--Keynote Speech by Tang Jiaxuan at the Workshop on China-Japan Relationship at the Shanghai Institute of International Studies

Shanghai, 26 June 2012

Good morning, everyone. It's a great pleasure to join the workshop on "China-Japan relationship at 40" in Shanghai and I wish to thank the organizers for their kind invitation. On the occasion of the 40th anniversary of the normalization of the China-Japan diplomatic relations, it is very fitting and meaningful to gather together people of vision from both countries to review and summarize the development course of this relationship and look into its future. I salute all of you present, who have for long paid attention to and supported the growth of China-Japan relationship. I sincerely hope to see candid and in-depth exchanges of ideas among you and the sharing of your wisdom and I look forward to seeing positive and practical results from the workshop.

China and Japan are close neighbors, and the relationship between the two countries goes back to ancient times. Late Premier Zhou Enlai incisively summarized this relationship as: "two thousand years of friendship and five decades of misfortune". During the 2,000 years of friendly exchanges, the Chinese and Japanese people learned a lot from each other. These exchanges greatly boosted each other's development and contributed significantly to the progress of human civilization. However, starting from the late 19th century, the bilateral relationship went through an unfortunate period. In particular, the war of aggression against China launched by the militarists in Japan in the 1930s and 1940s caused untold sufferings to the Chinese people and also disaster to the Japanese people. For a long time after the war, China and Japan were in an abnormal state of estrangement and confrontation.

The normalization of diplomatic relations between China and Japan is an epoch-making event in the history of the bilateral relations, as it not only ended the abnormal state of relationship between the two countries and put the relationship back on track of peace, friendship and cooperation, but also profoundly changed the international and regional political landscape. Against the backdrop of the cold war, the reconciliation between China and Japan, which belonged to different Blocs, was a major contribution to peace and stability in Asia and the world as well as a model of good-neighbourly relations between countries with different social systems.

Dear friends,

History serves as a mirror for today. As we commemorate the 40th anniversary of the normalization of China-Japan diplomatic relations, we hope to find inspirations from history and better develop this relationship in the future. At this moment, we deeply cherish the memory of leaders of the older generation and people of vision from all walks of life of the two countries. Their extraordinary wisdom, courage and vision set a good example for us and can still be a guidance for today's China-Japan relationship. The normalization of China-Japan diplomatic relations leaves us with much important experience and inspiration:

First, the growth of China-Japan relationship calls for a strategic vision and an insight of the trend of the world and the era. In the early 1970s, after China's restoration of its lawful seat in the United Nations and US President Nixon's ice-breaking visit to China, there was louder call for resuming state-to-state relations with China in Japan. The leadership in both China and Japan were quick to realize that the conditions were ripe for the two countries to normalize their diplomatic relations. The then Japanese Prime Minister Kakuei Tanaka, following the trend of the times, accepted the invitation of Premier Zhou Enlai and led a delegation to China . The leaders of the two countries jointly signed and issued the China-Japan Joint Statement, thus normalizing the bilateral relations and opening a new chapter in the China-Japan relationship. Since then, at several critical historical junctures, the leadership of the two countries invariably made the right choices that accorded to the trend of history, such as the signing of Treaty of Peace and Friendship and breaking the political deadlock. Their farsightedness and strategic vision are what we should learn.

Second, the growth of China-Japan relationship calls for courage and a sense of historical mission. Given the huge trauma caused by the Japanese war of aggression against China and the tremendous ideological differences between the two countries, it is not hard to imagine the difficulties and obstacles in the way of normalizing relations between China and Japan. In the face of a major historical choice, the leaders and statesmen of the older generation of the two countries, bearing in mind the fundamental interests of the two countries and two peoples and with great political courage, resolutely made the strategic decision in defiance of opposition and interference. They fulfilled their historical responsibilities and their correct decision gave a strong push to the wheel of history.

Third, the growth of China-Japan relationship calls for the political wisdom of seeking common ground while putting aside differences. China and Japan are different in social system and ideology, and there are a number of sensitive issues such as those related to history, Taiwan, territory and sovereignty. In the negotiations for the normalization of diplomatic relations, the leaders of the two countries focused on long-term and overall interests, faced reality squarely and, in the spirit of "seeking common ground while shelving differences" agreed on the major issues concerning the political foundation of the bilateral relations and reached an important understanding, namely "set the issue aside for a while, and leave it to the next generation" on the Diaoyu Island issue. Thanks to the profound political wisdom of the leaders of the two countries, the normalization process was greatly accelerated and favorable conditions were created for the long-term and steady growth of China-Japan relations. We should cherish and uphold the important agreement and understanding reached by the leaders of the two countries of the older generation. At the same time, we need to create conditions to gradually explore ways for a transition from "seeking common ground while shelving differences" to "seeking common ground while resolving differences".

