The 10th CJK Cooperation Dialogue
Date: 09:00-17:30, Fri, October 12th, 2023
Venue: Seoul Dragon City Grand Mercure, Seoul
Mercure, Washington, D.C.

“Navigating a Sustainable and Prosperous Future for
CJK Cooperation”

Opening Session
The opening session with the heads of the CJK co-hosting organizations looks back 10 yearsof the dialogue with the TCS’s proven records of CJK cooperation and explores how to promotea robust and sustainable partnership among CJK.
Chair:
SOHN Jie-Ae (Ambassador for Cultural Cooperation, Ministry of Foreign Affairs)
Keynote remark:LEE Hee-Sup (Secretary General, Trilateral Cooperation Secretariat)
Panel:KIM Sung-Hwan (Chairman, East Asia Foundation)
CHI Fulin (President, China Institute for Reform and Development)
TOYODA Masakazu (Chairman, Japan Economic Foundation)

LEE Hee-Sup-

The Trilateral Cooperation Secretariat (TCS) stands as a lasting internationalorganization established in September 2011 in Seoul by the three Northeast
Asian nations - Korea, China, and Japan - in their pursuit of regional peace andmutual prosperity.

-

Sharing strong cultural and economic connections, trilateral cooperation’s roots
date back to the ASEAN+3 Summit in 1999. Ever since, trilateral collaboration

occurs through numerous meetings, consultative bodies, and ongoingcooperative projects, even when bilateral relations were sour.
-

Key areas like the Environment Ministers’ Meeting have fosteredconsensus and institutionalization. Expanding and institutionalizing
cooperation in domains impacting daily life, such as public health, aging
society, climate change, education, and urban regeneration, is also vital,
free from political influence.

-

3 Steps forward:1) Enhance public diplomacy to foster mutual understanding throughmultiple means such as utilizing think tanks and media for research andconsensus building.
2) Strengthen projects and exchange programs to build a robust foundation
for trilateral cooperation, especially among the younger generation.
3) Foster closer cooperation to tackle complex crises like the pandemic.

KIM Sung-Hwan-

In the last decade, trilateral dialogues primarily focused on shared concerns
like trade, environment, and aging populations, constituting a 1.5-track
discussion.

-

In November 2020, the RCEP came into effect, signed by 15 Asian countries,
including China, Japan, and Korea, to bolster trade cooperation. The 10th CJK
Dialogue will focus on RCEP matters, tackle supply chain disruptions due tothe pandemic and Ukraine conflict, and further regional cooperation. It will
also cover the shared target of carbon neutrality by 2050, highlighting the needfor joint environmental efforts among these countries.

-

Despite the recognition of the importance of such cooperation, surveys show a
decade-long decline in South Korean favorability towards China and Japan,

coupled with waning trust in political leaders. Thus, building mutual trust andgoodwill among our citizens is imperative.
-

Persistent negative perceptions among citizens hinder trilateral cooperation.
Accordingly, the three governments must prioritize public diplomacy to build
trust and goodwill. Fortunately, the younger generation's openness bodes wellfor future collaboration.

TOYODA Masakazu-

U.S.-China tensions and the Ukraine crisis have shifted the focus from free
trade to disconnection, slowing global economic growth. Nonetheless, Asia’s
prominence, with three key nations’ GDPs rivaling the U.S. and E.U.,
positions it for pivotal cooperation and development amid these challenges.

-

Over the past decade, CJK cooperation, marked by various ministerial
meetings, has been positive. Despite occasional frictions, cooperation onshared issues has brought peace and prosperity. The younger generation has
bridged gaps through cultural exchanges, fostering mutual understanding andtrust. Based on these, I would like to talk about three points.

-

Japan, China, and South Korea face a common challenge of declining birthrates and aging populations. With 2021 fertility rates of 1.30, 1.16, and 0.81
respectively—among the world’s lowest—they fall short of the 2.05 rate
needed for population maintenance. This trend threatens economic growth,fiscal stability, and security, making it crucial for these countries tocollaborate and share best practices.

-

Trilateral cooperation should prioritize tourism. While China ranked 4th,
Japan 12th, and South Korea 24th in foreign tourist visits in 2019, there’s
room for improvement. Given their rich history and unique cultures, a North
Asia tour seems promising. Tourism is a vital industry for the 21st century,
promoting economic growth, employment, mutual understanding, peace, andprosperity.

-

The third area for trilateral cooperation is digital government. South Korea
ranks 7th, Japan 10th, and China 44th in the digital government performanceindex by Waseda University. Encouraging South Korea to share its know-how
with China and Japan can foster collaborative development. A more efficient
digital government not only enhances people’s well-being but is also pivotal
for economic growth.

CHI Fulin-

As TOYODA Masakazu pointed out, there are numerous avenues for the three
countries to collaborate, such as tourism, cruises, and visa exemptions.
Trilateral cooperation dialogues hold significant value. Despite the challenges
posed by Covid-19, we’ve made substantial progress.

-

Amidst global changes, our economic ties must transcend geopolitical issues,leveraging our manufacturing prowess and services trade complementarity tospur regional growth. Market access, especially in China as the primarymarket for South Korea and Japan, is crucial for establishing new cooperative
frameworks.

-

We must persist in cooperation and progress sharing. Developing RCEP into
the world’s largest trade agreement is vital, given our 30% share of theworld’s economic volume, total trade volume, and population.

-

Strengthening trilateral cooperation under RCEP, especially in services trade,is vital. RCEP’s e-commerce rules offer an opportunity for a shared digitalmarket. Collaboration in tourism, education, culture, addressing aging
populations, and advancing healthcare are also feasible, as these nations sharecommon challenges.

