The Belt and Road Initiative and China-Japan Economic Cooperation

The China-proposed Belt and Road Initiative, viewed as a “grand chorus” of international economic and trade cooperation, is increasingly recognized and participated in by the international community. Japan is China’s close neighbor and an important economic partner. Trying to find converging areas in the Belt and Road construction in order to expand the space of bilateral economic and trade cooperation is critical to the healthy development of bilateral relations, and will contribute to the economic integration of the Asia-Pacific region.

Belt and Road Injecting Vigor into World Economic Growth

Finding new growth areas for global economy

The year 2018 marks 10 years since the outbreak of the international financial crisis. The US-led Western economies have shown signs of recovery to various degrees, but the overall performance has not yet reached the precrisis level. For the emerging economies, as they are undertaking structural adjustments, it is rather hard for them in the foreseeable future to maintain the high growth rates they have achieved until now. The global economy is experiencing a slow recovery. Given this context, the China-proposed Belt and Road Initiative, as an open “grand chorus,” is very likely to inject fresh impetus to the recovery and development of the world economy. The Initiative, which originated in China, spans across Central Asia, Southeast Asia, South Asia, West Asia and even parts of Europe. The countries along the Belt and Road are mostly emerging economies and developing countries with a population of around 4.4 billion and a total economic output of US$21 trillion, accounting for 63% of the world population and 29% of global economic output respectively.1 “China’s Belt and Road Initiative Helps World Economy Overcome Difficulties,” March 2, 2015, http://www.gov.cn/xinwen/2015-03/02/content_2823962.htm. The countries along the Belt and Road are different in economic conditions and development levels, but their economies are complementary to each other. The initiative,which is motivated by the five major goals of policy coordination, facilities connectivity, unimpeded trade, financial integration and people-to-people bonds, has received recognition and positive response from the majority of the countries concerned. The Belt and Road will not only help China and other participants bring their comparative advantages into full play and carry out fruitful economic cooperation, it will also promote within the region the orderly movement of all factors of production and efficient allocation of resources. After four years’ operation and development, the Initiative has made remarkable progress and acquired recognition from even more countries. In particular, the US and Japan, who were skeptical at the beginning, have since 2016 begun to change their minds. The two countries,in addition to sending representatives to the Belt and Road Forum for International Cooperation in May 2017, have expressed a positive intention to participate in the Belt and Road Initiative. Therefore it can be asserted that the Belt and Road Initiative will inject new vigor into the prosperity and development of the Eurasian continent. Not only will it present a unique historic possibility to the Eurasian countries, it will also likely usher more than 60% of world population into unprecedented cohesion and prosperity.

Facilitating worldwide infrastructure construction

2、县域经济实力不强，综合竞争优势较弱。近年来，广西县域经济综合实力有所提高，但与我国经济发达的省份相比，广西县域经济总量还是偏小，整体实力在全国范围仅处于中等水平，并且远远落后于发达省份。如在第十五届全国百强县名单中，江苏26个、山东 21个、浙江 18个、辽宁7个、福建6个、湖南4个，而广西却榜上无名，这说明广西县（市、区）综合竞争优势太弱。另外，广西仍有国定贫困县28个、自治区定贫困县22个，农村贫困人口达341万人。

