New leader of the Democratic Party of Japan and incoming Prime Minister of Japan, Yoshihiko Noda, is confronted with many problems, among which Sino-Japanese relations are one of the most important.

Both countries need to be far-sighted in dealing with their bilateral relations, which are of great significance for the whole of Asia.

Some people in Japan have called on the country to focus on Asia instead of its relationship with the US to kick-start its economic recovery.

Asia contributed more than 45 percent of the global economic growth in 2010. Asia not only boasts a large population and market, it also has the capacity to create advanced technologies, which are the source of economic vitality for the world.

The common economic interests and shared cultural ties are solid foundations for Japan's return to Asia, especially cooperation with China.

But Japan should avoid any miscalculation of China's development. If Japanese politicians base their judgments only on the history of Japan, they are not likely to understand the peaceful development of China.

Japan's outward invasion and expansion after its Meiji Restoration caused great misery and suffering for East Asian nations. But times have changed. Predatory and expansive growth based on colonialism and the exploitation of other countries has long gone. Nowadays, science and technology, the information revolution and the green economy are the driving forces of sustainable development.

China has a huge population and vigorous domestic demand. The multi-step development from the eastern coast to the central areas and finally the western regions is continually expanding its domestic market, reducing the cost of science and technology and stimulating innovation. The development of the tertiary industry and modern service industry will absorb the surplus rural laborers in the process of urbanization.

That is to say, China is taking the opportunity of the science and technology revolution and information revolution to transform its industrial structure. It is unnecessary and impossible for China to copy the old model of developed countries as Japan did.

The economic aggregate of China and Japan is huge and both economies complement each other very well. Both countries have a huge potential to cooperate with each other in the low carbon economy and financial security.

As the largest developing country in the world, China needs advanced technologies and high-end products from Japan, and China can learn a lot from Japan. Meanwhile, as a developed country relying on trade and technology, Japan needs a big market such as China nearby as well as the daily commodities made in China.

China is not a threat to other countries and China's commitment to a peaceful resolution of all disputes originates from China's understanding of peaceful development. It will take time for Japanese politicians to understand this and it will take time for the world to cast aside its doubts about China's rise.

Leaders of both sides should take history as a mirror to the future. The cultural connection and historical ties between China and Japan have always helped the two countries overcome difficulties. Cultural exchanges and civil contacts remind us foresight is badly needed in balancing bilateral interests and building mutual trust and reduce erroneous judgments and impulsive actions.

The author is a member of China-Japan Friendship Committee for the 21st Century.

(China Daily 09/01/2011 page8)