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Tag: Japan

  • What happens to Europe when the balloon goes up?

    What happens to Europe when the balloon goes up?

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    BERLIN — The saga of the Chinese spy balloon has plunged relations between Washington and Beijing into fresh crisis. For European governments, that spells all kinds of trouble.

    With relations worsening between the two superpowers, EU leaders seem likely to come under intensifying pressure from the White House to pick sides and join forces against China, just as they were hoping for a thaw in tricky relations with Beijing. 

    And then there’s the war. 

    Russia is preparing a major offensive in Ukraine over the next few weeks but EU diplomats fear the balloon incident risks distracting President Joe Biden’s team at exactly the moment when American support for Kyiv will be needed most. 

    “We never expected 2023 to be easy, but this is off to a really tough start,” one European diplomat said. 

    On Saturday, the U.S. shot down what it identified as a Chinese surveillance balloon off the coast of South Carolina with an air-to-air missile from an F-22 stealth fighter jet. 

    Secretary of State Antony Blinken indefinitely postponed a visit to Beijing that had been scheduled for this week, the first such trip planned for a U.S. cabinet-level official under Biden’s presidency.

    Images of the incident have circulated in dramatic video footage on social media, taken mostly by excited onlookers cheering the theatrical show of military might.

    Beijing insists the giant solar panel-powered object was a “civilian airship” that went off course while conducting “mainly meteorological” research. In response to the missile strike, the Chinese government expressed “strong dissatisfaction” and protested against the use of force by the U.S. to attack the unmanned, civilian craft. It added that it would “reserve the right to take further necessary responses.”

    U.S. foreign policy, while still heavily invested in supporting Ukraine militarily, may be distracted by the sharpening clashes with Beijing. Right-wing U.S. politicians have been calling for more attention on China since Russia invaded Ukraine a year ago. 

    As the “U.S.-China rivalry sharpens, there will be more pressure on Europeans, whose approach to China is very diverse, to pick sides,” said Ricardo Borges de Castro, head of the Europe in the World Program at the European Policy Centre, a Brussels-based think tank. “The reality is, if the world becomes increasingly dominated by two poles — U.S. and China — the EU and Europeans will need to pick sides for as long as Europe’s security and defense depends on the U.S. umbrella.”

    Russia, in the meantime, is expected to launch massive offensives in just a few weeks, when the harshest winter season comes to an end, according to Ukrainian officials.

    A plane flies past the Chinese spy balloon (top right) | Nell Redmond/EPA

    “Washington will be busy with Beijing for some time now,” a senior EU diplomat said on Sunday. “It’s not goodnews for the EU because Russia is still the main concern.”

    Bad timing

    For Europe, the incident also comes at an inconvenient moment as senior officials have been preparing to re-engage with Beijing.

    The EU’s foreign policy chief, Josep Borrell, is understood to be making plans for a trip to Beijing in April, when he would also be expected to travel to Japan for a G7 ministerial meeting. Separately, French President Emmanuel Macron has also announced his intention to meet President Xi Jinping in the Chinese capital early this year; he would be interested in taking a top official from the European Commission to join him, according to an official with knowledge of the plans.

    The latest U.S.-China flare-up “means that we would now have to be watching how badly China reacts, and whether these [planned] trips will be treated as a propaganda success by Beijing in splitting up the transatlantic ties,” a diplomat said on condition of anonymity as he was not authorized to speak on this subject.

    “In the wake of the Ukraine war, the China policy coordination between both sides of the [the Atlantic is] losing steam,” said Reinhard Bütikofer, chair of the European Parliament’s delegation on relations with China. “While Washington D.C. enhances pressure against Beijing particularly on the technological front and in the Taiwan context, Brussels, Berlin and Paris show new hesitancy.” 

    Further complicating matters is Beijing’s apparent lack of interest in helping the West put pressure on Vladimir Putin to end the war in Ukraine.

    Worse, according to a report in the Wall Street Journal, China has emerged as the dominant supplier of dual-use goods to Russia, providing technology that Moscow’s military needs to prosecute its invasion. Chinese state-owned defense companies have shipped navigation equipment, jamming technology and fighter-jet parts to sanctioned Russian government-owned defense companies, according to the article.

    European leaders have repeatedly warned Beijing not to aid Moscow militarily.

    China’s top foreign policy official, Wang Yi, has dropped a plan to visit Brussels even though he would be traveling to Germany for the Munich Security Conference in February, two diplomats told POLITICO. 

    Europe’s reaction to the balloon incident was muted. The EU merely noted the U.S.’s right to defend its airspace. “Safety and protection of airspace is an issue of national security and therefore a competence, responsibility and prerogative” of the specific state or states involved, an EU spokesperson said on Sunday. 

    China’s Vice Foreign Minister Ma Zhaoxu visited Moscow last week to reassure his Russian counterparts | Johannes Eisele/ AFP via Getty Images

    Few European countries supported the Biden administration’s decision in public, highlighting a general sense of reluctance to aggravate Beijing. One of the exceptions was Estonia, where Foreign Minister Urmas Reinsalu, retweeting a BBC report about the balloon’s downing, said: “I support USA operation to defend its sovereignty. I fully condemn provocations jeopardising USA national security.”

    Other U.S. allies did not hold back. Canadian Prime Minister Justin Trudeau praised the operation, tweeting “Canada strongly supports this action — we’ll keep working together … on our security and defense.”

    South Korea’s Foreign Minister Park Jin, during a visit to Washington, said “I sufficiently understand the decision to postpone Secretary [Blinken]’s visit to China and I think that China should make a swift and very sincere explanation about what happened.”

    Tom Tugendhat, U.K. security minister and a long-time skeptic of Beijing, called for concern over other forms of Chinese threats. “Worried about being spied on from the sky? Look at what some apps are collecting on your phone and consider your cyber security. Some risks are much closer to home,” he tweeted.  

    EU foreign policy in 2023 may be defined by which of these expires first: European  indecision over China, or America’s appetite for providing Europe’s defense. 

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    Stuart Lau

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  • The rising cost of living isn’t the only reason many in Asia are putting off retirement, Randstad says

    The rising cost of living isn’t the only reason many in Asia are putting off retirement, Randstad says

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    Workers surveyed in China are the least likely to retire as soon as possible — even “in an ideal world,” Randstad said. And 3% of workers in Asia-Pacific never want to retire at all, which is the highest percentage out of all regions.

    Edwin Tan | E+ | Getty Images

    The cost of living crisis is delaying the retirement plans of working professionals worldwide, said recruitment agency Randstad.

    But those in Asia will continue to work because for reasons beyond a paycheck, according its new report.

    Its latest Workmonitor report found that only half of surveyed workers believe they can permanently leave the workforce before they turn 65, down from 61% last year.

    “A faltering global economy, high inflation and diminishing government aid have many people reconsidering such a move,” Randstad said. 

    The annual report surveyed 35,000 people across 34 markets for their sentiments on the world of work. 

    While 70% of workers surveyed said that money worries are preventing them from enjoying their golden years, workers in Asia-Pacific are more likely to feel that work is a necessity in their lives.

    For example, 66% of those from India and 61% from China saw work as a “need” — almost twice the global average of 32%.

    % who say they “need work” in their lives

    Country % of respondents
    India 66
    China 61
    Malaysia 45
    Singapore 43
    Japan 34

    Source: Randstad

    “Whether for meaning and purpose, social interaction or to experience the challenges that come with a job, employment for many is more than just a paycheck,” Randstad said. 

