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Japan and China Fact sheet released by the Bureau of East Asian and Pacific Affairs U.S. Department of State, June 26, 2000

Japan's relations with China suffer from lingering tensions over the legacy of World War II, territorial disputes, and Japan's potential security role in Asia. However, Beijing and Tokyo are working to improve ties. China is Japan's second-largest trading partner (after the U.S.), and Japanese direct investment in China, excluding Hong Kong, exceeds $13.0 billion.

The two countries have exchanged a number of high-level visits in recent years beginning with Chinese President Jiang Zemin's visit to Japan in November 1998, the first visit ever by a Chinese head of state. Then-Prime Minister Obuchi visited China in 1999 and recent high-level meetings have confirmed that both are intent upon improving relations. The two sides have agreed to hold Sino-Japanese security talks this year and that Premier Zhu Rongji will visit Japan in mid-October. The U.S. supports Japan's efforts to improve relations with Beijing, which we believe would benefit both countries and the region.

On Taiwan, Japan's historical involvement with the island, as well as the growing support for Taiwan among Diet members, continues to influence Sino-Japanese relations. Japan's approach to Taiwan is based on a 1972 Japan-China joint communique. The communique states that the Government of Japan "recognizes the Government of the People's Republic of China as the sole legal Government of China." The communique also states that:

"The Government of the People's Republic of China reiterates that Taiwan is an inalienable part of the territory of the People's Republic of China. The Government of Japan fully understands and respects this stand...."

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