• Home
  • About RSIS
    • Introduction
    • Building the Foundations
    • Welcome Message
    • Board of Governors
    • Staff Profiles
      • Executive Deputy Chairman’s Office
      • Dean’s Office
      • Management
      • Distinguished Fellows
      • Faculty and Research
      • Associate Research Fellows, Senior Analysts and Research Analysts
      • Visiting Fellows
      • Adjunct Fellows
      • Administrative Staff
    • Honours and Awards for RSIS Staff and Students
    • RSIS Endowment Fund
    • Endowed Professorships
    • Career Opportunities
    • Getting to RSIS
  • Research
    • Research Centres
      • Centre for Multilateralism Studies (CMS)
      • Centre for Non-Traditional Security Studies (NTS Centre)
      • Centre of Excellence for National Security (CENS)
      • Institute of Defence and Strategic Studies (IDSS)
      • International Centre for Political Violence and Terrorism Research (ICPVTR)
    • Research Programmes
      • National Security Studies Programme (NSSP)
      • Studies in Inter-Religious Relations in Plural Societies (SRP) Programme
    • [email protected] Newsletter
    • Other Research
      • Future Issues And Technology (FIT)
      • Science and Technology Studies Programme (STSP) (2017-2020)
  • Graduate Education
    • Graduate Programmes Office
    • Overview
    • MSc (Asian Studies)
    • MSc (International Political Economy)
    • MSc (International Relations)
    • MSc (Strategic Studies)
    • NTU-Warwick Double Masters Programme
    • PhD Programme
    • Exchange Partners and Programmes
    • How to Apply
    • Financial Assistance
    • Meet the Admissions Team: Information Sessions and other events
    • RSIS Alumni
  • Alumni & Networks
    • Alumni
    • Asia-Pacific Programme for Senior Military Officers (APPSMO)
    • Asia-Pacific Programme for Senior National Security Officers (APPSNO)
    • SRP Executive Programme
    • Terrorism Analyst Training Course (TATC)
  • Publications
    • RSIS Publications
      • Annual Reviews
      • Books
      • Bulletins and Newsletters
      • Commentaries
      • Counter Terrorist Trends and Analyses
      • Commemorative / Event Reports
      • IDSS Paper
      • Interreligious Relations
      • Monographs
      • NTS Insight
      • Policy Reports
      • Working Papers
      • RSIS Publications for the Year
    • Glossary of Abbreviations
    • External Publications
      • Authored Books
      • Journal Articles
      • Edited Books
      • Chapters in Edited Books
      • Policy Reports
      • Working Papers
      • Op-Eds
      • External Publications for the Year
    • Policy-relevant Articles Given RSIS Award
  • Media
    • Great Powers
    • Sustainable Security
    • Other Resource Pages
    • Media Highlights
    • News Releases
    • Speeches
    • Vidcast Channel
    • Audio/Video Forums
  • Events
  • Giving
  • Contact Us
Facebook
Twitter
YouTube
RSISVideoCast RSISVideoCast rsis.sg
Linkedin
instagram instagram rsis.sg
RSS
  • Home
  • About RSIS
      • Introduction
      • Building the Foundations
      • Welcome Message
      • Board of Governors
      • Staff Profiles
        • Executive Deputy Chairman’s Office
        • Dean’s Office
        • Management
        • Distinguished Fellows
        • Faculty and Research
        • Associate Research Fellows, Senior Analysts and Research Analysts
        • Visiting Fellows
        • Adjunct Fellows
        • Administrative Staff
      • Honours and Awards for RSIS Staff and Students
      • RSIS Endowment Fund
      • Endowed Professorships
      • Career Opportunities
      • Getting to RSIS
  • Research
      • Research Centres
        • Centre for Multilateralism Studies (CMS)
        • Centre for Non-Traditional Security Studies (NTS Centre)
        • Centre of Excellence for National Security (CENS)
        • Institute of Defence and Strategic Studies (IDSS)
        • International Centre for Political Violence and Terrorism Research (ICPVTR)
      • Research Programmes
        • National Security Studies Programme (NSSP)
        • Studies in Inter-Religious Relations in Plural Societies (SRP) Programme
      • [email protected] Newsletter
      • Other Research
        • Future Issues And Technology (FIT)
        • Science and Technology Studies Programme (STSP) (2017-2020)
  • Graduate Education
      • Graduate Programmes Office
      • Overview
      • MSc (Asian Studies)
      • MSc (International Political Economy)
      • MSc (International Relations)
      • MSc (Strategic Studies)
      • NTU-Warwick Double Masters Programme
      • PhD Programme
      • Exchange Partners and Programmes
      • How to Apply
      • Financial Assistance
      • Meet the Admissions Team: Information Sessions and other events
      • RSIS Alumni
  • Alumni & Networks
      • Alumni
      • Asia-Pacific Programme for Senior Military Officers (APPSMO)
      • Asia-Pacific Programme for Senior National Security Officers (APPSNO)
      • SRP Executive Programme
      • Terrorism Analyst Training Course (TATC)
  • Publications
      • RSIS Publications
        • Annual Reviews
        • Books
        • Bulletins and Newsletters
        • Commentaries
        • Counter Terrorist Trends and Analyses
        • Commemorative / Event Reports
        • IDSS Paper
        • Interreligious Relations
        • Monographs
        • NTS Insight
        • Policy Reports
        • Working Papers
        • RSIS Publications for the Year
      • Glossary of Abbreviations
      • External Publications
        • Authored Books
        • Journal Articles
        • Edited Books
        • Chapters in Edited Books
        • Policy Reports
        • Working Papers
        • Op-Eds
        • External Publications for the Year
      • Policy-relevant Articles Given RSIS Award
  • Media
      • Great Powers
      • Sustainable Security
      • Other Resource Pages
      • Media Highlights
      • News Releases
      • Speeches
      • Vidcast Channel
      • Audio/Video Forums
  • Events
  • Giving
  • Contact Us
  • instagram instagram rsis.sg
Connect

