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Seoul, Tokyo and Beijing join Asean in statement warning against protectionism

Published: 05 May. 2025, 22:46 Updated: 06 May. 2025, 16:35

From left: Bank of Japan Deputy Gov. Shinichi Himino, Japanese Finance Minister Shunichi Suzuki, Chinese Finance Minister Lan Fo’an, People’s Bank of China Gov. Pan Gongsheng, Korean Finance Ministry Deputy Minister Choi Ji-young and Bank of Korea Gov. Rhee Chang-yong pose for a photo during the ASEAN+3 Finance Ministers and Central Bank Governors’ Meeting in Milan, Italy, on May 4, 2025, in this photo provided by the Bank of Korea. [NEWS1]

A growing chorus of opposition to protectionist trade policies centered around U.S. President Donald Trump’s agenda is emerging across Asia, with China taking a prominent role.

Finance ministers and central bank governors from Korea, Japan, China and the 10 Asean member states issued a joint statement on Sunday at the Asean+3 Finance Ministers and Central Bank Governors’ Meeting in Milan, warning that "escalating trade protectionism weighs on global trade, leading to economic fragmentation, affecting trade, investment and capital flows across the region.”

While the statement did not name the United States directly, its message was widely seen as a veiled rebuke of Trump’s tariff-driven trade policy, which many Asian economies see as destabilizing.

The meeting brought together finance ministers and central bank governors from 13 nations, along with the president of the Asian Development Bank and the deputy managing director of the International Monetary Fund.

The group also discussed strengthening the Chiang Mai Initiative Multilateralization, a $240 billion regional currency swap mechanism designed to serve as a financial safety net amid growing global economic uncertainty.

Chinese President Xi Jinping, left, and Russian President Vladimir Putin attend a group photo ceremony prior to Outreach/BRICS Plus format session at the BRICS Summit in Kazan, Russia, on Oct. 24, 2024. [AP/YONHAP]

The Milan rhetoric mirrors that from a gathering held a week earlier of foreign ministers from Brics nations — a coalition of 11 emerging economies led by China and Russia that has increasingly positioned itself as a counterweight to U.S.-led institutions.

The group exchanged views on the revival of unjust and unilateral protectionism that contradicted the spirit of the World Trade Organization (WTO), particularly the unchecked expansion of tariff and nontariff measures, Brazilian Foreign Minister Mauro Vieira said following the meeting, according to AFP.

The group also discussed building a unified payment system called BRICS Pay, aimed at reducing dependence on the dollar.

In its ongoing tariff standoff with the United States, China has warned countries not to sign any trade deals with Washington that could harm Chinese interests, while also fanning anti-Trump sentiment abroad to expand its sphere of influence.

Chinese President Xi Jinping visited Vietnam, Cambodia and Malaysia in mid-April on a five-day tour intended to strengthen regional ties. All three countries have been hit with steep U.S. tariffs: 49 percent on Cambodian goods, 46 percent on Vietnamese and 24 percent on Malaysian exports.

Xi is set to visit Russia from Wednesday for a state visit with President Vladimir Putin, and Beijing will host an European Union-China summit in July.

Kim Jong-chul, director general for trade cooperation at Korea’s Ministry of Trade, Industry and Energy, center, Yasuji Komiyama, Japan’s assistant minister for trade policy at the Ministry of Economy, Trade and Industry, left, and Wang Liping, director general for Asian affairs at China’s Ministry of Commerce, hold a joint press briefing for the 13th Korea-Japan-China Economic and Trade Ministers’ Meeting at the Korea Chamber of Commerce and Industry in central Seoul on March 30. [NEWS1]

China is also ramping up engagement with Korea and Japan. At a trilateral economic ministers' meeting in Seoul in late March, the three countries reaffirmed support for a “rules-based, transparent, non-discriminatory, open and inclusive multilateral trading system as enshrined in the principles and values of the WTO.” They also agreed to restart stalled negotiations for a three-way free trade agreement.

Beijing has also expressed interest in the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, a multilateral FTA led by Japan that spans the Asia-Pacific region.

But nations caught between Washington and Beijing find themselves in a bind. China is often their top trading partner, while the United States remains a critical export market.

Both powers have increasingly demanded alignment, narrowing the space for neutrality.

“As the United States engages in naked coercion of allies and adversaries alike, smaller states in the region and beyond face new dilemmas,” an article in the magazine Foreign Affairs warned on Friday.

“They have fewer incentives to antagonize China, especially as it positions itself as a comparatively more predictable and less-disruptive global power that consistently outpaces the United States in economic and military growth,” the article said.

“Korea should tactically leverage its relationship with China during tariff negotiations with the United States to counter pressure,” one trade expert noted, adding that “navigating this rivalry without provoking either side will require a delicate balancing act.”

Translated from the JoongAng Ilbo using generative AI and edited by Korea JoongAng Daily staff.
BY KIM WON [[email protected]]