Now Japan, How Many Countries Will the US Push into China’s Arms?


We have posts on the US pushing China and Russia into each other’s arms to form a de facto alliance, Pakistan to China’s arms to become China’s iron brother, Iran to facilitate China’s connection to the Middle East. Now, Reuters says in its report “Japan PM Abe says visit to China being arranged for next month”, in spite of territorial dispute, “relations have stabilized recently amid intensifying U.S. trade pressure on both China and Japan”.

Obviously, the US is pushing Japan into China’s arms now!

If Japan is in China’s arms, the US will lose its foothold in Asia.

Comment by Chan Kai Yee on Reuters’ report, full text of which can be viewed at https://www.reuters.com/article/us-japan-china/japan-pm-abe-says-visit-to-china-being-arranged-for-next-month-idUSKCN1LS0AI

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Japan PM Abe says relations with China back on ‘normal track’: paper


September 2, 2018

TOKYO (Reuters) – Japanese Prime Minister Shinzo Abe expressed confidence in improving ties with China and said the countries’ relationship had returned to a “normal track”, in a newspaper interview published on Sunday.

Abe, who is expected to visit China at the end of October, was also quoted as saying he hoped to invite President Xi Jinping to Japan in the future.

His comments came amid intensifying U.S. trade pressure on Beijing and Tokyo that has raised concerns about protectionism and its impact on the global economy.

“Premier Li Keqiang visited Japan in May and the Japan-China relationship has completely returned to a normal track,” Abe told the Sankei newspaper.

Japan’s finance minister expressed similar optimism on Friday, saying the current round of financial dialogue with China was “extremely good”, and that both sides agreed to maintain cooperation in macro-economic policies and measures.

U.S. President Donald Trump has repeatedly threatened to impose tariffs as a key part of his economic message, singling out the U.S. auto sector trade deficit with Germany and Japan.

In his interview, Abe said he shared with Trump the larger goal of expanding trade and investment that would benefit both countries, but reiterated that he would not prioritize friendship over national interests in any discussions over trade.

Reporting by Mari Saito; Editing by Kim

Source: Reuters “Japan PM Abe says relations with China back on ‘normal track’: paper”

Note: This is Reuters’ report I post here for readers’ information. It does not mean that I agree or disagree with the report’ views.


Japan, China seek to restart, expand FX swap line in sign of warming ties


Yoshifumi Takemoto, Kazuhiko Tamaki August 21, 2018

TOKYO (Reuters) – Japan and China are in talks to resume a currency swap arrangement between their central banks and expand it roughly 10-fold, people with direct knowledge of the matter said, in a sign of warming ties between Asia’s two biggest economies.

The previous arrangement was allowed to expire in September 2013 amid a low point in Sino-Japanese ties. Relations had soured in recent years due to territorial disputes and tensions over Japan’s wartime history.
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Two Japanese officials with direct knowledge of the deal said China and Japan have begun discussing a resumption of the arrangement, with one saying the scale would be about 3 trillion yen (£23.24 billion), far bigger than the previous $3 billion line.

In case of financial turmoil, the swap could act as a safety net by providing yuan to Japanese banks operating in China and yen to Chinese businesses.

Chinese Premier Li Keqiang flagged the proposed resumption of the swap agreement with Japan in May. One Japanese source said Beijing was eager to resume the swap arrangement.

Kyodo News said on Tuesday a deal would be announced at a financial dialogue to be held in Beijing this month, but a Japanese finance ministry official said it was more likely that it would come at an upcoming Japan-China summit.

Tokyo is trying to arrange a meeting between Prime Minister Shinzo Abe and Chinese President Xi Jinping in October and wants to use the renewed swap agreement as a symbol of cooperation, Kyodo said, without citing sources.

The People’s Bank of China did not immediately respond to a faxed request for comment on Tuesday.

The swap was originally launched in March 2002 as part of multilateral currency swap lines known as the Chiang Mai Initiative, which was established in response to the Asian financial crisis in the late 1990s.

Reporting by Yoshifumi Takemoto and Kazuhiko Tamaki; Additional reporting Stanley White, Tetsushi Kajimoto and Beijing Newsroom; Editing by William Mallard and Sam Holmes

Source: Reuters “Japan, China seek to restart, expand FX swap line in sign of warming ties”

Note: This is Reuters’ report I post here for readers’ information. It does not mean that I agree or disagree with the report’ views.


Will US-China Trade War Grows into a World Trade War?


US President is putting pressures on almost all rich countries including all developed European countries, Canada, Japan and South Korea for reduction of US trade deficits with them. China is the first facing a trade war with the US but I pointed out in my post “Lucky! Thucydides Trap Leads to Trade instead of Military War” yesterday, Trump’s trade war aims first of all at stopping China’s rise so as to maintain US world hegemony. It is thus typically a war caused by Thucydides Trap.

The war may spread to other countries as China’s tariff increase on US goods may hurt other countries’ companies that produce goods for export to China from the US.

