Northeast Asia Geostrategic Forum

[TaiShang]

Regional integration of NEA will take a while and in many steps. Currently East Asia is in a short term "win streak" with many positive developments happening in tandem, part of a long term positive trend with ups and downs. The Olympic games, at least for East Asia had been the precursor of positive events since it is utilised as a focal point/spearhead for other developments, the games and tourism is secondary. Its sort of the logic behind symbolic skyscrapers, you might not make money on the building itself, perhaps even lose a lot of money directly but use it to push development of the land around it. 2008 Beijing Olympics brought China to a new level on the world stage but the nation was preparing holistically for many years, this had immense internal implications for China (mental shift of the grassroots but not exactly visible to outsiders). Pyeongchang winter games brought a new era for the Korean peninsula, the games itself was ordinary. Hopefully 2020 Tokyo Olympics can add to this trend, along with 2022 Beijing Winter Olympics.

I'm looking forward to 2020 Tokyo Olympics and its implications

Wow, that's a very original, innovative approach, which I have not paid attention before. It reminds me of Chicago World's Fair, which helped the US transform itself and put itself strongly in the center of global trade. In fact, the US was already the largest manufacturer already, but the Fair changed the perceptions that lagged reality.

I wonder what sort of even would play such symbolic role for China, changing the global perception of China that now lag the reality on the ground.

BRI in my view is a long project, not something that should be reconsidered due to short term political shifts. I agree in the sense that China should focus on integrating the core regions. Modern economic system is mainly dependent on advanced industrial technology, it is in China's interest to better integrate with nations that can provide synergies in this area and all East Asian nations are working towards this. The rest of BRI would be much easier if the core can be better coordinated. Some elements like infrastructure on the other-hand requires decades of patience and persistence to build to facilitate the long term BRI.

I think, over time, the BRI would also have its own internal classification as core and periphery, which would, as you say, enable better coordination and management. Core-periphery would not necessarily mean one-way dependency, but still, it would create a sort of division of labor based on equal/fair participation. Dedicating EA/NEA as the core of the BRI is also significant not to lose sight of the regional under the shadow of the global.

Diplomacy has lots of symbolism :

2018年5月10日外交部发言人耿爽

主持例行记者会

Foreign Ministry Spokesperson Geng Shuang's

Regular Press Conference on May 10, 2018


问：据报道，9日，中日两国政府就中国向日本提供一对朱鹮达成协议，并签署备忘录。这是中方时隔11年再次向日本提供朱鹮。中方对此有何评论？

Q: According to reports, on May 9, the Chinese and Japanese governments reached an agreement on China providing a pair of crested ibises to Japan, and the two sides signed a memorandum. It has been 11 years since China offered crested ibises to Japan last time. What is your comment?

答：朱鹮素有鸟中“东方宝石”之称，深受中日两国人民喜爱，已经成为两国人民友谊的象征。

A: Known as "the Diamond of the Orient" of its kind, crested ibises are deeply adored by both the Chinese and Japanese people and they have become a symbol of our friendship.



中日两国从上世纪80年代起共同保护朱鹮，中方先后向日方提供5只朱鹮个体，帮助日方重新建立朱鹮种群，日方通过官方和民间保护项目支持中国朱鹮栖息地保护工作。

China and Japan have joined hands to protect crested ibises since the 1980s. China has since then provided 5 crested ibises to Japan and helped it to restore its crested ibis colonies. Japan has supported China's efforts to preserve the crested ibis habitats through official and private programs.

经过长期努力，中国朱鹮种群数量已由1981年的7只发展到3000多只，并通过放归自然等措施在陕西、浙江、河南等地重建了野外种群。日本朱鹮种群已达500只左右，也通过人工繁育个体放归自然重建了野外种群。中日朱鹮保护合作共赢已经成为世界野生动物保护史上的成功范例。

Thanks to long-term endeavors, the number of crested ibises in China has grown from 7 in 1981 to over 3000, and the wild crested ibis colonies have been recovered in Shaanxi, Zhejiang, Henan and other provinces through reintroduction and other measures. In Japan, the number of crested ibises has reached around 500 and the wild crested ibis colonies have also been restored through the reintroduction of artificially reared individuals. The China-Japan win-win cooperation for the preservation of crested ibis has become a successful exemplar in the history of world wildlife protection.

此次，中方再次向日方提供两只朱鹮用于两国开展合作繁育研究，这不仅有利于继续提高日方朱鹮种群的遗传多样性，也将进一步增进两国人民的友好感情。

Now, China's offering of two crested ibises for joint breeding study will not only help to increase the genetic diversity of Japanese crested ibis colonies but also further enhance the friendship between the two peoples.​

East Asian integration (not just free trade)can only happen when China is further down the mean regression and be broadly competitive with Japan and South Korea.

