Japan’s Foreign Policy: Challenges and Prospects in Japan-China Relations

Shingo YAMAGAMI Ambassador (Policy Planning, International Security Policy)

Tokyo, Japan

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1. The Senkaku Islands

2. Japan- China Summit Meeting

（November 10，2014）

3. Japan- China Economic Relationship

4. Japan-China Maritime Communication Mechanism

between the Japan-China defense authorities

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“State Ownership“ of the Senkaku islands is nothing new.

【The Senkaku Islands 】

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Taisho,Okino-kitaiwa, Okino-minamiiwa,and Tobise islands etc.

Uotsuri

Kita-kojima Minami-kojima

【Uotsuri, Kita-kojima, Minami-kojima】 1896：Leased to a Japanese citizen free of charge 1932：Sold off to a Japanese citizen 2012：Returning the ownership from a private citizen to the Government of Japan(GOJ)

The GOJ had owned until 1932 Why is China strongly objecting to the transfer of the

ownership of three Senkaku islands in 2012, while it had not done so before?

１．The Senkaku Islands （1)China pulled “the trigger”

Under private ownership:

Kuba island State-owned throughout：

The Senkaku Islands

(尖閣諸島)

All the Islands within the area inside the straight lines on the map were returned to Japan in accordance with the 1972 Okinawa Reversion Agreement

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Location of the Senkaku Islands

１

• The Establishment of Law on the Territorial Sea and the Contiguous Zone in 1992

２

• Intensified activities in the seas around the Senkaku Islands

３ • Rapid increase of its defense budget

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China’s attempts to change the status quo

East China Sea

Increasing intrusions into territorial waters around the Senkaku Islands which started in 2008

Ramming of a Chinese fishing boat into Japan Coast Gard patrol vessels in territorial waters around the Senkaku Islands in September 2010

China's announcement of the Establishment of “Air Defense Identification Zone (ADIZ) in the East China Sea” in November 2013

Chinese military jet fighters flew excessively close to aircrafts of the JMSDF and the JASDF over the high seas in May and June 2014 6

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Increasing intrusions into territorial waters around the Senkaku Islands

Increased by; - 4000% in 26 years - 400% in 10 years 8

Change in China’s Announced Defense Budget

Criticism against the Japanese Government

『There exists no territorial dispute 』

（Japanese Government’s Position）

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“Hard to understand. It is not acceptable in private-sector negotiations. We would not like the GOJ to state its position more than necessary. ” （ Asahi Shimbun , September 28, 2012）

Mr. Hiromasa Yonekura, former Chairman of “ Keidanren”(Japan Business Federation)(経団連・米倉弘昌前会長)

Prof. Yoshihiko Yamada and Mr. Masato Ushio, 『尖閣激突 日本の領土は 絶対に守る』（Publisher; ”Fusosha”, 2012）

“His assertion undermines Japan’s national interests. It benefits only

China or he considers only

economic interests including his own

company.”

１．The Senkaku Islands （2) Whether a dispute exists or not ?

The existence of a diplomatic concern does not mean the existence of a dispute.

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Diplomatic concern：

e.g. comfort women death penalty

Legal dispute

Difference between diplomatic concerns and legal disputes

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（The Senkaku Islands ) are naturally Japanese territory. If not, to whom do they belong? There is no historical record they belong to other countries than Japan and no geographical territorial delimitation. Taiwan cannot say the Senkaku islands belong to it. Seeing a beautiful woman, can you say she is my wife? Is such a behavior valid? We should judge the issue based on historical facts.

Lee-Teng-hui, former President of Taiwan(李登輝元台湾総統)

Remarks by Lee-Teng-hui, former President of Taiwan( Taiwan Central News Agency, September 24, 2008)

It means • “ There exist a territorial issue.”

namely

• “There exist a issue of territorial sovereignty to be resolved in accordance with international law.”

Significant meaning

• “The status of territory in question is not yet established to belong to a country.”

