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Source: http://www.doksinet Sino-Japanese relations and China-Japan-Korea FTA Term Paper Source: http://www.doksinet 1. One century of relations with Japan In 1947 the unconditioned surrender of the Empire of Japan marked the end of World War II. Even tough for China it was a victory, it couldn’t enjoy it, remembering the crimes Japanese army committed in the occupied regions of China. These crimes are the main reason of the difficulty in the relations between these two countries. In addition while Americans were paying the reconstruction of Japan through huge investments, the treatment was not as good for China, being the country led by the Communist party that Americans fears so much. Main concerns of China were the rearmy of Japan, that during World War II showed it’s full interest into Chinese raw materials, particularly in the Manchuria region. Moreover the status of Taiwan was a sensitive issue. The Chinese government reiterated its position that Taiwan is an

inalienable part of the territory of the PRC. Japan maintained its basic position that it was not in a position to judge the legal status of Taiwan any more since the former renounced all rights, titles and claims over the latter as a result of having accepted the San Francisco Peace Treaty, which came into effect in 1952. So, the diplomatic relations weren’t so easy to re-enstabilish, and at the first time, there were no official relationship between the two country, but only economical exchanges. The official diplomacy restart only in 1972, right after, with a surprise move, United States president Richard Nixon pay the first official visit to China after the war. Japan in the end could arrive at profitable diplomacy with China far earlier than United States, thanks to the proximity of the countries, the strong importance of the import export between the two countries, and also thanks to the fact that they shared a common enemy at the times, the Soviet Union and also, even tough

Taiwan was a colony of Japan for fifty years until the end of WWII and pro-Taiwan Japanese politicians were not few, Japan’s relationship with Taiwan were different from United States case, being mainly economic but not military. Japan and China, in general, developed and promoted a stable bilateral relationship through the rest of the 1970s and 1980s though politically difficult and sensitive questions sometimes occurred, including the issues of the Senkaku/Diaoyudao Islands, the history textbooks used at Japanese high schools, prime minister’s worship at the Yasukuni Shrine, and the “Kokaryo Dormitory” case. Further improving of the relationships have been brought trough Japan’s ODA to China. Japan started its ODA to China in 1979. Since then for thirty years until 2008, Japan provided a total amount of approximately US$35 billion: 3.2 trillion yen loan, 1472 billion grant aid, and 1505 billion technical assistance Japan’s ODA has been spent on large-scale infrastructure

constructions such as highways, airports, sea ports, power plants and Source: http://www.doksinet projects in sectors of medicine and the environment, and played an important role in helping China’s development and modernization. However, especially since the late 1990s, a necessity to review Japan’s ODA to China was often pointed out in Japan for the following reasons. First, the necessity to keep providing China with ODA was challenged because Japan experienced a lost decade and suffered from severe economic and fiscal conditions in the 1990s, whereas China achieved a rapid economic growth during the same period. Second, Japan became more critical about China’s compliance with Japan’s ODA Charter, which calls for full attention to military expenditures, democratization and basic human rights and freedoms. Third, China, one of the biggest recipients of Japan’s ODA, also provided its aid to third countries for political and economic purposes. Fourth, China was reluctant to

make publicity efforts within the country on Japan’s ODA. And fifth, as a result of Chinese economic development, its priority agenda has shifted from infrastructure constructions in coastal areas to projects for narrowing gap between coastal areas and inland regions, and global issues, etc. As a result of the review process, a new ODA plan to China was drafted, and Japan’s ODA to China was gradually reduced in amount. New yen loan projects finally ended in 2007 To conclude it can be said that relationships between China and Japan have always had ups and downs from the end of the war until today. Surely the cooperation and the talking have grew bigger until this new concept of the creation of a Free Trade Zone between the major country in the west pacific. The premises are good enough to expect a positive result from this project, granted the cooperation of all the involved parts. 2. One century of relations with Korea A short historical background is due at this point. Soon

after the surrender of Japan the situation in Korean peninsula was the following: the north part was occupied by the Red Army from USSR, that was fighting to repel the last Japanese defence that used Korea in the firsts years of war to infiltrate into mailand China. But United States did not trust that USSR would honor the pact between them, that involved the retirement of the Russian troops after the liberation; that’s why Americans decided to occupy Korea as well, in a effort to ensure the retreat. The country was divided along the 38th parallel, with the north part occupied by USSR and the south part occupied by USA. After the Potsdam conference decision was taken to divide Korea into two parts, without consulting the Koreans, in contradiction of the Cairo Conference. On 1948 election were taken in both North and South Korea, and governments respectively of extreme left and right were installed. Source: http://www.doksinet As nationalists, both Kim Il-Sung, elected in North

