#14 Bank of Japan’s Policy Review - Olympic Torch Relay begins - North Korea’s Missile Launch - Green Ambitions - Miyagi Earthquake.
Here is a brief on biweekly (16th – 31st, March).
● The Tokyo Olympic torch relay started from the J-village sports training centre in the Fukushima Prefecture
● The Bank of Japan’s policy review seems to be a modest nudge with no major changes
● Japan stands in support of Taiwan in the China-Taiwan divide, as Chinese warplanes entered the air defence zone of Taiwan
● North Korea launched two ballistic missiles into the Sea of Japan, fueling tensions with Japan and the neighboring nations
● Amidst the global push to reduce carbon emissions, Japanese scientists find a greener way to produce hydrogen gas
● A 6.9 magnitude earthquake hit off the coast of the Miyagi Prefecture
Bank of Japan’s Policy Review.
● The Bank of Japan completed its three-month policy review. There seem to be no major changes in the state of Japan’s monetary policy. BOJ is the largest buyer of government bonds in the market. It has been pursuing quantitative easing, unprecedented yield curve control scheme, and negative interest rate policy. By doing all this, BOJ intends to encourage borrowing and push up consumer prices, and meet its 2 percent inflation target. Analysts fear the consequence of a distorted market mechanism as an effect of the prolonged ultra-low rate policy.
● A new Bloomberg article discusses the takeaways from the Bank of Japan’s policy review. They are as below:
“BOJ will allow the yield on 10-year government bonds to move 25 basis points on either side of the bank’s zero targets, a slightly wider range than investors assumed previously”.
“The benchmark interest rate will remain at minus 0.1%”.
Olympic Torch Relay Begins.
The Japanese government formally ended the COVID-19 state of emergency in Tokyo. The government is gearing up with preparations for the Tokyo Olympics and to revive the pandemic-stricken economy. The Tokyo Olympic torch relay started from the J-village sports training centre in Fukushima. Meanwhile, as a COVID-19 precaution measure, Japan has decided to ban overseas Olympic visitors and continue with the suspension of the “Go-To Travel” campaign. The campaign is a government subsidy program that intends to encourage domestic travel and thereby boost the economy. The delayed Tokyo Olympics is expected to showcase Japan’s recovery from the 2011 Tohoku earthquake and Tsunami.
In support of Taiwan in the China-Taiwan divide.
According to Taiwan's Defence ministry, twenty Chinese warplanes entered the air defence zone of Taiwan on March 26. The largest-ever incursion by Chinese military aircraft comes in response to the maritime cooperation accord signed between Taipei and Washington. In a recent meeting, the United States Defence Secretary, Lloyd Austin, and Japanese Defence Minister Nobuo Kishi agreed to closely cooperate in the event of a military clash between Taiwan and China. In the case of the Taiwan strait crisis, Tokyo is looking at issuing the Self-Defence Forces(SDF) dispatch to protect the United States warships and military aeroplanes, according to Nobuo Kishi.
North Korea’s missile launch and the Japanese reaction.
● North Korea launched two ballistic missiles into the Sea of Japan, going against UN Security Council resolutions while threatening the peace and security of the neighboring nations. According to the Japanese government, the missile landed outside the territorial waters and exclusive economic zone of Japan. There was no reported damage to aircraft or ships. Japanese Prime Minister Yoshihide Suga called an emergency meeting with the National Security Council to discuss the safety of marine and air traffic. After the meeting with NSC Suga said “we will closely cooperate with the United States, South Korea, and other countries to firmly protect people’s peaceful lives”. Meanwhile, the U.S. Indo-Pacific Command assured of Washington's commitment to the defence of Japan and South Korea.
● Suga is likely to meet the United States President Joe Biden in April. They are expected to discuss the denuclearization of North Korea, the importance of stability in the Taiwan Strait, and the Senkaku Islands dispute in the East China Sea. They will also discuss advancing efforts of the Quad member countries in realizing a “Free and Open Indo-Pacific”.
● Japan, meanwhile, has extended its sanctions against North Korea.
Green Ambitions.
● Japan is on its path to realize the target of becoming a “Hydrogen Society”. In an era, where the transition from fossil fuels to clean energy is gaining momentum, hydrogen is heralded as a clean energy source. Japanese scientists have come up with a cheap and efficient alternative to produce hydrogen from water. This breakthrough is in alignment with Suga’s “green growth strategy”, to reduce Japan’s net emissions of greenhouse gases to zero by 2050.
● Nonetheless, the number of electric vehicle charging stations in Japan is lagging behind other European countries. A Deloitte survey in 2020 reports that the most common concern for Japanese consumers when buying an electric vehicle was the lack of EV charging infrastructure. Japan needs to use more renewable energy and invest in charging stations to achieve its carbon emissions goals.
2021 Miyagi earthquake, Fukushima anniversary, lessons learned.
● A 6.9 magnitude earthquake struck the northeastern coast of Japan, just one week after the country mourned the 10th anniversary of the Fukushima disaster. It was reported that two persons were injured in the Miyagi Prefecture. Other than that no abnormalities were found at the nuclear plants in the region.
● In a report released by the government’s Headquarters for Earthquake Research Promotion, it was predicted that powerful aftershocks can occur over many years especially in the northeastern Tohoku region.
● An article in The Economist discusses the lessons learned from the Fukushima disaster. The key takeaway being the revival of nuclear power plants to combat climate change.
“Nuclear revival can be safe in earthquake-prone Japan, and is essential if the country is to achieve carbon-neutral power.”
The core arguments are that:
A well-regulated nuclear power is safe. It was the tsunami, not radiation, that claimed nearly all those lives in Fukushima.
The climate is in crisis, and nuclear plants can supply some of the vast amounts of emission-free electricity the world needs if it is to cope.
● The Japanese government has asked the International Atomic Energy Agency to conduct a safety review regarding disposal of the treated radioactive water from the crippled Fukushima nuclear plant. Japan is hoping that this will help throw light on the controversy surrounding the treated radioactive water disposal and concerns about the environmental damage amidst strong opposition from its fisherman community and the neighboring countries. In a web-meeting with IAEA’s Director General Rafael Grossi, Japan’s Industrial Minister Hiroshi Kajiyama requested the IAEA to conduct a scientific review of the method of disposal of the water and openly convey its view to the international community.
Japanese ship blocks the Suez Canal.
● The Ever Given, a giant container ship owned by a Japanese firm, Shoei Kisen, got stuck sideways across the Suez canal. It was freed after being refloated but has already caused huge economic damage. With investigations on, it is an expensive question as to who will bear the brunt of the damage caused to the vessel, cargo, canal, cost of the salvage operation, and losses to the other delayed vessels.
● An Economist article discusses why the Suez Canal and other choke-points face growing pressure from climate change. The canal that carries 12% of global trade by volume, came to a complete halt when Ever Given became wedged in it. The incident exposed the weakness of supply chains. Quoting the 2016 long dry spell in Central America that forced the introduction of depth restrictions on the Panama Canal, the article throws light on how disruptive a future weather event can be to maritime trade. With extreme weather events becoming more common, “governments and companies need to plan for more rough crossings”.
The biweekly, " Watch on Japan" concisely gives interesting information about the country. It has become a fortnightly intriguer.