The impact of Japan’s rivalry with China on its willingness to pursue free trade agreements

This study explores the main causes that have led Japan to conclude an FTA with ASEAN. This paper appraises Japan‐ASEAN relations and shows that closer relations between Japan and ASEAN have provided momentum for the launch of Japan's FTAs with ASEAN. Consequently, this paper explores the origins and progress of Japan‐ASEAN FTA, as well as the strategies and initiatives embraced by Japan in its FTA negotiations with ASEAN. By examining the domestic, regional, and global factors that led to the launch of the Japan‐ASEAN FTA, this paper concludes that the strategies adopted were primarily aimed at its main rival, China. The rivalry has resulted in both positive and negative consequences for East Asian Regional economic environment. The negative consequences include the creation of a “spaghetti bowl”, which increases costs for Japanese firms operating abroad, and “slows down the progress of the creation of an effective single regional institution”.