Korea, were intent upon reunifying Korea under its own political system. With Joseph Stalin and Mao Zedong fighting over the control of the Korean Peninsula, the North Koreans gained support from both the Soviet Union and the Peoples Republic of China. They escalated the continual border skirmishes and raids and then prepared to invade. South Korea, with limited weapon power, could not match them. During this era, at the beginning of the Cold War, the US government assumed that all communists, regardless of nationality, were controlled or directly influenced by Moscow; thus the US portrayed the civil war in Korea as a Soviet hegemonic maneuver. In the following war, China participate helping North Korean government in it’s effort to unify the country, but both of them were stopped by the UN troops, mostly American soldiers, who in the three years of war contended the land to arrive, at the end of the war, about at the same division that was enforced during the Potsdam conference.

Today, the foreigner soldiers have officially retired (even if the United States Seventh Fleet is still deployed in Yokosuka, Japan, with units positioned near Japan and South Korea in order to protect both countries from the North Korean threat), but only a ceasefire have been signed between North and South Korea, never the peace treaty. Also, many accidents have occurred between the two countries that also lead to a quantity of casualties 2.1 Relations with North Korea China has supported North Korea ever since Chinese fighters flooded onto the Korean peninsula to fight for their comrades in the Democratic Peoples Republic of Korea (DPRK) in 1950. Since the Korean War divided the peninsula between the North and South, China has lent political and economic backing to North Koreas leaders: Kim Il-Sung and his son and successor, Kim Jong-Il. In recent years, China has been one of the authoritarian regimes few allies. But this long-standing relationship suffered a strain when Pyongyang

tested a nuclear weapon in October 2006 and China agreed to UN Security Council Resolution 1718, which imposed sanctions on Pyongyang. China gives economic assistance to North Korea that accounts for about half of all Chinese foreign aid. Beijing provides the aid directly to Pyongyang, thereby enabling it to bypass the United Nations. China is North Koreas largest trade partner. It provides about half of all North Korean imports and received a quarter of its exports. China’s major imports from North Korea includes mineral fuels (coal), ores, woven apparel, iron and steel, fish and seafood, and stone. North Koreas imports from China includes mineral fuels and oil, machinery, electrical machinery, vehicles, plastic, and iron and steel. China is a major source for North Korean Source: http://www.doksinet imports of petroleum. In 2009, exports to the DPRK of mineral fuel oil totaled $327 million and accounted for 17% of all Chinese exports to the DPRK. Chinas support for Pyongyang

ensures a friendly nation on its northeastern border, and provides a buffer zone between China and democratic South Korea, which is home to around twenty-nine thousand U.S troops and marines. This allows China to reduce its military deployment in its northeast North Koreas allegiance is important to Beijing as a bulwark against U.S military dominance of the region as well as against the rise of Japans military. China also gains economically from its association with North Korea; growing numbers of Chinese firms are investing in North Korea and gaining concessions like preferable trading terms and port operations. Chinese companies have made major investments aimed at developing mineral resources in North Koreas northern region. The North Korea is not involved into the creation on the Free Trade Area. Anyway, it’s important to point out its relationships with China to understand China’s policy toward South Korea in the past. 2.2 Relations with South Korea Formal diplomatic

relations between Beijing and Seoul were established on August 24, 1992. Despite this relations, expecially economics, have grown bigger and bigger, so much that nowadays South Korea is the 4th commercial partner of China with a share higher than 10% of the Chinese import, for a value greater than 100 billion US$, while China is the first market for South Korea both for import and export. Throughout the Cold War, there were no official relations between communist China and capitalist South Korea. China maintained close relations with North Korea, and South Korea maintained diplomatic relations with the Republic of China (Taiwan). This hindered trade between Seoul and Beijing, because South Korea was unable to protect its citizens and business interests in China without some form of international agreements. However, because of secondary economic needs and geographic proximity, South Korea and China began active trade nonetheless. As for politics, both sides view their bilateral

relations from a strategic perspective, and have made great efforts to enhance political mutual trust. Military ties between the two countries have also enjoyed rapid development in recent years. China-South Korea relations have been constantly upgraded over the past 20 years Their relations were initially defined as "friendly cooperative relations," and were upgraded to "cooperative partnership" in 1998 and then to "comprehensive cooperative partnership" in 2003. Source: http://www.doksinet The South Korean and Chinese governments share concerns as the stability of the North Korean regime and the costs that would result for both countries if the regime were to collapse. Bordering Chinese provinces fear massive influxes of North Korean refugees. Many South Koreans hope to reunite the Korean people, who have been separated since the Korean War over 50 years ago. The poverty and isolation of the North Korean people and that nation’s crippled economy,

