Japan, China, S. Korea Agree Only to Continue Talks on Investment

By Kyodo News International, Tokyo

Dec. 3–TOKYO — Japan, China and South Korea revealed gaps over plans to improve their investment environment Friday as they wrapped up their meeting in China, agreeing only to continue talking, Japanese officials said.

Government officials from the three countries, gathering in Xiamen, ended their fourth meeting for a proposed trilateral pact on investment without an accord, in effect giving up their goal that leaders of the countries agree within this year to start formal negotiations.

China showed reluctance to fully liberalize cross-border investment while Japan and South Korea pushed for it, the officials said.

The investment agreement they are working for would allow companies from one country to operate smoothly in the other two countries. The three have already concluded bilateral deals with each other.

They are seeking to establish a new framework, according to the officials, with Tokyo and Seoul claiming Beijing has failed to pledge in the bilateral agreements that it will treat Japanese and South Korean firms according to the same conditions as Chinese companies.

The three will restart intergovernmental talks as early as next year, the officials said.

The talks began after Japanese Prime Minister Junichiro Koizumi, Chinese Premier Wen Jiabao and South Korean President Roh Moo Hyun agreed in Vientiane in November 2004 to upgrade from expert- to government-level discussions on improving trade and investment environments.

They also agreed to conduct consultations to explore a legal framework for investment among the three countries in “a timely manner,” according to a joint action strategy they released then.

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