How to engage China and Japan constructively

How to engage China and Japan constructively

Japan. (Bangkok Post file photo)
Japan. (Bangkok Post file photo)

At the moment, China and Japan are planning to work together on at least 52 business projects in third countries in the region, encompassing both the Indian and Pacific oceans. Certainly, these projects provide tangible ways for Asia's two largest economies to foster mutual trust and forge a stronger partnership. This, however, is still a work in progress.

Both countries have what the region needs. China has the capital and manpower, while Japan has the technological expertise and sophistication. Their new commitment comes at a time when the trade war between the United States and China reaches a fever pitch. The impact of the continued squabbling between the world's No.1 and No.2 economies is already evident as investors begin to shift their focus away from China by moving capital and production bases to other countries. In the long run, all countries in the region, no matter big or small, will be affected.

Asean should encourage China and Japan to work together for the common good of the region. It has an important role to play -- that is, it has to create an atmosphere that is conducive for the two Asian powers to cooperate and build a strong foundation for peace development and further development.

Both China and Japan are the bloc's most important and dynamic dialogue partners, with extensive cooperation spanning across multiple sectors. Since the early 1990s, Asean has provided a unique platform that provides a basis for cooperation between the bloc and China, Japan, and South Korea. The newly adopted Asean Outlook for the Indo-Pacific (AOIP) provides additional guidelines for China and Japan to work together with Asean.

AOIP is inclusive, with a focus on dialogue and cooperation to promote national resilience and protect human security. However, when China and Japan signed a memorandum of understanding in Beijing last year, they did not seem to fully understand the spirit of AOIP -- which was still discussed among Asean members at that time.

As a result, Thailand's Eastern Economic Corridor was mistakenly thought to be a pilot for a joint-business project between China and Japan in the region. In fact, with the AOIP and the improvement of China-Japan ties, opportunities in third countries have also greatly increased. Indeed today, China and Japan are friendlier to each other than ever before. One major contributing factor -- more important than both countries would ever admit -- was US President Donald Trump's "America First" policy.

After wreaking havoc for over two years, East Asian economies are convinced that Mr Trump is intent on destroying international trade, or indeed, anything that seems to go against his wishes. To counter these challenges, China and Japan have to get their act together and work closely to lessen the impact of the "America First" salvo. Mr Trump's tweets and his US-centric approach has strengthened solidarity among European countries, so it wouldn't be a surprise to see the same outcome in East Asia -- after all, Mr Trump has pulled the US out of the Trans-Pacific Partnership (TPP), and consistently undermined Asean's biggest trading partners.

Recently though, Mr Trump went a bit too far when he said that he planned to withdraw the US from the US-Japan mutual defence pact, which he called "one-sided". This move has the potential to upset the delicate alliances which the US had set up with Japan, South Korea, Australia, the Philippines, and Thailand following World War II (WWII). Japan is considered as the US's most important strategic ally in the Asia-Pacific, as the US Seventh Fleet is based out of Yokosuka port.

Throughout the past six decades, these alliances have provided security guarantees for the whole region. Any changes in the US-Japan alliance would further accelerate the erosion of US influence in the region, and create a power vacuum that could quickly destabilise this part of the world.

While most strategic thinkers do not take Mr Trump's comments seriously, for the Japanese public, these comments have created a so-called "psychological black box". For the far-right movement in Japan, Mr Trump's views have bolstered their calls for a stronger armed forces -- in other words, re-arming Japan to the teeth. Others are less sanguine, saying they think Japan must look for an alternative and rely less on the US for its security.

In fact, this view has taken hold for quite some time. Last year, Japan increased its defence budget to US$240 billion over the next five years, starting from this year. Japan's diplomatic posture is changing -- it no longer trusts the US as a reliable partner.

After WWII ended, Japan pro-actively engaged the US to ensure that the world's No. 1 superpower retains its presence in the region. Tokyo had never encountered any difficulties in persuading them, until Mr Trump came to power. It shouldered most, if not all, of the cost of stationing US troops and facilities in Japan. On its own, Japan also promoted the rule of law in Asean, through good practices on the ground.

Japan knows that the best way to preserve peace and prosperity in the region is by cooperating with China. After the US pulled out of the TPP, Japan took the lead and came up with a new framework. Now, its Comprehensive and Progressive Agreement for Trans-Pacific Partnership has put Japan at the forefront of the campaign for free trade and multilateralism.

Meanwhile, the world's No.2 economy has also emerged as a big guarantor of the multilateral trade system. In the months to come, their cooperation in pushing for the completion of Regional Comprehensive Economic Partnership will be pivotal in warding off future negative impact from uncertainties. It is imperative that Thailand, as Asean's chair, to wrap up negotiations on the free-trade framework this year.

In the upcoming Asean ministerial meeting, Asean foreign ministers will have the chance to meet their Chinese and Japanese counterparts. They should use the opportunity to convey the message that improved China-Japan ties and joint efforts in developing the region are crucial to sustaining peace and development in the region.


Kavi Chongkittavorn is a veteran journalist on regional affairs.

Kavi Chongkittavorn

A veteran journalist on regional affairs

Kavi Chongkittavorn is a veteran journalist on regional affairs

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