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  • G7 vs China: US, Europe unite in tough messaging against Beijing

    G7 vs China: US, Europe unite in tough messaging against Beijing

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    HIROSHIMA, Japan — China on Saturday faced a strong pushback from the Group of Seven countries over its stances on Russia, Taiwan, trade bullying, economic monopoly and domestic interference, with the G7 leaders’ statement reflecting a broad convergence of the U.S., Europe and Japan on a need to change tack.

    Issued around the time of Ukrainian President Volodymyr Zelenskyy’s arrival in Hiroshima, where the summit is taking place, the statement by leaders of the G7 wealthy democracies asked Beijing to do more to stop Russia’s war on Ukraine.

    “We call on China to press Russia to stop its military aggression, and immediately, completely and unconditionally withdraw its troops from Ukraine,” the leaders said in the statement. “We encourage China to support a comprehensive, just and lasting peace based on territorial integrity and the principles and purposes of the U.N. Charter, including through its direct dialogue with Ukraine.”

    Crucially, the U.S. and Europe — the two main constituents of the G7 — came round to a common set of language on China. For France and Germany, in particular, their focus on a conciliatory attitude to China was reflected in the final statement, which began the China section by stating “We stand prepared to build constructive and stable relations with China.”

    The G7’s repeated emphasis of “de-risking, not decoupling” is a nod to the EU approach to China, as European member countries are wary of completely cutting off business ties with Beijing.

    The language on Taiwan remained the same compared with recent statements. “We reaffirm the importance of peace and stability across the Taiwan Strait as indispensable to security and prosperity in the international community,” the statement said, adding there’s “no change in the basic positions” in terms of the one China policies.

    Domestic interference

    Apart from Russia, another new element this year is the mention of domestic interference — which human rights groups say is a reflection of the growing concern about China’s “overseas police stations” in other countries. “We call on China … not to conduct interference activities aimed at undermining the security and safety of our communities, the integrity of our democratic institutions and our economic prosperity,” the leaders said in their statement, citing the Vienna Convention which regulates diplomatic affairs.

    On global economics, both sides of the Atlantic and Japan now see the need to fundamentally change the overall dynamic of economic globalization, placing security at the front of policy considerations.

    “Our policy approaches are not designed to harm China nor do we seek to thwart China’s economic progress and development. A growing China that plays by international rules would be of global interest,” the G7 leaders said in the statement.

    “We are not decoupling or turning inwards. At the same time, we recognize that economic resilience requires de-risking and diversifying. We will take steps, individually and collectively, to invest in our own economic vibrancy. We will reduce excessive dependencies in our critical supply chains,” they said.

    One central theme is economic coercion, where China has punished a wide range of countries — from Japan and Australia to Lithuania and South Korea — over the decade when political disagreements arose.

    The G7 countries launched a new “coordination platform on economic coercion” to “increase our collective assessment, preparedness, deterrence and response to economic coercion,” according to the statement. They also plan to coordinate with other partners to further the work on this.

    For France, the focus on a conciliatory attitude to China was reflected in the final statement, which began by stating “We stand prepared to build constructive and stable relations with China” | Pool phot by Stefan Rousseau/Getty Images

    The joint call for diverse sources of critical minerals, while stopping short of naming China, is widely seen as targeted against the Asian superpower that controls, for instance, 70 percent of global rare earths output. The G7 countries “support open, fair, transparent, secure, diverse, sustainable, traceable, rules and market-based trade in critical minerals” and “oppose market-distorting practices and monopolistic policies on critical minerals,” according to the statement.

    They also vow to deliver the goal of mobilizing up to $600 billion in financing for quality infrastructure through the Partnership for Global Infrastructure Investment, a rival to China’s Belt and Road initiative. “We will mobilize the private sector for accelerated action to this end,” they said.

    In a bilateral in Hiroshima, British Prime Minister Rishi Sunak and French President Emmanuel Macron “welcomed the strong unity of purpose at the G7 on … our collective approach to the economic threat posed by China,” a spokesperson for Sunak’s office said.

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  • Russia warns West sending F-16s to Ukraine ‘carries enormous risks’: TASS

    Russia warns West sending F-16s to Ukraine ‘carries enormous risks’: TASS

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    The West’s effort to potentially send modern fighter jets to Ukraine “carries enormous risks,” Russia’s Deputy Foreign Minister Alexander Grushko warned on Saturday, according to Russian state news agency TASS.

    The minister’s comments in an interview with TASS come in the wake of the U.S. getting behind a joint international effort to train Ukrainian pilots to use modern fighter aircraft including F-16s. This could also pave the way to eventually send advanced Western combat jets to Ukraine, according to a senior administration official. 

    Ukrainian President Volodymyr Zelenskyy welcomed the U.S. decision in a tweet on Friday, saying that it “will greatly enhance our army in the sky.” He added that he counted on discussing “the practical implementation of this decision” at the G7 summit in Hiroshima, Japan. 

    “We can see that Western countries continue to stick to an escalation scenario, which carries enormous risks for them,” Grushko said in the interview. “In any case, we will take it into account when making plans. We have all the necessary means to achieve our goals,” he added. 

    The decision from the U.S. follows a concerted effort by Ukraine to get its allies to supply its military with modern jets, in particular the U.S.-built F-16s.

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  • Ukraine says it still has toe-hold in Bakhmut despite Putin’s ‘liberation’ claim

    Ukraine says it still has toe-hold in Bakhmut despite Putin’s ‘liberation’ claim

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    KYIV — Ukraine said its forces still control a small part of Bakhmut despite Russian President Vladimir Putin on Sunday hailing the “liberation” of the embattled eastern Ukrainian city by Russian forces.

    Asked on Sunday if Russians had taken Bakhmut, Ukrainian President Volodymyr Zelenskyy responded “I think no,” at a press conference at the G7 meeting in Hiroshima, Japan.

    Russia’s Wagner mercenary force on Saturday claimed the capture of the industrial city in the Donbas region, which has been at the center of some of the fiercest fighting in Moscow’s invasion of Ukraine.

    Putin on Sunday congratulated the Wagner paramilitary group and the Russian army “on the completion of the operation to liberate” Bakhmut, according to a statement on the Kremlin’s website.

    But Ukrainian officials said several buildings in the southwestern part of the city remain under Kyiv’s control.

    “It is a small area that remained under our control, but Bakhmut fulfilled its key task. We managed to hold the enemy — for more than nine months — and inflicted colossal losses on the Kremlin’s most important strike force, Wagner mercenaries,” Serhiy Cherevatyi, spokesman for Ukraine’s eastern command, told POLITICO on Sunday.

    There was some confusion about Zelenskyy’s remarks in Japan, but his spokesman Sergii Nykyforov clarified that the president had denied that Moscow had full control over Bakhmut.

    While speaking to reporters at the G7 summit on Sunday, Zelenskyy was asked: “Is Bakhmut still in Ukraine’s hands? Russians say they’ve taken Bakhmut.” Zelenskyy responded: “I think no. But you have to understand they destroyed everything. There’s nothing left. It is a tragedy.”

    “For today Bakhmut is only in our hearts. There’s nothing in that place. Just a lot of dead Russians,” Zelenskyy said.

    Later in Hiroshima, Zelenskyy specified that Bakhmut has not been fully captured by Russian forces. “We’re fighting still, and holding defense thanks to our warriors,” he said. 

    Cherevatyi, the eastern command spokesman, said Ukrainian forces are making gains around Bakhmut. “The situation is hard, but it is under control. As we are attacking the enemy on southern and northern flanks around the town,” he said.

    “During the last 24 hours, we managed to advance 200 meters on average from the southern and northern flanks,” Cherevatyi said.

    He said the main goal of the Ukrainian army in Bakhmut was to destroy Wagner mercenaries, a private Kremlin-linked paramilitary group financed by Russian oligarch Yevgeny Prigozhin. “They showed themselves as the most combat-ready and effective force of the Russian army. And now they are almost destroyed,” Cherevatyi said.

    On Saturday, Prigozhin had said in a video posted on Telegram that Bakhmut came under complete Russian control around midday Saturday.

    Earlier this month, Wagner commanders accused Moscow of artificially creating shell shortages for the mercenary force and causing mass casualties. Wagner accused the Kremlin of being jealous of the group’s successes on the front lines, particularly after defense ministry units were forced to retreat from Kharkiv and Kherson during Ukraine’s September 2022 counteroffensive.

