<P> On 5 February 1973, the PRC and Japan agreed to reestablish diplomatic relations . Negotiations for a Sino - Japanese peace and friendship treaty began in 1974, but soon broken off in September 1975 . The PRC insisted the anti-hegemony clause, which was directed at the Soviet Union, be included in the treaty . Japan objected the clause and did not wish to get involved in the Sino - Soviet split . </P> <P> However, the death of Mao Zedong in 1976 brought economic reform to the PRC, which led to the expected Japanese investment in the Chinese economy . </P> <P> In February 1978, a long - term private trade agreement led to an arrangement by which trade between Japan and the PRC would increase to a level of US $20 billion by 1985, through exports from Japan of plants and equipment, technology, construction materials, and machine parts in return for coal and crude oil . This long - term plan, which gave rise to inflated expectations, proved overly ambitious and was drastically cut back the following year as the PRC was forced to reorder its development priorities and scale down its commitments . However, the signing of the agreement reflected the wish on both sides to improve relations . </P> <P> In April 1978, a dispute over the territoriality of the Senkaku Islands (or Diaoyu Islands), a cluster of barren islets north of Taiwan and south of the Ryukyu Islands flared up and threatened to disrupt the developing momentum toward resuming peace treaty talks . Restraint on both sides led to a resolution . </P>

Describe the relationship between japan and ming china