Tag Archives: Japan

Trump meets Japan, Australia leaders over trade, North Korea threat

U.S. President Donald Trump holds a trilateral meeting with Japan's Prime Minister Shinzo Abe and Australia's Prime Minister Malcolm Turnbull alongside the ASEAN Summit in Manila, Philippines November 13, 2017.

MANILA (Reuters) – U.S. President Donald Trump raised North Korea’s missile tests during talks on Monday with the prime ministers of Japan and Australia, and said “a lot” of progress had been made in negotiations on trade.

On the sidelines of a summit of East and Southeast Asian leaders in Manila, Trump met with Japan’s Shinzo Abe and Australia’s Malcolm Turnbull, and said discussions at the meeting would include tensions on the Korean Peninsula and trade.

In brief remarks prior to news media being ushered out of the meeting, Turnbull said North Korea’s “recklessness” needed to be stopped, while Abe said the most immediate challenge was to ensure regional peace and stability.

Following the meeting, the White House said “the three leaders reaffirmed their commitment to maintaining maximum pressure on North Korea in the effort to denuclearize the Korean Peninsula.”

“They also discussed expanded security cooperation for enhanced deterrence and defense against North Korean aggression,” the White House said in a statement.

The three men also discussed the need for “free and open” trade in the Indo-Pacific region and “the need to pursue fair and reciprocal trade,” the White House added.

Trump, who campaigned heavily on U.S. trade issues, made pulling out of the Trans-Pacific Partnership (TPP) Asian trade deal one of his first acts in office. His administration has instead pledged to reach bilateral pacts with individual nations.

Countries remaining in the pact have said the deal is advancing without the United States.

 

(Reporting by Steve Holland; Writing by Martin Petty and Susan HeaveyEditing by Raju Gopalakrishnan and Jonathan Oatis)

 

Trump heads to Japan with North Korea on his mind

U.S. President Donald Trump shouts to reporters as he and and first lady Melania Trump board Air Force One for travel to Hawaii, on his way to an extended trip to five countries in Asia, from Joint Base Andrews, Maryland, U.S. November 3, 2017.

By Steve Holland

HONOLULU (Reuters) – U.S. President Donald Trump heads to Japan on the first stop of his five-nation tour of Asia on Saturday, looking to present a united front with the Japanese against North Korea as tensions run high over Pyongyang’s nuclear and missile tests.

Trump, who is on a 12-day trip, is to speak to U.S. and Japanese forces at Yokota air base shortly after arriving in Japan on Sunday and looked to stress the importance of the alliance to regional security.

Ballistic missile tests by North Korea and its sixth and largest nuclear test, in defiance of U.N. Security Council resolutions, have exacerbated the most critical international challenge of Trump’s presidency.

Aerial drills conducted over South Korea by two U.S. strategic bombers have raised tensions in recent days.

In a display of golf diplomacy, Trump is to play a round of golf with Japanese Prime Minister Shinzo Abe. The two leaders also played together in Florida earlier this year.

Trump will also have a state call with the Imperial Family at Akasaka Palace during his visit. Abe and Trump will meet families of Japanese citizens abducted by North Korea.

Joined by his wife Melania on part of the trip, Trump’s tour of Asia is the longest by an American president since George H.W. Bush in 1992. Besides Japan, he will visit South Korea, China, Vietnam and the Philippines.

Trump extended the trip by a day on Friday when he agreed to participate in a summit of East Asian nations in Manila.

His trip got off to a colorful start in Hawaii. He was taken by boat out to the USS Arizona Memorial, where lies the World War Two ship that was sunk by the Japanese during the Pearl Harbor attack in 1941.

The Trumps tossed white flower petals into the waters at the memorial in honor of those who died at Pearl Harbor.

 

TRADE, NORTH KOREA

Trump’s trip is to be dominated by trade and how to muster more international pressure on North Korea to give up nuclear weapons.

“We’ll be talking about trade,” Trump told reporters at the White House on Friday. “We’ll be talking about obviously North Korea. We’ll be enlisting the help of a lot of people and countries and we’ll see what happens. But I think we’re going to have a very successful trip. There is a lot of good will.”

