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Good morning. The US, UK and Australia yesterday mentioned they had been contemplating working with Japan by way of their Aukus safety pact aimed toward boosting deterrence towards China.
The Aukus nations’ defence ministers mentioned they’d take into account bringing Japan into Pillar II, the a part of the partnership that focuses on superior expertise, starting from synthetic intelligence and quantum computing to undersea capabilities and hypersonic weapons.
“Recognising Japan’s strengths and its shut bilateral defence partnerships with all three international locations, we’re contemplating co-operation with Japan on Aukus Pillar II superior functionality tasks,” the ministers mentioned in a joint assertion.
The FT reported over the weekend that the allies would search a technique to recognise Japan’s significance but additionally consider some reservations about its safety and knowledge safety programs.
The three Aukus allies didn’t invite Japan to affix what defence specialists had dubbed “Jaukus”. However the assertion underscores that the allies hope to work with Japan sooner or later as soon as Tokyo meets sure circumstances.
Demetri Sevastopulo experiences on Japan’s potential involvement within the safety group — and what to anticipate when Japanese Prime Minister Fumio Kishida visits Washington this week.
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Opinion: The perception in Tokyo is that Japan resides in harmful occasions, in a harmful area and must get nearer to America in response, writes Gideon Rachman.
Right here’s what else I’m preserving tabs on as we speak:
Nationwide elections in India start later this month which are more likely to see the BJP’s Narendra Modi returned for a 3rd time period. Be part of FT journalists and out of doors specialists as they talk about the implications for India and worldwide buyers. Register for the free on-line occasion right here.
5 extra high tales
1. Taiwan Semiconductor Manufacturing Co, the world’s largest chipmaker, has agreed to make its most superior merchandise in Arizona from 2028, a lift to the Biden administration’s efforts to convey semiconductor manufacturing on to dwelling soil. The Arizona facility can be TSMC’s second within the US. The chipmaker will even improve its complete funding within the US from $40bn to $65bn to construct a 3rd plant by 2030.
2. The US relationship with China is “on a stronger footing” than this time final yr, Treasury secretary Janet Yellen mentioned as she ended a six-day go to designed to ease tensions with Beijing. Yellen added that officers on either side would meet in working teams subsequent week in an effort to resolve US considerations about what they see as Chinese language industrial oversupply — a cost that Chinese language officers have flatly rejected.
3. China Building Financial institution has filed a winding-up petition in Hong Kong towards property developer Shimao in a uncommon case of a significant state-owned monetary establishment initiating offshore authorized motion towards a mainland Chinese language actual property firm. The petition from a distinguished state-owned financial institution alerts a brand new stage of impatience amongst collectors as a money crunch for property builders continues to worsen.
4. Elon Musk has predicted that new synthetic intelligence fashions will surpass human intelligence by the top of subsequent yr, as long as the provision of electrical energy and {hardware} can fulfill the calls for of the more and more highly effective expertise. Learn the remainder of Musk’s bullish interview on X with Nicolai Tangen, the chief govt of Norges Financial institution Funding Administration.
5. South Korea’s financial system must adapt urgently to rising competitors from China, the nation’s finance minister has warned. Choi Sang-mok informed the FT that South Korea had gone from being a beneficiary of Chinese language progress to an financial rival and that his nation wanted to diversify its export-led financial system.
The Huge Learn
Costs are rising, employees are demanding greater pay and the inventory market is booming. Is Japan lastly changing into a “regular” financial system? Japan’s central bankers and authorities officers say it’s at a historic inflection level, however the nation nonetheless has to repair deep-rooted issues.
We’re additionally studying . . .
Chart of the day
European defence contractors have warned that reliance on Chinese language cotton linters — utilized in gunpowder for ammunition — threatens their capacity to broaden output as western international locations race to bolster Ukraine’s overstretched army. “There’s a threat [that China could withhold linters for geopolitical reasons],” mentioned Armin Papperger, chief govt of Rheinmetall, a number one ammunition producer.
Take a break from the information
FT Journal has a brand new recommendation column, and its agony aunt/uncle is none apart from Robert Shrimsley. In a self-referential first instalment, he discusses the favored Reddit staple — “Am I the asshole?” — and affords a definitive reply to the query (spoiler: sure, you might be).
Extra contributions from Tee Zhuo and Gordon Smith
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