-

As advocates of rules-based free trade, the three countries must champion its
promotion of regional growth and commit more deeply to opening thetrilateral market under RCEP. Although China-Japan and Japan-Korea have

initiated market opening, complete access is pending. We need to reform
origin rules and ease tariffs within RCEP to achieve this.
-Institutional reform is needed through market opening. If China joins CPTPP
and DEPA, it will try to create a marketized, legalized, and globalizedbusiness environment. Extensive discussions are required to advanceinstitutional openness and reinforce reform and opening in the future.

Q: In the view of the Trilateral Cooperation Secretariat (TCS), what areas should we
focus on to truly enhance cooperation and friendly relations among the three countries?

LEE Hee-Sup-

Current cooperation among South Korea, China, and Japan faces risingtensions due to historical and territorial disputes and international geopolitics,
leading to public skepticism. Although progress is slow during such times,
history shows that it is possible. To move forward, seminars involving thesenations should address these issues practically. Focusing on diplomacy,
security, nuclear concerns, and major issues is challenging, but necessary.

-

Ultimately, the growth of people-to-people exchanges and inter-nationcooperation is key. Enduring connections among the citizens of the three
countries should remain steadfast, even if official exchanges falter. With
ongoing cooperation and institutionalization, I am confident that high-levelsummits will persist over the decades, despite challenges.

-

Some view European integration and Northeast Asia’s situation as different.
European integration was also seen as impossible in the past. The Trilateral
Cooperation Secretariat (TCS) believes that trust issues among the three
governments limit its authority and independent operation. Over time, it would
be beneficial to expand the Secretariat’s functions and roles to enhancecooperation and the effectiveness of consultative bodies.

TOYODA Masakazu-

Institutionalization is undoubtedly important, but it’s also vital to assess how
well the public understands and resonates with it. Demonstrating a cooperative
attitude to work on issues, such as the new integrated relationship centeredaround RCEP and the intention to address the increasingly serious climatechange issues, can aid in the process of institutionalization.

-

In addition, the most pressing common concerns are low birth rates and an
aging population. With a birth rate of around 1.3 in the case of Japan, it’s
projected that 50 years from now, the population will decrease by 50 million
from the level of 120 million to 70 million.

-

The fact that South Korea, China, and Japan are collectively ranked at thelowest 15 countries among 210 countries indicates the need for us tocollaborate and make progress in this field.

CHI Fulin-

The Reform and Development Research Institute has established an RCEP
think tank federation, focusing on the RCEP development index andorganizing symposiums. Looking 30 to 40 years ahead, the landscape will
differ significantly from the past 30 years. By 2030, ASEAN aims to surpass
Japan and become one of the world’s top four economies, reshaping the global
and regional economic dynamics. Significant demographic changes are
expected by 2030 or 2040. RCEP, centered on ASEAN and driven by Korea,
China, and Japan, will play a substantial role in regional development andglobal economic restructuring.

-

Enhancing the quality of RCEP is a current challenge, and its expansion isnecessary. Within the RCEP framework, Korea-China, Korea-Japan, andChina-Japan have signed free trade agreements (FTAs), marking a significant

development. If FTAs are established within the RCEP framework, it will
have a substantial impact. Supporting Hong Kong’s RCEP accession and
China’s CPTPP entry is vital. While China’s reform and opening may differ, it
could lead to reforms and more cooperation opportunities with South Korea
and Japan through CPTPP membership. In particular, healthcare and services
offer potential areas for South Korea and Japan to cooperate, and governmentlevel support is crucial.
-

The birth rate in China may increase with mandatory education and service
aspects. Strengthening cultural exchanges is essential, as cultural ties havesomewhat deteriorated between South Korea, China, and Japan. All of theserequire interpersonal exchanges, making them crucial. Collaboration across allservice industries is necessary. A long-term perspective is essential, and youth
dialogue is of paramount importance.

-

Shall we create a South Korea-China-Japan youth dialogue? It should be held
within the framework of RCEP.

Q: Cooperation between nations and governments can be challenging to advance
together. Overcoming these difficulties is a perennial issue. Are there any strategies tonavigate these challenges effectively?

KIM Sung Hwan-

This challenge necessitates government intervention. When first established,
TCS focused on private and cultural exchanges free from political influences
but now faces political influence. Scheduling a trilateral summit is crucial to
improve perceptions. Simplifying visa requirements between South Korea andChina, like the example of Jeju Island, is beneficial. Japan is close to a visa
exemption agreement with China, and the same should occur between South
Korea and China.

2. Feature Session: ‘Sustainable Trilateral Cooperation Model for the Next
Generation’The feature session proposes a sustainable model of trilateral exchanges and cooperation foryoung generations and practical approaches that will ensure a robust and reliable partnershipamong CJK.
Chair: KIM Taehwan (Professor, Korea National Diplomatic Academy)
Panel:GUO Yanjun (Director, Institute of Asian Studies, China Foreign Affairs University)
AIZAWA Nobuhiro (Associate Professor, Department of Cultural Studies, Kyushu University)
CHOI Eunmi (Research Fellow, The Asan Institute for Policy Studies)

KIM Taehwan●-

Korea-China-Japan Trilateral Nexus

The trilateral and bilateral interactions that make up the Korea, China, and Japan
relationship seem to have been stuck between an upper and lower limit line, constantly
alternating within that restricted space throughout history.

-

Such restricted dynamic between the three states is determined by three key factors, ora nexus, composed of (1) geopolitics of East Asia, (2) collective memory of history,and (3) nationalism. This nexus, which has both a regional and international dimension,
fuels a vicious cycle within the trilateral relationship.
●-

The Return of Great Power Competition

The U.S.-China competition has heralded the return of great power competition in
today’s international political environment.

-

Today’s great power competition is not only restricted to material domains, such as
military, trade, advanced technology, cyber, and space, but also the immaterial domain,
namely ideology and values.

Q: How does the age of great power competition affect relations between China, Korea,
and Japan, especially for the young generation of these three countries?

GUO Yanjun●-

10-Year Anniversary of Korea-China-Japan Cooperation Dialogue

The Korea-China-Japan dialogue, which started off as a non-governmental exchange
platform, has overcome countless difficulties throughout the 10 years since its
inception.

