Latest news with #US-Japan
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First Post
7 hours ago
- Politics
- First Post
3 reasons South Korea's election could reshape Asia's alliances
Liberal candidate Lee Jae-myung is poised to win South Korea's snap election, according to surveys. His victory could shift Seoul's foreign policy away from the US-Japan axis towards closer ties with China. read more Lee Jae-myung (2nd R), the presidential candidate for South Korea's Democratic Party, casts his early vote for the upcoming presidential election at a polling station in Seoul as the Presedential elections on May 29, 2025. AFP Liberal candidate Lee Jae-myung is expected to win South Korea's , according to recent surveys reflecting the mood in the East Asian nation amid ongoing voting on Tuesday (3 June). If Lee wins, the could shift Seoul's foreign policy from a pro-US-Japan axis, and could inch towards closer ties with China. Lee's victory could shape the Asian dynamics His South Korea's position on key issues such as relations with China, nuclear weapons, and North Korea, potentially altering the direction of a key US ally. Pro-US President Yoon and his impeachment Former President Yoon Suk-yeol, a conservative who was removed from office after attempting to declare martial law in December, had taken a strong pro-US line. He also received strong backing from Washington, adopted a tough stance on North Korea, and worked to improve ties with Japan. Lee, who narrowly lost to Yoon in the 2022 election, has often criticised South Korea's close alignment with the US. He has pledged to resume dialogue with North Korea and rejected Yoon's efforts at rapprochement with Japan. STORY CONTINUES BELOW THIS AD S Korea should avoid involvement in China-Taiwan conflict: Lee During the campaign, Lee made headlines by saying South Korea should avoid involvement in any potential China-Taiwan conflict, though he later clarified he is not pro-China. Later, Lee softens stance on US In a bid to attract moderate voters, Lee has recently softened his rhetoric. He now voices support for the US alliance and says he will continue trilateral cooperation with Japan and the US—an alignment Washington views as vital for countering threats from China and North Korea. This comes at a time when US President Donald Trump is drawing global attention with his tariff threats and foreign policy moves. Trump-Lee clash coming? It remains to be seen if Lee will stick to his new positions, and how they might clash with Trump, who has imposed tariffs on South Korea, demanded more payment for the 28,500 US troops there.
Japan Forward
26-05-2025
- Business
- Japan Forward
US Steel and the Return of Strategic Manufacturing
On May 21, the Committee on Foreign Investment in the United States (CFIUS) submitted its reevaluation of Nippon Steel's planned acquisition of US Steel. Following the review, President Donald Trump approved a revised agreement on May 23, framing the deal as a "planned partnership" rather than a full acquisition. Under the new terms, it appears that US Steel will retain its headquarters in Pittsburgh and remain under American control. Nippon Steel will invest $14 billion into US operations, including $4 billion for a new steel mill. The deal, expected to create at least 70,000 jobs, is being closely watched as a model for balancing foreign investment with national industrial strategy. Trump had previously expressed opposition to the deal. However, during the US-Japan summit in February, he refrained from calling it an acquisition, referring to it instead as an "investment." Nippon Steel had not abandoned its goal of fully acquiring US Steel as a wholly owned subsidiary and continues to lobby the Trump administration behind the scenes. In 2024, amid a heated election season, the deal became mired in politics. In particular, there was fierce opposition from rival Cleveland-Cliffs and the United Steelworkers (USW) union. Under pressure, CFIUS could not reach a consensus on national security concerns and ultimately left the decision to then-President Joe Biden. In January 2025, Biden issued an order blocking the deal. Responding jointly, Nippon Steel and US Steel issued a joint statement declaring they "will never give up" on doing business in the US. Together, they also filed a lawsuit seeking to overturn the executive order. US Steel reported a loss of $116 million for the first quarter of 2024, making it increasingly urgent to strengthen its management. Nippon Steel is also facing a harsh business climate. In fiscal 2023, it saw a year-on-year decline in both revenue and profit, with net income falling 36.2% to ¥350.2 billion ($2.23 billion USD). Projections for fiscal 2024 anticipate an additional 42.9% drop to ¥200 billion ($1.40 billion). Weakened demand in China and slumping US auto sales, due in part to Trump-era tariffs, are squeezing profits. President Trump speaks to reporters before boarding Air Force One — Morristown, New Jersey. May 25 (©AP/Kyodo) US Steel has stated that if the merger fails, it will move its