Shangri-La Dialogue: Chinese general hits out at Lloyd Austin over Taiwan; Exclusive Insight: Japanese political figures are confronted with various limitations
Japan defense chief calls for mix of deterrence and dialogue to head off conflict in Asia; China objects to NATO 'threat' label, says Embassy to Norway
Welcome to this issue of The China Brief. Today is June 3, 2023 . Here at The China Brief, we bring you the latest news on China's politics, economy, and society from global media sources, along with exclusive expert analysis. If you find our content helpful, please subscribe to our newsletter.
Japanese political figures are confronted with various limitations
Xin Jisi
In the early 1990s, following the consecutive burst of the real estate and stock market asset bubbles, Japan's economic growth fell into a prolonged stagnation.
Roughly a decade ago, Shinzo Abe took office as Prime Minister, employing an ultra-loose monetary policy aimed at revitalizing the economy. The mechanism by which loose monetary policy takes effect is through lowering the cost of borrowing, thus creating a relaxed financial environment, prompting consumers who originally planned future spending to consume in advance, and business operators planning future expansion of production scale and equipment purchases to invest ahead of time.
The prerequisite for such a monetary policy to work is that the economy faces a temporary and general recession, and the expectations of consumers and entrepreneurs for the future are broadly stable, thus they will react to the monetary policy relaxation.
Unfortunately, however, Japan faces a long-term, structural recession. Until the fundamental problems in the economic and financial system are resolved, the expectations of consumers and entrepreneurs for the future are extremely uncertain. It is therefore not difficult to understand the limited effectiveness of the loose monetary policy advocated by Shinzo Abe.
If we compare the problems of the Japanese economy to toothache caused by cavities, the cure that treats both the symptom and root cause would be to fill the cavity as soon as possible. Loose monetary policies and expansionary fiscal policies are merely methods for pain relief and inflammation reduction. They might temporarily improve the symptoms, but they delay the time required to address the issue fundamentally, objectively prolonging treatment.
Politicians face all sorts of constraints. Perhaps they are very clear in their minds about what should be done, but in reality, without a political consensus for fundamental change, all they can do is reduce inflammation and alleviate pain.
Shangri-La Dialogue: Chinese general hits out at Lloyd Austin over Taiwan
South China Morning Post
Lieutenant General Jing Jianfeng, vice chief of the Central Military Commission’s Joint Staff Department, criticised the US defence secretary, Lloyd Austin, during the Shangri-La Dialogue in Singapore. Speaking on the conference’s sidelines, Jianfeng accused Austin of ignoring facts and distorting the truth about Taiwan. He said Austin had tried to “pull out of Beijing’s one-China principle”. Austin, speaking at the same conference, told fellow attendees the US network of friendly countries in Asia would defend against coercion, especially in the Taiwan Strait.
Japan defense chief calls for mix of deterrence and dialogue to head off conflict in Asia
Japan Times
Japan has proposed a mixture of deterrence and dialogue to prevent conflict in the Indo-Pacific, according to Defence Minister Yasukazu Hamada, speaking in Singapore at a security summit. Hamada said that the international community must come together to uphold common values and principles as "attempts to unilaterally change the status quo through force and coercion, especially in the maritime domain, are gaining momentum." He also referenced Russia's ongoing invasion of Ukraine and opined that "if this aggression is accepted or tolerated, unilateral changes to the status quo by force will be accepted or tolerated in other regions as well." While Hamada did not single out China, he noted the relationship between East Asia and Taiwan, foreign vessels incursion into territorial waters, and delayed undersea cables were "challenging the freedom of the seas." The minister also noted the significance of a free and open rules-based order at sea, explaining that the global energy and food crisis was stimulated by Russia's blockade of the Black Sea and its attacks on Ukrainian ports. Japan is planning on allocating $315bn for defence and aims to acquire long-range weapons and expand Japan’s role within the US alliance.
China objects to NATO 'threat' label, says Embassy to Norway
Nikkei Asia
The Chinese embassy to Norway has "strongly opposed" comments from Nato Secretary-General Jens Stoltenberg that labelled the country a threat during his recent visit to the Scandinavian country. The embassy urged Nato to stop "stirring up regional conflicts".
Austin touts ‘agile’ US presence in Southeast Asia to fight China ‘coercion’
South China Morning Post
US Defence Secretary Lloyd Austin spoke in Singapore at the Security Forum stating that he wants to promote the agile and resilient defence strategy between Southeast Asia and the US in a region where Washington is fighting to have more influence than Beijing. This move comes shortly after the Philippines and the US signed a deal allowing the US access to four additional bases in the South China Sea and the Taiwan Strait, bringing the total number of military sites Washington could use in the country to nine. The move by the US is an attempt to strengthen relationships with Southeast Asia amid growing unease over Beijing's territorial ambitions in territorial waters claimed by countries including the Philippines, Malaysia, Vietnam and Taiwan. Austin's diplomatic blitz to reach Southeast Asian leaders was hoped to drive the message home that the US is a genuine partner that is assisting Southeast Asian countries to fight back against coercion from China. Most countries have strong trade ties with Beijing and relied on Washington for regional security.
Australia Says US Allies Can Have Productive Ties With China
Bloomberg
Australia’s Defense Minister, Richard Marles, has described navigating the country's security and economic relationship with China as difficult and requiring discussion, as he emphasized the country’s determination to be a US ally and to maintain a productive economic relationship with China. China’s continued military expansion in Asia faces opposition from Australia due to a lack of strategic reassurance about its purpose in the region and beyond. Japan and India, fellow Quad members along with Australia and the US, are also facing a difficult situation in regards to economic growth and sustaining military support from the US. Austin's subtle shift to the importance of cooperation with China suggests that Quad members need to find a way of building a more meaningful relationship with China whilst maintaining its essential role within the Indo-Pacific region. Australian Prime Minister Anthony Albanese gave the keynote speech at the annual Shangri-La Dialogue defense summit.