Connectivity is the top priority in the Belt and Road Initiative, and an important growth area for driving the recovery of the world economy prior to the onset of a new technological revolution. Take Asia, one area with the fastest economic growth, for example. All countries in the region are now vigorously moving forward with industrialization and urbanization.Infrastructure is an integral part in this process and will play an indispensable role. However, the infrastructure in Asia is rather underdeveloped and is the major bottleneck for economic growth in some countries. Despite the downturn of the world economy in recent years, infrastructure construction is still undergoing a period of accelerated development. According to a report entitled Meeting Asia’s Infrastructure Needs published by the Asian Development Bank in early 2017, Asia will need at least US$1.7 trillion of investment in infrastructure per year until 2030 to maintain its growth momentum.2 Asian Development Bank, Meeting Asia’s Infrastructure Needs, https://www.adb.org/sites/default/files/publication/227496/special-report-infrastructure.pdf. In addition, there is a demand for around US$300 billion for regional infrastructure construction every year. The IMF also indicated that the whole world is advancing investment in infrastructure, which will increase total demand in the short term and improve labor productivity in the long term. McKinsey & Company pointed out that from 2013 to 2030 the demand for infrastructure investment will be US$5.7 billion,which is 60% more than the total demand in the past 18 years. Along with the launch and progress of the Belt and Road construction, hard infrastructure in Eurasia and the world at large, such as railways, highways,airports, ports, will be seamlessly connected, forming a three-dimensional and comprehensive transport network which will offer convenient and fast circulation for regional trade. In addition, by developing in the direction of the abovementioned five major goals, various countries will have similar procedures in the realm of economic policies, port operation, customs,inspection and quarantine, and trade and investment will become more convenient. Meanwhile, the increasing people-to-people exchanges among various countries in education, science and technology, culture, tourism,business, etc., will help promote the formation and steady development of a slew of economic zones and corridors in this area.

The crux of East Asian economic integration lies in the success of Northeast Asian regional cooperation which includes both China and Japan.

China’s rise an opportunity for Japan’s economic development

Strengthened China-Japan Economic Cooperation in Bilateral and Multilateral Interests

Healthy and steady economic and trade cooperation is conducive to the interests of China and Japan who have long been important economic and trade partners. Since the establishment of diplomatic ties, the economic and trade cooperation between the two countries has become ever closer and deeper, with the volume of trade expanding 340 times in 40 years, from US$1 billion in 1972 to US$3.428 trillion in 2011. However, Japan’s unilateral declaration of the nationalization of the Diaoyu Islands in 2012 has strained bilateral relations, and the economic and trade relations have been seriously affected as a result. China-Japan trade and investment underwent a constant decline until the end of 2016. Benefiting from the slow recovery of the world economy, the bilateral trade and investment started to rebound in 2017,in particular, China’s direct investment in Japan witnessing a robust growth.Therefore, enhancing economic and trade cooperation is in the interests of the two countries and is also a reasonable result of their economic interdependence.

Strong economic complementarity between China and Japan

Despite the fact that China has left Japan far behind in total output,there still exists quite a big gap in their overall economic strength. In 2016,China’s GDP approached US$11 trillion, and Japan’s GDP was US$4.38 trillion. However, Japan’s per capita GDP was US$38,917.29, ranking 22nd in the world, while China ranked 74th with its per capita GDP of US$8,113.26. In fact, the total output should not be viewed as the sole indicator of a country’s overall strength. More indicators such as technical strength, high-end industrial manufacturing capability, enterprise innovation capability, energy consumption of per capita GDP and soft power, should also be considered. China is taking the lead in some areas like spaceflight,but it is undeniable that there is a gap to be bridged in management and in some other industries. For example, the powerful industrial strength and manufacturing capability has become Japan’s trump card, and the highly automated manufacturing industry makes Japan the world’s largest country in producing machinery and industrial robots. Through innovative structural adjustments in recent years, the Japanese corporations still firmly hold the commanding heights of world industrial technology and maintain control over the global industry chain in many areas. Take the electronic industry for example. Japanese corporations are expanding and transforming from B2C to B2B. In 2016, Japan had 45,220 patents, just next to the United States which had 56,440 patents, but in terms of quality, Japan possessed an 80%proportion of core technology patents, which was number one in the world.What’s more, Japan’s patent authorization rate reached 80%, indicating the high quality of its patent applications.

该车站站位范围主要控制管线为布置在沣泾大道道路两侧、埋深分别为4 m和8 m的污水管，因此考虑将车站设置在路中进行避让。

China and Japan are in different development stages and have different economic structures, which creates broad cooperation prospects for the two countries. Owing to the high-speed growth of the Chinese economy,some industries have become competitors of Japanese industries. However,Japan possesses unique advantages in many industries. As there is a certain complementarity between the two economies, there is a bright prospect for Chinese investment in Japan. The two sides have great potential for cooperation in services, new energy, low-carbon technology, etc. At a time when China and Japan are undergoing a new industrial transformation and economic structural adjustment, mutually beneficial economic and trade cooperation will certainly facilitate these efforts.

