2 China / Mongolia, etc.

(1) China

A Situation in China

(A) Domestic Affairs

In March, the 5th session of the 13th National People's Congress (NPC) was held, and Premier Li Keqiang delivered the government work report. As a goal for 2022, he said that “We must maintain overall social stability and triumphantly welcome the Party's 20th National Congress,” and emphasized stable management of the government until the National Congress of the Communist Party of China (CPC).

The 20th National Congress of the CPC was held in October. In the Central Committee Report, Xi Jinping, General Secretary of the CPC Central Committee, highlighted three major achievements in the decade since the 18th National Congress of CPC, “We embraced the centenary of the Communist Party of China; we ushered in a new era of socialism with Chinese characteristics; and we eradicated absolute poverty and finished building a moderately prosperous society in all respects.” He then declared that the CPC will “advance the rejuvenation of the Chinese nation on all fronts through a Chinese path to modernization,” “Basically realize socialist modernization” through “substantially grow[ing] the per capita GDP to be on par with that of a mid-level developed country,” etc. by 2035, and “realize the Second Centenary Goal of building China into a great modern socialist country in all respects” by 2050. Furthermore, as future goals, the “14th Five-Year Plan” and the government policies identified in the government work report were basically followed, and stating “We will endeavor to bring prosperity to all, and prevent polarization,” emphasizing that the realization of common prosperity is a medium-term goal. Furthermore, he mentioned that China is “pursuing high-quality development” and will “promote [a] high-standard [of] opening up, and accelerate efforts to foster a new pattern of development that is focused on the domestic economy and features positive interplay between domestic and international economic flows.” He also mentioned improving the resilience and safety of industrial and supply chains, and the independence and self-reliance and strength in science and technology, strongly emphasizing economic security.

Furthermore, the first plenary session of the 20th CPC Central Committee was held the day after the CPC National Congress closed. The new central leadership of the CPC, with Xi Jinping as General Secretary, was elected, marking Xi Jinping's third term as General Secretary. Several of General Secretary Xi's former direct subordinates were also elected to the new leadership.

The international community continues to express high interest in China's human rights situation, including in the Xinjiang Uygur Autonomous Region (XUAR). Japan believes that it is important that universal values and principles of the international community, such as freedom, respect for fundamental human rights, and the rule of law, are guaranteed in China, and Japan has also taken summit meetings and Foreign Ministers' meetings as opportunities to directly communicate its position to the Government of China and express serious concern about the situations in Hong Kong, XUAR, and other regions. The Olympic and Paralympic Winter Games Beijing 2022 were held from February to March 2022. In December 2021, prior to the opening of the Games, the U.S. announced that it would not send diplomatic or official delegations because of the human rights violations in China. Australia, the UK, Canada and other nations expressed similar positions. Japanese Olympic Committee President YAMASHITA Yasuhiro and Tokyo 2020 Organizing Committee President HASHIMOTO Seiko attended the Olympic Games, and Japanese Paralympic Committee President MORI Kazuyuki attended the Paralympic Games. No governmental delegation was dispatched. In 2022, as in the previous year, at the UN Human Rights Council in June and the Third Committee of the UN General Assembly in October, joint statements expressing serious concerns about the human rights situation in China, particularly the human rights violations in the XUAR, were delivered, and Japan was the only participating country from Asia. In the National Diet of Japan, the House of Representatives in February and the House of Councillors in December adopted the Resolution regarding the serious human rights situation in Xinjiang Uighur and other areas. As for Hong Kong, the G7 issued a Foreign Ministers' Statement⁶ about the selection of the Chief Executive in May, expressing grave concern over the selection process. The Government of Japan will continue to make steady efforts while closely cooperating with the international community.

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• 6 G7 Foreign Ministers' Statement on the Hong Kong Chief Executive Selection
  https://www.mofa.go.jp/press/release/press3e_000376.html
  

(B) Economy

At the NPC in March, Premier Li Keqiang stated that the economic situation in 2022 is “facing significantly increasing risks and challenges,” and set a growth rate target of around 5.5% with a policy of “placing the highest priority on stability and pursuing progress amidst stability.” As for economic measures, he emphasized that “aggressive fiscal policies will improve effectiveness,” and proposed tax cuts and refunds of approximately 2.5 trillion CNY for the full year and the issuance of 3.65 trillion CNY in special local government bonds. However, the full-year real GDP growth rate for 2022 increased by 3.0% year on year, and by quarter, the first quarter (January to March) increased by 4.8% year on year, the second quarter (April to June) increased by 0.4% year on year, the third quarter (July to September) increased by 3.9% year on year, and the fourth quarter (October to December) increased by 2.9% year on year, all of which fell short of their targets.

From around March, sporadic lockdowns and severe curfew measures were repeatedly implemented in Shanghai City, the center of China's economic activity, and other areas as COVID-19 spread. In May, the State Council held a meeting on stabilizing the national economy, recognizing that, “Since March, and especially since April, economic indicators such as employment and mining production have clearly slowed, and in some respects, the situation is more difficult than in 2020 during the COVID-19 pandemic.” Premier Li Keqiang, stating that “We must strive to return the economy to a growth track as soon as possible,” announced that the State Council would issue workable implementation details for a package of economic support measures by the end of May and would closely track their implementation.

In response to the economic slowdown in the second quarter, General Secretary Xi Jinping stated in July at a meeting of the Political Bureau of the CPC Central Committee that the government will “maintain economic operations within a reasonable range, and strive to achieve the best possible results.” Additionally, he indicated that the government would work aggressively to increase demand so as to achieve economic recovery, with a fiscal policy in which local governments will use up to the maximum amount of local government special bonds, a monetary policy which will maintain reasonable and ample liquidity and increase lending to businesses, and guidelines to promote new lending by policy banks and the use of infrastructure construction investment funds. Furthermore, regarding the sluggish real estate market, while stating that the government will maintain its position of “houses for living in, not speculation,” the government will support real demand and demand for relocation, and will guarantee the reliable delivery of housing on the responsibility of local governments.

