More that three decades since the normalization ofChinese-Japanese diplomatic ties, Japan's China policy has developed the aimof accommodating China into the regional order in Asia, as well as to theinternational community as a whole. This effort has manifested itself inareas such as the handling of historical issues and the provision of ODA.Since China itself understands that its current economic growth depends onthe introduction of foreign direct investments, so it probably wouldnâ??t besuch a simple thing to break down relations with either the United States orJapan.But that does not mean that silence must be maintained, as ithas until now, with respect to Chinese demands, many of which appearunreasonable to modern Japanese. If the governments of both countries arerepresenting the anti-Japanese or anti-Chinese feelings of their people,then I believe that it would be more productive for the people on each sideto endeavor to build the relationships they feel are mutually necessary.For instance, I have found that the Sasakawa Peace Foundation is likelyproviding funding for the School of International Studies at BeijingUniversity. Rather than Japanese governmentâ??s ODA, there is nothing wrongwith recommending improvements in curriculum based on private funding, or,rather, it would be best for the beneficiary of the funding to voluntarilydecide whether or not to concur with Sasakawaâ??s principles. Also, Japanesecompanies are investing directly in China, although Chinese companies havenot yet reached the stage of multinationalizing themselves in order toattract business in Japan. If opportunities for joint business projects byJapanese and Chinese companies are actively sought while using Japansspecial economic zones to make it easier for Chinese companies to enter,Chinese will experience in ever greater numbers what it means to live in asociety with a free economy. This will also lead to increasing reform withinChina itself. Of course, Japan should open its economy to invite Chineseinvestments.China-Japan undergraduate-level exchanges have come to be widely advertised.But a more mid-level exchange between the generations that will haveresponsibility for society into the future on both sides could include abroader base of participants than just the scholars researching historicalissues (something that Foreign Minister Li Zhaoxing is said to be activelyconsidering). Ample resources are available for effectively utilizing theknow-how of others such as technical experts and NPO organizers, who havealready been building friendly personal relationships with their Chinesecounterparts. ..PAT.-Unpublished Manuscript [ABSTRACT FROM AUTHOR]