It is obvious to the most casual observer that China’s actions in the South China Sea are fueling tensions in the region. Japan has been adding to its fleet, and I don’t doubt that we will see bigger warships and larger aircraft in the next few years.
Why is this in a business ethics web site?
That’s easy. American institutions like corporations and investment banks willingness to provide money and investment to a crass totalitarian government carries risks. China’s bellicose foreign policy demonstrates just how big that risk is. In the event of a showdown with the United States and its allies, what’s going to happen to hundreds of billions of dollars of investment?
We were told and continue to be told what a great place for investment, China is.
Yeah, just keep repeating that. But watch the news, and count how many carriers the Chinese now have (three).
Japan should reverse course on defense policy, panel says | Al Jazeera America
A government panel will urge Japan to allow its military to help allies that come under attack, a major reversal of the country’s ban on collective defense under its pacifist constitution. Prime Minister Shinzo Abe wants Japan to play a greater role in international peacekeeping and step up its defense posture, citing potential military threats from China and North Korea.
From around the web.
From the web site, Consortium of Defense Analysts.
Discreetly, the Japanese aren’t boasting much about the 19,500-ton Izumo, which should be ready for action in two years, but Japan’s success in producing such a vessel may diminish the Chinese challenge to Japanese control over the disputed Senkaku islands, Diaoyu to the Chinese. No one doubts that Japanese shipyards, after decades producing some of the biggest, most sophisticated commercial vessels, could turn out still more in the Izumo class – and go up in class to full-fledged aircraft carriers.