Reuters says in its report “German carmakers join American farmers on front line of U.S.-China trade war” yesterday, “Daimler on Wednesday cut its 2018 profit forecast while BMW, whose Spartanburg, South Carolina plant is the largest single exporter of vehicles in the United States, said it was looking at “strategic options” because of the threatened trade war.”

Chinese Communist Party (CCP) has three magic weapons, one of which is the United Front. US pressure on the above-mentioned countries provides China with the golden opportunity to form a united front in China’s trade war with the US.

The trick is to reduce the enemy and united with friends as much as possible so that China’s strength will be enhanced to the maximum while that of its enemy will be reduced to the minimum.

Chinese President Xi Jinping knows and can apply the trick well. While threatening the US with retaliation of tariff increase, he promises to carry on China’s reform to open wider to the outside world including reduction of tariffs on imports from countries other than the US.

Reuters says in its report “China’s Xi says has honored word on opening up economy” yesterday, “Chinese President Xi Jinping said on Thursday he had honored his word by taking action on steps to open up the country’s economy”.

If by so doing Xi is able to form a united front with the above-mentioned countries, the trade war will become a world war between the united front of China and those countries and the United State alone.

Comment by Chan Kai Yee on Reuters’ reports, full text of which can be respectively be viewed at https://www.reuters.com/article/us-usa-trade-china-xi/chinas-xi-says-has-honored-word-on-opening-up-economy-idUSKBN1JH1CD and https://www.reuters.com/article/us-usa-trade-china/german-carmakers-join-american-farmers-on-front-line-of-u-s-china-trade-war-idUSKBN1JH072.


China’s Busy Diplomacy to Grab World Leadership from the US


The US has to pursue isolation as world leadership is too heavy a burden and it has to boost its economic growth to maintain its number one status in world economy. That is certainly a correct move, but it gives China opportunity to grab world leadership from the US.

I have repeatedly warned China not to try to replace the US as world leader as it has not been strong enough yet, but China’s Xi seems precisely doing the opposite – making great efforts to grab from the US world leadership at least in economy and diplomacy.

Is Xi stupid in doing so? China’s gifted strategist Sun Tzu teaches us to maintain invincible position while not miss the opportunity to win. One relies on oneself to be invincible but cannot make one’s enemy lose the war, if there are no factors for the enemy to lose the war. That is why Sun Tzu says that one can know victory but cannot make victory.

Indeed one can play tricks to make one’s enemy commit mistakes and lose the war like what China’s gifted strategist Sun Bin did in his famous Battle of Maling. But what if the enemy would not be duped?

At the beginning of the Korean War, China’ talented general Peng Dehuai copied Sun Bin’s trick. His troops encountered South Korean troops first but retreated instead of winning an easy first battle as he had to avoid giving his enemy the impression that his troops were capable to fight.

On the contrary, he told his troops to throw things away while retreating to give General McArthur the false impression that his troops were in panic as they were afraid of well-equipped US troops. As a result, McArthur advanced rashly and had his troops encircled by Chinese troops. Peng’s surprise offensive caused US troops to collapse and retreat as fast as they could to the south of Seoul. The victory was brilliant, but what if General McArthur had not been arrogant but had stopped his rash advance and, instead, built fortifications along the frontline to keep the large part of North Korea he had occupied. With poor weapons, General Peng simply could not break US troops’ defense.

McArthur gave Peng the opportunity to win and Peng did not miss the opportunity to win though his troops were much weaker.

Now, China is not strong enough to win, but the US is giving China the opportunity to win. Shall China miss the opportunity? I pointed out in my post earlier that Chinese President Xi Jinping is a man of quick decision and quick actions. I now realize that Xi is taking the opportunity to win. That is why China has suddenly taken the initiative to improve relations with Japan, India and Indonesia, the most important nation of ASEAN. (See Reuters’ reports “China’s Xi, India’s Modi seek new relationship after summit” on April 28 at https://www.reuters.com/article/us-china-india/chinas-xi-indias-modi-seek-new-relationship-after-summit-idUSKBN1HZ019, “China Premier Li says open to increasing Indonesia palm oil import quota” on May 7 at “https://www.reuters.com/article/us-indonesia-china/china-premier-li-says-open-to-increasing-indonesia-palm-oil-import-quota-idUSKBN1I80RH and
“Japan, China hail warming ties amid troubled history” on May 9 at https://www.reuters.com/article/us-japan-china/japan-china-hail-warming-ties-amid-troubled-history-idUSKBN1IA1GF.

The busy diplomacy shows Xi’s efforts to grab world leadership from the US as US retreat in the world is giving China the opportunity to win. Japanese PM Abe in particular has failed sadly to persuade Trump to return to the Trans-Pacific Partnership (TPP) and has now to focus on ASEAN + three (China, Japan and South Korea), where China will certainly be the leader.

Under such circumstances, China may not allow the US to defeat it in trade war or how can China make others believe that it is a real rival to the US?

Comment by Chan Kai Yee on Reuters’ reports


India and China Have Eased Border Tension


Friendly meeting between Indian and Chinese border troops
Times of India’s photo

China and the US both have tried hard to win India to its side.

