1. ASEAN, Japan, & China

2. Historical legacy ( )
Japan occupied the whole Southeast Asia

3. Japan’s Appeal in WWII
Japan’s appeal to Southeast Asia during World War II
Economic benefits
Japanese model for economic development since the Meiji Restoration of 1868
``Greater East Asia Co-Prosperity Sphere”
Anti-colonialism
``Asia for the Asians”
nationalist movements

4. ``Co-Prosperity Sphere”
``Greater East Asia Co-Prosperity Sphere”
Japan’s economic foreign policy During World War II
Absorption of the economies of all occupied countries
Extraction of resources to fuel the war against the Allies

5. Consequence of WWII How did Southeast Asia change?
Decline of Western colonial power
Decline of the myth of European superiority
Rise in
Southeast Asian independence movements
Japanese interests and influence in Southeast Asia
US interests and influence in Southeast Asia
Integration into global economy & community

6. Japan Returns (1950s) US strategy concerning Japan
``dynamo of wider regional recovery in Free Asia”
contain Communism
Closure of China market to Japan in 1950s and 1960s
Japan’s economic dependence on US
materials and markets of Southeast Asia

7. Japan & Southeast Asia: 1
Japan’s economic diplomacy in ASEAN
bilateral trade promotion & economic linkage
>1/4 of ASEAN’s total trade was with Japan
Japan invest more in ASEAN than US
Asian Development Bank (established in 1966)
avoid taking any political initiative
1974: anti-Japanese demonstrations during Japanese Prime Minister’s visit

8. ASEAN Attitudes Singapore Prime Minister Lee Kuan Yew said in 1969:
``My generation and that of my elders cannot forget [WWII] as long as we live”
``The policy of our government is not to allow the unhappy experiences of the past to inhibit us from a policy which can enhance our growth rates by Japanese participation”

9. P.R.C. and ASEAN: 1
In 1960s, Mao supported communist insurgencies in Southeast Asia
PRC-ASEAN relations were damaged by Mao’s policies during Cultural Revolution
changes in 1970s
PRC domestic policies became less radical
U.S. President Nixon visited Beijing and Shanghai

10. Japan & Southeast Asia: 2
Anti-Japanese demonstrations of 1974
Fall of South Vietnam in 1975
Japan began taking an active interest in the political affairs of Southeast Asia
from bilateral relations to focus on ASEAN

11. Japan’s Reaction to 1978 1978: Vietnam invaded Cambodia
threatened Japan’s economic interests
Japan maintained a dialogue with Vietnam
Japan’s reaction
aligned with US-ASEAN-PRC camp
halted economic assistance to Vietnam
called for Vietnam to withdrew all troops from Cambodia

12. P.R.C. and ASEAN: 2 US relationship with PRC normalized in 1979
US-PRC alignment in opposing the spread of Soviet influence in Southeast Asia
ASEAN-PRC alignment in opposing Vietnam
PRC started reform and opening in 1979
trade and economic ties with ASEAN gained importance

13. ASEAN’s Attitude to Japan
Distrust remained but reduced
Fears of Japan’s imperialist tendencies remained but reduced

14. ASEAN-Japan Econ. Links
Economic links strengthened
ASEAN countries’ development programs needed Japan’s support and investment
Japan as an economic model and partner
Malaysia’s ``Look East”
Laos and Singapore’s ``Learn from Japan”
Complementary economies of Southeast Asia and Japan

16. Japan & Southeast Asia: 3
Since the end of the Cold War
Japan redefined its role in international affairs after the Cold War
Japan-ASEAN relationship strengthened
greater interactions
ASEAN as a region and as an institution
Japan’s deeper involvement in regional affairs
more politically engaged

17. Japan’s Political Role
1990: Tokyo Conference on Cambodia
1992: Japan sent 1,800 troops as UN peacekeeping forces to Cambodia
since 1994: active participant in regional multilateral arrangements such as ASEAN Regional Forum (ARF)
since 1997: political/security dialogues with Singapore, Thailand, and Indonesia

18. ASEAN Receptiveness Malaysia Prime Minister Mahathir said in 1991:
``As we approach the year 2000, it is our hope that Japan will initiate changes in its policies that will effectively bring about an enhanced political, socio-cultural role in not only the Southeast Asia region but also in the global context”

19. Diminishing Role of History
After the Cold War
Increasing economic interdependence between Japan & Southeast Asia
Fear of Japanese remilitarization reduced
Generation change
“China threat”

20. Rise of China China’s ``Reform & Opening-up” policy
Increasing presence in Southeast Asia
Expanding trade
Political relations and influence
visits by leaders and summit meetings
substantive agreements on issues ranging from trade to military cooperation
by 1991 PRC has normalized relations with all the ASEAN member states

21. Growing Regionalism (A+3)
1995: Asia-Europe Meeting in Bangkok
ASEAN asked Japan, China, & South Korea to join as Asian representatives
Japan feared alienating US & China
US & Australian reservations about a regional grouping in Pacific Asia
impact on the success of APEC
possible division of global economy

23. ASEAN+3 Summit China & Japan compete for regional leadership position
ASEAN+3 summit has taken place at each of the ASEAN summit since 1997
regular ASEAN+3 meetings of finance & economic ministers

24. Asian Financial Crisis (‘97)
Japan’s role in Southeast Asia
contribution of funds and initiatives
emergency financial assistance
aid plan for regional human resource development
cooperation in information technology sector
inaction on banking reforms
ineffective economic stimulus measures
ASEAN urged faster action to help recovery

25. Asian Financial Crisis (‘97)
China’s role:
refrained from devaluing yuan
contribution of funds and initiatives
entry into World Trade Organization (2001)
ASEAN-PRC Free Trade Area (2001)
threatens Japan’s economic leadership in Southeast Asia

26. Japan
Japan signed its first-ever free-trade agreement (with Singapore) in 2002
Economic Partnership Agreements (EPA)

27. ASEAN Free-Trade Agreements
ASEAN-Australia-New Zealand FTA
ASEAN-China FTA
ASEAN-India FTA
ASEAN-Japan FTA
ASEAN-Korea FTA
ASEAN and its FTA partners negotiations for the Regional Comprehensive Economic Partnership (RCEP)

32. Conclusions ASEAN+3 have considerable potential
APEC may be too broad
ASEAN may be too narrow
Contested regional leadership position between Japan and China
Japan: the most advanced economy in Asia
China’s momentum