Terrie's Take 697 -- Containing China with Arms Exports

Mon Feb 11 11:58:54 JST 2013

* * * * * * * * * T E R R I E 'S T A K E * * * * * * *
A weekly roundup of news & information from Terrie Lloyd.
(http://www.terrie.com)

General Edition Sunday, Feb 10, 2013, Issue No. 697

+++ INDEX

- What's New -- Containing China with Arms Exports
- News -- Recruit's Hiromasa Ezoe dies
- Upcoming Events
- Corrections/Feedback
- Travel Picks -- Kagawa castle town, Yokohama train museum
- News Credits

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+++ WHAT'S NEW

In the last week, there have been two major press announcements by the
government that make us think that Japan is about to take part in an arms
race in South East Asia, as a likely containment policy to China and its
increasingly belligerent posturing. On February 4th, the government
announced that it would reverse a long-standing arms export policy, first
put in place in 1967, and allow F-35 parts made in Japan to be exported to
third countries. Then on February 11th, the government said that it would
use overseas development funds to allow the Philippines to buy ten 40-meter
patrol boats for JPY10bn.

We imagine that it's only a matter of time before there will be similar
announcements of initiatives with Vietnam and Indonesia. Mitsubishi ATD-X
Shinshin fifth-generation jet fighters perhaps? Although they'll have to
wait a few years for delivery...

The Senkaku Islands spat has woken up a lot of powerful people in both
government and industry about Japan's vulnerability in having China as its
biggest trading partner. Given China's predilection for confrontation and
even armed conflict with its neighbors, Japan will be caught with a
difficult decision should China decide to invade the Senkakus. That
decision will be whether to give up a major portion of about JPY13trn of
exports to China, or to give up the Senkakus, which currently allow Japan
to control vast oil and gas fields with as much as 100bn barrels of oil and
the fourth largest gas reserves in the world.
http://www.eia.gov/countries/regions-topics.cfm?fips=ECS.

[Continued below...]

------------- Job Vacancy, American Embassy -------------

Position: Commercial Assistant, Foreign Commercial Service, Japan
Experience: Either fully experienced or trainee
Timeframe: Urgent hire, applications close Feb 19th, 2013.
Details:
1. If experienced: professional service manager, analyst, and adviser to
U.S. client firms. Provide advice and assistance in all aspects of
facilitating the export of U.S. goods and services to Japan, and of
attracting Japanese investment to the United States.  Assist U.S. firms,
conduct market research. Plan/organize trade-related programs and events
for business and government.
2. If trainee: assist U.S. client firms in facilitating the export of U.S.
goods and services to Japan and attracting Japanese investment to the
United States.  Market research, market trends analysis. Plan and organize
programs and events to promote U.S. commercial interests.

For more details, see:
http://japan2.usembassy.gov/e/info/tinfo-jobs.html(click Commercial
Assistant opening), then submit your application to Human
Resources Office, U.S. Embassy Tokyo. By post: 1-10-5, Akasaka, Minato-ku,
Tokyo 107-8420 and by fax: 03-3224-5818.
-----------------------------------------------------------

[...Article continues]

Already we can see Japanese industry starting to reduce its exposure to
China. Yes, the retailers are still rushing in, but the hard-core product
makers are increasingly announcing new factories (autos, for example) in
Thailand and elsewhere. And now that the yen is falling, we expect more
production will return at least temporarily to Japan as well. Although the
China domestic market itself is important for Japanese companies looking
for new revenues, since many of the Japan->China exports are for materials,
tools, and parts, which get re-manufactured and re-exported, one wonders if
a confrontation would actually cause as much economic damage as feared?
Obviously a war right now would be harmful, but with every year that goes
by, Japan is diversifying itself to markets that are much less dangerous.

Indeed, proof of this can already be found in the recent realignment of
Japan's exports. In 2012, Japanese firms sold US$129.8bn to ASEAN
countries, up 5.8% from 2011, and just 7% less than all the exports to
China, which fell 10.4% in 2011 to US$144.7bn. This is an appropriate move
not only strategically but also because ASEAN is growing much faster than
either China or Japan. ASEAN countries apparently now account for 10% of
the world's GDP, as much as China, and the Asian Development Bank expects
that by 2050, the region will account for 52% of global GDP.

While exporting clothes, cars, and home electronics has been the main focus
of Japan's exports to SE Asia over recent years, now that China and South
Korea have the ability to make more and better products, Japan has no
option but to move up the food chain. The USA, France, and UK have provided
ample proof that this means among other things, weapons exports. Japan
already has the relationships in SE Asia, it has the technologies, and the
funding. Further, the region is ripe for such exports, because according to
an Economist 2012 article, there is a mini arms race already underway
there.

The article says that SE Asian countries together spent US$24.5bn on
defense in 2011, up 13.5% from 2010. This is still modest compared to
China's US$143bn and Japan's US$59.3bn in 2012, but with soaring GDP growth
and resulting tax income, we see much greater spending by SE Asian nations
in coming years. This is only going to be reinforced by China's saber
rattling over the Spratlys (also supposedly over oil and gas reserves) in
the South China Sea, which directly affects Vietnam and the Philippines.