U.S. Defense Chief Vows to Continue Military Actions Near China
NY Times
US Defence Secretary Lloyd Austin has vowed that the US military will continue to maintain a presence in waters and skies close to China. Speaking in Singapore, where the Chinese defence minister had declined to have talks with him, Austin justified activities by the US and its allies and pledged support for Taiwan, both of which are contentious among Beijing officials. China's General Li Shangfu, who declined the meeting, was sanctioned by Washington in 2018 over the purchase of fighter jets and missile systems from Russia. Tensions have grown in recent times over a variety of issues that include growing technological rivalry and US alliance-building in the Asia-Pacific.
Dimon’s Shanghai show points to broader chill in China
Financial Times
JPMorgan recently held its Global China Summit in mainland China under the strapline “Ready for Renewal”. Despite the event being China’s reopening to international business post-pandemic, it was a highly cautious affair that took place entirely behind closed doors in an exercise of avoiding any political landmines in a time in which media freedom in China is at its lowest state in many years. This is encapsulated in a broader principle of foreign businesses on the mainland to primarily avoid political landmines and scripted language is increasingly becoming the norm in communication in China.
US says talks with China key to a prevent ‘crisis or conflict’
Al Jazeera
US Secretary of Defense Lloyd Austin used his keynote speech at the Shangri-La Dialogue in Singapore to express his concern about strained relations between the US and China. He warned of the need for more dialogue, particularly between military leaders from both countries, and spoke of his alarm at aircraft interceptions by the Chinese. Austin contrasted China’s stance with the recent openness of the US to dialogue with Russia on issues of concern. Trading accusations of wrongdoing, relations between Beijing and Washington have hit their worst point in decades.
‘Pick up the phone’: US Defence chief calls out Chinese general at Singapore event
The Age
US Defence Secretary Lloyd Austin has criticised Chinese Defence Minister General Li Shangfu for missing a recent meeting at the Shangri-La Dialogue in Singapore, accusing China of not engaging seriously on mechanisms for crisis management between Chinese and US militaries. The growing tension has cut into negotiations over nuclear proliferation, conflict in the Taiwan Strait and freedom of navigation exercise in the South China Sea. China has denied US allegations that it is trying to contain its ambitions and maintained that the US is engaging in aggressive acts against it.
US, Canadian navies stage rare joint mission through Taiwan Strait
Reuters
A US and Canadian warship sailed through the Taiwan Strait in a joint mission that is an unusual move for US allies. The US Navy confirmed the guided-missile destroyer USS Chung-Hoon and Canada's HMCS Montreal carried out the "routine" transit. US warships approach the strait about once a month, but it is not typical for them to do so with US allies. The mission was carried out amid heightened tensions between Beijing and Washington over Chinese-claimed Taiwan. China has been trying to increase military and political pressure on Taiwan to accept its sovereignty claims, which Taipei strongly rejects.
Turkey's Erdogan to be sworn in for 3rd term as president
Deutsche Welle
Recep Tayyip Erdogan will be inaugurated as Turkish President today after winning a run-off election last weekend in which he narrowly won 52.5% of the vote. His new mandate will allow him to continue with an increasingly authoritarian domestic programme as well as charting an independent regional military path amid global crises like the conflict in Syria and Russia's invasion of Ukraine. Erdogan's government will also oversee rebuilding efforts following a series of earthquakes that devastated parts of the country in February, claiming 50,000 lives. His new cabinet is expected to be announced following a lavish ceremony in the Turkish capital of Ankara.
Japan's growing military strength not a threat - minister
Reuters
Japan's Defense Minister, Yasukazu Hamada, has said that Japan will not use its increasing military strength to threaten other nations. Speaking at the Shangri-La Dialogue, a security conference in Singapore, Hamada affirmed Japan's aim to prioritise diplomatic efforts and dialogue. The comments come after Japan unveiled its biggest military build-up since the end of World War Two last December. Under the five-year plan, Japan is looking to acquire longer-range missiles in the hope of deterring China from any potential force in East Asia. The government is also concerned about the possibility of China attacking Taiwan following Russia's annexation of Crimea.
Could Chinese-led team’s shape-shifter fridge freeze out polluting HFC gases?
South China Morning Post
Chinese and US researchers have created an environmentally-friendly refrigerator that employs elastocaloric technology to achieve high levels of cooling. Stretching nitinol or other elastocaloric alloys in metal tubes creates periodic cooling. The heat created when the tube stretches is released outwards, while when it compresses and cools, it transfers low temperatures to the fridge chamber or refrigeration fluid. The process actively pumps heat from inside the fridge to the outside and escapes the leaks of harmful chemicals that accompany traditional refrigeration systems. The new technology could help phase out super-polluting hydrofluorocarbons. More than 20 elastocaloric coolers have been developed globally to date.
Alibaba’s chip unit joins global initiative to develop RISC-V software ecosystem
South China Morning Post
T-Head, a chip unit of Alibaba Group, has joined 13 global industry leaders as a founding member of the RISC-V Software Ecosystem project. The vendor-supported initiative to develop an open standard computing platform will accelerate commercialisation for RISC-V by offering "commercial-ready software" for application processors using the architecture for consumer electronics, automotive, data centres and mobile phones. RISC-V still currently lags behind rival chip architecture competitors proprietary Arm and x86, but the initiative could provide an alternative. Alibaba is doubling down on efforts in RISC-V in an effort to achieve greater self-sufficiency in semiconductors amid US sanctions.
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