Trump has rattled some allies with his vow to “totally destroy” North Korea if it threatens the United States and his dismissal of North Korean leader Kim Jong Un as a “rocket man” on a suicide mission.

White House national security adviser H.R. McMaster, briefing reporters on Friday, defended Trump’s colorful language.

“What’s inflammatory is the North Korean regime and what they’re doing to threaten the world,” McMaster said.

Trump will seek a united front with the leaders of Japan and South Korea against North Korea before visiting Beijing to make the case to Chinese President Xi Jinping that he should do more to rein in Pyongyang.

Trade will factor heavily during Trump’s trip as he tries to persuade Asian allies to agree to trade policies more favorable to the United States.

A centerpiece of the trip will be a visit to the Asia Pacific Economic Cooperation summit in Danang, Vietnam, where he will deliver a speech in support of a free and open Indo-Pacific region, which is seen as offering a bulwark in response to expansionist Chinese policies.

 

(Reporting By Steve Holland; Editing by Paul Tait)

 

Rookies and robots brace for first UK rate rise since 2007

Office lights are on at dusk in the Canary Wharf financial district, London, Britain,

By Fanny Potkin and Polina Ivanova

LONDON (Reuters) – Financial markets braced this week for what could be the Bank of England’s first rate rise in a decade – a step into the unknown for a generation of young traders who started work after 2007 but also for the state-of-the-art technology they use.

After a decade that included a global financial crash, numerous investigations into market collusion and relentless automation, trading floors at banks in London have been transformed in ways not obvious at first glance.

The newest kid on the block is not necessarily the rookie trader with a PhD in physics but the latest computer model or algorithm. How these models will perform under the almost novel circumstances of tightening monetary policy is as much a question as how the human neophytes will react.

Using past market data, assessments of demand, valuation models and even measures of how upbeat news headlines are, computers crunch the numbers, game the scenarios and buy or sell in the blink of an eye.

But shocks such as Brexit have shown that computer-driven trading can end in stampedes, or so-called flash crashes.

“You’ve got to weigh up the strength of the traders and the strength of the algorithms that have been developed and whether they can manage this kind of a process when the rate hike does come in,” said Benjamin Quinlan, CEO of financial services strategy consultancy Quinlan & Associates.

At Citibank’s expansive trading floor in London, the dealing room doesn’t look much different from a decade ago with traders hunched in front of banks of screens, the odd national flag perched on top, and television screens on mute.

But beneath the outward appearance, foreign exchange trading has undergone a seismic shift: more than 90 percent of cash transactions and a growing proportion of derivatives trades in the global $5 trillion a day FX market are done electronically.

So-called smart algos, or fully automated algorithmic trading programs that react to market movements with no human involvement, were virtually non-existent in 2007. Now, almost a third of foreign exchange trades are driven solely by algorithms, according to research firm Aite Group.

“Most of these algorithms haven’t really been tested in a rising interest rate scenario so the next few months will be crucial,” said a portfolio manager at a hedge fund in London.

To be sure, the U.S. Federal Reserve’s first rate rise in a decade in 2015 provided a dry run for this week’s UK decision – but the two economies are in very different positions and the knock-on effects on the wider financial markets of a Bank of England move are hard to predict.

 

ROOKIES AND ROBOTS

Much has changed since the Bank of England raised rates by 0.25 percent on July 5, 2007 to 5.75 percent. The first iPhone had yet to reach British shores, the country’s TVs ran on analogue signals and Northern Rock bank was alive and well.

Where once lightning decision-making and a calm head in a crisis were at a premium, the bulk of trading today is done by machines and the job of a foreign exchange sales trader is often little more than minding software and fielding client queries.

Itay Tuchman, head of global FX trading at Citi and a 20-year market veteran, said while the bank employs roughly the same number of people in currency trading as over the last few years, fewer are dedicated to business over the phone.

“We have an extensive electronic trading business, powered by our algorithmic market making platform, which is staffed by many people that have maths and science PhDs from various backgrounds,” said Tuchman, who heads trading for Citi’s global developed and emerging currency businesses.

London is the epicenter of those changes with the average daily turnover of foreign exchange trades executed directly over the phone down by a fifth to $566 billion in just three years to 2016, according to the Bank of England.

