Over the weekend and Monday (27 May), senior representatives from China, Japan and South Korea agreed to resume trade talks following a meeting in Seoul to discuss economic and security cooperation.
South Korean president Yoon Suk Yeol hosted Chinese premier Li Qiang and Japanese Prime Minister Fumio Kishida, marking the first time the three Asian nations have convened a tri-lateral summit in over four years.
Trade talks back on
A key outcome of the summit was the resumption of trade talks between the three countries. Japan Nikkei reported that representatives agreed to “speeding up negotiations" for a trilateral free trade agreement (FTA), committing to a deal that is "free, fair, comprehensive, high-quality, and mutually beneficial”.
In a joint statement, they affirmed the importance of rule-based trade supported by the WTO:
“We will continue to work to ensure a global level playing field to foster a free, open, fair, non-discriminatory, transparent, inclusive, and predictable trade and investment environment”.
Talks began in late 2012 and continued over the next seven years, until they were called off after the sixteenth round during 2019’s summit held in Chengdu, China, as a result of fraying relations.
Despite Li’s description of the Seoul meeting as a “new beginning”, a Chinese foreign policy expert at Kyunghee University in Seoul noted that greater Chinese participation would be required before meaningful talks could get underway. Choo Jae-woo told Nikkei that trilateral talks would need to include President Xi Jinping, rather than Li, because “without Xi's bargaining power, I don't think we can expect any progress [toward an FTA]”.
Value of free trade
During discussions, Li urged both countries to push back against the politicisation of trade and economic disputes, and ensure they maintain robust supply chains.
He also committed China to expanding market access, reportedly telling the chief of South Korean tech company Samsung, that international firms are an “indispensable force” and that they can “rest assured in their investment and development in China”.
Samsung and other South Korean tech firms like SK Hynix are significant global producers of semiconductor chips, which power advanced civil and military technology. The product has been the subject of US export controls, restricting the sale of cutting-edge semiconductor models from Nvidia and Intel to China.
In recent weeks the US has also imposed greater tariffs on imports of Chinese electric vehicles (EV), with both presidential candidates, incumbent Joe Biden and former president Donald Trump committed to taking greater action against China.
Amid US tensions and a series of open EU investigations into Chinese subsidies in emerging green tech sectors, greater cooperation was pledged.
North Korean interruption
Shortly before Sunday’s meeting, North Korea announced that it planned to launch a satellite into orbit using banned ballistic missile technology.
All three leaders called for the “denuclearisation of the Korean peninsula”, with Yoon describing the stability of the region as a “shared responsibility” and Kishida calling it a “common interest”.
China, as North Korea’s only military ally and biggest trading partner, said that all parties should show restraint.
Regional tensions
China’s military presence in the South China Sea has been an ongoing source of tension between the three nations. In December, a skirmish between Japanese and Chinese coast guard vessels off disputed islands in the East China Sea complicated relations further.
Ahead of Sunday’s meeting, Kishida also told Li he has “serious concerns” about China’s military presence in the South China Sea.
Seoul and Tokyo also warned Beijing against further action in the Taiwan Strait, as China has increased patrols in and around the independent island, over which it claims sovereignty.
Beijing criticised both countries for sending representatives to Taiwanese president Lai Ching-te's inauguration last week, given Ching-te’s pro-independence stance.
Moving forward
These tensions and increased cooperation between Japan, South Korea and the US have contributed to a deterioration in relations with China. This, combined with the Covid-19 pandemic, led to the almost five-year hiatus in the annual summit.
Following this meeting, the three leaders agreed to “institutionalise” an annual gathering, with Japan to host the next summit.