Japan's diplomacy in the Asia-Pacific region under Prime Minister Kan focuses on adapting to a changing global environment marked by rising economies and security challenges. The strategy emphasizes strengthening the Japan-US alliance, enhancing regional cooperation with countries like China and South Korea, and pursuing economic partnerships, including free trade agreements. Japan aims to address both domestic and global challenges through innovation and proactive engagement in international relations.

1. Japan's Diplomacy in the Asia Pacific Region under the Kan AdministrationNoriyuki SHIKATAFebruary 23, 2011Deputy Cabinet Secretary for Public RelationsDirector of Global CommunicationsPrime Minister's Office of Japan

2. Characteristics of the new global landscape“New Reality”Rise of emerging economies such as China and India⇒ major changes to the global power balance emergingImpacts of globalization, and increasing role of ICT, such as Facebook and Twitter

3. Emerging challenges such as terrorist activities and the global environment 2

4. Security environment in East AsiaAsia at the center of major tectonic changes, and risks to the security environment remain, such as nuclear development by DPRK.DPRK ・・・Sinking the ROK military vessel, Cheonan Mar.2010 Shelling Yeonpyong Island in Nov. 2010 Uranium Enrichment activities continueNuclear, Missile, Abduction issues need to be resolved3

5. Regional environment in East AsiaChinaStrengthening of national defense, transparency lacking, increasingly ambitious maritime activities, including near Senkaku islandsRussiaNorthern territory issues. Conclude a peace treaty upon resolving the issue of the attribution.4

6. Military Balance in East AsiaSource: “The Military Balance 2010” publications of the U.S. Department of Defense and others (actual numbers as of the end of FY2009 are shown for Japan).U.S. ground forces in Japan and the ROK are combined figures of Army and Marine Corps personnel.Combat aircraft includes Navy and Marine aircraft.Figures in parentheses show the total number of major units, such as divisions and brigades. Only divisions are included for North Korea. Military police areincluded for Taiwan.U.S. 7th Fleet is the number of forward deployment to Japan and Guam.Notes:5

7. Five Pillars for Japan's Foreign and National Security PolicyJapan-USalliance as the cornerstone New development of foreign relations with AsiaPromotion of economic diplomacyEfforts to address global issuesJapan responding appropriately to the security environmentsurrounding it.These five pillars are formulated with the "new reality" in mind. 6

8. Importance of Japan-U.S. alliancePresence of U.S forces in Japan essential.

9. Japan-US alliance more important in light of uncertainty and possible instability in the region.

10. Alliance continues to play a role as “public goods” fostering peace and prosperity in the region.

11. We will further deepen the alliance.

12. Three pillars of security, economics and exchange of culture and people promoted.⇒ ANew Vision for our alliance7

13. U.S. Forces in Japan8

14. Realignment of U.S. Forces in Japan and the SDFRelocation of Aircraft9

15. Realignment of U.S. Forces in Japan （Kanto Area）10

16. Realignment of U.S. Forces in Japan （Okinawa）11

17. Japan-China RelationsChina expanding influence in Asia as with remarkable economic growth.

18. China needs to play a constructive role.

19. Both countries have important responsibilitiesto bear in the international community, and will need to enhance cooperation in wide fields such as economy, regional stability, and global environment.

20. Deepen “Mutually Beneficial Relationship based on Common Strategic Interests”.12

21. Japan-ROK RelationsPrime Minister Kan issued Statement in Aug. 2010.

22. We will strengthen cooperation in the area of security while maintaining due respect for the viewpoints of the ROK.

23. Aiming to resume negotiations of Japan-ROK EPA.

24. We will build a future-oriented Japan-ROK relationship.13

25. “Third Opening of Japan” and Emerging Japan’s FTA PolicyJapan has been at a standstill for 10 years while other countries aggressively promoted bilateral and intraregional FTA.

