Pacific Forum CSIS Comparative Connections A Triannual E-Journal on East Asian Bilateral Relations edited by Carl Baker Brad Glosserman September – December 2014 Vol. 16, No.3 January 2015 http://csis.org/program/comparative-connections 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. Comparative Connections A Triannual E-Journal on East Asian Bilateral Relations Edited by Carl Baker and Brad Glosserman Volume 16, Number 3 September – December 2014 Honolulu, Hawaii January 2015 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. 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:………………………………………………………………………………1 (Almost) Everyone Pivots to the Asia-Pacific by Ralph A. Cossa and Brad Glosserman, Pacific Forum CSIS A trifecta of international gatherings – the Asia Pacific Economic Cooperation (APEC) Leaders Meeting in Beijing, the East Asia Summit (EAS) in Nay Pyi Taw, and the G-20 gathering in Brisbane – had heads of state from around the globe, including US President Barack Obama, flocking to the Asia-Pacific as 2014 was winding to a close. North Korea was not included in these confabs but its leaders (although not the paramount one) were taking their charm offensive almost everywhere else in an (unsuccessful) attempt to block a UN General Assembly resolution condemning Pyongyang’s human rights record. More successful was Pyongyang’s (alleged) attempt to undermine and embarrass Sony Studios to block the release of a Hollywood film featuring the assassination of Kim Jong Un. US-Japan Relations:…..………………………………………………………………………..17 Heading to the End Zone on TPP and Defense by Michael J. Green, CSIS/Georgetown University, and Nicholas Szechenyi, CSIS Weak economic data prompted Prime Minister Abe Shinzo to postpone painful tax increases and call a snap election to extend the window in which to advance his policy agenda. US-Japan negotiations on TPP slowed, but President Obama made his first significant public push in December on TPP. Discussions on revising the bilateral defense guidelines advanced somewhat but were extended into 2015 to better coincide with the legislative debate in Japan on defense policy. Trilateral coordination with Australia and South Korea reflected a shared commitment to network the alliance agenda. Public opinion surveys revealed a foundation of support for the US-Japan relationship across a range of issue areas. All of the bilateral agenda on defense and trade was aimed at a potential Abe visit to Washington in the spring. iii US-China Relations:……..……………………………………………………………………..25 Summit Provides Renewed Momentum for Better Ties by Bonnie Glaser, CSIS/Pacific Forum and Jacqueline Vitello, CSIS The highlight of the final months of 2014 was the summit between Presidents Obama and Xi Jinping, which produced agreements on visa extensions, military confidence-building measures, climate change, and information technology. Alongside progress, tensions persisted over China’s activities in the South China Sea and its continued promotion of regional security architecture fashioned by Asian nations, with the US role unclear at best. The 25th Joint Commission on Commerce and Trade (JCCT) convened in Chicago in mid-December. The “Umbrella Movement” in Hong Kong introduced a new source of friction in the bilateral relationship as Beijing suspected Washington’s instigation behind the scenes. US-Korea Relations:...………………………………………………………………………….39 Common Cause as DPRK Threats Increase by Stephen Noerper, The Korea Society The closing months of 2014 saw new US vulnerabilities as North Korea purportedly leveled a massive cyberattack against Sony Pictures Entertainment. President Obama attributed the attack to the DPRK and promised a “proportional” response. Citing an increase in the broader DPRK threat, the US and ROK affirmed common cause and new resolve, agreeing to delay transfer of wartime operational control (OPCON) over ROK forces. Meanwhile, North Korea’s human rights record was condemned as the UN General Assembly voted for a referral to the International Criminal Court. The DPRK responded with a diplomatic “charm” offensive involving senior leader engagements around the globe and the release of three US detainees. US-Southeast Asia Relations:…..……………………………………………………...............47 Diplomatic Gambits by Sheldon Simon, Arizona State University Senior US officials at ASEAN-based meetings touted the Association’s centrality for the Obama administration’s rebalance to Asia. Nevertheless, a US proposal at the East Asia Summit (EAS) that all South China Sea claimants “freeze” efforts to alter the status quo on the islets they control was not endorsed at the November meeting. In the Philippines, there was some progress on implementing the Enhanced Defense Cooperation Agreement, though opponents have challenged its constitutionality. The US partially lifted its arms embargo with Vietnam, agreed to resume Cobra Gold in Thailand in 2015, and expressed approval of Indonesia’s ambitious maritime development program. Human rights concerns were noted by US officials in response to ongoing ethnic tensions in Burma and the Najib government’s decision to repeal the 1948 Sedition Act in Malaysia. iv China-Southeast Asia Relations:………………………………………………………………57 Beijing Sets Positive Agenda, Plays down Disputes by Robert Sutter, George Washington University, and Chin-hao Huang, University of Southern California President Xi Jinping and other Chinese leaders were actively engaged in Southeast Asia. They established or reinforced initiatives that employ Chinese wealth and economic connections to attract neighbors to China, including the Asian Infrastructure Investment Bank (AIIB) and the Maritime Silk Road through Southeast