Japanese workers are finally seeing their pay jump

Diners eat at a restaurant in the Shinjuku district of Tokyo.Getty Images

Japanese workers have seen their pay go up at a record rate after the government called on companies to help employees facing rising prices.

Official figures show that, compared to a year earlier, wages rose by 1.8% in May, the fastest pace in 28 years.

The salaries of many people in Japan had barely moved for decades as inflation was almost non-existent.

However, as the cost of living jumped the country’s Prime Minister Fumio Kishida urged employers to take action.

Prices around the world have risen in recent months as countries eased pandemic restrictions and the war in Ukraine pushed up the cost of key goods such as oil and wheat. In Japan costs of everyday items were also pushed higher by its weakening currency.

Inflation in the world’s third largest economy has been rising for more than a year. The most recent official reading showed core consumer prices rose by 3.2% in May from a year earlier.

This year, companies including, Fast Retailing, which owns fashion chain Uniqlo and motor industry giants Toyota and Honda said they would increase their employees’ pay.

Earlier this week, Japan’s largest trade union Rengo said firms had agreed at annual labour talks to the largest pay increases in three decades.

The hikes represent a “symbolic structural change in the Japanese economy,” research analysts from Japanese investment bank Nomura said.

“Japan’s potential labour pool shifted to a rapid decline around the end of 2021,” they added. “This should put sustained upward pressure on wages.”

Earlier this year, Uniqlo owner Fast Retailing said it was raising salaries to “remunerate each and every employee appropriately for their ambition and talents”.

The firm added that it aimed to “increase the company’s growth potential and competitiveness in line with global standards”.

Meanwhile, Toyota boss Koji Sato said he hoped the move would have a positive impact across Japan’s motor industry and “lead to frank discussions between labour and management at each company.”

Rival car maker Honda said the extra money will largely be distributed to younger employees as starting salaries are boosted.

Continue Reading

US, China want to reconcile but don’t know how

A People’s Republic of China (PRC) scholar’s recent commentary on US-China relations is refreshing in its even-handedness and optimism. The author of the July 5 essay, Wu Xinbo, is the dean of the Center for American Studies at Fudan University in Shanghai and has substantial experience exchanging views with US foreign affairs experts.

Nevertheless, Wu oversimplifies the difficulty of repairing this dangerously frayed bilateral relationship. Echoing what PRC officials have recently been saying, Wu argues that the 2022 meeting in Bali between PRC General Secretary Xi Jinping and US President Joe Biden established a useful “foundation” for improved US-China relations. 

Wu summarizes the commitments at the Bali meeting as follows: Xi said “China does not seek to change the existing international order or interfere in the internal affairs of the US, and has no intention to challenge or displace the US.” Wu paraphrases Biden as saying “the US respects China’s system, does not seek to change it and has no intention for a new Cold War.”

In practical terms, however, this foundation is so riven with cracks as to be nearly useless.  From the US standpoint, Beijing’s insistence that Taiwan must become a province of the PRC, whether voluntarily or by military force, is an attempt to change the existing order.

And so are PRC claims to ownership of the South China Sea, PRC encroachment on the Sino-Indian border and PRC designs on Japan’s Ryukyu Islands. China’s attempts to interfere in the domestic politics of the US are well-documented. 

Xi’s denial of an intent to “displace the US” as a global or regional leader similarly lacks credibility. PRC officials and media relentlessly attempt to de-legitimize US leadership by defaming the United States as warlikedeclining, hypocritical and pushing allies toward disaster.

Beijing frequently threatens US partners with economic or military harm if they cooperate too closely with the Americans. On July 3, Politburo member and former foreign minister Wang Yi rather bizarrely told Japanese and South Korean diplomats they should side with China against the West because of common Asian racial ancestry.

Nor do Biden’s Bali commitments offer China much to build on.

A statement that the US government “respects China’s system [and] does not seek to change it” is an improvement over the Trump administration’s call for the international community to work toward the overthrow of the Chinese Communist Party (CCP).

But it does not mean Washington will cease publicly criticizing the CCP government for being “authoritarian” and for denying its subjects civil and political rights, criticism that enrages Beijing.

