Category: Economic Relations

Issues High on the U.S. and Japan’s ‘To Do’ List


In 2016, the regional order in East Asia will continue to be characterised by a sense of instability. A key question as 2016 progresses will be: how best to focus US–Japan cooperation to address both the challenges and opportunities that accompany the rise of China? Six thorny issues carry the potential to undermine US–Japan cooperation. Close, careful US–Japan consultation and cooperation is required to ensure that these issues do not create a wedge in the alliance.

Japan, Iran Enter Into Investment Treaty, $10 Billion Debt Guarantee


Japan and Iran have entered into a bilateral investment treaty and an agreement for a $10 billion debt guarantee for Iran. The move could create an enormous inflow of Japanese investment in the Middle Eastern nation. The Japanese Ministry of Economy, Trade, and Industry and Japan’s Minister for Foreign Affairs, Fumio Kishida, approved the agreement.

These officials welcomed the signing of the investment treaty, and feel the $10 billion debt guarantee will allow Japanese companies to invest without significant risk.

Playing Both Sides of the US-China Relationship


The term ‘hedging’, one of the most widely used in contemporary discussions on East Asian security, intends to capture the fact that most states in the region face conflicting economic and security interests. States wish to maximise trade and investment ties with Beijing and welcome China into the region’s political order, but also feel the need to maintain a close security relationship with Washington.

The Strategic Building of the Sino-African Relations


That Africa is becoming pro-China in terms of trade and economic ties is no longer a boardroom discussion but rather a strategically executed plan in the public domain. The growth in the Sino-African relations is evident by the rise in trade volumes between the two partners from US$10 billion in 2000 to about US$198 billion in 2012. A white paper released by the Chinese government in 2015 shows that the trade volumes between the two partners are projected to reach about US$220 billion in 2014. Today, China is the leading trade partner with Africa.

Finding Taiwan-China Relationship Wiggle Room


What does the victory of the independence-leaning Democratic Progressive Party’s (DPP) Tsai Ing-wen in Taiwan’s presidential election mean for cross-Strait relations? Today’s Democratic Progressive Party (DPP) is a considerably different political animal to former president Chen Shui-bian’s DPP.

Closer Thai-Cambodia Ties are an Economic Win


The December 2015 meeting between Thai Prime Minister Prayuth Chan-ocha and his Cambodian counterpart Hun Sen has boosted bilateral relations. Relations got off to a rocky start after the Thai coup of May 2014 when Thailand abruptly ordered the exit of up to 100,000 unregistered Cambodian workers. Now the future looks bright. There is even speculation in the Thai press that the Thai Royal Princess Sirindorn may visit Cambodia in February.

Two key policy decisions underpin the improved bilateral ties.

Strengthening Economic Ties Across Asia


As the world deals with the “new normal” of a slowing China, regional financial and economic integration is more important than ever, and South Asia is strategically poised to play an influential part.

There are several reasons why it is time to take a fresh look at the potential bridging role of South Asian economies in Asian integration.

China Likely to Seek Sanctions after Victory over the EU at WTO


For years, the European Union (EU) has imposed tariffs on Chinese-made screws, nuts, and bolts made of either iron or steel. However, on Monday, China won an appeal in a seven-year legal battle before the World Trade Organization, which found that those tariffs are illegal. Although China has never before sought sanctions from the WTO, many believe the length of this battle may cause the trade giant to make a claim for compensation. 

South Korea-Japan Reconciliation Setback


All eyes have been on North Korea since it made the announcement on 6 January that it possesses hydrogen bombs. The possibility of conflict with a nuclear North Korea means that it is more important than ever for Japan and South Korea to find a common position. World observers are therefore looking back with a sigh of relief at the recent agreement between South Korea and Japan on the issue of ‘comfort women’, which had divided the two countries for nearly three decades.

A Plea for Macroeconomic Cooperation


It looks already as if 2016 will be a pivotal year for the world economy. RBS has advised investors to “sell everything except for high-quality bonds” as turmoil has returned to stock markets. The Dow Jones and S&P indices have fallen by more than 6% since the start of the year, which is the worst ever, yearly start. There is a similar story in other major markets, with the FTSE leading companies losing some £72bn of value in the same period.