The Central Economic Work Conference held in December indicated that there was still hope for an economic recovery in 2023, although the foundations for an economic recovery were still not solid. It was then stated that, for economic activity in 2023, the government will maintain its policy from 2022 of “making economic stability a top priority and pursuing steady progress while ensuring economic stability,” and continuing an aggressive fiscal policy and a moderate monetary policy, thereby formulating high-quality development. Furthermore, as a priority issue the government will focus on boosting domestic demand and prioritize the recovery and expansion of consumption.

(C) Response to COVID-19

COVID-19 spread from China to the rest of the world, and in China the authorities have taken strict measures such as promptly identifying infection sources and close contacts based on the travel history of infected individuals, restricting movement in infected areas, and mass PCR testing of residents. Although the spread of COVID-19 was controlled in a relatively short period of time, since March, COVID-19 began to simultaneously spread in major Chinese cities such as Beijing, Shanghai, and Guangdong, creating the most serious situation since the lockdown of Wuhan City in Hubei Province in the early stages of the COVID-19 pandemic in 2020. In particular, the de facto lockdown in Shanghai City, which lasted for approximately two months from late March, had a tremendous impact on people's lives and economic activities. While other countries were steering their policies toward coexistence with COVID-19, China maintained its “zero-COVID” policy. At the CPC National Congress in October, General Secretary Xi Jinping stated that the Central Committee's infection prevention policies had achieved important and positive results in balancing infection control and economic and social development.

In November, the government announced 20 measures that stipulated shortening quarantine periods and curtailing excessive quarantine measures, but strict quarantine measures, including curbs on going out, continued due to the nationwide resurgence of COVID-19 infections, including in major cities such as Guangdong, Chongqing, and Beijing. Amidst this situation, protests and demonstrations against the “zero-COVID” policy, including mourning activities that were triggered by a fire that occurred in Urumqi in the XUAR in late November, broke out in Shanghai, Beijing, and other cities.

In December, China's National Health Commission, on the grounds that the COVID-19 virus had attenuated, lowered the infectious disease level for COVID-19 and announced policies such as abolishing isolation measures for infected individuals and wholesale PCR testing. As a result of the complete abolition of the “zero-COVID” policy that had been in place up until then and the rapid transition of quarantine policies in such a short period of time, there was a nationwide surge in the number of infected individuals and critically ill patients, and the medical system was temporarily strained. The World Health Organization (WHO) expressed serious concerns about this situation and requested detailed information on the state of COVID-19 infections in China.

(D) Foreign Policy

Even in 2022, for the time being, diplomacy continued with a combination of face-to-face diplomacy by Director of the Office of the Central Commission for Foreign Affairs Yang Jiechi and State Councilor and Foreign Minister Wang Yi and others, as well as by a combination of telephone calls and video teleconferences by President Xi Jinping, Premier Li Keqiang, and others. In July, Indonesian President Joko Widodo visited Beijing, and in September, President Xi Jinping visited Kazakhstan and Uzbekistan as his first foreign trip since his January 2020 visit to Myanmar, where he attended the Shanghai Cooperation Organisation (SCO) summit. After the National Congress of the CPC, China gradually resumed face-to-face diplomacy, with German Chancellor Olaf Scholz and the leaders of several other countries visiting China, and in November, Premier Li Keqiang attended the East Asia Summit (EAS) and President Xi Jinping attended the G20 Summit and the APEC Economic Leaders' Meeting, while vigorously holding bilateral meetings with the leaders of other countries.

At the 20th National Congress of the CPC that was held in October, President Xi Jinping recognized the situation, saying “At present, momentous changes of a like not seen in a century are accelerating across the world... and a significant shift is taking place in the international balance of power, presenting China with new strategic opportunities in pursuing development.” On top of that, through comments such as “The world has once again reached a crossroads in history, and its future course will be decided by all the world's peoples,” “[China] is committed to … deepening and expanding global partnerships based on equality, openness, and cooperation, ... Building a human community with a shared future is the way forward for all the world's peoples.,” and “China plays an active part in the reform and development of the global governance system... and works to make global governance fairer and more equitable.,” President Xi Jinping clearly stated that China would increase its influence on cooperative mechanisms such as BRICS and SCO, and increase the representation and voices of emerging markets and developing countries. He also indicated that China will actively participate in rule-making for global security. Its impact on China's future diplomacy will be closely watched.

Continuing on from 2021, severe confrontations between the U.S. and China were seen in a variety of fields. Channels for dialogue, including between both leaders, were basically maintained, although these channels for dialogue were restricted for a certain period when tensions between the U.S. and China increased over Speaker of the House of Representatives Nancy Pelosi's visit to Taiwan. President Biden and President Xi Jinping had telephone calls in March and July, as well as their first face-to-face meeting in November. According to a statement from the U.S. government, the meeting covered a wide range of topics over approximately three hours, including U.S.-China relations, transnational challenges, human rights, the situations in Taiwan, Ukraine, and North Korea. Furthermore, there were also multiple dialogues held between National Security Advisor Jake Sullivan and Director of the Office of the Central Commission for Foreign Affairs Yang Jiechi and between Secretary of State Blinken and State Councilor and Foreign Minister Wang Yi.

In May, Secretary of State Blinken delivered a speech entitled “The Administration's Approach to the People's Republic of China,” in which he stated that “China is the only country with both the intent to reshape the international order and, increasingly, the economic, diplomatic, military, and technological power to do it,” adding that the U.S.-China relationship is “one of the most complex and consequential relationships.” The National Security Strategy unveiled by the U.S. in October notes that the “PRC presents America's most consequential geopolitical challenge” and that “the PRC is the only competitor with both the intent to reshape the international order and the power to do it,” pointing out that “Beijing has ambitions to create an enhanced sphere of influence in the Indo-Pacific and to become the world's leading power” and adding that the U.S. will strengthen ties with its allies and take a stand against China.

