The rise of China is a hot issue in the modern world. Particularly for Japan, which is an important neighboring country of China, whether China's rise is a threat or opportunity is a controversial issue. How to deal with China's rise has, therefore, become an important issue for Japan. This article intends to study Japan's China policy and the Sino-Japanese relationship after China's rise. First, this paper examines the impacts of China's rise on Japan. Secondly, it introduces foreign policy making in Japan. Thirdly, it analyzes the Sino-Japanese relationship under the game theory model.