US President Joe Biden is expected to emphasise unity and Washington's dedication to the Asia-Pacific during his planned trip for the G7 Summit in Japan whilst navigating a delicate balance between countering China's economic coercion and avoiding further division among US allies. Biden also seeks to build a "little Nato" in Asia to contain Russia and China. While the G7 is expected to outline proposals on countering China's "economic coercion", it is important to not inflame nationalistic tendencies or put smaller countries in a difficult position where they become the target of coercive activities. The trick, according to experts, is to build more robust trade agreements, maritime security measures, and reinforcing supply chains rather than setting up divisions. China carried out 73 incidents of economic coercion aimed at 19 countries between 2020 and 2022, including trade sanctions, investment restrictions, tourism bans and popular boycotts.
Japan's economy grew faster than expected, with gross domestic product expanding at an annualised pace of 1.6% in Q1 2021, exceeding estimates of 0.8% growth, and supported by better-than-expected business spending. This outcome is likely to fuel speculation of a possible early election and potential central bank policy change, given the headwinds and tailwinds currently affecting the economy. While stronger wage growth and additional price relief measures are supporting consumption at home, weaker overseas demand, due to higher interest rates to cool inflation, is expected to hurt exports and discourage companies from capital investment.
US President Joe Biden's historic visit to Papua New Guinea and his planned trip to Australia have been cancelled as he flies back to Washington to deal with ongoing debt limit talks. The decision could be seen as a blow to the US' hopes of being more present in the Indo-Pacific amid its competition with China in the region. The president had planned to sign two security agreements with Papua New Guinea in an effort to counter China's reach in the area.
A Group of Seven summit is expected to face significant tensions on the issue of nuclear disarmament. Many atomic bomb survivors in Hiroshima fear that the summit may be the last time that world leaders will call for disarmament. For those in the West, Russia's invasion of Ukraine has reminded them of the important role played by nuclear deterrence. The summit is also expected to discuss ways of curbing nuclear programmes in Iran and North Korea. Barack Obama, the last US President to visit Hiroshima, chose the city as an opportunity to express his hope for a world without nuclear weapons.
Japan and Finland are expressing concern about the situation in Ukraine and are growing cooperative in military, security and defence relations. Ahead of the Group of Seven Leaders’ Summit in Hiroshima, Finland’s ambassador to Japan has called for Japan to send a clear message against Russia and use the platform of the G7 presidency and its membership of the UN Security Council to continue to support Ukraine. With G7 members split on the issue, the ambassador is unsure if further sanctions will be placed on Russia following the summit. Though the two countries share common values and geography, it is too early to determine if the deepening relationship between them will translate into increased military-to-military exchanges, naval ship visits or defence material collaboration.
Finland, which is NATO’s latest member, has defence attachés posted to Japan and Japan has a defence attaché posted to Helsinki. While Finland ranked fifth among NATO members last year, spending a total of 1.96% of its GDP on defence and has yet to reach the agreement to spend at least 2% of GDP, Japan aims to raise spending to 2% by 2027, from just over 1%. Finnish ambassador to Japan Tanja Jaaskelainen notes that Finland can relate to Japan’s efforts on the free and open Indo-Pacific, drawing on its own recognition of the need for a free and open Baltic Sea. Speaking in Stockholm, Japanese Foreign Minister Yoshimasa Hayashi said that further cooperation between Europe and Japan was necessary to ensure a free and open Indo-Pacific region.
The G7 leaders are meeting in Hiroshima for their annual summit, which will focus heavily on the threat China’s economic coercion poses to the seven countries. The use of that coercion – punitive trade measures – has raised concern throughout Asia-Pacific and Europe, with some countries including Japan, Australia and South Korea having faced trade restrictions following disputes with Beijing over issues related to Taiwan and the origins of Covid-19. The G7 is reportedly preparing a statement of concern over such practices and may suggest ways to co-operate – but members are deeply divided over how to manage their business ties with China.
