The flow of goods, capital technology and organisational know-how between Japan and China has increased dramatically, yet the relationship between the two countries remains far below its potential scope. The differing economic structures of the two countries, the mutual political distrust and the burden of an unsettled historical past stand in the way of a more intensive economic integration. This book combines up to date research from the German Institute for Japanese Studies (DIJ) with papers from a conference organised jointly with the Fujitsu Research Institute (FRI) and is an essential tool for academics and those doing business in East Asia.

DEEPAK BHATTASALI Chief of the Economics Unit and Lead Economist for China in the World Bank JUICHI INADA Professor at the Senshû University in Tôkyô and adjunct Research Fellow at the Japan Institute of International Affairs (JIIA) in Tôkyô. MASAHIRO KAWAI Chief Economist of the World Bank's East Asia and Pacific Regional Office YASUKO KAWASHIMA Senior Researcher at the National Institute for Environment Studies (NIES) in Tsukuba C. H. KWAN Senior Fellow at the Research Institute of Economy, Trade and Industry (RIETI) in Tôkyô TOMOO MARUKAWA Associate Professor in the Institute of Social Science at the University of Tôkyô KATSUJI NAKAGANE Professor at the Graduate School of economics and the Faculty of Economics at the University of Tôkyô MARKUS TAUBE Professor for the East Asian Economy and China at the University of Duisburg YAN ZHU Senior Researcher at the Fujitsu Research Institute (FRI) in Tôkyô