-

The Korea-China-Japan youth exchange is a very important issue, as emphasized by
the hosting Korean side, and has been discussed thoroughly during the recent KoreaChina-Japan SOM, resulting in clear goals related to fostering trilateral youth
interaction.

-

In answering the chair’s question, great power competition not only holds enormous
implications on the trilateral relationship, but also on how the youth of the three
countries perceive and interact with each other.
●

The Nature of Great Power Competition-

Great power competition consists of two key words:-

The term “great power” primarily had a material association in the past, but its 21st
century meaning also incorporates institutional power, which has increased inimportance. Therefore, today’s great power is different from that of the past.

-“Competition” can be virtuous or vicious, with the former being essential. The U.S.
labeling China as a rival and imposing sanctions creates an unfair, non-free-market
environment. China, preferring cooperation, is compelled into a harmful competitive
structure. What’s needed is a fair and inclusive benign competition.

-

The term “new cold war” is used frequently but it doesn’t fit today’s definition of “great
power.” China disagrees with this concept because the U.S.-China competition is not
a replica of the U.S.-USSR cold war. China values cultural diversity and mutual respectover confrontation. Applying an old framework to this new context is flawed.
AIZAWA Nobuhiro●-

Bringing the Cities Politics into Korea-China-Japan relations

Trilateral relations resemble the stable deep ocean currents, despite having been
turbulent as the waves at the surface. Beneath the surface of nationalism, there aresocial issues we all face. This is why shifting trilateral relations from Seoul-BeijingTokyo perspective to inter-city level (like Busan-Dalian-Fukuoka) can promote
constructive cooperation since this viewpoint can neutralize the perspective of political
ideology and national interest and shift the focus on deeper and more pragmatic
governance issues such as urban development and welfare.

CHOI Eunmi●-

Assessing Korea-China-Japan cooperation

Korea-China-Japan cooperation is often underestimated due to political and diplomaticchallenges. However, they have made significant institutional progress, notably withthe establishment of the Trilateral Cooperation Secretariat and regular intergovernmental meetings.

-

Trilateral summits between Korea, China, and Japan are challenging due to politicaland diplomatic tensions. This hinders effective cooperation, and overcoming bilateral
conflicts within the three-party collaboration is rare.

-

The key obstacle to state-level trilateral cooperation is the lack of trust. Building trust
should be the primary goal, as surface-level cooperation is insufficient without it. The
three states need to reduce differences and share common values to enhance practicalcooperation.

KIM Taehwan●-

Korea-China-Japan public opinion polls

The public opinion polls from the three countries all reveal considerably low trustlevels, especially among the young generation.

Q2: What can we do to lessen this phenomenon of mistrust among the youth?

CHOI Eunmi●-

Solution to fixing mistrust between the publics of Korea-China-JapanThe key to increasing public favorability of a country depends on that country’s image,dependent on 3 factors – (1) personal experience, (2) image portrayed by the news
media, and (3) state policies.

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A particularly difficult problem regarding shaping public opinion toward a country is
the history issue (e.g., Korea-Japan relations). Raising awareness of historical issues isvital, particularly through offline and online programs that foster young people’s
discussions and interactions.

AIZAWA Nobuhiro●-

How nationalism plays out in increasing favorability between the publics

Sense of Nationalism varies across generations. Young people is showing signs thatthey identify themselves that shares values to pursue challenges over societal common
issues like unemployment, economic prospects, and climate change, more than topursue searching national identities and pride.

GUO Yanjun●-

The Public Opinion favorability between Korea, China, and JapanFirstly, the respective governments and media of the three countries are responsible for
their public’s attitude toward each other. Governments must differentiate between thecurrent and historical reality, and balance between the two to avoid getting the public
swept up emotionally.
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Media in Korea, China, and Japan must provide responsible news coverage, as today’s
youth are highly influenced by the constant flow of information.

-

To improve trilateral youth interaction, we must increase both online and offline
opportunities, which result in better mutual understanding.

KIM Taehwan●-

Digital Identity for Young Generation

The young generation’s digital lifestyle and identity, focused on issues, can overcome
the self-centered, nation-state-based identity, transforming how they connect andinteract.

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Through connection in the digital space, the young generation can collectively work
toward tackling today’s major issues, such as climate change, which often transcendborders.

Q3: How can the older generation facilitate cooperation among the young, digitallyoriented generation?

AIZAWA Nobuhiro-

Compared to the older generation, the current MZ generation are more confident andvocal about their preferences, pioneering abilities, and possess a value-driven andindependent mindset regarding how to live life, career choices, and societal issues. The
older generation should trust those styles and choices and do not get in the way forthem to flourish.

GUO Yanjun-

In the digital age, we need to address two key issues affecting the younger generation:(1) Overwhelming internet information can hinder critical thinking, and (2) Excessive

reliance on technology reduces offline interactions, contributing to mental healthproblems like social anxiety.
CHOI Eunmi-

Today’s globalized world demands an issue-based approach to tackle cross-borderproblems. Young people, with their open-mindedness and information processing
skills, are better suited for this compared to older generations stuck in traditional
nation-state frameworks.

-

Young people must be encouraged and given opportunities to meet both offline andonline and collaborate on various projects to foster extensive communication and form
mutual values.

-

Finally, the young generation must develop media literacy, which is the ability tocorrectly absorb and critically assess the influx of information that they are exposed to
on a daily basis.

3. Special Remark: ‘Reflection of the Past 10 years: CJK Dialogue and the
Way Forward’
Presenter:
AHN Choong-Yong (Distinguished Professor, Chung-Ang University)
AHN Choong-Yong● Challenges ahead for CJK-

Minimizing hyper-uncertainty and geopolitical problems caused by US-China
competition.

-

Maximizing bottom-up and local-to-local cooperation by leveraging theadvantages of geographical proximity.

