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Japan’s East Asian Diplomacy: Patchwork Realism and Naïve Liberalism

In: The Political Economy of Regionalism in East Asia

Author

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  • Hidetaka Yoshimatsu

    (Ritsumeikan Asia Pacific University)

Abstract

After the mid-1990s, Japanese political economy experienced significant transformations in both domestic and regional dimensions. The collapse of the bubble economy in the early 1990s ushered in a decade-long recession, and the economic systems represented by keiretsu networks suffered drastic changes. In the meantime, China, Japan’s regional rival, emerged as the world’s largest ‘manufacturing factory’, attracting foreign direct investment (FDI) from all over the world. Trade and investment networks surrounding East Asia were formed around China. While Japan still retained more than 60 per cent of total gross domestic product (GDP) in East Asia by the new millennium, its relative economic capabilities declined seriously during the 1990s.

Suggested Citation

  • Hidetaka Yoshimatsu, 2008. "Japan’s East Asian Diplomacy: Patchwork Realism and Naïve Liberalism," Palgrave Macmillan Books, in: The Political Economy of Regionalism in East Asia, chapter 8, pages 147-168, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-0-230-58419-8_9
    DOI: 10.1057/9780230584198_9
    as

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