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Edited by Ashley J. Tellis, Travis Tanner, and Jessica Keough strategic asia 2011–12 asia responds to its rising powers China and India restrictions on use: is PDF is provided for the use of authorized recipients only. For specific terms of use, please contact <[email protected]>. To purchase the print volume Strategic Asia 2011–12: Asia Responds to Its Rising Powers— China and India, in which this chapter appears, please visit <http://www.nbr.org> or contact <[email protected]>. © 2011 e National Bureau of Asian Research Japan Japan, India, and the Strategic Triangle with China Michael J. Green

Japan, India, And the Strategic Triangle With China

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Japan, India, and the strategic Triangle with China

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  • Edited by

    Ashley J. Tellis, Travis Tanner, and Jessica Keough

    strategic asia 201112

    asia responds to its rising powersChina and India

    restrictions on use: This PDF is provided for the use of authorized recipients only. For specific terms of use, please contact . To purchase the print volume Strategic Asia 201112: Asia Responds to Its Rising PowersChina and India, in which this chapter appears, please visit or contact .

    2011 The National Bureau of Asian Research

    Japan

    Japan, India, and the Strategic Triangle with ChinaMichael J. Green

  • executive summary

    This chapter examines Japans relations with and strategies toward China and India.

    main argument:Though Japan is declining in relative power, its strategic response to the rise of China and India will have a significant impact on the balance of power in Asia. After years of distant relations, Japan is increasingly turning to India as a counterweight to China, encouraging Indian participation in the East Asia Summit and moving forward on security and nuclear cooperation talks. Japanese corporations are also shifting future investment plans from China to India (and other developing Asian economies) to hedge against growing political and economic risk in China. The Japan-India relationship is still hampered by New Delhis lingering Nehruvian socialism and nonalignment ideology and Japans own anti-nuclear allergies and political malaise, but the trend of closer alignment will continue to increase the strategic equilibrium in Asia as China rises.

    policy implications: External balancing strategies are insufficient to prevent further waning

    of Japans influence in Asia; economic reform and revitalization, defense spending increases, and more credible political leadership are also needed.

    Japan must work on establishing stable political linkages and crisismanagement channels with Beijing.

    The U.S. should encourage closer Japan-India alignment by realizingcalls for an official trilateral strategic dialogue and enhancing trilateralmilitary exercises,while reiteratingU.S. interests in improved relationsamong all the regions powers, including China.

    Thetragicearthquake,tsunami,andnucleardisastersofMarch2011willputdownward pressure on Japans economic and political performance in the near term but could be positively transformative in the medium to long term.

  • Japan

    Michael J. Green is Associate Professor at the Edmund A. Walsh School of Foreign Service at GeorgetownUniversityandJapanChairandSeniorAdviserattheCenterforStrategicandInternationalStudies (CSIS). He can be reached at .

    Theauthorwould like to thankresearchassistantsR.MaxHelzberg,ManuelManriquez,andNanaseMatsushitafortheircontributionstotheresearchforthischapterandNickSzechenyi,seniorfellowatCSIS, for his comments.

    Japan, India, and the Strategic Triangle with China

    Michael J. Green

    Though Japan is declining in relative power, its strategic response to the rise of China and India will nevertheless have a significant impact on the overall military, political, economic, and ideational balance of power in Asia. Realist theory teaches that status quo powers such as Japan will respond to rising powers either by bandwagoning with them or by attempting to maintain the existing strategic equilibrium through internal or external balancing. Thus far, the dynamics of Japan-China relations have not suggested bandwagoning behavior, despite growing economic interdependence between the two nations. On the other hand, Japan has exhibited only limited internal balancing behavior. Postwar restrictions on the Self-Defense Forces are steadily fading and public attitudes about national security are dramatically different than in the past, but Japans defensebudgetremainsflatatlessthan1%ofGDP,economicrestructuringhas at least temporarily stalled, and Japans unpopular political parties are failing to produce leaders capable of sustaining a mandate for change and revitalization. As a result, the most pronounced strategic behavior from Japan in response to the rise of Chinese power has been external balancing.

    While the focus of Japanese external balancing strategy remains the U.S.-Japan alliance, India andotherAsianmiddle powers have soared inimportance to Japan. India offers Japan a security hedge against China (particularly given common Japanese and Indian interests in the maritime

  • 132 StrategicAsia201112

    domain), an economic hedge against overdependence on the Chinese market,analliancehedgeagainstoverdependenceontheUnitedStatesforsecurity, and an ideational hedge with a fellow democratic state against the Beijing Consensus and criticism of Japans past. However, with the strategic convergence between Tokyo and New Delhi still at a nascent stage, these propositions have yet to be fully tested. Will India be the new frontier for expanded Japanese defense cooperation, the focus of a new growth model based on infrastructure exports, and a pillar in a new partnership of democratic maritime states? Or will the promising Indo-Japanese relationship founder on traditional Japanese anti-nuclear sentiments, the risk aversion of corporate Japan, and the undertow of Indias own residual ideologies of Nehruvian socialism and nonalignment?