    “It keeps them connected and gives them a sense of belonging.”

    Feeling valued and respected 

    Workers also stay at their jobs because they “feel a sense of obligation to their employer,” said Randstad. 

    The report found that about one fifth, or 21%, of Asia-Pacific workers felt that their employer needing them would deter them from retiring, compared with 12% of the global population.

    “There are cultural factors at play here with the role of work and education in people’s lives,” Sander van ‘t Noordende, the CEO of Randstad, told CNBC. 

    Workers feel they “need” work in their lives because having a stable job allows them to “feel valued and respected” by their peers, he added. 

    % who feel their employer “needs” them

    Region %
    Asia-Pacific 21
    North America 12
    Latin America 7
    Northwestern Europe 10
    Eastern Europe 10
    Southern Europe 8

    Source: Randstad

    “However, the countries’ booming economies and an exponential increase in demand for talent, both domestically and internationally, are also likely to contribute to this disparity compared to global counterparts.” 

    Asia is home to three out of five of the world’s largest economies, which include China, Japan and India.

    Workers in some Asian countries were also more likely to say that they consider work an “important part of their lives,” van ‘t Noordende added. 

    For example, 89% of workers in China consider this to be true and 90% of Indians agree — which is almost 20% higher than the global average, according to the report.

    What it means for employers 

    Regardless of where workers are located, they want “the whole package” from their employers, said van ‘t Noordende, which is secure, flexible, inclusive and financially stable work

    “People want to feel like they belong at work and demand that their organization mirrors their own priorities in terms of things such as flexibility and good work-life balance,” he added. 

    “This is particularly true of the younger generations, who are seeking more satisfaction from work than a pay cheque alone provides.” 

    That’s also crucial in Asia, where labor markets continue to be tight. Employers should therefore focus on how to attract and retain talent, said van ‘t Noordende. 

    “It’s becoming increasingly evident that workers are prepared to quit their jobs if they do not meet their demands. For example, over half of Asia-Pacific workers would quit a job if they felt like they didn’t belong there.” 

    On top of that, talent scarcity will grow in the coming years in light of shifting demographics, added Randstad. 

    “Companies should develop flexible roles that allow those near retirement age to slowly transition from full time to part time and then completely retire.” 

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  • ASML says ‘rules are being finalized’ on chip export controls to China | CNN Business

    ASML says ‘rules are being finalized’ on chip export controls to China | CNN Business

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    Hong Kong
    CNN
     — 

    ASML, a Dutch maker of semiconductor equipment, says “rules are being finalized” on export controls, amid reports that the Netherlands and Japan have joined the United States in restricting sales of some computer chip machinery to China.

    “It is our understanding that steps have been made towards an agreement between governments which, to our understanding, will be focused on advanced chip manufacturing technology, including but not limited to advanced lithography tools,” the company told CNN late Friday in response to questions about export controls to China.

    “Before it will come into effect it has to be detailed out and implemented into legislation which will take time.”

    ASML is known for its prowess in making lithography machines, which uses light to print patterns on silicon. The firm says that step is crucial in the mass production of microchips.

    The company’s response came as Bloomberg, the Wall Street Journal and the Financial Times reported over the weekend that the United States had persuaded the Netherlands and Japan to agree to curb exports of certain chipmaking equipment to China, citing anonymous sources.

    A deal was reached at the White House on Friday, though it was not officially announced, partly due to “concerns by Japan and Netherlands about potential retaliation by China,” according to the Journal, which cited a person familiar with the matter.

    Bloomberg reported that the deal “would extend some export controls the US adopted in October” to Dutch and Japanese companies, including ASML

    (ASML)
    , Nikon

    (NINOY)
    and Tokyo Electron.

    The Biden administration had banned Chinese companies from buying advanced chips and chipmaking equipment without a license. It also restricted the ability of American citizens to provide support for the development or production of chips at certain manufacturing facilities in China.

    The White House did not immediately respond to a request for comment outside US business hours. Nikon and Tokyo Electron declined to comment.

    On Saturday, Japan’s Economy and Trade Minister Yasutoshi Nishimura told reporters that he would “refrain from commenting on diplomatic negotiations.”

    Asked about the three-way talks in Washington, Nishimura said “we would like to respond appropriately while taking into consideration the regulatory trends in each country.”

    Because of its dominance in the market, ASML has been cited by experts as a bellwether of the growing rift between China and the West over access to advanced technology.

    In recent months, the Dutch government has faced pressure from the United States to limit chip-related exports to China, particularly from ASML, according to Xiaomeng Lu, director of geo-technology at the Eurasia Group.

    In its Friday statement, the company said that based on what has been said by government officials and current market conditions, it did not expect any material impact on its financial projections for 2023.

    But ASML said its knowledge of the new rules was still limited, making it difficult to map out “the medium and long-term financial, organizational and global industry-wide impact of new export control rules.”

    “While these rules are being finalized, ASML will continue to engage with the authorities to inform them about the potential impact of any proposed rule in order to assess the impact on the global semiconductor supply chain,” it said.

    It noted that it mainly sold “mature” products to China, and its most advanced lithography technology had already been restricted since 2019.

    Those machines had been prohibited from being sent to China because the Dutch government had “refused to grant it a license under US pressure,” Lu previously told CNN.

    — CNN’s Emiko Jozuka contributed to this report.

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  • Cargo ship capsizes off Japan’s coast with 22 aboard | CNN

    Cargo ship capsizes off Japan’s coast with 22 aboard | CNN

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    Tokyo
    CNN
     — 

    Nine crew members remain missing after a cargo ship capsized off Japan’s Nagasaki prefecture on Wednesday, the Japan Coast Guard told CNN.

    The coast guard said it received a distress signal from the Hong Kong-flagged vessel Jin Tian late on Tuesday night as it cruised 110 kilometers (68 miles) west of the Danjo Islands in the East China Sea with a crew of 22 people aboard.

    The crew – 14 Chinese and eight Myanmar nationals – are believed to have been transferred to lifeboats before rough seas impacted their rescue, the Japan Coast Guard said.

    Thirteen crew members have been rescued so far – five by commercial vessels cruising nearby, two by Japan Air Self-Defense Force helicopters and six by the South Korean maritime police, the Japan Coast Guard said.

    The coast guard said the Jin Tian had been expected to reach the port of Incheon, South Korea, on Wednesday. It left Malaysia’s Port Klang in early December, according to tracking site MarineTraffic.

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  • Cargo ship sinks between Japan, S Korea; 17 missing

    Cargo ship sinks between Japan, S Korea; 17 missing

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    Search and rescue efforts under way after a cargo ship carrying lumber capsizes between Japan and South Korea.

    Japan and South Korea are searching for 17 crew members of a cargo ship that capsized in rough weather.

    Japanese and South Korean media said five members of the crew were rescued on Wednesday after the 6,551-tonne “Jintian” sank off the coast of Japan’s Nagasaki. All of them were picked up by nearby vessels.

    The ‘Jintian’ went under nearly four hours after its crew sent a distress call late on Tuesday, according to Japan’s Kyodo news agency.

    The crew said their ship had “tilted and is flooding”, the agency reported.

    Japanese officials said 14 crew members on the Hong Kong-registered ship are Chinese and eight are from Myanmar.

    According to South Korean officials, the ship’s captain last communicated with the coast guard of South Korea’s Jeju Island through a satellite phone at about 2:41am local time on Wednesday (17:41 GMT Tuesday), saying that crew members would abandon the ship.

