Japan backs TPP to ensure ‘free and fair’ regional order

Japan’s ambassador has questioned the inevitability of China’s dominance of the Asia-Pacific and is keen to embrace the TPP.

Japanese ambassador Sumio Kusaka. Picture: Kym Smith

Japan’s ambassador to Australia has questioned the inevitability of China’s dominance of the Asia-Pacific, revealing his government is “stepping up its engagement” with China to ensure a “rules-based international order” and encouraging the US to join the Trans-Pacific Partnership.

Sumio Kusaka said Japan wanted to make the 11-nation deal “the cornerstone of a free and fair economic order in the Asia-­Pacific”. The TPP was signed in March largely as a result of Japanese and Australian efforts after President Donald Trump withdrew the US early last year.

Japan intended to put it into ­effect “as soon as possible, preferably before the end of this year”.

Mr Kusaka said China’s influence had “increased considerably” and its economic growth had ­benefited “many millions” of people. “Whether China will become the dominant power in the region remains to be seen,” he said.

In a week when China’s Foreign Minister blamed Australia for worsening relations between the countries, Mr Kusaka said the Japan-Australia relationship was “going from strength to strength”.

 

Malcolm Turnbull and Japan’s Prime Minister Shinzo Abe were having “numerous and regular telephone calls”, he revealed. “On the security side, co-operation has grown recently, and we are scheduled to hold our first joint air exercise in Japan later this year.”

Rod Eddington, president of the 56-year-old Australia Japan Business Co-operation Committee, said “the man in the street” was losing sight of Japan’s importance, amid the emphasis on China. “It’s not about China or Japan, but China and Japan, and don’t forget about Japan,” Sir Rod said.

Although China is Australia’s biggest trade partner, Japan recently cemented its position as our second-biggest foreign investor — behind only the US — with more than $92 billion invested directly in Australia, up 33 per cent in four years. Chinese foreign direct investment has increased 28 per cent to $40.7bn over the same period.

“One of the reasons why Japanese investment in Australia is generally not contentious ... is it’s genuinely private-sector investment,” Sir Rod said, a reference to the influence Beijing is believed to have over large Chinese companies. In 2016, the Turnbull government blocked the sale of NSW power distributor Ausgrid to Chinese and Hong Kong bidders.

The ambassador singled out Japan’s purchase of logistics firm Toll as an example of the diversification of Japanese investment away from energy and resources into construction, services and manufacturing. Last year Japanese companies bought or merged with 39 Australian firms in deals worth on average $245m, according to Herbert Smith Freehills.