    For now, there appears to be a broad political consensus in Tokyo about the strategic importance of India and the threat from China. The DemocraticPartyofJapan(DPJ)cametopowerin2009promisingtoreversethe policies of the previous Liberal Democratic Party (LDP) by distancing JapanfromtheUnitedStatesandplacingnewdemandsonIndiaintermsofnuclear nonproliferation. However, the structural realities of international relations in Northeast Asia have shifted the DPJ back onto the same general foreign policy ground as the LDP. Indeed, since normalization of relations withthePeoplesRepublicofChina(PRC)in1972,therelationshipbetweenthe two countries has never been worse, while relations with India have never been better. The tragic earthquake, tsunami, and nuclear disasters of March11,2011,willputfurtherdownwardpressureonJapaneseeconomicand political performance in the near term, although recovery is certain and a more dynamic and motivated political leadership may emerge from thecrisis.Thereisnoevidence,however,thattheeventsofMarch11havechanged the basic dynamics of Japans relations with China and India.

    This chapter dissects this new Japan-China-India strategic triangle. The first section provides historical background on Japanese strategic views of bothChinaandIndia.Thisisfollowedbysectionsassessing(1)therecentintensificationofJapansrivalrywithChinaandalignmentwithIndia,(2)the influence of increased economic dependence on China and attempted economic diversification toward India, and (3) the ideational drivers behind Japans strategic responses to both nations. The chapter concludes withanassessmentoftheimpactofMarch11onJapanesestatecraftandabrief consideration of future scenarios for Japans strategic responses to the growth of Chinese and Indian power.

  • Green Japan 133

    Historical ContextFor the first two millennia of its history, Japans strategic worldview

    was shaped by the Sinocentric system in Asia. When China was weak, Japan expanded. When China was strong, Japan was restrained. After the imposition of Western imperialism on Asia and the end of Japans so-called closed state period (sakoku jidai) in the nineteenth century, Japanese statecraft added a new card to its deckalignment with the worlds hegemonic power, first with Britain, then with Germany (with brief andtragicconsequences),andfinallywiththeUnitedStates.Thisstrategyenhanced Japanese power against other states in the system, while giving Japan maximum latitude to develop its own foreign and economic policies within Asia.

    It was precisely this latitude that the architect of Japans postwar foreign policy strategy, Shigeru Yoshida, sought vis--vis Communist China afterWorldWar II.Under theYoshidaDoctrine, JapanwouldalignwiththeUnited States and opposeCommunism in principle butwould avoidbecoming entrapped in any U.S. conflict with Beijing. Prime MinisterYoshida, who had served in China as a diplomat before the war, believed that China would eventually split from the Soviet Union and reach anentente with Japan based on commercial ties. Japanese political elites were divided on the question of China, with mainstream politicians in the LDP following Yoshidas line and anti-mainstream politicians (including the fathersandgrandfathersofPrimeMinistersJunichiroKoizumiandShinzoAbe) arguing for closer ties with Taiwan, revision of the pacifist Article Nine of Japans Constitution, and more explicit security ties with the West. Yoshidas view prevailed, however, as successive Japanese governments used Article Nine to construct policy and legislative obstacles to military cooperationwiththeUnitedStatesinAsia.Meanwhile,JapanesefirmsbegantradingwiththePRCthroughthe1963Liao-Takasakiagreement,pushingtheenvelopeofcommercialrelationswiththemainlandevenbeforeofficialties were established immediately after President Richard Nixon opened U.S. relationswithChina in 1972 (theUnited Stateswould take anotherseven years to normalize relations with Beijing). Japan continued hewing closer to thePRC than theUnited States did over the next twodecades,expandinginvestmentinChinaaftertheappreciationoftheyeninthe1985Plaza Accord and then serving as a bridge between Beijing and Washington in the aftermath of the Tiananmen Square incident on June 4, 1989. Bythe early1990s, JapanwasChinas largest tradingpartnerandChinawassecondonlytotheUnitedStatesintermsofJapanstrade.JapanesestrategicwritersbegantoanticipateamorebalancedU.S.-Japan-Chinatriangleafter

    [Green] Japan, India, and the Strategic Triangle with ChinaExecutive SummaryMain TextHistorical ContextThe Strategic Triangle under the DPJ: A Return to the New Normal?The Reverse Image: Economic RelationsThe Ideational FactorThe Impact of March 11Looking Ahead