Commentary: A possible Trump win muddies an already-chaotic economic debate in China

WILL BEIJING’S PRIORITIES CHANGE?

Until recently, Xi’s stimulus was entirely a domestic affair.

Ministry-level officials have promised the largest one-time debt swap in recent years to improve municipal finances. The state will also buy unsold housing to stabilise property prices, as well as boost banks’ capital buffer to increase their willingness to lend in a weak economy.

All these are sensible blueprints to lift China out of deflation. 

But a Trump win can change Beijing’s priorities again. His hawkish rhetoric on Chinese imports, as well as the wide latitude that the US president enjoys in setting and imposing tariffs, directly threatens Xi’s ultimate passion of transforming China into a high-end manufacturing powerhouse.

China has certainly reacted to Trump’s moves before. After Huawei was placed on the US trade blacklist in 2019, state resources were poured into industrial upgrades. Huawei alone received over US$1 billion in government grants last year, more than quadruple the amount in 2019, in part a reflection that President Joe Biden has furthered Trump’s tough trade policies. 

Bank lending to industrial firms has also soared in that time; meanwhile, real estate developers are struggling to refinance. In July, the government said it would spend 300 billion yuan (US$42 billion) to expand an existing trade-in and equipment upgrade programme as a way to boost consumption but also to absorb industrial production.

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Commentary: A disastrous poll puts Japan politics on shaky path

But with the LDP having just held its largest, longest election to find a new figurehead, it’s unclear if there will be the appetite to go again. The party is said to be wary of the chaos of the post-Koizumi era in the late 2000s, when its constant chopping and changing of leaders ultimately evaporated public support, culminating in a loss of power in 2009.

It’s also possible that no leader could have avoided this result; in an alternate universe where Ishiba did not call a quick election, Yoshihiko Noda, the newly elected leader of the Constitutional Democratic Party of Japan, might have had time to coordinate with other opposition parties and boot the LDP out of power entirely. 

There also aren’t many great candidates waiting in the wings. Sanae Takaichi, who Ishiba beat in the runoff election last month, is divisive. Shinjiro Koizumi, the third leading candidate in September’s vote, might well have been a better look for the party – but as the election strategy chief presiding over this drubbing, he’s in no position to make his case to be leader (agreeing to take that role might be another example of his less-than-astute political instincts). 

And yet the LDP has little time to reorganise. There is an upper house election coming next summer, by which time the opposition parties may be able to form the alliances needed to win. Japan has little room for such interregnums. However you measure it, Ishiba doesn’t have time on his side. 

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Commentary: China’s lack of disclosure over ICBM test works against its own strategic interests

SINGAPORE: China’s rare intercontinental ballistic missile ( ICBM ) test last month in the South Pacific- its first in 44 years- has raised questions over Beijing’s strategic ambitions.

The defense ministry of China’s defense ministry made the sudden news on September 25 less than two days after the ICBM launched at 8:44 am from Hainan. Chinese state media reported that the weapon “fell into expected water areas” to have met the intended target.

Although no indicated directly, advertising information in French Polynesia indicated the missile landed near the state’s economic zone.

The offending object, most likely the Dong Feng-31AG ( DF-31AG ), was loaded with a dummy warhead rather than the 1-megaton fissile material this type of missile is supposed to carry because it traveled more than 11, 000 kilometers from its launch site, which is twice the range of the most basic ICBMs, which have a range of 5, 500 km.

The decision to fire the older ( meaning it is more secure ), but still potent, tool may be interpreted as Beijing placing a greater value on a more reliable means of demonstrating its military prowess to the United States and its allies in the Indo-Pacific if the ICBM in issue was truly a version of the DF-31, which first entered service nearly 20 years ago.

Beijing was praised by some US leaders for giving the Pentagon advance notice to prevent misinterpretation and erroneous calculations, in addition to claiming the check was “routine” and not directed at any country.

Additionally, France, Australia, and New Zealand claim to have been given a copy of the check in progress. Some of them, in their opinion, would have relayed the information to their regional counterparts as well as to important government operating in those waters and aircraft. Japan and the Philippines were also alerted about a potential” place debris” getting at sea a few days before, though it’s not clear if they were informed of this information immediately.

However, not everyone who believe they had a right to know was impressed. For one, the Kiribati leader criticized the Chinese government for failing to notify the Pacific Island position, and added that the test was a danger to “world peace and stability.” In reply, China’s ambassador that stated” there was no need to update Kiribati” since the exam targeted no one in that part of the world.

The People’s Liberation Army ( PLA ) fired an ICBM into the Pacific Ocean earlier in the year, but this episode has a much lower level of advanced strategic messaging.

One must go back to a day when China had just come out of Mao Zedong’s Cultural Revolution as his heirs sought to rehabilitate the nation with the world economy in order to understand the circumstances surrounding the former.