-

Managing supply chains that are inevitably intertwined, despite East Asian
historical issues.

● East Asian Economic Community-

The concept of an ‘East Asian identity’ emerged in the wake of the 1998 Asian
Financial crisis, and the Chiangmai Initiative was launched as an outgrowth of
this.

-

The Asian Development Bank predicts that Asia will become the center of theworld economy in the 21st Century, driven by the Four Dragons of Asia,
ASEAN, the rise of China, and the rapid growth of India.

● Decline of multilateralism and East Asian countries move towards minilateralism and regionalism-

There are agreements such as CPTPP, RCEP, and AEC in the trade aspect, and
QUAD and Shanghai Cooperation Organization in the security aspect.

-

Great powers are implementing protectionist policies, threatening smaller
countries. This can be seen as facing a Kindleberger trap.

-

In this context, the activation of RCEP is positive news. It brings the three
countries into a formalized free trade regime. A secretariat should be set up as
soon as possible to continue negotiations on the digital sector.

-

Meanwhile, the IPEF excludes China. We believe that the IPEF should be
open to all countries based on the principle of openness. When the South
Korean government announced the country’s IPEF strategy, it added“prosperity” to the existing IPEF concept, which implies that Korean IPEF is avery inclusive policy.

● CPTPP-The majority of CPTPP are in both blocs simultaneously.

-

Integrating the two blocs is key to solving East Asian problems. A China thathas completed internal reform and liberalization will be the key to integrating
the two blocs.

-

The weaponization of strategic materials is undesirable. While RCEP should
be developed under the principle of separating politics and economics,
trilateral tourism is also important to stimulate the economy and build mutual
trust.

4. Main session 1 ‘Evaluating the Implementation of the RCEP and CJK
Cooperation for Further Improving It’
Main session 1 aims to review the achievements of the RCEP year 1 and find rooms for
improvements, making it possible to develop it further into a trade regime that can better
serve CJK and their region.
Chair: AHN Choong-yong (Distinguished Professor, Chung-Ang University)
Panel:ZHANG Yunling (Professor and Academician, Chinese Academy of Social Sciences (CASS))WATANABE Mariko (Professor, Department of Management, Faculty of Economics,
Gakushuin University)
KWAK Soojong (Director, Lien Economic Research Institute)
Discussant:LI Kai (Vice President, China Academy of Northeast Revitalization)
FUKAGAWA Yukiko (Professor, School of Political Science and Economics, Waseda
University)

AHN Choong-yong-

RCEP has strengths such as job creation and greater supply chain flexibility,
but it has limitations in terms of narrower openness compared to CPTPP as
well. Discuss how the integration of the two blocs can be brought closer to thelevel of the CPTPP.

ZHANG Yunling● The concept of RCEP-The Regional Comprehensive Economic Partnership (RCEP) is a criticalframework in international trade and regionalism, enhancing market accessand expanding the production value chain.

-

Unlike traditional Free Trade Agreements (FTAs) that prioritize tariffelimination and non-restriction, with an inclination towards less openness, the‘Comprehensive Economic Partnership’ (CEP) approach adopted by RCEP
acknowledges the challenge of eliminating all restrictions. Instead, it focuses
on establishing rules to foster open market access and promote economic
cooperation.
● Key Features of RCEP-

RCEP is significant because it integrates bilateral and multilateral agreements
such as ASEAN+3. RCEP is also valuable because it is a ‘living’ regional
agreement and includes new areas such as digital, biological, and economic
areas.

-

While many people are focused on how much trade will increase after RCEP
is finalized, this is not the ultimate goal of RCEP. The true goal of RCEP is to
reduce economic transaction costs and increase economic interdependence,such as facilitating trade and investment.

● Challenges we face with RCEP-

Reorganization of the East Asian economic structure: Previously, there was athree-tiered structure in which China processed goods, which were then linked
by East Asian countries and sold to the US market. However, unlike before,
China has become the center of the consumer market. Therefore, the role of
RCEP in driving the growth of the East Asian region itself is crucial.

-

Great power competition and its impact: There is an emerging tendency tocontrol trade or investment, which is referred to by terms such as ‘de-risking’and ‘resilience supply chain’. However, RCEP requires the unimpeded
movement of elements internally. Therefore, curbing government intervention
in this area is a challenge for RCEP.

● Comparisons between CPTPP and RCEP-

There are proposals to merge the two agreements, but I think it is not feasible
as the two agreements have different values. CPTPP excludes China, while
RCEP includes China and is governed by consultations between the parties.

● Recommendations for enhancing effectiveness of RCEP-Institutional foundation: An interdisciplinary approach should be used toestablish an institutional framework for RCEP, including setting up an office,conducting ministerial meetings, and forming expert committees.

-

Reinforcement: Assessments related to RCEP should carry legal weight sogovernments can use them as benchmarks for adjustments.

-

Trilateral cooperation: Given the fragmentation of the world, focusing on
cooperation through the framework of RCEP is vital for East Asian integration
since a trilateral Free Trade Agreement (FTA) seems unlikely in the near
future.

WATANABE Mariko-

In the context of growing geopolitical tensions, it's crucial to identify areas forthe trilateral cooperation to strengthen the implementation of trade
agreements. Key considerations include:

1) Economic Coercion:-

The WTO set the initial trade and tariff rules aimed at reducing barriers andavoiding politically motivated unilateral trade actions.

-

The RCEP seeks to address such unilateral actions. A case in point is China's
ban on Japanese seafood following the Fukushima incident, where future
RCEP rules would require proof from the exporting country.

2) Security Exceptions:-

On the security exception clause of trade rules, RCEP and CPTPP has a big
difference. The former provided it is left to the member’s own decision but thelatter requires that members must justify using this clause. This would be asignificant challenge for China. The three countries dialogue might be a good
arena of discussion on the compromise of this point as long as China isinterested in the entry of CPTPP.