Fourth, the growth of China-Japan relationship calls for a strong commitment to friendship. Friendship is an unchanging theme of China-Japan relations that has lasted for 2,000 years. After the Second World War, people of vision from all sectors of the two countries, with strong belief in China-Japan friendship, developed non-governmental relationship under extremely difficult circumstances, used the non-governmental relationship to promote the growth of official relations and built up conditions for the normalization of diplomatic relations. After 20 years of relentless efforts, what started as a small stream grew into an unstoppable historical trend and finally brought about the smooth normalization of diplomatic relations. The history of China-Japan relations proved from two opposite angles that in cooperation, the two countries both stand to gain and can well realize a win-win situation, while in confrontation, both will lose and can only end up in a lose-lose scenario. Friendship is in the best interest of the two peoples and represents an unstoppable historical trend.

Dear friends,

Over the past 40 years since the normalization of diplomatic relations, the China-Japan relationship kept moving forward despite ups and downs and made unprecedented achievements. The two countries have signed four political documents and are working together on advancing the strategic relationship of mutual benefit. Our bilateral trade has grown from US$1 billion to more than US$340 billion, and mutual visits have increased from a mere 10,000 to five million and over 250 pairs of sister provinces, counties and cities have been established. With deeply intertwined interests and close ties unseen before, China and Japan have formed a "community of interests" in which neither can go without the other. The great progress of relations between China and Japan has not only delivered concrete benefits to the two peoples and strongly boosted their national development but also contributed significantly to the growth and prosperity of the region and the world.

At present, China-Japan relations are improving and growing on the whole. During Prime Minister Noda's successful visit to China at the end of last year, leaders of the two countries reached much important consensus and many concrete results were produced, bringing new and significant progress in the bilateral relations. Since the beginning of this year, practical cooperation in various sectors has moved forward in a step-by-step way, and as many as 400 events under the framework of the China-Japan Year of Friendly Exchanges have been staged. However, several notes of discord have surfaced in China-Japan relations. For example, some anti-China elements are rising in Japan. The Japanese right-wing forces have created troubles on the Diaoyu Island, issues concerning history, Xinjiang and Tibet and other sensitive questions, which have adversely affected the atmosphere of the celebration of the 40th anniversary of the normalization of diplomatic relations and seriously disrupted bilateral relations. Such developments deserve high attention from visionary people from various sectors of the two countries. Not long ago, despite repeated strong opposition of China, Japan went ahead to allow the "World Uyghur Congress", an anti-China separatist organization, to hold its so-called "fourth general assembly" in Japan. This was detrimental to China's territorial sovereignty and national security interests and seriously damaged the political mutual trust between the two countries. Some members of the "World Uyghur Congress" are on the arrest warrant of the INTERPOL, and some are masterminds and organizers of separatist activities in Xinjiang. These people even colluded with some Japanese right-wing forces and visited the Yasukuni Shrine together. What the two countries need to be alert to at the moment is that few far-right politicians in Japan, for their own political gains, are deliberately playing up the issue of buying a group of islets of the Diaoyu Island from private owners, in an attempt to provoke hostility between the two peoples and poison the atmosphere of China-Japan relations. Such ill-intentioned move is a major challenge and hidden risk for the current China-Japan relations. Visionary people of the two countries should take firm action against such despicable attempt to hijack the bilateral relationship and damage friendship between the two countries only for the gains of some individuals, and work together to uphold the overall China-Japan friendship since the normalization of diplomatic relations four decades ago to maintain and promote the sound and stable growth of China-Japan relations.

As a witness of the growth of the two countries' relations over the past 50 years or so, I am keenly aware of the unique sensitivity and complexity of this relationship and deeply worried about the many negative developments. The relationship between China and Japan is like a boat sailing against the current. It must forge ahead or it will be driven back. Stagnation should be avoided, as it will generate many problems, perhaps reverse the currently sound situation and deal a heavy blow to the bilateral ties. In particular, in light of the evolution of the internal and external situations of both countries, China-Japan relations have, to some degree, entered a period of complex adjustment and transition. In this context, the two countries should work very hard to address some deep-rooted problems, particularly the lack of political mutual trust and insufficient friendly feelings between the two peoples, so that they can promote the sound and stable growth of the relationship and carry it forward to bring it to a new high. At present and in the time to come, this is more pressing and important than ever, thus requiring the two countries to make greater efforts in the same direction.

