Recently held trilateral meeting between and
amongst China, Japan and South Korea made a foundational shift, so to speak, in
terms economic cooperation in North-East Asia. For the first time they urged
for a comprehensive free trade agreement as a common business strategy. Surely,
it impacts geoeconomics. Details follow:
Even though it was the eleventh trilateral foreign
ministers meet held in Tokyo on March, 22, 2025 the conclusions arrived there were
earth shattering. The business strategy of bilateral to trilateral relationship
was discussed at length and thereafter an uplift from tripartite relationship
to regional and thence to global arena was flagged. Discussion would be
forthcoming on key areas namely regional economic integration in North-East
Asia with an emphasis on free
trade agreement (FTA) amongst all three countries to be initialled in
due course.
Furthermore, export control, which is the elephant in the room
doubling as the thorniest subject has to be deliberated upon in order to lessen
outside influence marring their mutual understanding and benefit derived from
it. Here the reference is undoubtedly America which of late, brings quite a lot
of pressure upon both Japan & South Korea as regards to trading with China.
That is a big scoop in geoeconomics. Let me give the nature of trading
relationship between the three countries:
a) China to Japan: China being the largest trading partner for Japan where Chinese exports to Japan notched at US$ 169 Billion and China importing goods from Japan valued at US$ 138 Billion. Trade surplus of US$ 29 Billion in Chinese favour
b) China to South Korea: China being the second largest trading partner after America where South Korea imports US$ 142 Billion worth goods from China and exports US$ 133 Billion netting a surplus of US$ 9 Billion in Chinese favour
c) Japan to South Korea : Japan exports is counted as US$ 42.7 Billion while imports from South Korea totals US$ 30.5 Billion, a net surplus in favour of Japan at US$ 12.2 Billion
d) Combined total value of trade by the big three
is therefore US$ 655
Billion.
The latest tariff war started by Trump is indeed a blessings in disguise. As and
when these three North-East Asia tigers move over from political issues
bedevilling their bilateral and trilateral relationship and arrive at a
congenial point to concentrate upon the economics side alone culminating in a
trade block would seal the
fate of Atlanticist coercion that has been the thorn in the flesh of all
three of them.
What is more the ushering in a FTA would make North-East
Asia as geoeconomics power house. The jury is still out there as to the
execution of this common business strategy by China, Japan and South Korea!
Cheers!
Muthu Ashraff Rajulu
Business Strategist
Mobile: + 94 777 265677
E-mail: cosmicgems@gmail.com
Blog: Business Strategist
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