• A country should accept the possibility to lose its sovereignty over all or part of the territory as a result of negotiations, or depending on a judgment by the third party.

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What does it mean to admit the existence of a territorial issue?

Part of Spratly Islands

(Under control of Vietnam and

Philippines, etc. )

“There exists no dispute concerning territorial sovereignty.”

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“There exists dispute concerning territorial sovereignty.”

Paracel Islands; (Under China’s

control)

China’s position

Japan’s valid control

（The era of Meiji, Taisho, prewar Showa :Private settler;

collecting bird feathers, and manufacturing dried bonito)

“It is China who should bring the case to the international court”

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Challenge/ Change

Status quo

China, trying to challenge and change the status quo, should indeed refer the case to the

International Court of Justice

１．The Senkaku Islands （3) The Possibility of judicial settlement

Incorporation of the Senkaku Islands into Japanese territory ( Occupation of terra nullius)

“terra nullius”

• From 1885, surveys had been thoroughly conducted.

• It was confirmed that the Senkaku Islands had been not only uninhabited but also showed no trace of having been under the control of the Qing Dynasty of China.

“Intention to possess sovereignty”

• GOJ made a Cabinet Decision on January 14, 1895, to erect markers on the islands.

“effectivités”

• Approval concerning the use of the islands to an individual.

• Field Surveys conducted by the GOJ and Okinawa Prefecture.

• Settlers, inhabitancy and economic activities

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１．The Senkaku Islands （4) Is the Senkaku issue “history issue “?

After the incorporation of the Senkaku Islands into Japanese territory in January, 1895, Japanese civilians settled on this islands based on obtained permission from the GOJ. Settlers ran businesses such as dried bonito manufacture.

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A commemorative photo in front of a bonito processing factory on the Senkaku Islands

in Meiji 30s(1987-1906) (Photo: Ms. Hanako Koga/the Asahi Shimbun

Company)

A scene of bonito being dried on the Senkaku Islands in Meiji 30s(1987-1906)

(Photo: Ms. Hanako Koga/the Asahi Shimbun Company)

Japanese people’s economic activities on the Senkaku Islands

The San Francisco(SF) Peace Treaty Article 2: Japan’s renunciation of all right, title and claim to

Formosa(Taiwan) and the Pescadores

Article 3: The U.S. right to exercise all and any power of administration over the Nansei Shoto

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The Senkaku islands are part of the ”Nansei Shoto”

Taiwan： recognized the SF Peace

Treaty in accordance with the 1952 Sino-Japanese Peace

Treaty.

Taiwan and China: raised no objections to the decision about the

Senkaku Islands under the SF Peace Treaty.

US position

“We do not take a position on the ultimate sovereignty of the Senkaku Islands.”

“We oppose any unilateral action that would aim at changing the status quo.”

“The Senkaku Islands are under the administration of Japan. Therefore Article V of the Japan-U.S. Security Treaty applies to the Senkaku Islands.”

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Article V of the Japan-U.S. Security Treaty: Each Party recognizes that an armed attack against either Party in the territories under the administration of Japan would be dangerous to its own peace and safety and declares that it would act to meet the common danger in accordance with its constitutional provisions and processes.

Secretary of State, John Kelly

President Obama

Secretary of Defense, Chuck Hagel

１．The Senkaku Islands （5） Understanding and cooperation of the international community

Regarding Discussions toward Improving Japan-China Relations (November 7th, 2014)

Toward the improvement of the Japan-China relations, quiet discussions have been held between the Governments of Japan and China. Both sides have come to share views on the following points: １．Both sides confirmed that they would observe the principles and spirit of the four basic documents between Japan and China and that they would continue to develop a mutually beneficial relationship based on common strategic interests. ２．Both sides shared some recognition that, following the spirit of squarely facing history and advancing toward the future, they would overcome political difficulties that affect their bilateral relations. ３．Both sides recognized that they had different views as to the emergence of tense situations in recent years in the waters of the East China Sea, including those around the Senkaku Islands, and shared the view that, through dialogue and consultation, they would prevent the deterioration of the situation, establish a crisis management mechanism and avert the rise of unforeseen circumstances. ４．Both sides shared the view that, by utilizing various multilateral and bilateral channels, they would gradually resume dialogue in political, diplomatic and security fields and make an effort to build a political relationship of mutual trust.

