The aim of this book is to provide a concise analysis of the importance the political economy of Japan by looking at her internal and external balance after World War II. The see-saw balance was maintained by the careful management of the internal industrial policy, economic structure, management system and economic strategies; together with the engagement of the external relations with the United States, the Asian region, the international trade and production and the Cold War requirements. Nevertheless, the September 11 incident is a wake-up call to re-think the political economy of East Asia. After almost half a century of economic development, East Asia -- Japan in particular -- must pay closer attention to the emerging problems and challenges that lie ahead for the politics of economic relations in this region.