The free trade agreement between China and Japan and South Korea is a proposed free trade agreement between China, Japan and South Korea. The free trade agreement between China and Japan and South Korea was proposed in 2002. Negotiations on the agreement were launched in 2012.  The three nations account for up to 19.6% of the world economy. The first formal discussions on this subject took place in Seoul from 26 to 28 March 2013. Further discussions took place in China and Japan during 2013 and more were planned for early 2014. Two-way trade between South Korea and China totaled $230 billion in 2013.  The current bilateral investment agreement between China and Japan came into force in 1989- relatively early. Although China and Japan have signed free trade agreements with many countries, China and Japan have not established a free trade mechanism due to external factors such as the rigidity of the U.S.-Japan alliance, U.S. strategic suspicions and volatile relations between South Korea and Japan. “We should not limit ourselves in the name of friendship between Japan and China. On the contrary, strong competition and active cooperation will be a genuine “mutually beneficial relationship based on common strategic interests.” Confucius said, “I was set at 30.” Similarly, Japan and China must now be at the forefront of the international scene and work to extend this spirit of shared utility to the rest of the world. In December 1971, the Chinese and Japanese trade liaison offices began discussing the possibility of re-establishing diplomatic trade relations, and in July 1972 Kakuei Tanaka succeeded Eisaku Sata as Japan`s new Prime Minister.
Tanaka was starting from a normalization of relations between Japan and Japan. In addition, Nixon`s visit to China in 1972 facilitated the normalization process. His visit to Beijing culminated in the signing of a joint declaration on 29 September 1972. It established diplomatic relations between Japan and the PRC. China has renounced its request for war reparations from Japan. The Japanese agreed on Taiwan`s political status. Subsequently, bilateral economic relations quickly intensified: 28 Japanese economic and trade missions and 30 Chinese economic and trade missions visited their partner countries.