3) Governance of AI and Data:-

With Artificial Intelligence (AI) being vital in military technology, its
governance is crucial, especially given the US-China competition. Discussions
on the safe and rational use of AI and data governance should start promptly."

AHN Choong-yong-

I believe that the theory of using security as a pretext to suppress trade, known
as the ‘Security Trade Nexus,’ is a serious issue. Middle-power countries havethe task of overcoming attempts to unilaterally control middle-power countries
under the pretext of security through alliances.

KWAK Soo-Jong● Before discussing RCEP and CPTPP, it is necessary to consider the reasons forand the actors and subjects at the center of the debates and dialogues that
occurred.
-FTA issues like RCEP or CPTPP are not the result of structural changes that
occurred in the East but are concepts created by American-style industrial
capitalism.

-

Even in the expression “free trade” mentioned by another speaker, theestablishment of the fundamental concept of ‘freedom’ is necessary because
the concepts of ‘freedom’ in China, France, and the United States differ.

-

Discussions related to FTAs without the establishment of these fundamental
concepts may seem like a golden path but have logical flaws that everyone
could stumble upon due to the deception of the previous generation.

-

From a microeconomic perspective, the issue of monopolistic systems is amacroeconomic issue related to RCEP and FTAs and can also be understoodas a problem of fragmentation and integration.

● Since Western countries (UK, Germany, USA) dominated the discussions on FTA
issues from the logic of fragmentation and integration, East Asia will continue tobe dragged into existing dominant discussions on RCEP, CPTPP, and FTAs if it
does not develop a new logic of power centered around China.
-

Through the establishment of institutions within RCEP, a logic related toscience, technology, and human philosophy should be developed, and a theoryof East Asian economics should be constructed.

● Considering the ‘Circle of Life’ in the laws of the universe as proposed byscience, it is time for China, with the support of Japan and Korea, to move awayfrom the dominant discussions centered around the West and organize existing
discussions.
-Regarding the significance and future role of RCEP, three countries have a
responsibility to provide an indicator for middle-income and low-income
countries ultimately, and RCEP should be reconsidered with this responsibility
in mind.

LI Kai● I agree with the notion that China, Japan, and South Korea play significant rolesin the development of the RCEP.
-

Considering these three countries' trade volume and GDP sizes, they can beseen as the driving force behind RCEP.

-

Therefore, if cooperation among these three nations accompanies RCEP, thepossibilities for collaboration through RCEP are vast.

● In pursuit of the prosperity of RCEP and cooperation among China, Japan, andSouth Korea, I propose that the three countries use dialogues like the current one
to build a foundation of understanding and trust.
-Within RCEP, the three nations can support the development and prosperity ofdeveloping countries through trilateral cooperation.

-

Despite differences in civilization, culture, political systems, and regulations,these three Northeast Asian countries share common ground and can build
empathy.

● The three countries share a macro-level similarity in their backgrounds, and theyshould seek conflict resolution through mutual understanding, negotiation, andcoordination.
-

There are numerous areas for cooperation among the three countries, including
substantial cooperation that goes beyond politics, as well as cooperation at thenational strategic level.

-

At a practical cooperation level, issues such as aging populations andeducation, as well as China’s land reform and urbanization, should be
addressed without political interference.

-

At the national strategic level, there are opportunities for South Korea toparticipate in China’s Belt and Road Initiative and Northeast Asiandevelopment plans. For instance, in the case of the Belt and Road Initiative,
South Korea’s involvement could provide a convenient route connecting all
the way to Europe, benefiting its citizens.

● In conclusion, the cooperation among China, Japan, and South Korea within theframework of RCEP holds significant potential for the prosperity of the region.
-

Beyond economic cooperation, addressing practical issues and aligningnational strategies can further enhance the synergy of this trilateralrelationship and contribute to the development and stability of the broader
Northeast Asian region.

FUKAGAWA Yukiko● When discussing the background of the lackluster cooperation among China,
Japan, and South Korea, it is often attributed to the discourse surrounding EastWest rivalry and nationalist conflicts.
-

However, the fundamental differences among these three nations play a crucialrole in this dynamic.

● While it is evident that the three countries share cultural ties, categorizing thempurely along ethnic lines has its limitations.
-Japan finds it challenging to align with discussions centered on “ethnicity.”
China identifies itself as the Han ethnicity, and South Korea as the Korean
ethnicity.

-

However, Japan lacks a clear concept of “Japanese ethnicity” at present,
despite the presence of the Yamato spirit.

● Some may undervalue the level of cooperation within RCEP, but from Japan’s
perspective, active engagement in RCEP is essential.
-

Japan anticipates that the benefits derived from RCEP, given the participationof many developing countries, may outweigh those from the CPTPP.

To enhance RCEP’s development, the following approaches are suggested:● Expanded Market Access-

China, Japan, and South Korea should broaden the scope of liberalization toapproach the level of cooperation seen in the CPTPP.

-

RCEP offers more opportunities for liberalization in various consumer goods
sectors. Particularly, the consumer goods sector includes participation fromnumerous small and medium-sized enterprises (SMEs), which can contributeto price stability and complement the low self-sufficiency rates of China,
Japan, and South Korea in this sector.

-

As the economies of these three countries are no longer dominated by exportsof consumer goods, all three should take responsibility for increasing
consumer goods market access.

● Synergy in Market Access, Services, Investment, and Natural Person Movement-

RCEP should be designed to maximize synergy among these elements, beyond
a pragmatic level of cooperation.

-

A comprehensive approach, such as “WTO+,” can allow for strategic synergy
among neighboring countries. For example, after China facilitated crossborder e-commerce and inbound tourism, Japan’s sake exports to China
surged, and China’s cold chain technology advanced.

-

Enhancing market access can also benefit China’s diplomacy with the UnitedStates.

● Beyond Free Trade-

To advance RCEP, addressing digital regulations is essential.

