Posts tagged ‘Japan’

14/12/2013

Susan Rice Attempts to Solve the Japan-China Deadlock – FPIF

Sending Caroline Kennedy, a household name in the United States, to Japan as the ambassador indicates that President Obama has realized there is no better choice than using the tension in East Asia to capture and retain the attention of the American public to his amazing skills in handling Asia. While the jingoistic heat may stay for a while, the White House will cool it down soon.

Trans-Asian Railway

In 1940, the GDP (in US$ billion) of Germany, Japan, the UK and the U.S. amounted to US$387, $192, $316 and $943 respectively, with a ratio between the two Axis and the two Allied powers at 0.4599:1. In 2012, the GDP of China, Japan and the U.S. amounted to $8,358, $5,960 and $15,685 billion respectively, with a ratio between China and the U.S.-Japan team at 0.3861:1.  The GDP per capita of the U.S. in 2012 was US$49,965 and that of Japan was US$46,720, but the Chinese figure was merely US$6,188 which was less than 7% of the U.S.-Japan combined total.

Strategically speaking, without Taiwan as the “unsinkable aircraft carrier”, China’s air force is fragile around the islands in dispute, not to mention their wide generational gap behind the U.S. fighters.  Even laymen know that when Boeing is promoting the latest model—787 Dreamliner, China is still at the infant stage of manufacturing passenger jets. In terms of national strength and technology, China cannot match with the United States. The current hawkish talks will no doubt help newspapers sell better and online journals attract more eyeballs but insiders and military experts know that this confrontational game is asymmetrical. Nevertheless, both Tokyo and Beijing benefit from playing this game for domestic politics consideration in due course.

Prime Minister Shinzo Abe can make the best use of it to consolidate the public support for his Liberal Democratic Party during the newly won 4-year term at the House of Representatives by proving that his party is more protective of Japan’s national interest than the Democratic Party of Japan whose leaders like Naoto Kan and Yukio Hatoyama appeared to be weak at the bargaining table during their governance 2009-12.

To the Chinese Communist Party, the Sino-Japanese tension is the most gifted justification for fostering patriotism and weakening the idolization of the West by some netizens and scholars. All the parties in power know that this confrontational show will not lead to any combat and will not last long. When the calculation and pressure for election campaigning in Japan subside after 2016, serious negotiation will resume. Both sides do not want to see long-term shrinkage of trade volume and cannot afford to leave the crude and gas under the sea untouched forever. In fact, a delegation of leading Japanese business leaders, including Fujio Cho (honorary chairman of Toyota Motors) and Hiromasa Yonekura (honorary chairman of Nippon Steel and Sumitomo Metals) is having a week-long stay in Beijing to try to open the door for peace by meeting at least the Chinese Vice-Premier Wang Yang who is in charge of trade and commerce.

This 2014-16 period will therefore be the show time for the White House to mastermind the progress towards a warm feeling for talks. National Security Advisor Susan Rice revealed a hint on how the U.S. could pave the way for a Japan-China deal in her Georgetown University script. In the eighth paragraph of the speech titled “America’s Future in Asia”, she began by saying that when “it comes to China, we seek to operationalize a new model of major power relations” and then brought the audience to the Korean Peninsula, Iran, Afghanistan, “Sudan”, “sub-Saharan Africa” and even benefits of “the peoples of Africa”. Why is Africa dragged into this already complicated problem in a speech supposed to be on America-Asia when “it comes to China”?

Knowing that China is not just rushing to complete the 80,900-km Trans-Asian Railway project and the Bangladesh-China-India-Myanmar (BCIM) Economic Corridor, but also going to provide US$1 trillion of financing to Africa in the years to 2025 through the state-owned banks including the Eximbank to further increase the Chinese stakes in this under-developed continent, Washington could bargain for favors towards the U.S., Japan and even the Philippines by offering, say, ‘less barriers’ to China’s advancement to Africa. To China, the natural resources in western Asia, Latin America and Africa represent the lion share of the commodities the 1.3 billion population needs. Here is the simple equation Susan Rice is going to show the pragmatic Chinese helmsman rulers: In the wake of China’s no match for the military strength of the U.S. worldwide, a smaller share in the east (East Asia) plus a larger (or less costly) share in the west (western Asia and Africa) can yield the same amount of sum in the end.  It is how and why a deal is possible.

via Susan Rice Attempts to Solve the Japan-China Deadlock – FPIF.