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Commentary: Newly elected and preparing for elections, Japan’s PM Ishiba is already on the defensive

Another thorny issue has raised questions about the demise of Japan’s” Three Non-Nuclear Rules,” which prohibit the possession of nuclear weapons, prohibits the production of nuclear weapons, and forbids the introduction of nuclear arms into the nation.

Nuclear sharing, in Mr. Ishiba’s opinion, do not violate the country’s non-nuclear principles because it would involve Japan participating in the decision-making process but not having nuclear weapons.

Nuclear posting is not a new concept, and it may be a part of Mr. Ishiba’s political support. Japan is wrestling with the problem of relying on the US to deter nuclear weapons while maintaining its commitment to a world without nuclear arms.

Former prime minister Shinzo Abe spearheaded it, which was later supported by conservative politicians, including Sanae Takaichi, Mr. Ishiba’s key LDP opponent. Mr Kishida, who hails from Hiroshima, was against the plan.

If Mr Ishiba’s management pushes these conversations ahead, the opposition will come from the government. Problems are growing in Nagasaki, a area affected by the nuclear weapon, and in Okinawa, which hosts a focus of US military bases. Locals worry that this will increase the load on military installations and cause the Three Non-Nuclear Rules to fall apart.

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Commentary: The Russian relationship with North Korea opens the door to further nuclearisation

North Korea will almost certainly demand priceless military equipment and supplies in return for its guidance, though there is little disagreement over how much money Russia may give away.

It’s probably concerned about denying its best technologies, because it’s worried ( perhaps appropriately ) that North Korea will proliferate anything it receives. Russia’s several opponents and companies, including China, had probably been willing to pay North Korea for Russian technology, if only to know what the Russians have. &nbsp,

Russia is in a difficult situation, though. The Ukrainian conflict has raged on for two and a half centuries. The costs of the conflict and the resultant global economic isolation are causing its economy to suffer. It is now incredibly dependent on Chinese support and compassion, which is likely to be very demeaning for a nation with great power ambitions.

A partnership with North Korea gives Russia an solution, at least diplomatically, to an uncomfortable dependency on Beijing.

So, if the conflict continues, Russia’s eagerness to trade useful technologies for assistance will likely improve. For its underprivileged business, North Korea will undoubtedly get Soviet food and oils.

According to South Korea, North Korea has now received more than 9, 000 pots from Russia, generally containing food items. However, advanced nuclear and missile technology are almost undoubtedly what it wants most. &nbsp,

For then that appears to be working. However, there is no guarantee that for swaps will not be conducted secretly, and it would surely make sense for North Korea to bargain for what it truly wants using Russian fervor. &nbsp,

Therefore, even if China agrees to cleavage the sanctions against North Korea, Russia’s open ties with North Korea, as demonstrated by the trips made by the two frontrunners in June, effectively signal the end of sanctions and the development of Russian military high technology if Russia becomes determined enough.

Robert Kelly ( @Robert_E_Kelly ) is a professor of political science at Pusan National University.

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Commentary: A stimulus is good, but China still faces a hard slog

SINGAPORE: In little more than a month, China’s efforts to pump up its economy&nbsp, have achieved anything critical: President Xi Jinping&nbsp, changed the conversation about global aspirations. The Federal Reserve, usually the main force driving industry attitude and forecasting, &nbsp, has organization. &nbsp,

That’s a huge change. For Beijing’s fame to last, it needs to not only provide what’s been flagged: Aggressive monetary easing, fiscal growth, innovative measures to support home buyers, money injections into lenders, and the creation of a market stabilisation fund. Authorities also now&nbsp, need to provide some delicious goals that defend the euphoria.

What does a triumph resemble, and is it only temporary or permanent?

There’s definitely loads of pleasure. Not only did Chinese shares boom, but all linked to the land, &nbsp, from metal ore to the Spanish currency, was &nbsp, propelled higher.

An “anything but China” mantra has been supplanted by “all-in, buy China”, Louis-Vincent Gave of Gavekal Research wrote in a note on Tuesday ( Oct 1 ). Beijing appears to have spooked investors into taking actions. &nbsp,

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Commentary: No one wants an Asian NATO, except Japan’s new PM Ishiba

The Cold War, which began with the US and the Soviet Union working together to defeat Nazi Germany in World War II, came about as a result of NATO’s establishment in 1949. NATO’s second secretary-general Hastings Ismay reportedly said that NATO was created to “keep the Soviet Union away, the Americans in, and the Germans down”.

As part of Washington’s isolation policy, NATO worked not just to support its member states, but also to examine the spread of communism.

Not everyone was convinced. European President Charles de Gaulle withdrawn France from NATO’s integrated military command in 1966 because he desired more freedom from the US. Emmanuel Macron, the present French president, sees a European military that is American-uniform, despite Paris ‘ return to NATO in 2009.

