In the year 2018，Shinzo Abe won the LDP presidential election again in 2018，moving closely to become Japan’s longest-serving prime minister in the constitutional history. Prime Minister Abe has a solid power foundation but is also losing some support in Japan’s public opinion. In 2018，Japan is faced with great challenges brought by the current global change，which is similar with the situation as the end of the Cold War and the “Nixon shock” in 1971. In that context，Japan attempts to strengthen its strategic autonomy，hedge the trend of international power transition through various channels，seek for a balance position for great power relations and build multi-dimensional strategic partnerships overseas. Japan has made some progress in “returning to Asia” and assuming the leadership in regional economic cooperation，however，it is also restrained by some structural problems caused by its neighboring diplomacy. The Sino-Japanese relations has come back to the normal track of development in 2018，with the third-party market cooperation starting to gain some progress and rewards. There are favorable conditions as well as challenges for the steady development of Sino-Japanese relations. Therefore，great effort should be made in implementing the third-party market cooperation based on common interests，continuously expanding the positive side of the relations and restrain the negative side，effectively managing contradictions and differences，strengthening people-to-people exchanges and consolidating the social foundation and public opinion favorable for the development of Sino-Japanese relations.