Chinese Foreign Minister Wang Yi’s recent visit to Tokyo for the 11th China-Japan-South Korea Trilateral Foreign Ministers’ Meeting marked a crucial step towards regional collaboration. As the first such meeting in a while, it underscored renewed efforts to strengthen economic and diplomatic ties. Additionally, Wang co-chaired the Sixth China-Japan High-Level Economic Dialogue with Japan’s Foreign Minister Takeshi Iwaya, where multiple consensus points were reached, covering trade, green development, and a commitment to a trilateral summit by the end of the year.

Tariffs and Trade: The Challenge of Protectionism

The economic ties between China, Japan, and South Korea are fundamental to East Asia’s stability. Trade between China and Japan remains strong, reinforcing their roles as each other’s key trading partners. Meanwhile, South Korea’s exports to China, its largest market, have been growing steadily. Investment flows also remain strong, with Japanese firms supporting China’s manufacturing sector and Chinese companies engaging with South Korea’s technology industry.

Despite these ties, global trade faces increasing challenges. The return of former U.S. President Donald Trump raises concerns over renewed protectionist policies, potential tariff increases, and the strengthening of a U.S.-led North American trade bloc. New tariffs on Chinese and Japanese exports to the U.S. could impact East Asian supply chains, forcing the region to seek alternative strategies to sustain economic growth.

To counter these pressures, Wang Yi has emphasized the need to revive discussions on a China-Japan-South Korea free trade agreement. This would build upon the existing Regional Comprehensive Economic Partnership (RCEP), leveraging each country’s strengths—Japan’s precision manufacturing, South Korea’s semiconductor industry, and China’s logistical infrastructure—while reducing tariff burdens.

China’s push to join broader trade frameworks, such as the Digital Economy Partnership Agreement (DEPA) and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), also reflects its commitment to regional integration. With Japan playing a key role in the CPTPP, its support for China’s accession could further promote shared economic growth and reduce tariff barriers among key Asian economies.

Strengthening Regional Supply Chains

Beyond trade agreements, China, Japan, and South Korea must strengthen their supply chain resilience amid rising protectionism. With global trade policies becoming more unpredictable, East Asia must work towards reducing its dependence on external markets and fostering a more self-sufficient economic system.

• Reducing Dependency on the U.S. Market: As the U.S. continues to impose tariffs on Chinese goods and restrict certain technology exports to Asia, strengthening intra-regional trade is essential. Encouraging cross-border investments and reducing non-tariff barriers between China, Japan, and South Korea will help mitigate the effects of external trade disruptions.
• Enhancing Regional Trade Infrastructure: China’s ports, Japan’s manufacturing networks, and South Korea’s technology expertise together form a robust supply chain. By improving coordination and reducing trade costs within the region, East Asia can maintain its competitive edge despite external tariff hikes.
  
  
• Pushing for Trade Liberalization in Asia: Expanding the RCEP framework and accelerating negotiations for a dedicated China-Japan-South Korea trade pact would help reduce the impact of global protectionism. These agreements could allow for the gradual elimination of tariffs, making regional trade more seamless and efficient.

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