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Session II : "Rising China"
1. The Gist of Professor Takahara's Keynote Presentation (the full text is attached)
（1）China has a great potential in her economy; Chinese economy is the 6th largest. Her economic growth is set that by 2020 it should be four times larger and will be equal on a par with Japanese economy;
（2）Big problems do exist within China; Economic deflation, Social Welfare Policy (e.g. one child policy), environmental issues (e.g. water access, pollution), and economic gap ;
（3）Complexity of China: China would regard herself as a regional power that is growing to be an influential power supported by military strength as well as economics as a priority; China values principles but is very pragmatic (not a socialist anymore; 1999 definitional change in relation to majority ownership moving from public to private or mixed at least).
（4）Conclusively, China's self-portrait is to be regarded that she is shifting to the positive position for regionalism policy, regional cooperation policy, and regional integration policy. Simultaneously, the position of the United States is to be emphasized, and Japan should consider where to stand and what role to play under those conditions. Additionally, in this sense, it is reckoned that researchers dialogue should be promoted and the balance between the multi-dimensional identities of a region and individuals rather than a country should be pursued.
2. Salient Points of Comments of the Three Lead Discussants
（1）Comments by Professor Zhang
（1）China perceives that she is rising indeed. The phenomenon of 'China Rising' is unquestionably true.
（2）Integrating China into the region and benefiting through it are what she would expect. China is attempting to be a good neighbor in the region. Accordingly, Chinese business network should not be seen as a political structure and hence not a threat.
（3）The biggest challenge before China is the political, social and economic transition process. Particularly, Taiwan issue is the case. Also, the economic disparity within China is critical, which she regards possible to be solved through developing the middle class.
（4）China may attract more foreign investments from neighbors but in time become an engine for the region powered on its domestic demand. This will be a benefit for all in the region (Hence different from Japan/Korea models).
（5）As for the China-U.S. relations, they are not competitive; China benefits by joining the world system ran by the United States; thus only remained ground for conflict is Taiwan. China and the United States hold each interest with different nature.
（2）Comments by Professor Kim
（1）China's potential to become a great economic superpower does not necessarily mean China will be an economic or military threat.
（2）Since Japan stands in a good position due to its treaty alliance with the United States, Japan can calm the United States suspicions through its ties with the United States.
（3）The issue is really up to Japan and Korea as China is behaving in a fully normal and amicable manner (except for the Taiwan issue).
（3）Comments by Professor Wattanayagorn
（1）Rising China will be one of the greatest impacts on international politics in this century in terms of politics, economics and the others.
（2）China has very large armed forces, including nuclear weapons. The scale of Chinese military power is considered to be expanding.
（3）Strategic interests of China will overlap with the ones of the rest of Asian countries, particularly in Southeast Asia. She will share socio-economic interests with them in the near future.
（4）The stability of the Japan-U.S. relations is a critical factor for Chinese policy positions.
（5）ASEAN may offer itself as a 'middle force' acting among China, Japan and the United States. ASEAN has a potential in formulating the mediating role among them in terms of politics and economics.
3. Free Discussions by the Floor
（1）It is proposed that we should try to hold multi-level meetings between Japan and China, including ministerial level as was meant to happen but has not yet; it should be a 'business as usual' policy.
（2）'Rising China' would possibly cause various problems within China behind the rapid growth, which raises the necessity to identify the primary causes and their solutions.
（3）China would find the peaceful ways to solve the issues before herself, as far as China's behaviors are observed.
（4）The Chinese government enhances nationalism through domestic education and mass media, which emphasizes the criticism against the past policies of Japanese MOFA. This is true of Southeast Asia as well. Hereby, one question was raised as 'What to do with this aspect?'
（5）The fact that the large number of NGOs involved in the China-Japan relations does not necessarily mean that the relationship at the civil society level has been deepened in a good way. Their attitudes seem to be loutishly inconsiderate.
（6）'Rising China' and 'China's Threat' are different. China cannot be hostile at least until the Olympic Games to be held in 2008 or the Shanghai Expo in 2010. Various factors such as environmental issues, energy issues, aging society, pressures from financial liberalization, accession to the WTO, and deflation within the United States, Europe and Japan, will decisively influence China's future.
（7）As one different idea from the presentation, 'developmentalism' seems to be now flourishing in China, which was originated in Japan, and spread throughout NIES and ASEAN countries.
（8）What is the role of the Republic of Korea in the relations between China and Japan?
（9）The Japan-China relations are complementary, yet the China-ASEAN relations are competitive.
4. Panelists' Responses to the Questions and Comments
（1）Responses by Professor Takahara
（1）The primary concern of China goes to the question of 'what would happen when her rapid economic growth stops?" Social unrests caused by unemployment issue, nationalism and the others might cause the instability. Accordingly, the basic state capacity should be strengthened, and China is considered to need to enhance the rule of law.
（2）Additionally, the history education in China is also imperative. Considering history is a kind of 'mirror' to design the future of a State, history education is necessarily to be a primary concern as well.
（3）Steady communication in 'business as usual' way is the only way for us to build the better relations between China and Japan.
（2）Responses by Professor Kim
It is highly provocative and hard to answer the role of the Republic of Korea in the China-Japan relations. The Republic of Korea is suspicious about Trilateral Relations among China, Japan and the United States in terms of military balance. Considering the potential conflicts among those three, it is reckoned that the Republic of Korea is better to be optimistic in her political behavior. At the same time, it is anticipated that the Republic of Korea can play a central role in foreign diplomacy and cultures in the East Asian Region.
（3）Responses by Professor Zhang
（1）As a general trend, China's rapid economic growth is considered to last at least 30 years. Social transition such as urbanization would play a significant role. Therefore, the external dependence is considered to be not so large. The existing institutional framework within a region brings us for the optimistic side. Regional cooperation or regional collaboration is being enhanced.
（2）The critical issues before China is to be whether she can build the open policy or her political system, whether she can assure the participations by her people and their opinions, and how she can realize the legal system.
（3）As for nationalism, it needs careful thinking to assert that China is attempting to enhance the anti-Japanese emotions to lead the nation, and deals with the nationalism issues. Japan is not so a big factor than expected. China particularly cares unfair treatment. She holds a complex mixture of interests and concerns. It would be difficult to deal nationalism solely, from such perspectives.
（4）In relation to finance, Chinese Yuan should not be revaluated. This is because the revaluation of Chinese Yuan at present would cause various domestic problems in China, and affect negatively and complexly throughout the region. China is now preparing her domestic system for such a possible revaluation.
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