At Dutch bank ING’s London trading room, Obbe Kok, head of UK financial markets, said the floor now has about 165 people but the bank wants to make it 210 by the end of the year – searching mainly for traders attuned to technological innovations and keen on artificial intelligence.

The proportion of people employed in trading with degrees in mathematics and statistics has increased by a 58 percent over the last 10 years, Emolument, a salary benchmarking site, said.

“What banks have started to do is trade experience for technological skill and with electronic platforms growing, the average age on the floor is a bit younger,” said Adrian Ezra, CEO of financial services recruitment agency Execuzen.

 

TAPER TANTRUM

The increasing use of technology means traders can gauge the depth of market liquidity at the click of a button or quickly price an option based on volatility – a major change from a few years ago when they had to scour the market discreetly for fear of disclosing their interest to rivals.

Ala’A Saeed, global head of institutional electronic sales and one of the brains behind Citi’s trading platform FX Velocity, said its electronic programs process thousands of trades per minute.

Most of the currency trading models used by banks incorporate variables such as trading ranges, valuation metrics including trade-weighted indexes and trends in demand based on internal client orders to get a sense of which way markets are moving – and the potential impact of a new trade.

Nowadays, the models also incorporate sentiment analysis around news headlines and economic data surprises.

These electronic trading platforms also have years of financial data plugged into them with various kinds of scenario analyses, but one thing they have sometimes appeared unprepared for is a sudden change in policy direction.

Witness the market mayhem exacerbated by trend-following algorithms when Switzerland’s central bank scrapped its currency peg in 2015, or the taper tantrum in 2013 when the U.S. Federal Reserve said it would stop buying bonds.

Or Britain’s vote last year to leave the European Union.

Indeed, the biggest risk for financial markets cited by money managers in a Bank of America Merrill Lynch poll in October was a policy misstep from a major central bank.

 

EASY CREDIT, LOW VOLATILITY

One concern is that the rise in automation has coincided with a prolonged decline in market volatility as central banks from the United States to Japan have kept interest rates close to zero and spent trillions of dollars dragging long-term borrowing costs lower to try to reboot depressed economies.

While central banks have been careful to get their messages across as they end the years of stimulus, there are concerns about whether quantitative trading models can capture all the qualitative policy shifts.

For example, a growing number of investors expect the Bank of England to raise its benchmark interest rate to 0.5 percent on Nov. 2, and then leave it at that for the foreseeable future.

But futures markets are expecting another rate rise within six to nine months, injecting a new level of risk around interest rate moves and potentially boosting volatility.

Neale Jackson, a portfolio manager at 36 South Capital Advisors, a $750 million volatility hedge fund in London, said young traders have never seen an environment other than central banks supporting markets, and that has fueled risk-taking underpinned by the belief that “big brother has got our backs”.

“The problem these days is that there’s a whole generation of traders who have never seen interest rates, let alone interest rates hikes,” said Kevin Rodgers, a veteran FX trader and the author of “Why Aren’t They Shouting?”, a book about the computer revolution within financial markets.

 

(Additional reporting by Maiya Keidan and Simon Jessop; writing by Saikat Chatterjee; editing by Mike Dolan and David Clarke)

 

North Korea threat is ‘critical, imminent,’ Japan tells U.S., South Korea

People watch a television broadcasting a news report on North Korea firing a missile that flew over Japan's northern Hokkaido far out into the Pacific Ocean, in Seoul, South Korea, September 15, 2017. REUTERS/Kim Hong-Ji

By Phil Stewart

CLARK FREEPORT ZONE, Philippines (Reuters) – The threat from North Korea has grown to a “critical and imminent level” and the United States, Japan and South Korea must address the matter, Japanese Defense Minister Itsunori Onodera told his U.S. and South Korean counterparts in talks on Monday.

Onodera’s remarks underscored the deep concern in Tokyo after North Korean weapons tests, including test firing missiles over Japan, as Pyongyang seeks to develop a nuclear-tipped missile capable of reaching the United States.

His comments broke from more measured language on Monday by U.S. Defense Secretary Jim Mattis and South Korean Defense Minister Song Young-Moo, as the three men met on the sidelines of a gathering of Asian defense chiefs in the Philippines.