On January 16, 2016, the AIIB was officially launched in Beijing with 57 founding members, among which 37 are Asian countries and 20 are from Oceania, Europe, Latin America and Africa. By the end of 2017,the number of AIIB members reached 84 and exceeded that of the Asian Development Bank led by Japan and the US, which stands at 67. As an important financial platform to support the Belt and Road Initiative, the AIIB attempts to diversify financing channels for projects along the Belt and Road and strengthen public-private partnership construction. Through the open multilateral financial institutions represented by the AIIB, China, with the Belt and Road countries, will establish a tripartite operating mechanism led by infrastructure connectivity, highlighted by flagship projects, and supported by financial platforms. A better and faster development in Asia can thus be realized. An all-round connectivity through infrastructure improvement will be the core of future investment. The first priority is to build threedimensional transport corridors covering railroads, highways, aviation and waterborne transport. The second is to establish an energy network covering oil and gas transmission, hydropower, coal power, solar energy and wind power, etc. The third is to establish an information integration network composed of telecommunications, broadband and internet. For countries with high savings rates, joining the AIIB will help improve capital utilization and realize efficient capital allocation by guiding deposit funding to infrastructure.By providing new investment opportunities, the AIIB will also help boost economic growth and cope with problems such as unemployment. Besides,the AIIB will realize connectivity more effectively so that members can reinforce their diplomatic relations.

Since the beginning of the 21st century, economic globalization and regional economic integration have undergone robust development. Various conceptions about economic cooperation in the Asia-Pacific region have sprung up one after another, among which, the Asia-Pacific Economic Cooperation (APEC) is the one that has the largest scope and the longest duration of cooperation. At the moment, the Trans-Pacific Partnership (TPP)and the Transatlantic Trade and Investment Partnership (TTIP) are the two regional economic cooperation conceptions which have attracted the most attention. The two economic and trade arrangements, known for “high threshold” and “high standards,” are creating exclusive economic and trade cooperation blocs, setting new rules for international trade and investment,and gaining a favorable position in the transformation of world trade and investment, which will undoubtedly pose fresh challenges and threats to the economic development of emerging countries. The Belt and Road Initiative adopts an economic cooperation mode which is totally different from the TPP and TTIP arrangements. First, based on the principles of wide consultation,joint contribution and shared benefits, the Initiative will neither set exclusive standards and rules, nor limit countries and zones, let alone form a closed bloc. All countries and economies can participate in it if they so wish. As a China-initiated win-win international cooperation mechanism with great inclusiveness, it advocates feasible economic cooperation between different nations, different cultures, and countries with different levels of development,expands effective links with Eurasian markets, and boosts the development of diversified economies. Second, it emphasizes the win-win concept based on equality and cooperation. Adhering to the win-win partnership idea of peace, openness, mutual learning and mutual benefits, and based on policy coordination, facilities connectivity, unimpeded trade, financial integration and people-to-people bonds, the Belt and Road Initiative comprehensively promotes pragmatic cooperation to forge an open and win-win regional community featuring mutual political trust, economic integration and cultural inclusiveness. It respects other countries’ independent choices of path and development mode as well as strengthens the dialogue between different civilizations for the sake of realizing mutual compatibility and joint development. Therefore, as a new regional cooperation mode, the Belt and Road Initiative has some similarities, but more differences, with other kinds of cooperation modes in today’s world.

