TOKYO -- In 1978, when Chinese leader Deng Xiaoping visited a factory belonging to what is now Panasonic Corp. in Osaka, he made Chairman Konosuke Matsushita an offer he couldn't refuse.

Stacked odds: A decoupling world should be pulling apart Asia's two biggest economies. Instead, Japan is leaning even more heavily into China. © Nikkei illustration
US-China trade rift creates havoc and opportunity for Asia's economic giants