Japan Asks China To Lower Military Spending

Japan’s prime minister has called on China to scale back its military spending on a day when he compared the mounting tension between Asia’s two biggest economies with the rivalry between Britain and Germany before the first world war.

Shinzo Abe used a keynote address to the World Economic Forum in Davos to hail a new dawn for his country and said the fruits of growth in Asia should be used for innovation and investment in human capital rather than weapons.

Earlier, Abe said the frayed relationship between Tokyo and Beijing was similar to the situation in Europe pre-1914. He said a conflict between the two countries would be disastrous, but refused to rule it out. “Trust, not tension, is crucial for peace and prosperity in Asia, and in the rest of the world,” he said. “This can only be achieved through dialogue and the rule of law, and not through force or coercion.

“We must restrain military expansion in Asia, which could otherwise go unchecked. We should create a mechanism for crisis management as well as a communication channel between our armed forces.”

via The Guardian

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza