China, Japan, S.Korea investment deal to go into effect

The implementation of the deal comes as China and Japan have waged a war of words over a group of Japanese-controlled islets in the East China Sea

China, Japan, S.Korea investment deal to go into effect

World Bulletin/News Desk

A three-way investment deal between China, Japan and South Korea will go into effect on Saturday, China's Ministry of Commerce said on Wednesday, despite tension between the neighbours.

The China-Japan-Republic of Korea Agreement for Promotion, Facilitation and Protection of Investment has been signed by all three countries two years after the deal was reached in May 2012, the official Xinhua news agency said, citing the ministry.

The agreement will create "stable, favourable and transparent conditions for investment", Xinhua said.

The implementation of the deal comes as China and Japan have waged a war of words over a group of Japanese-controlled islets in the East China Sea, called Senkaku in Japan and Diaoyu in China.

Japanese and Chinese patrol ships have been playing cat-and-mouse near the islands, and the United States, despite President Barack Obama's assurances that it would defend its ally Japan, is wary of being drawn into any clash.

China's ties with Japan have long been coloured by what China sees as Japan's failure to atone for its brutal wartime occupation. Korea and China both suffered under Japanese rule, with parts of China occupied in the 1930s and Korea colonised from 1910 to 1945.

Japan also has a dispute with South Korea over a remote island in the sea between them.

The three countries are also negotiating a trilateral free trade deal, though a breakthrough is seen to be a long way off.

The United States is leading a push for a Trans-Pacific Partnership (TPP) regional trade deal, which includes Japan, but a deadlock between the two countries has held up progress on the wider 12-country trade agreement in recent months.

Neither China or South Korea are party to those negotiations, though Seoul has expressed interest in joining efforts to establish the TPP free trade bloc that would encompass about 800 million people and almost 40 percent of the global economy.

Some in China have expressed concern that the TPP would sap Japanese and South Korean interest in a trilateral deal with China and that the bloc is an attempt by the United States to exclude China from a regional trade framework.

Güncelleme Tarihi: 14 Mayıs 2014, 15:46
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