The reason I am trying to spell this out is that I think it may also be worth pointing out the importance of this for Australia. Our repositioning as a regional (if not global) player in climate change, and historic contribution to trade negotiations within the region, would make any agreement between Japan and China highly advantageous for Australia and a great boon for Rudd.
. . . you talk about the incentive for Japan to improve environmental measures (the yellow fog over Kyushu). . . there is large incentive politically in improving the environment for China as well. The large number of protests and growing environmental movements altering politics at provincial and county levels (see Shanghai railway, Yuxi coal mine etc) also make environmental protection highly advantageous domestically. So in this way economic and political incentives to protect the environment coalesce fortuitously for both of them.
As usual, he’s on the money.