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.
While giving evidence to an inquiry into battery supply for EVs, Stellantis, the parent company of auto manufacturers such as Vauxhall, Peugeot, and Citroen, warned that thousands of jobs and its UK investments are at risk without changes to the Brexit deal. The company said, without alterations, they could not ensure the production of electric vehicles in the UK due to obligations under the Trade and Co-operation Agreement. The deal requires 45% of an electric car’s value to originate in the EU or the UK to qualify for trade without tariffs, with higher requirements for batteries causing them to potentially miss the required specifications.
Car manufacturer Stellantis has warned that it will not manufacture electric vehicles in the UK without changes to the Brexit deal. The parent firm of Citroen, Fiat, Peugeot and Vauxhall, which employs over 5,000 workers in the UK, committed to EV manufacturing at its Luton and Ellesmere Port plants two years ago. It has now told a Commons inquiry into EV battery supply that its UK investments are in the balance because of the trade deal agreed by the UK and the EU. Stellantis called for the UK and EU to keep existing rules until 2027 without this being subjected to tariffs.
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.
The proposed acquisition of Asiana by Korean Air may restrict competition in air transport services between Europe and South Korea, according to the European Commission. The commission confirmed it had sent a statement of objections complaining that the deal may reduce competition in passenger transport services on four routes between South Korea and France, Germany, Italy and Spain, and in cargo transport services between all of Europe and South Korea. Korean Air said it would continue to talk to the commission.
Will North Korea’s Foreign Minister Visit Mongolia This Year?
Diplomat
23-05-17 13:33
Mongolia is seeking to strengthen its relationship with North Korea, with the two countries set to mark their diplomatic relations’ 75th anniversary in 2023. Despite the pandemic disrupting people’s exchanges and economic and trade relations, Mongolia and North Korea have maintained their friendly relationship, periodically exchanging greetings and having their officials mentioned in Korean Central News Agency articles. Mongolia has had a long-standing relationship with North Korea, being the second country to recognize Pyongyang in 1948 and offering to host a summit between then-US President Donald Trump and North Korean leader Kim Jong Un in 2018-2019 that ultimately failed to transpire. Mongolia is notable as the only democracy in the region that has maintained close ties with North Korea, and it could help North Korea as a source of communication channels. Mongolia also plans to organise a meeting of around 40 female foreign ministers in Ulaanbaatar between June 29 and 30, with North Korean Foreign Minister Choe Son Hui invited to attend.
Hong Kong and mainland China saw negative growth in their ultra-high-net-worth individuals (UHNWIs) figures last year, while Singapore gained, according to a report by Knight Frank. Mainland China saw the greater decrease, dropping by 5.9%. This year, China saw a 49.8% surge, while Hong Kong should rebound to 7,280 by 2027, the report said. Referring to the 100 global prime residential markets, Liam Bailey, global head of research at the property consultancy, said: “Luxury investment assets grew 16% which helped to steady the decline."
Speakers at the Sohn Hong Kong Investment Leaders Conference have praised Chinese vocational schools and hydroelectric power producer China Yangtze Power Co. The positive press for China marks a contrast to the past year when Chinese stock picks were absent from the event, owing to regulatory crackdowns, geopolitical tensions, and rising interest rates. Aside from China, the conference also saw the emergence of corporate governance investment ideas for stocks of companies based in South Korea, Japan, and India.
South Korean, Canadian Leaders Vow Cooperation on Clean Energy, North Korea Threat
Diplomat
23-05-17 13:00
South Korea and Canada have agreed to reinforce their trade ties with critical minerals amid global supply-chain weaknesses that have been exacerbated by geopolitical and climate concerns. Canadian Prime Minister Justin Trudeau completed a two-day visit to the country, meeting with South Korean President Yoon Suk-yeol before travelling to Japan for the G7 meeting last weekend. The leaders pledged stronger economic and security collaboration, focusing on the rising nuclear weapons and ballistic missile programmes of North Korea. South Korea needs to grow its supply of materials such as nickel, lithium and cobalt, used for producing vehicle batteries and renewable-energy technologies. The country is also expected to increase cooperation with Canada on semiconductors, batteries, artificial intelligence and cleaner-energy technologies, while at the same time strengthening measures to monitor UN Security Council sanctions against North Korea.
Stellantis has become the first carmaker to urge the UK to renegotiate the terms of its Brexit deal. The parent company of car brands including Alpha Romeo, Peugeot, Vauxhall and Chrysler has called for a delay to beefed-up European Union (EU) “rules of origin”, saying that these could lead to it having to close its Ellesmere Port factory. The factory could be forced into closure as electric vans produced there, which comprise over 70% imported components, face a 10% tariff when they are exported to the EU from next year. Stellantis warned rising costs of raw materials, supply chains and the conflict in Ukraine had prevented it from meeting its planned content standards when announcing the expansion of the Cheshire plant in 2021. Car manufacturers across the UK and continental Europe have echoed its concerns over the rules of origin, which they claim will raise costs for EV drivers and reduce uptake.
World leaders are gathering in Hiroshima for the Group of Seven nations summit, which Japan is hosting with the goal of advancing Prime Minister Fumio Kishida’s dream of “a world without nuclear weapons”. The G7 comes at a time when the world’s largest nuclear powers are increasingly clashing over issues such as the war in Ukraine, the threat of proliferation, and climate change. The memorial forms a stark reminder of the growing threat under President Biden’s watch, and is putting pressure on him to stand up to nuclear-armed adversaries and advance the cause of disarmament.
A debate still rages among historians about whether dropping the bombs was a necessary act by the United States to end the war and prevent more deaths, or an unjustified atrocity calling for apology and regret. In Hiroshima, however, many are simply focused on the need to prevent a recurrence. Joe Biden’s visit to Hiroshima will include meeting survivors of the atomic bomb and visiting the memorial that commemorates an estimated 140,000 people who died during the bombing and its aftermath.