    The ship was completely submerged when the South Korean Coast Guard arrived at the scene, reported the Yonhap news agency.

    The crews did not find anyone on the three life rafts and two lifeboats they searched.

    There was no immediate word on what caused the vessel, which was carrying lumber, to capsize.

    The incident happened as a cold snap hit much of Japan and South Korea, with heavy snow falling in some areas and daytime temperatures in some of the islands nearest the rescue site reaching just 3C (37F).

    Japan’s coast guard said winds were strong at the time the distress signal was received.

    It said it had dispatched patrol boats and aircraft to the area, but their arrivals were delayed by rough weather.

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  • Japan considers downgrading Covid-19 to same level as seasonal flu | CNN

    Japan considers downgrading Covid-19 to same level as seasonal flu | CNN

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    Tokyo
    CNN
     — 

    Japan will consider downgrading Covid-19 to the same category as seasonal influenza this spring, Prime Minister Fumio Kishida announced Friday.

    Kishida said he had instructed Health Ministry officials to discuss the move and his administration would also review rules on face masks and other pandemic measures.

    “In order to further advance the efforts of ‘living with Corona’ and restore Japan to a state of normalcy, we will transition the various policies and measures to date in phases,” Kishida said.

    While daily Covid-19 cases in Japan have declined in recent weeks, the country still faces around 100,000 new infections a day.

    Covid-19 is categorized as a Class 2 disease, the same status as tuberculosis and avian influenza, according to Japan’s Health Ministry. Officials will now discuss reclassifying it to Class 5 – the lowest rank, which includes seasonal flu.

    Japan fully reopened its borders to overseas visitors last October after more than two years of pandemic restrictions, ending one of the world’s strictest border controls.

    Influenza – or the common flu – and Covid-19 are both contagious respiratory illnesses with simlar symptoms, but they are caused by different viruses and require testing to confirm a diagnosis, the United States’ Centers for Disease Control and Prevention (CDC) says on its website.

    According to the CDC, the risk of death or hospitalization from Covid-19 is greatly reduced for most people due to high levels of vaccination and population immunity from previous infections.

    However, the World Health Organization still lists the coronavirus outbreak as a pandemic, and reiterated in its latest update a recommendation for people to wear masks following recent exposure or close contact with Covid-19, and for “anyone in a crowded, enclosed, or poorly ventilated space” to do the same.

    WHO director-general Tedros Adhanom Ghebreyesus called on governments last week to continue sharing the sequencing data of the coronavirus, as it remained vital to detect and track the emergence and spread of new variants.

    “It’s understandable that countries cannot maintain the same levels of testing and sequencing they had during the Omicron peak. At the same time, the world cannot close its eyes and hope this virus will go away. It won’t,” he said.

    The news came as South Korea announced it will lift its mask mandate for most indoor areas, with exceptions for public transport and health facilities. The changes will take effect on January 30, South Korean Prime Minister Han Duck-soo said Friday.

    The measure will be lifted after the Lunar New Year holiday, when a large number of people are expected to travel, the Korea Disease Control and Prevention Agency (KDCA) said.

    New Covid-19 cases, severe cases and related deaths are all declining and the country’s medical response capacity remains stable, KDCA added.

    The agency has strongly recommended people wear masks if they have Covid-19 related symptoms, belong to a high-risk group, have been in contact recently with a positive case, or are in a crowded space.

    Masks will still be required on public transport and in health facilities after South Korea eases its indoor mask mandate on January 30, 2023.

    The prime minister said the easing of the mandate could result in a temporary surge of new cases and urged health authorities to stay vigilant.

    South Korea has scrapped most of its pandemic restrictions and eased its outdoor mask mandate in May 2022. It still requires people who test positive to undergo seven days of home isolation.

    The country has also restricted travel from mainland China and implemented testing requirements for people arriving from China, Hong Kong and Macau following Beijing’s easing of Covid restrictions.

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  • Stocks fall on recession fears, adding to biggest retreat of the year

    Stocks fall on recession fears, adding to biggest retreat of the year

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    Wall Street is opening lower as worries build that the U.S. may be headed for a painful recession. 

    The S&P 500 fell 30 points, or 0.8%, to 3,899 and the Dow Jones Industrial Average fell 252 points, 0.8%, to 33, 045 — their third straight drop. The Nasdaq composite lost 1%. 

    Every major index is on track for a weekly loss after the market kicked off the year with a two-week rally. Analysts expect the broader market to remain unsteady as investors try to get a clearer picture of inflation and the economy’s path ahead.

    “It’s very reflective of the conflicting views that investors have with respect to where things are headed here in early 2023,” said Greg Bassuk, CEO at AXS Investments.

    Reports showed weakness in several areas of the economy, including the housing industry and manufacturing in the mid-Atlantic region, though they weren’t quite as bad as expected and the job market appears to remain healthy. They follow worse-than-expected readings a day earlier on retail sales, a cornerstone of the economy, and industrial production. Altogether, they show an economy slowing under the weight of last year’s blizzard of rate hikes by the Federal Reserve. 

    While acknowledging investors’ overall negativity as a valid response to the latest economic data, analysts remained fairly optimistic.

    “The tenor of the market swung dramatically toward the negative end of the sentiment spectrum on Wed[nesday], and it remains there so far this morning,” analyst Adam Crisafulli of Vital Knowledge said in a research note. “Investors were crowding into the ‘soft landing’ narrative up until Tues[day], but things changed in the last 24 hours thanks to bad growth data, mounting layoffs, disinflation figures that didn’t sway Fed officials.”

    Added Crisafulli, “We think the landing will be more soft than hard, and the YTD rally hasn’t concluded.” 


    2022 ended with lower inflation, but Fed could still raise interest rates

    06:18

    Higher Fed hikes likely

    The U.S. government reported Wednesday that Americans cut back on their retail spending more than anticipated in December, the second consecutive monthly decline. Separately, the Federal Reserve said U.S. industrial production, which covers manufacturing, mining and utilities, fell in December much more than economists had expected.

    On the other hand, wholesale prices — goods bought and sold before they reach the consumer — fell for the sixth consecutive month, though those prices rose 6.2% in December from a year earlier.

    Investors have been hoping that easing inflation and a slowdown in economic growth might influence the Federal Reserve’s position on interest rates. The central bank aggressively raised rates throughout 2022 in an effort to cool hot inflation.But a key Federal Reserve policymaker said interest rates need to go higher than the central bank signaled earlier.

    “On the macro front, there remain lingering uncertainties about the outlook for the global economy,” said Anderson Alves, trader at ActivTrades. “A slew of disappointing U.S. data releases and hawkish Fed rhetoric are also adding to the risk-off mood across markets.”

    Talk of mild recession

    The broader economic picture is still not clear enough to see whether the Fed will succeed in avoiding a recession. Several major banks have forecast at least a mild recession at some point in 2023 and many companies have been reporting lower profit margins as consumers pull back on their spending. 

    While the overall number of people seeking unemployment benefits in the U.S. reached a four-month low last week — a sign that employers are holding on to their workers despite the Federal Reserve’s efforts to slow the economy and tamp down inflation — layoffs in the tech industry continue. 

    On Wednesday, Microsoft said it is cutting 10,000 workers over the next eight months. The company said the cuts, some of which begin immediately, represent under 5% of its employee base.