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    Veronika Melkozerova

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  • UN chief backs reform of Security Council, global financial system

    UN chief backs reform of Security Council, global financial system

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    United Nations Secretary-General António Guterres backed the reform of the U.N. Security Council and the international financial system to align them with the “realities of today’s world.”

    Both the U.N. body and the financial architecture reflect the power relations of 1945 and need to be updated, Guterres told a press conference Sunday on the margins of the G7 summit in Hiroshima, Japan, according to Reuters.

    “The global financial architecture is outdated, dysfunctional and unfair,” Guterres said. “In the face of the economic shocks from the COVID-19 pandemic and the Russian invasion of Ukraine, it has failed to fulfill its core function as a global safety net.”

    Guterres made the same point on Saturday, writing in a tweet that it was “time to think seriously about the reform” of the international financial architecture.

    The U.N. Security Council came under fire in April when Russia assumed the rotating presidency of the 15-member body despite the fact that 141 countries condemned its aggression on Ukraine. Experts have claimed that Russia’s veto in the Security Council undermines the U.N.’s effectiveness on the international stage.

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    Gregorio Sorgi

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  • China fears threaten to shatter G7 unity

    China fears threaten to shatter G7 unity

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    HIROSHIMA, Japan — As the leaders of the Group of Seven gather for their annual summit in Japan this week, three world-changing conflicts — past, present and potential — will converge. 

    The atomic bomb that ended World War II destroyed much of the city of Hiroshima, where the leaders will meet. Today, Russia’s war in Ukraine is costing thousands of lives and billions of dollars as it drags on. And then there’s the risk of another horrifying catastrophe to come, as China threatens Taiwan. 

    And it’s over China where the alliance may come unstuck. 

    For hawks like the U.S. and Japan, the summit beginning Friday offers a timely opportunity to make the case to Europe’s leaders directly that it’s time to get off the fence when it comes to confronting China. 

    “This G7 Summit will be an appropriate venue to also discuss security issues and our security cooperation not only in Europe, but also in the Indo-Pacific region,” Noriyuki Shikata, cabinet secretary at the Japanese prime minister’s office, told POLITICO. 

    The U.S. is betting on at least the appearance of common ground with allies about the People’s Republic of China. Ahead of the summit, U.S. National Security Council spokesperson John Kirby told reporters: “You can expect to hear at the end of those discussions that all the G7 leaders are of a common mind about how to deal with the challenges that the PRC presents.”

    But — beyond the inevitably bland diplomatic lines of a summit communique — getting consensus on meaningful security measures for the Indo-Pacific region will be hard, even in the symbolic setting of Hiroshima. 

    East Asia is again descending into a state of growing security risks and military imbalance, this time due to China’s aggressive moves against Taiwan and the South China Sea. 

    “There’s a feeling that there’s a little bit of a gap, perhaps, between where the Europeans are on some China issues and where the U.S. is,” said Zack Cooper, former aide to the U.S. National Security Council and a senior fellow at the American Enterprise Institute. 

    Chief among the points of tension is how far to go in trying to stop a potential Chinese invasion of Taiwan, which could trigger world war and wreck the global economy. The self-governing island, which Beijing claims as its own, provides most of the world’s advanced computer chips that are vital to the tech and defense industries. Not all European governments are convinced it’s something they need to prioritize. “It’s going to be a continuing challenge,” Cooper said. 

    Picking friends

    NATO is set to extend its footprint in Asia and set up a new liaison office in Tokyo to better coordinate with regional partners, such as Australia, South Korea and New Zealand. 

    However, French President Emmanuel Macron has repeatedly called on NATO to focus only on the Euro-Atlantic theater, saying Asia — China — is not covered geographically. He also triggered an outcry with recent comments to POLITICO, suggesting that Taiwan’s security was not Europe’s fight, and that the EU should not automatically follow America’s lead.  

    Justin Trudeau comes to the G7 following months of intelligence leaks that have painted his government as weak on foreign interference | Yuchi Yamazaki/AFP via Getty Images

    Macron’s stance sets France — which is the EU’s biggest military power — apart from the U.S. and Japan, and also from the U.K., where Prime Minister Rishi Sunak is expected to announce a new security deal with Japan during his visit.

    “Ukraine today could be East Asia tomorrow,” Japanese Prime Minister Fumio Kishida said last year, not long after Russia’s full-scale invasion began. Last week, Japan’s Foreign Minister Yoshimasa Hayashi made an even more explicit warning in a speech made to his 27 EU counterparts in Sweden.

    “China is continuing and intensifying its unilateral attempts to change the status quo by force in the East and South China Seas. China is also increasing its military activities around Taiwan,” Hayashi said. “In addition, China and Russia are strengthening their military collaboration, including joint flights of their bombers and joint naval exercises in the vicinity of Japan.”

    The Chinese-Russian ties will be part of the G7 leaders’ discussions, according to two officials involved in the process, who spoke on condition of anonymity because summit preparations are not public. While the Chinese authorities stop short of openly arming Russia in its war against Ukraine, a long-term strategic partnership between Beijing and Moscow is unshakable for President Xi Jinping.

    G7 countries such as the U.S. and Japan are expected to raise the need to sanction countries that work around Western trade restrictions on Russia, according to the officials. Chinese companies found to be selling dual use goods to Russia would be a top focus. 

    Bully tactics

    China’s willingness to throw around its economic weight is one area where there’s likely to be more unity between G7 allies. 

    The need to fight back against economic coercion will take center stage at the summit. The EU, U.S., Canada and Japan are going to rally around calls to combat China’s use of its economic power to bully smaller economies that act against its political interests.

    “The sense of urgency and unity is a force factor in and of itself. For example, never before has the G7 addressed economic coercion,” Rahm Emanuel, the U.S. ambassador to Japan, told POLITICO. 

    “When measured against the recent past, the G7 and EU are more strategically aligned in key economic and military matters,” added Emanuel, who served as chief of staff to former U.S. President Barack Obama.

    When it comes to the European view, EU Commission President Ursula von der Leyen is clear that the bloc is “competing with China” and will need to up its game. “We will reduce strategic dependencies — we have learned the lessons of the last year,” she said in a press conference ahead of the trip.

    Justin Trudeau, the Canadian prime minister, comes to the G7 following months of intelligence leaks that have painted his government as weak on foreign interference, specifically from China. He’ll be carrying Canada’s message that it can be a safe, non-authoritarian alternative to Russia and China for supplying critical minerals and energy, including nuclear power. 

    Despite the toughening rhetoric on China, what still unites the G7 countries is an eagerness not to shut the door on talks with Beijing. 

    US President Joe Biden arrives to attend the G7 Summit in Hiroshima on May 18, 2023 | Brendan Smialowski/AFP via Getty Images

    The Biden administration has for months been seeking to secure a visit to China for top Cabinet members, such as Treasury Secretary Janet Yellen. Biden’s national security adviser, Jake Sullivan, held eight hours of talks with the Chinese Communist Party’s foreign policy chief, Wang Yi, this month. 

    Just before he left for Japan on Wednesday, U.S. President Joe Biden was asked whether his last-minute decision to truncate his trip abroad could be seen as “almost a win for China.” Instead of staying in the region for a summit of the Quad — Japan, India, the U.S. and Australia — Biden plans to return to Washington Sunday to deal with domestic issues. 

    The president downplayed the move as something China could use to its advantage, noting he will still meet with Quad nation leaders in Japan. “We get a chance to talk separately at the meeting,” he said

    Then, Biden was asked whether he has plans to speak with the Chinese president soon.

    “Whether it’s soon or not, we will be meeting,” he said, before leaving the room. 

    Cristina Gallardo in London and Zi-Ann Lum in Ottawa contributed reporting.

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    Eli Stokols, Phelim Kine and Stuart Lau

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  • Brazen, amateurish Tokyo heist highlights rising trend as Japan’s gangs lure desperate youth into crime

    Brazen, amateurish Tokyo heist highlights rising trend as Japan’s gangs lure desperate youth into crime

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    Tokyo — When three men armed with crowbars ransacked a luxury watch shop in broad daylight in Tokyo’s posh Ginza shopping district this week, onlookers stood by and watched the heist play out in baffled amazement.

