15 July 2023, NIICE Commentary 8692
Ankit Kumar

In an era of Great power competition, Asia’s second-largest economy, Japan competes with China in ASEAN. Undoubtedly, China is catching up with Japan in terms of infrastructural investment through the Belt and Road initiative. But Japan has an ambitious comeback plan. Japan has been promoting a Free and Open Indo-Pacific (FOIP) Plan. It’s a plan that will transform Indochina with a series of ports, rail, roads, industrial parks and educational institutions.

According to the Japanese Ministry of Foreign Affairs, FOIP can be defined as “the further expansion of the diplomatic concepts of ‘Diplomacy that takes a panoramic perspective of the world map’ and ‘Proactive Contribution to Peace’. This was possible by treating the dynamism created by combining the two continents of Asia and Africa and the two oceans of the Pacific and Indian Oceans as a single comprehensive concept.” The following three pillars are set out as necessary to achieve the FOIP: (1) promotion and establishment of the rule of law, freedom of navigation, and free trade.; (2) pursuit of economic prosperity (improving connectivity and strengthening economic partnerships, including EPA/FTA and investment agreements); (3) commitment to peace and stability (capacity building for maritime law enforcement, humanitarian assistance and disaster relief cooperation, etc.).” The FOIP is characterised by its comprehensive approach. This includes maritime security, economy, development, and connectivity, and it presents the concept of the “Indo-Pacific” rather than the “Asia-Pacific” as its scope.

Free and Open Indo pacific Plan

Tokyo has unveiled its ambitious strategies for the Indo-Pacific region, signaling its determination to play a significant role in shaping the future of the area. The plan outlines a commitment of USD 75 billion in public and private funds for infrastructure assistance and investment in the Indo-Pacific by 2030. Although not explicitly mentioned, this initiative aligns with the Group of Seven’s (G7) “Partnership for Global Infrastructure and Investment” (PGII), which was launched last year and is currently led by Japan. Under the leadership of Prime Minister Kishida, Japan has introduced four key pillars of cooperation as part of its strategy. The first pillar emphasizes the importance of peace and prosperity, condemning any unilateral changes to the status quo through force. Japan advocates for a fair and just economic order and calls for transparent and equitable development finance. These elements form the foundation of Japan’s commitment to the rule of law and its support for the international order. The second pillar focuses on addressing challenges in the Indo-Pacific region through a cooperative approach. Japan aims to enhance resilience and sustainability in areas such as climate change, the environment, global health, and cyberspace. By prioritizing global commons issues, Japan seeks to foster cooperation among nations to tackle shared challenges. The third pillar highlights the significance of multi-layered connectivity for economic growth. Japan emphasizes the need for diverse and robust connections among countries, particularly in Southeast Asia, South Asia, and the Pacific Islands region. By expanding connectivity options, Japan aims to promote economic development and cooperation within the Indo-Pacific. Maritime security remains a key focus in the fourth pillar, but Japan also recognizes the importance of ensuring safe and stable use of the air domain. Upholding the rule of law, Japan emphasizes the protection of the weak and advocates for the prohibition of force or coercion.

Japan’s new Indo-Pacific strategy promotes diversity, inclusiveness, and openness. It aims to establish a higher moral standard compared to China’s hegemonic ambitions by rejecting exclusion and camps. Japan differentiates itself from Western countries by refusing to impose values on others. Instead, Japan advocates for rulemaking through dialogue that respects the historical and cultural diversity of each country and promotes equal partnerships among nations. Inclusivity is a crucial aspect of Japan’s approach. By supporting “free and open” measures, Japan aims to foster a peaceful international order and secure public domain through dialogue and cooperation. This approach invites engagement with diverse partners, including influential and confident countries like India, while avoiding potentially divisive terms such as “human rights” and “democracy.” Japan’s Indo-Pacific strategy reflects its vision for a rules-based order and its commitment to defending freedom and the rule of law. By emphasizing the fundamental principles of international law, Japan calls on all states, regardless of their alignment, to uphold these principles. It seeks to create a world where coercion and predation are not tolerated, even as authoritarian regimes pose challenges to the established norms.

Given its history of responsible statecraft, Japan’s call for a stable rules-based order carries weight. Prime Minister Kishida’s speech aimed to encourage middle powers to cooperate in safeguarding common norms without necessitating a choice between China and the US. Japan envisions a world where the rule of force is not the norm and is a critical stakeholder in realizing a stable international order, alongside India and other like-minded countries. By finding common ground and presenting an empathetic narrative, Japan’s new Indo-Pacific strategy seeks to bridge increasingly polarized perspectives and shape a more inclusive and cooperative future.

Japan’s infrastructure financing is an ambitious plan that will change how business is done in Indochina under the country’s signature foreign policy initiative. The free and open Indo-Pacific Japan will build two primary transport and Industrial corridors in Southeast Asia. One of the East-West Corridors aims to build a large economic block along a 1700-kilometre land route from Vietnam to Myanmar via Laos in Thailand from there access can be gained to India over the Bay of Bengal and the second one, the southern economic Corridor, assists the trade development from Ho Chi Minh City in Vietnam through Cambodia and also links to Myanmar

When it comes to infrastructure building in Southeast Asia, China’s Belt and Road initiative has gotten the most Global attention but one study reveals that when it comes to infrastructure financing. Japan actually takes the top spot. financing from Japan is backing 330 billion dollars ongoing and upcoming. construction projects across ASEAN. According to Fitch Solutions which counted funds in all member states except Brunei, the figure linked to Chinese financing is 100 billion dollars less than Japan but more than Europe and North America combined in Indochina. Japan has embarked on work in the East-West Economic Corridor and Southern Corridor as part of its free and open Indo-Pacific plan.

Geostrategic Concern

The Japanese would like a rules-based system to move forward while the United States has been public about its adversarial relationship with China. Japan has a different relationship with its neighbouring superpower. Japan is quietly but firmly challenging the BRI projects of China in ASEAN by giving a more sustainable alternative to these countries. As a result of Chinese economic coercion, Japan wants to be seen as an alternative, influencing strategic regions such as ASEAN. By enhancing hard and soft connectivity within the region, and providing options for access to the Indo-pacific region, Japan wants to develop the region economically together.

Conclusion

ASEAN is worried about the U.S.-China rivalry. It makes the Indo-Pacific very dynamic and contested by great powers. So many ASEAN countries would like to see Japan play an important role in the region. Japan is also seen by many Southeast Asian capitals as the possible economic heavyweight to balance China in this region. In addition to its financial investments, Japan is also playing a leading role in developing the rules and norms for infrastructure development in the Indo-Pacific region. In 2018, Japan launched the Blue Growth Initiative, which is a set of principles for sustainable ocean development. The Blue Growth Initiative includes a focus on infrastructure development, such as the construction of ports and fishing harbors. Japan is also a member of the Build Back Better World (B3W) initiative, which is a global infrastructure partnership launched by the United States and other countries. B3W is focused on promoting high-quality, sustainable infrastructure projects around the world. Japan’s infrastructure plan for Southeast Asia is part of a broader effort to promote a free and open Indo-Pacific region. By investing in infrastructure, Japan is helping to create a more connected, prosperous, and secure region.

Ankit Kumar is a  Research Intern at NIICE.