The Bank of Japan continued the policy of “Quantitative and Qualitative Monetary Easing（QQE）with a Negative Interest Rate” in 2017，but almost reached the ceiling for purchasable government bonds. The monetary policy is somewhat effective to the stock market and the real economy in Japan. However，there is still a long way to go to achieve the price stability target of 2 percent. The amount of the general budget reached a record high in 2017. Limited by low growth and high government debt，the potential for further fiscal stimulus decreased. Sino-Japanese trade and investment were more active than last year，but whether bilateral economic relation will improve is yet to be seen. Japan’s real GDP is expected to grow by about 1.6 percent in 2017 and is expected to grow by about 1.0 percent in 2018.