“(The) threat posed by North Korea has grown to the unprecedented, critical and imminent level. Therefore, we have to take calibrated and different responses to meet with that level of threat,” he said, speaking through a translator, at the start of talks in the Philippines.

South Korea’s Song also acknowledged that “North Korea’s provocative behavior is becoming worse and worse,” in public remarks before reporters were escorted out of the meeting room.

Mattis renewed sharp criticism of North Korea’s tests, saying they “threaten regional and global security.”

Mattis, who kicked off a week-long trip to the region on Monday, has been eager to emphasize diplomatic efforts to resolve the crisis peacefully as escalating tension between Washington and Pyongyang stoked fears of ‘armed confrontation.’

Asked about his conversation with Onodera after the two met earlier in the day, before joining South Korea’s Song, Mattis said they discussed “maintaining stability and peace in support of the diplomats.”

Meanwhile, former U.S. President Jimmy Carter said he is willing to travel to North Korea on behalf of the Trump administration to help diffuse the situation, the New York Times reported.

Mattis has been more cautious in his public remarks than U.S. President Donald Trump, who has been locked in a war of words with North Korean leader Kim Jong Un, threatening to destroy North Korea if necessary to defend the United States and its allies.

Kim has blasted Trump as “mentally deranged.”

 

‘GRAVE CONCERN’

Mattis is at the start of a week-long trip to Asia and will attend meetings hosted by defense ministers from the Association of Southeast Asian Nations (ASEAN) in the Philippines.

ASEAN defense ministers, in a joint statement, expressed “grave concern” over North Korea’s nuclear and missile programs and urged the reclusive country to meet its international obligations and resume communications.

They underscored the “need to maintain peace and stability in the region” and called “for the exercise of self-restraint and the resumption of dialogue to de-escalate tensions in the Korean peninsula.”

Mattis’ trip, which will include a stop in Thailand, comes before Trump’s first visit to Asia next month, including a stop in China.

Trump has been pressuring China to do more to rein in North Korea’s missile and nuclear program. China is North Korea’s neighbor and biggest trading partner.

Mattis, while in the Philippines, said he will commend the military for defeating insurgents in Marawi City on the islandof Mindanao.

The Philippines said on Monday it has ended five months of military operations in Marawi after a fierce and unfamiliar urban war that marked the country’s biggest security crisis in years.

Some experts see the Marawi insurgency as a prelude to a more ambitious bid by Islamic State loyalists to exploit Mindanao’s poverty and use its jungles and mountains as a base to train, recruit and launch attacks in the region.

“It was a tough fight,” Mattis told reporters on his flight to the Philippines, adding he thought the Philippines’ military had sent “a very necessary message to the terrorists.”

On Thursday, Mattis will lead the U.S. delegation inThailand for the cremation rites for the late King Bhumibol Adulyadej.

 

(Reporting by Phil Stewart; Additional reporting by Manuel Mogato in Manila; Editing by Peter Cooney and Jeffrey Benkoe)

 

Southeast Asian ministers urge North Korea to rein in weapons programs

North Korean leader Kim Jong-Un looks on during a visit to the Chemical Material Institute of the Academy of Defense Science in this undated photo released by North Korea's Korean Central News Agency (KCNA) in Pyongyang on August 23, 2017. KCNA/via REUTERS

By Manuel Mogato

CLARK FREEPORT ZONE, Philippines (Reuters) – Southeast Asian defense ministers on Monday expressed “grave concern” over North Korea’s nuclear and missile programs and urged the reclusive country to meet its international obligations and resume communications.

North Korea is working to develop a nuclear-tipped missile capable of striking the U.S. mainland and has ignored all calls, even from its lone major ally, China, to rein in its weapons programs which it conducts in defiance of U.N. Security Council resolutions.

Defense ministers from the Association of Southeast Asian Nations (ASEAN), in a joint statement, underscored the “need to maintain peace and stability in the region” and called “for the exercise of self-restraint and the resumption of dialogue to de-escalate tensions in the Korean peninsula”.

They are due to meet with their counterparts from the United States, China, Japan, South Korea, India, Australia, Russia and New Zealand on Tuesday when North Korea, the disputed South China Sea and terrorism are expected to top the agenda.

