Financial Times FT.com

Better times for east Asia's two big powers

Published: December 22 2006 02:00 | Last updated: December 22 2006 02:00

Among the wars and disasters that count as the big political events of 2006, it is easy to forget that there was a significant piece of good news: the rapprochement between Japan and China. The moment he took over in September as Japanese prime minister, Shinzo Abe set about repairing the fractured Sino-Japanese relationship.

The importance of Mr Abe's move - and of China's response - should not be underestimated. The two great economies of east Asia are closely linked by trade and investment, and between them they account for four-fifths of the region's gross domestic product.

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