Many people believed that NATO’s anti-communist vision was superfluous after the end of the Cold War with the political upheavals in Eastern Europe in 1989 and the Soviet Union’s breakdown in 1991.

Strangely, NATO reinvented itself to support democracy and stability despite the presence of significant Russian threats, including military activities in the Balkans, the Middle East, South Asia, and Africa.

Despite this, many in Europe also question whether the US can be trusted to fulfill its NATO agreements, especially if Donald Trump is elected president once more after the November US election. The beach country of Japan, Japan, and the United Kingdom continue to be the most fervent supporters of NATO.

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Commentary: Japan’s new prime minister has barely the concept of a plan

Ishiba’s position on China is even harder to map out. He’s by turns hawkish and pragmatic, and seeks active diplomacy with Beijing that would benefit both sides – rhetoric that has changed little in almost a decade, the last time Ishiba held a significant position in the party – despite the geopolitical changes.

His self-styled identification with Tanzan Ishibashi, a journalist who became prime minister in the 1950s and who had promoted a pre-war “Small Japan-ism” that called to mind the Little Englanders of the 19th century who protested the British Empire’s expansion, might be the most telling:  A vision of Japan as an aloof country with strong borders but little ambition.

His economic policy is similarly slippery. He talks of boosting the lot of the less fortunate, and revitalising regions outside Tokyo. His political inspiration, the former prime minister Kakuei Tanaka, had similar promises – but also a plan to do so through great infrastructure projects such as the Shinkansen bullet train network.

FEW NEW IDEAS

If Ishiba has similar dreams, he’s not telling anyone. On Friday, he had few new ideas to help boost growth that is expected to be flat this year, and mostly called for continuing Kishida’s goal of raising wages.

In past remarks, as well as in his opposition to Abenomics, he has seemed to favour austerity. He has expressed support for Bank of Japan rate hikes, has said there’s room to raise both corporate and capital gains taxes, and has emphasised the importance of reducing Japan’s debt.

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Commentary: China’s removal of Japan seafood ban comes at a time of high bilateral tensions

A Chinese person killed a Japanese boy in Shenzhen the week before the announcement, according to a disturbing and horrible incident that occurred the week before the statement.

This came in the wake of a number of other incidents, including another stabbing incident and a number of Chinese martial provocations, that have drawn strong and supported criticism from the Asian media.

Beijing denied any connection between the seafood decision and the Shenzhen incident, but the removal gesture may be ( in part ) intended to reshape a deteriorating narrative in light of the growing Japanese public’s disapproval of China.

Institutions are proving more afraid than ever to give up liquidity for nothing in a time of heightened political conflict, even when that leverage is based on financially distorting behaviors that undermine the global trading system. In this instance, the decision might indicate Beijing’s desire to start a bilateral relationship repair after it has become somewhat defense.

This story may not be over however, given that Beijing’s announcement was only intended to start the removal process rather than an immediate removal. It at least demonstrates how economical statesmanship involves balancing stick and carrot, occasionally at the same time.

The University of Tokyo’s Research Center for Advanced Science and Technology is home to Victor Ferguson Postdoctoral Research Fellow. At the Australian National University’s School of Politics and International Relations, Darren Lim is the Top Lecturer. This remark first appeared on Lowy Institute’s website, The Interpreter.

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Commentary: Japan’s next leader will be different, and flawed

THE Common MAVERICK RAISING EYEBROWS

Given Trump’s interpersonal nature, he may perhaps understand Shigeru Ishiba’s speak of re-balancing Tokyo’s partnership with the US. Given Tokyo’s increasing significance in the US’s efforts to contain China, individuals in Washington might not be so confident.

Ishiba is well-known in military lines. However, his claims that he should review the Status of Forces Agreement and create an” Eastern NATO” to put Japan on equal terms with its safety guarantee are currently causing a stir in Washington. &nbsp,

Some conceited discussions about the risks a Chinese invasion of Taiwan might have on Japan, as well as comments that the nation is n’t just limited to supporting the US or expanding its influence there. &nbsp,

Ishiba’s economic claims even raise questions&nbsp, on his best time. Some of his arguments make me think about ending depreciation while concurrently calling for price increases to lower rates. &nbsp,

IT’S THE ECONOMY

The lack of an economic vision is n’t just limited to Ishiba, however. While each of the three represents a unique strand of conventional LDP financial thinking- liberal Koizumi, who sees growth prompted by sweeping reforms, spend-heavy Takaichi, who favours a return to easing, and financially careful Ishiba- their plans lack&nbsp, substance. &nbsp,

The next prime minister will probably live or fall on the market despite all the speak of issues like allowing married couples to stay independent surnames that dominate the hustings. Change may be great. But be cautious with your desires. &nbsp,

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