headquarters to Arkansas and be forced to close factories and lay off workers in Pennsylvania. Meanwhile, Trump has imposed 24% reciprocal tariffs on Japan, along with 25% additional tariffs on cars, steel, aluminum, and auto parts. US-Japan negotiations on those are ongoing. The White House's broader intent is to use tariffs as economic leverage, eliminate trade deficits, attract foreign manufacturers to set up domestic production, and revive American industry. High-quality steel sheets are essential to making good cars. Strengthening the domestic steel industry, "the mother of industry," is vital to restoring the US as a global automotive manufacturing power. Nippon Steel, which possesses the world's best technology in high-grade steel, plans to strengthen production capacity within America alongside US Steel. If successful, this would create a powerful steelmaker with the world's third-largest crude steel output, helping drive forward the revitalization of US manufacturing. Producing high-quality steel domestically would also give America greater leverage in competing with China. To acquire US Steel, Nippon Steel has offered $14.1 billion — a 40% premium over the share price at the time of the agreement. The company has pledged not to change US Steel's name, lay off workers, or cut bonuses. It also committed to capital investments in the hot rolling mill in Mon Valley, Pennsylvania, and the blast furnace in Gary, Indiana. The deal, which offers exceptionally favorable terms, won 98% shareholder approval. Locally, there are high hopes that Nippon Steel will preserve jobs. Executives from US Steel's production team have already visited Japan and confirmed compatibility with Nippon Steel's operations. Nippon Steel President Tadashi Imai (left) and Vice Chairman Takahiro Mori at a press conference. May 9, Chiyoda Ward, Tokyo Trump, known as a "job nationalist," should understand that this acquisition contributes to employment, economic security, and national defense, all key pillars of his "America First" policy. What remains is largely a matter of national pride: the reluctance to see a historic American company sold to a Japanese firm. For Nippon Steel, acquiring US Steel is a strategic investment for global market expansion. The US economy is growing, energy costs are low, and environmental regulations are lax following America's withdrawal from the Paris Climate Agreement. Affected local governments in the US have also welcomed the deal. Producing within the US would reduce tariff exposure. If the acquisition succeeds, Japanese production facilities would serve as "mother mills" to support growing overseas markets. However, this could mean reduced crude steel output in Japan, impacting a wide range of domestic industries. If Japan's auto sector relocates production to the US to avoid tariffs, further hollowing out of the domestic industry is inevitable. America and China both desire Japan's advanced technologies in automobile and steel production. Yet the Japanese government seems unaware of its own strategic value. On the contrary, it is pursuing policies that push key industries overseas. Japan's industrial policy prioritizes climate change and CO2 reduction ideology over real economic needs. Regulations such as emissions trading and carbon pricing are marketed as pro-growth, but in reality, they shackle manufacturing output. Japan's energy plans, with their emphasis on renewables, cannot ensure a stable power supply. To the steel industry, this effectively says: "Do not make long-term capital investments in Japan or increase production." As Nippon Steel moves toward the US, it may be time for Japan to revisit the roots of its national industrial development and re-center its growth strategy on revitalizing domestic manufacturing. (Read the article in Japanese .) Author: Koko Kato
Time of India
26-05-2025
- Politics
- Time of India
Chinese brinkmanship challenges Japan and US in East China Sea, Liaoning aircraft carrier sends its fighters near disputed islands
Live Events (You can now subscribe to our (You can now subscribe to our Economic Times WhatsApp channel On the waters off Kuba Island in the East China Sea, less than 200 kilometers from Japan's Senkaku Islands, a growing sense of unease swept through Tokyo's defense circles over the weekend. The Liaoning, China's first aircraft carrier, along with four People's Liberation Army Navy destroyers, was spotted executing take-off and landing exercises involving fighter jets and helicopters, alarmingly close to Japan's southwestern marked the first time Beijing has deployed the Liaoning for such operations in the East China Sea, a highly sensitive and contested maritime zone. The Japanese Defense Ministry confirmed the development late Sunday, May 25, noting that the Chinese carrier group was operating in waters north of the Senkakus, a territory administered by Japan but claimed by China as the Diaoyu read: China's Jiutian SS-UAV spooks US, challenges its air superiority, but can it outfly latest air defenses? Japan's Air Self-Defense