Getting to RSIS

Map

Address

Nanyang Technological University
Block S4, Level B3,
50 Nanyang Avenue,
Singapore 639798

View location on Google maps Click here for directions to RSIS

Get in Touch

    Connect with Us

      rsis.ntu
      rsis_ntu
      rsisntu
    RSISVideoCast RSISVideoCast rsisvideocast
      school/rsis-ntu
    instagram instagram rsis.sg
      RSS
    Subscribe to RSIS Publications
    Subscribe to RSIS Events

    RSIS Intranet

    S. Rajaratnam School of International Studies Think Tank and Graduate School Ponder The Improbable Since 1966
    Nanyang Technological University Nanyang Technological University

    Skip to content

     
    • RSIS
    • Publication
    • RSIS Publications
    • CO13002 | East Asian Regional Cooperation: Japan Falling Behind China?
    • Annual Reviews
    • Books
    • Bulletins and Newsletters
    • Commentaries
    • Counter Terrorist Trends and Analyses
    • Commemorative / Event Reports
    • IDSS Paper
    • Interreligious Relations
    • Monographs
    • NTS Insight
    • Policy Reports
    • Working Papers
    • RSIS Publications for the Year

    CO13002 | East Asian Regional Cooperation: Japan Falling Behind China?
    Mushahid Ali, Hiro Katsumata

    03 January 2013

    download pdf
    RSIS Commentary is a platform to provide timely and, where appropriate, policy-relevant commentary and analysis of topical and contemporary issues. The authors’ views are their own and do not represent the official position of the S. Rajaratnam School of International Studies (RSIS), NTU. These commentaries may be reproduced with prior permission from RSIS and due credit to the author(s) and RSIS. Please email to Editor RSIS Commentary at [email protected].

    Synopsis

    Japan, which previously had a leading role in Southeast Asian regional cooperation, seems to have fallen behind China in recent decades. However it is still a crucial economic player and can balance China politically in regional forums.

    Commentary

    CHINA’S PRESENCE in East Asian regional cooperation has been conspicuous. As one of the founding members of the two key regional institutions – the ASEAN Plus Three and the East Asia Summit – Beijing seems to be an indispensable partner of the Association of Southeast Asian Nations (ASEAN) in the process of regional cooperation in East Asia, which encompasses Northeast and Southeast Asia.

