After a decade of rising regionalist aspirations and a flurry of community-building initiatives, the past year and a half has seen a slight shift in the momentum and direction of Asian regionalism. While the signing of regional free trade agreements continues apace and discussions on regional cooperative mechanisms proceed unabated, the perceptions and political goals of many in the region have been recalibrated in the face of new challenges and new opportunities. By far, the biggest challenge was the global economic crisis, which had a mixed impact on Asian regionalism. On one hand, it spurred calls for regional action, much in the way of the financial crisis that hit Asia hard in 1997-98. Moreover, the relatively swift recovery of Asian economies seemed to highlight the fact that world economic power is shifting to East Asia. On the other hand, crisis revealed the extent to which East Asia remains deeply integrated with the global economy, in both trade and finance, and it called into question the relevance of regional solutions for dealing with global challenges.
Hopes for a resumption of Six-Party Talks this past quarter were torpedoed when an international investigation team concluded that the ROK Navy ship Cheonan was deliberately attacked by a North Korean submarine. The Chinese, while scuttling plans for UNSC censure of Pyongyang, fired a warning shot of their own, denying Defense Secretary Gates' request for a China visit after the Shangri-La Dialogue in June in a sign of continued displeasure over US arms sales to Taiwan. Also once again torpedoed, this time by an oil spill, was President Obama's twice-delayed “homecoming” visit to Indonesia.
Political Geography:
United States, China, Indonesia, Taiwan, and North Korea
April 2, 2010: South Korean Deputy Foreign Minister Lee Yong Joon, Chinese Assistant Minister for Foreign Affairs Hu Zhengyue and Japanese Deputy Minister for Foreign Affairs Kenichiro Sasae meet in Jeju, Korea to prepare for a trilateral summit and foreign minister talks. Regional Overview 15 July 2010 April 2-5, 2010: Inaugural Mekong River Commission meeting held in Hua Hin, Thailand.
The relocation of Marine Corps Air Station Futenma on Okinawa remained the predominant issue in the US-Japan relationship and the two governments issued a joint statement in late May reaffirming a commitment to realize a plan adopted in 2006 with some modifications to be explored. Prime Minister Hatoyama then resigned as polls revealed frustration with his handling of the Futenma issue and weak leadership overall. Finance Minister Kan Naoto succeeded Hatoyama as premier and outlined his own policy priorities just weeks before an important parliamentary election. Kan stressed the centrality of the US-Japan alliance to Japanese diplomacy and reiterated the theme in his first meeting with President Obama at the G8 Summit in late June. The two leaders' first meeting was business-like and lacking for drama – exactly as both governments had hoped. New public opinion polls suggested political turmoil at home has not had a significant impact on Japan's standing globally or in the US, but some observers continued to suggest the US should lower expectations of Japan as an ally in the debate about the future of the alliance.
Presidents Barack Obama and Hu Jintao met twice this quarter, first on the sidelines of the Nuclear Security Summit in Washington in April and again on the margins of the G20 Summit in Toronto in June. Nevertheless, tensions lingered over US arms sale to Taiwan and the military relationship remained suspended. The Chinese rejected a request from Secretary of Defense Robert Gates to visit China. The second round of the Strategic and Economic Dialogue was held in Beijing in late May, yielding agreements on energy, trade environment, and healthcare. Many hours were spent during the quarter in discussions between the two countries on an appropriate response to the sinking of the South Korean warship, but the gap was not narrowed. In June, China finally announced the long-awaited decision to allow its currency to be more flexible, though it remains unclear how fast and to what extent it will permit the yuan to appreciate.
Topic:
Bilateral Relations
Political Geography:
United States, China, Washington, Taiwan, South Korea, and Toronto