In the recent APEC Summit in Peru, Chinese President Xi Jinping and Japanese Prime Minister Shinzo Abe had a 10-minute brief meeting, where both sides expressed the importance of improving bilateral relations. Anbound research team believes that the APEC Summit coincided with a major shift in international politics. As President-Elect Trump says the US will quit TPP while Japan is unable to lead the agreement, Japan is likely reverting to the RCEP talk, and will be competing with China to lead the integration of Asia-Pacific economy, at the same time strengthening security cooperation with the US and Australia, continuing its direction of slowing down the rise of China and weakening China's geo-political influence. The issues of territorial right, historical awareness and the South Sea will continue to haunt the China-Japan relationship.