Illustration: Liu Xidan/GT

In a world increasingly fragmented by geopolitical tensions and protectionist policies, the recent trilateral meeting of top trade officials from China, Japan and South Korea is infusing fresh momentum into economic cooperation in East Asia. The region has been one of the most dynamic areas for global economic growth. The advancements in industrial chains that are underway in this vibrant region may offer a fresh perspective on observing the global economy.

The Sunday meeting took place amid increasing downward pressure on the global economy, influenced by factors such as unilateralism and protectionism. Chinese Minister of Commerce Wang Wentao said that the three countries, as major regional and global economies, have to make joint efforts to safeguard free trade and the multilateral trading system.

According to the Xinhua News Agency, the economic and trade departments of the three countries agreed to discuss accelerating negotiations on the trilateral free trade agreement (FTA), strengthen supply chain cooperation and dialogue on export controls, and deepen collaboration in the digital and green economies, among other initiatives. Notably, these cooperative efforts are primarily aimed at emerging industries, which represent some of the most dynamic sectors of the economy. 

The China-Japan-South Korea FTA is again in the spotlight. This strategic initiative is of multifaceted significance, as it moves beyond traditional tariff reductions to pursue a high-level FTA that addresses modern regulatory issues, including the digital economy, green industries and intellectual property rights. Among its key advantages are the mitigation of trade protectionism, the enhancement of competitiveness, the bolstering of supply chain resilience and the fostering of emerging industries to cultivate new growth opportunities.

Traditionally, South Korea's semiconductors and vehicle parts, along with Japan's high-end manufacturing and chemical products, have found substantial markets in China. Conversely, China's agricultural products, home appliances and industrial goods have been steadily increasing their market shares in Japan and South Korea. The China-Japan-South Korea FTA is poised to further facilitate the creation of a vast consumer market among these three nations, whose combined GDP reportedly accounts for approximately 25 percent of the global economy.

Within the global supply chain network, Asian nations have served as key exporters, utilizing their resources and manufacturing prowess to provide a steady flow of goods to the developed economies of Europe and North America. However, the ongoing reshaping of the global supply chain, coupled with the rise of a vast consumer market in East Asia, may incrementally lessen the region's reliance on the American market. This shift has the potential to mitigate the influence of US tariffs on collaborative efforts within the Asian industrial chain.

For decades, Asia has stood as the global epicenter of manufacturing. It is on the brink of creating an enormous consumer market, underpinned and propelled by a network of free trade agreements. This endeavor is anticipated to propel the collaborative dynamics among China, Japan and South Korea to unprecedented levels.

Despite the challenges posed by geopolitical factors and external influences, trilateral economic and trade cooperation has flourished through long-term integration and active engagement. This collaboration has become deeply intertwined, fostering a positive dynamic that showcases remarkable resilience and vitality in an increasingly complex international landscape. 

For 15 consecutive years, China and Japan have maintained a robust trade relationship, with trade consistently reaching $300 billion and cumulative bilateral investments approaching $140 billion. China has been Japan's largest trading partner for 17 years, while China is also South Korea's largest trading partner, export market and source of imports. In 2024, trade between China and South Korea grew to 2.33 trillion yuan ($322 billion) from 2.18 trillion yuan in 2023.

Furthermore, the three sides are actively pursuing economic and trade cooperation in emerging sectors such as the digital and green economies. There is a concerted effort to strengthen collaboration in supply chains and industrial chains, creating a favorable business environment for corporate partnerships.

In light of recent US threats to impose high tariffs on key industries such as imported cars and its disruption of global supply chains, China, Japan and South Korea - crucial manufacturing hubs in East Asia - share a common interest in strengthening supply chain cooperation and establishing a unified large market. 

Whether this goal can be achieved depends on the ability of the three parties to effectively manage competition and differences, focusing on long-term mutual benefits. Amid the headwinds of anti-globalization, the forward momentum of the China-Japan-South Korea FTA demonstrates the power of vibrant emerging industries seeking to break through external pressures.

The author is a reporter with the Global Times. bizopinion@globaltimes.com.cn