Jin Ding/China Daily

Global Times-In light of the increasing uncertainty surrounding the external trade environment faced by Asian economies, the urgency of enhancing regional economic cooperation to unleash the potential of internal demand is becoming increasingly prominent.

Japan's exports fell in May for the first time in eight months as big automakers were hit by sweeping US tariffs, Reuters reported on Wednesday.

According to CNBC, data from Japan's trade ministry revealed that May exports to the US continued to decline, falling 11.1 percent year-on-year. Notably, Japan's automobile exports to the US plummeted 24.7 percent year-on-year.

The decline is a direct consequence of Washington's escalating tariff policies, which have caused shocks and disruption to the trade activity and industrial chains in Asia. In this climate of uncertainty, Asia's path to resilience lies in unlocking the vast market potential within its own borders.

For a long time, Japan's economy has been highly dependent on exports, and the decline in exports to the US is undoubtedly a heavy blow to the Japanese economy. Japan's situation is not unique; it reflects the challenges faced by all export-dependent Asian economies, such as South Korea, which is also grappling with heightened uncertainty in its export markets and significantly narrowed profit margins for its companies. 

In light of these external policy shocks, East Asian economies need to focus on strengthening their resilience and reducing dependence on external markets, with an emphasis on harnessing endogenous development drivers within the region.

Achieving this outcome requires accelerating economic integration and reducing trade barriers. China, Japan, and South Korea are neighboring countries, and their combined economic output accounts for 20 percent of the world's total and 70 percent of Asia's. The positive trend of their cooperation could not only help to fend off external risks but also pave the way for the economic integration and long-term sustainable development of Asia.

Therefore, building a resilient East Asian mega-market emerges as the solution to reducing dependence on external markets. This endeavor hinges on two key strategies: tapping into regional market potential and developing market-oriented products.

In the process of building the East Asian market, tapping into market potential and developing market-oriented products are of paramount importance. Japan, South Korea, and China each have their own advantages in the manufacturing sector, and their products have high competitiveness in the global market. 

Japan leads in high-end manufacturing, precision instruments, automobiles, and other fields. Its automobile parts, high-end machine tools, and other products have stable demand in the Chinese market. South Korea is strong in semiconductors, electronic products, shipbuilding, and other areas. Products such as chips occupy an important share in the Chinese consumer market. China has developed rapidly in new-energy vehicles, 5G communication equipment, home appliances, and other fields, and is gradually exploring market space in the Asian region.

Delving deeper into demand within the regional market is a crucial aspect of building the East Asian mega-market. East Asia is home to a large population, and its consumer market holds immense potential. In particular, the multi-tiered demand in the Chinese market offers a vast space for the advantageous products of various countries. To leverage this potential, companies from different countries need to strengthen market research, understand changes in consumer demand, and develop products that cater to local market needs. Especially in cutting-edge fields such as electric vehicles and artificial intelligence, East Asian economies can gain a leading position and open up new market spaces through collaborative innovation.

Under the shadow of protectionism, it is time for East Asia to forge a unified, resilient market that not only withstands external shocks but also drives global economic growth for decades to come.