This article analyses Japan’s trade policy for Asia. Japan’s approach to trade is characterized by an innovative policy of bilateralism and minilateralism, based on legalism and free trade and advocating a regional division of labor. This analysis is based on a pragmatic theoretical framework that integrates the contributions of international law and international political economy to new liberalism. A key finding of this analysis is that Japan’s trade policy is quite proactive compared to the reactive stance associated with that country. Japan exerts intense economic state preferences in its call for legalism and free trade to face the rising power of China. Japan’s actions favor the hardening and the regionalization of the post-wto trade system.