-

China has recently applied for membership in the Digital Economy
Partnership Agreement (DEPA), which South Korea joined.

-

However, there are differences in digital regulations between South Korea andJapan. If China explores compromises within the DEPA agreement or if China,
Japan, and South Korea align their digital regulations, it could be highly
significant.

-Moreover, discussions on topics such as Bilateral Investment Treaties (BITs),
enforcement of intellectual property rights (IPR), and principles of
responsibility for sanitary and phytosanitary measures (SPS) and other borderprocedures can provide a practical approach to RCEP.

● In conclusion, while the history and nuances of China, Japan, and South Korea’s
relations pose challenges, RCEP presents an opportunity for enhanced regional
cooperation.
-

By implementing strategies to expand market access, maximize synergy
among various elements, and address digital regulations, the three countries
can unlock the full potential of RCEP and contribute to regional economic
growth and stability.

AHN Choong-yong-

I agree with Prof. Fukagawa’s statement that RCEP should expand its scope toapproach the level of cooperation seen in the CPTPP. In that context, could wenaturally see a background where RCEP and CPTPP can be integrated? I am
asking this question because you have expressed some reservations about
CPTPP.

ZHANG Yunling● I do not hold a resistant attitude toward the CPTPP, but I am not overly
optimistic about it.
-

While China has officially applied for CPTPP membership, I am not optimistic
about the approval of our membership.

-

The reason lies in the fact that the precursor to the CPTPP, the TPP, included
intentions to exclude China by the United States.

● Currently, China is not likely to accept a “static” CPTPP as it stands.
-

China hopes to negotiate its entry into the CPTPP rather than accepting all theprovisions outright, as the conditions and structures differ from other member
countries.

-

China anticipates that preparations will be needed to navigate the negotiation
process.

● Furthermore, any agreement should be able to accommodate and adapt to newmember countries according to the situation.

-

China has no other choice but to expand openness both domestically andinternationally.

-

Regarding the digital economy sector mentioned by Prof. Fukagawa, China isalso making many adjustments.

-

China no longer insists on foreign digital centers within its borders, and thewillingness to join DEPA is a result of negotiations. This approach could also
apply to RCEP.

AHN Choong-yong-

At CIRD, Dr. Chi Fulin is promoting a high-level opening based on the
Hainan Free Trade Port. I personally understand this as a mechanism toaccelerate China’s internal reforms in order to join the CPTPP, and I hope that
this will be the case. Ultimately, if the CPTPP becomes a massive allianceinvolving both the United States and China, it could play the role ofconnecting regionalism to multilateralism, often referred to as a “building
block.” Regarding the unilateral policies occasionally pursued by the UnitedStates and China, where they sometimes ignore each other’s opinions,countries like South Korea, Japan, and Australia advocate for establishing arule-based order and oppose the unilateralism of a G2.

-

What are your thoughts on this? Do you think that middle-power countries
need to form a kind of united front to collectively voice their opinions against
unilateralism?

WATANABE Mariko● Importance of Middle-Power Countries Joining Forces-

It is indeed a difficult situation for Korean and Japanese companies in the faceof sanctions imposed by both the United States and China.

-

We need to find solutions to deal with this battle without rules and principles,
which is causing a lot of pain.

-

When it comes to dealing with a superpower like the United States, middlepower countries have no choice but to join forces.

● US Trade Policies-

While it is understandable for the U.S. to take strong sanctions in cases where
there is a military threat from China, some of the sanctions or elimination ofChinese products in some regulations is excessive.

-

It is important for middle-power countries to assess which side is being more
realistic and reasonable from a third-party perspective and to voice theiropinions accordingly.

AHN Choong-yong-

I'm glad to hear that my thoughts align with Prof. Watanabe’s. Prof. Kwak
Soo-jong mentioned that he believes we should pursue an Eastern approachwithin the framework of the liberal order in world trade, which he sees as
Western-made scaffolding. However, the idea of free trade is not an eternal
truth. In my opinion, Korea should actively pursue and advocate for a free
trade order based on the principles of liberalism.

KWAK Soo-jong● Understanding Trade-

Trade essentially means merchants engaging in transactions. If we talk about itin modern terms, it refers to businesses. Human beings have an innate desire
to be happier and live longer, so the key lies in how the government protects
and manages this aspect.

-

From a security perspective, trade is an economic activity. In the current real
economy, what is essentially hidden is capital. Capital, more than physicaltransactions in the real economy, has the ability to create more profit andcapital by developing new systems and generating new forms of added value.

-

This is why it poses issues within the framework of capitalism.

-

If we can push forward in a way that represents the best interests of South
Korea, Japan, China, and Southeast Asian countries, it will be sufficient.

● The Need to Establish Hegemony-

We need to consider who will establish hegemony. Currently, hegemony isbeing established through capital, and in the future, it will be establishedthrough time (NFT, CBDC).

-

RCEP or CPTPP should be brought under the leadership of South Korean,Chinese, and Japanese companies. They need to strive harder to acquireleadership.

AHN Choong-yong-It’s also important to focus on the issue of regional development in Northeast
Asia. When there are disputes between the governments of South Korea,
China, and Japan, isn’t it necessary to have efforts that allow local andregional negotiation, bypassing government conflicts?

LI Kai● A Mechanism for Cooperation Between South Korea and China is Needed-

The northeastern part of South Korea and China is an area where the interestsof both countries overlap. It’s a place where innovative mechanisms can beestablished.

-

UNDP has had various cooperation projects, and one of them was the Tumen
River development plan. It’s been more than 30 years since the plan wasannounced, but there hasn’t been much progress.

-

This shows that while cooperation on a larger scale is good, cooperation
mechanisms between South Korea and China are also very important.

AHN Choong-yong-

Now, let’s discuss Japan’s role in the future. There’s a need for Japan tomediate and integrate relations between the United States and China. How canthis be possible?