13/12/2013

Nanjing Massacre memorials to be held |Society |chinadaily.com.cn

A man is pictured in front of a wall at the memorial hall of the victims in Nanjing massacre by Japanese invaders in Nanjing, Jiangsu province, Dec 12, 2013. Nanjing Massacre memorials to be held

NANJING – A series of memorials will be held on Thursday and Friday in the city of Nanjing to mark the 76th anniversary of a massacre that claimed the lives of 300,000 Chinese civilians and disarmed soldiers.

Nanjing witnessed mass murder, genocide and war rape following the Japanese capture of the city in December 13, 1937, during World War II.

Memorial events will include a candlelight vigil, a prayer assembly for peace, as well as press conferences and seminars, according to Zhu Chengshan, curator of the Nanjing Massacre Hall.

As part of this year\’s event, a report on protection of survivors\’ oral histories of the atrocity will be presented and a Sino-U.S. collaborative project on oral history studies will be announced, Zhu announced.

\”This is about expressing sorrow for those perished, and more importantly reminding people to remember history and to cherish peace,\” he said.

Meanwhile, two survivors, 82-year-old Wang Jin and 89-year-old Cen Honggui, will leave for Japan to attend Nanjing Massacre testimony gatherings on invitation from Japanese non-governmental organizations.

Held every year since August, 1994, this activity has seen a total of 47 Chine

via Nanjing Massacre memorials to be held |Society |chinadaily.com.cn.

13/12/2013

Apple’s Deals With Top Carriers in Japan, China May Spur iPhone Sales – Businessweek

As Apple (AAPL) and Samsung (005930:KS) rumble for leadership in the global smartphone market, the Korean electronics giant has enjoyed a big advantage. In China and Japan, Asia’s two biggest economies, Samsung had deals with the No. 1 mobile operators to sell its handsets—and Apple didn’t. Despite years of trying, the maker of the iPhone couldn’t win over China Mobile (941:HK) or Japan’s NTT Docomo (9437:JP). The two carriers have 821 million customers combined.

An Apple Store in Beijing

Apple’s Asia handicap may soon be a thing of the past. In Japan, Docomo began offering the iPhone in September. Meanwhile, Apple Chief Executive Officer Tim Cook’s shuttle diplomacy may be about to bear fruit in China. Although iPhones don’t work on China Mobile’s homegrown 3G standard, they do on the LTE technology the operator plans to use for its 4G service, which it will likely roll out by early 2014.

The timing of Apple’s breakthroughs in Japan and China is no coincidence. Because of their longtime dominance in their home markets, neither China Mobile nor Docomo felt the need to make concessions to offer the iPhone. Yet smaller rivals, such as China Unicom and SoftBank (9984:JP), that have inked deals with Apple are capitalizing on the iPhone’s popularity to woo customers.

via Apple’s Deals With Top Carriers in Japan, China May Spur iPhone Sales – Businessweek.

09/12/2013

Guest post: Senkaku – accelerating the China relocation trade? | beyondbrics

The debate continues on the motivations and risks of China’s decision on November 23 to announce an East China Sea Air Defence Identification Zone (ADIZ) which critically includes the disputed Senkaku Islands (know in China as Daioyu). There is little dispute that the standoff between China, Japan and the US has the capacity to escalate into something much more dangerous unless US Vice-President Joe Biden’s recent Asia trip is effective in ratcheting down tensions.

Has China miscalculated in terms of the rapid US response of B52 bomber sorties over the disputed Islands or prospective US naval deployment build-up in the region? Or is this the preliminary phase of a much longer-term slow creep by China in fulfilling its ambitions in establishing a more dominant regional role? Vietnam, the Philippines, Taiwan, Malaysia and Brunei (all US allies) are – like Japan – enmeshed in arguments with Beijing over relatively minor but potentially strategic bits of maritime real estate. Does the US administration have the willingness to back its allies on all fronts

Others have argued that the new Chinese leadership under President Xi Jinping are using nationalist sentiment to distract the Chinese public from the growth slowdown as well as solidify support among the Chinese military. Meanwhile Japan has been busily building up mutual defence and security ties across southeast Asia, and with Australia and India, as a hedge against Beijing. The state visit of the Japanese Emperor to India to has taken on even more significance.