These are all factors that will prove too difficult for Tokyo's
right-wingers to pass by. We're not saying this is a desirable turn of
events, but given the increasing chance of confrontation between Japan and
China, it's easy to see how the Japanese government will plow a pile of
cash into this new regional strategy. Therefore, we think it's probably
time to invest in Mitsubishi and other military hardware stocks...

...The information janitors/

***------------------------****-------------------------***

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-----------------------------------------------------------

+++ NEWS

- Recruit's Hiromasa Ezoe dies
- Yes, consumers want pharmaceutical online
- Japanese families moving to Malaysia
- Japanese otaku Riddler finally caught

=> Recruit's Hiromasa Ezoe dies

The battle-scarred founder of Recruit and later of local property
management firm Space Design, Hiromasa Ezoe, died on Friday of pneumonia in
Tokyo. He was 76. Ezoe became embroiled in a bribery scandal in the 1980's
and was eventual forced out of the media giant he'd built, Recruit.
Ezoe-san fought the bribery charges all the way, but finally lost after the
courts decided that giving shares in his unlisted company did constitute
bribery. Among the recipients was Takao Fujinami, who was the chief cabinet
secretary in the Nakasone government. ***Ed: One wonders what will happen
to Ezoe's Space Design office and apartment management company? A great
little firm.** (Source: TT commentary from e.nikkei.com, Feb 9, 2013)

http://e.nikkei.com/e/ac/tnks/Nni20130209D09JF546.htm

=> Yes, consumers want pharmaceuticals online

In a resounding confirmation of the folly of banning the sale of
Over-The-Counter (OTC) drugs online, in the four weeks since the Supreme
Court ruled that a Health Ministry ban on the sale of OTC drugs was unfair,
there are apparently more than 120 companies already selling OTC
pharmaceuticals online. One of the Supreme Court plaintiffs, Kenko.com, has
said that its OTC product sales have jumped to JPY5m a day from nothing
previously. ***Ed: Apparently the Health Ministry is now scrambling to
introduce new regulations, to require the many resellers to stick to Class
2 drugs such as cold medicines, and to give adequate explanations on the
website about how to use those products. (Source: TT commentary from
e.nikkei.com, Feb 9, 2013)

http://e.nikkei.com/e/ac/TNKS/Nni20130209D0802A11.htm

=> Japanese families moving to Malaysia

Interesting article in the Asahi several weeks ago, about young Japanese
families moving to Malaysia on that country's MM2H visa. The visa allows
people with regular overseas income and the required financial deposit, to
live in Malaysia and travel freely to and from the country as the resident
wishes. According to the article a small but increasing number of people
under the age of 40 are moving to Malaysia to live. There were apparently
423 Japanese admitted under this visa category in 2011, and almost 50 of
them were young family members. The availability of AirAsia flights from
Kuala Lumpur to Tokyo for just JPY20,000 means that the MM2H visa is now a
very viable alternative for Japanese wanting to live abroad and yet hop
over to Tokyo for sushi when the mood takes them. (Source: TT commentary
from asahi.com, Jan 27, 2013)

http://ajw.asahi.com/article/globe/feature/asia/AJ201301270019

=> Japanese otaku Riddler finally caught

It took the police to force confessions from four innocent suspects before
they caught him, but finally they did. Last week they took into custody
pudgy, 30-year old Yusuke Katayama, after solving a series of riddles that
Katayama had challenged them with and which led them to a digital memory
card he'd strapped to a cat living on an island near Tokyo. Katayama had
sent threats against schools and kindergartens from rented PCs around the
country, in what appears to be a case of boredom and otaku weirdness.
***Ed: Only in Japan?** (Source: TT commentary from theaustralian.com, Feb
10, 2013)

http://bit.ly/Z2Og1N

NOTE: Broken links
Some online news sources remove their articles after just a few days of
posting them, thus breaking our links -- we apologize for the inconvenience.

***------------------------****-------------------------***

+++ CANDIDATE ROUND UP/VACANCIES

=> BiOS, a Division of the LINC Media group, is actively marketing the
following positions for customers setting up or expanding in Japan, as well
as other employers of bilinguals.

** HIGHLIGHTED POSITION

BiOS is urgently looking for a Staffing Consultant who can support our IT
Outsourcing team in the Minato-ku area by working closely with IT engineers
for both internal hire and direct placement recruitment. The candidate will
search for and scout candidates to be submitted to clients, match job
openings with candidates with appropriate level of skill, language, salary,
etc., as well as meeting with candidates and coordinating with internal
managers for interviews and screening. You will also be responsible for
formatting resumes for submission, translating some job descriptions, and
occasionally attending networking events.

Due to the technical nature and demanding work environment, this position
is suitable for someone with a basic understanding of IT terminology who is
comfortable multitasking. In addition, since this role requires direct
coordination with both regional and global IT teams, fluent Japanese and
native English will be required.

