Saturday, December 11, 2004

Japan to China: Back Off
"Who you tryin' to get crazy with ese?
Don't you know I'm loco?
--Cypress Hill


Does China know who they are messing with?

Tokyo's defence review names China and North Korea as security threats
By David Pilling in Tokyo
Published: December 11 2004 02:00 Last updated: December 11 2004 02:00

Japan yesterday named China and North Korea as causes for security concern as it instigated an overhaul of defence priorities to meet what it regards as the changing nature of global threats.

The five-year plan, the first to name specific countries as causes for concern, outlines a shift to a more flexible force able to deal swiftly with terrorism, missile attacks and rogue states.

The plan, to be executed with a budget of Y24,240bn ($230bn, €174bn, £120bn) over the next five years, cut from Y25,160bn for the current period, also aims to promote greater participation by Japanese forces in international peacekeeping operations.

This week, Junichiro Koizumi, prime minister, extended by a year the deployment of 550 ground troops in Iraq, the biggest and most controversial dispatch since the second world war. His government is pushing for a revision to the 60-year-old pacifist constitution to enable more effective participation in such missions as a way of strengthening the US-Japan alliance.

The inclusion of China as a country that needs "carefully watching" follows a gradual build-up in tension between the two countries, particularly after an incident last month in which a Chinese submarine was discovered in Japanese waters.


The words 'insane' and 'stupid' come to mind. What possible positive outcome could come from goading Japan into eventual higher defense spending (currently restricted to 1% of GDP)? If the Chinese threat becomes more obvious, there will be public support in Japan for increased militarization. Does China really want this? I was under the impression that there is institutional memory of the last time Japan got a little loco.

Not only that, Japan is going to be key to China's emergence. If China is going to be a powerhouse, they are going to need the market, the goods, and the expertise of Japan. The sea lanes have to remain open, and the markets accessible. The deal between the leadership of China and the people is this: "Political freedom will come later. For now, accept an improved standard of living." China is not going to keep up its end of the deal with its people if it breeds unrest in Nepal and India, and renews threats against Japan and Taiwan.

Also: There are 100 million unemployed workers wandering the countryside looking for work. That's a threat they should really consider. Oh, and iflationary pressure on the yuan (currently pegged to the USD) is becoming unbearable so interest rates are going up gradually. How long until the 'government approved' growth figures are revised?

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