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Myanmar President Thein Sein, left, shakes hands with Japanese Finance Minister and Deputy Prime Minister Taro Aso during their meeting at Presidential House in Naypyitaw, Myanmar. Photo: AFP

Myanmar trip signals a more assertive Japan

Pavin Chachavalpongpun mulls Tokyo's bid for economic opportunities and regional influence

Shinzo Abe

Japan has renewed its diplomatic activism following the victory of the Liberal Democratic Party, which saw Shinzo Abe return as prime minister. As soon as the cabinet line-up was announced, Abe sent his deputy Taro Aso, a former prime minister himself and now also the finance minister, to Myanmar.

Japanese media wondered about the choice of a relatively small country like Myanmar for such a trip. But Abe was quick to clarify that his new foreign policy would focus on strengthening the Japanese economic presence in the region.

Two key factors lie at the heart of this policy. First, Japan wishes to consolidate business ties with Asia's developing economies, at a time when the country is slipping further into recession. Second, Japan hopes to employ these economic ties to promote democratisation in certain Asian countries - a win-win policy for Japan.

Thus, Myanmar is the perfect choice. As Myanmar embarks on its own political and economic opening, Japan was among the first to engage the new leaders. In his meeting with President Thein Sein, Aso said Japan would slash Myanmar's massive outstanding debt - estimated at around 500 billion yen (HK$44 billion) in Tokyo's case - and offered new financial assistance.

But Japan's assistance will come with strings attached. Aso made it clear Myanmar would have to promise to continue to pursue political reform, especially the release of all political prisoners, promote greater political participation of ethnic minorities, and encourage a more active role for the opposition.

In terms of economic development, Japan expects Myanmar to upgrade its financial infrastructure and put in place regulations to ensure Japanese investor confidence. These are the obvious conditions.

But there is also a more hidden agenda. Japan's interest in Myanmar can be perceived as its latest attempt to reduce Chinese influence in the country, and the region at large. Tension between China and Japan has intensified over the past year, and both nations are competing for influence in the region.

China is wary of Japan becoming more assertive in Southeast Asia, with the backing of its ally, the US. So, Beijing is certain to have kept a watchful eye on Aso's trip to Myanmar.

It is now up to the Myanmar government to ensure that the process of democratisation remains a top priority. If it is able to show the international community its readiness to tackle contentious issues, such as the persistent ethnic insurgencies and the protection of basic human rights, foreign investments and assistance will continue to pour in. This will help support Myanmar's ongoing political reforms.

This article appeared in the South China Morning Post print edition as: Myanmar trip signals a more assertive Japan
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