China and Japan ponder closer economic, energy ties

SHANGHAI, Oct. 6 (UPI) -- Japan and China have proposed creating an East Asian Community similar to the European Union to coordinate many policies, including energy and the environment.

The Times of India reported Tuesday that the proposal is in its initial stages, which in its opening phases could coordinate policies not only on energy and environmental issues, but visa-free travel and joint public health initiatives. In its latter stages political issues and common policies on defense and agriculture would also become prominent.

Japanese Prime Minister Yukio Hatoyama reportedly broached the concept to Chinese President Hu Jintao during their first meeting in New York on Sept. 21, where both were attending the United Nations' 64th session of the General Assembly. Last week in Shanghai the proposal was again discussed during Japanese Foreign Minister Katsuya Okada's meeting with Chinese Foreign Minister Yang Jiechi.

Such a political grouping could have enormous financial clout, as Japan is currently the world's second-largest economy, followed by China. Unconfirmed reports indicate that India might also be invited to join the league, further expanding its economic potential.