Japan and China Economy in Senkaku/Diayou Island Dispute

Economy is in a state can not be separated. Because the economy itself can also be a benchmark for a country, where countries are classified as developed countries or developing countries. Economics itself is also associated with the sectors - sectors such as investment, trade (export and import), economic cooperation, the income countries (foreign exchange), natural resources and human resources, and economic growth. Economics is also a key pillar of a state in running the country and the economy could also be a way to explore cooperation between countries. In addition to the economy it can also be used as the initial or base of an inter-state problem (conflict or dispute).

The condition of the Japanese economy and China can be said to be very good. Both countries are the largest economic power in Asia, while Asia is the region with the most dynamic economy in the world and be an engine for the global economy. Any confrontation between the two countries will surely raise international concern about the stability and peace in Asia.

In the case of a dispute Senkaku Islands / Diaoyu between Japan and China, the Chinese continued to press claims sovereignty of the island and surrounding waters because these disputed areas suspected of having huge resources of oil and natural gas, similar to the disputed Spratly Islands in the South China Sea. Estimated 2005, the oil resources in the East China Sea is 100-200 billion barrels, enough to provide a good source of energy for the country 50-80 years. Access to oil resources is a priority for China as the second largest consumer of oil after the United States. This strain also harm the economies of both countries, which is mutually tegantung. According to the input-output toWorld Database, the contribution of Chinese demand for Japan's GDP in 2009 was 2.7%. Similarly, Japanese demand accounted for 2.1% of China's GDP. Interdependence is caused by cross-border production network between the two countries. However, intensify their antipathy among nations have weakened the economic relations between the two countries. Direct investment from Japan to China in the first half of 2014 decreased by 49% compared to the previous year's figure.

Through this dispute conflict can be seen that thing - things that support the economy of one of the triggers of conflict, such as the location of the island is very strategic and the amount of content of the natural resources contained within the island. By doing so the wheels of the economy of both countries to be disrupted.

I Made Danan Jaya (1801406622)