    Dressed in black outfits and white costume masks, the thieves smashed through the Quark watch store’s showcases on a heavily traveled street, undeterred by blaring security alarms and rubbernecking passersby. Several witnesses recorded the whole heist on their phones, right up until the thieves ran to their rented getaway van and then sped through a red light, door still open, to escape.

    JAPAN-CRIME-ROBBERY
    Police officers conduct investigations at the crime scene following the robbery of a luxury watch store in Tokyo’s Ginza shopping district, May 8, 2023.

    KAZUHIRO NOGI/AFP/Getty


    Local networks said the hapless thieves, pursued by at least four patrol cars, likely drove right past the imposing National Police Agency headquarters and the country’s parliament.

    Trapped in a dead-end alley not even two miles away, the suspects scattered on foot – still being recorded on various dumbstruck witnesses’ smartphones. One surrendered after literally being talked off a ledge. Another hysterically begged police to stop hurting him while he was being subdued. Less than an hour after the episode began, all four, including the getaway driver, were in custody.

    Police have recovered about 70 of the nearly 100 watches stolen, worth more than $700,000.

    All of the suspects are between the ages of 16 and 19.

    “Yami-baito”: Exploitation for crime

    The young bandits have told police they were strangers who met for the first time on the “job.” The utterly brazen, strangely amateurish heist bore all the hallmarks of yami-baito, or black-market part-time jobs, an increasingly lucrative angle for criminal groups allowing them to outsource scams and burglaries to the young, naïve and financially desperate. With the use of yami-baito, it’s possible for such gangs to do the crime without doing the time.

    Yami-baito ads reel in pawns with promises like “Big money!”, “Fast cash,” and “Beginners welcome.”

    Rolex store robbed by minors in Tokyo
    View of the interior of the luxury store robbed by minors the day before, in Tokyo, Japan’s Ginza shopping district, May 9, 2023. 

    David Mareuil/Anadolu Agency/Getty


    The Yomiuri newspaper, citing police statistics, noted about 50 yami-baito-related robberies and thefts starting in mid-2021. Many of those arrested were in their teens and twenties. Another group of youths, who fomented a crime wave stretching across six of Japan’s prefectures, said they had been hired via Instagram.

    University of Shizuoka professor Hiroshi Tsutomi told the newspaper the youths “apparently feared their ringleader more than the threat of arrest.” Rising poverty coupled with the ease of online recruiting, he said, was making young people easy marks to serve as “disposable” tools for experienced organized crime groups.

    The watch store heist was the fifth similarly brazen robbery carried out by amateurs hitting precious metal dealers or jewelers in Tokyo since March. A dumbfounded investigator told the Tokyo Shimbun newspaper that “young people don’t seem to understand this crime will definitely get them arrested.”

    A fast-growing trend

    Tokyo’s Metropolitan Police said they found nearly 3,500 yami-baito listings on Twitter last year, reflecting a year-on-year increase of more than 50% despite efforts to stamp out the ads. Yami-baito crime rings have been known to advertise even on legitimate job-listing websites.

    ginza-tokyo-robbery-van.jpg
    An image from video shows the van used as a getaway vehicle by four suspects in the brazen robbery of a luxury watch store in Tokyo, Japan’s Ginza shopping district on May 8, 2023.

    TV Tokyo/Reuters


    When reporters from the Mainichi newspaper applied for yami-baito jobs, they were immediately directed to communicate via the encrypted Telegram app, and offered work as phone scammers earning more than $20,000 a month.

    Baited and blackmailed

    Police say that once someone is lured into such work, threats, even subtle ones, against their family are used to keep them under the thumb of the orchestrating crime groups.

    In one typical case, police arrested 20-year-old Yuna Hatakenaka in late April. She told police she “realized it was a scam, but I had already given (the crime group) my photo ID and a video of my parents’ home, so I felt I had no choice but commit the crime.”

    She and accomplices, impersonating police officers, had conned an elderly woman into handing over her bank ATM cards.

    Former prosecutor Mikio Uehara said the crime groups exert “mental control that makes it so that those caught up in them can’t even think of saying they will leave.”

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  • Exclusive: Japan is in talks to open a NATO office as Ukraine war makes world less stable, foreign minister says | CNN

    Exclusive: Japan is in talks to open a NATO office as Ukraine war makes world less stable, foreign minister says | CNN

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    Tokyo
    CNN
     — 

    Japan is in talks to open a NATO liaison office, the first of its kind in Asia, the country’s foreign minister told CNN in an exclusive interview on Wednesday, saying Russia’s invasion of Ukraine has made the world less stable.

    “We are already in discussions, but no details (have been) finalized yet,” Foreign Minister Yoshimasa Hayashi said on Wednesday.

    Hayashi specifically cited Russia’s invasion of Ukraine last year as an event with repercussions far beyond Europe’s borders that forced Japan to rethink regional security.

    “The reason why we are discussing about this is that since the aggression by Russia to Ukraine, the world (has) become more unstable,” he said.

    Ukrainians fleeing war find asylum in unexpected Asian country (June 2022)

    “Something happening in East Europe is not only confined to the issue in East Europe, and that affects directly the situation here in the Pacific. That’s why a cooperation between us in East Asia and NATO (is) becoming … increasingly important.”

    He added that Japan is not a treaty member of NATO, which stands for the North Atlantic Treaty Organization – but that the move sends a message the bloc’s Asia Pacific partners are “engaging in a very steady manner” with NATO.

    The opening of a NATO liaison office in Japan would mark a significant development for the Western alliance amid deepening geopolitical fault lines, and is likely to attract criticism from the Chinese government, which has previously warned against such a move.

    The Nikkei Asia first reported plans to open the office in Japan last Wednesday, citing unnamed Japanese and NATO officials.

    NATO has similar liaison offices in other places including Ukraine and Vienna. The liaison office in Japan will enable discussions with NATO’s security partners, such as South Korea, Australia and New Zealand, on geopolitical challenges, emerging and disruptive technologies, and cyber threats, Nikkei reported last week.

    In a statement to CNN last week, a NATO spokesperson said: “As to plans to open a liaison office in Japan, we won’t go into the details of ongoing deliberations among NATO allies.” She added that NATO and Japan “have a long-standing cooperation.”

    CNN reached out to NATO for comment on Wednesday after Hayashi’s remarks.

    Russia’s invasion of Ukraine sent shockwaves through Europe and drove non-aligned Finland and Sweden to abandon their neutrality and seek protection within NATO, with Finland formally joining the bloc last month.

    The war has also seen countries like Japan and South Korea draw closer to their Western partners, while presenting a united front against perceived threats closer to home.

    Speaking to CNN on Wednesday, Hayashi highlighted what he described as Japan’s “severe and complex” regional security environment, noting that in addition to increased Russian aggression, Tokyo is also contending with a nuclear-armed North Korea and a rising China.

    China has been growing its naval and air forces in areas near Japan while claiming the Senkaku Islands, an uninhabited Japanese-controlled chain in the East China Sea, as its sovereign territory. In the face of growing friction, Japan recently announced plans for its biggest military buildup since World War II.

    Tensions between Japan and Russia have also been increasing in recent months, fueled in part by Russian military drills in the waters between the two nations, and joint Chinese-Russian naval patrols in the western Pacific close to Japan.

    In April, Russian warships conducted anti-submarine exercises in the Sea of Japan, also known as the East Sea – and in March, Russian missile boats fired cruise missiles at a mock target in the same waters. And after Japanese Prime Minister Fumio Kishida made a surprise visit to Ukraine in March, two Russian strategic bombers, capable of carrying nuclear weapons, flew over waters off the Japanese coast for more than seven hours, Reuters reported.

    Despite the growing regional tensions, Hayashi said the potential opening of the office was not aimed at specific countries. “This is not intended…to be sending a message,” said Hayashi.

    He added that Japan and other countries still need to cooperate with China on larger issues such as climate change and the Covid-19 pandemic, and that Tokyo wanted a “constructive and stable relationship” with Beijing.

    Members of the Japan Ground Self-Defense Force disembark from a V-22 Osprey aircraft during a live fire exercise in Gotemba, Japan, on May 28, 2022.

    China has previously warned against NATO expanding its reach into Asia and responded angrily to previous reports on the possible Japan office.

