ABSTRACT
The Asia-Pacific region has shown a strong momentum in the world of multilateral trade agreements and sits at the juncture of global competition and regional rivalry. How can a region at the center of geopolitical competition play a leading role in furthering the global and regional multinational trade framework? Why did China and Japan, two major powers in the region that have been firmly locked in strategic rivalry, take the initiative to promote the Regional Comprehensive Economic Partnership (RCEP), a free trade pact? This paper argues that asymmetric threat perceptions and an emphasis on FTA strategy have contributed to Asian economic integration and that regional middle powers such as Japan have a potential influence on shaping the direction of regional cooperation. Additionally, Japan’s strategy of promoting high-standard rules for trade and investment has the potential to drive further reform and opening up in China.
