December 2016 Vol. 18, No. 3 January 2017
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E D I T E D B Y C A R L B A K E R BRAD GLOSSERMAN S E P T E M B E R – DECEMBER 2016 VOL. 18, NO. 3 JANUARY 2017 CC.CSIS.ORG PACIFIC FORUM CSIS Based in Honolulu, Hawaii, the Pacific Forum CSIS operates as the autonomous Asia-Pacific arm of the Center for Strategic and International Studies in Washington, D.C. Founded in 1975, the thrust of the Forum’s work is to help develop cooperative policies in the Asia-Pacific region through debate and analyses undertaken with the region’s leaders in the academic, government, and corporate arenas. The Forum’s programs encompass current and emerging political, security, economic/business, and oceans policy issues. It collaborates with a network of more than 30 research institutes around the Pacific Rim, drawing on Asian perspectives and disseminating its projects’ findings and recommendations to opinion leaders, governments, and publics throughout the region. An international Board of Governors guides the Pacific Forum’s work. The Forum is funded by grants from foundations, corporations, individuals, and governments, the latter providing a small percentage of the forum’s annual budget. The Forum’s studies are objective and nonpartisan and it does not engage in classified or proprietary work. EDITED BY CARL BAKER, PACIFIC FORUM CSIS BRAD GLOSSERMAN, PACIFIC FORUM CSIS SEPTEMBER – DECEMBER 2016 VOL. 18, NO. 3 JANUARY 2017 HONOLULU, HAWAII COMPARATIVE CONNECTIONS A TRIANNUAL ELECTRONIC JOURNAL ON EAST ASIAN BILATERAL RELATIONS Bilateral relationships in East Asia have long been important to regional peace and stability, but in the post-Cold War environment, these relationships have taken on a new strategic rationale as countries pursue multiple ties, beyond those with the US, to realize complex political, economic, and security interests. How one set of bilateral interests affects a country’s other key relations is becoming more fluid and complex, and at the same time is becoming more central to the region’s overall strategic compass. Comparative Connections, Pacific Forum’s triannual electronic journal on East Asian bilateral relations edited by Carl Baker and Brad Glosserman, with Ralph A. Cossa serving as senior editor, was created in response to this unique environment. Comparative Connections provides timely and insightful analyses on key bilateral relationships in the region, including those involving the US. We regularly cover key bilateral relationships that are critical for the region. While we recognize the importance of other states in the region, our intention is to keep the core of the e-journal to a manageable and readable length. Because our project cannot give full attention to each of the relationships in Asia, coverage of US-Southeast Asia and China-Southeast Asia countries consists of a summary of individual bilateral relationships, and may shift focus from country to country as events warrant. Other bilateral relationships may be tracked periodically (such as various bilateral relationships with Australia, India, and Russia) as events dictate. Our Occasional Analyses also periodically cover functional areas of interest. Our aim is to inform and interpret the significant issues driving political, economic, and security affairs of the US and East Asian relations by an ongoing analysis of events in each key bilateral relationship. The reports, written by a variety of experts in Asian affairs, focus on political/security developments, but economic issues are also addressed. Each essay is accompanied by a chronology of significant events occurring between the states in question during the four-month period. A regional overview section places bilateral relationships in a broader context of regional relations. By providing value- added interpretative analyses, as well as factual accounts of key events, the e-journal illuminates patterns in Asian bilateral relations that may appear as isolated events and better defines the impact bilateral relationships have upon one another and on regional security. The online version of Comparative Connections is available at https://cc.csis.org. Comparative Connections: A Triannual Electronic Journal on East Asian Bilateral Relations (print ISSN 1930-5370, online E-ISSN 1930-5389) is published three times annually (January, May, and September) at 1003 Bishop Street, Suite 1150, Honolulu, HI 96813. TABLE OF CONTENTS REGIONAL OVERVIEW US ASIA POLICY, SYMBOLICALLY SPEAKING ...................................................... 