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Despite of the fact that China and Japan are becoming the biggest trade partner with each other in recent years, political relations between both countries have deteriorated. Many people in China still concern over potential Japanese military resurgence, while more and more people in Japan worry about China?s military modernization and growing nationalism. The tension is unlikely to improve in the near future.The role of Taiwan in this China-Japan dispute is worth attention. While Taiwan has enjoyed de facto independence since 1949, it is still regarded by Chinese leaders as a renegade province, and the recovery of the island was considered in China as the sacred and ultimate goal. In recent years, Taiwan has increasingly attempted to act as a truly independent state, a development that could be attributed to political democratization on the island since the late 1980s. The question is whether the leaders in Taiwan will continue to push the envelope to a point short of de jure independence that will be intolerable to the leaders in Beijing. On the other hand, both Taiwan and Japan have shown strong intention in improving political relations between both sides. Creation of a Japan-Taiwan alliance is becoming a popular view in Taiwan?s strategic circle, and Japanese public have shown more sympathy to Taiwan?s international isolation. Japanese government even adjusted its policy toward the island state by including the Taiwan Strait into the sphere of concern in Japan-US Security Threty. These developments have been unthinkable in the past, because both China and Japan have committed to the ?One China? policy and because the Taiwan issue used to be excluded from China-Japan relations. This paper will examine the Taiwanese perspective of China-Japan relations. The author will outline the developments of Taiwan-Japan relations, identify the strategies Taiwanese government have utilized to strengthen the relations with Japan, and to assess the Taiwan factor in future Japan-China relations. In addition to analyses of secondary data, the author will also interview strategic scholars and even government officials to gain first hand information. ..PAT.-Unpublished Manuscript [ABSTRACT FROM AUTHOR]