Indeed, this may also explain the sea of change in Japan's approach to the BRI, from cold to slightly warm. I guess they were closely watching all along. If success is ensured, they will jump in.

This explains the importance of creating alternative institutions.

 

[Cybernetics]

Wow, that's a very original, innovative approach, which I have not paid attention before. It reminds me of Chicago World's Fair, which helped the US transform itself and put itself strongly in the center of global trade. In fact, the US was already the largest manufacturer already, but the Fair changed the perceptions that lagged reality.

You are right, does seem similar. I don't know too much about the internal implications on the US at the time but I can say for sure it sowed the seeds for strengthening national and cultural identity in contemporary China. The biggest impact was actually for the average farmer (from talking to them) who before the Olympics wasn't educated on China's developments and modern identity as they are pre-occupied with their village lifestyle and not involved in many frontier areas. It ushered in a greater (relatively) sensitivity of global dynamics for the grassroots, at least they became more interested. Individuals and companies began to think more global.

I wonder what sort of even would play such symbolic role for China, changing the global perception of China that now lag the reality on the ground.

In a few years, right around the 2022 Winter Olympics China is set to expand its new institutions and new manufacturing more globally. China will definitely showcase some of its new developments within the Olympic experience.

I'm not sure about the exact event and the direct implications but we can estimate. The event or series of events should be something that is able to grab global headlines.

I think, over time, the BRI would also have its own internal classification as core and periphery, which would, as you say, enable better coordination and management. Core-periphery would not necessarily mean one-way dependency, but still, it would create a sort of division of labor based on equal/fair participation. Dedicating EA/NEA as the core of the BRI is also significant not to lose sight of the regional under the shadow of the global.

Core, semi-periphery, and periphery world system classification is just observing the natural stratification that occurs based on contribution to the global system. Nothing is set in stone, if a nation sustains closing the gap with the core then it will eventually become part of the core. Overtime institutions would reflect reality. Regionalism doesn't always reflect reality, for example Mongolia will not be considered a core nation but it is in NEA. Singapore will be considered a core nation but it is not part of NEA. It just depends on the relative contributions of the nation, negotiated through a market framework unless a major event occurs.

Dependency depends on negotiating power of the supply chain (institutions and IP are part of it). Core-periphery is not something that can be set by just words, it is set through an organic and ongoing negotiation process. If a nation offers the goods of a core nation then it will become a core nation. At its current extent BRI is a multi core system, Eurasia has two main cores, EU and NEA.

Thanks to long-term endeavors, the number of crested ibises in China has grown from 7 in 1981 to over 3000, and the wild crested ibis colonies have been recovered in Shaanxi, Zhejiang, Henan and other provinces through reintroduction and other measures. In Japan, the number of crested ibises has reached around 500 and the wild crested ibis colonies have also been restored through the reintroduction of artificially reared individuals. The China-Japan win-win cooperation for the preservation of crested ibis has become a successful exemplar in the history of world wildlife protection.

Symbolism has a lot to do with the gifts China sends, just like the pandas.

"At one time, the crested ibis was widespread in Japan, China, Korea, Taiwan, and Russia. It has now disappeared from most of its former range. The last wild crested ibis in Japan died in October 2003, with the remaining wild population found only in Shaanxi province of China until reintroduction of captive bred birds back into Japan in 2008. They were previously thought to be extinct in China too, until 1981 when only seven ibises were seen in Shaanxi, China."

This bird is a regional bird and gifting it to Japan means China desires better regional connectivity and common destiny with Japan. The crested ibis once moved freely between China and Japan but were isolated and on the brink of extinction due to circumstance of history. An ember of life remained in China and it desires to spread its life once more, cultivating a new chapter in history.

 

[Suika]

China is coming to terms with a Japan that rose to the challenge.　

China increased the number of flights through the Miyako straight and circling Taiwan. But Japan installs more radars around the areas and has built up more defense on the islands, and always scrambles fighter aircraft to meet with the Chinese. Chinese aircraft won't be able to gain an advantage because of Japan's response. The following is a Japanese Joint Staff report about Japanese fighters scrambling to keet up with Chinese aircraft every time they come near.
http://www.mod.go.jp/js/Press/press2018/press_pdf/p20180413_05.pdf

A 2016 Japanese Air Self Defense Force video that includes parts about the scrambles (about first 10 minutes of the video)

Taiwan has a new beautifully made temple that enshrines an Imperial Japanese warship.

CPTPP is far further ahead in progress than either RCEP or some sort of north east Asia economic bloc idea.