At the same time, the U.S. has also indicated a policy of cooperating with China on matters of shared interests. The National Security Strategy states that, on issues such as climate change, infectious disease control, and nuclear non-proliferation, “We will always be willing to work with the PRC where our interests align” and “we intend to work together to solve issues that matter most to the people of both countries.” At the U.S.-China summit meeting in November, President Biden also emphasized the need to work together to address global challenges such as climate change, global macroeconomics including debt relief, health security, and food security, and the two leaders are said to have agreed to hold dialogues and cooperate on these issues. Stable U.S-China relations are important not only for Japan, but also for the entire international community. Japan will continue to monitor future developments.

(E) Military Affairs and Security

At the 19th CPC National Congress (2017), President Xi Jinping stated that China would transform its armed forces into a world-class military by the middle of this century. Additionally, the communique from the fifth plenary session of the 19th CPC Central Committee, published in October 2020, set the new goal of “securing the realization of the centennial goal by 2027, the 100th anniversary of the founding of the Chinese People's Liberation Army (PLA).” Furthermore, at the 20th CPC National Congress in 2022, he reiterated this point, stating that “Achieving the goals for the centenary of the People's Liberation Army in 2027 and more quickly elevating our people's armed forces to world-class standards are strategic tasks for building a modern socialist country in all respects.” China has been increasing its defense expenditures about 39-fold over the past 30 years, but the breakdown of the budget and the intention behind the increase have not been disclosed sufficiently. Under such circumstances, China, under its “Military-civilian integration strategy”, has been extensively and rapidly enhancing the quality and quantity of its military power centered on its nuclear and missile capabilities and naval and air forces, in addition, placing importance on ensuring its superiority in new domains of outer space, cyberspace, the electromagnetic spectrum, AI, and unmanned systems, and promoting the modernization of its military through “integrated development of mechanization, informatization and the application of smart technologies.” In 2022, continuing on from the previous year, Japan has confirmed movements such as navigation by Chinese naval survey vessels in Japan's territorial waters on the south of Yakushima, joint navigations by Chinese and Russian naval vessels around Japan, and joint flights by Chinese and Russian strategic bombers around Japan, and in addition, Japan has also confirmed Chinese vessels entering the contiguous zone around the Senkaku islands. Additionally, China launched multiple ballistic missiles in August, five of which landed in Japan's exclusive economic zone (EEZ). In the South China Sea, China has continued and strengthened its actions to unilaterally change the status quo by force and increase regional tensions against the rule of law and openness, such as with further militarization of disputed features.

In recent years, China has grown to have a great influence on the international community, not only politically and economically, but also militarily. China's current external stance and military activities are a matter of serious concern to Japan and the international community. It is unprecedented and represents the greatest strategic challenge to ensuring the peace and security of Japan and the peace and stability of the international community, as well as to strengthening the international order based on the rule of law, to which Japan should respond with its comprehensive national power and in cooperation with its allies, like-minded countries and others. With regard to China's rapid strengthening of its military capabilities and expansion of military activities, Japan will strongly encourage China to improve transparency and to cooperate constructively with international efforts for arms control, disarmament and other such efforts, in cooperation with its allies, like minded countries and others. Furthermore, in order to nurture a relationship of trust between China and Japan, Japan will enhance communication with China in the security field, including through dialogues and exchanges such as the Japan-China Security Dialogue. Additionally, Japan will promote efforts between Japan and China, including the establishment of frameworks to avoid and prevent unforeseen situations with China, such as the Maritime and Aerial Communication Mechanism between the Japanese and Chinese defense authorities. In this way, Japan, in cooperation with related countries, intends to strongly urge China to improve its transparency to dispel the concerns of the international community, including Japan, while further promoting mutual trust in Japan-China relations.

B Japan-China Relations

(A) Bilateral Relations: General

The relations with neighboring China are one of Japan's most important bilateral relations, and the two countries have close economic ties and people-to-people and cultural exchanges. While there are various possibilities between Japan and China, there are a number of challenges and concerns, including unilateral attempts to change the status quo by force or coercion in the East China Sea and South China Sea as well as the situation surrounding the Senkaku Islands, a series of military activities around Taiwan, which in particular, includes the landing of ballistic missiles within the waters near Japan including its EEZ. Peace and stability across the Taiwan Strait is also important. Furthermore, Japan is seriously concerned about the situation in Hong Kong and the human rights situation in the XUAR. At the same time, both Japan and China have a great responsibility for the peace and prosperity of the region and international community. Japan will firmly maintain and assert its position, and strongly request responsible actions by China, while at the same time continuing dialogue including on issues of concern and cooperating on matters of common interest. It is important that both China and Japan make efforts to build such constructive and stable relations.

Continuing on from the previous year, in 2022, high-level communication, including between leaders, was continuously conducted. Japan and China exchanged opinions on a wide range of topics, from bilateral relations to regional and international affairs, including on a variety of issues between the two countries.

On May 18, a video conference was held between Foreign Minister Hayashi and State Councilor and Foreign Minister Wang Yi. Foreign Minister Hayashi stated that the two sides must strive to realize their important shared vision for a constructive and stable relationship which was agreed upon at the Japan-China summit telephone call in October 2021, and State Councilor and Foreign Minister Wang concurred. Foreign Minister Hayashi, noting the difficulties Japan-China relations are facing and the extremely severe public opinion in Japan toward China, stated that both sides need to say what needs to be said while continuing dialogues and to cooperate in appropriate ways in areas needing cooperation, and that each side needs to fulfil their responsibilities to the international society. Foreign Minister Hayashi also expressed serious concern over the situations in the East China Sea, including the situation surrounding the Senkaku Islands, as well as the South China Sea, Hong Kong, and the XUAR, and stated the importance of peace and stability in the Taiwan Strait. Furthermore, Foreign Minister Hayashi reiterated the position of the Government of Japan regarding the temporary detention of a Japanese diplomat and the detention of Japanese nationals in China. Furthermore, Foreign Minister Hayashi strongly called for the prompt removal of import restrictions on Japanese food products. Both Ministers confirmed that they will promote dialogue and cooperation related to Japan-China economic relations in a variety of areas and at a variety of levels in an appropriate manner and stressed the importance of pushing forward people-to-people and economic exchanges between the two countries through efforts on both sides. Amidst the various impacts of COVID-19, Foreign Minister Hayashi requested that China take appropriate measures including those to ensure the safety of Japanese residents and to protect the legitimate economic activities of Japanese companies. As for regional situations, regarding the situation over Ukraine, Foreign Minister Hayashi called on China to play a responsible role to maintain international peace and security, noting that Russia's aggression against Ukraine constitutes a clear violation of international law, including the United Nations Charter. Regarding North Korea, the two Ministers exchanged views on the recent situation. Foreign Minister Hayashi stated that the international community must make concerted efforts to realize denuclearization, and the two Ministers confirmed that they will continue to coordinate closely including on understanding and support toward the early resolution of the abductions issue.

