Understanding Sino-Japanese Trade Relations: Can History and Realism Explain Trade?

Abstract

Sino-Japanese relations are among the largest in the world, involving the world´s second and third largest economies. Bilateral trade relations are stable put political relations are rife with conflict. Much of the political discourse is riddled with references to the past, alluding to unsettled scores. China and Japan share a difficult history involving war and nationalism. The Japanese empire had since the late nineteenth century annexed parts of China along with Western colonial powers, taking advantage of the crumbling Chinese empire. Imperialist expansion aspirations led Japan to invade China, in which Japanese forces committed multiple war crimes. Since then, each country has constructed a narratiive of their history which glorifies its own deeds during that time, while antagonizing the other. The Japanese narrative is especially troublesome, the consequences of which have often led to violent protests in China, and halted bilateral trade. But in the long term, trade relations are mostly unaffected by politics. Conversely, Realism is a theory of International Relatons which focuses on the inherent need to seek out power as the primary driver for interstate relations. It can be useful in explaining Sino-Japanese relations