ABSTRACT
Northeast Asia is the region of some of China's worst foreign relations during 21st century and in recent years has become even worse. Of the six states within the region China, Japan, South Korea, North Korea, and Mongolia, none of the bilateral relations are particularly warm, and several are openly hostile. The Chinese relations with Japan are strongly linked to the enduring US-Japan Security Treaty. Mongolia's President Bagabardi Natsagiin paid a state visit to China in January 2004, and his successor Enkhbayar visited in November 2005. Currency swaps are another example of public goods provision in economics which China has used both to improve trade relations and diplomatic relations in the region. China is still a net recipient of foreign direct investment, but its outward investments have grown substantially in the 21st century, including its northeast Asian neighbors. The border between China and North Korea remains tightly controlled.