Taiwan wants to join CPTPP too.
http://focustaiwan.tw/news/aeco/201804190018.aspx

Even Globaltimes admits that CPTPP has increased Japan's influence and has made RCEP less appealing.
http://www.globaltimes.cn/content/1092915.shtml


Upon these developments, China has been taken down a notch and is now making nice with Japan.

 

[ZeEa5KPul]

Upon these developments, China has been taken down a notch and is now making nice with Japan.

No. The worms will be made to crawl on their bellies as nature intended. You will remember your place:

 

[TaiShang]

No. The worms will be made to crawl on their bellies as nature intended. You will remember your place:

China, Japan to continue 'close communication' on currency swap

CGTN
2018-05-11

China's central bank said Friday the country will continue "close communication" with Japan on bilateral currency swaps and setting up a renminbi (RMB) clearing bank in Tokyo.

The People's Bank of China (PBOC) made the remarks responding to reporters' questions on a slew of consensuses on cooperation reached between the two countries in the financial fields.

During an official visit to Japan, Chinese Premier Li Keqiang said China has agreed to grant Japan an RMB Qualified Foreign Institutional Investors quota of 200 billion yuan (more than 30 billion US dollars), and China holds a positive attitude toward establishing the RMB clearing bank in Tokyo.

The building of the People's Bank of China /VCG Photo

The PBOC said that closer China-Japan financial cooperation will help the integrated development of financial markets of the two sides, promote the RMB's internationalization, support bilateral trade and investment, and bolster Asian and global growth.

Around eight percent of the nearly 300 billion US dollars in bilateral goods trade was settled in RMB in 2017, PBOC data showed. China's cross-border RMB payment with Japan surpassed 450 billion yuan.

China's ongoing financial opening-up will provide a lot of room for financial institutions from the two sides to expand cooperation, the PBOC said.

As major economies in Asia and the world, both China's and Japan's currencies have been included in the Special Drawing Right basket of the International Monetary Fund.

https://news.cgtn.com/news/3d3d774e3445444e77457a6333566d54/share_p.html

 

[Cybernetics]

 

[terranMarine]

LOL even the Japanese Emperor has to show respect to our Prime Minister. Japan knows very well its future lies with China. It will make a fine subordinate of China

 

[TaiShang]

LOL even the Japanese Emperor has to show respect to our Prime Minister. Japan knows very well its future lies with China. It will make a fine subordinate of China

I believe deep in their psyche, all integral extensions of China know their place and position vis-a-vis China. And this is not a bad thing. To be part of a bigger idea, a civilization state is enriching. It does not suggest subjugation, it suggests historical attachment and commonality of destinies.

***

Hope on horizon after Li’s Japan visit

By Li Ruoyu Source:Global Times Published: 2018/5/13 21:38:39

Illustration: Liu Rui/GT


The 7th China-Japan-South Korea leaders' meeting came at an important juncture in ties between the three countries in Northeast Asia. Chinese Premier Li Keqiang attended the May 9 meeting, which marked a Chinese premier's first visit to Japan since premier Wen Jiabao's trip in 2010.

Bilateral visits of Chinese and Japanese leaders have become less frequent in keeping with tepid ties. As Li said in a signed article in Japanese newspaper Asahi Shimbun, "China and Japan are important neighbors. Although there are dozens of direct flights between Beijing and Tokyo each day and it takes just a little over three hours flying between the two cities, we have walked a long way in recent years to improve and develop China-Japan ties."

Top-level visits are closely related to trust between the countries. In fact, this is not only Chinese premier's first visit to Japan since 2010, but also a South Korean president's first trip to Japan in six-and-half years, and Moon Jae-in's first trip to Japan as president. This shows that Japan's relations with China and South Korea have ebbed since 2012 when Shinzo Abe was re-elected Japanese prime minister.

Japan's attitude started to change since 2017. On the Belt and Road initiative, for instance, Japan has shown its intention to cooperate. China always welcomes a sincere approach to promote regional peace and stability and to improve relations between countries. Li's visit to Japan marks a new opportunity for improving Sino-Japanese relations. In the joint declaration issued after the China-Japan-South Korea leaders' meeting, the first part does not mention, as is usually seen, economic issues or the international situation, but the importance of promoting people-to-people and cultural exchanges. This shows that China's people-oriented diplomacy has won global recognition.

The demand that China-Japan relations should develop on the basis of people-to-people exchanges has been there. Besides, the demand doesn't exclude economic and other factors. The declaration says, "Reaffirming the importance of expanding tourism among our countries, we will continue to strive to reach the goal of 30 million people-to-people exchanges among the three countries by 2020". Except for improving understanding between the two countries' people, it supports the Tourism Nation Promotion Basic Plan in Japan. As it is common for Chinese tourists to travel to Japan, their itinerary has extended from metropolises like Tokyo and Osaka to other regions. This will help Japan's regional development that has long been a concern of the Japanese government. In fact, people-to-people exchanges can bring huge economic benefits.