The Japanese economy has not yet recovered from the aftermath of the international financial crisis, and even “Abenomics” has not achieved the hoped-for results in stimulating economic growth. In effect, all countries and regions have their own cycles of economic development. If the 1960s was regarded as Japan’s youth with bursting vitality, then it came to energetic maturity in the 1980s, and started to show signs of old age when it entered into the 21th century. China is now in its prime of life with great potential for economic growth. As an export-dependent country, Japan is heavily reliant on the European and US markets, but the increasing facts in recent years suggest that China can no longer be ignored. China is pushing for rapid marketization, and is implementing a Western development strategy and increasing its urbanization. All this will provide Japanese corporations with more business opportunities, and inject new vitality into the Japanese economy. A Japanese research institute estimates that by 2026, Japan’s trade with China will increase to 35% of its total trade, and by that time China may have overtaken the United States to be the world’s largest economy. According to a report released by Nomura Equity Research, a one percentage decline in China’s GDP growth will effect a 0.5 percentage fall of Japanese economic growth, and further effect a possible decrease by 4% in the recurring profit of Japan’s large non-financial corporations. It is worth mentioning that,although Prime Minister Abe has adopted, since he began his second term, a strategic adjustment in his China policy featuring suppression, containment,and confrontation, he has not denied the importance of bilateral economic relations. At a symposium held in April 2015, he highlighted that China’s economic growth means an opportunity for Japan and for the world. In May 2015, before the Vice President of the Liberal Democratic Party Masahiko Koumura visited China, Abe asked him to convey his expectation of resuming the China-Japan strategic relationship of mutual benefit which is aimed at expanding the two countries’ common interests. When meeting with Chinese President Xi Jinping, on the sidelines of the G20 Hamburg summit in July 2017, Abe expressed the wish to strengthen high-level exchanges and set up mechanisms to deepen cooperation in the fields of trade, finance, tourism etc.,and to explore collaboration under the Belt and Road Initiative.3 “Xi, Abe Meet on Ties, Reaffirm Readiness to Strengthen China-Japan Partnership,” July 8, 2017, http://chinaplus.cri.cn/news/politics/11/20170708/8187.html.

Belt and Road providing business opportunities for Japan

在本次研究过程中，选取了346例老年糖尿病合并神经痛患者作为研究对象，探究优质化护理干预方式的作用和效果，在护理完成之后患者的整体基本情况良好，从血糖的控制情况、患者的神经痛情况及护理后的依从性方面均显著高于对照组，且差异具有统计学意义（P＜0.05）。郑丽燕[14]在临床上针对老年患者实施优质化护理干预后，对患者的相关糖尿病知识掌握情况、治疗依从性情况方面进行观察，发现采用优质化护理干预方式患者对于糖尿病知识的掌握情况及治疗依从性显著高于常规护理方式，与本次研究结果一致。

Furthermore, it is crucial to strengthen China-Japan economic and trade ties in the perspective of promoting Asia-Pacific economic cooperation.Currently, the world economy is undergoing profound structural changes,and the regionalization undertaken by the US and Europe is accelerating.Economic integration is also vigorously unfolding in the Asia-Pacific region where China and Japan are located. China and Japan, as the world’s second and third largest economies, will certainly play critical roles in Asia’s economic integration. The bilateral cooperation will not only raise Asia’s ability to fight against external economic risks, but will also determine whether economic integration can make decisive progress in East Asia and the broader Asia-Pacific region. China, Japan and Korea rank 2nd, 3rd and 14th in the list of economies in terms of GDP, and the aggregate GDP of the three countries is around US$15 trillion, comprising 20%of the world’s GDP and 90% of East Asia’s GDP. Nevertheless, the internal trade of the three East Asian countries only accounts for 19.2% of their total foreign trade. It is clear that the complementarities of these three countries have not been given full play. Therefore, East Asian economic development and integration rest on the cooperation among China, Japan and Korea. It can be assumed that the crux of East Asian economic integration lies in the success of Northeast Asian regional cooperation which includes both China and Japan.

Representing new trends in regional economic cooperation

工作督查组应分开层次，可分为由县委干部组成的督查组，成员单位组成的督查组，纪委、组织部和县委政府督查室组成的纪律督查组，县委干部督查组重点督查指导乡镇防指工作总体部署，行政首长负责制落实情况；成员单位督查组根据工作需要，进驻乡镇开展督查、指导和协助工作。

Belt and Road: New Platform for China-Japan Cooperation

The Belt and Road Initiative is not a closed entity but an open and inclusive initiative for economic cooperation irrespective of country or region. All countries and economies who wish to take part could join. The purpose of the Belt and Road is to seek common ground while shelving differences, and pursue peaceful co-existence and common prosperity. As a major country in Northeast Asia, Japan is an important economic partner of China and the two sides enjoy close economic and trade ties. China and Japan can identify priority areas for economic cooperation in third markets, based on each other’s practical needs in internal and external development.