    “Asia is a promising land for cooperation and a hotbed for peaceful development. It should not be a platform for those who seek geopolitical fights,” said Chinese Foreign Ministry spokesperson Mao Ning in a briefing last week. “NATO’s eastward push and interference in Asia Pacific matters will definitely undermine regional peace and stability.”

    Though Beijing has claimed impartiality in the Ukraine war and no advance knowledge of Russia’s intent, it has refused to condemn Moscow’s actions. Instead, it has parroted Kremlin lines blaming NATO for provoking the conflict – further fracturing relationships with both Europe and the US.

    And in March, senior Chinese Foreign Ministry officials and influential Communist Party publications accused the United States of seeking to build a NATO-like bloc in the Indo-Pacific, with one official warning of “unimaginable” consequences.

    On Wednesday, Hayashi played down concerns that opening a Tokyo NATO office could further inflame tensions, saying: “I don’t feel that’s the case.”

    The country has had a pacifist constitution since World War II – which he argued is reflected in this move.

    “We are not offending anyone, we’re defending ourselves from any kind of interference and concerns, and in some cases threats,” he said.

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  • Foreign businesses in China fear they’re being targeted in a ‘campaign’ of government crackdowns. It’s probably not that simple.

    Foreign businesses in China fear they’re being targeted in a ‘campaign’ of government crackdowns. It’s probably not that simple.

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    Foreign investors and businesspeople with exposure to China are becoming increasingly unnerved. And for good reason.

    In March, Chinese authorities detained an employee of Japanese drug manufacturer Astellas Pharma JP:4503 ALPMY for alleged espionage violations. The Chinese seem confident in their case. Beijing’s ambassador to Japan said there was ample evidence of wrongdoing, and, despite the uproar, the Astellas employee remains detained.

    That…

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  • Weird and wonderful trains that break the rules | CNN

    Weird and wonderful trains that break the rules | CNN

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    Editor’s Note: Sign up for Unlocking the World, CNN Travel’s weekly newsletter. Get the latest news in aviation, food and drink, where to stay and other travel developments.



    CNN
     — 

    Whether we call them railways or railroads, we’re all familiar with the concept – big, heavy vehicles that can’t climb steep hills, running on two steel rails. That’s the pattern, right?

    Well, railway technology is more versatile than you think. Over the last 200 years it has evolved to conquer cities, mountains, deep mines and some of the world’s most extreme climates. Here’s a selection of unusual railways that break the rules in order to reach the places other trains can’t roll.

    If ever a railway was perfectly suited to its environment, it’s the legendary Schwebebahn monorail in Germany’s North Rhine-Westphalia region. Built to link several industrial towns along the narrow, twisting valley of the Wupper river, the suspended monorail was completed in 1901 and was instrumental in the growth of the towns, which eventually merged to become the city of Wuppertal in 1929.

    It might look unusual to visitors, but to the people of Wuppertal it’s the backbone of the city’s transit network, gliding up to 40 feet above congested streets to offer fast, direct journeys along an eight-mile route.

    The single rails carrying the trains are supported by a series of 486 steel portals weighing almost 20,000 tonnes in total. More than 80,000 people a day are transported by 31 modern articulated cars traveling at up to 37 mph (60 kph). A replica of the vintage Kaiserwagen (Emperor’s Car) used by Kaiser Wilhelm II in 1900 also operates on special occasions but is currently being restored; it’s hoped that it will return to service by spring 2024.

    Current holder of the record for the world’s steepest public railway, Switzerland’s Stoosbahn opened in December 2017 and has become a global tourist attraction in its own right.

    The unique cars with their rotating “barrels” allow passengers to stay level and travel serenely up the mountain at gradients of up to 110%. On a route of just over one mile (1.74 kilometers), the railway climbs almost 2,450 feet (744 meters) from the valley station in just five minutes.

    Stoosbahn is far more than just a joyride though – it’s a vital lifeline for the car-free village of Stoos, which sits high on a mountain near the town of Schwyz, south of Zürich. Each car is fitted with three passenger “barrels” plus a further section for freight. Every year, up to 10,000 tonnes of freight is carried – essential supplies going up the hill to restaurants and hotels, garbage and recycling traveling back down. Up to 1,500 passengers an hour, plus their skis or snowboards, can also be carried – a 50% increase over the previous funicular railway.

    Riding the Stoosbahn is a unique experience, even if you’re a connoisseur of mountain railways. The smooth transition from level to almost vertical happens very quickly and the view from the rotating cabins is exceptional. You’d have to be very jaded not to be impressed with such an astonishing piece of railway engineering.

    Pier railways were an attraction at several British seaside resorts in the 19th century, the most famous being the mile-long trip to the tip of Southend Pier on the country’s east coast – which you can still experience today. Most were built for pleasure, usually to save visitors a long walk back to shore.

    Hythe Pier Railway, on the south coast of England, has always been a little different though; it provides a unique link between dry land and the Hythe Ferry, which has shuttled to and fro across Southampton Water since the Middle Ages.

    The current pier opened in 1881 and a quirky 2,100-foot railway was added in 1909. It is the oldest continuously operating pier railway in the world. Wagons were initially propelled by hand but in 1922 a new narrow gauge electric railway replaced the original track. Two Army surplus electric locomotives, originally built to work in a World War I mustard gas factory, have worked the trains ever since.

    The bizarre-looking locomotives continue to pull (or push) their weatherbeaten little coaches along the pier to meet every ferry to and from Southampton Town Quay, despite numerous threats of closure. Visit it while you still can.

    Monorails have been around for more than a century and examples can be found all over the world, but they’ve never quite fulfilled the futuristic promises of their early promoters. That said, there are a few places where the unique qualities offered by monorails are ideally suited to their environment.

    Chongqing in China is home to the world’s longest and one of its busiest monorail system, carrying millions of passengers a year on two high-capacity “straddle beam” lines totaling 61 miles in length. At just over 34 miles, Line 3 is also the world’s longest single monorail line with an annual ridership of around 250 million. Opened between 2005 and 2016, the two lines have 70 stations with a mix of underground and elevated sections. Famously, one section of Line 2 passes through the heart of a high-rise apartment block.

    The city’s unique topography, with extreme differences in altitude between its densely populated mountain plateaus and the Yangtze and Jialing river valleys forced Chongqing’s transit authorities to seek an alternative to conventional metro trains. Monorail’s ability to negotiate steep climbs and tight curves made it the ideal solution when this megacity needed to transform its public transit system.

    Is it a train? Or is it a bus? Neither, it’s a Ferrobus – a unique form of improvised transport found across mountainous regions of South America.

    Combining old road bus bodies with rail wheels, these wobbly-looking contraptions are a lifeline for remote mountain villages lacking official road access. Using otherwise abandoned rail lines – often built in the 19th and early 20th century to exploit mineral deposits – Ferrobus routes can be found in Chile, Bolivia and Colombia, climbing high into the Andes.

    Ferrobus trips are increasingly popular with tourists seeking an unforgettable experience, and likely wanting to avoid uncomfortable and often dangerous road journeys. Chile’s Gondola Carril from Los Andes to Rio Blanco, north of Santiago, operates purely for tourists, but others provide regular, if somewhat unpredictable, transport for locals and tourists alike.

    Bolivia is arguably the epicenter of the Ferrobus world, with at least three routes, although there’s a constant risk of derailments, not to mention disruption from floods, rockfalls and extreme weather.

    Riding a Ferrobus requires patience and stamina, but you’re guaranteed to return with some hair-raising stories to tell your friends.

    Gotta catch ‘em all? Here’s one that will appeal to fans of Pokémon and trains. An otherwise ordinary Japanese local train has been dressed up to resemble the all-conquering franchise’s most famous character – Pikachu.

    The bright yellow signature color dominates inside and out, with Pikachu motifs covering everything from floor to walls and curtains. One car has seating, while the second car has been fitted out as a fabulous mobile playroom for junior Pokémon trainers. During the two-hour trip from Ichinoseki to Kesennuma in the Tõhoku Region, children can play, nap and socialize with giant plush Pikachus or even pretend to drive the train.

    Introduced in 2017 to put a smile on local faces after the devastating earthquake and tsunami of 2011, which also prompted the reactor meltdown in the neighboring Fukushima region, Pokémon with You is one of several “Joyful Trains” operated by railway company JR East. Ranging from traditional steam trains to luxurious, exotically decorated expresses between cities and resorts, they’re part of an incredibly rich and vibrant railway culture that attracts visitors from all over the world to Japan.

