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The Taiwan factor in US–Japan alliance relations

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US President Joe Biden and Vice President Kamala Harris, not pictured, participate beside staff and cabinet members in a virtual meeting with Asia-Pacific nation leaders at the White House in Washington, 12 March 2021 (Photo: Reuters/Tom Brenner).

Author: Editorial Board, ANU

With the rise of China and the intensification of strategic rivalry between China and the United States, the US–Japan alliance continues to serve as a critical cornerstone undergirding peace and security in the Asia Pacific. Increased tensions between China and Taiwan have attracted international attention, including on what a cross-Strait conflict would mean for the US–Japan alliance and the defence of Japan.

Over the last half century, Japan–Taiwan relations tended to focus on economic relations and people-to-people exchanges with weak political and security relations — but this may be changing. As rhetoric emphasising Taiwan as a potential flashpoint of US–China conflict has increased, the Suga administration in Japan has increasingly shown its support for Taiwan.

At the US–Japan leaders’ summit in April, Prime Minister Yoshihide Suga and President Joe Biden underscored ‘the importance of peace and stability across the Taiwan Strait’ and encouraged ‘the peaceful resolution of cross-Strait issues’. This was the first such reference to Taiwan in a US–Japan joint leaders’ statement since 1972 when Japan and China normalised their diplomatic relations. Japan similarly referred to ‘peace and stability’ across the Taiwan Strait in the US–Japan 2+2 joint statement in March, the Japan–EU joint statement in May, and the Japan–Australia 2+2 joint statement and Carbis Bay G7 communiqué in June. The latest edition of Japan’s Defence White Paper included an increased focus on Taiwan.

The Suga government also held party-to-party talks between the ruling Liberal Democratic Party and Democratic Progressive Party in late August. The talks included a heavy focus on security issues as well as discussion of planned investment in Japan by Taiwanese semiconductor manufacturer TSMC and cooperation on semiconductor chip supply chain resilience. While such a party-to-party meeting is within the bounds of the ‘one China’ policy, the move nevertheless irked Beijing.

The Japanese and Taiwanese people have come to see each other as friends who will help out in times of need. Taiwan was the largest donor to Japan after the 3/11 earthquake–tsunami–nuclear triple disaster. Japan is now repaying the favour. A poll by the Nikkei Shimbun soon after the Biden–Suga summit in April showed that nearly three-quarters of respondents supported Japan’s engagement for the stability of the Taiwan Strait. After China suspended imports of Taiwanese pineapples, ostensibly due to a biological pest, Japan stepped in to fill the gap increasing its imports of the fruit from the island eightfold between March and June compared with the same period in 2020. Nationalist Japanese politicians competed to share their Taiwan pineapple photos on social media. Japan has also donated over 3 million AstraZeneca COVID-19 vaccines to Taiwan.

Yet as Japan navigates its increasing closeness with Taiwan it will need to finetune a delicate balance. This means maintaining the deterrence power of the US–Japan alliance, demonstrating Japan’s commitment to burden-sharing to keep the United States engaged while working within the framework of Japan’s Constitution, and avoiding antagonising China in ways that would unnecessarily make conflict more likely.

As Sheila Smith explains in this week’s lead article, which launches the latest edition of East Asia Forum Quarterly, a contingency scenario across the Taiwan Strait would constitute a credibility test for the US–Japan alliance. Because of Japan’s southernmost islands’ proximity to Taiwan and the fact that Japan ‘hosts a considerable array of US military forces’ in Okinawa — ‘making it a likely staging area for any US assistance to Taiwan’s defences’ — any conflict over Taiwan will have a major impact on Japan’s security.

‘Regardless of the intensity of such a confrontation’, Smith explains, ‘Tokyo would be faced with difficult decisions about how Japanese and US forces would cooperate in response’. Specifically, ‘Japan’s role would likely involve two distinct actions. First, Japan would be asked to provide support for US operations. Second, Japan’s Self-Defense Forces would need to consider how best to defend Japanese territory during a conflict’.

Since the international criticism that Japan faced for its so-called chequebook diplomacy during the 1990–1991 Gulf War, it has sought to avoid another Gulf War shock that could undermine credibility in the US–Japan alliance. Back then, political…

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China Telecom Gulf Officially Launches Operations in Saudi Arabia for Business Expansion

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China Telecom Gulf was launched in Riyadh, enhancing digital cooperation between China and Saudi Arabia under the “Belt and Road Initiative,” with a focus on technological innovation and infrastructure development.


