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China must rein in overcapacity to avoid a global backlash
Yoosuk Kim is the President of the Chey Institute for Advanced Studies, a Seoul-based think tank focused on global affairs, economic security and technology-driven innovation.
Mounting concerns have emerged around China's industrial overcapacity. Yet this is not a conventional case of supply exceeding demand. It reflects a structural imbalance of global proportions -- one that threatens the industrial viability of many nations and calls for a fundamental recalibration of China's growth model.
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The Mainichi
2 hours ago
- The Mainichi
Where's the octopus? Japan 'takoyaki' shops sub in sausage, hike prices amid rising costs
TOKYO -- Rising costs in Japan have impacted even the popular delicacy, "takoyaki" fried octopus balls, with chains hiking prices and some shops in the Tokyo area even replacing octopus with sausage as food makers look to other ingredients like "kamaboko" fish paste and konjac (a firm, jellylike food made from konjac yam) as substitutes. Will we no longer be able to casually enjoy the unique texture and flavor of octopus? Prices rise even after replacing octopus "Does not contain octopus" reads a sign this reporter noticed outside one takoyaki shop called Horaiya, near the Tokyo Sakura Tram's Machiya-ekimae Station in Tokyo's Arakawa Ward. I asked the store's owner, 77-year-old Masako Hasegawa, about the reasoning. "Post-coronavirus price increases have driven up costs too much to continue using octopus," she explained. Formerly, the store sold takoyaki containing octopus at 180 yen (around $1.25) for five pieces. It started replacing octopus with sausage in November 2023, but since then, the cost of wheat flour and other ingredients has gone up, leading to a price increase of 20 yen to 200 yen. While the items are "sausage-yaki," the taste holds up well, being served hot, freshly prepared with cabbage, red pickled ginger, "agetama" fried batter and a "dashi" broth and topped with a Japanese version of Worcestershire sauce. "After switching to sausages, some customers drifted away, saying, 'I prefer octopus,' but the sausages are more popular with children and customers with bad teeth, as they are softer and easier to eat. Many patrons come in after work or school, so we want to continue to offer good food at an affordable price," said Hasegawa with a smile. Costlier wheat flour and eggs, labor, electricity ... Tokyo-based research firm Teikoku Databank Ltd. in December 2024 released a report citing how business was getting tricky for stores selling floury delicacies like okonomiyaki and yakisoba due to increases in the cost of raw materials such as flour and eggs, as well as operating costs such as labor and electricity. But above all, the rising cost of octopus had hit stores specializing in takoyaki. When the firm estimated the cost of preparing takoyaki at home, it found that in 2015 the average price per 12 pieces was about 170 yen, but in 2024 this was more than 250 yen (approx. $1.70). The data for Tokyo's 23 special wards in the Retail Price Survey by the Ministry of Internal Affairs and Communications also shows that the average price of octopus was 277 yen per 100 grams in 2014, but by mid-May of this year, it had jumped to 528 yen -- almost double, and even pricier than tuna. Takoyaki shops are challenged in part by the difficulty of passing price hikes onto customers given the snack's reputation as affordable street food. At least one major nationwide takoyaki chain raised prices by about 8% late last year. Since the COVID-19 pandemic, more people have been enjoying takoyaki parties -- known as 'tako-pa' -- at home, but on social media, users report substituting traditional octopus with ingredients such as "chikuwa" fish paste, cheese and cod roe. Posts could be seen to the effect of, "Octopus is expensive, flour is expensive, and cabbage broke my spirit," expressing frustration over the rising cost of ingredients. To cater to this rise in demand for substitutes, a kamaboko fish cake manufacturer in Odawara, Kanagawa Prefecture, suggested in April on social media that its products have "chewiness that won't lose to octopus!" Meanwhile, a producer in Gunma Prefecture, a region known for konjac, has started developing chewy products that could be used in takoyaki. Can 'takoyaki culture' be saved? Is takoyaki destined to shift from an affordable treat to a luxury food? When this question was posed to Mana Kumagai, president of the Japan Konamon Association -- an organization that promotes flour-based foods -- she gave a measured answer. "Originally, 'radio-yaki' -- the predecessor to takoyaki -- included fillings like konjac and green peas, and it has never been rare to use various ingredients during home takoyaki parties," she said. Radio-yaki and "chobo-yaki" -- which involved baking wheat flour dissolved in dashi broth and adding ingredients like beef tendon and konjac -- were developed in Osaka in the 1930s. In nearby Akashi, Hyogo Prefecture, a type of egg omelet containing octopus was popular, which later led to adding octopus to radio-yaki, creating what became known as takoyaki. According to Kumagai, octopus prices began to surge around 40 years ago, causing takoyaki shop owners' ongoing concern. Octopus used for the item in Japan is mainly imported from around Africa. While octopus was once called the "devil fish" in inland regions of Europe and the United States, it has become popular worldwide, and growing demand has driven prices up. Kumagai commented, "Some restaurants continue to try to keep their focus on octopus by replacing the 'madako' common octopus with other species, such as North Pacific giant octopus. While enjoying the different types of takoyaki, we'd like to preserve the original taste of takoyaki so that it can be passed on to the rest of the world."