On September 28, Chief Cabinet Secretary MATSUNO Hirokazu received a courtesy call from Mr. Wan Gang, Vice Chairman of the Chinese People's Political Consultative Conference National Committee, who was visiting Japan to attend the state funeral of the late Prime Minister ABE Shinzo, and Chief Cabinet Secretary Matsuno expressed his gratitude to Vice Chairman Wan for his visit to Japan to attend the state funeral of former Prime Minister Abe Shinzo. In response, Vice Chairman Wan stated that his attendance was on behalf of the Chinese government and that he wished to once again express his heartfelt condolences. He also stated that his visit to Japan indicated the importance the Chinese side attaches to Japan-China relations, as well as to the Kishida administration. The two sides shared the recognition that on the occasion of the 50th anniversary of the normalization of diplomatic relations between Japan and China in 2022, it is important that both sides strive to realize their shared vision for “building a constructive and stable relationship” which was agreed between the leaders of the two countries.

On November 17, Prime Minister Kishida, who was on a visit to Thailand to attend APEC-related Summit Meetings, held his first face-to-face Summit Meeting with President Xi Jinping. Prime Minister Kishida referred to the telephone summit call in October 2021 when the two leaders agreed on a broad direction of establishing a “constructive and stable Japan-China relationship.” Prime Minister Kishida also said that as Japan and China marked the 50th anniversary of the normalization of diplomatic relations, bilateral exchanges are steadily recovering, despite the impact of the spread of a new COVID-19 variant. Prime Minister Kishida went on to state that, while Japan-China relations face many challenges and issues as well as various possibilities for cooperation, both countries have huge responsibilities for the peace and prosperity of the region as well as the international community, and that, for these challenges and issues the two countries face, both sides should accelerate their efforts to build a “constructive and stable Japan-China relationship,” where both sides engage in candid dialogue, act together as responsible nations on international challenges, and cooperate on common issues. President Xi Jinping stated that Japan-China relations have a wide range of common interests as well as possibilities for cooperation and that the importance of Japan-China relations will not change. President Xi Jinping went on to express his desire to work with Prime Minister Kishida to build a Japan-China relationship that is commensurate with the demands of the new era. Prime Minister Kishida expressed grave concern about the situation in the East China Sea, including the situation surrounding the Senkaku Islands, as well as about military activities by China around Japan, such as the landing ballistic missiles within the waters near Japan including its EEZ in August 2022. At the same time, the two leaders agreed on the early launch of a hotline under the Maritime and Aerial Communication Mechanism between the Japan-China defense authorities, as well as the strengthening of communication through the Japan-China Security Dialogue and other channels. Prime Minister Kishida reiterated the importance of peace and stability across the Taiwan Strait, once again called on China to respond to Japan's position on human rights and the detention of Japanese nationals, and strongly called for the prompt lifting of import restrictions on Japanese food products. Prime Minister Kishida expressed his expectation that China will make positive contributions to the international community under established international rules. The two leaders shared the view that mutually beneficial cooperation is possible in the specific areas of economy and people-to-people exchanges, and agreed that they will encourage cooperation in areas such as the green economy, including environment and energy conservation, as well as medical care, nursing care and healthcare. At the same time, Prime Minister Kishida stated that it is important that China guarantees the legitimate business activities of Japanese companies by ensuring a transparent, predictable, and fair business environment. The two leaders also agreed to revitalize bilateral people-to-people exchanges, including between the youth who will lead the future of the two countries. The two leaders agreed to hold the Japan-China High-Level Economic Dialogue and the Japan-China High-Level People-to-People and Cultural Exchange Dialogue at an early date. Prime Minister Kishida stressed the need for both countries to act as responsible nations under the global rules on international issues, such as climate change and development finance. Regarding the situation over Ukraine, Prime Minister Kishida called on China to play a responsible role in maintaining international peace and security. Furthermore, the two leaders shared the concern that Russia's indication of the use of nuclear weapons in Ukraine is extremely alarming, and agreed on the view that nuclear weapons must never be used and that nuclear war must never be waged. Regarding North Korea, Prime Minister Kishida expressed his expectation that China will fulfill its role, including in the UN Security Council, while referring to his serious concern about North Korea's increased nuclear and missile activities. He also requested understanding and support toward the immediate resolution of the abductions issue and the two leaders confirmed that they would continue to work closely together on this issue. Finally, the two leaders agreed to maintain close communications at all levels including at the leaders' level.

Furthermore, even amidst the COVID-19 pandemic, in November the Japan-China High-Level Consultation on Maritime Affairs was held, and Japan and China continued to exchange their views, such as on a variety of issues related to the East China Sea and other areas.

In addition, on the occasion of the IISS Shangri-La Dialogue on June 12, a face-to-face Japan-China Minister of Defense Meeting was held between Defense Minister KISHI Nobuo and State Councilor and Defense Minister Wei Fenghe.

On February 21, a member of the Japanese Embassy in China was temporarily detained by the Chinese authorities against the person's will in Beijing. This case is a clear violation of the Vienna Convention on diplomatic relations and is inadmissible and completely unacceptable, and, as such, Japan lodged a severe protest with China, and strongly requested an apology and measures to prevent a recurrence.