No limitation on geographical scope under Belt and Road

The Belt and Road emphasizes synergy with development strategies of countries along the Silk Road Economic Belt and the 21st Century Maritime Silk Road. At the same time, the Belt and Road advocates the concepts of open and non-exclusive cooperation, which indicates no limitation on geographical scope. Synergies between the Belt and Road and other countries’ development strategies are composed on two levels. First, synergy at the bilateral level, represented by that between the Belt and Road Initiative and the Eurasian Economic Union. During President Xi’s state visit to Russia in May 2015, China and Russia signed a Joint Statement on Cooperation on the Construction of Eurasian Economic Union and the Silk Road Projects.4 “Joint Statement on Cooperation on the Construction of Joint Eurasian Economic Union and the Silk Road Projects,” May 8, 2015, http://china-trade-research.hktdc.com/business-news/article/The-Belt-and-Road-Initiative/Joint-Statement-on-Cooperation-on-the-Construction-of-Joint-Eurasian-Economic-Unionand-the-Silk-Road-Projects/obor/en/1/1X000000/1X0A3ABV.htm. According to the statement, both sides will endeavor to maximize the synergy between the Silk Road Economic Belt and the Eurasian Economic Union,ensure steady and sustainable economic development in the region, enhance regional economic integration and uphold regional peace and development.Both sides will support launching a dialogue mechanism on the synergy of the Silk Road Economic Belt and Eurasian economic integration. With the participation of experts from the two countries, both sides will also hold discussions to strengthen coordination in exploring common economic space. Besides, China has pursued the synergy of the Belt and Road Initiative with other countries’ development strategies, such as Mongolia’s Prairie Road, Kazakhstan’s new economic policy of “Nurly Zhol” or Bright Path, the United Kingdom’s Northern Powerhouse, and Poland’s Amber Road, etc.

Second, synergy at the multilateral level. This entails extending bilateral agreements to multilateral areas so that policy coordination and regional cooperation can be conducted at multilateral levels and a new path toward multilateral cooperation might take shape. For example,under the framework of the Belt and Road, relevant countries can enhance cooperation in a third market or make joint bidding on some projects in a third country. By taking advantage of new international financial institutions such as the Asian Infrastructure Investment Bank (AIIB), the Belt and Road may strengthen financial cooperation with other countries or international organizations such as the US and the EU. Through the cooperation among China, Russia and Central Asian countries on raw material supply, relevant countries can jointly build a cross-regional value chain, a financing chain and an industrial cooperation chain. A win-win result can thus be achieved.

飞播造林具有速度快、工效高、成本低，以及事半功倍的效果。辽西大部分条件较好的地块已基本绿化，剩余宜林地的多为高山远山石质山，人工造林难度大，成本高，可通过飞播造林，加快这些荒山绿化，本研究主要寻求多种技术方法提高飞播造林成活率与保存率。

AIIB: a new platform for China-Japan cooperation

为保证SBS改性沥青混合料拌和稳定性，本项目选用间歇式拌和机进行沥青混合料的拌和，由于SBS改性沥青黏度较普通基质沥青高，因此在拌和SBS改性沥青混合料时，一般会增加5～10s的拌和时间，以确保SBS改性沥青能够均匀裹覆在集料上。另一方面，由于SBS改性沥青所需的拌和温度较高，因此在实际施工过程中应严格控制沥青混合料的拌和温度，既要避免温度过低影响路面铺筑质量，另一方面还要防止温度过高引起沥青混合料老化。

