Democratic Progressive Party (DPP) Chairperson Tsai Ing-wen was elected president on Jan. 16 by a decisive margin, and for the first time the DPP won a majority in the Legislative Yuan (LY) election. This outcome has set Taiwan on a new course. Since then, Tsai has adhered to her pledge to maintain the status quo and peace in the Taiwan Strait and has taken steps to continue reaching out to Beijing. Beijing reacted calmly to the election and has repeatedly said the election will not change the basic framework of its peaceful development policy toward Taiwan. However, Beijing is waging a focused campaign to press Tsai to accept the 1992 Consensus in her inaugural address on May 20. Even if she does not fully meet Beijing’s demands, as is expected, it will be in the interest of both sides to avoid confrontation after May 20 in what is likely to be a strained relationship.

North Korea’s decision to start the new year with its fourth nuclear test guaranteed a downturn in inter-Korean ties. Its successful satellite launch in early February, which also served as a partial ballistic missile test, was the last straw for South Korea, which appeared to finally run out of patience. On Feb. 10 President Park announced the suspension – but in all probability, permanent closure – of the Kaesong Industrial Complex (KIC): the last surviving North-South joint venture from the “Sunshine” Era of engagement. But, parliamentary elections in April saw a rebuff for Park’s conservative ruling Saenuri Party. This increases the center-left’s chances of regaining the Blue House in late 2017 and a return of some form of outreach to Pyongyang.  Right now it is sunset for “Sunshine” on the Peninsula, but the sun may yet rise again. Never say never in Korea.

North Korea’s fourth nuclear test in January and long-range rocket launch in February drew global opposition in the form of UN Security Council (UNSC) Resolution 2270 and condemnation by regional leaders.  Pyongyang, however, promptly dismissed such calls with a series of short- and mid-range missile launches in March and April.  Presidents Xi Jinping and Park Geun-hye expressed support for full implementation of UN sanctions in bilateral talks at the Nuclear Security Summit (NSS) in Washington.  Foreign Ministers Wang Yi and Yun Byung-se pledged their commitment to denuclearization at the fifth Foreign Ministers Meeting of the Conference on Interaction and Confidence Building Measures in Asia (CICA) in Beijing on April 27-28, where Xi declared that China “will absolutely not permit war or chaos on the peninsula.”  Despite Beijing’s hardened rhetoric, current tensions on the Korean Peninsula point to enduring differences between Beijing and Seoul’s strategic preferences.

Citing his November meeting with Premier Li as evidence, Prime Minister Abe found relations with China improving in his Diplomatic Report to the Diet. Chinese officials took a more cautious view.  While acknowledging progress, China’s ambassador to Japan called attention to unstable elements in the relationship and Foreign Minister Wang Yi accused Japan of “double dealing” in its relations with China.  Issues related to the East China Sea and the South China Sea continued to trouble the relationship. Chinese Coast Guard ships made incursions into Japan’s territorial waters in the Senkakus while Japan continued to strengthen its military presence in Okinawa and the southwest islands. The foreign ministers met at the end of April.

The beginning of a new year offers an opportunity to evaluate how circumstances change. While the first few months of 2015 conveyed (cautious) optimism amidst notable celebrations like the anniversary of the restoration of diplomatic relations between Japan and South Korea and the 70^th anniversary of the end of World War II, there was no focal point in early 2016 to push the momentum toward greater cooperation for Seoul and Tokyo. The main difference to the start of this year was the dominance of the Japan-North Korea dyad. Perhaps the Jan. 6 nuclear test by Pyongyang was a foreshadowing of things to come, as relations with Tokyo remained rather tumultuous: several missile tests by Pyongyang combined with retributive actions on the part of Tokyo made progress on the abduction issue – arguably Japan’s top priority vis-à-vis the North (alongside denuclearization) – extremely unlikely.

