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Despite significant differences between the economic & political cultures of Japan & the People's Republic of China, there have been significant achievements in Sino-Japanese relations that provide a basis to resolve more difficult, long-standing tensions, such as those dating back to the 1937 invasion of China & the earlier colonization of Taiwan. Diplomatic relations were normalized in 1972, & mutual understanding, economic & governmental ties, & two-way visitor traffic have increased substantially since then. Both Japan & China have contributed to stability in the region, but now, the changing status of both countries in the international arena have affected their bilateral relationship (a "neighboring friendship"). It is believed that Japan will eventually extend its regional influence, due to its historical relations with East Asia during WWII, its economic position, & its role in regional security in partnership with the US. However, to succeed, Japan will have to establish a cooperative relationship with China. M. Pflum