(B) Japan-China Economic Relations

Economic relations between Japan and China, including trade and investment, are very close. The global spread of COVID-19 has had a major impact on Japan-China economic relations since 2020, and travel between Japan and China continues to be significantly restricted. However, even under such circumstances, economic activities between Japan and China in 2022 showed a greater recovery than in the previous year, and the total trade between Japan and China (excluding Hong Kong) amounted to about 43.8 trillion yen in 2022 (14.3% increase year on year), and China has been the largest trading partner for Japan for 16 consecutive years. Moreover, according to Chinese statistics, Japan's direct investment in China was about 3.913 billion US dollars (16.0% increase year on year, as estimated from officially published information on investment) in 2021. Japan ranks third in terms of the amount of direct investment to China (Singapore ranks first, the ROK second, the U.S. fourth, and Germany fifth).

Economic dialogue between Japan and China continued, even as visits, including at high levels, were restricted due to the spread of COVID-19. At the Japan-China Foreign Ministers' Video Conference held in May, both Ministers confirmed to promote dialogue and cooperation related to Japan-China economic relations in a variety of areas and at a variety of levels in an appropriate manner, and stressed the importance of pushing forward the people-to-people and economic exchanges between the two countries through efforts on both sides. At the Japan-China Summit Meeting held in November, the two leaders shared the view that mutually beneficial cooperation is possible in specific areas of economy and exchanges of people, and agreed that they will encourage cooperation in areas such as green economy including environment and energy conservation, as well as medical care, nursing care and healthcare. Additionally, as private-sector level economic exchanges, in September Premier Li Keqiang held a high-level online dialogue with the Japanese business community, and in November the eighth Japan-China Business Leader and Former High-Level Government Official Dialogue (Japan-China CEO Summit) was held online.

(C) Promotion of Mutual Understanding Between Japanese and Chinese People

(Current situation of people-to-people exchanges between Japan and China)

Since November 2020, China has restricted the scope of visa applications to business people who have already obtained a letter of invitation issued by a local government, but from June 2022, a letter of invitation was no longer required for visa applications. Since August, border measures have gradually been eased, such as resuming the issuance of long-term study visa. However, China is not allowing the new entry of foreign nationals for the purpose of tourism or short-term study in China, and strict border measures, such as continuing quarantine measures after entering China, are still in place (as of the end of January 2023).

The number of visitors to Japan from China was approximately 189,000 in 2022 (as of the end of February 2023, provisional value from the Japan National Tourism Organization (JNTO)). Although this value has significantly grown when compared to the previous year (finalized value from JNTO), the flow of people between Japan and China has not yet fully recovered to pre-COVID-19 levels.

(Exchanges in various fields)

2022 marks the 50th anniversary of the normalization of Japan-China relations, and in cooperation with the 50th Anniversary of the Normalization of Japan-China relations Executive Committee for Promotion of Japan-China Exchange chaired by KEIDANREN (Japan Business Federation) Chairman TOKURA Masakazu, more than 220 exchange projects were certified for the 50th anniversary in a variety of fields such as cultural, economic, educational, tourism, and local areas. These exchanges were held in person between Japan and China, as well as through online formats. On September 29th, the actual day of the 50th anniversary, a commemorative reception hosted by the 50th Anniversary Executive Committee was held in Tokyo, where messages commemorating the 50th anniversary exchanged between Prime Minister Kishida and President Xi Jinping were introduced. On the same day, a commemorative reception was also held in Beijing by the Chinese People's Association for Friendship with Foreign Countries and the China-Japan Friendship Association.

As for Japan-China youth exchanges, in 2022, as in 2021, even though face-to-face exchange projects could not be implemented due to cross-border travel restrictions caused by COVID-19, youth exchanges such as the “JENESYS” Friendship Ties Program were achieved online, for the purpose of promoting mutual understanding and understanding of Japan between students and researchers from both countries.

(D) Specific Pending Issues

(Situation Surrounding the East China Sea)

In the East China Sea, China Coast Guard vessels continue to intrude into the Japanese territorial sea around the Senkaku Islands. The Chinese military has also been rapidly expanding and increasing its activities in quality and quantity at sea and in the airspace over the East China Sea.

The Senkaku Islands are indisputably an inherent territory of Japan in light of historical facts and based upon international law. Indeed, the Senkaku Islands are under the valid control of Japan. Thus, there exists no issue of territorial sovereignty to be resolved concerning the Senkaku Islands. From 1895, when the Senkaku Islands were incorporated into Japanese territory by lawful means under international law, until the 1970s, when the islands became the focus of attention after it was suggested that there might be oil reserves in the East China Sea, China had not raised any objections to Japan's sovereignty over the Senkaku Islands. Moreover, China has never explained why it had not expressed objections until then. Subsequently, in 2008, Marine Surveillance vessels first intruded into Japanese territorial sea surrounding the Senkaku Islands.⁷ During 2022, 28 incidents were recorded in which China Coast Guard vessels intruded into the Japanese territorial sea surrounding the Senkaku Islands (the numbers were 34 in 2021 and 24 in 2020). Since May 2020, Chinese Coast Guard vessels have intruded into the Japanese territorial sea of the Senkaku Islands and there have been incidents in which China Coast Guard vessels frequently attempt to approach Japanese fishing boats in those waters. The number of confirmed days in 2022 in which China Coast Guard vessels navigated in the contiguous zone around the Senkaku Islands reached a record high of 336 days, and the situation remains severe, as evidenced by an incident in December 2022 in which an intrusion into Japan's territorial sea lasted more than 72 hours, the longest ever recorded. The activities of the China Coast Guard vessels, which make their own assertions in Japan's territorial sea around the Senkaku Islands, are in violation of international law to begin with, and, in response to China's such unilateral attempts to change the status quo by force, through diplomatic routes the Government of Japan has repeatedly lodged strong protests, has called for the prompt withdrawal of Chinese vessels from Japan's territorial waters, and has demanded that such incidents be prevented from reoccurring. With the determination to defend Japan's territory as well as territorial sea and airspace, Japan will continue to take a calm and resolute approach to the situation.

