Diploma thesis is trying to describe and analyse factors shaping current relations between China and Japan. My intention is to identify main factor, which shape and influence bilateral Sino-japan relations in long term view. I suggest that main factor is historical factor. Thesis explains the change in bilateral relations after Cold war. Also explains national myth-making, nationalism and current problems such as Yasukuni Shrine and text-book controversy. Last part is focused on territorial conflict between China and Japan, namely Senkaku/Diaoyu islands.