Hosting the G-7 takes on increased significance for Japan as it has been buffeted by many of the proliferating nuclear developments and is the only country ever targeted by a nuclear weapon. Japanese officials hope the moment will resonate especially with Biden, who, to a degree unusual for politicians, is given to public expressions of empathy in the face of loss. Hidehiko Yuzaki, the governor of Hiroshima, said in an interview that visiting the city is important because nuclear deterrence is very theoretical and is often seen as something that just exists in people’s heads.
Stellantis’ warning that Britain’s trade rules with the EU could threaten electric van plant viability at Ellesmere Port has reopened the issue of rules of origin for the car industry. Car factories are concerned that anything that affects their exports to Europe will make them less competitive and more at risk. Rules of origin ensure that goods have sufficient locally-made content to qualify for tariff-free access to markets. Under the EU's post-Brexit Trade and Cooperation Agreement, vehicles sold from one to the other must have 55% of their “content” from within the EU or UK. By January 2024, 60% of an electric vehicle battery pack must originate from Europe or UK to qualify as “local”.
UK Prime Minister, Rishi Sunak, has said that he is considering following the US's lead by imposing new restrictions on domestic companies investing in critical industries in China. US President, Joe Biden, has been drawing up a plan to limit investments in key parts of the Chinese economy, which is yet to be announced. Sunak also mentioned that placing further export controls on China would also be discussed at the G7 gathering. Meanwhile, Sunak has backed away from his promise to ban Confucius Institutes from operating in Britain in an attempt to improve UK-China relations.
The White House has defended Joe Biden's decision to cut short his tour of Asia to resolve the debt-ceiling standoff with Republicans. The US president's meetings with Pacific island leaders and attendance at the Quadrilateral Security Dialogue summit in Sydney were both put on hold while he returned to Washington, leading to accusations that it benefitted China. White House adviser Jake Sullivan, while en route to Japan, said that the postponed work could be "done at a later date," but the negotiations over the debt limit and budget could not be put off.
The Group of Seven meeting, set to begin on Friday, will see Japanese Prime Minister Fumio Kishida appeal to the seven wealthiest democracies to scrap nuclear arms and work towards “a world without nuclear arms”. The strength of his case will be challenged by the security situation in the region, with Japan’s neighbours, North Korea, China and Russia being the possessors of about half of the world's nuclear warheads. The US has recently brought more assets close to Japan and South Korea in a bid to increase deterrence to counter the rising nuclear threats around the world; G-7 statements have highlighted other concerns over non-proliferation, including the rising atomic ambitions of Iran. Critics argue that the US is pulling the group towards an increase in nuclear weapons capability when Kishida is appealing for disarmament. Leaders are therefore expected to try for a balance between disarmament and countering nuclear threats.
World No 1 Novak Djokovic is out of the Italian Open following his defeat against Denmark’s Holger Rune. His performance was uncharacteristically poor, and his below-par physical condition suggested health issues were affecting him. Djokovic is going into this year’s French Open without having reached a clay-court semi-final, which is untypical for him. With Rafael Nadal absent from the tour since January, a couple of emerging favourites – Rune and Carlos Alcaraz – are being talked about by bookmakers. Nadal’s withdrawal from Roland Garros is expected to be announced soon. This year’s Italian Open won’t feature a final without Djokovic or Nadal for the first time since 2004. Murray’s defeat against Wawrinka in the second round of the ATP Challenger Tour event in Bordeaux further adds to his downward slide in the tennis world. Meanwhile, Djokovic might be closing his tennis centre in Belgrade following news that Romanian billionaire Ion Tiriac’s licence has been taken back.
Japanese Prime Minister Fumio Kishida is set to meet with leaders from seven major global chip companies on 18 November, where he is expected to encourage more investment in Japan's semiconductor industry. Attendees will include Taiwan Semiconductor Manufacturing Co. Chairman Mark Liu, Intel CEO Pat Gelsinger, Micron Technologies CEO Sanjay Mehrotra, Samsung Electronics executives, IBM representatives, Applied Materials executives, and Belgian research group IMEC executives.
The UK and Japan are set to deepen their security ties and sign a new accord called the "Hiroshima Accord," covering areas such as defence, trade and investment, science and technology, and joint initiatives to tackle global issues such as climate change. As part of the deal, the UK, which is looking to deepen relationships with countries outside Europe after leaving the EU, has committed to deploying an aircraft carrier strike group to the Indo-Pacific in 2025. The two countries will also agree on a formal "Consult Clause," while trade and investment as well as science and technology programmes will be supported under the agreement.
Leaders from Australia, Brazil, Comoros, Cook Islands, India, Indonesia, South Korea, and Vietnam are to attend the Group of Seven summit (G7) in Hiroshima this year, along with the leaders of the G7 nations. Japanese President Fumio Kishida has a determination to make nuclear disarmament and non-proliferation priorities of this year’s summit, with discussions expected to centre on Putin's threats against Ukraine and China's increasing threats against Taiwan.
Leaders of the G7 countries – the US, Japan, Germany, France, the UK, Italy and Canada – face several challenges as they gather in Hiroshima. The global economic outlook is unstable, while Russia continues its actions in Ukraine and China expands its economic and strategic growth. The G7 will need to address several issues, including enlisting middle countries such as those in Africa, and addressing China without creating undue confusion. Moreover, with concerns around nuclear proliferation and use re-emerging, the monitoring architecture of nuclear arsenals needs to be maintained to avoid future use of nuclear weapons. Finally, as global temperatures continue to rise and heatwaves become deadlier, coordinated responses and the regulation of cryptocurrency will become increasingly important.
