Chinese firms at the mercy of China-US trade war
Chinese firms at the mercy of China-US trade war
Chinese companies and Beijing have their hands full trying to overcome adversity and sustain economic growth amid the China-US trade war.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Japan Times
23 minutes ago
- Japan Times
Catastrophe on the roof of the world
The Tibetan Plateau is home to vast glacial reserves, which amount to the largest store of fresh water outside the Arctic and the Antarctic. It is also the source of 10 major Asian river systems — including the Yellow and Yangtze rivers of mainland China, the Mekong, Salween and Irrawaddy rivers of Southeast Asia and the Indus and Brahmaputra of South Asia — which supply water to nearly 20% of the global population. And, now, it is the site of a slow-burning environmental calamity that is threatening the water security, ecological balance and geopolitical stability of the entire Asian continent. For over two decades, China has been engaged in an aggressive and opaque dam-building spree, centered on — though not limited to — the Tibetan Plateau. Yet China's government has refused to negotiate a water-sharing treaty with any of the downriver countries, which must suffer the consequences of their upstream neighbor's whims. Already, Chinese-built megadams near the Plateau's border have brought water levels in the Mekong River to unprecedentedly low levels, with devastating effects on fisheries and livelihoods across Cambodia, Laos, Thailand and Vietnam. As the Mekong Delta in southern Vietnam retreats — driven partly by Chinese dams — rice farmers are being forced to abandon their traditional livelihoods, instead farming shrimp or growing reeds. Yet China's dam ambitions continue to grow. The Three Gorges Dam, which runs along the Yangtze River, is the largest in the world. But it will be dwarfed by the dam China is now building on the Yarlung Zangbo river, also known as the Brahmaputra, in a seismically active region of the Tibetan Plateau. If completed, this project would drastically alter water flows into India and Bangladesh, threaten the region's food security and ecological balance and increase China's geopolitical leverage over downstream countries. The specter of water weaponization looms large. In fact, water is fast becoming the new oil — a strategic resource with the potential to trigger conflicts. Already, water disputes within and between countries are intensifying. But China's assault on the Tibetan Plateau extends beyond water. Its avaricious mining of Tibet's mineral-rich lands — which boast critical resources like lithium, gold and copper — is contributing to deforestation and producing toxic-waste discharge, while providing cover for China's militarization of the Plateau. It is impossible to know the full extent of China's destruction. The area is off limits to international observers and efforts by members of indigenous Tibetan communities — whose cultural reverence for nature has underpinned a long history of sound environmental stewardship — to sound the alarm are quickly quelled, often through imprisonment or exile. But there is no doubt that the Tibetan Plateau's ecosystem is becoming increasingly fragile, especially given its heightened vulnerability to climate change. The Plateau is warming at twice the global average rate and its ice is melting faster than at the poles — trends that are reducing its water-storage capacity and reshaping river flows. The implications are far-reaching. The Tibetan Plateau, which towers over the rest of Asia (rising into the troposphere), profoundly influences Asian climatic, weather and monsoonal patterns and even affects atmospheric general circulation — the system of winds that transports warm air from the equator toward higher latitudes — in the Northern Hemisphere. Its degradation will exacerbate droughts and floods, accelerate biodiversity loss, contribute to agricultural collapse and fuel mass migration across Asia and beyond. Despite these risks, the international community, from global climate forums to multilateral institutions like the United Nations and World Bank, has been deafeningly silent about Tibet. The reason is not ignorance, but fear: China has used its clout to suppress meaningful criticism of its actions on the 'roof of the world.' Given the stakes, the international community cannot afford to let itself be cowed by China. Countries must relentlessly press for transparency about China's activities on the Tibetan Plateau. Specifically, China must share real-time hydrological data and submit its projects for international environmental assessment. Independent environmental researchers and monitors must be granted unfettered access to the Plateau to gather vital data and conduct unbiased analyses. China must also be held accountable for its violations of the rights of indigenous