Power of Regionalism

Abstract This chapter focuses on the multiple layering of Japan’s regional relations in both economic and security areas, which characterizes Indo-Pacific grand strategy in the 21st century. As the bilateral focus of Japan’s economic and security relations with a heavy dependence on the United States was phased out, Japan began to engage in a regional modality, and Tokyo proactively pursued regional connectivity and institution-building. This shift supported and promoted regional integration and institution-building from APEC, ARF, and ASEAN+3 to RCEP. The Asian financial crisis of 1997 came as a major trigger for the rise of economic regionalism in Asia. By the mid-2000s, a regional summitry, East Asia Summit, based on the ASEAN centrality developed, and the Japanese government began to utilize these forums for diplomatic, economic, and security dialogues on issues such as financial stability, free-trade agreements, and counter-piracy. Due to the vast expansion of Japan’s production network across Asia that was established throughout the 1990s, regional peace, stability, and prosperity became major priorities for Japan. In the 21st century, Tokyo took an active lead in installing trade and investment rules through regional and inter-regional free-trade agreements and expanding quality infrastructural investment to enhance connectivity.