China and Japan: The Green Connection

Serious problems remain, however. Some Japanese firms are wary of selling their best technology to China out of a justified fear that it could be stolen. Beijing's lax protection of intellectual-property rights "is the biggie that is hampering technology transfer into China," says Jennifer Turner, director of the China Environment Forum at the Washington-based Woodrow Wilson International Center. In other cases, such as solar-power generation, the technology is simply too expensive for China.

Another hurdle is popular distrust in aiding China at all. The Japanese public questions why Japan should expend its resources assisting a nation that is rapidly becoming its chief competitor. The short answer is that if Japan doesn't, someone else will--and will reap the rewards. Yet Japan's Ministry of Foreign Affairs discontinued new loan projects to China this year, although existing loans will be honored, and other types of aid, like technical assistance, will continue.

The potential benefits of cooperation on the environment, however, are compelling. "The environment is a mutual problem," says Environment Minister Kamoshita. "So, concretely, we benefit by working together." If so, a repaired relationship between Japan and China could make the war against global warming a lot easier to fight.