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Subject

Japan-Central Asia ties.

Significance

Prime Minister Shinzo Abe will make a five-nation tour of Central Asia in August -- the first since Prime Minister Junichiro Koizumi's in 2006. With the Russia-led Eurasian Economic Union in effect as of January 1 and China fleshing out its plans for a 'New Silk Road Economic Belt', Japan presents itself as a 'third option' that could dilute China's and Russia's predominance.

Impacts

Opportunities for Japanese investment will grow, especially in the field of nuclear energy.

Security ties could grow under the Abe government's defence reforms, 'proactive pacificism' and new interest in counter-terrorism.

South Korea presents itself as another 'third option' and other countries are becoming more active too, even as the US presence recedes.

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