U.S. Defense Secretary Jim Mattis has said he will talk with Asian allies about North Korea and the crisis caused by its “reckless” provocations.

Mattis’s trip to Asia, which will also include stops in Thailand and South Korea, comes just weeks before Donald Trump’s first visit to Asia as U.S. president.

In the same statement, the ministers reiterated the importance of “safety and freedom of navigation in and over-flight above the South China Sea” and called for “self restraint in the conduct of activities”.

They also vowed to work together to combat terrorism as they condemned the attack by the Maute militant group in the southern Philippine city of Marawi.

The Philippines on Monday announced the end of five months of military operations in Marawi after a fierce and unfamiliar urban war that marked the country’s biggest security crisis in years.

 

 

 

(Writing by Karen Lema; Editing by Nick Macfie)

 

Typhoon leaves flooding, four dead in Japan before moving out to sea

A collapsed road is seen following torrential rain caused by typhoon Lan in Kishiwada, Japan in this photo taken by Kyodo on October 23, 2017. Mandatory credit Kyodo/via REUTERS

By Elaine Lies

TOKYO (Reuters) – A rapidly weakening typhoon Lan made landfall in Japan on Monday, setting off landslides and flooding that prompted evacuation orders for tens of thousands of people, but then headed out to sea after largely sparing the capital, Tokyo.

Four people were reported killed, hundreds of plane flights canceled, and train services disrupted in the wake of Lan, which had maintained intense strength until virtually the time it made landfall west of Tokyo in the early hours of Monday.

At least four people were killed, including a man who was hit by falling scaffolding, a fisherman tending to his boat, and a young woman whose car had been washed away by floodwaters.

Another casualty was left comatose by injuries and a man was missing, NHK public television said. Around 130 others suffered minor injuries.

Rivers burst their banks in several parts of Japan and fishing boats were tossed up on land. A container ship was stranded after being swept onto a harbor wall but all 19 crew members escaped injury.

Some 80,000 people in Koriyama, a city 200 km (124 miles) north of Tokyo, were ordered to evacuate as a river neared the top of its banks, NHK said, but by afternoon water levels were starting to fall. Several hundred houses in western Japan were flooded.

“My grandchild lives over there. The house is fine, but the area is flooded, and they can’t get out,” one man told NHK.

Lan had weakened to a category 2 storm when it made landfall early on Monday, sideswiping Tokyo, after powering north for days as an intense category 4 storm, according to the Tropical Storm Risk monitoring site.

Lan is the Marshall islands word for “storm”.

By Monday afternoon the storm had been downgraded to a tropical depression and it was in the Pacific, east of the northernmost main island of Hokkaido, the Japan Meteorological Agency said.

Around 350 flights were canceled and train services disrupted over a wide area of Japan, although most commuter trains were running smoothly in Tokyo.

Toyota Motor Corp canceled the first shift at all of its assembly plants but said it would operate the second shift as normal.

 

(Additional reporting by Junko Fujita and Naomi Tajitsu; Editing by Michael Perry & Simon Cameron-Moore)

 

U.S. Navy carrier drills with Japanese navy amid North Korean tension

USS Ronald Reagan (rear), a Nimitz-class nuclear-powered supercarrier, sails side-by-side with Japan Maritime Self-Defense Force's Hyuga-class helicopter destroyer Ise (DDH-182) during their joint military drill in the sea off Japan, in this photo released taken by Japan Maritime Self-Defense Force on September 14, 2017 and released on September 22, 2017. Picture taken September 14, 2017. Japan Maritime Self-Defense Force/HANDOUT via REUTERS

TOKYO (Reuters) – The U.S. Navy carrier Ronald Reagan is conducting drills with Japanese warships in seas south of the Korean peninsula, Japan’s military said on Friday, in a show of naval power as Pyongyang threatens further nuclear and missile tests.

The Reagan strike group will conduct a separate drill with the South Korean Navy in October, the defense ministry said in a statement distributed to South Korean lawmakers on Monday.

The 100,000-ton Reagan, which is based in Japan, and its escort ships have been holding drills with Japanese navy vessels since Sept 11 in waters south and west of Japan’s main islands, the Japan Maritime Self Defence Force said in a statement.

