Does Sino-Japan "Cold Politics" Interact With "Hot Economy"?

For Sino-Japan, neighbors of these two countries,"cold politics and hot economy" situation has not changed, the existence of this conflict has become the focus of attention of all walks of life. The "Diaoyu Islands" event, have made the fluctuant and unstable "cold politics" further deteriorate in the two states. This situation makes the circles concern will the crisis in political relations between the two countries turn to economic and trade relations, and has launched a round of discussions about really will not the deterioration of political relations between the two countries influence the good economic and trade relations, and whether good economic and trade relations between the two countries could restrict and improve the further deterioration ofpolitical relations. So whether the "cold politics" like reality does has not affected the performance of "hot economy". If it does, how much effect it has on? Could the "hot economy" restrict "politically cold" in turn? If the mutual influence between them, then what kind of impact, and how mutual influence, this is the topic of great practical significance for Sino-Japanese, and it can provide a more rational policy basis for both countries.In this paper, we use the Goldstein (1992) scoring criteria to score the political behaviors initiated by other countries, quantify the political relations between the two countries, and obtain the information about the political relations between the two countries in1979-2012data. Then we use the1979-2012years of political relations data and economic partnership data make an empirical analysis. We find that the political relations between China and Japan could have a greater impact on bilateral trade, but this effect tended to decrease in the long run. Sino-Japanese bilateral trade can also have an impact on the political relations between the two countries, but its impact is smaller than the impact of politics on trade. In addition, we also find that political behavior initiated by China to Japan has a significant impact on the political behavior initiated by Japan to China, in other words, Japan is not a country that has sufficient economic rationality, it is more sensitive to China’s political behavior, and has many political retaliatory behaviors. Therefore, although the fluctuant political relations between the two countries indeed have an impact on the trade relations in the short-term, therefore, in order to maximize their economic benefits, they should try to avoid friction in the political area. Based on the inhibitive effect economic interdependence on political conflict, the two countries should continue to develop the economic and trade relations, which will lay a good foundation for peace between the two countries. However, we should also be conscious of the impact of economic interdependence on politic relationship is not enough to absolutely limit political conflicts happen, so relying on economic interdependence to initiate political provocation, the results may be "loss at both sides". What is more, reduce the "hostile" mood of Japan to China and its "security concerns" of China’s "Vise", will be to distinctly important to reduce the political friction and conflict between the two countries.