China, Japan, Asian Century: China Economic Review

Asia’s contributions continue to gain weight in the global economy. China and Japan are the world’s second and third largest economies, respectively. India, South Korea and ASEAN members also provide substantial contributions. All benefit from free trade, explain Tomoo Kikuchi and Masaya Sakuragawa, but trade and growth have slowed. “China and Japan should pursue greater cooperation on a number of fronts, from economic development to international trade and currency internationalization,” the authors write for China Economic Review. “This will be no mean feat for two nations whose historical enmities still lie in fresh in their cultural memories.” Pursuit by China and Japan for greater economic integration – including foreign direct investment even in a few regions and infrastructure development, as well as merging Belt and Road and ASEAN projects – would counter global trends of anti-globalization populism. Another step for China and Japan considering unpredictable US policies: Reduce dependence on the US dollar and launch a multi-currency clearing system and autonomous currency area in Asia. The authors conclude that China and Japan take more responsibility for global financial leadership, with greater cooperation and integration benefiting the two nations, the continent and the world. – YaleGlobal