While the geopolitical dynamics remain fluid and uncertain, a more definite consequence of the dispute may well be to accelerate the China relocation macro theme with major implications for FDI flows in the rest of the region. Up until now the primary motivation for foreign companies with large scale manufacturing operations to relocate from China has been the rapid rise in Chinese labour costs and the growing signs of worker shortages. The case was made most effectively by former World Bank Chief Economist Justin Yifu Lin (see Chandra, Lin and Wang (2012)) who suggested that:

industrial upgrading has increased wages and is causing China to graduate from labor-intensive to more capital-and technology-intensive industries. These industries will shed labor and create a huge opportunity for lower wage countries to start a phase of labor-intensive industrialization.

This process, which they called the Leading Dragon Phenomenon, offers an unprecedented opportunity to low-income countries where the industrial sector is underdeveloped and investment capital and entrepreneurial skills are leading constraints to manufacturing. They also note that low income countries such can seize the opportunity and resolve the constraints by attracting some of the FDI flowing currently from China, India and Brazil into the manufacturing sectors of other developing countries.

So the relocation of factories as a result of China economic rebalancing is a multi-year structural trend that is likely to be the dominant macro theme for developing economies for the next decade and beyond. But it is becoming more apparent that political risk mitigation in the face of resurgent Chinese regional territorial ambitions and aggressiveness will re-inforce the macroeconomic justification for diversifying away from China. Japanese outward FDI has increased for two years in succession, with 2012 the second highest increase in history ($122.4bn, an increase of 12.5 per cent over the previous year). Japan’s total outward FDI stock exceeded $1tn. However what is more interesting, as illustrated in the diagram below, is that Japan’s FDI flow to ASEAN has grown relative to that towards China.

Even if it’s a remote scenario, what if accidental engagement between Japanese and Chinese fighters in the newly announced ADIZ rapidly escalated into a more serious conflict or even declaration of war? The hundreds of billions of dollars of Japanese investment into factories in China would appear at risk. Even if we exclude the expropriation of factories directly, at the very minimum, the experience of Chinese nationalist protests over the Yasukune shrine visits by Japanese politicians or in the more distant past the US bombing of the Chinese embassy in Belgrade are clearly risks that policy makers and boards of Japanese multinationals must be increasingly worried about. And, unlike Chinese holdings of US treasuries that could be liquidated reasonably quickly, albeit potentially at the risk of self-destructively causing a meltdown in global financial markets, FDI in factory assets is, by its very nature, immobile. Moreover Japanese managers and workers in China would also be vulnerable. One might argue that there is a risk of a similar level of concern developing in Seoul or Taipei or perhaps even Washington.

via Guest post: Senkaku – accelerating the China relocation trade? | beyondbrics.

Ifty Islam is the managing partner of AT Capital in Dhaka, Bangladesh. Ifty.islam@ at-capital.com

08/12/2013

South Korea expands air defense zone to partially overlap China’s | Reuters

China two weeks ago that has sharply raised regional tensions.

Beijing\’s declaration of an air defense identification zone in an area that includes islands at the heart of a territorial dispute with Japan has triggered protests from the United States and its close allies Japan and South Korea.

Announcing the expansion of its own zone to include two territorial islands to the south and a submerged rock also claimed by China, South Korea\’s Defence Ministry said the move would not infringe on neighboring countries\’ sovereignty.

\”We believe this will not significantly impact our relationships with China and with Japan as we try to work for peace and cooperation in Northeast Asia,\” defence ministry head of policy Jang Hyuk told a briefing.

\”We have explained our position to related countries and overall they are in agreement that this move complies with international regulations and is not an excessive measure,\” he said, adding the ministry\’s top priority was to work with neighboring countries to prevent military confrontation.

via South Korea expands air defense zone to partially overlap China’s | Reuters.

06/12/2013

China-Taiwan Relations Thaw Even as Beijing Alienates Most of Asia – Businessweek

China’s tense relationships with its neighbors have recently grown even worse. Ties with Japan, already frosty over an island dispute, soured further after Beijing announced a new air defense zone in the East China Sea that overlaps with Japan’s. The expanded China zone also covers territory claimed by South Korea, but Korean air force planes are ignoring it. In the South China Sea, site of another island quarrel with the Philippines, Vietnam, Malaysia, and Indonesia, the Chinese were late and stingy in sending relief to the Philippines after Typhoon Haiyan: First they offered $100,000 in aid, then a still-puny $1.6 million. Out west, the Chinese foreign ministry cautioned India not to complicate the Sino-Indian relationship after President Pranab Mukherjee visited a Himalayan region that China considers part of Tibet.