Traditional economic cooperation between countries influences the economy more directly. China, Japan and South Korea face a common interface of the international economy as US President Donald Trump has been promoting "America First" policy. China as a large economy attracts more attention over its trade dispute with the US. However, Japan is also on the list of countries to be punished by Trump. Japan and South Korea are even more anxious over Trump's anti-globalization agenda as their domestic markets are not as large as China's. This is demonstrated by the commitment to the joint declaration to "building an open world economy."

Japan had boycotted its free trade agreement (FTA) with China and South Korea and the Regional Comprehensive Economic Partnership (RCEP), which it regarded as competitors of the Trans-Pacific Partnership (TPP). However, after the US quit the TPP, Japan began to rethink its policy on the trilateral FTA and the RCEP. Japan's change of heart can be proved by statements in the joint declaration to accelerate the negotiations on the trilateral FTA and the RCEP. However, the US has the reins of Japan's and South Korea's security. If the two countries have to choose between security and economy on any day, it is difficult to tell whether they still stick to their current positions.

The security algorithm in Northeast Asia today has welcomed the changing situation. The easing tensions over North Korean nuclear issue may provide an opportunity for South Korea and Japan to reduce their security dependence on the US.

North Korean leader Kim Jong-un has met with his South Korean counterpart and visited China twice to meet President Xi Jinping. Abe is the only one among the three countries' leaders who hasn't met Kim. Besides, the Kim-Trump summit is set to be held in June. The Six-Party Talks, in which Japan used to exert its influence on the North Korea issue, have been replaced by a new system. Japan has obviously recognized this, as it didn't publicly demand restarting the Six-Party Talks. Instead, it hopes to expand cooperation with China and South Korea, which is a sensible move.

Premier Li's visit to Japan and the joint declaration signal that Northeast Asian countries' relations start improving. Only by strictly implementing the joint declaration can the goal of "building a regional platform for peace and cooperation in this region" be achieved.

The author is associate professor at School of History and Cultures, Sichuan University.
opinion@globaltimes.com.cn

http://www.globaltimes.cn/content/1102026.shtml

 

[TaiShang]

Participation in Belt and Road enables Japan to explore Eurasia market

By Feng Zhaokui Source:Global Times Published: 2018/7/16

Illustration: Liu Rui/GT


An increasing number of Japanese companies are starting to convert their positive attitude toward the Belt and Road initiative into practical steps. Some high-level Japanese officials have also expressed Japan's interest in participating in the initiative and exploring cooperation in a third country. Apparently, this will instill more momentum and expand Sino-Japanese economic cooperation. Promoting Chinese and Japanese enterprises to cooperate in third-party market will facilitate the development of all parties concerned.

Japan's decision to participate in the Belt and Road initiative reflects the rule of history. While the country earlier attempted to "leave Asia and enter Europe," it is now striving to play a more active role in Asia.

Japan launched Meiji restoration 150 years ago, following in the footsteps of Europe's industrial and technological reforms. As a result, the country has taken the opportunity to develop its technology, but has charted a wrong political path. In the 21st century, Asia has risen to be a driving force of global economic development and is playing an increasingly significant role in globalization. Japan's participation in the Belt and Road initiative reflects the country's intention to return to Asia and work jointly with China to promote regional prosperity and development.

Under the Belt and Road initiative, a large number of container trains are shuttling between China and Europe, Russia and Central Asia. In 2015, over 100 freight trains traveled between China and Europe on average every month. More and more Japanese firms have participated in the process. Japan's Nippon Express has started to use China-Europe rail transport, significantly reducing delivery time. The Belt and Road initiative has made Japan-Europe connections more convenient.

Both China's and Japan's development benefits from free trade, and the two countries also advocate the concept. Currently, the world is witnessing a trend against globalization and free trade, Japan's participation in the Belt and Road initiative is a concrete step to safeguard multilateral free trade system and oppose protectionism and unilateralism. The Belt and Road initiative will further help Japan explore its market in Asia and Europe.

Some Japanese scholars believe that despite technological success, Japan has failed to revitalize the market, which is the root of the country's economic ills. In fact, Japan's market will expand if it can share its technologies and experiences in energy, environment protection, disaster management and infrastructure with countries along the Belt and Road route. The initiative is an opportunity for Japan to develop its technology and expand the market.

Currently, countries along the Belt and Road initiative are in urgent need of infrastructure construction. Both Chinese and Japanese firms have abundant experience in this aspect, and cooperating with China on the Belt and Road initiative will bring Japan many more business opportunities. While offering financial support to countries along the route, China and Japan should also contribute to their talent training and technology upgrading.