The Chinese might think that if America says it does not want a “new Cold War,” it logically follows that the US government will stop what Beijing alleges is supporting Taiwan’s independence and attempting to build an “Asian NATO.” 

In Washington’s view, however, the way to achieve peace and stability is to strengthen the potential counter-China coalition enough to dissuade Beijing from attempting military adventurism.

In sum, Xi and Biden talked past each other at Bali, which explains why the bilateral relationship did not improve in the months afterward.  

Academic Wu says China and the US should “draw red lines for both sides” and that “each does not pose an existential threat to the other.” The “red lines” idea is similar to the Biden administration’s “guardrails” metaphor.

Wu Xinbo (C), dean of Fudan University’s Center for American Studies, receives a delegation from the Shanghai US Consulate in 2020. Photo: Fudan

By adding the additional phrase “existential threat,” however, Wu previews why this idea would fail. 

The strategic flashpoints with the highest risk of US-China military conflict all involve cases of PRC expansionism mingled with irredentism: Taiwan, the South China Sea, the Sino-Indian border and the East China Sea. 

Since the Chinese Communist Party (CCP) government claims all of these areas as rightfully Chinese territory, the “loss” of any of them is by definition an existential threat to China.

Complying with Beijing’s red lines would require the US to abandon Taiwan and the South China Sea to PRC annexation. Washington is clearly unwilling to do that. The most the US side could do is restate that it is not actively encouraging Taiwanese independence, which the PRC side does not believe.

Meanwhile, politicians from both major US parties continue to use support for Taiwan as a means of virtue signaling, undercutting the White House’s assurances to the PRC.

Wu argues that “Washington has stressed too much competition” with China at the expense of cooperation. Instead, he says, “we should sit down to discuss what will be a realistic agenda for cooperation.”

Wu is certainly correct that despite the strategic tensions, there remains a broad array of areas where China and the US can and should cooperate for mutual benefit. There are, however, two problems here.

First, Beijing tends to hold important areas of potential cooperation hostage to unrelated bilateral disputes, requiring that Washington first make concessions before Beijing will agree to talk about making progress on an issue that is also in China’s interest. Examples are confidence-building measures and climate change. So the discussion on a “realistic agenda” would likely begin with some attempted extortion by the PRC delegation. 

A second problem is that economic “de-risking” is not going away. The top “cooperation” priority for the PRC today is to regain the degree of access to US technology that China previously enjoyed. China, however, used that previous access to build up formidable military capabilities and demonstrated alarming intentions toward important US interests.

Now that China is a dangerous potential adversary, the bilateral relationship is permanently changed. US policymakers will increasingly forego cooperation that promises immediate economic rewards if the longer-term result would be increased US vulnerability. 

The discussion that Wu envisions is unlikely to result in the US buying Huawei equipment or lifting the restrictions on PRC access to advanced semiconductors.

China’s chip industry has been hit by US sanctions. Image: Twitter

Washington would be open to talking about cooperating on climate change and avoiding accidental military incidents, but it’s unclear that is what Beijing really wants.

Finally, Wu calls for Sino-US negotiations on “some adjustments” to an “international order” that he says excessively caters to US preferences. In principle, this is reasonable. China is an emergent great power in a region already dominated by a long-established great power, a historically recurrent war-prone situation.

Accommodating China by changing the rules of international interaction is preferable to a decision by China that it must fight a war to replace US rules with Chinese rules. As with the “red lines” issue, however, it is doubtful that the “adjustments” the US is willing to make would satisfy Beijing. 

Key sticking points would be China’s insistence on winning its territorial claims, Chinese opposition to US alliances and military activity in the region, and US opposition to PRC economic coercion.  

Wu suggests a new order should be based on the United Nations Charter. But neither this nor any other legal document would be sufficient to smooth over the current frictions or adjudicate future disputes between the PRC and US.

Even now, Beijing argues that US military interventions in Iraq and Afghanistan violated the UN Charter. Washington can point to the PRC’s human rights violations, disregard for the Law of the Sea and support for the Russian invasion of Ukraine. 

Great powers pursue their self-interests first, often in defiance of the rules, and then secondarily limit reputational damage as best they can.

