China, Japan and South Korea Are Working on a Trilateral Free-Trade Deal
As Washington wages trade wars on clients and erects barriers to entry, China seeks to economically integrate them instead
The trade ministers of China, Japan and South Korea agreed to work towards a regional trade pact and a trilateral free-trade deal on Sunday.The agreement was reached despite the recent bitter quarrel between Tokyo and Seoul and the uncertainty caused by China’s ongoing trade negotiations with the United States, as well as the threat of North Korea resuming nuclear tests.
The ministers did not announce any concrete results after Sunday’s talks in Beijing, but they voiced their willingness to continue discussions on the Regional Comprehensive Economic Partnership (RCEP) – which also includes the Asean group of countries, Australia, India and New Zealand – as well as the three-way free-trade deal.
Chinese Commerce Minister Zhong Shan said China was willing to work with South Korea and Japan to “oppose unilateralism and protectionism” and to support a global multilateral trade system. He added that the three countries should “jointly maintain regional peace and stability and promote an open world economy”.
While Zhong did not directly refer to China’s trade war with the US, it looms large in Beijing’s thinking, prompting a renewed eagerness to boost economic ties with its neighbours to mitigate the risk of “decoupling” from Washington.
Beijing and Washington agreed an interim trade deal earlier this month, with Donald Trump saying on Saturday it will be signed “very shortly”.
But the deal remains fragile and a widely shared view in Beijing is that the deal cannot stop the strategic competition between China and US in technology, geopolitics and even values.
Fan Gang, a leading Chinese economist, said last week that tensions between China and US were set to persist.
South Korea’s industry minister Sung Yun-mo and Japan’s trade minister Hiroshi Kajiyama also said in their opening remarks that three neighbours should work together to deliver the RCEP trade deal, which would cover a third of the global economy and half of the world’s population.
However, pisions remain among the three. For instance, Zhong said China still hoped to agree a regional trade deal next year – a hint that it would accept a swift conclusion that excluded India, which is reluctant to lower its trade barriers.
However, Kajiyama said Japan was adamant that the deal must include the South Asian giant.
There was also no public mention about moves to settle the ongoing dispute between Seoul and Tokyo – triggered by a South Korean court ruling that Japanese firms must compensate wartime forced labourers – that has seen the two countries placing export controls on each others’ goods.
Last Friday Japan partially lifted curbs on exports to South Korea of material used to make microchips in a goodwill gesture, although this alone is unlikely to be enough to resolve the dispute.
Huo Jianguo, the former head of a think-tank under China’s Ministry of Commerce, said earlier that the quarrel between Tokyo and Seoul would cast a shadow over the three-way discussions.
“The conflict between Japan and South Korea is not over yet,” Huo said. “China is willing to help the two to solve their disputes.”
The trade ministers’ meeting formed part of the preparations for a summit in Sichuan on Tuesday, when Premier Li Keqiang will host South Korean President Moon Jae-in and Japanese Prime Minister Shinzo Abe.
President Xi Jinping is also expected to meet Moon and Abe separately in Beijing on Monday.
Source: South China Morning Post
As shown in this article, there continue to be an unanticipated negative economic impact for Americans thanks to the Trump tariffs on China:
If we want someone to blame for the current situation we need look no further than Corporate America whose leadership transferred millions of jobs to overseas locations where the cost of labor was a fraction of what it cost in the United States, all in the name of higher profits, elevated stock prices and enriched compensation packages for executives.
This part of the world was once living in peace, freely exchanging goods and ideas, until some evil Europeans brought these nations to their knees, brutally pillaging and humiliating them, destroying their economy and culture. And corrupting them with the virus of violence in the process. Now it looks they’re coming back to the old peaceful Asian ways of envisioning the world and relationships with other nations. This is good news for the world.
maybe a bit more precise… if you could mention when there was peaceful trade among the three. …. it might be a long time ago…
however, I am very confident that it will work perfectly out this time. .. if they stick to the agreement