    “We are in a period of maximum uncertainty for the economy, and the stock market, because a deep drop in the economy would justify an additional, deeper dive in stocks,” Chris Zaccarelli, chief investment officer for Independent Advisor Alliance, said in reaction to jobless claims data. “On the other hand, if the economy remains at full employment, consumer spending holds up reasonably well and the parts of the economy that didn’t over-hire, continue to operate as normal, then stocks could go higher,” he said.

    In energy trading Thursday, U.S. benchmark crude fell 51 cents to $78.97 a barrel. It fell 70 cents to $79.48 per barrel on Wednesday. Brent crude, the international pricing standard, lost 37 cents to $84.61 a barrel.

    In currency trading, the U.S. dollar declined to 128.45 Japanese yen from 128.87 yen. The euro cost $1.0819, up from $1.0796.

    The S&P 500 fell 1.6% on Wednesday, while the Dow industrials lost 1.8%. The Nasdaq composite slid 1.2%, ending a seven-day winning streak. The losses are a reversal for the market, which kicked off the year with a two-week rally.

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  • Asian shares mixed after biggest Wall St retreat of the year

    Asian shares mixed after biggest Wall St retreat of the year

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    TOKYO (AP) — Asian shares were trading mixed Thursday, as investors grew cautious after Wall Street’s biggest pullback of the year.

    Shares dipped in Tokyo, but rose in Seoul and Sydney, where they recouped earlier losses by late morning. Hong Kong shares were slightly lower, while Shanghai shares were little changed.

    Japan’s benchmark Nikkei 225 slipped 1.5% to 26,380.26. Australia’s S&P/ASX 200 gained 0.6% to 7,437.10. South Korea’s Kospi added 0.3% to 2,376.08. Hong Kong’s Hang Seng was nearly unchanged at 21,672.07, while the Shanghai Composite rose 0.1% to 3,228.60.

    In a bit of positive news, data from the Japan National Tourism Organization showed that tourist and other kinds of travel to Japan from Asia outside China had recovered last month.

    Visitors totaled 1.37 million people in December, about the same level as December in 2020, according to the data. But more time is needed before such numbers return to pre-COVID-19 levels, a report from SMBC Nikko said.

    “On the macro front, there remains lingering uncertainties about the outlook for the global economy. A slew of disappointing U.S. data releases and hawkish Fed rhetoric are also adding to the risk-off mood across markets,” said Anderson Alves, trader at ActivTrades.

    The S&P 500 fell 1.6% to 3,928.86 after having been up as much as 0.6% in the early going. The Dow Jones Industrial Average lost 1.8% to 33,296.96 and the Nasdaq composite slid 1.2%, ending a seven-day winning streak, to 10,957.86. The losses are reversal for the market, which kicked off the year with a two-week rally.

    The Russell 2000 index fell 1.6% to 1,854.36.

    The selling came as new economic data showed that as inflation cools, the economy is slowing, heightening worries about the possibility of a recession. Meanwhile, a key Federal Reserve policymaker said interest rates need to go higher than the central bank signaled earlier.

    The government reported Americans cut back on their spending at retailers more than anticipated last month, the second straight decline. Separately, the Federal Reserve said U.S. industrial production, which covers manufacturing, mining and utilities, fell in December much more than economists had expected.

    The government also reported more encouraging inflation data. Wholesale prices rose 6.2% in December from a year earlier, a sixth straight slowdown for the measure of prices before they are passed along to consumers.

    Investors have been hoping that easing inflation and a slowdown in economic growth might influence the Federal Reserve’s position on interest rates. The central bank aggressively raised rates throughout 2022 in an effort to cool hot inflation, but that has hurt prices of stocks and bonds, and risks going too far and bringing on a recession.

    While there’s growing evidence that high inflation is finally easing, further rate hikes are still needed, according to Loretta Mester, president of the Federal Reserve Bank of Cleveland.

    “I still see the larger risk coming from tightening too little,” Mester said in an interview Tuesday with The Associated Press.

    Mester stressed her belief that the Fed’s key rate should rise a “little bit” above the 5% to 5.25% range that policymakers have collectively projected for the end of this year. It has raised its key overnight rate to a range of 4.25% to 4.50% from roughly zero a year ago. The Fed will announce its next decision on interest rates Feb. 1. Investors are largely forecasting a raise of just 0.25 percentage points next month, down from December’s half-point hike and from four prior increases of 0.75 percentage points.

    The broader economic picture is still not clear enough to see whether the Fed’s fight against inflation is working well enough to avoid a recession. Several major banks have forecast at least a mild recession at some point in 2023.

    Technology stocks were among the biggest drags on the market, including a 1.9% drop in Microsoft after the tech titan joined others in its industry in announcing layoffs. The software giant is cutting 10,000 workers or almost 5% of its workforce.

    Investors reviewed the latest batch of corporate earnings for more insight into how inflation and consumer spending are affecting profits and revenue. PNC Financial Services Group fell 6% after reporting weak earnings.

    In energy trading Thursday, U.S. benchmark crude fell $1.25 to $78.23 a barrel in electronic trading on the New York Mercantile Exchange. It fell 70 cents to $79.48 per barrel on Wednesday.

    Brent crude, the international pricing standard, lost $1.10 to $83.88 a barrel.

    In currency trading, the U.S. dollar declined to 128.00 Japanese yen from 128.87 yen. The euro cost $1.0799, little changed from $1.0796.

    ___

    AP Business Writers Damian J. Troise and Alex Veiga contributed to this report.

    Yuri Kageyama is on Twitter https://twitter.com/yurikageyama

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  • Tokyo High Court acquits three former Tepco executives over 2011 Fukushima nuclear accident: NHK | CNN

    Tokyo High Court acquits three former Tepco executives over 2011 Fukushima nuclear accident: NHK | CNN

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    Tokyo
    CNN
     — 

    The Tokyo High Court on Wednesday acquitted three former Tokyo Electric Power Company (Tepco) executives, finding them not guilty of manslaughter over the 2011 triple reactor meltdown at its Fukushima Daiichi nuclear plant, Japan’s public broadcaster NHK reported Wednesday.

    The High Court’s ruling was a decision on an appeal against a 2019 judgment by the Tokyo district court that found former Tepco chairman Tsunehisa Katsumata and former executive vice presidents Ichiro Takekuro and Sakae Muto were not guilty of professional negligence on the grounds they could not have foreseen the tsunami that wrecked the plant.

    On March 11, 2011, an earthquake off Japan’s northeastern coast triggered the tsunami that flooded the plant’s reactors, causing the worst nuclear disaster since Chernobyl and forcing hundreds of thousands of people to flee their homes.

    The High Court case focused on whether the tsunami could have been predicted and whether the accident at the nuclear plant could have been prevented.

    The criminal case against the executives follows a civil case in which a Tokyo court in July 2022 ordered the three men – along with Tepco’s former President Masataka Shimizuto – to pay 13 trillion yen ($95 billion) in damages to the operator of the wrecked plant.

    That ruling, which came after shareholders filed a lawsuit in 2012, was the first to find former Tepco executives legally responsible for the nuclear plant disaster.

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  • The art of getting to

    The art of getting to

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    Tokyo — It seemed like an ordinary date; Dinner at a plush restaurant followed by a romantic stroll around the restaurant grounds. But suddenly, a smiling staff member appeared out of nowhere, guiding the couple through a fairytale-like gate to the steps of an English-style chapel.

