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Since the end of the Cold War China and Japan have faced each other as powers of relatively equal strength for the first time in their long history. As the two great powers of East Asia the way they both compete and cooperate with each other and the way they conduct their relations in the new era will play a big part in the evolution of the region as a whole. This textbook explores in detail the ways in which politics has shaped the thinking about history and identity in both China and Japan and explains the role political leadership in each country has played in shaping their respective nationalisms. Michael Yahuda traces the evolution of the relationship over the two decades against the framework of a rising China gaining ground on a stagnant Japan and analyzes the politics of the economic interdependence between the two countries and their cooperation and competition in Southeast Asia and in its regional institutions. Concluding with an examination of the complexities of their strategic relations and an evaluation of the potentialities for conflict and co-existence between the two countries, this is an essential text for students and scholars of Sino-Japanese and East Asian International Relations.