The current state of ties between China and Japan is worrying. In terms of stakes on the Chinese side, Japan has $47.9 billion invested in China. Trade volume between Japan and China is expected to reach $200 billion in 2005. There are 16,000 Japanese companies in China. On the Japanese side, China has surpassed the United States as Japan's top trading partner. Politically, Japan is having simultaneous bad relations with its four closest neighbors all at the same time. South Korea sent four fighter jets to intercept a Japanese aircraft and some of its protesters cut their fingers as a sign of protest against past Japanese imperialism. Russian President Vladimir Putin's relationship with Japan seems to be in doubt after a very public display by the Japanese prime minister of visiting the disputed islands with Russia. Japan also has a nuclear North Korea on its doorstep and Beijing is the only link to North Korea and both countries have stakes in nuclear disarmament.
