Prime Minister Wen Jiabao's recent trip to Japan, the first by a Chinese Prime Minister in seven years, was characterised by Wen as an ice-melting visit, to reciprocate Abe's China visit that was described as an 'ice-breaker.' During the visit, China and Japan reiterated their commitment to improving trade and economic relations and recognised the importance of improved bilateral relations for the entire region. Cooperation is now slated to cover a whole host of areas. Whether it translates into lasting political trust, however, remains debatable.

Wen's trip comes at a time when China is preparing for the 17th CCP Congress in the autumn of this year. President Hu Jintao's ability to ensure domestic stability and cordial relations with important neighbours will go a long way towards strengthening his position within the CCP. A re-shuffle of important official posts can be expected during the Congress and China cannot afford to waste its energies on diplomatic discord with Japan over issues of history that could threaten the domestic situation as the anti-Japanese riots had done in 2005.

With the Olympics in 2008 and the Shanghai Expo in 2010, China needs Japanese technology and investment more than ever before. The dexterity with which China handles its problems with Japan will reflect on its position as a responsible player in international politics. At a time when a resolution calling for official apology from Japan on the issue of 'comfort women,' is on the anvil in the US House of Representatives, China has displayed marked restraint on the issue. Furthermore, it has agreed to help Japan resolve the abductions issue with North Korea and responded to Japan's requests to support its bid for a permanent seat in the UNSC by expressing its understanding of Japan's desire to play a more important role in international affairs.

Wen's visit also frames the Chinese policy of seeking to allay Japanese fears about China's economic rise and military programme. Japanese Foreign Minister Taro Aso has been quite vocal in his criticism of increased Chinese defence spending. During Wen's visit, comments on China's military modernization were conspicuously absent. The move to establish a military hotline, the inclusion of Japan in policies for safe energy transportation and an understanding of Japan's desire to play a larger role on the global scene seem part of Chinese attempts to placate those viewing China as a military threat. Wen's emphasis on greater economic engagement between the two states and China's need to learn from Japan in areas like management and technological innovation seem directed at those who see China's economic growth as leading to a displacement of Japan in the global economy. By including issues related to energy and the environment, China seems to be at pains to discover synergies, while convincing Japan that Chinese economic growth is inclusive and predicated on the economic growth of its neighbours.

For Abe, the description of Wen's visit as a 'success' by the Chinese media is a vindication of his policy to prioritise Japan's relations with its immediate neighbours. While Koizumi was held responsible for the hiatus in bilateral relations, Abe is being credited with creating an atmosphere conducive to improving ties. Following Wen's visit, Japanese businessmen have been reassured about the safety of their investments in China. At the same time, Abe has assuaged the fears of the nationalists in Japan by refusing to comment on whether or not he will visit the Yasukuni Shrine. Abe has also paved the way for nationalist education in primary schools and is pushing for constitutional reforms to enable Japan's becoming a 'normal' country. His ability to balance the reform agenda and the desire to improve relations with China is commendable. Japan's neighbours in East Asia who have suffered Japanese aggression have taken their cue on the Japanese reform process from China, which has been muted in its criticism. So long as Abe is able to strengthen economic engagement with China, he will also be able to fend off criticism on domestic policies.

The fact remains, however, that Japan has intensified its military collaboration with the United States to facilitate greater interoperability of forces. Not only are the Patriot Advanced Capability 3 (PAC-3) interceptor missiles deployed in Okinawa and Iruma, Japan intends to install 30 PAC-3 launchers in ten sites and four SM-3 Aegis ships by March 2011. These deployments do not require a change in Japanese laws. Recently, Japan's House of Councillors passed the basic law for guarding its maritime interests, which envisages 12 measures including: protection of maritime resources; development of EEZs and protection of remote islands. It is on these three counts that Japan has disputes with China in the East China Sea. The basic maritime law is expected to help transform Japan from an 'island country' into a 'maritime power.' With the progress of Chinese naval modernization however, there could be a potential for future conflict.