Currently, China is vigorously implementing energy conservation and emissions reduction, and promoting the upgrade of its industries.The emphasis is placed on developing the industries in areas such as energy conservation, environmental protection, new energy utilization, medicine,medical equipment, and intelligent transportation. Japan holds a leading position in most of these areas. To be specific, Japan has an edge in ecological industries like haze control, climate change, biodiversity protection, sand storms mitigation, mercury contamination and marine litter, as well as in technical fields like energy conservation and emissions reduction in automobile engines. Japan is also experienced in municipal administration fields, such as urban public transportation and subway operation. Enhancing mutually beneficial cooperation between China and Japan in new areas is conducive to the economic development of the two countries, and the progress of bilateral relations. It’s worthwhile to note that there is a huge potential for agricultural cooperation. Japan is the world’s largest importer of food, with its imports accounting for one-tenth of world agricultural trade volume. Many unfavorable factors, such as the limited land resources, difficulties in adopting agricultural machinery in large-scale agricultural production and expanding the size of farms, have contributed to Japan’s low self-sufficiency rate in food of 40%, far below the world’s average. China has a vast territory, rich resources and widespread production areas, and is able to produce all kinds of highquality agricultural products. Moreover, the low prices and abundant supply make China one of the largest exporters of agricultural products in the world.

[13]Thesaccharinestatementsofloveandfriendship belie a harsher truth.In many ways,this is not a relationship of equals.

On June 6, 2015, China and Japan held their fifth finance dialogue in Beijing after delay of more than three years. A joint statement was released after the meeting, saying that the dialogue “helps further deepen bilateral pragmatic cooperation in finance.” There have been long-standing disputes within Japan regarding the AIIB. On Asian infrastructure construction, disparities still exist between Japan, an advocate of high-quality infrastructure, and China,which is trying to promote fast construction of infrastructure at a low cost.Japan’s former Finance Minister Hirohisa Fujii affirmed the positive effect of infrastructure and some experts called on the Japanese government to join the AIIB as soon as possible so as to make concerted efforts with other countries and regions in promoting development of Asian economies. But Japanese officials continued to express a cautious attitude towards the AIIB. On May 21, 2015, Prime Minister Shinzo Abe announced a new plan to provide about US$110 billion in aid for spreading high-quality infrastructure throughout Asia over five years. The Japanese funds are regarded as a counter to the AIIB.China has repeatedly expressed that the AIIB is open to Japan and invited Japan to join as a founding member with offers of positions of vice president and one director exclusively for Japan. But for now China’s willingness to cooperate has received no response. With the operation of AIIB and the normalization of bilateral relations, it is believed that China and Japan will identify areas where cooperation can be enhanced under the AIIB.

China needs time to catch up with Japan

Economic relations are a critical part of China-Japan bilateral relations. Since Abe took office, Japan’s trade with China has grown moderately, and was exceeded by China-Korea trade in the first half of 2015. In the Vision and Actions on Jointly Building Silk Road Economic Belt and 21st-Century Maritime Silk Road,5 “Vision and Actions on Jointly Building Silk Road Economic Belt and 21st-Century Maritime Silk Road”, Xinhua, March 28, 2015, http://www.xinhuanet.com/english/bilingual/2015-03/28/c_134105922.htm. China emphasizes that the Belt and Road should be jointly built through consultation to meet the interests of all, and efforts should be made to integrate the development strategies of countries along the Belt and Road. China also stresses the openness of the initiative and welcomes the participation of countries from other regions.One typical example is the United Kingdom’s participation in the Belt and Road projects.

The industrial restructuring processes in both China and Japan will be boosted if the two countries can go global together to explore third markets, based on the combination of Japan’s advanced technologies and China’s cost-effective industrial capacity.

在“四好村”建设方面，“住上好房子、过上好日子、养成好习惯、形成好风气”既是村民对美好生活的向往，也是第一书记为之奋斗的目标。2017年度，荣县五通村等20个村入选省级“四好村”，回龙殿村等74个村入选市级“四好村”。

该系统不足之处在于没有涉及电子书的多种格式，对于电子书市场格式多样化的局面未进行充分考虑，在后期的设计开发中，应加强对多种电子书格式的兼容性，并且应根据读者在正常阅读纸质书籍的行为习惯，尽量提高用户体验，保持与阅读纸质书体验一致。下一步工作就是要结合实际情况改善不足，完善系统功能。