That exercise with the three Japanese warships, including two destroyers and one of the country’s two biggest helicopter carriers, the Ise, will run until Sept 28, it added.

The U.S. and regional allies are responding with military drills, including bomber and jet fighter flights near the Korean peninsula, as Pyongyang pursues its nuclear and missile programs, with an apparent hydrogen bomb test and two ballistic missile firings over Japan in recent weeks.

North Korea on Friday said it might test a hydrogen bomb over the Pacific Ocean after U.S. President Donald Trump vowed to destroy the country.

(Reporting by Tim Kelly and Nobuhiro Kubo in TOKYO; Additional reporting by Christine Kim in SEOUL; Editing by Clarence Fernandez)

Japan’s defense chief warns of possible North Korea provocation on October 10

Japan's Defense Minister Itsunori Onodera speaks to reporters after North Korea's missile launch, at the Defense Ministry in Tokyo, Japan August 26, 2017. REUTERS/Kim Kyung-Hoon

TOKYO (Reuters) – Japanese Defense Minister Itsunori Onodera urged caution on Friday because more provocation was possible from North Korea on Oct. 10, when the start of lower house election campaigns in Japan coincides with one of the North’s main anniversaries.

Tensions have risen on the Korean peninsula since reclusive North Korea conducted its sixth and most powerful nuclear test on Sept. 3, leading to a new round of sanctions after a unanimous vote by the United Nations Security Council.

U.S. President Donald Trump has since traded insults with North Korean leaders, raising the stakes even further.

North Korea has often marked significant events on its calendar by conducting weapons tests, such as its fifth nuclear test last year on Sept. 9, its founding anniversary.

Onodera said Oct. 10 marks an important anniversary for North Korea. It is the date the North celebrates the founding of the North Korean communist party.

“I understand it is an important anniversary for North Korea. We would like to maintain a sense of urgency,” Onodera told reporters.

Oct. 10 is also coincidentally the same day that campaigns will begin in Japan for parliament’s lower house election 12 days later after Prime Minister Shinzo Abe dissolved the chamber on Thursday.

Onodera’s warning echoed a comment by South Korean national security adviser Chung Eui-yong, who said during a meeting with President Moon Jae-in on Thursday that he expected Pyongyang to act around Oct. 10 and 18, but gave no details. [nL4N1M9191]

Oct. 18 marks the start of China’s all-important Communist Party Congress.

North Korea has conducted a series of ballistic missile launches this year, including two launches over Japan in recent weeks, in defiance of international pressure.

China, North Korea’s main ally and trading partner, has urged that dialogue is the only way to resolve the crisis, although Japan has tended to support Washington’s more robust approach.

Abe has said now is the time to apply pressure on North Korea, rather than dialogue, in order to convince North Korea to end its nuclear and missile programs.

(Reporting by Nobuhiro Kubo; Writing by Kiyoshi Takenaka; Editing by Paul Tait)

With China in mind, Japan, India agree to deepen defense

Japanese Prime Minister Shinzo Abe (L) and his Indian counterpart Narendra Modi raise hands after the groundbreaking ceremony for a high-speed rail project in Ahmedabad, India, September 14, 2017. REUTERS/Amit Dave

By Amit Dave and Sanjeev Miglani

GANDHINAGAR, India (Reuters) – The leaders of India and Japan agreed on Thursday to deepen defense ties and push for more cooperation with Australia and the United States, as they seek to counter growing Chinese influence across Asia.

Prime Minister Shinzo Abe arrived this week in his counterpart Narendra Modi’s home state, skipping the tradition of visiting the capital of New Delhi, for the tenth meeting between two leaders since Modi came to power in 2014.

Relations have deepened between Asia’s second and third largest economies as Abe and Modi, who enjoy a close personal relationship, increasingly see eye-to-eye to balance China as the dominant Asian power.

“Almost everything that takes place during the visit, including economic deals, will in part be done with China in mind,” Eurasia analysts said in a note.

Abe’s visit comes days after New Delhi and Beijing agreed to end the longest and most serious military confrontation along their shared and contested border in decades, a dispute that had raised worries of a broader conflict between the Asian giants.

In a lengthy joint statement, India and Japan said deepening security links was paramount. This included collaboration on research into unmanned ground vehicles and robotics and the possibility of joint field exercises between their armies.