FUKAGAWA Yukiko● Japan’s Pressure Under RCEP-

Unfortunately, unless Japan feels pressured to do so, it’s unlikely to have theability to play such a role. Even as a middle power, Japan’s trade dependency
is only about one-third of South Korea’s.

-

Japan maintains its economy stably in a non-growing domestic market.

-

Therefore, unless there is significant pressure, it’s unlikely that Japan will takeon such a mediation role, and it may not be able to do so.

● China Cannot Take the Leadership in the World Market Away from the UnitedStates-When it comes to global markets, regulations need to follow global standards,
but the standards can change based on market power.

-

The reason the United States designed and leads the WTO on its own isbecause the entire world buys goods from the United States.

-

In the case of China, there are doubts about its ability to catch up with theUnited States in terms of per capita income and the pace of aging. Compared
to middle-income countries, China does have a large market but may not havea significant advantage in the near future.

-

China is discussing joining CPTPP, but it appears that the cooperation within
CPTPP is driven by countries like the UK, Japan, Canada, and Australia, as
they come together through CPTPP due to the UK’s exit from the EU and aim
to cooperate.

5. Main session 2 ‘Achieving Carbon Neutrality and CJK Cooperation
Focusing on CCUS’
Main session 2 tackles one of the most pressing issues for the earth, looking for ways to go
carbon neutral including innovative green technologies such as CCUS and possible
collaborations and collective actions among CJK.
Chair:KIM Sang-Hyup (Chairman, Presidential Commission on Carbon Neutrality and Green
Growth)Panel:LI Chun (Director and Chief Researcher, CIRD-GRANDALL Center of FTP Law Studies)
KOBAYASHI Yoshikazu (Executive Analyst, New Energy System Group, Clean Energy Unit,
The Institute of Energy Economics, Japan)
KWON Yi-kyun (Director General, Korea CCUS Association)
Discussant:KUANG Xianming (Vice President, China Institute for Reform and Development (CIRD))
SATO Hiroki (Senior Managing Executive Officer/Division CEO of Global Business, Chubu
Electric Power Co.)

KIM Sang-Hyup● The Role of CCUS in Achieving Carbon Neutrality-

Tripartite goal: Collaboration to achieve carbon neutrality-

Strategic significance of CCUS: Emphasizing the importance of achievingcarbon neutrality goals-

Carbon emissions by South Korea, China, and Japan: Accounting for
approximately 40% of global greenhouse gas emissions-

Vital role of CCUS: A key technology for realizing carbon neutrality-

Global commitment: Agreement among South Korea, China, and Japan forcollaboration in achieving carbon neutrality

KWON Yi-Kyun● Technologies for Carbon Neutrality-

Carbon capture, utilization, and storage (CCUS) technologies are individual
technologies that have already reached commercialization.

-

The international community strives to combine and expand thesetechnologies to achieve greenhouse gas reduction and carbon neutrality.

-

Over the past decade, CCUS technology has faced criticism due to issues of
acceptability and safety in the storage process, but with improvements intechnology capabilities worldwide, these issues have been overcome, and trust
has been gained from civil society and local communities.

-

South Korea, in an international context, aims to achieve a reduction of morethan 10 million tons of greenhouse gases by 2030 and play a significant role inachieving carbon neutrality by 2050.

-

However, international energy organizations evaluate the global contributionof CCUS on average to be between 15% and 20%.

-

South Korea is recognized as a country with limited storage capacity due togeological constraints.

-

The international community expects South Korea to make more challenging
and innovative efforts in the field of CCUS and expand projects using
overseas storage or sub-seabed storage to meet these challenges.

● East Asia CCUS Network-

The international community is deliberating on issues related to CCS businessmodels known as “Transboundary CCS” or “Cross-border CCS” and ismaking efforts to address international legal issues.

-

It is believed that if these efforts are pursued simultaneously, South Korea’s
CCUS can make a substantial contribution to greenhouse gas reduction.

-

South Korea, China, and Japan possess world-class capabilities in terms ofscientific and technological expertise. Emphasizing the need for acollaborative platform where these three countries can lead technologicalinnovation related to “CDR (Carbon Dioxide Removal) NET (Negative
Emissions Technology)” through technology cooperation and contribute to its
development.

-

Drawing inspiration from the Japan-led JCR mechanism and the CCUS in the
Asia-Pacific, it's vital to establish an East Asian CCUS network, focusing on
high-emission countries like South Korea, China, and Japan. This
collaborative approach could lead to internal credit exchanges, culminating ina broader free carbon community that ultimately includes the United States.

KOBAYASHI Yoshikazu● Fossil Fuels and Carbon Neutrality Mediator: CCS-

Energy strategy is a crucial element of de-carbonization.

-

Consideration is given to energy conservation followed by the introduction ofrenewable energy and nuclear power, with hydrogen and ammonia also being
considered. However, there are challenges in some sectors where emissions
reduction is difficult. For instance, in industries such as steelmaking, cement
production, high-temperature processes for aluminum, chemical production,and petroleum refining, replacing fossil fuels with electricity may bechallenging, and reliance on fossil fuels may be necessary.

-

The use of renewable energy is one way to achieve carbon neutrality, butcurrently, 70% of final energy consumption is still derived from fossil fuels,
making complete replacement a daunting task.

-

In such a situation, Carbon Capture and Storage (CCS) plays a role inharmonizing fossil fuels and de-carbonization. CCS is a technology that
captures and stores or converts the carbon dioxide (CO2) emitted when using
fossil fuels, providing a means to simultaneously pursue fossil fuel use and decarbonization.

● Efforts Towards Achieving Carbon Neutrality Goals-

Japan has conducted a pilot test to capture and store 100,000 tons of carbon
dioxide in Hokkaido, Japan. The Japanese government set a Therefore, amethod to capture and store 120-140 million tons per year by 2050 isnecessary.

