context: At the 2020 Two Sessions closing presser, Premier Li Keqiang called for establishing Northeast Asian economic circulation. The signing of RCEP, which conjoins China, South Korea and Japan for the first time, raised hopes that the eight-year-long trilateral FTA (free trade agreement) negotiations will soon find closure. Compared to RCEP, the trilateral deal would promise more extensive tariff concessions.
Textual issues, including IP protection and tariff commitments, have been largely finalised for the trilateral FTA, according to Zhang Jifeng 张季风 Association for Studies on the Japanese Economy vice president. The only remaining issues are trade frictions between Japan and South Korea, which are rooted in historical conflict, as well as potential intervention by the Biden administration.
Currently obstacles are, however, more fundamental, according to Wei Hao 魏浩 Beijing Normal University professor. On top of US intervention, the three countries lack political trust. There are also conflicts of interest in tariff negotiations, as every country wants to protect weak sectors and expand strengths.