(VOVWORLD) - The ongoing China-Japan-South Korea summit in Tokyo creates an opportunity for the three countries to restore strategic trust and elevate cooperation. They aim to seek ways to promote innovative, inclusive growth to steer the regional economy on the right path.
 China-Japan-South Korea Summit promotes cooperation |
Amidst Northeast Asia’s changes towards the denuclearization on the Korean peninsula, the summit is seen as an opportunity for China, Japan, and South Korea to strengthen trade cooperation and revive strategic trust.
According to the World Bank, the three Northeast Asian economies account for 33% of the global GDP and 70% of Asia’s GDP.
Pressure of trade protectionism
Trade emerged as a major topic of the summit because the three countries are working to cope with the US’s protectionism.
They have contributed to the US’s trade deficit. While the US is requesting to negotiate bilateral trade agreements with Japan and South Korea, China and Japan are among the countries targeted by the US’s new tariffs on aluminum and steel. In March, the US imposed higher import tariffs on China’s goods worth 50 billion USD. In return, China increased import taxes 25% on 128 American goods.
In response to Washington’s pressure, the three countries are promoting multilateral trade as the foundation for the region’s development and prosperity.
Economic cooperation initiative
At the summit, leaders of the three countries have agreed to strengthen cooperation to lead the regional and global economy on the right track. They will accelerate negotiations on a trilateral free trade agreement and the signing of the Regional Comprehensive Economic Partnership and move toward building an East Asia Economic Community. 13 rounds of the negotiations have been held, but trade, services and investment issues have blocked the signing of an agreement. If signed, the FTA would increase China’s GDP 2%, Japan’s 0.3% and Korea’s 2.8%.
The countries showed their determination to improve trade ties at the Business Forum held on the sideline of the summit. They are optimistic about cooperation and determined to promote more innovative and comprehensive growth. They agreed on the need to deal with trade protectionism and accelerate FTA negotiations in the region. Energy, the environment, and health insurance are said to be potential areas for cooperation. If China, Japan, and South Korea promote cooperation in liquified gas, they can enjoy stable natural gas at lower costs. They have agreed to work together to increase the total number of tourists to 30 million by 2020.