Japanese politicians should abandon short-sighted geopolitical calculations and suspicions, and take the historic opportunity of the Belt and Road initiative to promote free trade and prosperous development of Eurasia.

The author is an honorary academician of Chinese Academy of Social Sciences and consultant of China Society of Sino-Japanese Relations History.

http://www.globaltimes.cn/content/1111011.shtml

 

[TaiShang]

Northeast Asian countries play active role in Belt and Road Initiative

CGTN
2018-09-11

Countries of Northeast Asia play an active role in China's Belt and Road Initiative (BRI) as the idea of mutual benefit and win-win applies to all participants in the area and is instrumental in promoting economic development and deepening regional cooperation.

As one of the fastest-growing areas around the world with huge potential of economic development, the regions in northeast Asia enjoys tremendous opportunities of carrying out regional cooperation among the five countries - China, Russia, Mongolia, the Republic of Korea (ROK), Japan and the Democratic People's Republic of Korea (DPRK).

China enjoys close economic and trade ties with the five countries and remains the largest trading partner of them.

In 2016, China's trade volume with the five countries totaled 605.9 billion US dollars, accounting for 16.4 percent of the country's foreign trade. The five countries' investment in China reached 7.85 billion US dollars in the same year, and China's investment in these countries also maintained steady growth.

China-Mongolia-Russia economic corridor signals fresh opportunities

China, Russia and Mongolia actively explored trilateral cooperation in areas such as trade and investment, industry, energy and infrastructure under the China-Mongolia-Russia economic corridor initiative, which is part of the Silk Road Economic Belt initiative.

Asian Infrastructure Investment Bank cartoon. /VCG Photo

The three countries all joined the China-led Asian Infrastructure Investment Bank (AIIB) which aims to provide financing to address the infrastructure needs in Asia and beyond. The bank has by now 86 approved members from six continents.

Being a close and friendly neighbor, Russia fully supports China's Belt and Road Initiative, and the two countries agree to align the former's aspiration under the Eurasian Economic Union (EAEU) framework with the latter's Silk Road Economic Belt initiative.

Starting in December 2016, the 19.9km-long highway bridge connecting China and Russia over the Heilongjiang River is under construction. The road bridge is scheduled to open in October 2019.

The first China-Russia highway bridge is under construction. /VCG Photo

Mongolia also pledged to make greater progress of trilateral cooperation by aligning its "Development Road" program with China's Belt and Road Initiative. In recent years, the two countries have conducted fruitful cooperation in areas including infrastructure, agriculture, border trade, cultural exchanges and tourism.

Meanwhile, China, Japan and ROK remain committed to accelerating negotiations for a trilateral Free Trade Agreement (FTA) and concluding a Regional Comprehensive Economic Partnership (RCEP) as soon as possible in a bid to facilitate trade and investment liberalization in East Asia and to serve the common interests of the three countries.

Besides traditional cooperation fields, countries of northeast Asia also actively tap new fields of regional cooperation as evidenced by various expos and industrial parks.

The 11th China-Northeast Asia Expo. /VCG Photo

The 11th China-Northeast Asia Expo, for example, was held in Changchun, northeast China's Jilin Province on September 1 to 5 last year. Pavilions with themes of cutting-edge technology, financial innovation and daily commodities were epitomes of fruitful results of regional cooperation among countries in the area.

https://news.cgtn.com/news/3d3d674e3045544d7a457a6333566d54/share_p.html

@qwerrty , @powastick , @Nan Yang

 

[TaiShang]

Land-sea multimodal transport route boosts northeast Asia cooperation

China Plus/CGTN Published: 2018-09-11 20:22:39


The file photo shows work on a highway bridge project across the Heilongjiang River, also known as the Amur River in Russia, is progressing smoothly in Heihe, a border city in Northeast China's Heilongjiang Province. [Photo: en.xfafinance.com]

A land-sea multimodal transportation route connecting China, Russia and South Korea is said to be enhancing economic development and boosting trade cooperation among northeast Asian countries.

The Harbin-Suifenhe-Russia-Asia multimodal transportation route, started in 2016, is an important branch of the Belt and Road Initiative in northeast Asia.

Cargo trains on the route start out in Heilongjiang's capital, Harbin, through to Suifenhe, the largest port of the province to Russia, and then on to Vladivostok Port in Russia's Far East region, where the goods are loaded to vessels and shipped to southern and eastern China, as well as South Korea and Japan.

Fan Jizhong, general manager of a logistics firm in Suifenhe says the route has done quite a bit to expand their businesses.

"Relationship between logistics companies and target customers has been completely changed now on the route. In the early stages, we used to look for source of goods everywhere. As the operation of the land-sea route becomes more mature, now it is the source of goods that looks for us."