Dear friends,

China-Japan relationship is one of the most important sets of relations for both countries. In the new international and regional situations, this relationship can only become more significant and the two countries will have more common interests. When difficulties arise in the bilateral relationship, the two countries need to pay more attention to it, take a long-term perspective to uphold the larger interests, strengthen dialogue, exchange and cooperation in all sectors, and ensure that the sound and positive factors will outweigh the negative ones and always dominate the relations. Committed to a policy of friendship with Japan, China has always attached great importance to its relations with Japan in its overall diplomacy. On the occasion of the 40th anniversary of the normalization of diplomatic relations, the two countries should review the past, look ahead into the future, and work together to create a new chapter in their strategic relationship of mutual benefit featuring mutual trust, mutual respect, cooperation on an equal footing and common development on the basis of the various principles set out by the four political documents and the important consensus reached between leaders of the two countries. At the moment, efforts should be made in the following areas:

Firstly, increase political mutual trust and appropriately address relevant sensitive issues. To establish political mutual trust, the two countries should take a strategic, comprehensive, correct, objective and reasonable view towards each other and truly take each other as a cooperative partner not a rival; adopt positive and friendly policies towards each other and earnestly respect each other's core interests and major concerns; and completely abandon the Cold War mentality and zero-sum game approach and promote mutual understanding and cooperation in the security field.

To this end, the two countries should maintain high-level exchanges and engagement to inject inexhaustible political driving force to the growth of bilateral relations; strengthen dialogue at the strategic level and between diplomatic authorities and carry out in-depth and timely consultation and communication on major issues in bilateral relations and their domestic and foreign policies and development trajectories; enhance candid exchanges between political parties and legislatures and build and expand consensus; and advance dialogue, communication and cooperation on defense and security to defuse suspicions towards each other and prevent strategic miscalculation.

I wish to stress that on major sensitive issues, the two countries should place importance on the larger picture of bilateral relations and the fundamental interests of the two peoples and manage and control the situation. In light of relevant consensus and understanding, particularly the spirit of the four political documents, the two countries should stick to the right direction of the growth of bilateral relations and resolutely stop those acts that damage political mutual trust and national sentiment.

Secondly, deepen practical cooperation and continue to expand common interests. China and Japan still stand at different development stages and have a lot to offer each other economically, hence huge potential for cooperation. China's steady and fast economic growth has provided and will continue to provide important business opportunities for Japan, and Japan's sophisticated industrial science and technology and economic and social management experience is worth learning by China for a long time to come. The two countries should adapt to the changes of the times, strengthen cooperation on a reciprocal basis, promote transformation and upgrading of business cooperation, and consolidate the economic basis for bilateral relations. Practical cooperation should be enhanced in key areas such as green and low-carbon economy, energy conservation and environmental protection, and high technology. Major projects should be promoted. Business cooperation should move from quantity to quality. And cooperation may also be actively explored in emerging areas such as healthcare and old-age support, thus opening up new room for business cooperation.

Now the underlying impact of the international financial crisis is not over and the European debt crisis still continues. Stronger fiscal and financial cooperation between China and Japan will help maintain financial stability of our two countries, this region and the whole world as well as the sound development of our economies. At the end of last year, leaders of our two countries reached five points of agreement on enhancing financial cooperation. On June 1, 2012, China and Japan started direct trading of RMB and Japanese Yen, a highlight in our strategic cooperation. This shows that substantial progress has been achieved in our financial cooperation and is highly significant to the deepening of bilateral economic cooperation and trade. The two sides should keep expanding and upgrading the cooperation.

Third, energetically carry out cultural and people-to-people exchanges and improve the impressions our people hold for each other. It is reported that according to the Eighth Public Opinion on China-Japan Relations 2012 Survey co-conducted by Japan's Genron NPO and China Daily, about 80% of respondents of the two countries believe China-Japan relations are very important and most of them think the relations are not satisfactory. In Japan, 84.3% of respondents hold a negative impression of China while 64.5% of the Chinese polled do not favour Japan. This shows there is still a long way to go before our bilateral relations could meet the expectations of the two peoples.

