Japan-China air zone rift deepens; China to place limits on interbank lending; Scottish government publishes blueprint for achieving independence; France to send troops to Central African Republic; and more
Top of the Agenda: China, Japan Air Zone Rift Continues
Japan urged airlines not to follow China's new air defense zone rules, which Beijing unilaterally created over disputed East China Sea waters this weekend, but many carriers, including Japanese ones, are informing China of their flight plans (BBC). The Pentagon said it won't comply with China's demands for aircraft to report flight plans or identify themselves, adding that U.S. pilots are able to defend themselves (Bloomberg). Meanwhile, China sent its sole aircraft carrier on a training mission to the South China Sea where a maritime dispute with the Philippines and other neighbors has caused tensions (Reuters).
Analysis
"Keeping militaries apart and alert to the consequences of miscalculation is the biggest challenge for U.S., Japanese, and Chinese policymakers. This new ADIZ announcement only enhances risk and deepens suspicions. Cooperation in creating viable risk reduction measures ought to be the highest priority," writes CFR Senior Fellow Sheila Smith.
"By trying to use force to seize control over the Senkakus' environs, Beijing edges closer to naked aggression. If its goal is to get Tokyo to talk about the status of the islands and reach a peaceful settlement, its brinksmanship has put that possibility further out of reach," the Wall Street Journal writes in an editorial.
"Mr. Abe has pursued a disturbingly nationalistic foreign policy dominated by overheated words and an aggressive posture toward China that can be dangerous, for Japan and the United States. The Obama administration must find a way to defend Japan's interest without emboldening the Abe government to take foolish risks that would increase tensions with China. Along with its predecessors, the administration has not always been clear or consistent in its messages and that needs to change," the New York Times writes in an editorial.
PACIFIC RIM
China to Curb Interbank Lending
Regulators in China are expected to place limits on interbank loans, which will slow down the growth of credit in the Chinese financial system. Exposure to these off-balance sheet loans by mid-tier banks has tripled to 21 percent of assets since 2008 (FT).
ELSEWHERE:
Scottish government published blueprint for achieving independence
France to send troops to Central African Republic
This is an excerpt of the CFR.org Daily News Brief. The full version is available on CFR.org.