Additionally, in June 2020, the “Law of the People's Republic of China on the People's Armed Police Force,” which regulates the authority and duties of the People's Armed Police Force, was amended and “protection of interests at sea and law enforcement” was stipulated as a duty of the People's Armed Police Force. The Government of China is proceeding with the development of legal systems for securing maritime rights and protecting interests, such as by enacting, in February 2021, the “Coast Guard Law of the People's Republic of China,” which stipulated enforcement of the Maritime Rights and Interests Protection Act as a duty of the China Coast Guard. In particular, the China Coast Guard Law contains provisions that have problems from the viewpoint of consistency with international law, such as ambiguities in the maritime areas where it can be applied and in the authority to use weapons. Japan believes that the China Coast Guard Law should not undermine the legitimate interests of relevant countries, including Japan, and is conveying these serious concerns to China. Japan will continue to pay close attention to trends related to legislation in China.

Chinese naval vessels and aircraft have also been accelerating their activities in the sea and airspace around Japan, including in the East China Sea. In 2022, continuing on from the previous year, Japan confirmed multiple instances in which Chinese Navy survey ships navigated in Japanese territorial waters south of Yakushima. Joint flights by Chinese and Russian strategic bombers were confirmed in May and November, and continuing on from the previous year, joint navigation by Chinese and Russian vessels was confirmed in September. In July, a Chinese naval vessel entered the contiguous zone around the Senkaku Islands. Based on past movements of Chinese naval vessels in the waters surrounding Japan, the Government of Japan has strong concerns about the navigation of Chinese naval vessels in Japanese territorial waters. Furthermore, because the joint actions of Chinese and Russian militaries in the vicinity of Japan are a serious concern for Japan's security, Japan has appropriately communicated Japan's position to the Chinese side regarding each incident.

In August, in a series of military activities around Taiwan, China launched multiple ballistic missiles, five of which landed within Japan's EEZ. This series of military activities by China is a serious issue that concerns the security of Japan and the safety of its people, and seriously affects the peace and stability of the region and the international community. This is a matter of serious concern, and the Government of Japan strongly condemned and protested against the actions taken by China.

Chinese aircraft activity, including by unmanned aerial vehicles, continues to occur, and the number of times the Air Self-Defense Force had to scramble jets in response to Chinese military aircraft since autumn 2012 has remained high. In response to these recent activities by the Chinese military, Japan has been raising the issues through diplomatic routes.

China has been continuing its unilateral activities to develop natural resources while the EEZ and the continental shelf between Japan and China in the East China Sea remain pending delimitation. In addition to the four structures built by the Chinese side prior to the “2008 Agreement,” the Government of Japan has confirmed 12 new structures built between June 2013 and May 2016 that are west of the geographical equidistance line. Moreover, since May 2022, two new structures have been installed, and Japan has confirmed that a total of 18 structures have been installed in 16 locations so far (at two of the 16 locations, two structures have been integrated into a single structure). Such unilateral development activities are extremely regrettable, and every time such moves by China are detected, Japan has strongly requested China to cease its unilateral development and to immediately resume negotiations for the conclusion of international agreements based on the implementation of the “2008 Agreement” regarding the cooperation between Japan and China on the development of natural resources in the East China Sea. At the summit meeting between Prime Minister Abe and President Xi Jinping in June 2019, the two leaders shared the view of promoting and implementing the “2008 Agreement” regarding resource development in order to achieve the goal of making the East China Sea a “Sea of Peace, Cooperation and Friendship.”

In recent years numerous activities by China to carry out maritime scientific surveys in the waters around Japan, including in Japan's EEZ in the East China Sea, without obtaining Japan's approval, have also continued, and each time this happens Japan raises objections with the Chinese side through diplomatic routes.

In order to deal with these concerns appropriately, both Japan and China have been promoting dialogue and exchanges between the authorities concerned. Additionally, the Maritime and Aerial Communication Mechanism was concluded during the visit to Japan by Premier Li Keqiang in May 2018, and in June 2018 the defense authorities of Japan and China began operation of the Mechanism, which is highly significant for promoting mutual understanding between both countries and avoiding and preventing accidental collisions. At the Japan-China Summit Meeting in November 2022, it was agreed that the “hotline between the defense authorities of Japan and China” under this mechanism would be put into operation as soon as possible, and work is underway to establish it (as of the end of January 2023). Furthermore, the Japan-China Maritime Search and Rescue (SAR) Agreement was signed during Prime Minister Abe's visit to China in October 2018, which creates a legal framework regarding Japan-China cooperation for the maritime search and rescue field, and it enables smoother and more efficient search and rescue activities.

As Japan has stated on repeated occasions, including at Japan-China Summit Meetings, true improvement in Japan-China relations cannot be achieved without stability in the East China Sea. It is highly meaningful from the perspective of building trust and bolstering cooperation for diplomats from both countries to directly and frankly exchange opinions, such as at the Japan-China High-Level Consultation on Maritime Affairs or other discussions between related authorities of both countries. The Government of Japan will assert Japan's position on individual issues through steady dialogue and continued bolstering of communication.

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• 7 Ministry of Foreign Affairs website detailing the position of the Government of Japan on the Senkaku Islands:
  https://www.mofa.go.jp/region/asia-paci/senkaku/index.html
  

(Yamato Bank)

In the waters around the Yamato Bank in the Sea of Japan, the number of warnings to Chinese fishing vessels to leave is on the decline, but illegal fishing by Chinese fishing vessels was still confirmed in 2022. Utilizing opportunities such as Japan-China High-Level Consultation on Maritime Affairs, Japan has, at various levels, repeatedly conveyed its concerns and has strongly urged China to take effective steps, including strengthening measures such as providing guidance to those engaged in fishing.

(Japanese Food Import Restrictions Issue)

Regarding the import restrictions placed on food and agricultural products from Japan by China, Japan continues to strongly push at all levels for the removal of these restrictions, including at the Japan-China Foreign Ministers' Video Conference in May between Foreign Minister Hayashi and State Councilor and Foreign Minister Wang Yi, and at the Japan-China Summit Meeting in November between Prime Minister Kishida and President Xi Jinping. Japan will continue to take every opportunity to urge the Chinese side for the prompt removal of these restrictions.

