In 2012, Japanese economy has been hindered by both internal and external problems. The economic stimulus effect by post-disaster reconstruction is very sick. Handicapped by European debt crisis, the global economy has gone down, and Japanese economy also has shown negative growth for the second straight session and fallen into technical recession. Combined with the Diaoyu Islands purchase farce brought by Japan, Japanese exports to China plunged, and the economic recovery has not achieved the desired results. In 2013, stimulated by the unlimited quantitative easing and massive public investment, Japanese economy is expected to achieve faster growth. The Diaoyu islands dispute had serious consequences for Sino-Japanese economic relations, including: negative growth in bilateral trade and mutual investment,and redution in Sino-Japanese mutual purchase of treasury bills and direct trade, the negotiations among China, Japan and South Korea FTA have failed to start as scheduled, and the global economy has been affected negatively too. If Sino-Japanese relation does not deteriorate further in 2013, with the slow recovery of the world economy,and continuing rapid growth of Japan's economy and China's economy, bilateral economic and trade cooperation is expected to return to normal. <<