In light of uncertainties over US trade policies and the rising tide of trade protectionism, it has become urgent for China, Japan, and South Korea to achieve new breakthroughs in economic and trade cooperation. This collaboration is essential not only for the adjustment, restructuring, and future development of the industrial chains among regional countries, but also for upholding the multilateral trade system and advancing regional economic integration.
A Financial Times report, entitled “South Korea paralyzed in fight against Trump tariffs,” said on Tuesday that a survey of 239 companies released by the Korea Enterprises Federation this month found 82 percent expected “South Korea’s economy would be harmed by Trump’s expected protectionist policies.”
Concerns among South Korean companies regarding the economic and trade outlook are not unfounded. The high degree of external orientation of the South Korean economy makes it particularly sensitive to shifts in the global trade landscape. Changes in the external environment, especially policy adjustments by major trading partners like the US, can significantly impact its economy. Consequently, the rise in US trade protectionism will put immense pressure on South Korean companies. Ensuring economic development in such a context has become a major concern for the South Korean government and businesses.
The key to resolving this problem may lie in enhancing economic and trade cooperation with other major trading partners. Only by maximizing the benefits of enhanced economic and trade cooperation can South Korea effectively mitigate and offset the uncertainty and pressure caused by trade with the US.
In this context, accelerating the development of a China-Japan-South Korea free trade zone presents a significant strategic opportunity for South Korea. The economic and trade collaboration among Asia’s major economies – China, Japan, and South Korea – holds immense potential and promising prospects. By strengthening their economic and trade ties and creating a more integrated market, they can effectively boost regional trade vitality, enhance resilience against external risks, and foster a more stable external environment for each country’s economic development, thereby alleviating the negative impacts of trade protectionism.
The idea of establishing a China-Japan-South Korea free trade zone was first proposed in 2002. So far, 16 rounds of official negotiations have been carried out after they began in 2012. The FTA negotiations have experienced ups and downs, but the calls to resume discussions are becoming increasingly loud. According to the joint declaration issued after the trilateral summit meeting among the three countries in May this year, the three parties will keep discussions to speed up negotiations for a trilateral FTA.
When attending the trilateral foreign ministers’ meeting in November, Chinese Foreign Minister Wang Yi said the three countries should stick to mutual benefit and win-win results and restart negotiations on the trilateral free trade agreement among China, Japan and South Korea as soon as possible, Xinhua reported
From the perspective of economic complementarity, there is significant potential for cooperation among China, Japan, and South Korea. While it seems that the three are in a competitive relationship in the manufacturing sector, each of the three countries has its own strengths in manufacturing, which still allows for win-win collaboration as a large regional industrial chain.
China has a vast market, a comprehensive industrial system, and an increasingly advanced capacity for technological innovation. Japan possesses a strong technological foundation and excels in high-end manufacturing and technological innovation. South Korea demonstrates robust competitiveness in industries such as electronics and automotive manufacturing. By achieving trade breakthroughs and fostering a large market, they can promote the optimized allocation of resources, leverage their complementary advantages, and further enhance the stability and competitiveness of regional industrial and supply chains.
Moreover, trade breakthroughs among China, Japan, and South Korea are also of great importance to the implementation of the Regional Comprehensive Economic Partnership (RCEP). The collaborative effort will not only yield benefits for the three countries but also strengthen regional economic cooperation with other RCEP members.
GT