There was also “renewed momentum” for cooperation with the United States and Australia. Earlier this year, India rejected an Australian request to be included in four-country naval drills for fear of angering Beijing.

“Relations between India and Japan are not only a bilateral relationship but have developed into a strategic global partnership,” Abe told reporters in Gandhinagar, the capital of western Gujarat state.

“We (India and Japan) will strengthen our collaboration with those countries with whom we share universal values.”

Abe flew to Gujarat to lay the foundation stone of a $17 billion bullet train project, India’s first, that was made possible by a huge Japanese loan.

Tokyo wants to win other high-speed rail lines India plans to build, to edge out Chinese ambitions to do the same and provide a boost for its high-end manufacturers.

The visit was light on specific announcements, but India said it welcomed proposals for increased Japanese investment into infrastructure projects in its remote northeast, a region New Delhi sees as its gateway to Southeast Asia.

China claims part of India’s northeast as its own territory.

Japanese investment into the northeast “would give legs to our Act East policy,” Indian Foreign Secretary S. Jaishankar told reporters.

Modi and Abe also said they would push for more progress on the development of industrial corridors for the growth of Asia and Africa.

Analysts say the planned $40 billion Asia-Africa Growth Corridor takes direct aim at China’s Belt and Road project, envisaged as a modern-day “Silk Road” connecting China by land and sea across Asia and beyond to the Middle East, Europe and Africa.

(Writing by Tommy Wilkes; Editing by Nick Macfie)

China makes disrespect of national anthem a crime

China's President Xi Jinping arrives at a welcoming ceremony for Brazil's President Michel Temer (not pictured) at the Great Hall of the People in Beijing, China September 1, 2017.

By Christian Shepherd and Venus Wu

BEIJING/HONG KONG (Reuters) – Anyone who mocks China’s national anthem faces up to 15 days in police detention after parliament criminalized such acts in a new law on Friday that covers Hong Kong and Macau.

Since taking over as president, Chinese leader Xi Jinping has ushered in new legislation aimed at securing the country from threats both within and outside its borders, besides presiding over a sweeping crackdown on dissent and free speech.

Protecting “the dignity of the national anthem” will help “promote patriotism and nurture socialist core values”, says the new law passed by the National People’s Congress (NPC).

It governs when, where and how the anthem, the “March of the Volunteers”, can be played.

The law bans its use as background music and in advertisements, rules out playing it at funerals and on other “inappropriate occasions” and prescribes administrative detention for any “distorted” or “mocking” renditions.

Those attending public events must stand to attention and sing in a solemn manner when the anthem is played.

The new law brings treatment of the anthem into line with desecration of China’s national flag, or its emblem, which has been a criminal offense punishable by up to 15 days’ detention since the 1990s. Those laws also apply in Hong Kong and Macau.

Wu Zeng, the office head of the NPC’s national laws panel, confirmed that lawmakers had agreed the law should also apply to Hong Kong and Macau by being written into their constitutional provisions, the Basic Laws.

The law has fueled concern in Hong Kong, whose residents have grown nervous over China’s perceived encroachment of the city’s autonomy following such events as the disappearance of booksellers who later emerged in mainland Chinese custody.

Hong Kong lawyer and pro-democracy lawmaker Tanya Chan said she expected “a series of obstacles” when the former British colony, which returned to Chinese rule in 1997, adopts the law.

“The rights and freedoms protected under Hong Kong laws have come under challenge in recent years,” she said. “So it is right for people to be concerned.”

The city’s Justice Secretary, Rimsky Yuen, said he hoped “the intention of the national law would be upheld without affecting Hong Kong people’s basic rights and freedoms”.

In 2015, Hong Kong football fans booed the Chinese anthem during a World Cup qualifier, prompting a fine for the territory’s football association from world body FIFA.

Last month, Shanghai police detained three men for having “hurt patriotic feelings” by dressing up as Japanese soldiers and posing for photographs outside a memorial to China’s war with Japan, state media said.

 

(Reporting by Christian Shepherd in Beijing and Venus Wu in Hong Kong; Additional reporting by Philip Wen; Editing by Clarence Fernandez)