(Cases of Detainment of Japanese Nationals)

In regard to successive cases of detainment of Japanese nationals, the Government of Japan has urged early release of Japanese detainees on various occasions between Japan and China, including summit and Foreign Ministers' meetings, and, so far, five Japanese nationals have been released before prosecution and three Japanese nationals have returned to Japan after serving their sentences. In addition to these individuals, three more individuals have returned to Japan after serving their sentences, in October 2022, December 2022, and January 2023, respectively. The Government of Japan has been strongly requesting, at all levels and at every occasion, that the Government of China provide early releases, transparency in law enforcement and judicial processes, and proper safeguards for the rights of Japanese nationals, as well as ensuring impartial justice and humane treatment. Additionally, from the perspective of protecting Japanese nationals, the Government of Japan is providing as much support as possible, including consular visits and contact with family members.

(Overseas Chinese Police Outposts)

In September and December, Spanish NGO Safeguard Defenders released a report stating that regional police authorities in China had established outposts called “service stations” in more than 50 countries, including Japan, and pointed out the possibility that these outposts were being used to strengthen crackdowns outside of China and to monitor and threaten overseas Chinese nationals. With regard to this matter, Japan lodged a protest to China through diplomatic channels, stating that it would be absolutely unacceptable if activities that infringe upon Japan's sovereignty are taking place. Japan will continue to cooperate with relevant ministries and agencies, as well as with the G7 and other relevant countries, and strive to collect and analyze information, and take appropriate measures.

(Abandoned Chemical Weapons Issue)

The Government of Japan, in accordance with the Chemical Weapons Convention (CWC), has been working on the destruction of chemical weapons abandoned by Japan in China. In 2022, amidst the impacts of COVID-19, Japan carried out projects such as the destruction of chemical weapons in Haerbaling District in Dunhua, Jilin Province and field surveys for and excavation/collection of abandoned chemical weapons shells in various parts of China (as of December, approximately 60,000 abandoned chemical weapons have been destroyed).

(2) Taiwan

A Domestic Affairs and Economy

From the end of March when the outbreak of the Omicron COVID-19 variant caused a significant increase in community transmission of COVID-19, Taiwan gradually shifted to a “with-COVID-19” policy, and from September 29, visa exemption measures were fully resumed, including for Japan.

On November 26, Taiwan's quadrennial local elections were held, and in addition to the opposition Kuomintang (KMT) maintaining control of numerous local leader positions, the KMT also secured major victories by recapturing major special municipalities, and the ruling Democratic Progressive Party (DPP) suffered a heavy defeat in which its number of local leader positions was reduced. Following the election results, President Tsai Ing-wen resigned as Chair of the DPP.

Taiwan's economy in 2022 is forecast to have real annual GDP growth of plus 2.43% against a backdrop of continued growth in external demand, centered around semiconductors and other IT products, as well as a gradual recovery in private consumption.

B Cross-strait Relations and External Relations

From August 2 to 3, U.S. Speaker of the House of Representatives Nancy Pelosi visited Taiwan, met with President Tsai Ing-wen, and held a joint press conference with her. China announced on August 2 that it would hold military exercises, including live-fire exercises, around Taiwan from August 4 to 7. On August 4, multiple ballistic missiles landed in the waters near Japan including its EEZ, and numerous Chinese military aircraft flew over the Taiwan Strait median line on consecutive days. During this time, the websites of public institutions in Taiwan were hit by cyberattacks, and Foreign Minister Jaushieh Joseph Wu said that the cyberattacks were confirmed to have originated from Chinese and Russian IP addresses. China also temporarily suspended imports of Taiwanese citrus fruits and other products from August 3, and announced economic sanctions against “Taiwan independence elements” on August 16.

On August 4, the G7 issued an urgent Foreign Ministers' Statement⁸ calling on China not to unilaterally change the status quo by force, and Japan urged China to immediately suspend its military exercises. That evening, President Tsai Ing-wen stated to the international community that Taiwan is committed to maintaining the status quo of peace and stability across the Taiwan Strait, that peace across the Taiwan Strait is a joint regional responsibility, and that Taiwan is open to constructive dialogue.

On August 10, China announced its third white paper on Taiwan entitled “The Taiwan Question and China's Reunification in the New Era,” which followed the 1993 and 2000 white papers on Taiwan by the Government of China, with the new white paper stating that “the Taiwan authorities, led by DPP, have redoubled their efforts to divide the country.” At the CPC National Congress in October, General Secretary Xi Jinping stated in his report that “We will continue to strive for peaceful reunification with the greatest sincerity and the utmost effort, but we will never promise to renounce the use of force, and we reserve the option of taking all measures necessary.”

Active visits to Taiwan by parliamentarians and legislators, etc. from various countries' legislatures have continued, including by parliamentarians and legislators from Japan, the U.S., European countries, as well as from Indonesia and Ukraine.

Taiwan was an observer at the World Health Organization (WHO) General Assembly from 2009 to 2016, but has not been able to participate since 2017. Japan has consistently asserted that there should be no geographical gap in responding to international health issues. From this perspective, Japan has consistently supported Taiwan's participation as an observer to the WHO General Assembly.

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• 8 G7 Foreign Ministers' Statement on Preserving Peace and Stability Across the Taiwan Strait
  https://www.mofa.go.jp/press/release/press3e_000433.html
  

C Japan-Taiwan Relations

In December 2022, the Japan-Taiwan Exchange Association and the Taiwan-Japan Relations Association, which are private-sector contact organizations between Japan and Taiwan, celebrated their 50th anniversary. For Japan, Taiwan is an extremely crucial partner and an important friend, with which it shares fundamental values and principles such as freedom, democracy, basic human rights and the rule of law, and enjoys close economic relations and people-to-people exchanges. The relations between Japan and Taiwan are maintained on the basis of working relations at the non-governmental level in accordance with the 1972 Joint Communiqué between Japan and China. The sentiments of Japanese and Taiwanese citizens toward each other are generally favorable. In a survey conducted in January 2022 by the Japan-Taiwan Exchange Association, 77% of Taiwanese respondents said they “felt close to Japan” or “relatively felt close to Japan,” and, according to a survey conducted in November 2021 by the Taipei Economic and Cultural Representative Office in Japan, 76% of Japanese respondents said that they “felt close to Taiwan” or “relatively felt close to Taiwan.”