Heilongjiang, the northernmost province in China, borders Russia's Far East region, which has rich resources.

The land-sea transportation route enables Heilongjiang to conduct sea transport from port of Russia, which can greatly shorten the transport distance and save cost.

The nearest domestic sea port for Suifenhe is the Port of Yingkou in Liaoning, which is 13-hundred kilometers away.

Russia's Vladivostok Port is only 230 kilometers away from Suifenhe on the route.

If goods bound for Shanghai are put out to sea from the port, the voyage can be shortened by more than 900-kilometers.

Zhang Ming, deputy general manager of the Heilongjiang Land-Sea Route International Freight Forwarding Corporation.

"In terms of shipping costs, the route enjoys absolute advantages. According to conventional calculation, cost of shipping containers to Japan and South Korea from this route will be around 2,000 yuan, less than that from the Port of Dalian. Costs to ports in southern China would save about 4,000 yuan,"

Zhang Xiaoping, general manager of a wood company in Suifenhe says the route has also promoted upgrades to the Port of Suifenhe.

"The smooth running of the land-sea multimodal transportation route has brought new opportunities of development and tangible benefits to local companies. It has reduced shipping costs and shortened the transportation cycle, giving goods with high added value the opportunity to go to Japan, South Korea as well as European and American markets."

To promote cross-border transportation, a bridge connecting China and Russia is under construction.

The 20 kilometers long bridge will connect the city of Heihe in Heilongjiang with Blagoveshchensk in Russia's Amur region on the other side of the Heilong River.

The bridge is expected to be finished by the end of next year.

http://chinaplus.cri.cn/news/china/9/20180911/182493.html

 

[TaiShang]

China injects new impetus into building a NE Asian Economic Circle

2018-09-13

Editor's note: The following is an edited translation of a commentary from the Chinese-language "Commentaries on International Affairs."

Chinese President Xi Jinping delivered a speech on Wednesday at the fourth Eastern Economic Forum entitled "Sharing New Opportunities for the Development of the Far East and Creating a Bright New Future for Northeast Asia", proposing four points on promoting peace, stability, development and prosperity in the region amid newly arising situations.

He noted that countries in northeast Asia should build mutual trust to safeguard regional peace and tranquility, deepen cooperation to achieve mutually beneficial and win-win outcomes, learn from each other to consolidate their traditional friendship, and take a long-term perspective to realize integrated and coordinated development. This has laid out a new blueprint and injected new impetus into the establishment of the Northeast Asian Economic Circle, and the promotion of diversification and sustainable development of the region.

Northeast Asia includes China, Russia, Mongolia, Republic of Korea (ROK), DPRK (Democratic People's Republic of Korea) and Japan. Its combined population accounts for 23 percent of the world's total population, and the total economic output accounts for 19 percent of global output. The establishment of the Eastern Economic Forum in 2015 created a new platform for cooperation in northeast Asia.

Chinese President Xi Jinping attends a round-table on Sino-Russian regional cooperation at the fourth Eastern Economic Forum, Vladivostok, Russia, September 11, 2018. /Xinhua News Agency

At present, northeast Asia has become one of the most promising regions in the world with the fastest economic growth. However, the rise of unilateralism and protectionism has created external resistance to deep cooperation in northeast Asia. Under such circumstances, it is a common aspiration of all countries in the region to reach consensus, build an open regional economy, and enhance the well-being of the people.

In his speech, President Xi Jinping proposed working together towards the common goal of building a Northeast Asian Economic Circle. In fact, the idea has a solid foundation. First of all, northeast Asia is rich in natural resources, and the Russian far east is also known as the only treasure trove in the world that has not been dug deeply. In addition, northeast Asia has world-leading scientific research capabilities: China, Russia, Japan and ROK are all major countries in science and technology.

At the same time, funds in the region are sufficient, and China's foreign investment has become an especially important engine for stimulating global foreign direct investment growth. The regional security situation, which has been continuously improving in recent years, has also provided a good guarantee for regional cooperation.

Wang Shouwen, Chinese vice minister of commerce, speaks during the 12th round of talks on a trilateral free trade agreement in Tokyo, Japan, April 13, 2017. /Xinhua News Agency

As President Xi Jinping said, "A harmonious, united and stable northeast Asia with mutual trust conforms to the interests of all countries and the expectations of the international community." "Countries in the region are fully capable and qualified to give full play to their respective advantages and carry out in-depth cooperation in various fields."

Then, how can the parties evolve deeper cooperation in this new situation?

President Xi Jinping proposed that the regional countries should actively align their development strategies, strengthen policy communication and coordination, improve cross-border infrastructure connectivity, promote trade and investment liberalization and facilitation, jointly build an open regional economy, and boost sub-regional cooperation to benefit the people in the region.

