New Trends in Sino-Japanese Economic Interdependence under RCEP

Abstract

Despite the constant political friction between China and Japan, the economic and trade exchanges have been closely linked, and the degree of economic interdependence has continued to deepen. With the optimization of China's industrial structure and the enhancement of China's economic strength, the asymmetric Sino-Japanese interdependence is changing in a direction favorable to China, and China is gradually reducing its dependence on Japan's economy. The signing of RCEP marks the FTA relationship between Japan and China for the first time. A wide range of tax reduction commitments have been arranged, and mid-to-high-end intra-industry trade cooperation represented by mechanical and electrical products has been strengthened. RCEP is further facilitating the upgrading of China's industrial and export trade structure, thereby improving asymmetric interdependence. However, due to Japan's vigilance against China's rise and the deterioration of Sino-US relations, Sino-Japanese relations still face more significant uncertainty. Under the RCEP framework, opportunities and challenges coexist in Sino-Japanese relations. The two countries should actively leverage the advantages of economic interdependence to achieve mutual benefit and then promote political mutual trust through economic cooperation.