-Both South Korea and Japan have limited domestic storage space,necessitating the use of overseas storage facilities. This presents challenges
related to international cooperation and treaties.

-

Furthermore, when capturing CO2 in Japan or South Korea and transporting it
overseas for sequestration, it’s crucial to accurately measure and record thequantity and processes involved. This is essential for issues of internationaltransparency and calculation accuracy.

LI Chun● The Role of National Emissions Trading Scheme (ETS)-

China has made global commitments to achieve carbon neutrality, which areseen as reflecting the efforts of the entire Chinese population.

-

China has established a number of legislation and regulations domestically onenergy-saving, emissions reduction, CO2 emission trading and other relevant
contents.

-

China’s carbon neutrality efforts are carried out through nine carbon trading
centers, which are responsible for carbon emission management, supervision,and disclosing trading volumes.

-

The legal framework for carbon trading still faces many challenges, and it is
crucial: (i) to establish a transparent and comprehensive carbon trading
disclosure information system; (ii) to establish an investor protection system;(iii) to introduce strong sanctions for violations of laws; (iv) to establish
mechanisms for resolving carbon trading disputes.

KUANG Xianming● China’s Energy Transition-

In the process of achieving carbon peaks and carbon neutrality, three key
challenges must be addressed: technical issues, market issues, andinternational cooperation issues.

-

The three countries of South Korea, China, and Japan account for 20% of
global GDP and hold 70% of Asia’s GDP.

-

China’s annual carbon emissions are approximately 10.9 billion tons, Japan’sis 1 billion tons, and South Korea's is 570 million tons. This confirms thatthese three countries have set carbon neutrality as a common goal.

-

China considers energy transition crucial for achieving carbon peaks andcarbon neutrality and needs to transform its energy structure, which currently
relies heavily on coal.

-

There are several opportunities for cooperation among South Korea, Japan,
and China regarding China’s energy transition.

-

China’s strength lies in its market, and it should leverage opportunities inenergy structure transformation.

-

Utilizing RCEP (Regional Comprehensive Economic Partnership), a newenergy supply network and industrial chain can be established in East Asia,
enabling cooperation among the three countries.

-

The key is for these three countries to leverage the Chinese market and jointly
promote energy transition through CCUS.

SATO Hiroki● Trilateral Cooperation and De-carbonization-

Korea’s renewable energy strategy aligns with broader global goals such asde-carbonization, which is a pivotal area for international cooperation.

-

Consequently, a proposal has been made to establish an East Asian market forhydrogen ammonia to facilitate trade and enhance energy security.

-

The importance of US-China cooperation is underscored in addressing global
environmental issues, including the field of Carbon Capture, Utilization, andStorage (CCUS), given the system’s capacity for CO2 storage.

-

Discussions about the challenges of methane usage, a source of CO2, suggest
an inevitable transition to alternative technologies.

KIM Sang-hyup● The Practical Steps for CCUS-

While proposals for countries to jointly utilize CO2 carriers have been put
forward, concerns have also been raised regarding China’s approach andpolicies on CO2 storage.

KUANG Xianming● CCUS in Energy Transition
The transition to renewable energy emphasizes the role of CCUS, highlighting-

its commercial potential and importance in the energy market.
Emphasis is placed on developing standards, frameworks, and infrastructure,-signifying a vital move towards ensuring the commercial success of CCUS.
With China's anticipated carbon storage capacity by 2060, the importance of-collaborative efforts in this domain becomes paramount.

KWON Yi-kyun● Diverse Approaches to CCUS-

The movement of traditional sectors into capture technologies marks asignificant evolution in the industry landscape.

-

Explorations into the merger of various business sectors with CCUS reveal
potential geopolitical dynamics, particularly shared CO2 storage prospects
between Korea and Japan.

LI Chun● China’s Carbon Neutrality Legislation-

China remains open to all strategies leading to carbon neutrality, including
drafting laws that consider domestic demands and technical standards.

KOBAYASHI Yoshikazu● Potential of CCUS in Regions and Collaboration-

The movement of traditional sectors into capture technologies marks asignificant evolution in the industry landscape.

-

Explorations into the merger of various business sectors with CCUS reveal
potential regional cooperation, particularly shared CO2 storage prospects
between Korea and Japan.

6. Joint Statement of the 10th CJK Cooperation Dialogue
We, the East Asia Foundation (EAF) of South Korea, the Japan Economic Foundation(JEF), and the China Institute for Reform and Development (CIRD), co-hosted the 10th
Trilateral Cooperation Dialogue. The meeting was focused on discussing trilateral cooperation
and relationship development in depth. Through this meeting, the three organizations shared
three perceptions.
First, the three partners emphasized the need for continued cooperation for peace andprosperity in Northeast Asia. We reaffirmed the importance of mutual cooperation given theircultural connections and significance in the global economy. We also emphasized the need forcooperation on joint issues, such as the expansion of trade under RCEP, supply chain stability,
carbon neutrality, aging societies, and environmental issues.
Second, the three partners agreed on the importance of strengthening cooperation inareas directly related to people’s daily lives. We highlighted the significance of enhancing
mutual trust and goodwill, and the role of public diplomacy and the media. We also agreed tocontinue working on ways to institutionalize and sustain cooperation and to ensure that people
can feel the benefits of cooperation.
Third, the three partners recognized the need to open up their markets to each other andstrengthen cooperation. We agreed to continue working together on issues such as
implementing trade liberalization, combating climate change, addressing the declining
birthrate and aging society, and promoting digital government. We also emphasized theimportance of various exchange activities to enhance mutual understanding and goodwill
among the people, especially among the youth and future generations.
Through the meeting, the three partners pledged future-oriented cooperation anddecided to continue their efforts to come up with concrete cooperation measures for asustainable future. In particular, the co-hosting organizations of the three countries recognizedthat holding a trilateral summit would be helpful in further strengthening cooperation in the
future. We hope for the early realization of a trilateral summit.