These recommendations are highly instructive, practical and realistic. The six countries in northeast Asia are neighbors, and the level of economic development is not much different. It is uniquely advantageous to carry out multilateral cooperation within a certain scope and sub-regional cooperation in adjacent areas. In terms of small multilateral and sub-regional cooperation mechanisms, northeast Asia already has a number of bilateral or multilateral cooperation frameworks.

The construction of the China-Russia-Mongolia Economic Corridor has achieved initial success, and negotiations on establishing the China-Japan-ROK Free Trade Area are accelerating. This has promoted the region's sustainable development and provided lessons for deepening cooperation.

More importantly, the Belt and Road Initiative is gradually gaining popularity in the hearts of the people of northeast Asia. Countries in the region have expressed their willingness to support and actively participate in the ambitious initiative.

President Xi Jinping has pointed out that China and Russia have been actively carrying out the alignment between the Belt and Road Initiative and the Eurasian Economic Union, and have already achieved initial gains. China is willing to work with all parties on this basis to align the development strategies.

Opening ceremony of the 5th China-Russia Expo in Yekaterinburg, Russia, July 10, 2018./VCG Photo

China supports the Asian Infrastructure Investment Bank and the Silk Road Fund playing a greater role in providing financial support for major projects. This will undoubtedly bring more opportunities for the building of a Northeast Asian Economic Circle.

At present, the situation in northeast Asia is stabilizing and has a promising future. Notably, the Sino-Russian relationship has stepped into a new era of high level and great development, producing a major demonstration effect and giving impetus to the regional integration process in northeast Asia.

In the long run, an open Northeast Asian Economic Circle will not only create more benefits for the local people, but will also become an important force for safeguarding multilateralism and promoting the development of the international order in a more just and rational direction.

https://news.cgtn.com/news/3d3d774d7a59544d7a457a6333566d54/share_p.html

***

Looks like the initial steps toward an economic community are been taken in the form of a Northeast Asian Economic Circle. Better than nothing, although I hope the process will be quick and institutionalized soon.

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[Cybernetics]

In his speech, President Xi Jinping proposed working together towards the common goal of building a Northeast Asian Economic Circle. In fact, the idea has a solid foundation. First of all, northeast Asia is rich in natural resources, and the Russian far east is also known as the only treasure trove in the world that has not been dug deeply. In addition, northeast Asia has world-leading scientific research capabilities: China, Russia, Japan and ROK are all major countries in science and technology.

The construction of the China-Russia-Mongolia Economic Corridor has achieved initial success, and negotiations on establishing the China-Japan-ROK Free Trade Area are accelerating. This has promoted the region's sustainable development and provided lessons for deepening cooperation.

More importantly, the Belt and Road Initiative is gradually gaining popularity in the hearts of the people of northeast Asia. Countries in the region have expressed their willingness to support and actively participate in the ambitious initiative.

The proposal of a Northeast Asian Economic Circle is a very exciting one to me. This is vital to China's long term geostrategic security and serves as a fall back line in many spheres of activity. It would become a zone for converging regional interests to build a long lasting framework. In addition, after a phase of consolidation geopolitical vectors would become outwardly orientated.

Economically this would revitalise Dongbei. Dandong for example was supposed to be a free trade zone for trade with North Korea and the broader region. If better connectivity between people, institutions, commerce, and information can be facilitated, North East China would see better market reform results and aid its transition from old heavy industries. As all nations within North East Asia are quite pragmatic, under the right environment and incentive structure, we should see nations engaging in more long lasting and mutually beneficial projects. Hopefully each nation would realise the potential increase in their strategic depth, though it would likely take some time for South Korea and Japan to fully be comfortable with this and their domestic situation doesn't help either. It is important for each nation to be heavily invested in each other. Eventually this opens up security related opportunities. South Korea and Japan do see opportunities in the silk road but due to security reasons are reluctant to commit. The foundation for a new regional security framework should be built.

North Korea would become one of the most important overall regional projects for the next few decades as it covers all spheres of potential projects in North East Asia. The development of North Korea should be a regional priority. Having a backwards nation within an aspiring core region is a blackhole in the middle of prosperity.

Linking North Korea to the broader region would open up the entire network and enable greater political cohesion within the region, even if indirect. Inviting Japan and South Korea to buy into this project and actively participate in the North Korean project benefits China's long term security. It eases China's financial and political burdens while the process builds a favourable environment.

It would free South Korea from being functionally an island and reduce budget dedicated towards military expenditures on the peninsula. Human capital would see a boost as hundreds of thousands of young men no longer have to be conscripted for 2 years in the military. Hopefully spurring a wave of rapid development. Though it would be a while before we get to this point. Currently not many young South Koreans are passionate about reunification. A new narrative is needed to light their fire of imagination for a better Korea. Even if reunification doesn't occur, stable and less tense relations would help.

