CJK Cooperation Dialogue 2019

The 6th Cooperation Dialogue among China, Japan and South Korea (CJK), core countries in Asia-Pacificcooperation but occasionally embroiled in political confrontations with each other, was held on Dec. 6 inTokyo in collaboration with the China Institute for Reform and Development (CIRD) and China Foreign
Affairs University, and South Korea’s East Asia Foundation. How we can realize sustainable and inclusive
growth amid the risks to the global economy was the theme of the dialogue, quite similar to the one in theAsia-Pacific Forum 2019.
A significant slowdown in global economic growth as well as world trade was noted in a keynote address byChairman and CEO of JETRO Nobuhiko Sasaki (Charts 3&4). He also noted a rapid deterioration of businesssentiment among Japanese companies in Northeast Asia, possibly due to the slowdown in global trade (Chart5). These negative findings could be evidence of the emerging negative impact of the US-China trade war orof rising protectionism.

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The first crucial question discussed
in this dialogue was how the three
countries could mitigate this negative
impact and turn trade and investment
into opportunities for inclusive
growth. The CPTPP was considered
as a platform to achieve it and it wasnoted that the participation of China
and South Korea could be effective informing a countervailing power
against protectionism. Anothersolution might be to create a new
supply chain through the three countries’ cooperation in technology, assuming that existing supply chains
could be damaged by the US-China trade war. The RCEP was another mega-regional FTA expected to work
well and was considered a stepping stone to Asian regional economic integration, as the CJK could concludetheir own FTA within the RCEP as its members. Any other plurilateral FTA on specific sectors like digitaltechnology would be welcome. The CJK should pursue new rules on data flows and work on other new rules
not covered by the WTO, such as competition policy, trade and investment, and IPR protection in the digital
economy. Future-oriented cooperation among the three countries would maintain the dynamism of free tradeand help create better globalization. It was stressed that East Asia should be independent from the US
economy.
The environment, digital technology, populism and aging populations were examined as important factors
affecting inclusive growth. Environmental cooperation among the CJK to mitigate air pollution and marine
plastic waste was raised, and it was also considered important to change existing mindsets to achieve green
growth when applying new digital technologies like AI and IoT to local energy supply systems corresponding
to the needs of aging local communities suffering from depopulation. Digital technology as such could
contribute to the welfare of local communities as well as high-quality care for elderly people. In coping withthe negative impact of new technologies, such as labor being replaced by AI or IoT, it was mentioned that thethree nations could promote productive cooperation for lifelong human resources development or social safety
nets to save people from unemployment.

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The discussion on aging societies in the last
panel was very successful. We noted a highinterest in this issue among participants, since
all three nations are now facing rapid aging andconsequent challenges, such as rising pressure toreduce productivity, increase fiscal expenditure
for social welfare, and secure job opportunities
for the elderly. This is certainly a challenge toinclusive growth.
We also noted many issues to be explored in future meetings, such as how to prolong healthy lifespans toenable elderly people to work longer and save on welfare expenditure, how to keep high-quality caregivers,
and how to raise the birth rate (Agenda).

Naoyuki Haraoka is editor-in-chief of Japan SPOTLIGHT & executive managing director of the Japan
Economic Foundation (JEF).
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