After a hiatus since 2019, the leaders of China, Japan and South Korea met in Seoul late last month. This complex trilateral relationship is one of the most important for these neighbours. Together, their gross domestic product is 30 per cent higher than the European Union’s. They are important trading partners to each other, focused on high-value, often hi-tech, goods.
Beyond the Regional Comprehensive Economic Partnership (RCEP), the three economies are resuming negotiations on a free-trade area.
They represent the most remarkable post-war economic successes – starting with Japan, followed by South Korea and culminating in China – reshaping the global map of production and technology. They now face common problems of low fertility, shrinking workforces and rapidly ageing populations.
The competition for opportunities in education and the workplace is just as intense in South Korea as it is in China, giving rise respectively to the “N-po” generation and “lying flat” movement. While their parents have enjoyed the fruits of economic development, young people in these countries struggle with economic insecurity and an uncertain future.
While all three started with labour-intensive manufacturing, they have successfully transitioned into technology powerhouses. In the World Intellectual Property Organisation’s latest global innovation index, the top five science and technology clusters are all occupied by the three East Asian countries.
Last year, China, Japan and South Korea made 140,777 Patent Cooperation Treaty applications altogether, 2.5 times the US’ total, and more than three times what the next six countries in the top 10 submitted in all.
The semiconductor supply chain is centred in East Asia – a marvel of intricate interdependence and specialisation spanning mainland China, Taiwan, Japan and South Korea. This ecosystem relies on the seamless collaboration of these complementary players across stages of chip production to achieve efficiency and drive innovation.
