Koizumi (left) greets Chinese President Hu Jintao shortly before their meeting at the Asia-Africaleaders summit in Jakarta.

 

Diplomatic Effect

Koizumi's visits of Yasukuni have undoubtedly influenced the diplomatic relations in the region in multiple aspects. Both foreign and Japanese observers claim that the Prime Minister Koizumi's actions have made it more difficult for the countries to resolve the already existing conflicts they have thus aggravating their impact.

Koizumi's visits are viewed as "challenges to South Korea." by President Roh Moo Hyun. China's position is clear having in mind it canceled talks between Koizumi and President Hu Jintao and between the foreign ministers of Japan and China.

The fact that important diplomatic meetings have been cancelled because of the Yasukuni issue implies that the controversial shrine and its role in the region is of great significance.The matter, therefore, cannot be easily discarded as a problem of nationalistic groups, but should be looked upon as a potential source of even more serious confrontation for provoking both the countries involved and their people to take a position.

 

Economic Effect

On the one hand some sources argue that the conflict has no significant effect on the business and economic ties of the countries in the region. Moreover, these economic ties and the idea of interdependence is what offsets the impact of the issue.

On the other hand, however, we cannot simply discard the effect diplomacy has on economy and business, especially on the international scene. Having in mind that China is Japan's largest export market and trade between China and Japan and South Korea and Japan has been growing, the importance of not taking actions that can be potentially harming for the economic relations between the Japan and its trading partners has been growing as well.

This explains why vast majority of Japanese firms operating in China think that political tensions are a serious threat for the expansion of economic links.

 

Conclusion

In conclusion we need to ask ourselves how far the countries involved are willing to go in order to defend their national pride and prove the correctness of their position.The diplomatic and economic interdependence in the of the counties in the region is an important part of their co-existence.Will the Yasukuni problem push the countries to risk the balance of the system that is an intrinsic part of their present and a necessity for their future development?

The answers of this questions are for you to find out.

Image taken from: http://www.worldpress.org/images/20050426-koizumi-jintao.jpg