This book, first published in 1988, analyses the economic changes that China and Japan underwent in the 1980s – changes that not only underlined, but also added to, the complexity of the relationship between these two important Asian powers. China saw a key role for Japan in its modernization plans, but was disappointed by the unbalanced economic partnership formed. Japan moved towards a higher political profile, but did not find it easy to manage politico-strategic issues with China. The evolution of the relationship is of crucial importance not only to regional stability and development but also to broader Western interests in Asia.