The first months of 2016 witnessed a significant escalation of tension in Northeast Asia following North Korea’s fourth nuclear test on Jan. 6. The test, coupled with renewed US-ROK interest in deploying the Terminal High-Altitude Area Defense (THAAD) system, presented China and Russia with a “double-layered predicament”: nuclear proliferation on the heavily militarized Korean Peninsula and a direct threat to their nuclear deterrence posture. Meanwhile, talk of a Sino-Russia alliance was back on track in China. In reality, however policies of the two powers seemed to go in different directions. Russia continued to surprise the world, including China, over its involvement in Syria. For China, the “One Belt, One Road” initiative took Xi Jinping to three major Muslim nations (Iran, Saudi Arabia, and Egypt) in January. China also dispatched its own Syrian special envoy and initiated a mini-security alliance with Afghanistan, Pakistan, and Kyrgyzstan to the displeasure of Moscow. By the end of April, the two countries announced they would conduct their first-ever joint anti-missile drills in Russia.

Two objectives drive Japan’s increasing engagement with Southeast Asia:  stimulating Japanese economic growth through investment in large-scale infrastructure abroad, and supporting regional maritime domain awareness. While Tokyo officially denies any suggestion of rivaling or checking China with these policies, the timing and nature of Japan’s “pivot” to Southeast Asia would suggest otherwise.  The number of “first-ever” Japanese defense initiatives with Southeast Asian countries in the past year, correspond to rising concern in the region over China’s moves in the South China Sea. New developments in regional security relations reflect a revision of Japanese defense guidelines and of the US-Japanese alliance, both of which emphasize greater interaction with regional partners. On the economic side, Japan and China are in direct competition for infrastructure projects in Southeast Asia, particularly in Myanmar.  This will likely be the case for the next several years as ASEAN seeks to undergird the ASEAN Economic Community with new transportation grids.

While events in Paris and San Bernardino refocused the international community’s attention on terrorism, it was largely business as usual in Asia, with the normal round of multilateral meetings – the Association of East Asian Nations (ASEAN) Summit, US-ASEAN Summit, East Asia Summit (EAS), and ASEAN Defense Ministers Meeting Plus (ADMM+) in Kuala Lumpur, plus the Asia-Pacific Economic Cooperation (APEC) Leaders Meeting in Manila – going largely unnoticed. A few other summits did attract attention, including the first “Plus Three” (Japan-Korea-China) Summit in three years (which included the first direct one-on-one summit between ROK President Park and Japan Prime Minister Abe) in Seoul and the “non-summit” between Mr. Xi Jinping and Mr. Ma Ying-Jeou who just happen to be the presidents, respectively, of the People’s Republic of China and Republic of China, in Singapore. Chinese actions (and US reactions) in the South China Sea continued to dominate the news, while hopes that Kim Jong-Un was on the brink of behaving were quickly dashed as the new year began. All eyes remain on the Chinese economy and the impact the continuing slowdown there may have on global growth, even as the US pushes forward on the finally completed (but not yet Congressionally-approved) Trans-Pacific Partnership.

Washington and Tokyo made significant progress on two new initiatives this fall – Japan’s implementation of legislation for the exercise of collective self-defense and the conclusion of negotiations with other participants in the Trans-Pacific Partnership (TPP). With Japanese Upper House elections in the summer and US presidential elections in the fall, trade, military strategy, and US-Japan security cooperation will be part of the political discourse in both countries. Along with the ratification process for the Trans-Pacific Partnership trade deal, two challenges for Washington and Tokyo that will continue into the new year are how to respond to Chinese land reclamation in the South China Sea and how to deal with local opposition to Tokyo’s plans for building a new airfield to replace the Futenma facility on Okinawa.

Despite growing friction between the US and China on a number of issues, Xi Jinping’s state visit to the US in September was mostly positive and produced important outcomes on climate change, cyber security, and avoiding accidents between military aircraft. Tensions persisted in the South China Sea with China unwilling to stop its construction and militarization of terraformed reefs. The USS Lassen, a US Navy guided-missile destroyer, exercised international rights of freedom of navigation by sailing within 12nm of Chinese-occupied Subi Reef. The Obama administration notified Congress of its intent to sell a $1.83 billion arms package to Taiwan prompting Chinese objections, but no suspension of bilateral military exchanges. Presidents Obama and Xi met again on the margins of the Paris climate change conference in late November. They also conferred by phone, helping to conclude an historic, ambitious, global, agreement to reduce emissions at COP21.