Asia’s finance chiefs in united call to help Covid-hit economies
- Recovery expected this year as vaccines rolled out but process uneven, finance ministers say at ADB meeting
- China, Japan and South Korea agree to work together to maintain financial stability, despite tensions between them
Japanese Finance Minister Taro Aso said responses to the coronavirus crisis, universal health coverage, climate change, high-quality infrastructure and debt transparency and sustainability in emerging Asia would top the agenda this year.
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In a joint statement, the ministers and governors said: “We expect a rebound in 2021 as the recovery gathers momentum and vaccine roll-outs allow a gradual opening up of our economies.
“The recovery appears uneven across and within countries, and subject to possible elevated risks including the spread of new variants and different paces of vaccination.
“We remain vigilant to the downside risks and will use all available policy tools to ensure an inclusive and sustainable recovery and maintain financial stability.”
The finance chiefs vowed to use all policy tools to ensure a sustainable economic recovery, and to gradually normalise expansionary policy while mitigating risks of a fiscal cliff.
They also underscored their commitment to open and rules-based multilateral trade and investment in the region.
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The pledge for cooperation comes as tensions between the nations – especially China and Japan – are rising over maritime disputes and the influence of the United States in the region.
Pang Zhongying, an international affairs specialist at Ocean University of China, said the pledges sent an encouraging message at a time of uncertainty.
“The three countries are generally rational about their ties and there’s little sign that they will let political disagreements and differences get in the way of their economic and trade cooperation,” Pang said.
Relations between the three countries have become increasingly complicated by the US-China rivalry and a host of bilateral and regional issues, such as North Korea, Washington’s treaty alliance with Tokyo and Seoul, and Japan’s plan to dump nuclear wastewater into the sea.
While Japan has inched closer to Washington and voiced support for the Biden administration’s multilateral approach to confront China, Tokyo remains committed to the Regional Comprehensive Economic Partnership, and economic and trade ties with Beijing, according to Pang.
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Cheng Yonghua, a former Chinese ambassador to Japan and South Korea, admitted last week that there were challenges to cooperation between China, Japan and South Korea.
Speaking at a forum hosted by the intergovernmental Trilateral Cooperation Secretariat, Cheng said the East Asian countries must step up efforts to improve trust, properly deal with differences, strengthen strategic communication and consolidate their political foundation for cooperation.
According to a report by Yicai, a mainland media outlet formerly known as China Business News, Cheng suggested the three countries rely on digital platforms to increase civilian exchanges and communications amid the pandemic.
He also noted the public outcry in China and South Korea over Japan’s plan to release contaminated water from the Fukushima nuclear power plant into the sea.
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On the sidelines of the ADB meetings, Armida Salsiah Alisjahbana, United Nations under secretary general and executive secretary of the Economic and Social Commission for Asia and the Pacific, said poor countries and more vulnerable groups were marginalised in the post-pandemic recovery.
“Continuing economic stimulus and fiscal relief measures will be critical, along with robust merchandise export and resilient regional value chains.”
Additional reporting by Su-lin Tan and Reuters