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2. Japan-China Summit Meeting

(1) Total Bilateral Trade: $312.0bill (2013) ※JPN→CN: $129.9bill (China is the second largest export destination for Japan.)

CN→JPN: $182.2bill (China is the largest source of import for Japan.) ※China is the largest trading partner for Japan. (Japan is the second largest trading partner for China (following the US).)

【c.f.】 Japan-US Bilateral Trade Total : $203.5bill

(JPN→US: $133.2bill, US→JPN: $70.3bill) Japan-ASEAN Bilateral Trade Total : $230.3bill (JPN→ASEAN: $111.7bill, ASEAN→JPN: $118.6bill) US-China Bilateral Trade Total : $521.0bill

(US→CN: $152.6bill, CN→US: $368.4bill)

(2) Japanese Business in China : 23,094 companies (2012) ※The largest by country basis and accounts for 7.9% of the total number of foreign companies in CN.

【c.f.】

No. of foreign companies in China (including those from Hong Kong and Taiwan)

- Total: 291,960 companies - Hong Kong: 125,074 companies - Taiwan : 25,008 companies - US: 20,210 companies - Singapore: 17,541 companies

$130bill

as of 2013

$182bill

as of 2013

0

50

100

150

200

250

300

350

1972 74 76 78 80 82 84 86 88 90 92 94 96 98200002 04 06 08 10 1213

Import from China

Export to China

（U.S. billion dollars）

（Year）

Changes in the Total Bilateral Trade between Japan and China

Source: ＪＥＴＲＯ

３．Japan-China Economic Relationship

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３．Japan-China Economic Relationship

(3) Japan’s FDI to China： $4.33 bill (2014)

※Japan is the second largest investor to China. 【c.f.】 FDI to China from other countries and regions (2013)

Singapore: $5.93 bill US: $2.67 bill ※EU: $6.85 bill

(4) Cumulative Amount of Japan’s ODA to China: approximately 3.66 trillion yen (2013) ･Loan Aid : 3.32 trillion yen ･Grant Aid : 0.16 trillion yen ･Technical Cooperation : 0.18 trillion yen

6.5 4.6 3.6 3.7 4.1 4.2 6.3 7.4 7.1 4.3

-4.3

-38.8%

-2.9 1.7%

-60

-40

-20

0

20

40

60

0

2

4

6

8

2005 06 07 08 09 10 11 12 13 14

Japan’s FDI to China（Annual）

Source: Ministry of Commerce, People's Republic of China. ※After 2008, numbers includs investment from so-called tax haven.

（Billion U.S dollars ） （％）

（Y）

Japan’s FDI to China(total amount) Increase rate(Japan) Increase rate(World)

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４． Japan-China Maritime Communication Mechanism between

the Japan-China defense authorities

Purpose

To promote mutual understanding and trust, strengthen defense cooperation, avoid an unexpected crash, and prevent an unexpected incident at sea and airspace from developing to a military conflict or political problem. Organization ① Annual meeting/expert meeting ② Hotlines ③ Direct communication between vessels and aircrafts

On 12th January 2015, the fourth working group meeting on the maritime communication mechanism was held between defense authorities of Japan and China in Tokyo.

The two sides agreed to implement the mechanism at an early time upon making

necessary adjustments

[c.f.] 1st WG : April 2008, Beijing 2nd WG : July 2010, Tokyo 3rd WG : June 2012, Beijing

Thank you for your attention!

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