Wu’s commentary graciously avoids the usual Chinese call for the US to “correct its mistakes.” Nor does it admit to any imperfection in PRC policies, which is typical of PRC-based analysts. This evasion makes possible a hopefulness that, unfortunately, is superficial and unrealistic, despite Wu’s apparently admirable intent.

Denny Roy is a senior fellow at the East-West Center.

Continue Reading

China’s Wuhan, where COVID-19 was first detected, struggles to shed legacy of pandemic

However, for some, memories of the lockdown remain and questions persist.

“There is still trauma. Maybe the reality we saw was crueller than what the news reported. For example, the number of deaths,” a Wuhan resident, whose mother was among the first wave of those infected, told CNA. 

“We are exposed to what is said to be the real data, but for various reasons, there is a difference between what we see in Wuhan and the reported data. I accept it because how should I put it? The country has its considerations, right?”

There are also physical reminders of the last three-and-a-half years.

The Huanan seafood market in Jianghan district, the epicentre of the outbreak, remains boarded up and inaccessible. It was shuttered in January 2020 when the earliest COVID-19 cases linked to the market were first announced.

Today, it remains at the centre of a controversial debate over the origins of the virus.

Continue Reading

China to ban food imports from Japan citing safety reasons

BEIJING: China will ban the import of food from about one-fifth of Japanese prefectures for safety reasons, Chinese customs said on Friday (Jul 7), citing Japan’s move to discharge nuclear-contaminated water into the sea. China, the biggest buyer of Japan’s seafood exports, said it would also strictly review the documentsContinue Reading

Vilnius NATO summit will likely be a flop

Any decision on NATO membership is between the 31 Allies and aspirant country. And so, in this case, when it comes to Ukraine, we have been discussing with our NATO Allies and Ukraine how we can collectively support Ukraine’s aspiration for Euro-Atlantic integration.

Ukraine would have to make reforms to meet the same standards as any NATO country before they join. President Biden thinks that Ukraine can do that.

– Karine Jean-Pierre, White House press secretary

​US President Joe Biden will spend three days in Europe at the NATO Summit in Vilnius scheduled for 11 and 12 July. The main topic will be Ukraine and where to go from here.

Ukraine is pushing for either immediate NATO membership or actionable security guarantees from NATO. But Ukraine’s position is undermined by the failure of the counteroffensive against Russia, and the failure of its attempts – via sabotage, assassination and lethal drones aimed at the Kremlin – to destabilize the Putin government. Now Ukraine is saying it needs NATO air power to be able to win its war.

It will be very hard to get a NATO consensus on the road ahead, no matter how much arm twisting Washington uses on its European partners.

Europe is already in a recession thanks to the Covid catastrophe, the sanctions on Russian energy and the huge unemployment levels, which impact recent immigrants. The result of all that is social unrest across Europe. France is already experiencing a serious revolt, and while the French situation has eased in the past few days, it will come back.

Meanwhile, the German government coalition​ is steadily losing popular support and the AfD, Germany’s right-wing party, is now the second most popular party in the country. Olaf Scholz and his coalition partners don’t know what to do: they may try banning AfD as a last ditch effort. Italy is also far from out of the mess.

The country has a conservative leadership but is being battered by unprecedented waves of immigrants coming from the Middle East. 

The triumphs and question marks from this week's NATO summit - Atlantic Council
Biden at the 2022 NATO Summit. Photo: Screengrab / Twitter

Europe is out of money and out of bullets. It is not in a mood to give a blank check to Ukraine or risk a bigger war that might spread into Europe. President Biden will have a hard time trying to squeeze more from the Europeans.

Biden knows that he cannot unilaterally use US forces, especially airpower, without airbases and supply centers in Europe. Right now, Washington has a free hand because US warplanes are not bombing Russian positions in Ukraine. Bombing them, however, would force a strong European reaction and shatter NATO.

Ukrainian leader Volodymyr Zelensky has been pressuring Washington for advanced warplanes, saying airpower would make it possible for Ukraine to win. But the only practical way forward with that over the next year is to operate from bases outside of Ukraine using US and possibly other NATO aircraft.

