Japan, China, South Korea Island Disputes Threaten Global Economy (+ Video)

By McDowell, Daniel | The Christian Science Monitor, October 22, 2012 | Go to article overview

Japan, China, South Korea Island Disputes Threaten Global Economy (+ Video)


McDowell, Daniel, The Christian Science Monitor


What are the biggest short-term threats to the global economy? The two most obvious answers are the ongoing European debt crisis and the looming austerity of the fiscal cliff in the United States. But what if I told you that in the running for honorable mention is the sticky situation in East Asia surrounding territorial disputes over several small islands?

At the heart of these disputes lie the regions big three economies: China, Japan, and South Korea. Beijing and Tokyo are at odds over who has rights to the Senkaku Islands (or in China, the Diaoyu) and, more important, the potential oil deposits in the surrounding waters. Meanwhile, Japan has a similar dispute with South Korea over the Takeshima Islands (or in South Korea, the Dokdo), also with energy deposits.

While these territories have been disputed for decades, tensions have recently heightened in the region as all sides intensify ownership claims and leaders use the disputes for leverage in domestic politics. This raises concerns about strategic and economic stability in the region going forward.

Fears about instability in East Asia are not new. In the early 1990s, as the cold war entered the history books, some international relations experts feared that East Asia was poised to become like Europe of the early 20th century a multipolar region with a threatening rising power (in this case China, rather than Germany) and weak regional institutions.

However, by the end of that decade, hopes for regional stability and cooperation were on the rise. Much of the progress came on the financial front. After the 1997 financial crisis rocked the entire region, a consensus emerged among the big three countries and a group of 10 smaller ones in Southeast Asia that East Asia needed a financial safety net.

In 2000, a system of emergency credit lines between central banks was born and has since developed into a regional foreign exchange pool with $240 billion in resources. Trade between nations in the region increased substantially.

More recently, in the immediate aftermath of the global financial crisis in 2008, China, Japan, and South Korea increased existing central bank credit lines with each other. Just last year, China and Japan agreed to begin conducting trade in their own local currencies in order to increase commerce between their two economies.

The island disputes are threatening to undermine all this. Three recent events highlight how the territorial spats are now spilling over into the economic sphere.

First, nationalist fervor in China has led to a de facto boycott of Japanese goods, causing September sales of Japanese cars in China to plummet. Japans major automakers say they will draw down production in China. …

The rest of this article is only available to active members of Questia

Sign up now for a free, 1-day trial and receive full access to:

  • Questia's entire collection
  • Automatic bibliography creation
  • More helpful research tools like notes, citations, and highlights
  • Ad-free environment

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

Japan, China, South Korea Island Disputes Threaten Global Economy (+ Video)
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

    Already a member? Log in now.