China and Japan are major economies in the age of globalization.Severely weakening bilateral economic and trade ties serves the interests of neither side. First, as export-oriented economies, China and Japan are suffering from a lag in exports due to sluggish world economy. Infrastructure connectivity under the Belt and Road will explore more space and increase the efficiency of bilateral trade between the two countries. For example, about 30%of the cargoes in a logistics base jointly built by China and Kazakhstan under the Belt and Road are auto parts and electronic components from Japan. The logistics base will benefit Japanese companies by reducing transportation time from 3 weeks or so to just a few days. Second, China and Japan can explore the possibilities of cooperation in a third country.For instance, Japan has accumulated certain experience in improving operation and management of current railway lines in the Indochina Peninsula. The two countries can coordinate in railway projects in Indochina in order to avoid destructive competition. As the world’s major oil and gas consumers, China and Japan can cooperate with South Korea and India to establish an organization of Asian energy consumer countries, so that Asian energy importing countries can help each other in eliminating the Asia premium and achieve a win-win result. Besides,if China and Japan can go global together to explore third markets, based on the combination of Japan’s advanced technologies and China’s cost-effective industrial capacity, the industrial restructuring processes in both countries will be boosted, and international demand will significantly increase, which will accelerate industrialization in other countries.

Major areas of bilateral cooperation under the Belt and Road

The Belt and Road will set up a broader platform for China-Japan economic and trade cooperation and cultural exchanges. By giving full play to each other’s advantages, China and Japan can conduct mutually beneficial cooperation, which will bring rare opportunities for economic development in both countries and provide a tailwind for enhancing mutual political trust.

Looking ahead, China and Japan can pursue cooperation in several areas. The first is in the area of exploring third-party markets. After decades of development, China-Japan bilateral trade has become the world’s second largest next to China-US trade. The transformation of the Chinese economy to a domestic demand-driven model and the convergence of the two countries’ trade structures are leading to more severe competition between China and Japan. Therefore, the two sides should transcend the bilateral framework and find more cooperation space in third markets so as to boost trade growth. By taking advantage of Japan’s overseas operational experience and resources, and China’s capital and industrial capacity, the two countries can jointly explore cooperation opportunities in third markets and realize win-win results, especially in areas such as infrastructure, high-speed railways, energy conservation, environmental protection, artificial intelligence and energy resources development. The second area of possible cooperation is the logistics channel. Against the backdrop of the Belt and Road, China is connecting to the world through more diversified channels. Cross-border railways connecting China with Central Asia, Europe, Russia and Mongolia form the main structure of land transportation network. The China-Europe rail route, an important corridor for cross-border transport of China and Japan, should be a priority of cooperation between logistics companies of both countries. The third area of cooperation is financing. Based on multilateral platforms such as the AIIB and the ADB, China and Japan can cooperate in financially supporting some flagship projects of the Belt and Road. According to an ADB report released in February 2017, developing Asia will need to invest US$26 trillion in infrastructure from 2016 to 2030, or US$1.7 trillion per year. As the world’s second and third largest economies and two major powers in Asia, China and Japan can take advantage of the AIIB and the ADB, and financially support some influential and signature infrastructure projects on the basis of effectively managing risks and ensuring profits. The fourth area is in international industrial capacity cooperation at bilateral and multilateral levels. China used to be Japan’s production base, but with China’s huge market and Japanese companies’ advanced technologies and management experience, China and Japan can enhance cooperation in production efficiency and quality by joint R&D and production. In this way, both sides can realize innovation-oriented development, explore a larger market and lead bilateral economic cooperation to a higher level.Against the background of the Belt and Road, companies from China and Japan are sharing a huge potential of cooperation both in time and space.International industrial capacity cooperation might be a highlight of this cooperation. Japan has a wealth of experience in international industrial transfer, while China’s excess industrial capacity is urgently needed in other countries. In the future, companies from the two countries can jointly expand markets along the Belt and Road to enhance industrial capacity cooperation.

China-Japan cooperation should certainly go far beyond the abovementioned areas. With the implementation of the Belt and Road Initiative and the normalization of bilateral relations, China and Japan will surely share more areas of cooperation and achieve win-win results.