Australian Prime Minister, Anthony Albanese, has confirmed the Quad Summit, involving the leaders of Australia, India, Japan and the US, will not go ahead without President Joe Biden. The leaders will instead meet at the Group of Seven meeting this weekend in Japan, following Biden's decision to withdraw from the Sydney summit to focus on domestic politics. Albanese said the Quad is an important organisation and expressed his disappointment at the lack of summit. He suggested Indian Prime Minister, Narendra Modi, should still visit Sydney next week because he would be a very welcome guest.
Quad summit in Australia canceled after Joe Biden shortens Asia trip
CNN
23-05-17 02:36
A summit of Quad leaders from the US, India, Australia and Japan has been cancelled after US President Joe Biden pulled out, according to Australian Prime Minister Anthony Albanese. Biden was set to meet Albanese, Indian Prime Minister Narendra Modi and Japanese Prime Minister Kishida Fumio in Sydney for the informal security dialogue, seen as a counter to China’s activism in the region. Cancelling late due to ongoing debt ceiling negotiations, Biden is still heading to Japan this week instead. The Quad meeting may still take place when the leaders are in Japan, with no date confirmed.
China's Premier Li Qiang has hailed the Netherlands as a "priority partner" in the face of heightened tensions with the US over its trade practices. During phone calls with Dutch Prime Minister Mark Rutte, Li said he hopes that the Netherlands can help ensure Europe will "adhere to strategic autonomy, making greater contributions to the development of China-Europe ties". China has been hit by US export restrictions in recent months, with the Netherlands landing in the US crossfire after the Dutch government never granted ASML a licence to sell its most advanced semiconductors to Chinese customers.
Biden to leave Wednesday for shortened overseas trip to Japan
CNN
23-05-17 09:07
US President Joe Biden’s trip to Asia has been cut short due to the impasse over raising the US debt ceiling, which has the potential to cause an unprecedented first-ever default if it is not resolved by November. The debt issue contrasts with Biden’s plan to strengthen American alliances, tackle China’s influence, and show his stamina for another term in office. Biden is heading to Japan, but will miss out on the pre-planned second half of his trip, which included visiting Australia and Papua New Guinea. Meanwhile, a summit of the Quad leaders scheduled to take place in Sydney has been cancelled as Biden will not be attending. There remain concerns of a global economic meltdown if the borrowing limit stalemate is not resolved. Additionally, it could go against the functional democracy kind of image that Biden has sought to present to the world in his attempt to counter the rise of authoritarian regimes.
Japan is currently the only member of the Group of Seven (G7) nations without legalized same-sex unions, and the country faced increased international pressure over LGBTQ rights ahead of this year’s G7 meeting. Japan’s lawmakers have reportedly agreed on a watered-down bill that will only promote understanding of LGBTQ rights, without offering any legal protection. Although discrimination against sexual minorities is not openly stated, some legal experts have described Japan as hostile for LGBTQ individuals. However, there is evidence of changing attitudes in the country, particularly among younger people and the powerful Japan Business Federation has endorsed legalisation.
Developed nations should increase the financial and technical support they offer poorer countries so that they can achieve similar decarbonisation aims as wealthier countries, according to a senior official from Japan’s environment ministry. Wealthy countries made commitments in 2009 to transfer $100bn annually between 2020 and 2025 to vulnerable states affected by climate change, but so far this figure has not been met. Japan is committed to funding $70bn over the period. The G7 leaders are expected to reiterate their climate goals during their upcoming summit in Hiroshima, Japan.
Leaders from Japan, South Korea and the US will discuss strengthening ties as a response to North Korea and Chinese assertiveness during a meeting today on the sidelines of the Group of Seven (G7) summit in Hiroshima. Top of their agenda will be North Korea's growing nuclear and missile threat, with tensions increasing after a string of missile tests, including five ballistic missile launches last month. The three countries have doubled down on deterrence measures, such as the linking of radars for tracking North Korean missiles, and will discuss details of the real-time intelligence-sharing plans during their meeting in Hiroshima. They will also discuss economic security, strengthening supply-chains and "friendshoring" while looking to reduce dependence on China for critical materials. Earlier this month, officials from Tokyo and Seoul held their first consultation on economic security.
