Construction Of China, Japan And South Korea Exchange Rate Coordination System

In 2008, the financial crisis rang an alarm bell to east Asian countries once again. It is necessary to establish an effective mechanism of monetary cooperation which is the best way to prevent other countries use exchange rate to transfer its own economic crisis on to other.However,in a period of time, East Asian countries can not build high level monetary cooperation like EU.In this case, a few major countries in this region achieve the goal of coordination mode of exchange rate is more feasible in a short term.The trade between China, Japan and the ROK frequently and the trade amount is huge. While the three countries are highly complementary economically.Therefore,all three countries need a stable exchange rate environment.Meanwhile,the foreign policy of Japan attach greater importance to Asia and pursuit reciprocal relation with U.S.In 2008,China and Japan singed a joint statement on comprehensive advancement of their strategic and mutually beneficial relations. Both sides affirm each other for partner relations. It marks the relations between China and Japan have entered a new era. In the same year, the leaders of China, Japan and the ROK held a meeting in Fukuoda,and signed the Joint Statement for Trilateral Partnership. The joint statement pointed out that the three countries would carry out cooperation under the principles of openness,transparency,mutual trust, mutual benefit and respect for cultural differences, and advance wider-ranged regional cooperation. And it plays important role to promote East Asian regional cooperation. Which also provided a political base for monetary cooperation in East Asia.In this paper, we use political economics and international relations theories to analyze the feasibility of exchange rate coordination system. And we point out build coordination mode of regional exchange rate is the key to East Asian monetary cooperation and community building.China,Japan and Korea must seize this opportunity, laying aside disputes, which is the best choice to earn the national interests.