China's star rises... Japan's sun sets
China's booming economy is serving as a locomotive for Asia. But with its growing economic might comes political and strategic clout. The Straits Times looks at how countries in the region are dealing with the giant's relentless progress
By Kwan Weng Kin
TOKYO - With new cosmetic products tailored to Chinese women's needs, Shiseido, Kanebo and Kose are hoping to take a big bite of the rapidly expanding Chinese market.
They are taking a path well-trodden by many other Japanese makers of goods ranging from electronics to cars.
President Hu Jintao -- AFP
This strong focus on China underlines the current attitude of business leaders here - that China is not a threat but an opportunity, and a big and growing one at that.
But even as China rises as an economic force, its growing political and strategic importance in the region is not going unnoticed.
Chinese Premier Wen Jiabao made waves when he turned on the charm with Asean leaders during their recent summit in Bali.
In contrast, Japanese Prime Minister Junichiro Koizumi was left somewhat in the shade.
Criticising him, the Mainichi Shimbun daily said: 'The new Asia that was born in Bali does not include Japan.
'Not that Japan was not invited, but Koizumi shied away and did not join in.'
Japan, it went on, acted like an outsider rather than as one of Asia's leaders.
Taking up the issue, respected columnist Yoichi Funabashi wrote in the Asahi Shimbun newspaper recently that Japan's presence in the region was diminishing, even as China's was on the rise.
'As a veteran Japanese diplomat stationed in South-east Asia defined it, Japan is 'squandering away its past legacy' in dealing with the Association of South-east Asian Nations.
'In contrast to China, which initiated a free trade agreement with Asean, Japan is still weak-kneed.
'According to Singapore's Senior Minister Lee Kuan Yew, it has become the norm in South-east Asia for China to take the lead and Japan to tag along.'
Some Japanese are palpably frustrated at being constantly compared with the Chinese, especially by Asean states, which see Japan losing out to China in exerting itself in this region.
'Japan will have to be more active in taking leadership in the region,' said a senior Foreign Ministry official.
'But we have no interest in competing with the Chinese in terms of political influence.'
Former premier Yasuhiro Nakasone feels Japan's diplomacy badly needs an overhaul.
He told the latest edition of the Shukan Bunshun weekly: 'Japan lags behind China in East Asian diplomacy.
'Japan should establish regular summits with China and South Korea, not just meet on the fringes of an Asean Plus 3 meeting. It's unsightly.
'Japan should also not compete with China over Asean, but should deepen exchanges with China.'
Even if politicians are slow to take up this idea, businessmen are streaking ahead.
Said Mr Hidehiko Mukoyama, a senior researcher at Japan Research Institute: 'These days, Japanese exports to China are growing faster than imports from China. That's why business leaders are no longer talking about a Chinese threat.'
The investment flow is even starting to go both ways. Chinese companies are being enticed by local authorities in Japan to set up shop here to turn out products aimed at Chinese consumers, who associate 'Made in Japan' with top quality.
Still, Japanese businessmen are worried not so much about China's competition but whether it can maintain rapid, yet stable, economic growth.
For this reason, Japanese companies are hedging their Chinese investments by continuing to invest in Asean countries.
Just as bilateral economic ties have flourished, so have human exchanges.
Tens of thousands of Chinese students study at Japanese colleges, and many Chinese work at Japanese firms.
But crimes committed by Chinese citizens - mainly burglaries but also the occasional heinous murder - have unfortunately coloured Japanese attitudes towards them.
Kanagawa governor Shigefumi Matsuzawa recently caused an outcry when he described the Chinese as 'sneaky thieves' who come here on student visas with the intention to commit crimes.
Yet when China launched its first manned space flight, most Japanese applauded it as the achievement of another Asian nation.
However, political journalist Hisayoshi Ina saw Beijing's space programme as having 'military objectives in the broad sense'.
Interestingly, China's space programme has also led some Japanese to conclude that the Chinese can do with less official development aid from Tokyo in future.
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