Chen with Yen Cho-yun, the wife of the late chairman of Taiwan’s Straits Exchange Foundation, on Dec. 2. During his eight-day visit, Chen was feted by a host of high-level dignitaries

But when it comes to China’s ties with Taiwan, traditionally its most fraught relationship, Beijing’s leaders couldn’t be friendlier. Consider the schedule of Chen Deming. As head of the Association for Relations Across the Taiwan Straits, Chen is the official responsible for negotiating with the island, even though he’d never been there until last month. In late November he arrived for an eight-day visit to meet with the mayor of Taipei, the governor of the central bank, and the honorary chairman of the ruling Kuomintang, or Chinese Nationalist party.

Taiwanese officials marked the occasion by making it easier to do business with China. Taiwan President Ma Ying-jeou raised the daily quota of visitors from the mainland by 50 percent, to 3,000, while the two sides increased the number of direct flights across the Strait by almost 25 percent, to 828 per week.

via China-Taiwan Relations Thaw Even as Beijing Alienates Most of Asia – Businessweek.

01/12/2013

U.S. airlines give China flight plans for defense zone | Reuters

U.S. airlines United, American and Delta, have notified Chinese authorities of flight plans when traveling through an air defense zone Beijing has declared over the East China Sea, following U.S. government advice.

A group of disputed islands, Uotsuri island (top), Minamikojima (bottom) and Kitakojima, known as Senkaku in Japan and Diaoyu in China is seen in the East China Sea, in this photo taken by Kyodo September 2012. REUTERS/Kyodo

The zone has raised tensions, particularly with Japan and South Korea, and is likely to dominate the agenda of a visit to Asia this week of U.S. Vice President Joe Biden. He will travel to Japan, China, and South Korea and try to ease tensions, senior American officials said.

However, China\’s declaration of the zone also represents a historic challenge by the emerging world power to the United States, which has dominated the region for decades.

China published co-ordinates for the zone last weekend. The area, about two-thirds the size of the United Kingdom, covers most of the East China Sea and the skies over a group of uninhabited islands at the center of a bitter territorial dispute between Beijing and Tokyo.

Beijing wants all foreign aircraft passing through the zone, including passenger planes, to identify themselves to Chinese authorities.

On Friday, the United States said it expected U.S. carriers to operate in line with so-called notices to airmen issued by foreign countries, although it added that the decision did \”not indicate U.S. government acceptance of China\’s requirements.

A spokesman for Delta Airlines said it had been complying with the Chinese requests for flight plans for the past week. American and United said separately that they were complying, but did not say for how long they had been doing so.

Airline industry officials said the U.S. government generally expected U.S. carriers operating internationally to comply with notices issued by foreign countries.

In contrast, Japanese carriers ANA Holdings and Japan Airlines have flown through the zone without informing China, under an agreement with the Tokyo government. Neither airline has experienced problems.

The airlines said they were sticking with the policy even after Washington\’s advice to its carriers.

Any sign that the United States was even tacitly giving a nod to China\’s air defense zone would disturb Tokyo, which is hoping for a display of solidarity when Biden visits Japan starting on Monday.

via U.S. airlines give China flight plans for defense zone | Reuters.

01/12/2013

China, Japan and America: Face-off | The Economist

China’s new air-defence zone suggests a worrying new approach in the region

THE announcement by a Chinese military spokesman on November 23rd sounded bureaucratic: any aircraft flying through the newly designated Air Defence Identification Zone (ADIZ) in the East China Sea must notify Chinese authorities in advance and follow instructions from its air-traffic controllers. America’s response was rapid. On November 26th Barack Obama sent two B-52 bombers to fly through the new zone without notifying China (see article). This face-off marks the most worrying strategic escalation between the two countries since 1996, when China’s then president, Jiang Zemin, ordered a number of exclusion zones for missile tests in the Taiwan Strait, leading America to send two aircraft-carriers there.

Plenty of countries establish zones in which they require aircraft to identify themselves, but they tend not to be over other countries’ territory. The Chinese ADIZ overlaps with Japan’s own air-defence zone (see map). It also includes some specks of rock that Japan administers and calls the Senkaku islands (and which China claims and calls the Diaoyus), as well as a South Korean reef, known as Ieodo. The move is clearly designed to bolster China’s claims (see article). On November 28th Japan and South Korea sent aircraft into the zone.