1 BY RALPH COSSA, PACIFIC FORUM CSIS & BRAD GLOSSERMAN, PACIFIC FORUM CSIS Once every four years, our Regional Overview attempts to reassure our readers that, despite a new US administration and/or new secretary of state, US Asia policy will remain generally consistent. This year we are trying to reassure ourselves. It is, of course, premature to be making firm pronouncements about an incoming administration’s policies, but by now signals are usually becoming pretty clear. It seemed safe to assume (as we did at the time), that the incoming Obama administration would pursue the same general policies and national security objectives in the Asia-Pacific as its predecessor: support for existing alliances as the foundation of regional security policy, constructive engagement with China, support for free trade and promotion of human rights, and a strong deterrence posture regarding North Korea, combined with firm support for nonproliferation regimes. This could yet be the case for the incoming Trump administration, but the signals are, at best, mixed, in part because we find ourselves responding to tweets – which transition team spokesmen caution should be taken “symbolically” not literally – rather than clear policy pronouncements. As a result, regional leaders, while hoping for the best (or at least more of the same) seem to be preparing themselves for a variety of outcomes, even as some try to shape the future environment. US-JAPAN RELATIONS US-JAPAN RELATIONS AND THE TRUMP EFFECT .............................................. 9 BY SHEILA SMITH, COUNCIL ON FOREIGN R ELATIONS & CHARLES MCCLEAN, UNIVERSITY OF CALIFORNIA, SAN DIEG O The US presidential election was the primary influence affecting US-Japan relations in the fall of 2016. Japan was brought into the spotlight during the campaign with Trump repeatedly criticizing Tokyo for unfair trade practices and free riding in the alliance. The outcome of the election left many Japanese worried about the future of the alliance. Prime Minister Abe quickly reached out to President-elect Trump, arranging a meeting with him in New York on Nov. 18. Beyond the attention given to the election, the LDP and Abe also sought to support the Obama administration by ratifying the Trans- Pacific Partnership and promoting maritime capacity building in Southeast Asia. President Obama and Prime Minister Abe met for the last time in Hawaii on Dec. 27. Uncertainty abounds on the economic and strategic fronts in the coming year, but the biggest unknown for the bilateral relationship will be the new US president and his approach to Asia. III US-CHINA RELATIONS CHINA PREPARES FOR ROCKY RELATIONS IN 2017 ....................................... 17 BY BONNIE GLASER, CSIS/PACIFIC FORUM & ALEXANDRA VIERS, CSIS Summits between Barack Obama and Xi Jinping in September and November helped to keep tensions in check in the last four months of 2016. Despite persisting differences over how much pressure to impose on North Korea after Pyongyang conducted its fifth nuclear test, the US and China agreed on a new UN Security Council sanctions resolution. The US Navy conducted another freedom of navigation operation (FONOP) near the Paracel Islands in the South China Sea. A Chinese Navy vessel snatched a US drone, claiming it was threatening the safety of the Chinese ship and its crew, and returned it to the US five days later. Incremental progress was made on trade disputes at the 27th annual US-China Joint Commission on Commerce and Trade (JCCT) in Washington, DC. Meanwhile, the election of Donald Trump as the next US president threatened to inject significant uncertainty into US-China relations as Trump received a phone call from Taiwan’s President Tsai Ing-wen and suggested that he might use Taiwan as a bargaining chip to extract concessions from China on other issues. US-KOREA RELATIONS UNREST AND TESTS ............................................................................................ 27 BY STEPHEN NOERPER, KOREA SOCIETY AND CO LUMBIA UNIVERSITY North Korea opened the final months of 2016 with a bang by conducting its fifth nuclear test on Sept. 9. It followed up with a series of rocket and missile tests, culminating the year with Kim Jong Un’s claim of an imminent long-range ballistic missile capability. Yet, political transition in South Korea and the United States proved the hallmarks of late 2016, suggesting potential shifts in the approaches on the Peninsula, while underscoring the firm commitment of the US and ROK to their alliance. The Park-Choi scandal led to massive protests the final two months of the year and an impeachment vote on Dec. 9 by the National Assembly, confusing political observers about the implications for South Korean political stability. Donald Trump’s surprise victory in the US raised questions among Koreans about US reliability as an alliance partner. US-SOUTHEAST ASIA RELATIONS PHILIPPINE FOLLIES .......................................................................................... 33 BY SHELDON SIMON, ARIZONA STATE UNIVER SITY & CARL BAKER, PACIFIC FORUM CSIS The