More than four million people travel between Japan and China and Japan and the ROK annually. As these figures suggest, China and the ROK are neighbors of critical importance for Japan.

   Japan and China have launched the Japan-China 21st Century Exchange Program, through which some 1,000 Chinese high school students were invited to Japan and some Japanese high school students were dispatched to China. In October, Prime Minister Abe Shinzo visited China and reached agreement with President Hu Jintao that political and economic relations comprise the two wheels of a vehicle, each of which must be put vigorously into motion, and that the two countries should build a mutually beneficial relationship based on common strategic interests through which they can work jointly towards solutions for global issues. Moreover, they announced the undertaking of the Japan-China Exchange Year of Culture and Sports 2007 and agreed to begin joint research on history, to be conducted by scholars from both nations. This research group convened for the first time in December. They also reached a shared recognition that with regard to the issue of resource development in the East China Sea, the Sea should be a place of peace, cooperation, and friendship.

   China has also begun assertive omni-directional diplomacy in order to secure a stable international environment for economic development. As part of its efforts, China held the 2006 Forum on China-Africa Cooperation in November, with many African heads of state in attendance. China is also making use of the Shanghai Cooperation Organization (SCO) to deepen its relationship with the nations of Central Asia. Japan welcomes China's approach of engagement towards solutions to the problems facing international society but urges China to act in keeping with the norms of international society with regard to its external aid and other issues.

   After visiting China, in October Prime Minister Abe went to the ROK and held talks with President Roh Moo Hyun. The leaders shared the recognition that relations between Japan and the ROK were of critical importance not only to the two countries but also to the East Asian region as a whole as well as to the international society, and they agreed to make efforts to build future-oriented friendly relations.

   Japan is continuing its efforts to strengthen its relationship with the countries of ASEAN, which play a central role in East Asian regional cooperation. In 2006, during the first three months since the establishment of the Abe administration, head of state visits took place between Japan and Vietnam, Indonesia, and the Philippines, enabling cooperation with these countries to be further reinforced. In addition, regional cooperation is also developing in East Asia. January saw the convening of the Second East Asia Summit in the Philippines and Prime Minister Abe proposed various initiatives for East Asian cooperation focused on an “Asia Gateway,” energy security, Japan-EastAsia Network of Exchange for Students and Youths (JENESYS Programme), and human resource development for peacebuilding.

   Moreover, in Asia, Japan will be promoting its new pillar of diplomacy, the creation of an “Arc of Freedom and Prosperity,” as well as working to bring about long-term stability based on shared universal values. As Japan moves forward in promoting this initiative, it will place special emphasis on cooperation with India and Australia, as countries with stable democracies within the Asia-Pacific region. Foreign Minister Aso Taro's visits to both India and Australia and the visits to Japan by Indian Prime Minister Manmohan Singh and by Australian Minister for Foreign Affairs Alexander Downer, as well as the holding of the ministerial meetings of the Trilateral Strategic Dialogue among Japan, Australia and the United States, all contributed in 2006 to creating a much closer relationship for Japan with both nations.