    As his date stood awkwardly the man went into action, dropping to one knee and brandishing a tiny engagement ring box. The startled young woman scarcely had time to mumble her assent before his parents stepped into view to offer their congratulations, and then, from a jumbo-sized monitor, her family joined in on the fun via video link, shouting greetings from their home in Taiwan.

    japan-engagement.jpg
    A man, a client of Tokyo-based weddings, events and marriage proposal consulting company Anniversaire, proposes to his girlfriend on the steps leading up to the firm’s Western-style “chapel” in the Japanese capital.

    Anniversaire promotional video


    Another mission accomplished for Anniversaire, a Tokyo-based weddings and events company that in recent years has leapt into the thriving business of marriage proposal consulting, a field that cropped up overseas but has started to gain traction here. In Japan, it generally involves steering men in their late 20s and early 30s through the finer points of getting to “yes.”

    Anniversaire began fielding inquiries from anxious would-be grooms starting in 2014. The trend was fueled by the rise of social media, said Fumika Nishimura, a “proposal planner” who also arranges weddings for the firm in Tokyo.

    “When guys go online to research ‘where to propose,’ they find tons of posts by women showing off their engagements in (fancy) locations,” she told CBS News.

    In the Instagram-era, a simple declaration of devotion in the privacy of one’s home just doesn’t cut it.

    “We get a lot of women asking for re-dos,” Nishimura said. One couple — who had already scheduled their wedding — forked over extra fees to schedule a luxurious reenactment of their engagement at the company’s lavish wedding hall.

    “When women get proposed to, they want to tell their friends,” she said, adding that a plain old selfie snapped in someone’s living room is a definite no-no. Young men, too, appear fixated on the idea that when it comes to getting engaged, it’s location, location, location — preferably with a dramatic night sky.

    japan-engagement2.jpg
    A man prepares to propose to his girlfriend on the steps of a Western-style “chapel” that is part of the wedding and engagement facilities on offer by the Anniversaire consultancy firm in Tokyo, Japan. 

    Anniversaire promotional video


    Maybe money can’t buy love, but it sure helps when it comes to securing the services of a proposal planner. The barebones price of about $200 buys just an hour with a proposal consultant, plus a 30-minute location rental fee. At the company’s fashionable site in Tokyo, the romantic backdrop of choice is the chapel, a recently renovated “church” featuring 140-year-old stained glass and royal blue carpeting. (Christian-style weddings, often officiated by foreign actors performing the role of minister and held in buildings meant to resemble Western houses of worship, comprise the bulk of such ceremonies in Japan, which is a non-Christian country.)

    Nishimura helps jittery suitors compose their pitches. Unless it’s short and to the point, like “Marry me!” she advises reading from carefully composed notes. Some men also fret about which leg to kneel on (either one works, but the best camera angle is on the man’s “open” side.) With one particularly tongue-tied customer, Nishimura ended up writing the whole proposal herself.

    But the client needn’t have sweated. More than 2,000 proposals later, Nishimura said not a single suitor has been turned down. “If the client is putting down cash for a proposal, the couple is more or less already on the same page about settling down,” she reckons.

    Most clients are willing to shell out for extras, like renting formal wear or having the soon-to-be fiancée transported via stretch limo, bringing the average price in 2022 to almost $1,000. That fee doesn’t include the purchase of an engagement ring, nor the contemporary custom of presenting fiancées with an enormous bouquet of 108 roses, a number that in Japanese also means “forever.” In this case, floral eternity weighs more than ten pounds, and costs close to $400.

    japan-engagement-roses.jpg
    A young man presents his girlfriend with a bouquet of 108 roses just before asking her to marry him, inside the “chapel” of the wedding and engagement consultancy firm Anniversaire, in Tokyo, Japan.

    Anniversaire promotional video


    Clients can opt to have the moment immortalized in a cinematic-style film. The company’s online examples — from actual customers — aren’t exactly “Notting Hill,” but they seem perfectly calibrated to activate the tear glands.

    The rise of proposal consulting offers a small ray of hope to Japan’s struggling wedding industry, which includes hotels, restaurants, wedding halls, and upscale “guest houses” like Anniversaire.

    During the 1980s, when celebrity weddings received wall-to-wall media coverage, Japanese often indulged in garish spectacles — couples descending in gondolas accompanied by dry-ice clouds, loud music and light displays. But a 2021 report on the restructuring of the domestic bridal industry by the Ministry of Economy, Trade and Industry found that the number of couples tying the knot was already in decline by 2013, falling by over 12% in 2020 to just over half a million.

    Those who do marry generally spurn the circus-like weddings of the 1980s, the report said. Average spending on weddings plunged to about $20,000 in 2021.

    With fewer and fewer domestic customers, wedding businesses are starting to look to foreign tourists to help make up the difference. Destination proposal, anyone? 

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  • World’s top chip maker mulls global expansion with plants in Europe, Japan | CNN Business

    World’s top chip maker mulls global expansion with plants in Europe, Japan | CNN Business

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    New Delhi
    CNN
     — 

    Semiconductor giant Taiwan Semiconductor Manufacturing Company (TSMC) may expand its global manufacturing footprint even further.

    The company is considering opening its first plant in Europe and a second one in Japan, its CEO CC Wei said in an earnings call on Thursday.

    TSMC, which produces an estimated 90% of the world’s super-advanced chips, has already upped its investment in the United States. The company announced last year that it’s building a second semiconductor factory in Arizona and raising its investment there from $12 billion to $40 billion.

    Speaking about TSMC’s new plans on Thursday, Wei said that in Europe “we’re engaging with customers and partners to evaluate the possibility of building a specialty fab, focusing on automotive-specific technologies, based on the demand from customers and level of government support.”

    A fab refers to a semiconductor fabrication plant.

    The company is also considering building a second fab in Japan, “as long as the demand from customers and the level of government support makes sense,” he said.

    These plans come amidst falling demand for semiconductors because of a weakening global economy.

    “In the first half of 2023, we expect our revenue to decline [by] mid- to high single-digit percent over the same period last year in US dollar terms,” Wei said, adding that he expects revenue to increase in the second half of the year.

    “For the full year of 2023, we forecast the semiconductor market, excluding memory, to decline approximately 4%,” he added.

    TSMC is considered a national treasure in Taiwan and supplies tech giants including Apple and Qualcomm. It mass produces the most advanced semiconductors in the world, components that are vital to the smooth running of everything from smartphones to washing machines.

    The company is perceived as being so valuable to the global economy, as well as to China — which claims Taiwan as its own territory despite having never controlled it — that it is sometimes even referred to as forming part of a “silicon shield” against a potential military invasion by Beijing.

    TSMC’s presence gives a strong incentive to the West to defend Taiwan against any attempt by China to take it by force, analysts say.

    The company’s international expansion has caused deep unease in Taiwan.

    Apart from the risk that TSMC will take its most advanced technology with it — stripping Taiwan of one of its unique assets and reducing employment opportunities locally — there are fears that a diminished presence for the company could expose Taipei, Taiwan’s capital, to greater pressure from Beijing.

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  • Japanese prime minister’s visit highlights cornerstone of Biden foreign policy | CNN Politics

    Japanese prime minister’s visit highlights cornerstone of Biden foreign policy | CNN Politics

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    CNN
     — 

    As President Joe Biden and Japanese Prime Minister Fumio Kishida met privately in Tokyo last year, Biden delivered a message that was as strategic as it was genuine.

    US support for a more assertive defense and security posture from Japan was understood, but Biden made clear that if there was anything he could offer to bolster – or provide cover for – that effort, it should be considered on the table.

    Eight months later, the product of that one-on-one meeting was marked by another. This time the backdrop was the Oval Office.

