Extending pragmatic trade and technology cooperation can help China and Japan improve their relations

Tensions between China and Japan over the Diaoyu Islands, known as the Senkaku in Japan, have alarmed trade and diplomatic circles around the world. The timing was particularly disconcerting because of the signs of a downturn in economic performance in both countries.

Conflict between China and Japan is not just a regional matter. Its implications for international peace and security are profound. Fortunately, long-term trade and technology cooperation between the two countries is a stronger force for peace than is publicly appreciated.