“The Committee on Foreign Investment in the United States (CFIUS) was unable to reach a consensus on Japan’s Nippon Steel’s $15 billion acquisition of U.S. Steel. The very committee that is responsible for safeguarding the U.S. from compromising foreign investments doesn’t recommend blocking the merger”
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“CFIUS’s inability to recommend blocking the merger on national security grounds is not surprising: Japan is not an enemy of the U.S., but a close ally. The U.S. has been formally allied with Japan since the signing of the U.S.-Japan Security Treaty in 1951. In April, Biden and former Japanese Prime Minister Fumio Kishida issued a joint statement celebrating “a new era” of bilateral security cooperation and announcing “several new strategic initiatives to strengthen our defense and security cooperation [and] bolster economic security.”
A section of the joint statement details the two countries’ commitment to economic cooperation under the U.S.-Japan Competitiveness and Resilience (CoRe) Partnership, which the Biden administration announced in April 2021 to advance cooperation “on sensitive supply chains…and on the promotion and protection of critical technologies.” The statement also celebrates mutual investment, pointing to Microsoft’s $2.9 billion investment in AI and cloud infrastructure in Japan and Toyota’s $8 billion battery production investment in North Carolina—a mere 1 percent of Japan’s $800 billion in foreign direct investment in the U.S.
If mutual investment in critical industries like semiconductors and batteries doesn’t compromise national security, the burden of proof is on those opposing Japanese investment in American steel production to explain why it does. CFIUS could not meet this burden and refrained from issuing a recommendation accordingly.”
“Japan’s destroyer-turned-aircraft carrier just completed sea trials off the coast of California on Friday, the country’s navy said.
The JS Kaga was refitted with a flight deck that allowed crews “to conduct fixed-wing aircraft operations,” the US Defense Department said in a statement last month.
The Kaga is the first aircraft carrier to be operated by the Japanese navy since World War II as the country overhauls its maritime forces amid tensions in the Indo-Pacific. Central to the light carrier’s power is the short take-off and landing version of the F-35 stealth fighter.”
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“Converting the ship to accommodate fighter jets goes against post-war Japan’s pacifist beliefs, so its navy designated the Kaga as a “multi-purpose destroyer” rather than an aircraft carrier. Nonetheless, the Kaga is not expected to be deployed like a traditional carrier.
“Given its history, it’s significant that Japan has come this far, and they have the capability now that looks like an aircraft carrier … once it’s reconfigured,” Jeffrey Hornung, a political scientist specializing in Japanese security and foreign policy, told Time in 2019.
He added: “But, then again, they’re not [aircraft carriers]. They don’t have any of the infrastructure for it to be deployed as such. They don’t have the strike capability. They don’t have any sort of intention to go further than what it is right now.””
“For Washington, the question that really matters is Ishiba’s approach to the military relationship with America.
Here Ishiba has sounded more disruptive than either the Japanese or U.S. establishment would like. He approached one third rail by calling for the revision of the agreement on the deployment of U.S. forces here. He went for another in wanting to amend the constitutional provisions on Japanese pacifism. He has talked about an Asian version of NATO, which would take Japan from a security vassal of the U.S. to a peer, though still a close ally.
“He could be a problem for the U.S.,” says Gerry Curtis, the retired Columbia scholar of Japan who lives much of the year here. “He thinks the deal with the U.S. is outdated, has an occupation stink to it.” Ishiba is, as one of the preeminent Japan watchers in Washington Ken Weinstein texted me, “hardest for Americans to read of the major candidates.”
So what’s going on? A Japanese official who knows Ishiba offered the 60/40 theory over lunch the day after Ishiba’s victory. Every other similar status of forces agreement with the U.S., from Germany to South Korea to Italy, was revised in the last half century. Japan’s dates to 1960. Ishiba wants a deal to allow Japanese forces to base and train in the U.S. — in effect to become even more like a normal army than a self defense force. Abe took Japan down this road, and Kishida continued by boosting spending (Japan’s defense budget is the third-biggest in the world). But neither of Ishiba’s predecessors put the status agreement explicitly on the table the way Ishiba has. So 60 percent of Ishiba’s motivation is “to enhance deterrence and strengthen the alliance,” this official said. The other 40 percent? That’s about “restoring Japanese sovereignty,” and that’s the bit that makes Washington nervous.
Speaking after this victory, Ishiba said the time wasn’t right to raise any of these security questions. This will be a topic of discussion with the next U.S. president and shouldn’t even be mentioned before Election Day in November.
The other topic that will test bilateral relations is America’s more protectionist trade policies under both Trump and Biden administrations and the high cost to Japanese manufacturers of enforcing the U.S.-inspired restrictions on technology transfers to China. “Japan is hurting right now because of American policies,” says Koll.
The new Japanese prime minister is “a realist,” says Hiro Akita, the Japanese business daily Nikkei’s foreign affairs specialist, who knows him. Ishiba thinks that Japan has to adjust to a changing world, he says. The next prime minister is no Japanese Charles de Gaulle who’ll seek to push America back as the old French leader did there half a century ago, he adds.
But still, this at first undramatic leadership change in Tokyo does potentially bring chop to the waters of the Japanese-American relationship that have been especially placid of late.”
“the four most prominent politicians in the country (sorry, Tim Walz) agree: U.S. Steel, a private company, should not be allowed to conduct a transaction with another private company unless the federal government agrees.
This is absurd—particularly because the deal is obviously in the best interest of U.S. Steel.
“We’ll admit that the competition for the dumbest economic policy is fierce these days—with prices controls on food, a 10% across-the-board tariff, and national rent control on the table,” opined The Wall Street Journal’s editorial board this week. “But opposition to the Nippon deal deserves careful consideration for this distinct dishonor given the deal’s manifest benefits and nonexistent harm.”
Indeed, Nippon’s plan to buy U.S. Steel gives the legacy steelmaker something that Trump’s tariffs and Biden’s blather about blue-collar jobs never could: A chance to actually become more competitive in the global marketplace. Among other things, Nippon has promised to invest $2.7 billion in revamping U.S. Steel’s plants.”
China Is Beating the U.S. in the Battle for Influence in Asia Susannah Patton. 2022 6 6. Lowy Institute. https://www.lowyinstitute.org/publications/china-beating-us-battle-influence-asia Trade, investment, China influence in East and SouthEast asia is surpassing that of the USA. Persistent Chinese diplomacy. Strategic investments. China Has
“Japan’s total population marked the 15th straight year of decline”
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“Births in Japan hit a record low of 730,000 last year. The 1.58 million deaths last year were also a record high. Japan’s population was 124.9 million as of Jan. 1.”
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“The government earmarked 5.3 trillion yen ($34 billion) as part of the 2024 budget to fund incentives for young couples to have more children, such as increasing subsidies for childcare and education, and is expected to spend 3.6 trillion yen ($23 billion) in tax money annually over the next three years.
Experts say the measures are largely meant for married couples who plan to have or who already have children, and don’t address the growing number of young people reluctant to get married.
Japan’s population is projected to fall by about 30%, to 87 million by 2070, when four out of every 10 people will be 65 years of age or older.”