From distrust to mutual interests?: Emerging cooperation in Northeast Asia

In Northeast Asia, historical legacies, a lack of common identity and great power politics impeded political cooperation and economic integration. However, China, Japan and South Korea have exhibited a growing interest in political and economic cooperation since the late 1990s. This article examines how the three Northeast Asian countries have developed political and economic cooperation by using the concept of ‘multilayered intergovernmentalism’. It argues that despite political tensions between China and Japan, regional cooperation among China, Japan and South Korea has been promoted by talks and bargains among the heads of state and government who strengthened incentives for closer cooperation. Moreover, multilayered frameworks formed at the ASEAN Plus Three (APT) level, through the Track II mechanisms, and in issue-specific areas have provided valuable input into advancing regional cooperation initiatives. Whereas the APT framework offered incentives and opportunities to exchange views and information for closer trilateral cooperation, the outcomes of the research at the Track II were incorporated into the leaders' cooperative initiatives. The existence of issue-specific frameworks stirred talks and negotiations at the summit level.     

The Potential of China-Japan-South Korea Free Trade Agreement

This article explores the economic calculations behind the recent initiatives for the Free Trade Agreement (FTA) between the Governments of China, Japan and South Korea (CJK) and clarifies the implications for future regional economic integration. First, the proposed trilateral FTA signifies an advancement of China-centered regional economic integration. Regional economic integration led by China may also increase its political clout at the global stage. Second, the Governments of South Korea and Japan seek greater involvement in China's huge domestic market, but the former is concerned that a trilateral FTA will worsen its trade deficit with Japan, and the latter is afraid of losing its market shares in China and America to its Korean rival. Japan, therefore, seeks membership of both the CJK FTA and the Trans-Pacific Partnership (TPP). Third, China and the US' active involvement in regional economic integration will push the three countries to go forward towards greater economic cooperation. However, it will take longer for China-led Regional Comprehensive Economic Partnership (RCEP) and America-led TPP to bear fruit because of the large number of countries involved. Therefore, the conclusion of CJK FTA will be an important boost for the further progress of both RCEP and TPP. It will also be an important stabiliser for the trilateral political relations in the future.     

20世纪末以来中、美与东盟的三边互动关系——以权力转移为视角

中国的崛起对美国和东盟均产生重大影响,导致中、美和东盟在经贸、政治和认知方面形成了互动关系。由于经济领域的区域经济一体化、贸易转移效应和政治领域东亚一体化的排斥效应等因素,中美在东亚的权力关系发生了转移,东亚秩序经历了结构性调整。三方在经贸、政治和认知的互动相互影响并呈正相关关系,使得东亚的权力转移在和平中实现。互动中仍存在一些问题需要三方调适和合作加以解决。     

The rise of china and the future of east asian integration

China is rising as the fastest growing largest economy and thereby leading a market-driven economic integration in East Asia. At the same time, nationalism is also rising and constraining East Asian countries from forming a state-driven regional community. This paper examines the political economy of interdependence and nationalism that is taking place in East Asia. Simply put, its central theme is that the degree of interdependence, especially between China and other countries, is deepening, and as a result, is pulling East Asia toward regional integration, but due to the rising tide of nationalism, it is far short of forming an actual community. In order to build a community, therefore, such economic trend must be propelled by political leadership and will. In elaborating on this thesis, the paper analyzes the trade and production networks centered on China, the efforts to promote regional integration in ASEAN?+?3, the nationalist rivalry between Japan and China in negotiating FTAs, and the difficulties in achieving Sino–Japanese reconciliation. Finally, the paper proposes a Northeast Asian Forum among Japan, South Korea and China while the US remains as a stabilizing force in East Asia.     

Northeast Asian Economic Integration: A Region in Flux

Over the last decade, essentially since the Asian crisis of 1997–98, the economic integration of Northeast Asia has been marked by three overarching trends. Economic relations have become: 1) more institutionalized; 2) more “Asian;” and 3) more China-centric. These macro-trends are demonstrated and analyzed in the paper. But by way of anticipation, numerous counter-cutting facts need also to be kept in mind. In essence, recent trends, notable as they are, have by no means reversed three counter-realities: 1) economic ties are still largely driven, less by governments and formal arrangements, than by corporations in search of profits and production efficiencies; 2) despite growing economic interdependence across Northeast Asia and between that sub-region and Southeast Asia, Japan, China and South Korea remain heavily linked to global, and particularly US, markets; and 3) though China is an ever important hub in Northeast Asian trade and investment, Japan remains by far the most powerful economic player in the region.     