dilapidated or nonexistent infrastructure, and totalitarian government mean that rapid reunification in the face of crisis would impose a terrible cost on the Republic Of Korea and its people, far exceeding the costs to the Federal Republic of Germany of reunifying with East Germany in the 1990s. This is a major reason why the South wants any changes in the relationship to be planned and carefully executed. Some historical differences continue to cause tension in Sino-South Korean relations. In 2004, the Chinese Ministry of Foreign Affairs referred on its Web site to an ancient kingdom, Koguryo, that both North and South Koreans consider to have been an independent Korean realm, as a subordinate state under the jurisdiction of the Chinese dynasties. This enraged Koreans The South Korean government demanded that China correct the information, but China did not do so. Instead, the Chinese Ministry of Foreign Affairs removed all references to the Koguryo Kingdom from its Web site and

blocked all Chinese language Web sites and publications critical of China’s disputed historical claim. Eventually, Chinese and ROK officials met to resolve the matter and reached a understanding that there would be no more government level attempts to distort the history of Koguryo and that China would not lay claim to Koguryo in its textbooks. Many Korean people criticized the government for what they saw as timidity toward Beijing. There is some disagreement between China and the Republic of Korea over the appropriate demarcation of their Exclusive Economic Zones (EEZ) where their EEZ claims overlap. Officials of both nations met in early July 2008 in an attempt to resolve this issue. It was the thirteenth such meeting, and, like previous sessions, it resulted in little progress on the issue. China struck a deal with Japan in 2008 to explore jointly for gas in disputed portions of the East China Sea. South Korea also holds claims in the area and was irritated that it was not

included in the negotiations and resulting deal. The Republic Of Korea Foreign Ministry made a point of announcing that the South Korean government is paying attention to the China-Japan agreement and that maritime borders in the East China Sea among South Korea, China, and Japan are not decided yet. 3. Relations between Japan and South Korea Japans colonial domination of Korea from 1910 was often brutal and aimed at stamping out the Korean identity. Everyone was forced to learn Japanese and adopt Japanese names. Many were used as slave labour This was also Source: http://www.doksinet the case of the so-called comfort women, who were forced to act as prostitutes for Japanese soldiers. Even though all that came to an end more than 50 years ago, there is a deep-seated resentment against Japan in the Korean national consciousness. Since normalizing relations at the urging of the United States in 1965, Seoul and Tokyo have held annual foreign ministerial conferences. The usual issues

discussed have been trade, the status of the Korean minority population in Japan, the content of textbooks dealing with the relationship, Tokyos equidistant policy between Pyongyang and Seoul, and the occasional problems. But the huge amount of trade between the two countries is an important factor to improve the relations. Moreover, the two countries share such fundamental values as human rights and humanitarianism. Being technology-driven trading states of a similar kind, Japan and South Korea have developed high-tech industries featuring semiconductors, communication equipment and new energy resources, in addition to the heavychemical and automobile industries. The South Korean electronic industry is heavily dependent on technology and parts imported from Japan. Tokyo and Seoul will continue to maintain national security policies that place their alliances with the United States at the core. Also of great importance is that Japanese and Koreans are not just racially close but also

share a history of cultural development on the periphery of Chinese civilisation. Japans trade with South Korea was US$29.1 billion in 1991, with a surplus of nearly US$58 billion on the Japanese side. Japanese direct private investment in South Korea totaled US$44 billion in 1990 Japanese and South Korean firms often had interdependent relations, which gave Japan advantages in South Koreas growing market. Many South Korean products were based on Japanese design and technology A surge in imports of South Korean products into Japan in 1990 was partly the result of production by Japanese investors in South Korea. Since the late 19th century Japan preceded Korea in modernisation, leading to an unfortunate period between the two countries. Japan achieved rapid economic recovery after World War II, yet what have brought about qualitative changes in the bilateral relationship are South Korea’s rapid industrialisation since the 1970s and democratisation in the 1980s, and Japan’s economic

stagnation since the 1990s. Nowadays at the centre of East Asia sits China, which is greater than both these countries. To a large degree, the future of the Japan-South Korea relationship will be defined in the context of the trilateral relations among Japan, China and South Korea. For example, since the Lehman Brothers bankruptcy, particular attention has been drawn to an economic triangle emerging in East Asia in which Japan provides parts and materials made with superior technology, Korea exports intermediate goods to China or produces them in China, and China exports finished Source: http://www.doksinet goods to Japan and the United States. The total volume of trade among the three countries is more than 30 trillion yen, or 300 billion dollars. 4. China – Japan – South Korea Free Trade Agreement The idea of building a Free Trade Agreement among the three countries born in 2008 during the first China– Japan–South Korea trilateral summit. After the meeting a Joint Study

