Introduction: New Frontiers of Techno-Economic Rentiership

Abstract

‘In foreign affairs, Japan is often thought of as a big country acting like a small one. Yet that is to miss the significance, range and effectiveness of Japan’s economic statecraft, in which the country not only acts its true size but also does so with much more autonomy and agency than it does in classic diplomacy. Yuka Koshino and Robert Ward shine a truly illuminating light on how Japan thinks and behaves as a geo-economic actor, whether through trade, investment, aid, rule-setting or, crucially, technology. This Adelphi book deserves to be widely read, for it adds greatly to our understanding of a much neglected and under-appreciated aspect of Japanese strategy.’ Bill Emmott, Chairman of the IISS Trustees; Chairman of the Japan Society of the UK; and author of Japan’s Far More Female Future (Oxford University Press, 2020) ‘Groundbreaking work and a penetrating analysis of the geo-economic challenges facing Japan, a frontline country in the age of US–China rivalry and economic statecraft.’ Dr Funabashi Yoichi, Chairman of Asia Pacific Initiative Geo-economic strategy – deploying economic instruments to secure foreign-policy aims and to project power – has long been a key element of statecraft. In recent years it has acquired even greater salience, given China’s growing antagonism with the United States and the willingness of both Beijing and Washington to wield economic power in their confrontation. This trend has particular significance for Japan, due to its often tense political relationship with China, which remains its largest trading partner. While Japan’s post-war geo-economic performance often failed to match its status as one of the world’s largest economies, more recently Tokyo has demonstrated increased geo-economic agency and effectiveness. In this Adelphi book, Yuka Koshino and Robert Ward draw on multiple disciplines – including economics, political economy, foreign policy and security policy – and interviews with key policymakers to examine Japan’s geo-economic power in the context of great-power competition between the US and China. They examine Japan’s previous underperformance, how Tokyo’s understanding of geo-economics has evolved and, given constraints on its national power projection, what actions Japan might feasibly take to become a more effective geo-economic actor. Their conclusions will be of direct interest not only for all those concerned with Japanese grand strategy and the Asia-Pacific, but also for those middle powers seeking to navigate great-power competition in the coming decades.