    “Let me be crystal clear,” Biden said as he sat beside Kishida surrounded by cameras. “The United States is fully, thoroughly, completely committed to the alliance.”

    For Biden and his national security team, Kishida’s visit serves as equal parts culmination and continuation of a foundational effort pursued since the opening days of the administration. It’s one that extends beyond a single bilateral relationship at a moment when geopolitical tensions and risks have converged with an approach to reshape the security posture of allies in Europe and the Indo-Pacific.

    China has rapidly expanded its military capabilities, while also being increasingly clear about its territorial ambitions. Russia’s invasion of Ukraine set off the largest armed conflict in Europe since World War II. Throughout, North Korea has rapidly accelerated missile tests and its own provocative actions.

    For Biden, a geopolitical climate trending toward instability has created an opportunity to support allies in their efforts to build out their security and defense capabilities – one that national security adviser Jake Sullivan framed as a new version of a central concept of President Ronald Reagan’s foreign policy.

    “For Reagan, it was peace through American strength,” Sullivan said in an interview with CNN. “For Biden, it’s peace through American and allied strength.”

    As the administration enters its third year, the groundwork laid has shown tangible, if sometimes uneven, advances with Germany, Australia and, most definitively, Japan.

    In December, Kishida unveiled a new national security plan that signals the country’s biggest military buildup since World War II, doubling defense spending and veering from its pacifist constitution in the face of growing threats from regional rivals, including China.

    The decision marked a dramatic shift for both the nation and the US security alliance in the Indo-Pacific region.

    “We believed that we could get significant movement, but I don’t think that anybody thought it would be this far, this fast,” a senior administration official told CNN.

    It also came at a moment when Kishida faces his own political challenges at home – challenges Biden was more than willing to try and help assuage.

    Kishida’s visit served as a window into two years of carefully calibrated work by Biden’s team, senior administration officials said – one that created an environment for dramatic shifts to bolster US alliances at an increasingly fraught moment.

    “We began laying the foundation for all of this long before Putin crossed the border of Ukraine,” Sullivan told CNN. “Above all, this has been a huge diplomatic priority.”

    It was a directive handed down by Biden at the start of the administration, with Sullivan as its central architect. The administration sought to build on existing alliances, both bilaterally and regionally, as officials urged their counterparts to accelerate spending and updates to their own security and defense spending strategies.

    They would ensure that it was understood that the US would be there to assist in any process undertaken, whether through boosts to defense capabilities, shifts in US force posture or Biden himself, with a clear statement of support, political cover or – in the case of Kishida – a coveted White House meeting.

    The convergence of geopolitical events dovetailing with that strategy has reshaped security strategies in ways that in prior years may have unsettled allies concerned about increasing regional tensions, or unsettled adversaries willing to match action with escalation.

    Yet the approach has managed to navigate a new willingness to test prior regional risk assessments. That hasn’t been lost on allies, Sullivan said.

    “We’re giving them the confidence that as they go out on a limb, we are not going to saw off that limb,” Sullivan said.

    In the days before Kishida’s visit, the US and Japan announced a significant strengthening of their military relationship and upgrade of the US military’s force posture in the region, including the stationing of a newly revamped Marine unit with advanced intelligence, surveillance capabilities and the ability to fire anti-ship missiles.

    It is one of the most significant adjustments to US military force posture in the region in years, one official said, underscoring the Pentagon’s desire to shift from the wars of the past in the Middle East to the region of the future in the Indo-Pacific.

    It also sent an unequivocal signal about the durability of US support for Japan’s strategic shift – one that administration officials made clear was a critical component of their regional strategy for years to come.

    “When you think about it in terms of longer-term impact, this is a huge increase in net security capability in a place that (is) geographically important,” the official said.

    For a president and an administration intensely focused on China, tending to – and building up – the long-standing critical alliance with Japan was a focal point from the start. Biden invited Kishida’s predecessor, Yoshihide Suga, for the first foreign leader visit of his presidency.

    The decision was made to elevate the Quad – the informal alliance made up of the US, Japan, India and Australia – to the leader level. The US included Japan in consultations over the Indo-Pacific strategy. Administration officials have looked for places across economic and technological sectors to find new areas of cooperation, officials said.

    But if China’s actions had started the steady shift in Japan’s overall posture, Russia’s actions accelerated it to a different level.

    Japan, throughout the US effort to rally allies in response to Russia’s invasion of Ukraine, has served a steadfast partner. Kishida has been explicit about his views of Russia’s actions not just in the context of Europe, but also for the Indo-Pacific.

    “I myself have a strong sense of urgency that Ukraine today may be East Asia tomorrow,” Kishida said in a keynote address in Singapore last June that offered broad outlines of the security strategy shift he was weighing.

    By the time Kishida met Biden in November in Cambodia, he would lay out the specific details to the US president during another one-on-one meeting.

    He also made clear he would take Biden up on his offer during their private meeting in Tokyo. The Biden administration would need to immediately put out a statement in support of the proposal.

    Biden agreed, and the day Kishida publicly announced his plans, an official statement from Sullivan followed in short order, calling it a “bold and historic step.”

    Kishida also requested an invitation to the White House shortly after the December 16 announcement.

    On January 3, the White House publicly announced plans for Kishida’s visit.

    Less than two weeks later, Biden was waiting outside the White House as Kishida pulled up in a black SUV.

    “I don’t think there’s ever been a time when we’ve been closer to Japan in the United States,” Biden said shortly afterward, as the two sat together in the Oval Office.

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  • Exploring the art of Japanese swordsmanship

    Exploring the art of Japanese swordsmanship

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    Exploring the art of Japanese swordsmanship – CBS News


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    They say it’s never too late to try something new, so CBS News correspondent Vlad Duthiers kicked off 2023 by learning the art of Japanese swordsmanship, a passion he’s always wanted to explore. Duthiers learns the history of the samurai sword and what it takes truly master the katana.

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  • Toyota pushes zero-emission goals by converting old models

    Toyota pushes zero-emission goals by converting old models

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    CHIBA, Japan (AP) — To accelerate the global move toward sustainable vehicles, Toyota is suggesting simply replacing the inner workings of vehicles already on the roads with cleaner technology like fuel cells and electric motors.

    “I don’t want to leave any car lover behind,” Chief Executive Akio Toyoda said Friday, appearing on the stage at the Tokyo Auto Salon, an industry event similar to the world’s auto shows.

    The message was clear: Toyota Motor Corp. wants the world to know it hasn’t fallen behind in electric vehicles, as some detractors have implied.

    Japan’s top automaker, behind the Lexus luxury brands and the Prius hybrid, is highlighting its clout: It has all the technology, engineering, financial reserves and industry experience needed to remain a powerful competitor in green vehicles.

    Toyoda told reporters it would take a long time for all the cars to become zero emission, as they only make up a fraction of the vehicles being sold. Changing old cars to go green, or “conversion,” was a better option, he said.

    Toyoda, the grandson of the company founder and an avid racer himself, was also hoping to debunk the stereotype that clean cars aren’t as fun as regular cars.

    At Toyota’s Gazoo Racing booth, the maker of the Lexus luxury models and Camry sedan showed video of its triumph at world rallies, as well as the battery-electric and hydrogen-powered versions of the Toyota AE86 series including the Toyota Corolla Levin, to underline what Toyoda called its “conversion” strategy.

    The auto industry is undergoing a transformation because of growing concerns about climate change. Automakers are often blamed as the culprits.