The US has been exploiting India’s border disputes with China to draw India into its quad to confront China. It promised to provide India with high weapon technology to attract India to participate in its quad, especially to play a major role in containing China.

Indian Prime Minister is very shrewd. He certainly wants to get US weapon technology, but refuses to be in the forefront of quad to confront China; therefore he refused Australia’s requests to join India’s naval drill with the US and Japan.

Sorry there can be no quad to contain China as a part of it Australia is missing. The US is now playing quad as sadly as playing bridge with only three people! Moreover, the other two Japan and India wanted quad to prevent the threat of a rising China while anxious to benefit economically from China’s rise. It seems that only the US sincerely wants the quad.

China has been trying hard to solve its border disputes with India and win over India to participate in its Belt and Road initiative.

Now, according to Times of India report “India, China hold border personnel meet at Chusul in Ladakh”, Chinese and Indian troops have been making efforts to ease border tension since the recent informal summit between Indian Prime Minister Modi and Chinese President Xi Jinping, during which the two leaders agree to ease border tension.

The report says, “Armies of India and China on Tuesday held a Border Personnel Meeting (BPM) during which both sides resolved to maintain peace and tranquillity along the Line of Actual Control, besides agreeing to work on additional confidence building measures.”

The BPM was held at Wacha border post in Kibithu, Arunachal Pradesh on Labor Day where the two sides celebrated the festival and exchanged gifts.

The report says, “The two sides hold BPM at five points — Daulat Beg Oldie in northern Ladakh, Kibithu in Arunachal Pradesh, Chusul in Ladakh, Bum-La near Tawang in Arunachal Pradesh and Nathu-La in Sikkim.

In fact, the border disputes are easy to resolve as the disputed area are poor barren areas with few natural resources. Sandwiched between China and its iron brother Pakistan, India will find itself lucky if the two iron brothers earnestly want peace with it. In fact, India is very clear that the other three of the quad will not join India in resisting the two iron brothers if they attack it.

Xi and Modi are successful in their efforts to ease border tension.

On the other hand, China’s Belt and Road initiative is very attractive. Can India keep on opposing it when the initiative has brought prosperity to its neighbors Pakistan, Sri Lanka, Bangladesh and Maldives?

The US wants to make others believe that China’s Belt and Road is predatory to make its neighbors heavily in debts in order to control them. What will China benefit from such an outcome? It will suffer huge financial losses but get nothing but the troubles to deal with the political instability caused by their insolvency. Only the US wants such control but has ended up in financial difficulties in both itself and the countries under its control.

China wants the countries that have joined its Belt and Road to prosper so that they will provide huge markets for Chinese goods. Moreover, Chinese investments there will bring China windfall returns if they become prosperous.

India will finally join the Belt and Road when it sees with envy the prosperity brought to its neighbors by China’s Belt and Road initiative.

Comment by Chan Kai Yee on Times of India’s report, full text of which can be viewed at https://timesofindia.indiatimes.com/india/india-china-hold-border-personnel-meet-at-chusul-in-ladakh/articleshow/63990171.cms.


Determined to Fight Trade War with US China Is Forming United Front


United front is one of Chinese Communist Party’s three magic weapons in its war of resistance against Japan and civil war against KMT. China’s busy diplomatic activities to form a united front against US protectionism now raises the questions: Is China determined to fight the trade war with the US so that it is forming an international united front against US protectionism?

Reuters says in its report “China fans trade dispute with hefty deposit on U.S. sorghum imports” yesterday that China slaps 178.6 percent deposit on imports of U.S. sorghum in retaliation of US tariff increase on Chinese exports. China justified its move by the finding of its investigation on US dumping of sorghum, but media regards the move as an obvious counter measure against US sharp increase in tariffs on China’s solar panels and washing machines.

Chinese President Xi Jinping promised reform measures that may ease US complaints and thus gave rise to hope that there would not be a trade war between China and the US as Xi is making concessions to satisfy the US. The sorghum move proves that Xi’s policies aim at pleasing EU and Japan for the establishment of an anti-protectionism united front against the US. That perhaps will be China’s way to subdue the enemy with diplomacy.

Reuters says in its report “Exclusive: China seeks trade firewall with U.S. allies in rush of ambassador meetings – sources” on April 17, 2018, “China’s international trade representative held a series of meetings with the ambassadors from major European nations last week to ask them to stand together with Beijing against U.S. protectionism, according to four sources familiar with the discussions.” Xi’s promise at Boao Forum on further opening obviously aimed at winning over EU to join China’s united front against the US.

On the other hand, China’s sudden warming up of its relations with Japan is obviously China’s such diplomacy too. Chinese Foreign Minister Wang Yi’s sudden visit to Japan and his joint statements with his Japanese counterpart on opposition to protectionism proves that China has won over Japan as Japan is also US President Trump’s target of protectionism. Reuters covers Wang’s visit in its report “Japan and China’s foreign ministers pledge to pursue improved ties” on April 15, 2018 and “Japan, China agree trade war will harm global economy” on April 16, 2018.

Comment by Chan Kai Yee on Reuters’ reports.