26. Nov. 2010: GOJ adopted a Basic Policy on Comprehensive Economic Partnerships.

27. EPA with India and Peru concluded, will negotiate with Australia, ROK, Mongolia and EU.

28. TPP(Trans-Pacific Partnership) Agreement: began consultations with the relevant nations. GOJ will hold consultations with the US and others and will reach a decision by around June.14

29. Japan’s FTA/EPASwitzerlandMongoliaEUKoreaJapanGCCIndiaMexicoVietnamPhilippinesThailandBruneiASEAN(as a whole)IndonesiaMalaysiaSingaporePeruAustraliaChile12 EPAs concluded（As of Feb.2011）6 EPA Negotiations ongoing or to be started/resumed

30. Region-Wide Economic Partnerships in the Asia-Pacific region East Asia Free Trade Area(EAFTA)【ASEAN + 3】Comprehensive Economic Partnership in East Asia(CEPEA)【ASEAN + 6】Free Trade Area of the Asia-Pacific(FTAAP)USACanadaMexicoPeruChiliHong KongTaiwanRussiaPapuaNew Guinia Trans-Pacific Partnership(TPP) AgreementFTA among Japan, China and KoreaUSAMalaysiaNew ZealandBruneiChiliSingaporePeruVietnamAustralia16

31. FTA and AgriculturePromoting economic partnerships and revitalizing agriculture are compatible.

32. Japanese food culture ➜“delicious and healthy”The output of Japan’s agriculture: 4th in the world. ⇒as Japan’s food culture spreads throughout the world, Japanese agriculture can revitalize as a growing industry.Basic Policy on agricultural policy will be formulated by around June.

33. Integration and enlargement of farmland is important means to strengthen agriculture.

34. Transition to “senery” industry (multiplier)17

35. Overcome Growth Limitations with InnovationConcerns over compatibility between tackling global environment problems and economic growth.BUT they are COMPATIBLE➜ The key is INNOVATION.Japan is a top runner in this area. For example, Japanese hybrid vehicles(90% global market share) & Japan’s LED lights.⇒ They can reduce CO2 emissions by around 40%Can produce renewable energy through using plantsJapan will aggressively tackle global challenges.18

36. Implementing New Growth Strategylinked with opening up“Japan Inward Investment Promoting Program” launched and 5% Corporate Tax Rate reduction.

37. Medical care visas to promote “medical tourism” to Japan.

38. Deployment of “package” type of infrastructure such as railroads, water business, nuclear power plants(e.g. Vietnam).

39. “Open Skies” agreements with the U.S., ROK and Singapore.➜ Make Japan a “Hub for Asian economies”!!19

40. Japanese aid to developing countriesJapan’s technologies are used to tackle climate-change in developing countries.Mexico reduces electric power consumptions by 20% by using energy-efficient household appliances.

41. Malaysia makes use of Japanese climate-control equipment in factories.

42. This sharing of Japanese technologiescontributes to the environment and reduce energy and natural resources consumption.

43. Japan will show the global community models to overcome these challenges.20

44. “Inclusive Growth” in the APEC Growth StrategyTo create new bonds(“Kizuna”) in the region, PM Kan proposed the “inclusive growth” approach as chair of the APEC Yokohama as an overall regional growth strategy.

45. The objective: to give all the citizens of each country the opportunity to participate in and contribute to economic growth, and to share its benefits.

46. In the APEC Growth Strategy we are focusing on such policies as:Job creation, support for small and medium-sized enterprises, enhancements of social security systems, and support for women, the elderly, and vulnerable groups in society 21

47. Promoting Regional CooporationWill promote Regional Cooperation among China, ROK, Russia, ASEAN, Australia, India, and the U.S.

48. Will make use of APEC, the East Asia Summit, ASEAN Regional Forum ➜ Strengthen Multi-layered cooperative relationsJapan wish to create an “open network” in the region.22

49. Strengthening National Defense and Maritime SecurityNew National Defense Program Guidelines adopted in Dec. 2010.

50. Will enhance its readiness and mobility and work to build a “Dynamic Defense Force” supported by high levels of technological and information capabilities.

51. Will reinforce response capabilities in southwestern Japan and outlying islands.

52. Accelerate the upgrading of large-scale patrol vessels for maritime security.23