communities — including the nearly 1 million Tibetans who have been forcibly relocated from their ancestral lands since 2000. Western governments and multilateral institutions have leverage here. By tying environmental transparency, respect for indigenous rights and equitable management of shared river systems to trade agreements and climate cooperation, they can compel China to change its behavior. Direct support for indigenous Tibetan voices and civil-society networks would also help boost transparency. Ignoring the unfolding crisis on the Tibetan Plateau might seem expedient; after all, China has plenty of economic and geopolitical clout — and it is not afraid to use it. But the costs of inaction would be staggering. Tibet is Asia's ecological lifeline. China must not be allowed to use it in ways that threaten to upend the lives of people throughout the continent and beyond. Brahma Chellaney, professor emeritus of strategic studies at the New Delhi-based Center for Policy Research and fellow at the Robert Bosch Academy in Berlin, is the author of "Water, Peace, and War: Confronting the Global Water Crisis" (Rowman & Littlefield, 2013). © Project Syndicate, 2025
Japan Times
24 minutes ago
- Japan Times
Taiwan moves thwart foreign defense firms: American Chamber of Commerce
Changes that Taiwan made to rules for defense cooperation with foreign companies might discourage them from working with the archipelago, an American business group says — a view that comes just as China's military shows off some key advances. A policy that was tweaked last year "presents several challenges that risk undermining Taiwan's attractiveness as a defense market,' the American Chamber of Commerce in Taiwan said in a paper on Tuesday. It added this could slow procurement and undercut the incentive for foreign firms to invest in Taiwan. AmCham said "the rules are unclear about what kind of investments or technology-sharing companies are expected to provide in return for defense contracts,' calling on Taipei to safeguard commercial viability to encourage long-term spending on its defense industrial base. The paper provides a glimpse of some of the difficulties Taipei faces as it tries to field a military that can deter China's much more powerful forces. Taiwan is keen to work with the U.S. on weapons production, hoping to ensure a more stable flow of advanced arms to the archipelago. Last year, Taiwan changed its Industrial Cooperation Policy, dropping a requirement that foreign defense firms invest 40% of a contract value into the domestic economy in favor of a discretionary, case-by-case model. Both versions of the policy are intended to ensure that overseas companies invest in areas the Taiwan government deems important while also providing for some tech transfers. Officials in Taipei have watched as the U.S. focused on arming Ukraine in its fight against Russia in recent years. That may change somewhat under U.S. President Donald Trump, who reportedly plans to ramp up weapons sales to Taiwan to a level exceeding the pace set during his first term. Beijing has escalated military pressure on Taiwan since President Lai Ching-te came to office last year, holding an unprecedented number of military exercises around the democracy of 23 million. Beijing says Taiwan is its territory and has threatened to use force to take control of the self-governing archipelago. Some experts have said those drills show China is capable of blockading Taiwan, shutting it off from key shipments of energy for an extended period. China's military appears to be getting more formidable in other ways. Over the weekend, one of its carriers operated deeper into the Pacific Ocean than ever before. Also, last month Pakistan said the use of its Chinese J-10C fighters helped shoot down Indian fighters during a confrontation — challenging the notion that China-made weapons are inferior to Western arms. India has downplayed Pakistan's claims about the effectiveness of weaponry deployed from China and other countries, saying that its military was able to conduct precision airstrikes deep in Pakistani territory. AmCham also said in its report that Lai's pledge to raise defense spending to more than 3% of gross domestic product was "pragmatic' given cross-strait tensions. While campaigning for president the second time, Trump suggested the archipelago should devote 10% of GDP to its armed forces — comments that align with his push for NATO members in Europe to bear more of the costs of collective defense. The chamber also called for clarifying regulations covering Chinese components used in the defense industry. It suggested classifying parts depending on where they were made and whether they contained Chinese subcomponents or raw materials. The recommendations come as Taiwan continues to seek a trade deal with the U.S., which has threatened a 32% tariff on its goods.