In the short run, infrastructure, industry and connectivity would be needed to serve as the foundation for any future political projects.

 

[TaiShang]

Hopefully each nation would realise the potential increase in their strategic depth, though it would likely take some time for South Korea and Japan to fully be comfortable with this and their domestic situation doesn't help either.

Hopefully, during PM Abe's visit, China will put this proposal at the very top of the agenda. It is so vital, as you say. I always believe that East Asian security and prosperity starts (and ends) in NEA. Therefore, what President Xi has proposed is as important as the BRI. Hopefully China's bureaucracy will forcefully work on it.

South Korea and Japan do see opportunities in the silk road but due to security reasons are reluctant to commit. The foundation for a new regional security framework should be built.

I anticipate that, during their reciprocal visits, PM Abe and President Xi will also talk about a formula to bring Japan into the AIIB.

When I traveled along China's East (for instance, Shandong Province) I have seen massive constructions and machinery being Japanese and Korean heavily, as well as Chinese. So, China can open up more opportunities for corporate Japan and Korea, as you suggest, tying their economic interests and prospects with that of China and the BRI.

Nevertheless, I believe, the NEA economic circle needs to be an institution, not an extension of the BRI.

 

[TaiShang]

Chaos caused by US trade aggression spurs faster regional FTA talks

By Wang Cong Source:Global Times Published: 2018/9/19

Countries seek regional deals to counter US protectionism

Vehicles to be shipped abroad are lined up at a port in Lianyungang, East China's Jiangsu Province, on July 31. Photo: IC


As the US continues to pursue protectionist measures, countries such as China, South Korea and Japan are accelerating free trade agreement (FTA) negotiations in a bid to counter the US and protect the global free trade order.

The chaos and anxiety brought to the global economy by the unilateral US moves have also created a rare opportunity for slow or even stalled FTA talks to pick up pace and these agreements could sideline the US, analysts noted.

At a forum in Beijing on Wednesday, officials from China, Japan and South Korea vowed to speed up negotiations for a trilateral FTA, which has seen slow progress so far due to political and economic differences among the three countries.

Addressing the forum, Kim Jeongil, director general of the FTA Policy Bureau at South Korea's Ministry of Trade, Industry and Energy, said that the world is witnessing growing trade protectionism, which creates urgency for completing talks on the China-Japan-South Korea FTA and other multilateral trade pacts.

"By strengthening the economic integration among the three countries as well as in the Asia-Pacific region, we will give a very positive signal to other parts of the world and show why free trade is so important and why it is so beneficial," Kim told the Global Times in an interview.

Talks speed up

While officials from the three countries largely steered clear of mentioning the US at the forum, they argued that regional and multilateral trade agreements are now more important than ever.

"China, Japan and South Korea are all victims of protectionist actions from the US. Although the level of damage for these counties varies, there is growing urgency to make substantial progress in the FTA negotiations," Zhao Jinping, a research fellow at the Development Research Center of the State Council, China's cabinet, told the forum.

Negotiations for the China-Japan-South Korea FTA first started in 2012, but progress has been slow, partly because of sometimes tense diplomatic relations among the three countries and the competitive nature of their economies, analysts said.

But talks have picked up this year amid the growing trade aggression from the US. In May, leaders of the three countries held a trilateral summit in Tokyo, vowing to make greater efforts to accelerate the FTA negotiations.

"We are committed to building an open world economy. We recognize the importance of free and open trade and investment in achieving growth. We remain committed to liberalizing our economies and fighting all forms of protectionism," read a joint declaration following the summit, in a clear rebuttal of the US' position.

Chen Zilei, director of the Research Center for Japanese Economics at the Shanghai University of International Business and Economics, said that accelerating the trilateral FTA is not a direct countermeasure against the US, given that South Korea and Japan are close allies of the US, but it is a stance the countries feel they must take.

"With the US threatening the global free trade system, all the countries need to expand their trade reach, even when there are political differences and disagreements on economic policies," Chen told the Global Times.

As well as the China-Japan-South Korea FTA, other regional trade pacts have also seen accelerated negotiations in recent months, including the Regional Comprehensive Economic Partnership, a trade pact among 16 Asian economies.

Officials have said that they are aiming to complete negotiations for the pact before the end of 2018.

Various countries are also pursuing bilateral trade deals. China is accelerating FTA talks with countries and regions such as the EU and New Zealand, while Japan has recently signed a trade agreement with the EU.

"This is the bright side of the US trade protectionism. It has pushed all these countries to accelerate FTA talks and try to set up a firewall against the US actions," Chen said.

http://www.globaltimes.cn/content/1120270.shtml

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