Salient to Investors:
William Pesek writes:
- China’s declaration of a vast air defense identification zone belies all the talk of its peaceful, magnanimous rise as a world power. A tiny accident or miscalculation in the skies above the disputed islands could easily spiral out of control, dragging Washington into a clash that would shake the global economy.
- Xi may be especially willing to risk a confrontation with Japan in order to distract opponents of his proposed reforms, as well as ordinary Chinese who are growing restless over pollution, income inequality and official corruption.
- Abe is an unapologetic revisionist who remains intent on whitewashing Japan’s WWII aggression, including the government’s role in keeping military sex slaves; flexing Japan’s muscles in Asia; and perhaps revising its pacifist constitution.
- In addition to Japan and Korea, China’s air zone is sure to worry Brunei, Indonesia, Malaysia, the Philippines and Taiwan, all of which are embroiled in territorial disputes with Beijing.
- China took a big hit abroad for its initial $100,000 aid offering to the typhoon-devastated Philippines, so its inflammatory new policy will only further alienate neighbors in a region it’s seeking to woo away from the US.
Read the full article at http://www.bloomberg.com/news/2013-11-28/xi-jinping-overreaches-in-the-east-china-sea.html
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