For the last four decades Sino-Japanese relations have been characterized by steadily growing economic and sociocultural interactions. Yet, greater interdependence has developed in tandem with bilateral tensions. Many analysts have attempted to explain the latter as a result of Japan trying to balance or contain the burgeoning growth of Chinese capabilities. In this article, we question and qualify this widespread understanding of Japan's response to China's rise by examining how Japan has handled China's rise between 1978 and 2011. More precisely, how has Japan dealt with China's long-term core strategic interests, which are embodied in the post-1978 Chinese “grand strategy” that is believed to have been instrumental to China's rise? Our main finding is that to a significant degree Japan has accommodated the rise of China rather than balanced against it.