China's Japan policy in the 1980s.

The signing of an eight-year private trade agreement between the People's Republic of China (PRC) and Japan on 16 February 1978, envisaging exchanges between 1978 and 1985 of goods worth US$10 billion each way, and the conclusion of the Sino-Japanese treaty of peace and friendship on 12 August 1978, laid the foundation for the PRC's Japan policy in the period after the fall of the Gang of Four.[1]
Under its present pragmatic leadership, the PRC appears to have been relying more and more heavily on the West and on Japan for capital and advanced technology for the realization of its 'four modernizations'. Japan's role in the PRC's modernization programme is certainly significant. After the first loan of 300 billion yen for 1979-83, the Japanese Prime Minister Yasuhiro Nakasone promised in his PRC visit in March 1984 a second loan of 470 billion yen ($2.08 billion) for 1984-90.[2] Similar perceptions of the Soviet threat have also contributed to the development of Sino-Japanese relations. It was reported that when Hu Yaobang, general secretary of the Communist Party of China (CPC), visited Japan in November 1983, he compared the PRC and Japan to rival heroes in a Chinese classic tale and stated: 'When they fought, both sides were weakened. But when they were united, they were invincible.'[3] Invincibility may be an exaggeration, but the complementarily of the two economies and the vast potential of their cooperation will obviously affect the power balance of the Asia-Pacific region, and in the future perhaps that of the world. This article intends to trace the evolution of the PRC's Japan policy since the fall of the Gang of Four, analyse the achievements and problems of the bilateral relationship, and assess the implications for the Asia-Pacific region. [ABSTRACT FROM AUTHOR]