Force scrambled fighter jets in response to the drills, though no violations of airspace were reported. Nonetheless, the proximity of China's warships to Japanese territory signaled more than a routine naval exercise, it was a calculated move, one that has put both Japan and its ally, the United States, on high Senkaku Islands, nationalized by Japan in 2012, fall under the protective umbrella of Article 5 of the US-Japan security treaty . This means that any attack on the islands is considered an attack on Japan, and by extension, an attack on US interests. By edging closer to the islands, China is not only challenging Japanese sovereignty but also poking at the credibility of US commitments in the this month, those tensions escalated further when a Chinese Coast Guard helicopter violated Japanese airspace around the Senkakus. The intrusion marked only the fourth time a Chinese aircraft has entered Japanese airspace, but the first time it was a helicopter. The incident followed a civilian Japanese plane's flight through the area, drawing even more attention to Beijing's determination to normalize its presence in the disputed read: US Hellscape military doctrine aims to fight China without soldiers on the frontline Chinese government vessels have now maintained a near-constant presence in the region. As of Monday, May 26, Chinese patrol ships had entered the area for 189 consecutive days. In 2024, Beijing's vessels were logged in the waters for a record-breaking 355 days, a clear effort to establish control and reframe the narrative of the Liaoning tightens its grip on the East China Sea, eyes are also on China's third and most advanced aircraft carrier, the Fujian. State-run media revealed that the warship is undergoing intensive sea trials, including tests for its new electromagnetic catapult system, a leap in capability that could drastically increase the carrier's daily sortie to Chinese military analyst Cao Weidong, the launch system will allow China to 'seize air and maritime supremacy,' a phrase that rings ominously across defense communities in both Tokyo and September, 2024, the Liaoning also entered Japan's contiguous zone, waters extending 24 nautical miles from the coast, further pushing the boundaries of China's naval activity. Beijing later claimed its aircraft intrusions were accidental, but the pattern points toward a slow, methodical strategy to wear down regional resistance.
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Business Standard
25-05-2025
- Business
- Business Standard
Softbank's Masayoshi Son floats idea of US-Japan sovereign wealth fund
Son has discussed the plan with US Treasury Secretary Scott Bessent, although it hasn't been formally proposed, the report said. Bloomberg By Yi Wei Wong SoftBank founder Masayoshi Son has proposed setting up a US-Japan sovereign wealth fund aimed at making large investments in technology and infrastructure, the Financial Times reported, citing three unidentified people close to the situation. Son has discussed the plan with US Treasury Secretary Scott Bessent, although it hasn't been formally proposed, the report said. The joint fund would likely need about $300 billion in initial capital, with significant leverage, to be effective, one person told the FT. According to the report, the fund would be jointly owned and run by the US Treasury and Japan's finance ministry, with each holding a significant stake. The fund could also be opened to limited partner investors, potentially offering retail investors in Japan and the US a chance to participate. Bessent has been looking for revenue streams for the Treasury that don't involve raising taxes, and the fund could potentially provide a solution, a person briefed on the situation told the newspaper. A Treasury spokesperson and Softbank declined to comment to the FT.
Time of India
25-05-2025
- Business
- Time of India
Softbank's Son proposes US-Japan sovereign fund
Live Events (You can now subscribe to our (You can now subscribe to our Economic Times WhatsApp channel Tokyo: SoftBank founder Masayoshi Son has proposed setting up a US-Japan sovereign wealth fund aimed at making large investments in technology and infrastructure, the Financial Times reported, citing three unidentified people close to the has discussed the plan with US Treasury Secretary Scott Bessent , although it hasn't been formally proposed, the report said. The joint fund would likely need about $300 billion in initial capital, with significant leverage, to be effective, one person told the to the report, the fund would be jointly owned and run by the US Treasury and Japan's finance ministry, with each holding a significant stake. The fund could also be opened to limited partner investors, potentially offering retail investors in Japan and the US a chance to has been looking for revenue streams for the Treasury that don't involve raising taxes, and the fund could potentially provide a solution, a person briefed on the situation told the newspaper.A Treasury spokesperson and Softbank declined to comment to the FT.
