On Japan, the 120-page report said the country will face a “major reorientation” of its domestic and foreign policies yet maintain its status as an “upper middle rank power.”
It forecast Tokyo’s foreign policies “will be influenced most by the policies of China and the United States,” with a broad spectrum of options possible.
If China continues its current economic growth pattern, Japan will attach importance to maintaining healthy political ties and increase market access, possibly through forging a bilateral free-trade agreement, the NIC report said.
Coincidentally, I have read the US is currently #1 user of oil, Japan #2, China #3 but moving up fast to surpass Japan and soon the US.