Although the survey is only for reference, we still need to take it seriously. In particular, we need to analyse its results in view of the reality, instead of making one-sided conclusions without seeing the whole picture. We do have prominent problems and difficulties in China-Japan relations, but the fundamentals have not changed and peace and cooperation remain the mainstream. Huge progress has been achieved since the normalization of our diplomatic relations 40 years ago and it has broad space and vast potential for further development. The Japanese government and society, especially the business circle and local governments, all hope to enhance cooperation with China and people of both countries believe China-Japan relations are very important. Therefore, the development of China-Japan relations are well grounded with favorable conditions. I believe the two sides should have greater sense of urgency, self-confidence and patience, further increase input and gradually reverse the downward trend of public opinions through unremitting efforts in multiple ways.

The two sides should continue to successfully hold the activities of the Year of China-Japan National Exchange and Friendship and maintain the amicable atmosphere for the 40th anniversary of the normalization of diplomatic relations. We should focus on and expand exchanges between key groups, including the youth, the media, social science professionals and young-and-middle-aged officials, and encourage them to play the role of bridge between the two countries for the improvement of bilateral relations. We should fully explore the shared origins of Chinese and Japanese histories and cultures as well as the oriental values that we both uphold. We should also make good use of our cooperation in modern pop culture and creative industries and carry out exchanges in a heartwarming way that is most welcome to the people, so as to extend people-to-people exchanges to the grass-roots level and forge a "bond of hearts" through "new encounters" of more people. We should jointly create a fair and amicable media environment and provide more positive and objective information to the media, with a view to increasing mutual understanding and friendly sentiments between the two peoples.

Fourth, enhance communication, coordination and cooperation at the regional level and make joint efforts to revitalize Asia. Both China and Japan are located in Asia and have based their strategic plans for development on Asia. In the process of Asia's rise and regional integration, China and Japan have increasing space of cooperation in all fields. As major countries in this region, the two countries should tap into their advantages, intensify coordination and cooperation and seek more converging interests. We should maintain close communication on major issues concerning the future pattern of regional cooperation and chart out the blueprint of Asia's development together. We should actively promote regional economic integration, develop China-Japan-ROK FTA and East Asia FTA at a faster pace and strengthen regional financial cooperation. We should explore ways to conduct practical cooperation on connectivity building and development of the Mekong subregional area so that our regional cooperation will bring about win-win outcomes. We should work together to push forward the Six-Party Talks and the building of the Northeast Asia peace mechanism, safeguard peace and stability of the Korean Peninsula and contribute to long-term peace of this region.

Fifth, carry out more sound interactions and cooperation on global issues and make due contribution to world stability, development and prosperity. The world is undergoing profound and complicated changes and in the era of globalization and information technologies, countries in the world are more closely inter-connected and interdependent. No country can handle the increasing global issues and challenges single-handedly. In the international community of today, the destinies of countries are becoming more intertwined where one's prosperity or adversity will incur that of others; therefore, it is widely recognized that countries should work together like passengers in the same boat and cooperate for win-win results.

As the world's second and third largest economies, China and Japan have important responsibilities for world peace, stability and prosperity. While Europe and the US do not have enough driving force for economic recovery and the world economy runs a greater downward risk, China and Japan should make full use of the multilateral platforms including the United Nations, G20 and APEC, keep close communication and coordination on maintaining global economic stability, promoting reforms of the international financial system and improving global economic governance mechanism, and show mutual support in opposing trade protectionism and other areas. We should carry out cooperation on the UN Millennium Development Goals, climate change, anti-terrorism, resources and energy security, food security, communicable diseases and other global issues. Since our two countries are both large importing countries of energy and resources, our enterprises should conduct strategic cooperation in resource exploitation, pricing and transportation.

Dear friends,

Shanghai, as China's largest city, has a unique and important place in China-Japan relations. It was the Shanghai Ballet's visit to Japan in 1972 that opened the door for the two countries to resume diplomatic relations. Today, among Chinese cities, Shanghai has the most exchanges, the deepest cooperation and the closest contacts with Japan. Shanghai's development is characterized by broad-mindedness and inclusiveness, just like the sea which accommodates a hundred rivers, and this has offered much inspiration for us in developing China-Japan relations. I am convinced that as long as both sides have a clear understanding of the trend of the times and follow it, view and handle bilateral relations from strategic and long-term perspectives and keep to the direction of developing China-Japan strategic relationship of mutual benefit, we will enjoy long-term peace, friendship, mutually beneficial cooperation and common development.

Thank you.