UK Culture Secretary, Oliver Dowden, stood in for Prime Minister Boris Johnson at the House of Commons on 17 May, as Johnson headed off to Japan to hold bilateral talks and attend the G7 summit. Dowden’s appearance was notable not only for its timing, but for his upcoming decisions on various issues, including the future of public service broadcaster Channel 4, which the UK government plans to privatise. Dowden and Johnson have outlined plans to enable the station to generate revenue through a public-private ownership model, including through foreign investment, as the Conservative government seeks out greater commercialisation and globalisation.
The leaders of the G7 countries, convening in Japan, will have to overcome divisions between themselves this week to project unity against China and Russia. G7 countries are grappling to warn against China’s threat to global supply chains and economic security without entirely alienating an important trading partner. It appears that French President Emmanuel Macron’s visit to Beijing in April, where he called for the EU to reduce its dependence on the US, caused a rift in G7 approaches to China, with the US pushing for stronger investment controls while Germany is cautious, given its heavy reliance on trade with Beijing.
Biden off to Japan for Group of Seven summit, says there’s ‘work to do’ on global stage
The Toronto Star
23-05-17 17:05
US President Joe Biden has warned that there is “work to do” on the global stage, amid high-stakes negotiations in Washington over a federal default and geopolitical concerns over Russia’s invasion of Ukraine and China’s assertiveness in the Pacific. Although Biden pledged to remain in contact with negotiators in the capital while travelling overseas, his trip has already been cut short. Speaking before leaving the White House, Biden stated that he had made “clear America is not a deadbeat nation”, amid concerns that a federal default would not just spark a deep recession but could also weaken its standing on the international stage.
President Joe Biden has gone to Japan for a summit with allied powers focusing on issues such as Russia's invasion of Ukraine and China’s actions in the Pacific. As he departed Washington on Wednesday, talks were ongoing to head off a federal default. Biden is pledging to remain in contact with negotiators in Washington while conducting international diplomacy. Biden had also planned to visit Papua New Guinea and Australia amid the showdown over raising the federal debt limit, but has scrapped these plans. The president is expected to attend the annual G7 summit in Hiroshima to discuss global economic issues, climate change and development.
US President Joe Biden has cut his diplomatic visit to Asia short to participate in final negotiations over America's debt ceiling. His comments came ahead of meetings between Steve Ricchetti, a senior adviser to the president, and Shalanda Young, Director of the Office of Management and Budget with negotiators representing congressional Republicans. The United States is projected to run out of money to pay its bills by June 1 if Congress does not raise or suspend the debt limit, potentially causing a recession. The government reached the $31.4tn debt limit on Jan. 19.
UK Prime Minister Rishi Sunak said he is considering following President Biden's lead and restricting domestic companies from investing in critical industries in China. Sunak said he was "engaged in a dialogue" with the US and that UK authorities are carrying out "policy thinking on that particular area". Biden has indicated he is considering issuing an executive order to create a screening mechanism for outbound US technology investment, making it harder for China to obtain cutting-edge technology. Sunak said that a joint action over tougher controls on western investments in China was a "work in progress and would not be agreed at the G7 summit".
President Joe Biden’s visit to Asia to reassure allies of the US focus on China’s aggressiveness in the region has backfired. The trip, which was originally intended to be a tour of three nations to highlight the US commitment to the Asia region, has been hugely diminished as Biden has cancelled stops in Papua New Guinea and Australia to focus on debt-limit talks with Republicans. Furthermore, there is speculation that if the US defaults on its debt, in conjunction with Biden’s decision to leave Asia early, this would undermine Biden’s message of strength and provide a potentially favourable contrast with China’s President Xi Jinping. Despite this, Biden still plans to attend a Group of 7 meeting in Japan where allies will confront what they call China’s economic pressure on less powerful countries. One foreign diplomat has claimed that skipping the G-7 would undermine a sense of unity towards China.
