On June 17, 2025, the Asia Pacific Initiative (API) hosted a closed-door API Roundtable in Tokyo, welcoming a delegation from the Institute of World Economics and Politics (IWEP) at the Chinese Academy of Social Sciences (CASS), led by Dr. XIONG Aizong, Director of the Department of International Political Economy. The theme of the roundtable was “International Political Economy in a Turbulent Geoeconomic Era.”

The session brought together Japanese and Chinese experts for a candid, policy-focused exchange on a range of issues, including Japan-China relations, U.S.-China strategic competition, economic security, and the broader intersection of geopolitics and economics in an increasingly uncertain global landscape.
In the opening presentation, Dr. Xiong explained that IWEP’s current research has shifted toward the interconnection between economics and politics, in a direction similar to API’s geoeconomics approach. He emphasized that while we are clearly entering a geoeconomic era, the solution is not to reduce interdependence but to find new ways to deepen cooperation and manage risk.

Dr. Xiong also noted growing global uncertainty, particularly in Asia, where economies remain highly dependent on exports to the United States. He referenced API’s work as an inspiration, including the concept of “from global governance to geoeconomics,” and expressed interest in topics such as China’s economic diplomacy, the Belt and Road Initiative, infrastructure development, and China’s engagement with the Global South.

The discussion also covered the shift in alliance politics, with frameworks like NATO, TTC, and IPEF expanding beyond defense to include economic coordination. Dr. Xiong observed that global governance is becoming more exclusive and closed, posing new challenges to long-standing economic relationships such as the so-called “Cold Politics, Hot Economics” dynamic between Japan and China. Japan’s recent policy pivot under Prime Minister Kishida toward economic security and reducing dependence on China was also highlighted.
In the Q&A session, participants delved into topics including responses to Trump-era tariffs, the rationale behind China’s rare earth export restrictions, the causes and possible outcomes of U.S.-China tensions, and whether an endgame might involve a recognition of bipolarity and mutual acceptance between the two powers.
Further points of discussion included:

● The structural difficulty of boosting domestic demand in China

● China’s cautious stance toward military alliances, contrasted with Australia’s effort to separate economics from politics

● The potential risks of Chinese retaliatory measures affecting third countries like Japan

● Ongoing concerns about technology export restrictions and China’s reaction to being denied access to advanced semiconductors

● Internal debates within Chinese firms such as BYD over subsidies and sustainability of business models

This roundtable served as a timely and valuable opportunity to explore how Japan and China can maintain constructive dialogue and cooperation amid rising global uncertainty and geoeconomic fragmentation. It reinforced the importance of continued engagement between scholars and policymakers to better understand shared challenges and opportunities in the international political economy.