Japan Times
24 minutes ago
- Japan Times
How ‘vintage' rice is shaking up Japanese politics
To solve the problem of soaring rice prices, Japan's turning to a classic retailer's playbook: rebranding the old as "vintage.' That's what convenience store chain Lawson is dubbing onigiri rice balls made from the grain harvested in 2021 and released from Japan's strategic reserves in an effort to bring down prices. Like eggs in the U.S., the cost of the country's staple, which has doubled over the past 12 months, has been dominating the headlines. And there's far more at stake than the size of the grocery bill: Rice could determine the fate of the government itself. The panic has already caused one political casualty and now hangs over the administration of Prime Minister Shigeru Ishiba ahead of this summer's Upper House elections, where voters are set to punish the government over dissatisfaction with inflation. But the crisis might also be the making of a future leader. Japanese have largely gritted their teeth and lived with the last few years of rising prices, surprising many (myself included). That's allowed firms to pass on increased costs in a way they've not been able to do for years. But rice is where consumers have drawn the line. The staple rose by 98% in the past year, adding almost half a percentage point to headline inflation. A 5 kilogram (11 pound) bag is more than ¥4,000 ($28); calorie-for-calorie, the grain is now more expensive than bread. Enter new Agriculture Minister Shinjiro Koizumi, who's winning hearts (and stomachs) with his approach. Earlier moves to release government stockpiles failed to cut prices. But within days of taking over, Koizumi bypassed auctions and directly sold strategic reserves to retailers. And it's working: Bags of this "vintage' rice are now on supermarket shelves for under ¥2,000. Rice is deeply connected with the Japanese state. Cultivation in its current form dates back more than 3,000 years, when it came from China or the Korean Peninsula. As the country proper was first being formed, authorities collected it as a tax on leased land; during feudal years, how much of the crop a lord could produce would dictate how far he could rise. Children are taught that there are seven gods sleeping in each grain, to encourage them to clear their bowl; sake, brewed from rice, is a sacred drink in Shinto rituals. The Rice Riots of 1918, which in a worrying sign for Ishiba erupted in response to surging prices, killed 20, led to 25,000 arrests and brought down the government. At one point, the staple made up 70% of the average daily calorie intake. In other words, rice is important. So for years, the government has been involved in the market, seeking to maintain self-sufficiency and keep prices at a level that leaves farmers in business but doesn't aggrieve consumers. Official policy created chronic rice surpluses in the 1960s, and so for decades the government paid farmers to make less. This system, known as gentan, was officially discontinued in 2018, but remains informally today, with the powerful Japan Agricultural Cooperatives, or JA, overseeing voluntary cuts. And consumption has been in free-fall for decades, as diets changed to accommodate more international foods. The average Japanese eats less than half the 118 kg a year they ate in 1962. But one reason for this year's shock appears to have been demand exceeding forecasts; with a declining population of farmers incentivized to produce less, it doesn't take much to create an imbalance. The current situation stems from contradictory policies. The government wants cheap rice, but only made in Japan. This is where Koizumi can shine. It is to his credit that he was willing to take on such a high-risk job. If he fails to reduce prices, he'll look incompetent; bring them down too much and he'll upset the powerful farming bloc. Perhaps he is looking to his father's playbook. Junichiro Koizumi, the fondly remembered prime minister of the early 2000s, made his name by putting country above party and tackling a vast vested interest, the mail and banking giant Japan Post. Privatizing it became his goal, a target on which to paint public dissatisfaction with the old ways. It became Koizumi Sr.'s greatest victory. Now, his son can do the same with the farming system, long known to be inefficient but now in need of urgent reform. With some 40% of paddy fields lying fallow, Japan could easily grow more by turning the excess into an export at a time of great premiums for Japanese food. Consolidation of its small farms, something JA will oppose, will encourage efficiency. Koizumi Jr. can imitate his father's legacy by tackling this holdover, taking on JA and showing that he's a man of action, too. The jury is out on whether the country will need a new prime minister after this summer's elections, but there will be a vacancy before too long. Koizumi did well in last year's leadership election, but his greatest weakness was his lack of accomplishments. Now, he has a problem that, like a vintage onigiri, he can really sink his teeth into. Gearoid Reidy is a Bloomberg Opinion columnist covering Japan and the Koreas.
