If the Sino-Japanese entente continues to improve as it has in recent years, it will not simply be due to a belated sense of post war reconciliation. Relations between Japan and China have been improving over the past half century due in part to mutually beneficial international trade, so it would therefore be in the interest of both parties to further improve this relationship into the new decade. Crucially, 95% of all international trade in Lanthanide or “Rare Earth” metal originates from China. These metals are essential components in a great deal of Japanese exports, from mobile phones to low energy light bulbs so it is crucial to Japan’s short-term economic prosperity to secure a strong working relationship with China.

Trade between countries does not necessarily lead to better relations between them. It does build mutual interests but it can also lead to competition over trade. In this case these rare earth metals are a potential source of confict due to china cornering the market. Countries like Japan (and more particularly the USA) are unlikely to accept china controling so much of a potentially vital resource for long. As with the USA cutting off oil supplies to Japan in 1940 this control can be disasterous forcing a war. While Japan and the USA were not each other's main partners the US did control the flow of vital resources to Japan and used this to try to control Japanese forign policy, which caused war in stead.

Similarly Britain and Germany were each others number one trading partner in 1914, this did not prevent them from going to war with each other.

The Democratic Party of Japan’s historic victory in last year’s general elections has been interpreted by some observers as an echo of the American elections: a seismic shift in Japanese politics which has the potential to permanently change Japan’s place in both Asia and the world in general. With China’s economic growth threatening to outstrip Japan as the world’s second largest economy, the onus is on the Japanese to make the effort to overcome issues such as post-war indifference and China’s sovereignty over Taiwan.

The swearing in of Yukio Hatoyama as President is of great interest to observers in mainland China: Hatoyama’s pledge to end visits by ministers to the Shinto Yakusuni shrine, which venerates all Japanese war dead including war criminals, demonstrates his party’s commitment to greater honesty and self-reflection on the subject of Japanese imperialism during the first half of the 20th century. This has been a cause for contention amongst many Chinese, who in the past have viewed visits to the shrine as proof of Japanese intransigence over their national conduct during the Second World War.

There is however very little sign that the Chinese are going to forgive even if there is a full scale apology from Japan. Essentially it is too late, it is now part of china's nationalism to be against Japan, this will be very difficult to overturn.

The DPJ has vowed to pursue a more even-handed foreign policy, pledging to play a greater role in Asian politics and improve relations with her neighbours, including China, whilst maintaining a strong relationship with the US. Although somewhat ambitious, diplomatic relations with China have already improved as overtures made by DPJ members towards the Chinese government have already been well received.

The DPJ as a party may have pledged to improve relations with Japan's neighbours including China but it doesn't entirely mean that the rest of the country is signed up to following suit. Furthermore the DPJ is a part that although it doesn't have a number of factions is a pretty broad church to speak. Finally don't forget that if for some reason the DPJ's coalition falls apart for instance over the problems over relocating US armed forces. Then the Liberal Democratic Party could easily come back into power and it will be more geared towards the US and less towards China