Preparing for the best: involving North Korea in the new pacific community

The United States, Japan, and South Korea should be considering ways and means to involve North Korea in regional cooperation. In the economic sector, the United States and South Korea might support the Northeast Asia Economic Forum and the Tumen River Area Development Project. The United States might also encourage Japan or South Korea to lead discussions on the possibilities of an Association of Northeast Asian Provinces, a Northeast Asian Development Bank, a regional labor market, and forums on regional transportation and communication, shipping and navigation, and air traffic management. All should support North Korea’s joining the World Bank and the Asian Development Bank. The need to monitor or retrieve the dumped Russian nuclear submarine reactors in North Korean waters is a serendipitous opportunity for broaching multilateral environmental cooperation.     

The Cheonan Incident and East Asian Community Debate: North Korea’s Place in the Region

The East Asian community debates project the region as one integral unit. Rapidly shifting landscapes explain the tension between the old order and emerging hierarchy where North Korea plays a crucial role. This paper analyzes North Korea’s place in the East Asian community debates by examining the regional governments’ reactions to the Cheonan incident. The responses and circumstances of South Korea, Japan and North Korea to the sunken ship incident demonstrate three dynamics. First, domestic political needs of the regional government supersede normative Community rhetoric. Second, manageability of the North Korean regime will determine the next regional hegemon. And third, the community debates need to include North Korea for viability.     

China and Northeast Asian regional security cooperation

Northeast Asia is a particularly complex area in the world, especially in terms of security. China advocates a new concept of security based on equality, mutual benefits, consultation and cooperation. China is making great efforts to reduce regional hot issues and lower regional tensions under the conditions that a regional security framework has not been completely established. In recent years, China has actively participated in regional security cooperation and promoted the construction of a security institution. The Six-Party Talks are of great significance not only for resolving the nuclear issue on the Korean peninsula, but also for forming a relatively formal framework of security organization. Among the various East Asian security cooperative relationships, that of China–Japan–Korea is critical with regard to East Asian stability. At the same time, however, China should face and deal with some problems concerning the promotion of Northeast Asian security cooperation such as how to regard the presence of US–Japan and US–Korean military alliance, let Korea play the dominating role in Northeast Asian security cooperation and eliminate the Cold War mentality.     

Diplomatic Objectives in Trade Politics: The Development of the China-Japan-Korea FTA

This article seeks to analyze the development of free trade agreement (FTA) policies adopted by China, Japan, and South Korea with particular interests in the trilateral FTA. It seeks to address what the determinant factors that have conditioned the development of the trilateral FTA are. While the three governments began the informal joint study of the trilateral FTA in 2003, they pursued diverse trade strategies that disturbed a shift to formal negotiations. However, China's strategy to hedge against the US influence in East Asia became a catalyst in shifting from the long-lasting study stage to the launching of negotiations. Moreover, Japan's strategy to participate in TPP negotiations as a soft balancing against China through closer political linkages with the United States weakened China's and South Korea's willingness to engage in the trilateral FTA positively. Thus, the three countries’ commitments to the trilateral FTA were primarily confined by their specific diplomatic objectives responding to the political-economic evolutions in the Asia-Pacific region.     

North Korea’s Resurgence and China’s Rise: Implications for the Future of Northeast Asian Security

Today, Northeast Asia’s security situation is changing rapidly. North Korea is reviving and China’s power is growing at an alarming rate. While the U.S. continues to suffer diplomatically and militarily in the Middle East and from international terrorism, China’s and North Korea’s power is likely to futher increase, polarizing the Northeast Asian security structure, with South Korea, Japan (and Taiwan) all allied with the U.S. versus North Korea allied with China. The liberal democracies should pursue peace with North Korea and China to preclude the situation from aggravating, but should be ready in the longer term to meet, in diverse ways including strengthening their alliances, the challenges posed by rising powers.

