China-Japan Ties: Analysts: Attitude Change of Japan under B&R Initiative

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As the "Belt and Road" expands its breadth and depth, the East Asia trade pattern, especially the competition concerning the division of labor between China and Japan has changed a lot. And so Japan's attitude towards the China-proposed "Belt and Road" is crucial. Our Hou Na explains.

Japan has been voicing its openness to the Belt and Road Initiative since May 2017. Abe said early last year that Tokyo would "properly respond to" individual cooperation programs related to the initiative that aims at achieving common development.

Analysts say, under the initiative, third-party market cooperation will be a focal point in China-Japan collaboration.

Abe then paid a three-day visit to China in October 2018, the first by a Japanese prime minister since 2011.

When meeting with Abe in Beijing, President Xi said China-Japan ties were "back on track" and gained positive momentum with concerted efforts by both sides. He urged Japan to play a more active role in the Belt and Road Initiative (BRI) cooperation.

Abe indicated that the BRI had great potential for development, including third-party collaboration.

HOU NA BEIJING "Experts say that with the government's attitude turning supportive, Japanese enterprises can start to find more direct ways of participation. Feasible areas of collaboration include infrastructure construction, high-speed railway, artificial intelligence and energy exploitation."

The Japanese media said Tokyo plans to work with Beijing on the initiative by financially supporting private-sector partnerships.

The cooperation will center on areas like the environment, industrial modernization and logistics.

Kiyoyuki Seguchi, research director of the Canon Institute for Global Studies in Tokyo, said that economic interactions with China will expand business opportunities for Japanese companies.

He says "If projects with good content are effectively implemented, they can be expected to promote the globalization of many Japanese companies whose response to globalization is delayed."

Chinese Premier Li Keqiang made an official visit to Japan in May last year, the first by a Chinese premier in eight years. Japan received Premier Li with the highest standard, and Abe accompanied Li throughout his visit.

During Li's visit, China and Japan signed a memorandum of understanding on third-party cooperation.

During Abe's October visit last year, the Japanese prime minister attended the first forum on third-party market cooperation.

Fifty-plus cooperation agreements worth more than 18 billion U.S. dollars were signed, an indication that cooperation in this regard is bound to become a new pillar for pragmatic cooperation.

The People's Bank of China, the central bank, has also inked a currency swap agreement with its Japanese counterpart. The move is aimed at enhancing financial stability in the two countries and facilitating bilateral economic and financial exchanges.

The agreement will allow the two sides to swap a total of 200 billion yuan (about 28.78 billion U.S. dollars) for 3.4 trillion Japanese yen, and vice versa.

Abe has said he hopes his meeting with Xi at the G20 summit can push bilateral ties a step further and open a new era of Japan-China relations.

HOU NA, CGTN, BEIJING.