    The expanding Chinese market, with a population of over 1.3 billion, is attracting global investors while the governments in the region are seeking to strengthen economic relations with Beijing. Where is Japan in this changing regional framework? As a historical rival of China in Northeast Asia, the position of Japan in East Asian cooperation bears examination.

    Japan in East Asia in the past

    Until about a decade ago, Japan had been undoubtedly the most important partner of ASEAN in East Asia. For several decades in the post-war era, East Asian regional cooperation was all about the development of cordial relations between Tokyo and the ASEAN countries. As the most advanced economy in East Asia, Japan was the centre of regional economic development. It was the forerunner of what the World Bank called the “East Asian miracle,” driven by the four East Asian tiger economies – South Korea, Taiwan, Hong Kong and Singapore – and subsequently by the Southeast Asian trio Malaysia, Thailand and Indonesia.

    Japan was by far the most important source of official development assistance (ODA) which facilitated the development of social infrastructures crucial to Southeast Asia’s economic development. Moreover, for these countries, Japan was one of the most important sources of foreign direct investment (FDI). Many of the Japanese multinational corporations also relocated their production bases to Southeast Asia in response to the rising yen in the 1980s, thereby investing a large amount of capital in the ASEAN countries.

    Japanese FDI was significant in terms not only of job creation but also of technological transfer from Tokyo to Southeast Asia. At a more fundamental level, it contributed to their economic development, by enabling them to pursue an “export-oriented” development strategy, which is based on the export of industrial products to the European and the North American markets. Many of their export products were manufactured in factories operated by Japanese multinational corporations.

    Given the extent of economic cooperation between Tokyo and the ASEAN countries in the 1980s, Japan was the only country in East Asia invited to participate in the ASEAN Post-Ministerial Conferences (PMCs) as an official “dialogue partner,” along with other advanced industrial countries. The ASEAN-PMC was effectively the most important venue for the Southeast Asian association to strengthen their economic relations with these advanced economies.

    Perhaps more significantly, Japan also supported the establishment of the ASEAN Regional Forum (ARF) in 1994. One major contribution Tokyo made was to convince the United States of the value of multilateral security cooperation in the Asia-Pacific, to be led by ASEAN. At the time, Washington was more inclined towards bilateral security arrangements with its security partners in Asia.

    Today, the US is more assertive about its Asia-Pacific presence while the ARF is undoubtedly the most comprehensive security forum in the region, involving all the key players, including the US as well as China, Japan, South Korea, North Korea, India and Pakistan.

    Japan in East Asia today

    However, over the last decade, Japan seems to have fallen behind China. Some observers even see Beijing as ASEAN’s most important partner in East Asia and the centre of East Asian regional cooperation. This observation is to an extent valid.

    It is in the area of free trade that Japan most clearly seems to have fallen behind China, which was the first to conclude a free trade agreement (FTA) with ASEAN. Only after Beijing’s FTA with ASEAN in 2002 did Tokyo start to make serious efforts to reach a similar agreement with the Southeast Asian association. Tokyo finally concluded an economic partnership agreement with ASEAN in 2008.

    It is also worth noting that only after China acceded to ASEAN’s Treaty of Amity and Cooperation (TAC) in 2003 did Japan do so the following year. TAC has been regarded as the fundamental basis of political cooperation between ASEAN and external powers. In the security field, it is probably fair to say that China has since been the most active non-ASEAN participant in the ARF, voluntarily organising a number of multilateral meetings and activities under the auspices of the ARF.

    That being so, has Japan become irrelevant? Does the rise of China indicate the fading of Japan’s roles in East Asian regional cooperation? The answer is negative. Tokyo is still one of the most important sources of FDI and ODA to the ASEAN countries, and also one of the most active players in the ARF. Indeed Japan’s roles in regional cooperation are expanding as a result of the rise of China.

    In the economic field, Japanese FDI is supporting a new phase of the export-oriented strategy of the ASEAN countries. Rather than exporting final products to Europe and North America, the ASEAN countries are now exporting industrial components to China, where they are assembled for export to Europe and North America. Many of these industrial components are manufactured in factories operated by Japanese multinational corporations.

