China’s Post-Olympic Economic Transformation and the Institutionalization of China-Japan Cooperation on the Environment

　　Author：Chen Zilei, Research Center for Japanese Economy, Shanghai Institute of Foreign Trade

　　Abstract：Sustainable economic growth and environmental governance are the two biggest challenges facing post-Olympic China. In order to keep environmental governance on track with the primary objective of sustainable economic growth, China has to change its traditional mode of development. For this particular scenario, Japan’s experiences on building its post-Olympic economy are useful. Following Tokyo Olympics in 1964, Japan successfully restructured its economic structure, which endowed its economy the capacity to withstand the two oil shocks in the 1970s. Moreover, during the same period of time, Japan has sustained consistent growth in external demands on the one side, and transiting into an energy saving and environmentallyfriendly society on the other. At the cessation of Japan’s ODA to China, both countries can advance environmental governance in China by institutionalizing bilateral cooperation in the area. The countries can achieve a “win-win” situation through shared foundations and through a market driven approach by strengthening their energysaving sectors and bilateral trade relations.