Published as part of the "America's Alliances with Japan and Korea in a Changing Northeast Asia" Research Project.

Since 1992, the Japanese economy has been utterly stagnant, with signs of weak performance at every turn. Since 1997, Japan’s economy has experienced negative growth, a situation unprecedented in the postwar era. Most large Japanese corporations have engaged in extensive restructuring during this period, which has in turn contributed to 4.8 percent unemployment—higher than rates in the United States. Further, in 1998, the closure rate of small companies (3.8 percent) exceeded the start-up rate of new business ventures (3.7 percent).

This grim scenario has not always existed. Japan once fostered phenomenal growth, from the smallest of ventures to the largest of multinational companies. As is evident in organizations such as Sony and Honda, Japanese entrepreneurship once led the world in innovation. In the 1990s, however, this torch has passed to the U.S. economy, which has enjoyed an extraordinary boom, due in large part to Silicon Valley venture businesses. Why have Japanese entrepreneurial activities, formerly so robust, lagged behind?

In asking this question, other questions arise. Despite the present business climate, how can Japan revive its economy? How can it absorb its unemployed workers? Most important, how can Japanese entrepreneurship again take the lead, and restore the country’s economic health? This paper seeks to address these issues.

Published as part of the "Silicon Valley Networks" Research Project.

At the height of the Cold War, the dominant Western theories of alliance building in interstate relations argued that alliances tend to be motivated more by an external need to confront a clearly defined common adversary than by the domestic attributes of alliance partners. The newly reinvigorated U.S.-Japan alliance, however, together with the newly expanded NATO, seems to depart from the conventional pattern by emphasizing shared democratic values and by maintaining a high degree of ambiguity regarding the goals and targets of the alliance. Although these new features of American-led military alliances provide an anchor in an other- wise highly fluid situation in the post–Cold War world, many Chinese foreign- and defense- policy analysts believe that U.S. alliances with Asian countries, particularly with Japan, pose a serious, long-term challenge, if not a threat, to China’s national security, national unification, and modernization. The ambiguity of the revised U.S.-Japan security alliance means that it is at best searching for targets and at worst aiming at China.

China’s concerns about the intention, scope, and capability of the alliances are set against a backdrop of several major changes in the region: the end of the Cold War, the simultaneous rise of China and Japan, the post-revolution reforms of Asian communist regimes, and the United States as the sole superpower. China’s uneasiness about the U.S.-led alliances goes far beyond the systemic change in the post–Cold War world, however. Its roots lie in China’s inherent weakness in the games of major powers in East Asia and in relations with other major powers in the first half of the twentieth century.

This paper begins with an overview of the interactions between China and the U.S.-led alliances in East Asia during the Cold War. This is followed by an examination of the post– Cold War period and China’s policies toward the alliances. Finally, policy options are discussed.

The study will review select policy-relevant scholarly publications of the 1990s, when the U.S.-led alliances were perceived to have made significant adaptations to the post–Cold War environment and when China’s perceptions of and policies toward these alliances also changed significantly. The survey also includes some interviews with Chinese analysts.

Published as part of the "America's Alliances with Japan and Korea in a Changing Northeast Asia" Research Project.

The American security alliances with Japan and South Korea have been a major concern of
China’s foreign and defense policies. China’s position toward the alliances is determined by
its foreign policy and security theories, doctrines, and principles; by its approach to a re-
gional security mechanism in the Asia-Pacific region; by its bilateral relations with countries
in Northeast Asia; and by incidental issues such as territorial disputes in Asia in which it is
involved.

Published as part of the "America's Alliances with Japan and Korea in a Changing Northeast Asia" Research Project.

Published as part of the "America's Alliances with Japan and Korea in a Changing Northeast Asia" Research Project.

Published as part of the "America's Alliances with Japan and Korea in a Changing Northeast Asia" Research Project.

Published as part of the "America's Alliances with Japan and Korea in a Changing Northeast Asia" Research Project.

Published as part of the "America's Alliances with Japan and Korea in a Changing Northeast Asia" Research Project.