Mutually Beneficial: The Reform And Opening Up Of Japan's Economic Assistance To China,

Japanese economy was developing in a high speed at the end of 1970s, it was resulted a strong-minded willingness of offering assistance to foreign countries, its official development assistance was also entered a rapid growing period. On the other hand, in china, external assistance was once demonized by government which restricted by the ideology of agricultural society and the thought of extreme left-wing. China's attitude toward external assistance could not be changed overnight through the opening up policy because this kind of conservative ideology was lingered in people's minds for a long time. It's experienced a gradual transformation process from introduce advanced technologies to absorb foreign capital. Therefore, if we take Japan's economic assistance to China as a dependent variable, then independent variable would not be Japan's assistance willingness or ability, but Chinese government's attitude toward foreign assistance. View from this perspective, the process of Japan's assistance to built BAOSTEEL from the end of 1970s to the middle of 1980s may actually present the above macro-backgrounds from a miniature dimensions.BAOSTEEL was built as a solution to change Shanghai's long term situation in short of crude iron and also served as an update program to the grievous outdated Chinese steel manufacturing industry. When China suffered severe technology and capital shortage by that time, Japan actively extended their helpful hands both financially and technologically. that not only made BAOSTEEL a important part of Sino-Japan economic and trade cooperation, but also a significant proof of friendship which aroused by affections between two countries, moreover, Japan's aid greatly shortened the steel manufacturing industry developing gap between China and developed countries. So to speak, the altruistic motive of Japanese assistance to built BAOSTEEL could be seen obviously.Assistance activities between countries were always pursuing self-interested aims. Thus, the character of self-interest is the precondition of foreign assistance. Speak from political perspective, Japan actively provided help to built BAOSTEEL is a symbol of their support for the construction of Chinese modernization. Japan believe that china's stability and development would beneficial Asia's peace and prosperity, it would also provide a stable surrounding circumstance for Japan's economic development, and consequently accordant with Japan's state interests. View this self-interest factor from economic perspective, on one hand, the leadership of Nippon Steel managed to gain large amount of profits through assistance to BAOSTEEL, on the other hand, they chose transfer less advanced technology to China in case of BAOSTEEL may become its rival. Take self-interest factor into account may added an inharmonious chord to Sino-Japan relations which still in honeymoon status by that time. But to sum up, when BAOSTEEL was built up, it actually narrowed steel manufacturing industry developing gap greatly between china and developed countries. From this viewpoint, Chinese government praised highly about Japan's assistance and expressed heart-felt appreciation for their help. Speak from this significance; it was benefit each other in terms of the process of Japan's assistance to built BAOSTEEL, and it also realized a win-win situation.Two points need to be mentioned here: first, originally, Japan's assistance to BAOSTEEL had nothing to do with Yen loans. But Japanese government transferred last two projects of the first set of Yen loans to commodities loans in order to move forward the phaseⅠproject of BAOSTEEL under the background of china's economic structure adjustment. Therefore, the case of BAOSTEEL was an exception, it was not underwent usual application cause of Japanese Yen loans, it was resulted from political decision made by Japanese government, and a goodwill activity conducted by Japanese government to promote Sino-Japan friendship which under the leading of aroused affections.