    Toyoda said ecological efforts in the auto industry were starting to be appreciated in many nations, but he felt less appreciated in Japan.

    Toyota has dominated the industry with its hybrid technology, exemplified in the Prius, which has both an electric motor and gasoline engine, switching back and forth to deliver the most efficient ride. That has often been seen as reflecting its reluctance to go totally electric.

    Battery electric vehicles make up about 20% of the auto market, despite the hullabaloo about relative newcomers like Tesla and even Dyson. Europe remains ahead of the U.S. and Japan in the move toward electric.

    And so is it unfair to categorize the Japanese automakers as green laggards?

    For one, the scarcity of certain components like lithium could drive up the prices of EVs, and consumers may stick with hybrids, says Matthias Schmidt, chief auto analyst at Schmidt Automotive Research.

    “If this was 2025, and you asked that same question, I would say the Japanese OEMs have missed the boat. But seeing it’s 2023, and the likes of Toyota are beginning their BEV roll-out, their timing is likely bang on schedule,” he said.

    ___

    Yuri Kageyama is on Twitter https://twitter.com/yurikageyama

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  • Japan hugs UK close as it seeks to push back against China

    Japan hugs UK close as it seeks to push back against China

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    LONDON — Japan increasingly sees the U.K. as a key defense and trade ally in its pushback against China in the Indo-Pacific, say senior Japanese officials, as the country makes a diplomatic push to rally G7 nations this week.

    Tokyo has opened its G7 presidency with a diplomatic offensive amid concern about both China and Russia. Prime Minister Fumio Kishida visited Italy and France this week before landing in London — and plans to cap the week with visits to Canada and Washington.

    Kishida is “a strong believer” that “security in Europe and the Indo-Pacific region are inseparable,” the Japanese prime minister’s press secretary, Hikariko Ono, told reporters Wednesday.

    On the same day, U.K. Prime Minister Rishi Sunak and Kishida signed a Reciprocal Access Agreement, the most significant defense pact between the two nations since 1902. The two will ramp up joint military drills and smooth the ability of U.K. forces to be deployed to Japan and vice versa.

    The agreement “cements our commitment to the Indo-Pacific,” Sunak said ahead of the signing, “and underlines our joint efforts to bolster economic security, accelerate our defense cooperation and drive innovation that creates highly skilled jobs.”

    “Collaboration across defense and security would not only benefit Japan and the United Kingdom, but broader global stability, the leaders agreed,” said a Downing Street spokeswoman after the signing ceremony at the Tower of London Wednesday evening.

    Japan is increasingly concerned about security in its backyard. Last December, China and Russia conducted joint live-fire military drills near Japan. And Beijing launched live-fire exercises near Taiwan last summer following Moscow’s invasion of Ukraine. This prompted Tokyo to update its own national security strategy in December, vowing to increase its defense budget to 2 percent of its GDP — a 20 percent increase.

    Japan’s security environment has become “really severe so that we have no choice but to think about whether or not our current defense capability can really defend the life of the Japanese people,” said Ono, the Japanese prime minister’s spokesperson.

    Last month, London and Tokyo also announced they are teaming up with Italy to develop the Tempest, a new fighter jet kitted out with the latest technology. 

    During his meeting with Sunak, Kashida urged Britain to agree to further bilateral meetings between the foreign and defense ministers from both countries in a bid to further bolster defense ties.

    “We are ready to strengthen our security alliances,” Ono said, and “would like to explore further collaboration” with the U.K.

    As part of this, Tokyo is working to help Britain join the 11-nation Asia-Pacific CPTPP trade bloc. Japan is a founding member and the deal is “not a mere trade agreement, but a strategic agreement,” the spokesperson said, with negotiations with the U.K. “now at the final stage.”

    Kishida and Sunak plan to “jointly tackle the remaining issues regarding the accession,” they said, “so the earliest possible conclusion can be reached.”

    Japan is keen “to promote a free and open Indo-Pacific,” they said, and “fully support” the British government’s engagement in the region. 

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  • The owner of Uniqlo is boosting pay for Japan employees by up to 40% as inflation bites | CNN Business

    The owner of Uniqlo is boosting pay for Japan employees by up to 40% as inflation bites | CNN Business

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    Hong Kong
    CNN
     — 

    Fast Retailing, the Japanese giant that owns popular clothing brands Uniqlo and Theory, will start paying its employees much more this year.

    The company announced Wednesday that it would boost salaries in Japan by up to 40%, acknowledging that “remuneration levels have remained low” in the country in recent years.

    “This will include employees from headquarters and corporate departments responsible for the functions of the company’s global headquarters, as well as employees working in stores,” the firm said in a statement.

    The move comes just days after Japanese Prime Minister Fumio Kishida called on business leaders to accelerate raises for workers, warning that the economy risked falling into stagflation if wage rises continued to fall behind price increases.

    Japan is grappling with the biggest drop in living standards in nearly a decade.

    Last Friday, the world’s third largest economy reported its worst real-wage decline in more than eight years, exacerbating conditions for workers already contending with higher costs of living.

    In the capital of Tokyo, core inflation, which measures items excluding fresh food, climbed 4% in December compared to a year ago, above the 3.8% expected by economists, according to official figures released Tuesday.

    That was “the highest seen in 40 years,” analysts at Nomura said in a Wednesday report.

    “Inflation in Japan is a factor in our considerations,” a Fast Retailing spokesperson told CNN on Wednesday.

    But the company is generally more focused on aligning “each employee’s remuneration with global standards, to be able to increase our competitiveness,” the representative added.

    The company will officially adjust its overall compensation system in March. Starting salaries for entry-level university graduates will jump by roughly 18%, while new store managers could see a hike of approximately 36%, according to the company.

    The retailer has also been hiking pay for staff in some of its overseas markets, leading to pay bumps ranging from 5% to 25%, the spokesperson said.

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  • Uh, Now What Did Gwen Stefani Tell Allure About Her Harajuku Era?

    Uh, Now What Did Gwen Stefani Tell Allure About Her Harajuku Era?

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    Gwen Stefani — singer, TV personality, beauty entrepreneur and noted cultural appropriator — seems to be a bit confused about her ethnicity.

    This became clear in a recent interview with Allure‘s Senior Editor Jesa Marie Calaor, which began as an opportunity for Stefani to discuss her existing color cosmetics brand GXVE Beauty, but quickly devolved into a confusing string of comments from the star seeming to claim that she’s Japanese. 

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  • War game suggests Chinese invasion of Taiwan would fail at a huge cost to US, Chinese and Taiwanese militaries | CNN Politics

    War game suggests Chinese invasion of Taiwan would fail at a huge cost to US, Chinese and Taiwanese militaries | CNN Politics

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    CNN
     — 

    A Chinese invasion of Taiwan in 2026 would result in thousands of casualties among Chinese, United States, Taiwanese and Japanese forces, and it would be unlikely to result in a victory for Beijing, according to a prominent independent Washington think tank, which conducted war game simulations of a possible conflict that is preoccupying military and political leaders in Asia and Washington.

    A war over Taiwan could leave a victorious US military in as crippled a state as the Chinese forces it defeated.

    At the end of the conflict, at least two US aircraft carriers would lie at the bottom of the Pacific and China’s modern navy, which is the largest in the world, would be in “shambles.”

    Those are among the conclusions the Center for Strategic and International Studies (CSIS), made after running what it claims is one of the most extensive war-game simulations ever conducted on a possible conflict over Taiwan, the democratically ruled island of 24 million that the Chinese Communist Party claims as part of its sovereign territory despite never having controlled it.

