China, Japan And Korea Build The World'S Third Largest Economic Alliance

On the morning of May 30th, the third China Japan ROK leaders meeting ended in Jeju Island, South Korea. Chinese Premier Wen Jiabao, South Korean President Lee Myung-bak and Japanese Prime Minister Hatoyama Yukio attended the joint press conference.

Wen Jiabao said that China, Japan and South Korea have reached a broad consensus on future planning.

He mentioned in particular that the urgent task is to properly cope with the serious impact of the Cheonan incident, especially to avoid conflicts.

In the "2020 China Japan ROK cooperation outlook" (outlook) published the previous day, the leaders of the three countries agreed that denuclearization of the Korean Peninsula is conducive to lasting peace, security and economic prosperity in Northeast Asia.

The guidance of the vision of the three countries cooperation in the next 10 years also suggests that in order to effectively cope with global threats and challenges, we should further strengthen the role of the United Nations and strengthen the efforts to reform the United Nations in order to enhance its authority, efficiency and effectiveness.

After the conclusion of the meeting, the leaders of the three countries also reached a consensus that they will establish a secretariat for cooperation between the three countries in South Korea next year.

The standing body will support the operation and management of the three nation consultation mechanism, such as the leaders' meeting, other ministerial conferences and the consultation of senior diplomats, and help to explore the implementation of the cooperation projects.

The head of the Secretariat will take turns from the three countries, and the cost of operation will also be shared by the three countries.

"Regardless of regional security issues or economic and trade cooperation issues, the most important significance of this summit is that the three sides of China, Japan and South Korea have expressed the attitude of wholeheartedly working together to solve the problem."

Wang Yizhou, Professor of University of International Relations, Peking University, said to the International Financial Daily reporter.

　　自贸区：不再看上去很美

During the meeting, the three countries promised to make efforts to complete the China Japan Korea Free Trade Area (i.e. more than two countries or regions) by signing a free trade agreement before 2012, cancel the tariff and non-tariff barriers of the vast majority of goods, cancel the market access restriction system and open investment of the vast majority of service sectors, and strive to complete the three countries investment agreement negotiations, and will increase trade facilitation efforts to improve the trade environment of the three countries.

At the same time, the three countries will encourage financial institutions to enter each other's markets to strengthen financial cooperation and further enhance Asian financial cooperation.

In addition, the three countries also reiterated their opposition to any form of protectionism, eliminating technical barriers and strengthening cooperation in science and technology and innovation.

Up to now, China, Japan and South Korea account for 70% of the total GDP and 18.6% of the world's total GDP, and the third largest economic alliance in the world, next only to the North American Free Trade Area and the European Union.

If the FTA is built, about 1 billion 500 million of the population will benefit from it.

However, compared with other Asian Free Trade Zones (such as ASEAN), the development of China Japan Korea Free Trade Zone has been slow.

Regarding this, Sun Lijian, vice president of the school of economics, Fudan University, pointed out to the International Financial Daily that the construction of China, Japan and Korea free trade area faces at least two major problems: first, when the trade between three countries is becoming homogenized, China's comparative advantage is in the low-end industry, while Japan and South Korea concentrate on the high-end. If establishing a free trade area, it means that China has been at an uneven level from Japan at the beginning, which is not conducive to the upgrading of China's industrial structure.

Secondly, the free trade area will bring the risk of trade substitution investment. Because trade solves other countries' employment and investment solves our country's employment, China's employment will be impacted.

"Especially when the economic situation is bad, countries are more cautious about trade unions."

Sun Lijian (blog) said.

　　无核化：三国带动区域合作

"The establishment of a free trade zone represents only a preliminary intention. The real implementation depends on the specific bilateral agreements between the two countries."

Wang Yizhou bluntly said that the situation in East Asia is complex and changeable. Compared with the construction of the free trade area, it is more important for the two sides to strengthen dialogue and consultation and ensure regional stability.

Otherwise, "good planning will also be centrifuged".

Perhaps based on the above reasons, the leaders of China, Japan and South Korea will strengthen cooperation and properly handle the "Tianan" incident against the geopolitical crisis of Korea and Korea, which has attracted much attention.

Wen Jiabao said that the sinking of the Cheonan was an unfortunate incident.

According to the merits and demerits of the matter, China will make an objective and fair judgement and decide its position.

China always advocates and is committed to maintaining peace and stability on the Korean Peninsula, and opposes and condemns any act that undermines peace and stability on the peninsula.

Wen Jiabao appealed to all parties to remain calm and restrained, to prevent escalation of events, especially to avoid conflicts and jointly safeguard the hard won peace and stability of the peninsula.

Wen Jiabao pointed out that all parties concerned should take a long-term view, actively push forward the Six Party Talks process, solve the nuclear issue on the Korean Peninsula and realize the long-term stability of the peninsula.

Summit host Korean President Lee Myung-bak agreed to continue consultations and properly handle the Cheonan incident in order to maintain peace and stability in Northeast Asia.

Japanese Prime Minister Hatoyama Yukio said he believed that strengthening cooperation between China and Japan and South Korea could not only benefit the people of three countries, but also effectively promote the process of regional cooperation in East Asia and promote peace, stability and common prosperity in the region and the world.

It is reported that the fourth China Japan ROK leaders meeting will be held in Japan next year.

"China adheres to the principle of consistency.

The follow-up development will also wait for the Council to make an investigation with international credibility. "

Wang Yizhou said.