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Mutual Assured Production

Why Trade Will Limit Conflict Between China and Japan

Author: Richard Katz, Senior Editor, The Oriental Economic Report
July/August 2013
Foreign Affairs

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During the Cold War, the United States and the Soviet Union carefully avoided triggering a nuclear war because of the assumption of "mutual assured destruction": each knew that any such conflict would mean the obliteration of both countries. Today, even though tensions between China and Japan are rising, an economic version of mutual deterrence is preserving the uneasy status quo between the two sides.

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