    Chinese leader Xi Jinping has refused to rule out the use of military force to bring the island under Beijing’s control.

    CNN reviewed an advance copy of the report – titled “The First Battle of the Next War” – on the two dozen war scenarios run by CSIS, which said the project was necessary because previous government and private war simulations have been too narrow or too opaque to give the public and policymakers a true look at how conflict across the Taiwan Strait might play out.

    “There’s no unclassified war game out there looking at the US-China conflict,” said Mark Cancian, one of the three project leaders and a senior adviser at the Center for Strategic and International Studies. “Of the games that are unclassified, they’re usually only done once or twice.”

    CSIS ran this war game 24 times to answer two fundamental questions: would the invasion succeed and at what cost?

    The likely answers to those two questions are no and enormous, the CSIS report said.

    “The United States and Japan lose dozens of ships, hundreds of aircraft, and thousands of service members. Such losses would damage the US global position for many years,” the report said. In most scenarios, the US Navy lost two aircraft carriers and 10 to 20 large surface combatants. Approximately 3,200 US troops would be killed in three weeks of combat, nearly half of what the US lost in two decades of combat in Iraq and Afghanistan.

    “China also suffers heavily. Its navy is in shambles, the core of its amphibious forces is broken, and tens of thousands of soldiers are prisoners of war,” it said. The report estimated China would suffer about 10,000 troops killed and lose 155 combat aircraft and 138 major ships.

    Japan expands defense of its southern front line to counter China (April 2022)

    The scenarios paint a bleak future for Taiwan, even if a Chinese invasion doesn’t succeed.

    “While Taiwan’s military is unbroken, it is severely degraded and left to defend a damaged economy on an island without electricity and basic services,” the report. The island’s army would suffer about 3,500 casualties, and all 26 destroyers and frigates in its navy will be sunk, the report said.

    Japan is likely to lose more than 100 combat aircraft and 26 warships while US military bases on its home territory come under Chinese attack, the report found.

    But CSIS said it did not want its report to imply a war over Taiwan “is inevitable or even probable.”

    “The Chinese leadership might adopt a strategy of diplomatic isolation, gray zone pressure, or economic coercion against Taiwan,” it said.

    Dan Grazier, a senior defense policy fellow at the Project on Government Oversight (POGO), sees an outright Chinese invasion of Taiwan as extremely unlikely. Such a military operation would immediately disrupt the imports and exports upon which the Chinese economy relies for its very survival, Grazier told CNN, and interrupting this trade risks the collapse of the Chinese economy in short order. China relies on imports of food and fuel to drive their economic engine, Grazier said, and they have little room to maneuver.

    “The Chinese are going to do everything they can in my estimation to avoid a military conflict with anybody,” Grazier said. To challenge the United States for global dominance, they’ll use industrial and economic power instead of military force.

    But Pentagon leaders have labeled China as America’s “pacing threat,” and last year’s China Military Power report mandated by Congress said “the PLA increased provocative and destabilizing actions in and around the Taiwan Strait, to include increased flights into Taiwan’s claimed air defense identification zone and conducting exercises focused on the potential seizure of one of Taiwan’s outlying islands.”

    In August, the visit of then-House Speaker Nancy Pelosi to the island prompted a wide-ranging display of PLA military might, which included sending missiles over the island as well as into the waters of Japan’s exclusive economic zone.

    Since then, Beijing has stepped up aggressive military pressure tactics on the island, sending fighter jets across the median line of the Taiwan Strait, the body of water separating Taiwan and China and into the island’s air defense identification zone – a buffer of airspace commonly referred to as an ADIZ.

    And speaking about Taiwan at the 20th Chinese Communist Party Congress in October, Chinese leader Xi Jinping won large applause when he said China would “strive for peaceful reunification” — but then gave a grim warning, saying “we will never promise to renounce the use of force and we reserve the option of taking all measures necessary.”

    The Biden administration has been steadfast in its support for the island as provided by the Taiwan Relations Act, which said Washington will provide the island with the means to defend itself without committing US troops to that defense.

    The recently signed National Defense Authorization Act commits the US to a program to modernize Taiwan’s military and provides for $10 billion of security assistance over five years, a strong sign of long-term bipartisan support for the island.

    Biden, however, has said more than once that US military personnel would defend Taiwan if the Chinese military were to launch an invasion, even as the Pentagon has insisted there is no change in Washington’s “One China” policy.

    Under the “One China” policy, the US acknowledges China’s position that Taiwan is part of China, but has never officially recognized Beijing’s claim to the self-governing island.

    “Wars happen even when objective analysis might indicate that the attacker might not be successful,” said Cancian.

    The CSIS report said for US troops to prevent China from ultimately taking control of Taiwan, there were four constants that emerged among the 24 war game iterations it ran:

    Taiwan’s ground forces must be able to contain Chinese beachheads; the US must be able to use its bases in Japan for combat operations; the US must have long-range anti-ship missiles to hit the PLA Navy from afar and “en masse”; and the US needs to fully arm Taiwan before shooting starts and jump into any conflict with its own forces immediately.

    “There is no ‘Ukraine model’ for Taiwan,” the report said, referring to how US and Western aid slowly trickled in to Ukraine well after Russia’s invasion of its neighbor started and no US or NATO troops are actively fighting against Russia.

    “Once the war begins, it’s impossible to get any troops or supplies onto Taiwan, so it’s a very different situation from Ukraine where the United States and its allies have been able to send supplies continuously to Ukraine,” said Cancian. “Whatever the Taiwanese are going to fight the war with, they have to have that when the war begins.”

    Washington will need to begin acting soon if it’s to meet some of the CSIS recommendations for success in a Taiwan conflict, the think tank said.

    Those include, fortifying US bases in Japan and Guam against Chinese missile attacks; moving its naval forces to smaller and more survivable ships; prioritizing submarines; prioritizing sustainable bomber forces over fighter forces; but producing more cheaper fighters; and pushing Taiwan toward a similar strategy, arming itself with more simple weapons platforms rather than expensive ships that are unlikely to survive a Chinese first strike.

    Those policies would make winning less costly for the US military, but the toll would still be high, the CSIS report said.

    “The United States might win a pyrrhic victory, suffering more in the long run than the ‘defeated’ Chinese.”

    “Victory is not everything,” the report said.

    China Amb Nicholas Burns vpx

    Breakdown in US-China relations a ‘manufactured crisis,’ US ambassador says (August 2022)

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  • Biden to host Japan’s Kishida for talks on NKorea, economy

    Biden to host Japan’s Kishida for talks on NKorea, economy

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    WASHINGTON — President Joe Biden will host Japanese Prime Minister Fumio Kishida at the White House later this month for economic and security consultations, the U.S. administration announced Tuesday.

    White House press secretary Karine Jean-Pierre said the Jan. 13 meeting will include discussions of North Korea’s nuclear and ballistic missile programs, amid concerns over the potential for another nuclear test by the reclusive nation. Also on the agenda: economic issues, Russia’s invasion of Ukraine, climate change and stability across the Taiwan Strait.

    “President Biden will reiterate his full support for Japan’s recently released National Security Strategy, its presidency of the G7, and its term as a non-permanent member of the United Nations Security Council,” Jean-Pierre said. “The leaders will celebrate the unprecedented strength of the U.S.-Japan Alliance and will set the course for their partnership in the year ahead.”

    The two leaders last met in Bali, Indonesia, during November’s Group of 20 summit.

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