    Which city is home to mainland Europe’s oldest underground railway? Paris? Berlin? Vienna? In fact, it’s the Hungarian capital Budapest, where line M1 has been operating since May 1896.

    In the late-19th and early 20th centuries Hungary – then part of the Austro-Hungarian Empire – was a vigorous pioneer of new railway technology. This short (2.3-mile) line under Andrássy Avenue on the Pest side of the Danube river was only the third underground electric railway in the world, opening shortly after similar lines in London and Liverpool, England.

    Like London’s tiny “tube trains” of the same era, the first tunnels in Budapest were built to an unusually small profile and the effects of that decision can still be encountered today on what the locals call “a kisföldalatti,” or “the small underground.” The original trains, more akin to freight cars fitted with wooden shelters, were replaced in 1973 when line M1 was rebuilt and extended, but a ride on M1 is still a very different experience from the city’s later metro lines with their wide-bodied trains and airy stations.

    Thousand of people a day squeeze into the little yellow trains – a much higher ridership than when it was completed. But with its low platforms and short, angular trains, it’s very different to the usual city metro experience.

    Over the last two decades, China’s rail industry has become the largest and most varied in the world, helped by the astonishing expansion of the country’s high-speed network and global exports.

    But there’s far more to China than sleek high-speed trains and megacity subways; the size and diversity of this enormous nation demands ingenious solutions to serve areas conventional trains can’t reach.

    A unique example is the world’s first hanging monorail with a glass floor, now running in Sichuan Province. The Dayi Air Rail Project connects four stations at busy tourist spots over a seven-mile (11.5 kilometer) route in the city of Chengdu.

    Unusually, the lightweight car bodies are constructed from carbon fiber and composite foam material. They are powered by rechargeable batteries with electricity from renewable sources. But the panoramic windows and transparent floor are their most spectacular features, allowing up to 120 passengers per trip a 270-degree view combining clean, efficient and quiet transport with a memorable sightseeing trip.

    Trains, roads: Get you a vehicle that can do both.

    Imagine a vehicle that can pick you up outside your home, drive to the nearest railway line, convert itself into a train and then switch back to drop you in the center of a nearby town. It may sound like a story from “Thomas the Tank Engine,” but that exactly what Japan’s DMV Road-Rail buses have been doing since they launched on Christmas Day 2021.

    The buses, carrying around 20 passengers per trip, run a 30-mile route between the town of Kaiyo in Tokushima and the city of Muroto, Kochi Prefecture. Six miles of the route are along a rural railway line, with the rest in bus mode.

    With a capacity of 23, including passengers and crew, the DMV is a diesel-powered bus fitted with a set of retractable rail wheels which can be deployed in about 15 seconds. Lighter than a traditional train, the DMV also consumes less fuel and is cheaper to maintain.

    Billed as “the world’s first operational dual-mode vehicle,” it is actually the latest in a long series of similar experiments to improve rural rail services and reduce their costs. As far back as the 1930s, road buses were converted into railcars in Ireland and similar vehicles to the DMV were tested in England in the 1930s and West Germany in the 1950s.

    Tokushima prefectural government hopes the DMV buses will become a tourist draw in their own right. It also believes that the vehicles could also be useful for reaching isolated communities in the event of natural disasters such as earthquakes, which can leave sections of roads or railway lines unusable.

    Not far from the wonderful city of Sydney is a railway experience unlike anything else in the world. Situated in the heart of the Blue Mountains, the Katoomba Scenic Railway is another contender for the title of the world’s steepest railway. But, unlike Switzerland’s Stoosbahn, this railway delivers a hair-raising descent down sandstone cliffs and through epic rock formations and tunnels perched over a stunning rainforest landscape.

    Glass-roofed cars take up to 84 visitors per trip down the 52-degree (128%) incline, although if you’re feeling brave you can adjust the angle of your seat to the “Cliffhanger” position at 64 degrees. Fortunately, there’s also a “Laidback” option for the less adventurous.

    The rope-hauled railway dates back to the late-1800s when it was part of the Katoomba mining tramways, but since 1945 the remaining line has been a thrilling tourist attraction. More than 25 million people have braved the trip since it opened and the latest generation of cars feature panoramic roofs, allowing visitors to get an even better view of the forest canopy and rock formations.

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  • Warren Buffett names his favorite stock, comments on other Berkshire Hathaway holdings at annual meeting

    Warren Buffett names his favorite stock, comments on other Berkshire Hathaway holdings at annual meeting

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  • South Korea’s finance minister says country is at a ‘turning point’ in relations with Japan

    South Korea’s finance minister says country is at a ‘turning point’ in relations with Japan

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    South Korea’s finance minister says the nation sees is at a “turning point” in economic relations with Japan.

    Speaking to CNBC’s Chery Kang at the Asian Development Bank’s annual meeting in Incheon, South Korea’s finance minister and deputy prime minister Choo Kyung-ho praised Tokyo’s recent decision to restore South Korea to a list of preferred trade partners.

    “My understanding is that Japan is processing this according to its legislative and administrative procedures,” Choo said, according to a CNBC translation. adding that South Korean officials hope the process will be completed “as soon as possible.”

    “We believe that unnecessary regulations between the two countries will be entirely removed, and we believe that we’re now at a turning point for further cooperation between the two economies,” said Choo.

    The thaw in Japan and Korea’s bilateral relations comes after South Korea announced its companies would compensate people who were forced to work during Japan’s 1910-1945 occupation of Korea – a bid by South Korean President Yoon Suk-yeol to improve the strained ties between the two nations.

    Earlier this week, the two countries also held their first bilateral finance ministerial meeting in seven years, agreeing to resume regular talks “at an appropriate timing,” according to reports of Choo’s Japanese counterpart Shunichi Suzuki’s remarks after his meeting.

    Choo said the recent talks with Suzuki will lead to further economic cooperation between the two U.S. allies.

    “The recent bilateral summit has opened things up for improvement. So we can now anticipate cooperation between the two countries, in expansion of industrial and technology cooperation, as well as humanitarian exchange programs for youths,” he said. “We believe this will benefit both countries mutually, economy-wise, and contribute to the regional growth as well,” he said.

    Choo added that the bilateral relationship will be “mutually beneficial” for high-tech industries, including semiconductors.

    “Especially in sectors that we see both countries being placed in a ‘win-win’ situation, such as strengthening high-tech industrial sectors – we believe this is why Japan and Korea are both actively taking part in pushing for further cooperation through ministerial talks and dialogue between government agencies, which we plan to strengthen further,” he said.

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  • Japan to lift COVID-19 border controls before holiday week

    Japan to lift COVID-19 border controls before holiday week

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    TOKYO (AP) — Japan will lift most of its coronavirus border controls, including a requirement that entrants show proof of three vaccinations or a pre-departure negative test, beginning Saturday as the country’s Golden Week holiday season begins and a large influx of foreign tourists is expected.

    All entrants with symptoms will still be required to take COVID-19 tests after arriving until May 8, and those who test positive will be placed in designated quarantine facilities, Chief Cabinet Secretary Hirokazu Matsuno told reporters. After May 9, testing of those with symptoms will be voluntary.

    Japan will also drop a special measure subjecting visitors from mainland China to random testing upon arrival that was implemented in late December when infections surged there, he said.

    The government had originally planned to implement the changes on May 8, when it will downgrade the official status of the coronavirus to a common infectious disease like seasonal influenza, but decided to speed them up for the holiday season beginning Saturday.

    Japan’s government dropped its requests for mask wearing in March, leaving it up to each person’s discretion. Most Japanese continue to wear them, although they are only recommended now in crowded trains, hospitals and other public spaces, and near elderly and other vulnerable people.

    COVID-19 is currently categorized as a Class 2 disease along with SARS and tuberculosis, which allows restrictions on the movements of patients and their close contacts and the issuing of emergency measures by the government. Downgrading it to Class 5 will scrap those rules.