Japan Today
a day ago
- Japan Today
Trump clears path for Nippon Steel investment in U.S. Steel, so long as it fits the government's terms
President Donald Trump speaks at U.S. Steel Corporation's Mon Valley Works-Irvin plant on May 30, in West Mifflin, Pa. By JOSH BOAK President Donald Trump on Friday signed an executive order paving the way for a Nippon Steel investment in U.S. Steel, so long as the Japanese company complies with a 'national security agreement' submitted by the federal government. Trump's order didn't detail the terms of the national security agreement. But the iconic American steelmaker and Nippon Steel said in a joint statement that the agreement stipulates that approximately $11 billion in new investments will be made by 2028 and includes giving the U.S. government a ' golden share " — essentially veto power to ensure the country's national security interests are protected against cutbacks in steel production. 'We thank President Trump and his Administration for their bold leadership and strong support for our historic partnership," the two companies said. "This partnership will bring a massive investment that will support our communities and families for generations to come. We look forward to putting our commitments into action to make American steelmaking and manufacturing great again.' The companies have completed a U.S. Department of Justice review and received all necessary regulatory approvals, the statement said. 'The partnership is expected to be finalized promptly,' the statement said. U.S. Steel rose $2.66, or 5%, to $54.85 in afterhours trading Friday. Nippon Steel's original bid to buy the Pittsburgh-based U.S. Steel in late 2023 had been valued at $55 per share. The companies offered few details on how the golden share would work, what other provisions are in the national security agreement and how specifically the $11 billion would be spent. White House spokesman Kush Desai said the order 'ensures U.S. Steel will remain in the great Commonwealth of Pennsylvania, and be safeguarded as a critical element of America's national and economic security.' James Brower, a Morrison Foerster lawyer who represents clients in national security-related matters, said such agreements with the government typically are not disclosed to the public, particularly by the government. They can become public, but it's almost always disclosed by a party in the transaction, such as a company — like U.S. Steel — that is publicly held, Brower said. The mechanics of how a golden share would work will depend on the national security agreement, but in such agreements it isn't unusual to give the government approval rights over specific activities, Brower said. U.S. Steel made no filing with the U.S. Securities and Exchange Commission on Friday. Nippon Steel originally offered nearly $15 billion to purchase U.S. Steel in an acquisition that had been delayed on national security concerns starting during Joe Biden's presidency. As it sought to win over American officials, Nippon Steel gradually increased the amount of money it was pledging to invest into U.S. Steel. American officials now value the transaction at $28 billion, including the purchase bid and a new electric arc furnace — a more modern steel mill that melts down scrap — that they say Nippon Steel will build in the U.S. after 2028. Nippon Steel had pledged to maintain U.S. Steel's headquarters in Pittsburgh, put U.S. Steel under a board with a majority of American citizens and keep plants operating. It also said it would protect the interests of U.S. Steel in trade matters and it wouldn't import steel slabs that would compete with U.S. Steel's blast furnaces in Pennsylvania and Indiana. Trump opposed the purchase while campaigning for the White House, and using his authority Biden blocked the transaction on his way out of the White House. But Trump expressed openness to working out an arrangement once he returned to the White House in January. Trump said Thursday that he would as president have 'total control' of what U.S. Steel did as part of the investment. Trump said then that the deal would preserve '51% ownership by Americans,' although Nippon Steel has never backed off its stated intention of buying and controlling U.S. Steel as a wholly owned subsidiary. 'We have a golden share, which I control,' Trump said. Trump added that he was 'a little concerned' about what presidents other than him would do with their golden share, 'but that gives you total control.' The proposed merger had been under review by the Committee on Foreign Investment in the United States, or CFIUS, during the Trump and Biden administrations. The order signed Friday by Trump said the CFIUS review provided 'credible evidence' that Nippon Steel 'might take action that threatens to impair the national security of the United States,' but such risks might be 'adequately mitigated' by approving the proposed national security agreement. The order doesn't detail the perceived national security risk and only provides a timeline for the national security agreement. The White House declined to provide details on the terms of the agreement. The order said the draft agreement was submitted to U.S. Steel and Nippon Steel on Friday. The two companies must successfully execute the agreement as decided by the Treasury Department and other federal agencies that are part CFIUS by the closing date of the transaction. Trump reserves the authority to issue further actions regarding the investment as part of the order he signed on Friday. © Copyright 2025 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed without permission.