    Japan’s balancing role

    In the security field, Japan is expected to help ASEAN by playing a balancing role against China. For the Southeast Asian countries, the rise of China constitutes not only an economic opportunity but also a security threat. Many of these countries are concerned about China’s growing assertiveness over the territorial disputes in the South China Sea. Regional countries expect Japan to counter-balance the power of China. This is why the Philippines has welcomed the recent proposal of the Liberal Democratic Party (LDP) of Japan to upgrade the country’s “self-defence” force to a full-fledged military force.

    This of course does not mean the Southeast Asian countries prefer Japan to become a regional military power or play a hegemonic role in East Asia. For obvious historical reasons, they are still cautious about Japan playing a security role in the region. Nevertheless, against the backdrop of China’s rise and the aggravation of the South China Sea disputes, they do expect Japan to check the power of China by political, if not military means, in forums such as the ARF.

    With the return to power of the LDP and Shinzo Abe as the next prime minister, Japan is expected to recognise the country’s new roles mentioned above, and contribute to regional cooperation in East Asia. Otherwise Japan will be left behind.

    About the Authors    

    Mushahid Ali is Senior Fellow at the S. Rajaratnam School of International Studies (RSIS), Nanyang Technological University and Dr Hiro Katsumata is Research Fellow with the Waseda University Institute of Asia-Pacific Studies, Tokyo.

    Categories: Commentaries / Regionalism and Multilateralism / East Asia and Asia Pacific

    Last updated on 25/09/2014

    RSIS Commentary is a platform to provide timely and, where appropriate, policy-relevant commentary and analysis of topical and contemporary issues. The authors’ views are their own and do not represent the official position of the S. Rajaratnam School of International Studies (RSIS), NTU. These commentaries may be reproduced with prior permission from RSIS and due credit to the author(s) and RSIS. Please email to Editor RSIS Commentary at [email protected].

    Synopsis

    Japan, which previously had a leading role in Southeast Asian regional cooperation, seems to have fallen behind China in recent decades. However it is still a crucial economic player and can balance China politically in regional forums.

    Commentary

    CHINA’S PRESENCE in East Asian regional cooperation has been conspicuous. As one of the founding members of the two key regional institutions – the ASEAN Plus Three and the East Asia Summit – Beijing seems to be an indispensable partner of the Association of Southeast Asian Nations (ASEAN) in the process of regional cooperation in East Asia, which encompasses Northeast and Southeast Asia.

    The expanding Chinese market, with a population of over 1.3 billion, is attracting global investors while the governments in the region are seeking to strengthen economic relations with Beijing. Where is Japan in this changing regional framework? As a historical rival of China in Northeast Asia, the position of Japan in East Asian cooperation bears examination.

    Japan in East Asia in the past

    Until about a decade ago, Japan had been undoubtedly the most important partner of ASEAN in East Asia. For several decades in the post-war era, East Asian regional cooperation was all about the development of cordial relations between Tokyo and the ASEAN countries. As the most advanced economy in East Asia, Japan was the centre of regional economic development. It was the forerunner of what the World Bank called the “East Asian miracle,” driven by the four East Asian tiger economies – South Korea, Taiwan, Hong Kong and Singapore – and subsequently by the Southeast Asian trio Malaysia, Thailand and Indonesia.

    Japan was by far the most important source of official development assistance (ODA) which facilitated the development of social infrastructures crucial to Southeast Asia’s economic development. Moreover, for these countries, Japan was one of the most important sources of foreign direct investment (FDI). Many of the Japanese multinational corporations also relocated their production bases to Southeast Asia in response to the rising yen in the 1980s, thereby investing a large amount of capital in the ASEAN countries.

    Japanese FDI was significant in terms not only of job creation but also of technological transfer from Tokyo to Southeast Asia. At a more fundamental level, it contributed to their economic development, by enabling them to pursue an “export-oriented” development strategy, which is based on the export of industrial products to the European and the North American markets. Many of their export products were manufactured in factories operated by Japanese multinational corporations.

    Given the extent of economic cooperation between Tokyo and the ASEAN countries in the 1980s, Japan was the only country in East Asia invited to participate in the ASEAN Post-Ministerial Conferences (PMCs) as an official “dialogue partner,” along with other advanced industrial countries. The ASEAN-PMC was effectively the most important venue for the Southeast Asian association to strengthen their economic relations with these advanced economies.