Trade between Bohai of China and Korea: An international perspective

This article investigates the current state and future prospects of trade between South Korea and China, with a focus on China's Bohai region. First, it compares basic economic profiles, including trade patterns of China, Bohai, and Korea. Then, it explores trade prospects between these economies using the aid of the indices, such as export similarity and trade complementarity. The article also examines the trade creation and diversion effects of trade between Korea, China, and Bohai during the last decade, and, finally, presents alternative future trade projections. Editor's Note: The three articles in this section were originally prepared for and presented at an international conference on Regional Development in the Yellow Sea Rim, in February 1991, in Seoul, Korea. The conference was part of a two-year collaborative study on regional development in the Yellow Sea Rim, involving researchers from China, South Korea, the United States, and Japan. The study was organized by the East-West Population Institute of Hawaii and supported by many research institutions and government agencies in China and the Republic of Korea. In particular, the State Science and Technology Commission of China and the Korea Research Institute for Human Settlements are acknowledged for their generous support.     

The future of coastal development in the Yellow Sea Rimlands

With its strategic location in East Asia, the Yellow Sea Rim is becoming an important economic region, where the socialist economies of China and North Korea and the market economies of Japan and South Korea interact and exchange for their mutual benefit. In light of the recent rapprochement among Northeast Asian countries, the article describes the emerging pattern of development in the Yellow Sea Rim. It assesses the potential gains of opening up the region by assuming a complete or partial removal of political barriers. Anticipating the future of cooperative regional development in the Yellow Sea Rimlands, the article discusses regional strategies and key issues involved in cooperation, in particular between China and South Korea.     

俄罗斯在东北亚地区的对外能源合作

东北亚在俄罗斯当前能源政策和未来能源战略中的地位非常重要。今后,俄罗斯将进一步加大对中国、韩国和日本的油气出口,推动东北亚地区内国家层次和企业层次的多边合作,最终极大地促进俄罗斯与中、日、韩三国形成长期、良好的能源合作关系。     

“东亚共同体”建设的障碍与出路:韩国的视角

本文认为推动韩中日三国的合作是实现"东亚共同体"目标的关键所在。原因不仅在于韩中日三国经济占整个东亚地区经济的比重较大、对世界的影响力极为重要,还在于韩中日三国间开展经济合作的难度较大。中国学者大多认为,由于历史问题、领土纷争、政治制度差异以及区域外美国势力的干预,韩中日三国间缺乏信任。而这一系列的因素正是阻碍东亚一体化建设进程的障碍。本文认为,欧洲整合的历史经验即新功能主义理论,值得东亚地区学习与借鉴。韩中日整合的示范作用,势必外溢到整个东亚地区,进而带动区域一体化进程,从而最终实现"东亚共同体"的目标。     

ASEAN and Northeast Asian energy security: Cooperation or competition?

For several decades, Northeast Asia has invested heavily in ASEAN’s fossil fuel industries. This investment has been fundamental in ASEAN’s industrial and regional development and has also been a main source of foreign exchange. In recent years, however, while energy demand in Japan and Korea has been slowing down, it has begun to increase rapidly in ASEAN at a time when some of its own oil and gas fields are beginning to decline. The sharp rise in ASEAN's demand for energy is partly the result of massive FDI from Northeast Asia in manufacturing enterprises. This investment is enabling ASEAN to become less dependent on the export of fossil fuels for foreign exchange. Indonesia has already announced it is reducing its energy exports to Japan because it wants to use the fuel domestically. Without doubt, the other ASEAN energy exporting countries will also soon be reconsidering their energy export contracts with Northeast Asia.     

Flawed Mediation and a Compelling Mission: Chinese Diplomacy in the Six-Party Talks to Denuclearise North Korea