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  • Young marijuana dealer in Japan opens up about tough upbringing, fear of addiction – Medical Marijuana Program Connection

    Young marijuana dealer in Japan opens up about tough upbringing, fear of addiction – Medical Marijuana Program Connection

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    A young person looks at their phone at a park in the city of Fukuoka on March 29, 2023. This photo is unrelated to the article. (Mainichi/Hyelim Ha)


    FUKUOKA — “It gave me a fresh sensation, and I could not stop laughing just by making eye contact with another person,” the man recalls of the first time he smoked marijuana when he was 13, as he had just started junior high school. Now 20 years old, he still can’t let go of his cannabis use.


    This Mainichi Shimbun reporter met the man in the summer of 2022. I had asked a nonprofit organization in the city of Fukuoka supporting young delinquents for cooperation to look into a surge of cannabis use among youths. The group introduced the man to me and I interviewed him.


    Born in a city in the Kyushu region, he was raised by his mother who worked as a hostess at a bar. There was no father in the picture. The man said he was abused by his mother, and he would repeatedly run away from home. He would then be taken in by a child consultation center.


    After starting junior high school, he would go out night after night with his friends. One night, he was approached by an adult man at a convenience store parking lot. “Let’s exchange a cigarette with this. Smell this,” the older man told him. What he sniffed out of curiosity that night was marijuana.


    When he got out of a juvenile reformatory for the second time at age 16 after committing assault at a welfare home for…

    Original Author Link click here to read complete story..

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  • Don’t isolate China, Brussels tells EU capitals

    Don’t isolate China, Brussels tells EU capitals

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    BRUSSELS — The EU’s high command is calling on European governments to keep talking to China amid deepening tensions between Washington and Beijing. 

    The European Union’s diplomatic arm wants member countries to “be prepared” for a potentially critical escalation in the crisis over Taiwan, warning that a military conflict would upend the vital supply of microchips to Europe. 

    But while there’s a need to reduce risks to Europe, it may not seal itself off from China, according to an internal document drafted by the European External Action Service and seen by POLITICO. 

    The document, which will be discussed by the bloc’s foreign ministers at a gathering in Stockholm on Friday, comes at a crucial time for the EU as it navigates an increasingly complex relationship with China. The U.S. is doubling down on its hawkish stance toward Beijing, while European leaders have not yet agreed on a unified approach. 

    The paper triggered immediate backlash from some of Europe’s more hawkish governments. “With all possible alarm lights flashing, we seem to prefer hitting a snooze button again,” one senior EU diplomat said on condition of anonymity in order to discuss sensitive issues.

    In the document, prepared by the EU executive’s diplomatic officials, the bloc’s 27 member countries are urged to seize “a window of opportunity” to reduce the risk of China’s growing influence over economic and security matters. 

    A chance remains for Europe to speak directly to President Xi Jinping’s government, the paper says. “China and Europe cannot become more foreign to each other. Otherwise there is a risk that misunderstandings will grow and spread to other areas,” according to the draft. 

    “Systemic rivalry may feature in almost all areas of engagement. But this must not deter the EU from maintaining open channels of communication and seeking constructive cooperation with China […] Such cooperation can serve to break through a growing self-induced isolation of the Chinese leadership but most importantly should advance the EU’s core interests,” the paper continued.

    Friday’s debate at an informal meeting of foreign ministers in Sweden will fire the starting gun on a discussion over the EU’s relationship with China that is expected to dominate policymaking in the coming months, with a more comprehensive debate expected at an EU leaders’ summit in Brussels this June. 

    De-risking Beijing

    The paper calls on member countries to speed up plans for “de-risking” and reducing overdependence on China. 

    “De-risking can ensure predictability and transparency in our economic and trade relations, while promoting a secure, rules-based approach,” the paper says. 

    The call for de-risking comes as Beijing appears increasingly impatient with the narrative that it poses a threat to the West. Chinese Foreign Minister Qin Gang, speaking in Berlin this week, criticized European politicians for attempting to “get rid of China” in the name of de-risking. 

    The paper also tackles the politically sensitive issue of Taiwan, with ministers due to discuss this issue as well on Friday. French President Emmanuel Macron told POLITICO in an interview last month that Europe should avoid getting dragged into a confrontation between China and the U.S. over the self-governing island, which Beijing claims as its own. 

    On Taiwan, the paper says: “The EU is […] adamant that any unilateral change of the status quo and use of force could have massive economic, political and security consequences, at global level, especially considering Taiwan’s primary role as supplier of the most advanced semiconductors.” 

    The document continues: “The EU needs to be prepared for scenarios in which tensions increase significantly. The risk of escalation in the Taiwan Strait clearly shows the necessity to work with partners to deter the erosion of the status quo in the interest of all.”

    Some 90 percent of advanced semiconductors imported into the EU come from Taiwan, according to the bloc’s own estimates.

    Taiwan’s semiconductor giant TSMC has been under pressure to relocate some of its manufacturing capabilities, but so far it has only moved in the direction of Taiwan’s two presumed security providers — the U.S. and Japan.  

    On Ukraine, the EU is not impressed with China’s latest diplomatic show, marked by President Xi Jinping’s belated first call with his Ukrainian counterpart Volodymyr Zelenskyy.

    “China’s ’12-point position paper on the Ukraine Crisis’ […] confirms its firmly pro-Russian stance,” the document said. “Direct dialogue between China and Ukraine would be the best opportunity for China to contribute to a fair political settlement,” it continued.

    EU member countries should keep warning Beijing to refrain from supporting Russia, including by circumventing sanctions, the same paper added.

    The paper also casts gloom on the outlook for China’s domestic development, saying the Asian superpower “is likely to face unprecedented economic and political challenges internally” due to the deceleration of economic growth and demographic change. 

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    Stuart Lau , Jacopo Barigazzi and Suzanne Lynch

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  • Ron DeTedious: DeSantis underwhelms Britain’s business chiefs

    Ron DeTedious: DeSantis underwhelms Britain’s business chiefs

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    LONDON — He hopes to win the hearts and minds of devoted Donald Trump supporters ahead of next year’s U.S. election.

    But Republican presidential hopeful Ron DeSantis failed to impress British business chiefs at a high-profile London event Friday, in a tired performance described variously as “horrendous,” “low-wattage” and “like the end of an overseas trip.”

    The Florida governor, expected to launch his bid next month to challenge Trump as the Republican nominee for the 2024 presidential race, met with more than 50 representatives of major U.K. firms and business lobbying groups as a part of a four-country “trade mission” ending in London Friday.

    His trip was officially billed as an attempt to build Florida’s economic relationships with the U.K., Israel, South Korea and Japan, but it has been widely seen in Washington as a chance for DeSantis to present himself as a statesman on the world stage.

    For several of those present, however, the statesmanship was lacking.

    One U.K. business figure said DeSantis “looked bored” and “stared at his feet” as he met with titans of British industry in an event co-hosted by Lloyd’s of London — the world’s largest insurance marketplace.

    “He had been to five different countries in five days and he definitely looked spent, but his message wasn’t presidential,” they told POLITICO. “He was horrendous.”

    A second business figure who was in the room said it was a “low-wattage” performance and that “nobody in the room was left thinking, ‘this man’s going places’.”

    They said: “It felt really a bit like we were watching a state-level politician. I wouldn’t be surprised if [people in attendance] came out thinking ‘that’s not the guy’.”

    “There wasn’t any stardust.”

    A third person present at the event agreed “it felt like the end of an overseas trip — which it was,” but insisted DeSantis “came across well.” The best a fourth could muster was that DeSantis was “fine.”

    DeSantis also met with U.K. Foreign Secretary James Cleverly and Business and Trade Secretary Kemi Badenoch during a whistlestop tour of London, though Prime Minister Rishi Sunak avoided a bilateral with the right-wing governor.

    Sunak was at a Scottish Conservative Party conference Friday, which a No. 10 official said had been in his diary for a “long time.”

    DeSantis is trailing Trump in polling among Republican primary voters, but has attracted support among a number of establishment Republicans who see him as a less chaotic figure than the ex-president.

    The governor won a landslide re-election last year in what is traditionally a swing state, and has attracted praise from many Republicans for his “anti-woke” agenda and his commitment to tax cuts.

    A government official said Badenoch, a rising star in the Conservative Party, and DeSantis had a “fruitful” conversation and that the pair “got on well.”

    However, the pair did not discuss the prospect of a state-level economic Memorandum of Understanding between the U.K. and Florida, despite Britain’s efforts to sign similar arrangements with other U.S. states.

