CNN.com - Asia's business-politics divide - Nov 14, 2005

CNN.com - Asia's business-politics divide - Nov 14, 2005Asia's business-politics divide
Despite differences, economic integration intensifies in Asia

BUSAN, South Korea (AP) -- Having outraged neighboring nations with a visit last month to a war memorial, Japan's leader shouldn't count on gushes of cordiality from some participants at a meeting of leaders from the Asia-Pacific region.

Although sideline meetings between leaders are standard fare at the annual Asia-Pacific Economic Cooperation summit, Prime Minister Junichiro Koizumi isn't expected to meet with Chinese President Hu Jintao at this week's summit in Busan, South Korea.

Koizumi's visits to Yasukuni Shrine, which honors Japanese war criminals along with the nation's 2.5 million war dead, are an intensely emotional issue for China, South Korea and other Asian nations that suffered atrocities before and during World War II by Japanese soldiers. Beijing has already canceled a planned visit by Japan's foreign minister.

South Korean President Roh Moo-hyun said last week he'd be willing to meet Koizumi, reversing earlier comments by Roh's office that such a meeting wasn't in the works. The short session set for Friday is likely to include criticism of Koizumi's shrine visit.

South Korean Foreign Minister Ban Ki-moon and his Japanese counterpart Taro Aso exchanged "frank opinions" on the shrine visits and other topics during brief talks Monday on the sidelines of the APEC meetings.

Some analysts say Asian nations have historically followed a merchant mentality where business interests override political differences -- and the business ties are blossoming at an explosive rate. Japan's trade with the 21 APEC member economies makes up nearly three-fourths of its global trade, comprising 68 percent of imports and 75 percent of exports.

Katsumi Nakamura, president of Dongfeng Motor Co., Nissan Motor Co.'s joint venture in China, said Koizumi's shrine visit hasn't affected the company. Nissan is planning to sell 410,000 vehicles this year in China, as Japanese car brands win popularity among China's growing middle class.

"Political problems will be solved in the political arena," Nakamura told reporters recently. "Chinese people are polite, and they aren't going to show any bad feelings."

The classic Asian case of working together while bickering over politics is China's relations with Taiwan. China considers Taiwan part of its territory and has been pressing for reunification since their 1949 split, but that hasn't stopped booming business relations.

Despite their deep differences, top officials from China and Taiwan each take a seat at APEC's table. The 21-member group discusses trade, security and other issues -- but avoids politics.

Hideo Ohashi, economics professor at Tokyo's Senshu University, believes China is aware of possible economic costs if anti-Japanese sentiments erupt.

Demonstrations across China earlier this year against new Japanese history textbooks that critics say whitewash Japan's World War II atrocities were widely viewed as having curtailed new Japanese investments, Ohashi said.

"Even without APEC, the economic integration of East Asia has progressed rapidly in a natural way," he said, adding the organization should facilitate government measures to complement progress in business, such as streamlining customs and visa regulations. "Certainly, the region is undergoing a big change."

Like other Asian experts, Ohashi says Japan's image will improve dramatically if Koizumi stops going to the war shrine.

Koizumi's shrine visits -- five since taking office in 2001 -- were once believed key for their influence at the ballot box. Still, Koizumi remains one of the most popular Japanese prime ministers, and his Yasukuni visit is one of his least popular policies, drawing criticism even from some Japanese.

Critics say the shrine glorifies past militarism, with some suspicious the visits are a thinly veiled symbol of Japan's secret ambitions to assert itself more on the international stage.

Makoto Kobayashi, director of the Tangshan Municipal People's Government Japan Office, which encourages Japanese companies to invest in an area near Beijing, wants Koizumi to stop going to the shrine, although Kobayashi personally has never encountered anti-Japanese behavior.

"How can Koizumi say it's just a domestic issue? Japan caused suffering to the Chinese and Korean people. If you simply thought about their feelings, it's something you won't be saying," he said. "And it's not working as a plus for the Japanese people either."

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