Teenage testosterone

Growing economic power is bound to go hand-in-hand with growing regional assertiveness. That is fine, so long as the behaviour of the rising power remains within international norms. In this case, however, China’s does not; and America, which has guaranteed free navigation of the seas and skies of East Asia for 60 years, is right to make that clear.

How worrying China’s move is depends partly on the thinking behind it. It may be that, like a teenager on a growth spurt who doesn’t know his own strength, China has underestimated the impact of its actions. The claim that America’s bombers had skirted the edge of the ADIZ was gawkily embarrassing. But teenagers who do not realise the consequences of their actions often cause trouble: China has set up a casus belli with its neighbours and America for generations to come.

It would thus be much more worrying if the provocation was deliberate. The “Chinese dream” of Xi Jinping, the new president, is a mixture of economic reform and strident nationalism. The announcement of the ADIZ came shortly after a party plenum at which Mr Xi announced a string of commendably radical domestic reforms. The new zone will appeal to the nationalist camp, which wields huge power, particularly in the armed forces. It also helps defend Mr Xi against any suggestions that he is a westernising liberal.

If this is Mr Xi’s game, it is a dangerous one. East Asia has never before had a strong China and a strong Japan at the same time. China dominated the region from the mists of history until the 1850s, when the West’s arrival spurred Japan to modernise while China tried to resist the foreigners’ influence. China is eager to re-establish dominance over the region. Bitterness at the memory of the barbaric Japanese occupation in the second world war sharpens this desire. It is this possibility of a clash between a rising and an established power that lies behind the oft-used parallel between contemporary East Asia and early 20th-century Europe, in which the Senkakus play the role of Sarajevo.

via China, Japan and America: Face-off | The Economist.

25/11/2013

Shinzo Abe: China new air defence zone move ‘dangerous’ – BBC News

Japan\’s Prime Minister Shinzo Abe has described China\’s move to create a new \”air defence identification zone\” over disputed waters as \”dangerous\”.

Islands in the East China Sea, called Senkaku in Japanese and Diaoyu in Chinese

China\’s action had \”no validity whatsoever on Japan\”, Mr Abe added.

China has voiced anger at Japanese and US objections to the new air zone, and lodged complaints with their embassies.

The zone covers disputed islands that are claimed and controlled by Japan. China says aircraft entering the zone must obey its rules.

Mr Abe told parliament on Monday that the zone \”can invite an unexpected occurrence and it is a very dangerous thing as well\”.

\”We demand China revoke any measures that could infringe upon the freedom of flight in international airspace,\’\’ he added.

US Defence Secretary Chuck Hagel has called the move a \”destabilising attempt to alter the status quo in the region\”.

\”This unilateral action increases the risk of misunderstanding and miscalculations,\” Mr Hagel said in a statement.

\”This announcement by the People\’s Republic of China will not in any way change how the United States conducts military operations in the region,\” he added.

via BBC News – Shinzo Abe: China new air defence zone move ‘dangerous’.

23/11/2013

Japan’s Abe Seeks Asia Alliances to Counter China – Businessweek

Prime Minister Shinzō Abe is the first Japanese premier to visit all 10 members of the Association of Southeast Asian Nations. In late November, Emperor Akihito will make the first visit by a Japanese monarch to India. Not on either dignitary’s itinerary—China. And that’s no accident.

Click image to enlarge

Abe, a foreign-policy hawk who’s clashed with the Chinese over the ownership of some Japanese-controlled islands, wants to shore up relations with the swath of nations forming a semicircle around China. Some have their own beefs, including India, which shares a disputed border with China. Abe will visit India next year, and in mid-December will host Asean leaders. It’s all part of his campaign to thwart China’s rulers, who, as he wrote in a column last December, see the South China Sea as “Lake Beijing.”

Click image to enlarge

This is powerful but dangerous talk. China is throwing its considerable weight around more in the region, and it may react aggressively if its neighbors push back too hard. As all sides buy more warships, missiles, and fighter jets, such confrontations could escalate. “Nobody has said this is surrounding China,” says Chiaki Akimoto, director of RUSI Japan, an arm of Britain’s Royal United Services Institute, a think tank. What Abe wants “is just a friendship network with nations around China.”

via Japan’s Abe Seeks Asia Alliances to Counter China – Businessweek.

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