Why some regions are peaceful and others are not? For instance, Europe and Americas are more stable while other regions such as South Asia and East Asia experience recurrent bloody conflicts, and some, such as the Middle East, even are constantly on the verge of descending into war. (Miller 2007) A review of Sino-Japanese relations over the past two decades reveals that many of the tension-provoking issues between China and Japan have remained largely the same. All the arguments are surrounded by the sensibility of the two countries on the issue of historical conception, Taiwan Strait, Diaoyu/Senkaku Islands and oil and gas fields in the East China Sea. With the increasing attention paid to the influential factors from the rise of China, this thesis argues most of the conflicts are escalated by the power transition between China and Japan after investigating the declined Sino-Japanese relations by the following questions: what are the origins of the conflicts between China and Japan? Why could the power transition influence the Sino-Japanese relations? How does the power transition influence the Sino-Japanese relations and what are the reactions from both China and Japan on the power transition between the two countries? After testing one hypothesis that Sino-Japanese relations have deteriorated because of the power transition between China and Japan, this thesis would provide solutions for above problems and show the effect of China’s rising power on Japan and the Sino-Japanese relations.