TheTradeDisputeasanEmergingPerilinJapan-ROKRelations

LiTingting

Abstract: The Japan-ROK trade dispute began as Japan unilaterally enhanced its export control against South Korea. The proximate cause for Japan’s move is triggered off by the South Korea Supreme Court’s decision on colonial-era forced labor claims, whereas the fundamental cause has to do with the two sides’ conflicting pursuits to reshape mutual relations and their respective regional strategies amid the ongoing reconfiguration of regional order in Northeast Asia. Meanwhile, Japan’s choice to put pressure on South Korea via export control, as opposed to other policy options, reflects a comprehensive consideration of policy effectiveness, risk, and strategic implications. The two sides took opposite positions regarding the fundamental principle of whether to connect or separate trade dispute and historical issues, and their policy debates did not help ease the situation except for stirring up more contradictions. Nonetheless, the South Korean government made vigorous efforts to appeal for international support and develop domestic solutions, which could to some extent help relieve the negative effects. It will be hard for the two governments to achieve a quick resolution to the trade dispute, but greater United States involvement might become a key accelerator to facilitate reconciliation.

Keywords: Japan-ROK relations, trade dispute, export control, forced labor

TheDeterioratingJapan-KoreaRelations

LiuRongrongandWangShan

Abstract: Japan-ROK relations are deteriorating in recent years because of the escalating trade war. The disputes between Japan and South Korea are long lasting and extensive. The frictions are the result of various factors, including new and historical issues such as Japan-ROK diplomatic layout adjustment, nationalist sentiment emergence, US adjustment of Asia-Pacific alliance policy, regional structural competition. As the structural contradictions between Japan and South Korea are difficult to eliminate, the possibility of a long-term tension between Japan and South Korea increases, and it will have a new impact on the regional order that is being adjusted.

Keywords: Japan-ROK relations, trade frictions, Comfort women, forced labor, historical issues

WTOReformandSino-USCo-opetitionFromtheProspectiveofGameTheory

YangHao

Abstract: WTO reform is a significant topic in the global governance mechanism reform. The WTO reform proposals by the relevant countries involve dispute settlement mechanism, trade policy supervision and the identity of developing country. It reflects the contradiction between the developed countries and the emerging countries. Using game theory, the author finds that China could adopt an international joint policy with the cooperation with EU, Canada and other states and find other effective paths to cope with the deadlock.

Keywords: WTO reform, game theory, global governance

SpecialandDifferentialTreatmentundertheWTORules

KeJing

Abstract: Since the birth of the concept of special and differential treatment (S&DT), the differences in the connotation, scope and implementation of S&DT between the developed and developing members have not been bridged. With the recent change of the global economic pattern and the transformation of the US government’s overall strategy toward China, a new round of S&DT fight is initiated by developed members led by the US government to challenge the eligibility of developing members for S&DT. The focus of the conflicts and the course of the fight show a special complexity, pertinence and urgency. The development prospect of S&DT in the future mainly depends on the interest cognition and interaction mode of WTO parties on this issue. In view of the gradual improvement of China’s economic development level, particularly the increasingly fierce competition between China and the US, China’s S&DT space in the WTO will gradually shrink in the future.

Keywords: Special and Differential Treatment, developing country status, graduation mechanism

TheReformofUSInternationalDevelopmentFinanceAgency

ZhaoXingshu

Abstract: The United States has recently modernized its international development finance agency, consolidating the Overseas Private Investment Corporation (OPIC) and the Development Credit Authority (DCA) of the US Agency for International Development (USAID) into a new agency—the US International Development Finance Corporation (IDFC). Its financing size, financing tools and governance structure have changed, but the agency is still serving US national security and foreign policy. The establishment of the new agency not only conforms to the changing development needs of developing countries, but also reflects the US determination to enhance its competitive strength. It reflects two major trends in the US global strategy and foreign policy. The developing countries become new frontiers in China-US strategic competition. Compared with China’s total development finance, the US IDFC has a smaller financing size, and will not bring too much negative impacts on China’s Belt and Road Initiative in the near future. In the long term, however, as an important tool to balance China’s global influence, it is possible for the US to create the international rule and institution on development finance through cooperation with allies and partners. Whether the US will achieve its goals or not still needs to be evaluated.

Keywords: development finance, US, International Development Finance Corporation, China

(Edited By Zhang Yimeng)