Committee (JSC) was established, building on the research jointly conducted by academic experts of the three countrie, in order to identify the strategic implications of a possible FTA among China, Japan and Korea and economic benefits that the three countries can expect from it, develop policy options for enhancing the economic relationship among the three countries by conducting a study on the feasibility of a comprehensive FTA covering a wide range of areas, taking into account the coverage of FTAs each county has been pursuing and pursue a common understanding among the three countries on issues involved, for a practical reference for future negotiations of a possible CJK FTA. The joint study ended smoothly and yielded positive results. The three countries agree that a trilateral FTA is feasible, and will benefit all three sides. The leaders of China, Japan and South Korea agreed to start negotiations in 2012 on a free-trade accord between three of Asia’s four biggest economies.

The establishment of a free-trade pact will unleash the economic vitality of the region and give a strong boost to economic integration in East Asia, according to what Chian’s Premier Wen said in an interview. A free-trade accord would bring together a market of more than 1.5 billion people Closer economic and trade ties may also help defuse political mistrust in the region, a legacy of Japan’s invasion of China and the Korean peninsula in the early 20th century. The agreement would expand trilateral and bilateral trade and investment and provide a comprehensive and institutional framework in which a wide range of trilateral cooperation would evolve. China welcomes Japan and South Korea expanding their investment in China and hopes they will be the primary destination for China’s investment. Trade between the three countries rose to $690 billion in 2011 from $130 billion in 1999, according to a research report released by China’s foreign ministry. Closer cooperation between the

three nations will not only be conducive to the development of each country itself, it will also boost the East Asian integration process and add drivers to world economic growth. Source: http://www.doksinet The primary goal of establishing the free trade zone is to open the countries markets to each other. It will inevitably touch the sensitive areas and products of the three countries. For example, China may have relatively large potential interests in the area of exporting agricultural products to Japan and South Korea. For Japan and South Korea, the agricultural product issue is the most sensitive issue in all the trade negotiations. But on the other hand, Japan and South Korea have obvious advantages in many industrial areas, especially in technology-intensive manufacturing areas such as the iron and steel, petrochemical engineering and automobile, and the further opening of these areas may affect Chinas relevant areas. Japan and South Korea are both countries heavily dependent

on foreign trade. In a sense, foreign trade is the foundation for developments of the two countries. The two countries advantages in the manufacturing area are also the key for them to hold the lead in many industrial areas in fierce competitions of the economic globalization. Trade expansion may lead to larger trade imbalances. It is the concern of many people in China, Japan and South Korea. However, this issue is an inevitable subject of any free trade zone negotiation The negotiation itself is actually a process of interest exchange. It will test the three countries wisdoms and foresights that how the shortterms interests, long-term interests, industrial interests and overall interests will be handled The regional economic integration should take opening as a principle. In the course of promoting the ChinaJapan-South Korea relations, economic and trade cooperation plays the role of a guide China always adheres to the principle of peaceful development, and facts have proved again

and again that a peaceful-rising China does not exert political influences by using economic measures like some other countries. The construction of the free trade zone has turned into an important part of Chinas opening-up policy. Currently, China has signed 10 free trade zone agreements. Source: http://www.doksinet Bibliography http://afe.easiacolumbiaedu/special/japan 1950 foreign relationshtm http://en.wikipediaorg/wiki/Korean War http://en.wikipediaorg/wiki/Pacific War http://en.wikipediaorg/w/indexphp?title=Division of Korea&oldid=494740799 http://en.wikipediaorg/w/indexphp?title=United States Seventh Fleet&oldid=495909278 http://ics.umedumy/images/ics/IJCSV2N3/IJCSV2N3-katayamapdf http://www.livemintcom/2012/05/13220352/China-Japan-South-Korea-agrehtml http://en.wikipediaorg/w/indexphp?title=People%27s Republic of China%E2%80%93North Korea relations&oldi d=494735952 http://en.wikipediaorg/w/indexphp?title=People%27s Republic of China%E2%80%93South Korea

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