China Telecom Gulf Launches in Riyadh

On November 21, 2024, China Telecom Gulf was officially inaugurated in Riyadh, symbolizing a significant advancement in China Telecom’s internationalization efforts and commitment to the "Belt and Road Initiative." The event was attended by over 100 dignitaries, including Mr. Liu Guiqing, Executive Director of China Telecom Corporation, and Mr. Fawaz from the Industrial and Commercial Bank of China Riyadh Branch, marking a milestone in fostering a shared future between China and Arab nations.

Commitment to Digital Transformation

In his speech, Mr. Liu highlighted China Telecom’s dedication to collaborating with Saudi enterprises and local governments to enhance digital infrastructure. By leveraging its expertise in technologies like 5G and artificial intelligence, the company aims to provide high-quality communication services, thereby driving socio-economic growth in the region.

Strategic Partnerships for Growth

During the launch, China Telecom Gulf signed strategic agreements with several prominent companies, including Saudi Telecom Company and Huawei. These collaborations are geared towards optimizing digital experiences for Saudi customers and contributing to the broader Sino-Saudi cooperation in technology and economic development, solidifying China Telecom’s role in the Middle Eastern telecom landscape.

Source : China Telecom Gulf Officially Launches in Saudi Arabia for Business

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India Initiates a Shift in Security Focus Regarding China Amid Economic Ambitions

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Since 2014, India’s Modi government aimed to boost manufacturing through the Make-in-India campaign. However, tensions with China led to increased scrutiny of Chinese investments post-COVID-19, limiting their influence.


Modi’s Manufacturing Push

Since Narendra Modi took office in 2014, his administration has focused on boosting the manufacturing sector’s contribution to India’s GDP. The launch of the Make-in-India campaign aimed to enhance manufacturing capabilities and attract foreign direct investment (FDI), even in sensitive sectors such as defense and railways, thereby fostering economic growth.

Shift in Economic Relations

During this period, Chinese companies like Oppo and ZTE sought to capitalize on India’s manufacturing potential. However, the 2020 COVID-19 pandemic highlighted the need for safeguard measures against potential foreign takeovers. In response, India revised its FDI policy to increase scrutiny on investments from neighboring countries, particularly targeting Chinese investments, which now require governmental approval.

Geopolitical Tensions and FDI Impact

Tensions escalated after the June 2020 Galwan clash, severely straining Indo-China relations. This ongoing border standoff has posed challenges to the evolving dynamics between the two nations. As a result of these geopolitical tensions and pandemic-era policies, Chinese capital inflow to India constituted merely 0.43% of the total FDI from April 2000 to December 2021, highlighting a significant downturn in bilateral economic ties.

Source : India begins a rebalance of security concerns over China and economic aspirations

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BRICS: China Classifies Crypto as Property and Prohibits Business Ownership

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China’s Shanghai court ruled cryptocurrencies are property, boosting optimism in the crypto industry while maintaining a ban on business transactions. This may signal a shift in future regulations.


China’s Ruling on Cryptocurrency

In a pivotal decision for the nation and its BRICS alliance, China has officially classified cryptocurrency as property while maintaining prohibitions against business transactions involving digital assets. A notable ruling from the Shanghai Songjiant People’s Court affirmed cryptocurrencies as property, sparking optimism within the crypto industry regarding future regulations.

Implications for the Crypto Industry

As cryptocurrencies gain significance globally, the Chinese ruling is viewed as a potential-positive shift amidst ongoing restrictions. While individuals can hold virtual currency, businesses remain barred from engaging in investment transactions or issuing tokens independently. This decision has generated anticipation for more accommodating regulations in the future.

Future Prospects for Cryptocurrency in China

Experts like Max Keiser believe this ruling indicates China’s growing acknowledgment of Bitcoin’s influence. As BRICS nations explore increased cryptocurrency utilization in trade, this legal shift could enhance market demand and lead to greater acceptance of cryptocurrencies as a legitimate asset class, setting the stage for potential developments in 2025.

Source : BRICS: China Rules Crypto as Property, Bars Business Holdings

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