Asia

FTChinese.com editor-in-chief Lifen Zhang says the focus is not just on China’s economic power but its foreign relations. He also says Chinese business remains cautious about spending its cash piles.

By Martin Arnold, Banking Editor, in Davos

The first of many debates about China at Davos this year made an unexpectedly hostile debut this morning as Zhang Xin, head of Beijing’s biggest property developer Soho, was put on the spot over the country’s crackdown on corruption.

“Your industry is one of the most corrupt in China,” said moderator Andrew Browne, China editor of the Wall Street Journal, as he asked Ms Zhang to share her views on the issue. Read more

Geoff Dyer

It’s back to the pivot. With the Iran deal half-done, the Obama
administration is now starting to shift its attention to Asia. After national
security adviser Susan Rice gave her first speech on the subject last week,
vice president Joe Biden will visit north Asia from Sunday, preparing the
ground for a presidential swing through the region in the spring.

Biden will fly straight into the centre of a new political storm – literally,
in this case – after China declared on Saturday that a large part of the
East China Sea was its own air defence zone
. The new Chinese rules
oblige aircraft of other countries to inform Beijing of their flight plans
through the area, or potentially face “defensive emergency measures”. Read more

By Richard McGregor

When the US and Australia hold their annual top-level security consultations in Washington on Wednesday, they will doubtless exchange the usual bromides about the enduring value and strength of their alliance.

But the Australia defence and foreign ministers might also want to vent a little as well to their counterparts about the diplomatic mess that the former US intelligence contractor, Edward Snowden, has landed them in.

The revelation that the National Security Agency, America’s eavesdropping body, had bugged the mobile phone of German’s chancellor, Angela Merkel, provoked a crisis in Washington’s ties with Berlin. Mr Snowden has given Australia its own “Merkel moment” this week, with the publication of leaked documents detailing how Australia’s Defence Signals Directorate bugged the phones of top Indonesian leaders. Read more

By Gideon Rachman
Foreign commentators and local bloggers regularly predict that China is heading for an economic and political crisis. But the country’s leaders are in strikingly confident mood. They believe that China can keep growing at more than 7 per cent a year for at least another decade. That would mean the country’s economy – already the second-largest in the world – would double in size. And, depending on the assumptions you make about US growth and exchange rates, it would probably mean that China becomes the world’s largest economy by 2020.

Gideon Rachman

Barack Obama with Mahmoud Abbas at the UN (JEWEL SAMAD/AFP/Getty Image)

“Let there be no doubt: in the Asia-Pacific of the 21st century, the United States of America is all in”, declared Barack Obama in a speech to the Australian parliament in November 2011. But Asians might be excused for having a few doubts about that now that Obama has cancelled half of his upcoming trip to Asia – so that he can stay at home and concentrate on his budget fight with Congress. For the moment, the president is still planning to travel to the Apec summit in Bali. But even that promise is under review, depending on what’s happening in Washington. It would be acutely embarrassing if Obama cancelled the trip to Apec, since it would be the third time he has failed to show up for a scheduled trip to Indonesia. Previous efforts to visit the country that he lived in as a child were cancelled – in March 2010 and then again in June of that year – because of an argument, first over health-care and then over BP. Read more

It’s no secret that the US is at the centre of global trade. But how is what it trades with the world changing? The US International Trade Commission, the independent government agency which investigates anti-dumping cases in the US and also acts as a trade data clearinghouse, this week put out its annual “Shifts in US Merchandise” report. Here’s four things in the report worth thinking about:

1. Americans love their cars and their iPhones. They were the biggest contributors to the $10bn widening of the US trade deficit in 2012. Read more

By Gideon Rachman
Japan’s public diplomacy hovers between the ludicrous and the sinister. In recent months, the country has specialised in foreign policy gaffes that seem designed to give maximum offence to its Asian neighbours while causing maximum embarrassment to its western allies.

By Gideon Rachman

The world is so busy cheering on the emergence of democracy in Myanmar that it is in danger of averting its eyes from the assault on democracy in another Asian state – Sri Lanka.

David Pilling

A recent cartoon in the China Daily depicted the Statue of Liberty holding a listening device instead of a torch and a tape-recorder in place of a legal tablet. The Global Times, in both its Chinese and English editions, noted what it said was US “aggressiveness in cyberspace” and its “hypocrisy in saying one thing and doing another” – a reference to Washington’s demands that China stop its nefarious hacking campaign. The Global Times even suggested Beijing keep Edward Snowden, the former intelligence contractor who leaked information about US domestic and international information-gathering activities, and milk him for all the information he’s worth. “This concerns China’s national interest,” it said. Read more