China, Japan, and South Korea meet to discuss finance.

(Baonghean.vn) - China, Japan, and South Korea have planned a meeting on the sidelines of the G20 finance ministers and central bank governors' conference in Peru on October 8th.

The 2010 trilateral summit between China, Japan, and South Korea. Photo: Flickr/KOREA.NET.

In a statement to Yonhap News Agency, the South Korean Foreign Ministry said the meeting would focus on “macroeconomic conditions, developments in financial markets, and the best responses to changes in economic policy implemented around the world.” One of the policy changes receiving particular attention from these East Asian economies is the possibility of the U.S. raising interest rates later this year.

This will be the second meeting between the finance ministers of the three East Asian countries this year. They previously met in May on the sidelines of the Asian Development Bank (ADB) meeting in Azerbaijan.

However, this meeting will be particularly important because it has the potential to set the tone for the summit of leaders, which, although the exact date has not yet been determined, is highly anticipated to take place in South Korea later this year.

While the three countries have previously held joint summits at the head of state level, the upcoming summit will be the first meeting since 2012. This regular cooperation forum has been suspended due to historical and territorial tensions, including anger from China and South Korea over what they perceive as Japan's reluctance to take responsibility for its wartime past.

Since Prime Minister Shinzo Abe came to power in 2012 and pursued a firm stance, both Chinese and South Korean leaders have become increasingly concerned about the prospect of Japan returning to its militaristic past.

Tensions flared again following Abe's "unconvincing" speech at the 70th anniversary of Japan's surrender in World War II, but Chinese and South Korean officials have recently signaled an agreement to temporarily set aside political concerns. At a meeting in Beijing in September, South Korean President Park Geun-hye and Chinese President Xi Jinping agreed that a trilateral summit would further contribute to regional peace and prosperity.

Guo Yanjun, deputy director of the Asian Studies Institute at China Foreign Affairs University, noted that a leadership-level summit would be a key driver of “practical cooperation.” While no official promises have been made, there is still hope that the summit will ease tensions over territorial disputes.

More importantly, the conference will promote discussions on a draft free trade agreement between the three parties. Such an agreement would have a tremendous impact, especially considering that the combined gross domestic product (GDP) and trade volume of the three countries account for 20% and 18.3% of the world's total, respectively.

The summit will also be the venue for President Park and Prime Minister Abe to hold their first official bilateral meeting. While Sino-Japanese relations have warmed following President Xi and Prime Minister Abe's meeting in April, Japan's relations with South Korea remain unstable. Besides resolving long-standing historical issues, the two leaders will have a further opportunity to discuss prospects for broader security cooperation – a matter of particular interest to both countries and their Western allies in the context of an unpredictable North Korea and a growing China.

Thu Giang

(According to Diplomat)