China, Japan Eye Maritime Talks

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This will be encouraging if it works out. Japan's Kyodo news agency reported yesterday that China and Japan are considering holding a vice ministerial-level meeting later this month to discuss ways of avoiding a repeat of the incident last September in which a Chinese fishing vessel collided with two Japan Coast Guard ships off the Senkaku Islands (known as the Diaoyu Islands in Chinese).

The incident saw tensions escalate significantly after Japan detained the captain of the Chinese vessel, with China threatening unspecified responses if Japan didn't release him (which it eventually did).

According to Kyodo:

'Along with maritime safety measures, especially around the Senkaku Islands in the East China Sea, the two sides are likely to discuss Japan's new defense policy outline, stalled bilateral talks concerning a treaty on joint gas field drilling in the East China Sea, and tensions on the Korean Peninsula, according to the sources.'

As far as the Senkaku Islands are concerned, it will be interesting to see exactly how much can really be achieved as both sides claim full ownership. As long as they both do, there's no real middle ground for compromise.

Still, talking is, as I've said before, far better than not.

Comments
6
Tom
February 8, 2011 at 20:56

“Despite China is a developing nations it is doing its best to help the economic recovery of the US and Europe by buying their bonds.!!” There must be some fallacy here!! China bought EU bonds to keep afloat its big export market for its own survival not just for EU. A 3-year-old kid could understand that! The undervalued Yuan is the main obstacle for the American economic recovery! Put aside the low-cost, low-tech, labor-intensive goods assembled in China’s sweatshops, a 40% undervalued yuan has jeopardized the competitiveness of American goods in China’s big market. Reason: this made American goods too expensive for Chinese consumers! This kind of unfair competition of China side has contributed to the big trade deficit between the 2 countries!Not to mention other business restrictions and intellectual theft pervasive in China that have caused much business disadvantage for American companies there! Besides, an undervalued Yuan has forced other developing countries to hold down their currencies in order to compete with China in exportation. This practice has also caused a lot of trouble for the competitiveness of American goods in these potential markets! Brazil, Chile, Japan and SEA countries recently have complained about China’s currency manipulation policy! One more point, if China ceases to produce these kinds of ‘essential goods’ for the US and the EU, then immediately other countries such as Vietnam, Malaysia, Indonesia, Bangladesh, India, Mexico, Chile, etc. will happily to fill in China’s current place!! Is it clear enough?!

John Chan
February 7, 2011 at 15:17

@Tom, Japan’s export to China is non-essential goods, while China’s export to US and Europe is essential goods. Trade embargo on Japan hurts Japan more than China, but trade embargo on China hurts US and Europe more than China. If trade embargo can hurt China, the US and Europe would have done it long time ago. Trade embargo on China will reduce the living standard of the US and Europe tremendously. Arms embargo is an illustration why there still is an arms embargo on China even though China can produce J-20.

Yuan is kind of isolated currency. If you have any knowledge of real economics, then you would know that the story of undervalue of Yuan is a political diversion from the real problem by the US politicians. Despite China is a developing nations it is doing its best to help the economic recovery of the US and Europe by buying their bonds.

SEA is just the same as the US, they are addicted to China’s huge market, without China’s market their economies will collapse, by then, SEA may need another shock therapy from IMF and World Bank.

Tom
February 7, 2011 at 04:03

How about US and China? If the US and EU for some reason impose some kind of ‘trade embargo’ on ‘Middle-Kingdom’, then what will happen?! Collapse, right?!
So, China should be nice to the US and EU from now on!! Please don’t boast about ‘China-is the biggest-creditor’ of the US! If China does not buy the US T-bonds then how can it keep holding its Yuan down (40% of its true value) for its global export advantage!Japan and other countries in SEA won’t need China any more if China lose the US and EU market for its exports!! So think twice before bragging too much !!

Chinawatcha
February 7, 2011 at 00:16

Japan must not inflame China. It relies on CHina for its exports. if China imposes a trade embargo on Japan, its economy will suffer. So think twice Japan. It is good that talks will be held.

John Chan
February 6, 2011 at 03:18

Ross Babbage, who served on the government’s advisory panel for the 2009 Defence white paper, proposed Australia should boost military to take on China alone, such as acquire a fleet of 12 nuclear-powered attack submarines, ballistic missiles, supersonic cruise missiles, etc. The article about Ross Babbage’s idea is at

http://www.theaustralian.com.au/national-affairs/boost-military-to-take-on-china-adviser/story-fn59niix-1226000485738.

For the world peace sake, Japan should send a delegation to Australia and teach the Aussies how to co-exist with China, Japanese delegation can use the Senkaku Islands incident as an example to teach Aussies on how not to waste money and get humiliated.

Thomas
February 4, 2011 at 04:50

Japan was just following its orders from their Western masters to cause a conflict and giving the Americans the excuse to look like a knight in shining armour here to protect the helpless people of Asia from the big bad red and unfortunately China fell for it! There will come a day when Japan will have to make a decision as to whether it is an Asian country or a Western proxy!

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