    A second official said Badenoch’s team “wanted to avoid talking about a Florida MoU” as others are being prioritized, and because of the difficult optics for a British government also dealing with Joe Biden’s White House on several trade-related issues.

    A Foreign Office spokesperson said Cleverly and DeSantis discussed “the close and important relationship between the U.K. and Florida.”

    “The meeting was an opportunity to strengthen ties with the … U.S. state, and support bilateral economic co-operation that is already worth more than £5 billion a year,” they said.

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    Stefan Boscia

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  • China’s top chipmaker will ‘struggle’ to make cutting-edge chips competitively

    China’s top chipmaker will ‘struggle’ to make cutting-edge chips competitively

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    China’s largest chipmaker SMIC won’t be able to produce cutting-edge chips competitively if it continues to be cut off from advanced equipment, analysts told CNBC.

    Vcg | Visual China Group | Getty Images

    China’s largest chipmaker SMIC won’t be able to produce cutting-edge chips competitively if it continues to be cut off from advanced equipment, analysts told CNBC.

    State-backed SMIC, or Semiconductor Manufacturing International Co., is making 7-nanometer semiconductor chips, placing it in the league of Intel and others.

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    However, SMIC has been the target of U.S. sanctions since 2020 when it was put on a U.S. trade blacklist which restricts its access to certain technology. It has also been unable to obtain the extreme ultraviolet (EUV) lithography machines — which only Dutch firm ASML is capable of making.

    Without EUV machines, the Chinese tech giant is not able to produce the high-tech semiconductors on a large scale at lower costs.

    China is behind in its ability to design and produce advanced chips, says Chris Miller, author of "Chip War"

    “It’s just not commercially profitable for SMIC to make those chips with less advanced equipment,” said Phelix Lee, equity analyst for Morningstar Asia.

    Following the 2020 sanctions, the U.S. last year introduced sweeping export restrictions aimed at cutting China off from advanced chip tech and equipment. Washington is concerned that China could use these advanced semiconductors in artificial intelligence and military applications.

    The U.S. has sought support from other key chipmaking nations including South Korea, Japan and the Netherlands. The Netherlands as well as Japan have reportedly followed the U.S. in imposing rules aimed at restricting China from accessing advanced chip tech.

    According to Dutch regulations, ASML will need to apply for a license to export its EUV machines. ASML has not exported the highly complex machines to China so far.

    “Can SMIC produce in a commercially viable way scaled by the hundreds of thousands or tens of millions in some cases? That’s what the most advanced tools let you do,” Chris Miller, author of “Chip War” told CNBC.

    SMIC did not respond to CNBC’s request for comment.

    Competitive landscape

    The world’s most advanced chip facilities — such as Taiwan Semiconductor Manufacturing Company and South Korean electronics giant Samsung — rely on tools from just a small number of companies largely in the U.S., Japan and the Netherlands.

    TSMC and Samsung began mass producing 7-nanometer chips in 2018. Both firms use ASML’s EUV machines.

    Read more about tech and crypto from CNBC Pro

    “Nanometer” in chips refers to the size of individual transistors on a chip. The smaller the size of the transistor, the more of them can be packed onto a single semiconductor. As such, smaller nanometer sizes typically yield more powerful and efficient chips.

    Both companies have a roadmap to produce 2-nanometer chips in 2025. Samsung will begin making 1.4-nanometer chips in 2027. Both companies started mass production of 3-nanometer chips last year.

    Still lagging behind

    SMIC is still generations behind TSMC and Samsung. Without advanced chip-making machines, SMIC is going to fall further behind.

    “So far I don’t see domestic players being able to provide those machines to SMIC,” said Morningstar’s Lee.

    At least for the next couple of years, SMIC is going to struggle to produce chips that are as effective and as high quality as those that are produced abroad.

    Chris Miller

    Author of ‘Chip War’

    While some Chinese firms are trying to build equivalent tools domestically, they remain fairly far behind, said Miller.

    In February, ASML said that a former employee in China had stolen data about its proprietary technology.

    “It will likely take some time before China begins to replicate the capabilities that these important tools have,” said Miller, who is also an international history professor at Tufts University.

    “At least for the next couple of years, SMIC is going to struggle to produce chips that are as effective and as high quality as those that are produced abroad,” the professor said.

    SMIC has a long way to go in catching up with TSMC, says analyst

    Lee said it is “quite unlikely, at least in the next five years” for SMIC to be able to produce the latest generation of chips such as 5 or 3-nanometer chips. “If we want to close the gap [between SMIC and TSMC], we should be looking at a 10-year horizon,” said Lee.

    China wants tech progress

    But with SMIC being the key to China’s chip ambitions, analysts expect the government to step up support for the chipmaker. SMIC already benefits from government subsidies and state-backed research projects.

    “I see a lot of financing to happen for SMIC. These can come from bank loans, issuing new shares, or setting up operating companies with the help of government funding,” said Lee.

    The Chinese government has made it clear they want to get as close as possible to the cutting edge…

    Chris Miller

    Author of “Chip War”

    In its five-year development plan, China said it would increase research and development spending by more than 7% per year between 2021 and 2025, in pursuit of “major breakthroughs” in technology and self-reliance.

    Domestic tech giants from Alibaba to Baidu have been designing their own chips, seen as a step toward China’s goal of boosting its domestic capabilities in chip tech.

    “The Chinese government has made it clear they want to get as close as possible to the cutting edge and so a lot of the funds will be devoted towards trying to produce close to cutting edge chips,” said Miller.

    “SMIC is going to benefit from a new level of support from the Chinese government which doesn’t want to see it fail and wants to see it, if possible, continue to make progress technologically,” he added.

    — CNBC’s Arjun Kharpal contributed to this report.

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  • Trump who? Farage’s party cozies up to DeSantis as White House hopeful lands in UK

    Trump who? Farage’s party cozies up to DeSantis as White House hopeful lands in UK

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    LONDON — Nigel Farage’s new right-wing party Reform UK is making overtures to Donald Trump’s potential presidential rival Ron DeSantis as the Florida governor flies into Britain for high-level talks.

    DeSantis, who is expected to announce his bid for the 2024 Republican presidential candidacy in the coming weeks, will hold meetings with senior British ministers in London on Friday as a part of a four-country “trade mission” to promote Florida on the world stage.

    But also chasing a meet-up will be key allies of Farage, who is honorary president of Reform UK and who first met DeSantis at last year’s Conservative Political Action Conference (CPAC) in Florida.

    The pair have spoken about U.S. and European politics, despite Farage’s previous long-standing alliance with DeSantis’ arch-rival Donald Trump, who remains the frontrunner for the 2024 Republican nomination.

    Reform UK leader Richard Tice confirmed to POLITICO he was “working on” cultivating links with the Florida governor, who has become a popular figure among some British conservatives as a seemingly less chaotic right-wing alternative to Trump.

    “He’s shown himself to be a courageous, bold leader and that’s very interesting. For me, I think he is actually the one that the Democrats fear,” Tice said.

    “DeSantis doesn’t muck about — he just gets stuff done and tells it as it is, which is very contrary to what the Washington elite want him to say.”

    ‘Big supporter of Brexit’

    DeSantis will meet with British Foreign Secretary James Cleverly and Business and Trade Secretary Kemi Badenoch for talks in London on Friday.

    The 44-year-old is currently running second to Trump in polling among Republican primary voters, who will make their decision on a presidential candidate early next year. 

    DeSantis attracted praise from high-profile Republicans for winning a landslide re-election victory last year in what is traditionally a swing state, with many talking him up as the future — or DeFuture as Rupert Murdoch’s New York Post wrote — of the Republican Party.

    Trump has already begun a vicious campaign to discredit the controversial governor — who has stirred anger among America’s liberals for his “anti-woke” and anti-COVID lockdown policies — by calling him “Ron DeSanctimonious” and accusing him of being a part of a “globalist” elite.

    The governor said in an interview with The Times last month that he was a “big supporter of Brexit,” but that Britain’s ruling Conservative Party “hasn’t been as aggressive at fulfilling that vision as they should have been.”

    Ron DeSantis will hold meetings with senior British ministers in London | Anna Moneymaker/Getty Images

    Farage in turn showered praise on the governor via his GB News show, saying “it seems to me that Ron DeSantis very much has his finger on the pulse of U.K. politics.”  