    Perhaps more significantly, Japan also supported the establishment of the ASEAN Regional Forum (ARF) in 1994. One major contribution Tokyo made was to convince the United States of the value of multilateral security cooperation in the Asia-Pacific, to be led by ASEAN. At the time, Washington was more inclined towards bilateral security arrangements with its security partners in Asia.

    Today, the US is more assertive about its Asia-Pacific presence while the ARF is undoubtedly the most comprehensive security forum in the region, involving all the key players, including the US as well as China, Japan, South Korea, North Korea, India and Pakistan.

    Japan in East Asia today

    However, over the last decade, Japan seems to have fallen behind China. Some observers even see Beijing as ASEAN’s most important partner in East Asia and the centre of East Asian regional cooperation. This observation is to an extent valid.

    It is in the area of free trade that Japan most clearly seems to have fallen behind China, which was the first to conclude a free trade agreement (FTA) with ASEAN. Only after Beijing’s FTA with ASEAN in 2002 did Tokyo start to make serious efforts to reach a similar agreement with the Southeast Asian association. Tokyo finally concluded an economic partnership agreement with ASEAN in 2008.

    It is also worth noting that only after China acceded to ASEAN’s Treaty of Amity and Cooperation (TAC) in 2003 did Japan do so the following year. TAC has been regarded as the fundamental basis of political cooperation between ASEAN and external powers. In the security field, it is probably fair to say that China has since been the most active non-ASEAN participant in the ARF, voluntarily organising a number of multilateral meetings and activities under the auspices of the ARF.

    That being so, has Japan become irrelevant? Does the rise of China indicate the fading of Japan’s roles in East Asian regional cooperation? The answer is negative. Tokyo is still one of the most important sources of FDI and ODA to the ASEAN countries, and also one of the most active players in the ARF. Indeed Japan’s roles in regional cooperation are expanding as a result of the rise of China.

    In the economic field, Japanese FDI is supporting a new phase of the export-oriented strategy of the ASEAN countries. Rather than exporting final products to Europe and North America, the ASEAN countries are now exporting industrial components to China, where they are assembled for export to Europe and North America. Many of these industrial components are manufactured in factories operated by Japanese multinational corporations.

    Japan’s balancing role

    In the security field, Japan is expected to help ASEAN by playing a balancing role against China. For the Southeast Asian countries, the rise of China constitutes not only an economic opportunity but also a security threat. Many of these countries are concerned about China’s growing assertiveness over the territorial disputes in the South China Sea. Regional countries expect Japan to counter-balance the power of China. This is why the Philippines has welcomed the recent proposal of the Liberal Democratic Party (LDP) of Japan to upgrade the country’s “self-defence” force to a full-fledged military force.

    This of course does not mean the Southeast Asian countries prefer Japan to become a regional military power or play a hegemonic role in East Asia. For obvious historical reasons, they are still cautious about Japan playing a security role in the region. Nevertheless, against the backdrop of China’s rise and the aggravation of the South China Sea disputes, they do expect Japan to check the power of China by political, if not military means, in forums such as the ARF.

    With the return to power of the LDP and Shinzo Abe as the next prime minister, Japan is expected to recognise the country’s new roles mentioned above, and contribute to regional cooperation in East Asia. Otherwise Japan will be left behind.

    About the Authors    

    Mushahid Ali is Senior Fellow at the S. Rajaratnam School of International Studies (RSIS), Nanyang Technological University and Dr Hiro Katsumata is Research Fellow with the Waseda University Institute of Asia-Pacific Studies, Tokyo.

    Categories: Commentaries / Regionalism and Multilateralism

    Last updated on 25/09/2014

    Back to top

    Terms of Use | Privacy Statement
    Copyright © S. Rajaratnam School of International Studies. All rights reserved.
    This site uses cookies to offer you a better browsing experience. By continuing, you are agreeing to the use of cookies on your device as described in our privacy policy. Learn more
    OK
    Latest Book
    CO13002 | East Asian Regional Cooperation: Japan Falling Behind China?

    Synopsis

    Japan, which previously had a leading role in Southeast Asian regional cooperation, seems to have fallen behind China in ...
    more info