Despite a strong economic partnership, Japan and China are investing billions to lessen their dependency on one another. This development is occurring against the backdrop of a significant bilateral trade relationship that reached $308.3 billion in 2024.
Read More
Traditionally, the concept of economic interdependence suggested that countries engaged in high levels of trade are less likely to enter into conflict. However, the current geopolitical climate in the Indo-Pacific challenges this assumption. As the rivalry between the U.S. and China escalates, both Japan and China are recalibrating their strategies.
Tokyo and Beijing are now focusing on 'weaponized interdependence,' where economic ties, once considered stabilizing, are increasingly seen as potential vulnerabilities. This shift reflects a broader trend where nations seek strategic autonomy while still recognizing the necessity of their economic interactions, thus creating a complex relationship that could reshape the global economic landscape.