    An ally of Farage told POLITICO that the Brexiteer highly rates DeSantis, but that he “could damage himself in a brutal fight against Trump.”

    “Nigel thinks that he will be American president at some point and that he’s done a great job in Florida,” the ally said. Farage himself declined to comment for this article.

    British TV presenter Piers Morgan, another former friend of Trump, interviewed DeSantis for TalkTV last month. He too has been quick to talk up the governor as the best possible candidate for the Republicans, despite his past alliance with Trump.

    Morgan told a Fox News programme that the Republican Party has a “straightforward choice.” He said: “Do you want more drama and chaos and baggage, or do you want someone who is fresh, young, nearly half Trump’s age, who doesn’t have the baggage and believes in doing government a different way?”

    A London-based lobbyist with ties to the DeSantis camp said many British political figures will be trying to cozy up to the Florida governor in the lead up to his likely presidential run.

    “It’s peak season for grifters,” they said. “A lot of people connected to the Republican Party will try to ride both horses.”

    They also said that DeSantis would “be smart” to try to raise money from British expats living in America — a path that was followed by Trump in 2016 and by former presidential candidate Mitt Romney in 2012.

    Make America … Florida?

    The U.K. will be the final stop on DeSantis’ four-country trade mission, following visits to Japan, South Korea and Israel.

    A DeSantis spokesperson said the trip would “build on economic relationships Florida has with each country,” but it is being seen by media pundits as a way for the governor to look presidential on the global stage.

    He is set to meet with Badenoch and then Cleverly tomorrow in separate bilateral meetings.

    DeSantis will also attend a business roundtable with Badenoch, a rising star in her own party and the bookmakers’ favorite to become next Conservative leader, being organized by the BritishAmericanBusiness lobby group.

    Farage had a long-standing alliance with DeSantis’ arch-rival Donald Trump, who remains the frontrunner for the 2024 Republican nomination | Jonathan Bachman/Getty Images

    British ministers will be eager to know the governor’s views on international trade, given U.S. President Joe Biden — who officially launched his own re-election campaign this week — refused to continue the post-Brexit U.K.-U.S. trade talks that began under the Trump administration.

    Leslie Vinjamuri, U.S. expert at the Chatham House think tank in London, said DeSantis will want the trip to show economic competence to a wider American audience.

    “It makes complete sense as a governor and a presidential hopeful that he would demonstrate his economic credentials. America is about the land of the free and the opportunity to succeed — and getting rich,” she said.

    “Having that very strong relationship and connectivity to the U.K. plays extremely well in the U.S. — it certainly plays well in Florida.”

    DeSantis’ view of the Russo-Ukraine war will also be scrutinized if and when he announces his presidential run, after he recently called the conflict a mere “territorial dispute.”

    The governor swiftly tried to walk back those comments following a bitter backlash — but also told Nikkei Asia this week that European countries must do far more to help Ukraine.

    “The Europeans really need to do more. I mean, this is their continent,” he said.

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    Stefan Boscia

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  • Japanese moon landing attempt fails

    Japanese moon landing attempt fails

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    Japanese moon landing attempt fails – CBS News


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    An attempt by a Japanese company to land a spacecraft on the moon failed Tuesday. It was attempting to become the first private company to conduct a successful lunar landing.

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  • Hot Springs in the City – Hotel Chinzanso Tokyo Announces New Plan

    Hot Springs in the City – Hotel Chinzanso Tokyo Announces New Plan

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    The new Urban Oasis Stay plan allows guests to freely enjoy its award-winning spa facilities along with a limited-time bamboo lantern display and firefly viewing.

    One of the only hotels in Tokyo offering hot springs, Hotel Chinzanso Tokyo is launching a new plan for tranquility-seeking travelers. 

    YU, THE SPA, the hotel’s award-winning spa, comprises a hot spring bath, spa treatment facility, indoor pool, sauna, and fitness gym. The onsen (hot spring) water is brought from Ito, a city famous for its excellent onsen resorts.

    The new plan, called Urban Oasis Stay, was created in response to the huge increase in overseas guests and inbound tourism to Japan. It allows guests to enjoy all of the spa facilities without needing to book separately. As one of the only hotels in Tokyo with hot springs, it also provides guests a rare opportunity to experience a Japanese onsen without leaving the city. Bookings start from two nights.

    After relaxing at the onsen spa, guests can enjoy a meal at one of the hotel’s traditional Japanese restaurants or take a stroll through their expansive Japanese garden, which changes with every season.

    This spring and summer, Chinzanso Garden is featuring a takeakari bamboo lantern display as part of its 70th anniversary celebrations. Visitors can walk through the 82-foot (25-meter) path from the garden’s traditional watermill to Japanese restaurant Mokushundo, lined with 40 bombori bamboo lanterns and 14 takemari bamboo ornaments.

    The bamboo lanterns continue into the camellia and moss garden, located behind the pagoda, and on the hotel’s rooftop garden, Serenity Garden. The illuminations are on display from sunset until 11 pm daily from April 10 to September 18, 2023.

    Guests who visit from May through June are in for a special treat. The garden will be lit up not only by the bamboo lanterns, but also by the 10,000 fireflies that inhabit the garden in early summer. This year’s firefly season is from May 19 to July 2. More information can be found on the hotel website.

    About Hotel Chinzanso Tokyo

    Hotel Chinzanso Tokyo is one of the city’s most iconic luxury hotels with 70 years of history. The property includes 267 guest rooms/suites, nine restaurants, 38 meeting/banquet rooms, and a full-service spa with a Japanese onsen. Its award-winning garden has a wide variety of botanicals, including more than 100 cherry trees and 1,000 camellia trees. The standout feature of the garden is the ‘Tokyo sea of clouds,’ a recreation of the natural phenomenon that can usually only be found in the mountainous regions of Japan. The hotel is owned and managed by Fujita Kanko Inc., a publicly-traded tourism industry corporation headquartered in Tokyo.

    Source: Hotel Chinzanso Tokyo

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  • US Republican presidential hopefuls head to Taiwan, Japan

    US Republican presidential hopefuls head to Taiwan, Japan

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    The visits come amid heightened tension over self-ruled Taiwan, which Beijing claims as its own territory.

    The Republican governor of the US state of Virginia has met Taiwan President Tsai Ing-wen as Republican hopefuls for the United States 2024 presidential race seek to lift their campaigns with international tours.

    Glenn Youngkin, a former hedge fund manager who pulled off a surprise win in the Virginia governor’s race, met Tsai Ing-wen in Taipei on Tuesday as part of a trade mission, their offices said.

    Taiwan is “an important partner and model of prosperity for nations across the globe,” Youngkin said as he announced the establishment of a Taiwan-Virginia economic development office.

    Tsai said she was happy to receive friends from the US, adding that Taipei has always enjoyed strong links with the state of Virginia.

    “That Governor Youngkin has chosen Taiwan as the destination for his first overseas trip since taking office is especially significant,” she said.

    The governor, a rising Republican star and considered a possible contender for the 2024 nomination — although he has yet to declare his candidacy — is also due to visit South Korea and Japan.

    Florida governor and potential rival Ron DeSantis, who is also on an international tour, is already in Tokyo and met Japanese Prime Minister Fumio Kishida on Monday. The Republican Party’s early frontrunner is former President Donald Trump, who declared his candidacy last November.

    Florida Governor Ron DeSantis stopped in Japan as part of a four-nation tour that will also include South Korea, Israel and the UK [Kimimasa Mayama/Pool via Reuters]

    DeSantis praised Japan as a “great ally” to the US and welcomed a five-year, $315bn military expansion Japan launched last year in the face of an increasingly powerful China and as North Korea steps up its missile launches.

    “We very much applaud your efforts to bolster your defences. We understand it’s a tough neighbourhood out here … and we really believe that a strong Japan is good for America, and a strong America is good for Japan,” said DeSantis, who will also travel to South Korea, Israel and the United Kingdom.

    The visits come amid heightened tension in the region over democratic Taiwan, which Beijing claims as its own and refusing to rule out the use of force to achieve its objectives.

    China staged days of war games after US House Speaker Kevin McCarthy, also a Republican, met Tsai in California earlier this month.

    Beijing claims Tsai is a “separatist” who wants independence.

    She says it is up to the people of Taiwan to determine their future.

    The US has formal relations with Beijing but is Taiwan’s most important international supporter.

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