This would certainly mean war in Europe and the currently ruling governments in Europe either would have to say no or face being removed by force. It is, therefore, an unlikely, if highly dangerous, scenario.

​Washington has already signaled that it has been unable to convince its partners about Ukrainian NATO membership. It is likely that behind the scenes Washington is trying to craft some sort of security guarantee for Ukraine, but any meaningful guarantee is probably a bridge too far.

Russia is also restive after the Yevgeny Prigozhin-led coup attempt. Putin wants a military victory soon, as does the Russian army, which was badly stressed by the Prigozhin accusations.

Holding the line against a Ukrainian counteroffensive is not really a victory for the Russians since their image remains tarnished at home. It is reasonable to expect, therefore, that once the Ukrainian losses mount up high enough in the coming weeks, the Russian army will make dramatic offensive moves against Ukraine.

The big unknown is what the Russian army will do: Will it launch a big attack on Kiev, Kharkiv or Odesa? If, after Vilnius, Moscow sees Zelensky without any expectation of NATO coming to save him, it will exploit the situation very quickly.

Part of the Western foundation for Ukraine’s offensive was the introduction of modern technology on the battlefield, represented especially by the appearance of the Leopard tank. Unfortunately for NATO, the Leopard tanks have not saved the day for Ukraine. 

So far, between 16 and 20 Leopards have been knocked out on the battlefield along with lots of other NATO-supplied armor, including infantry fighting vehicles such as the US Bradley and mine clearing systems like the Finnish Leopard 2R HMBV and the German Wisent 1.

Polish Leopard tanks arrive in Ukraine. Image: Substack

The Leopard and US Abrams main battle tank form the armor backbone of NATO’s land defense. 

While the US and its allies have superior airpower, they have sparse and inadequate air defenses compared with what Russia can bring forward. This means that a land defense needs to stand up to Russian attack helicopters armed with missiles, lethal drones and air-launched mines in addition to artillery.

The failure of the Leopard in Ukraine represents a huge challenge for NATO and signals that the current NATO “tripwire” strategy may not work. 

Under the tripwire paradigm, the idea is that an initial Russian attack (most likely in the Baltic states because Russian forces are very close to Estonia and Latvia) can be held for some days while the US ships heavy forces into Europe. But if the tripwire is illusory, then NATO is exposed to rapid Russian advances in Europe should an attack be launched.

The bottom line is that NATO’s strategy needs revision or, alternatively, that the Europeans and Russians need to work out a mutually acceptable security arrangement. It is exactly such an arrangement that Russia proposed to NATO in December 2021. It was rejected without discussion.

Now the ammunition cupboard is bare, even in the United States. The Russians are learning how to counter advanced Western systems, a negative development for NATO’s security. It could not be a worse time to risk Europe’s security on the basis of being able to stop a Russian attack.

It may be easy for British politicians to scream they want NATO to fight in Ukraine, but it isn’t London that is likely the first target of Russia’s missiles. Cracks in the alliance are emerging more quickly than anticipated, and Europe’s weak governments are in trouble.

It will be interesting to see how Vilnius plays out. It will certainly be a propagandistic show, but there is a good chance Vilnius will be a flop.

Stephen Bryen is a senior fellow at the Center for Security Policy and the Yorktown Institute. This article was originally published on his Substack, Weapons and Strategy. Asia Times is republishing it with permission.

Continue Reading

China bans some Japanese food imports over Fukushima water release

BEIJING: China’s customs authority on Friday (Jul 7) said it would ban food imports from 10 Japanese prefectures over Tokyo’s plan to release treated nuclear wastewater into the ocean. Japan’s planned, decades-long discharge of accumulated water from the devastated Fukushima nuclear facility has been approved by the International Atomic EnergyContinue Reading

Australians smash Tina Turner dancing world record

Thousands have come together to dance to the song ‘Nutbush City Limits’ in tribute to late singer Tina Turner, at Australia’s most remote music festival, the Big Red Bash.

5,838 participants danced for five minutes to set a new record for the largest Nutbush dance in the world, as adjudicated by the Australian Book of Records.

The ‘Nutbush’ has been dubbed Australia’s unofficial national dance and is often performed in Australian schools, weddings and gatherings.

Continue Reading