Yomiuri Shimbun
a day ago
- Yomiuri Shimbun
Tokyo Assembly Race Kicks Off: Voters Must Carefully Ascertain Information before Casting Ballots
With the nation's capital facing many issues, such as high prices, a declining birth rate, an aging population and disaster preparedness measures, how should the future of Tokyo be shaped? This election will not only test the candidates' views, but also the judgment of every voter. Campaigning for the Tokyo Metropolitan Assembly election has officially kicked off. A record 295 people filed their candidacies for the 127 seats. Candidates will campaign for nine days until June 22, when voting and vote counting is held. Many Tokyo residents cite 'rising prices and wage increases' as points of contention in the election. In Tokyo, housing prices and rent are rising, placing a heavy burden on younger generations in particular. Many people are likely seeking an environment in which they can live without worries. According to national statistics released this month, Tokyo's total fertility rate — the average number of children born to each woman over her lifetime — stood at 0.96 last year, the lowest in the country. Increasing the number of children who will shape the future of the nation is a critical challenge. Preparing for disasters such as a major earthquake directly under the capital or heavy rainfall is also essential. It is important to carefully examine the policies presented by each candidate and determine who is most suitable. The Tokyo election is seen as a bellwether for the House of Councillors election this summer. The focus of the election will be on whether the Liberal Democratic Party, which currently holds 30 seats, can maintain its position as the largest party in the assembly. Whether the LDP, the Tokyo-based regional party Tomin First no Kai (Tokyoites first group) and Komeito — the three parties that support the Tokyo governor — will be able to maintain their joint majority will also be closely watched. The approval rating for the Cabinet of Prime Minister Shigeru Ishiba remains low, hovering just above 30%. A scandal regarding LDP factions' involvement in failing to report revenue from political fundraising parties on political funds reports has spread to the LDP assembly group in the Tokyo assembly. The results of the Tokyo Metropolitan Assembly election are likely to affect the prime minister's ability to maintain party unity. In recent elections, false and unverified information circulated on social media, creating a situation in which elections could be influenced. The practice of candidates running solely to help another candidate win, known as 'two-horsepower' campaigning, has also become an issue. In last year's Tokyo gubernatorial election, posters unrelated to the candidates, such as advertisements for adult entertainment establishments, were posted on election poster boards, leading to a revision of the Public Offices Election Law to prohibit election posters that undermine dignity. This will be the first major election since the revised law came into effect. Acts that degrade elections, which are the foundation of democracy, cannot be tolerated. All candidates should keep this matter in mind. The Japan Newspaper Publishers & Editors Association issued a statement ahead of the Tokyo assembly election, expressing concern that inaccurate information could influence the election. Four member companies of the association, including The Yomiuri Shimbun, have formed a voluntary group to start fact-checking information found online, starting with the Tokyo assembly election. Urban areas have a large number of voters who have no party preference, and the 'wind' that determines election outcome can sometimes blow. In an era of information overload, voters must ascertain information to cast their ballots. (From The Yomiuri Shimbun, June 14, 2025)