This paper examines China’s role in the Six-Party Talks, a multilateral initiative with the aim of denuclearising North Korea. As North Korea’s behaviour has become increasingly provocative, evidenced by the Cheonan and Yeonpyeong Incidents and the newly unveiled uranium enrichment plant at Yeonbyon, China’s indecision in dealing with the deteriorating situation has dramatically undermined Beijing’s ability to continue successfully to play the leading mediator role. Yet if China fails to take decisive action now, the consequences could be dire. Further deterioration in North Korea’s behaviour could trigger a nuclear arms race, severely hamper regional economic development and even create a geopolitical split in East Asia, leading to a confrontation between the US, South Korea and Japan acting together on one side, and China, Russia and North Korea aligned on the other. The factors that have prevented China from making further progress in the diplomatic process are many and various and this paper will reveal the complexity of the North Korean issue for China. Foreign academics and policy makers have tended to attribute China’s indecision over North Korea to China putting its own security interests first. But this is far too simplistic a picture of the complex relationship that China has with North Korea. There are a host of factors at work that need to be taken into account to understand the present impasse in the diplomatic process. These factors include China’s emotional ties to North Korea and empathy with its position as the weakest party in the Talks, the conflicting attitudes within the Chinese government itself towards the North, and the competing interests and lack of trust between the different stakeholders. It seems that for the foreseeable future, the North Korean issue will continue to plague Chinese foreign policy until all the parties involved act as a collaborative body to reach a consensus on how to resolve the situation.     

东北亚“核威慑效应弱化”及其应对思考

东北亚地区呈现的"核威慑效应弱化",对地区安全构成消极影响。东北亚以及美国的核威慑投入在持续,美对韩日核保护,韩日谈论核武器,朝鲜发展核武器,同时萨德部署与《中导条约》失效降低了中俄的核威慑能力,核传统的遏止功能、保护能力与可信性降低,核扩散趋势增强,核威慑悖论现象显现。"核安全保护不完全"、核拥有国数量增加,是探讨"核威慑效应弱化"成因的有益路径。建立新时代的核理论,揭示并审慎研究核武器化与民用化并存风险,建立核民用合作机制并推进建立涵盖核的武器与民用的合作机制,以核问题的处理为契机在国家层面上构建东北亚命运共同体,以及在地方与个人层面推进核文化教育与核防护演练合作,都是应对"核威慑效应弱化"的有益思考。     

日本实施FTA战略的进展和挑战

20世纪90年代末,日本对外贸易政策发生了重大转变。日本政府在1999年发表的《通商白皮书》中首次提出了要在坚持多边主义立场的同时,与其他国家或地区签定自由贸易协定(FTA)或与亚洲大多数国家签定经济伙伴协定(EPA)。日本实施FTA战略在经济上的主要原因是日本看到了美国欧盟都在积极开展区域合作,感到自己有被边缘化的危险,政治上的原因是要抵消中国的影响。目前日本正在实施与新加坡和墨西哥的FTA,同时又正在与马来西亚、菲律宾、泰国、印度尼西亚和韩国进行FTA谈判,并考虑与澳大利亚、越南、瑞士和海湾合作委员会六国进行FTA谈判。日本实施FTA战略对国内农业政策和人员流动政策提出了挑战,在国际上对美国尤其是中国提出了挑战。本文通过对日本实施 FTA战略进展作出较为全面的概述,使我们更加感到中国实施FTA战略的必要性和急迫性。     

中日韩三国纺织服装品在东盟市场竞争力的实证研究

本文从市场占有率、贸易竞争指数、显示性比较优势指数和出口产品相似度指数等4个不同视角出发,全面考察了2000-2008年期间中日韩3国纺织服装品在东盟市场竞争力的大小.实证结果表明,近年来我国纺织服装品在东盟市场的竞争力不断上升,同日韩两国相比,我国纺织服装品的竞争优势非常明显.本文的研究可为我国纺织行业进一步开拓东盟市场提供借鉴.     

The political economy of economic regionalism in northeast asia: A unique and dynamic pattern

Since the mid-1980s there has been a gradual but steady rise of economic regionalism in Northeast Asia. However, the economic regionalism in Northeast Asia reveals its own dynamics and is presented in a form that is different from those in Western Europe and North America. Characterized by a “flying geese pattern” that has been developing in the region over time, the regionalism is soft and open; that is, it is uninstitutionalized and less discriminatory against other economies. This ongoing regionalism in Northeast Asia will inevitably bring profound political and economic implications for the region and beyond. Kevin G. Cai earned a Ph.D. in political science at Queen's University in Canada in 1996 Currently he is teaching at Kyonggi University in South Korea. His major research interests include the political economy of economic regionalism in the world economy, the regionalism in the Asia-Pacific area, APEC, China's integration into the regional and global economy, and various political, economic and security issues in the Asia-Pacific region. The author would like to thank Michael K. Hawes for his valuable comments on the early draft of this article.