On February 21, Taiwan eased the import restrictions that it had imposed after the Great East Japan Earthquake on agricultural and marine products and foods produced or processed in Fukushima, Gunma, Tochigi, Ibaraki, and Chiba prefectures. Japan will continue to persistently urge Taiwan to lift the remaining import restrictions as soon as possible based on scientific evidence.

In March, the Japan-Taiwan Exchange Association and the Taiwan-Japan Relations Association signed a Memorandum of Understanding on Food Safety and Food Imports, bringing the total number of agreements between the two associations to 59.

In September, Taiwan-Japan Relations Association Chairman Su Jia-chyuan, former legislative speaker Wang Jin-pyng, and Taipei Economic and Cultural Representative Office in Japan representative Frank CT Hsieh from Taiwan attended the state funeral for the late Prime Minister ABE Shinzo.

(3) Mongolia

A Domestic Affairs

At the end of 2021, the Oyun-Erdene Administration made efforts toward realizing the “New Recovery Policy” it announced in late 2021, which is for economic self-reliance after COVID-19 (policies aimed at recovery of border ports, energy, industry, urban and rural development, green development, and public sector efficiency).

In March, the Government of Mongolia practically abolished quarantine measures against individuals entering Mongolia, and greatly eased infection control measures and restrictions in the country.

In August, following a ruling of unconstitutionality by the Constitutional Court of Mongolia that invalidated a provision in the 2020 constitutional amendment that restricted the number of State Great Hural (Parliament of Mongolia) members who could serve as Cabinet Ministers (the provision stipulated that no more than four State Great Hural members, in addition to the Prime Minister, could serve as Cabinet Ministers), the Cabinet was reshuffled and a number of State Great Hural members were appointed as Cabinet Ministers (Foreign Minister B. Battsetseg, who is not a member of the State Great Hural, remains as a Cabinet minister).

In order to contribute to solving the problem of climate change, President U. Khurelsukh vigorously promoted the “One Billion Trees” initiative, which he announced at the General Debate of the UN General Assembly in 2021. Also, he encouraged efforts to improve domestic food self-sufficiency, in response to recent sharp rises in the prices of daily necessities, including food, due to external factors.

B Foreign Policy

Mongolia, which is dependent on China and Russia for its economy and energy, has been seeking to maintain relations with both neighboring countries as well as to further strengthen ties with “third neighbors” in the wake of Russia's aggression against Ukraine. Starting with Foreign Minister Hayashi's visit to Mongolia from late April to early May, numerous foreign dignitaries have visited Mongolia, including Foreign Minister of Russia Sergei Lavrov (July), State Councilor and Foreign Minister of China Wang Yi (August), UN Secretary-General António Guterres (August), and Foreign Minister of Republic of Korea Park Jin. Furthermore, when President Khurelsukh attended the Shanghai Cooperation Organisation (SCO) summit in September, he held a trilateral meeting with the leaders of China and Russia, and also held meetings with the leaders of other participating countries. Prime Minister L. Oyun-Erdene also actively visited other countries, including Singapore, Russia, and Germany.

C Economy

China had closed the major border checkpoints between Mongolia and China since November 2021 in order to prevent the spread of COVID-19, and border restrictions had been prolonged even into 2022 (the border restrictions were relaxed in May 2022), which caused trade with China to stagnate as well as soaring import prices. In addition to this, due to factors such as external shocks (stagnant trade with Russia and Europe, and soaring prices) caused by Russia's aggression against Ukraine, Mongolia's growth rate in 2022 is expected to be 3.71% (forecast as of September 2022). On the other hand, domestic demand was revitalized with the relaxation of domestic COVID-19 restrictions from February. According to government economic statistics for 2022, exports increased by 35.7% and imports increased by 27.2% year on year. In the statistics for September, Mongolia recorded a 25.4% increase in tax revenue and a 52.0% increase in industrial production.

D Japan-Mongolia Relations

The year of 2022, the 50th anniversary of the establishment of diplomatic relations between Japan and Mongolia, turned out to be a year with various events including visits by dignitaries of the two countries, dialogues and cooperation, and other exchanges, in order to overcome the COVID-19 pandemic and make it a year of restoration of people-to-people exchanges, as well as to make it a year to look back on the past 50 years and create the foundation and bonds for the next 50 years.

From late April to early May, Foreign Minister Hayashi visited Mongolia, held a Japan-Mongolia Foreign Ministers' Meeting, paid a courtesy call to the President and Prime Minister, and exchanged views on bilateral relations and regional situations including on Ukraine and North Korea. Then, Prime Minister Oyun-Erdene, Foreign Minister Battsetseg, and Minister of Energy B. Chojilsuren attended the state funeral for the late Prime Minister ABE Shinzo in September, and a Summit Meeting with Prime Minister Kishida and a working lunch with Foreign Minister Hayashi were held. Furthermore, in November President Khurelsukh made an official visit to Japan, held a Japan-Mongolia Summit Meeting with Prime Minister Kishida, and Japan and Mongolia announced that they would upgrade their relationship to a “special strategic partnership for peace and prosperity,” and released a joint statement, and the annex to the joint statement outlining the content of the cooperation that the two countries will undertake over the next 10 years.

In 2022, a variety of projects to commemorate the 50th anniversary of the establishment of diplomatic relations between Japan and Mongolia, as well as youth exchange promotion projects, were implemented in both countries throughout the year. As part of this, in late August, the 50th Anniversary Delegation headed by HAYASHI Motoo, Chairman of the 50th Anniversary Executive Committee for the Establishment of Diplomatic Relations, visited Mongolia and, in addition to meeting with dignitaries such as the President, Chairman of the State Great Hural, and Prime Minister, they participated in “Ikh Khuraldai,” symposium that was organized by private organizations, and the “White Road” dance festival held in Sukhbaatar Square. Also, from July to September, the Ministry of Foreign Affairs of Japan hosted the Japan-Mongolia Student Forum (three-day online study session and two-night, three-day exchange camp), where students from both countries deepened mutual understanding and exchanges.