Years after the rise of China pushed it out of the spotlight in the Asia-Pacific region, Japan is making a comeback. Japanese foreign investment in Southeast Asia has increased dramatically since 2013, particularly in emerging economies such as Vietnam, Thailand, the Philippines and Indonesia. Japan's increasing financial outlay has gone hand-in-hand with its efforts to become more proactive on regional security and diplomatic cooperation with individual states.
For regional powers and smaller states in the Indo-Pacific that are caught between a mercurial and protectionist United States and an expansionist China, Tokyo is re-emerging as a reliable third power. But as Japan assumes greater responsibilities in U.S.-led security and economic initiatives as part of both countries' mutual interest in countering China, Tokyo will take care to avoid directly provoking Beijing, choosing instead to leverage its strengths to China to maximize its own interests around the Pacific Rim....
