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Abstract
Against the theoretical background of media transformation and social change, this study delivers empirical evidence to support a recent theoretical call for 'scaling' and 'rescaling' media in China. A case study is used to illustrate how news institutions from different geographical locations within China differ in their news construction. News coverage of two health incidences sampled from six Chinese newspapers are analysed and compared. Two sets of hypotheses are tested. The study concludes that only by considering both the degree of commercialization and the geographical differences can we exhibit a relatively precise measurement of the everyday journalistic practice and its products.

Prior to the signing of the Long-Term Trade Agreement (LTTA) in 1978, management of China's economic relations with Japan was centrally planned. The LTAA agreement, however, allowed the two countries to develop special bilateral economic relations, with China relying heavily on Japan for capital and technology to fuel its modernisation drive and Japan depending on China's energy and raw materials to enhance its economic security. But China's marketoriented reforms led to a transformation of economic relations between the two countries. Balanced bilateral trade became difficult to sustain as China's oil production stagnated, and it became impossible to meet the huge demand for purchase of Japanese capital goods. As China reoriented its development strategy to adjust the balance between its different sectors, implementation of the LTTA agreement became harder to maintain. More generally, China's global economic interdependence increased with internationalisation of the Chinese economy, contributing to Japan's relative decline as a trading partner for China. Marketisation transformed the management of China–Japan economic relations, with decentralised economic interests becoming the driving force in the pattern of bilateral trade flows. From the mid-1980s, labour-intensive products replaced energy as China's major exports to Japan. With the rapid development of Japanese foreign direct investment (FDI) in China, changes in bilateral trade patterns became closely associated with industrial restructuring in each country. This paper focuses on how China's market-oriented reform and internationalisation led to changed economic relations with Japan. Reorientation of China's development strategy was associated with acceptance of the notion of international economic interdependence; this contributed to the internationalisation of the Chinese economy but also to the erosion of Japan's position as China's predominant trading partner. Internationalisation also strengthened the division of labour in China based on the principle of comparative advantage and further shaped the pattern of bilateral trade between China and Japan. As China–Japan bilateral economic links expanded, adjustments to domestic interests in one country increasingly resulted in the need for adjustments in the other, at times contributing to bilateral economic friction, such as trade and FDI disputes. Dealing with these disputes tested management of the China–Japan economic relationship which became increasingly driven by decentralised market forces that made control via a centralised bilateral mechanism such as the LTTA agreement no longer feasible. The need to develop multilateral rules-based institutions to govern bilateral economic interchange became acute.

The 1978 Long Term Trade Agreement between the People's Republic of China & Japan called for a special bilateral relationship between the two countries, but China's market-oriented reforms & internationalization have affected economic relations with Japan. With China's recognition of international economic interdependence, especially within the Asia Pacific region, & China's shift in its mix of goods, labor, & investments, Japan is no longer China's predominant trading partner. Domestic interests in both countries have affected exports, leading to trade friction. A centralized bilateral mechanism has proved to be unfeasible in the face of decentralized market forces. Japan & China have enormous differences in lifestyles, values, decision-making practices, & politics, but these may lessen as China approaches Japan & the West economically. A multilateral, rules-based framework in which Japan participates can facilitate China's integration into the world economy & resolve Sino-Japanese friction. 5 Tables. M. Pflum

The People's Republic of China's rapid economic growth & position as a major political & economic power presents a challenge to other major powers, in particular, Japan. Economic ties between Japan & China have strengthened in the last two decades, & Japan does recognize its cultural & historical debts to China. The tension between the two countries lies in their history of strategic rivalry, now in terms of their mutual relations with the US (eg, the US-Japan Security Treaty), relations on the Straits of Taiwan, territorial claims in the East China Sea, China's nuclear testing, & Japanese militarism. Successful management of their interests in the relationship depends on the structure of future regional & global arrangements. The remaining chapters in the book are summarized. M. Pflum