Remuneration is JPY2.5m - JPY3m depending on your experience and skill
level.

** POSITIONS VACANT

- Senior Support Engineer, IT integration services provider, JPY 4.5M - 5.5M
- Data Center Operator, global financial services company, JPY 3M - 5M
- Service Delivery Manager (Data Center), large data center services
provider, JPY 6M - 8M
- Desktop Engineer, IT services provider, JPY 3M - 5M
- Server Engineer, major Japanese online company, JPY 5M - 7.5M

** BiOS Job Mail

Every 2 weeks BiOS sends out a regular communication to its job seeking
candidates, called BiOS Job Mail. Every edition carries a list of BiOS's
current and most up-to-date vacancies, with each entry featuring a short
job description and a direct link to the main entry on the BiOS home page.
Regardless of whether you are unemployed and searching, thinking about a
career change, or just curious to know if there is something out there that
might suit you better, the BiOS Job Mail newsletter is an easy and
convenient way for you to stay informed. If you would like to register for
the BiOS Job Mail, or to find out more, please email
jason.kisling at biosjp.com.

Interested individuals may e-mail resumes to: jason.kisling at biosjp.com and
check out the BiOS web page for other jobs:
http://www.biosjp.com/positions.php
-----------------------------------------------------------
***------------------------****-------------------------***

+++ UPCOMING EVENTS/ANNOUNCEMENTS

----------------- ICA Event February 21 ------------------

Speaker: Gen Utsumi, Head of Sales & Business Development APAC for
smartTrade Technologies.

Title: "The Reality of Electronic FX Trading" Details: Complete event
details at http://www.icajapan.jp/

Date: Thursday, February 21, 2013
Time: 6:30 Doors open, Buffet Dinner included and cash bar
Cost: 4,000 yen (members), 6,000 yen (non-members) Open to all. No sign ups
at the door!!!!!!!
RSVP: RSVP by 5pm on Friday, February 15th
Venue is The Foreign Correspondents' Club of Japan
http://www.fccj.or.jp/aboutus/map
-----------------------------------------------------------

-------------------- Tohoku Fundraiser --------------------
David Stetson Valentine’s Photography Fundraiser for Tohoku

Studio portrait sessions for couples on Saturday 23rd & Sunday 24th
February anytime between 10am and 10pm at a private studio in Meguro.
Create a Valentine’s memory that will last a lifetime while supporting the
recovery effort in Tohoku. Special price: JPY68,000. One third of all
proceeds going to support projects on the Oshika peninsula.
Reservations: email caroline at carolinepover.com with your preferred time.

David’s photography - www.davidstetson.com and
www.davidstetson.com/portrait_gallery.html.
Caroline’s activities in Tohoku - www.carolinepover.info
-----------------------------------------------------------

***------------------------****-------------------------***

+++ CORRECTIONS/FEEDBACK

In this section we run comments and corrections submitted by readers. We
encourage you to spot our mistakes and amplify our points, by email, to
editors at terrie.com.

=> No corrections this week.

***------------------------****-------------------------***

+++ TRAVEL DESTINATIONS PICKS

=> Honjima, Kagawa-ken
The Island Where Time Stood Still.

Many travelers head to Kyoto to catch a glimpse of Old Japan, but a
simpler, quieter, more rare and realistic experience can be found in
Kasashima on Honjima, a small island in the Seto Inland Sea, and part of
the Shiwaku Island group.

The former castle town’s well preserved houses and local scenery have been
designated an Important Historic Structure Group Preservation Zone of some
13.1 hectares. Although the hilltop castle overlooking Kasashima no longer
exists, below it, over 100 beautiful old houses built by the Edo and Meiji
period Shiwaku carpenters line the narrow streets, providing a rare glimpse
into old Japan

http://japantourist.jp/view/honjima

 => Old Shimbashi Station, Kanagawa-ken
Foreign Footsteps in Yokohama 13 - Morel’s contribution

In 1854, during Commodore Perry’s second trip to Japan, Perry had amazed
the Japanese with a live demonstration of a model steam locomotive in
Yokohama. In 1872 (a long 18 years later) Japan’s first two train stations
began service at Shimbashi and Yokohama, with a direct train connecting
both stations (a distance of 23.8 km) in 53 minutes. Before then, the same
journey had taken one day on foot, or seven hours by palanquin.

The original Shimbashi Station building (designed by American architect
Richard P. Bridgens) was destroyed by fire in the Great Kanto Earthquake of
1923. But in 2003 it was restored for use as a nice little memorial museum.
The station’s original platform was also replicated; it is 35 meters long.

The Railway History Exhibition Hall displays nails, plates, rails, and old
tools and materials from the original railway on the first floor. Special
exhibitions and a video corner are up on the second floor. The videos are
quite interesting and include photos of Old Shimbashi Station when it was
first opened, and bridge, rail and embankment construction site photos, as
well.

http://japantourist.jp/view/old-shimbashi-station

***------------------------****-------------------------***

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+++ ABOUT US

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Written by: Terrie Lloyd (terrie.lloyd at japaninc.com)

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