Many think it is time for China to overcome Japan. Any support to Taiwan from Tokyo is a serious obstacle to Jiang's ambition. Here again, Beijing and Washington would be in opposite camps in a dispute over Taiwan's security. According to experts, the answer is economics, which strongly connect all the main actors in the Asia-Pacific region. China needs Japanese investment.
Japan needs the Chinese market.
So far this simple equation has been enough to overcome political problems. Until the Asian financial crisis struck, that is. China today needs even more foreign investment, which has become a rare product in Asia. Prime Minister Zhu Rongji is skilled at shock therapy, and has no plans to put economic reform on hold. The risk is a possible social explosion in China if rising unemployment is not quickly solved.