Germany last year as the world's largest exporter and the U.S. as the largest auto market in the world.

Front Page
China-Japan Row
Han Han On China-Japan Row
Canada Checks HK Immigrants
Chinese Woman In U.N. Court
Arnie Thanks Bay Bridge Workers
China To Be "Oldest" Country
Mooncake Nutrition Fears
Net Bargaining Service

Front Page
Japan Envoy Called Again
Japanese Warned Over Protests
Japan Attack Rumor Denied
Air Crash Families To Sue G.E.
Free Calls On IPhone Stopped
Nike China Rep In Soccer Scandal
Postponing Retirement

Front Page
Hebei Boy's Call To Action
U.S. Wins In China-Japan Row
Captain Returns Home
Japan Reporters Denied Access
Wen Jiabao On Political Reform
Web Superbug Fears In China
China's Charitable Dilemma
Bomb Post Boy Convicted

The resignation of Japanese prime minster Yukio Hatoyama just eight and a half months into his term – and the consequences for China – is being debated here online. Hatoyama, who made his announcement on Wednesday, became the fourth Japanese leader in four years to fail before his first year was up. He leaves Japan without a leader before a pivotal July election.

Hatoyama lead the Democratic Party of Japan to a landslide victory last August that ended nearly 50 years of one-party rule in Japan. One of his election promises was to reduce Japan’s independence on the US – and improve ties with longtime foe China.

The relationship between Tokyo and Beijing has improved. But Hatoyama failed to relocate a small US marine airfield off of Okinawa. He also became embroiled in scandal when it was revealed that his mother had given him $12 million which he had not paid tax on. 

Naoto Kan, Japan's Finance Minister is in pole position in the race to succeed Hatoyama.

Tensions between the governments of Japan and China have, for the large part, been easing over the last year. And now a new move by Tokyo to boost tourism could improve relations between the two countries peoples.

Japan has said it will relax Chinese visa requirements starting in July to increase tourism and boost the nation's ailing economy. Japan's foreign minister called on Chinese tourists to "come in droves" when he announced the policy change. The economic requirements for Chinese applying for tourist visas will be lowered and the number of consulates in China increased to deal with more requests.

But with many Chinese still feeling a lot of animosity towards Japan for its role in the Second World War, do people here actually WANT to go. That's a question we put to people in today's Straight from the Street.

16 August 2010, Japan released it’s second quarter’s GDP data. Japan's second-quarter unadjusted GDP totaled $1.2883 trillion on a nominal dollar basis, against China's second-quarter unadjusted GDP of $1.3369 trillion. This underscored expectations that China will overtake Japan as the world's second-largest economy this year. For the past two weeks, the line that “China will overtake or has overtaken Japan to become the world’s second largest economy” has made media headlines worldwide. Statistics may have made China the world’s second biggest economy, but what is people’s life like in China? BON’s Hattie Zhao has her report.