Japanese
Rock, Chinese Mushroom, America in the Cold
by
Mike (in Tokyo) Rogers
by Mike (in Tokyo) Rogers
With the sounds
of sabers rattling, Japan and China soon be at war over a group
of islands between Okinawa and Taiwan; or so we are told by the
American controlled mass media. These islands are called Okinotorishima
and Senkaku islands. According to the news stories, the confrontation
between Japan and China is quickly boiling over and it is just a
matter of time before the navies set sail and the guns start blazing
over control of these islands. We are told that the Japanese and
the Chinese hate each other so there’s just no stopping an emerging
Chinese juggernaut from exacting revenge on a hapless Japanese weak-sister
for past war deeds. So we are told…

Senkaku
– islands or just rocks?
Considering
the fact that China began complaining about Japanese control over
these islands in 1969 – now over 35 years ago – It’s a safe bet
that any sort of military confrontation between Japan and China,
for any reason, is extremely unlikely. Most probably a third Sino-Japanese
war is an impossibility anytime in the foreseeable future. The economic
relationship between Japan and China is too deep and too mutually
beneficial to both countries for the business leaders of either
of those nations to allow politicians to get in the way. If the
free market is allowed to function – without government interference
– as it looks like it will be – war between Japan and China is nothing
short of a wild dream by the current US administration and its anti-China
neo-con allies. The only way Japan and China could ever come into
a confrontation is if the governments of those two nations allow
the US government to interfere and somehow convince them to throw
out their extremely mutually beneficial economic relationship. Considering
how much power business leaders in these two nations now wield,
in spite of communist rule in mainland China, this just isn’t going
to happen.
Japan
and China are now each other’s #2 trading partner. It is inconceivable
that either country would allow this trade relationship to sour
over some small islands (China calls them "rocks") or
over Taiwan regardless of any agreements the United States
may have with the government of Taiwan. Japan may say they will
help defend Taiwan from Chinese attack, but saying they will and
actually sending in the military to do so are two very different
things. It also defies logic to imagine that Japan would go to war
to defend Taiwan – a former colony of the Imperial Japanese Empire
– against China after what happened between those two nations in
World War II. Japan also needs a sympathetic China to rein in a
nuclear-armed North Korea. Japan will not go to war against China
for any reason.
The island
dispute between Japan and China is almost a modern day Hegelian
tragedy of comic proportions. In Japanese the islands are called,
Senkaku Islands; in Chinese they are named Diaoyutai Islands. The
dispute over these islands began in 1969, but their modern recorded
history can be traced back to 1885. In that year, Japan began a
survey of the islands and found them to be uninhabited so they incorporated
the islands under Japanese control. US involvement in this matter
began officially in 1895. After being defeated in the first Sino-Japanese
war of 189495, China surrendered and the Treaty of Shimonoseki
was signed between the two belligerent nations. This treaty was
drafted by John A. Foster, former American Secretary of State, and
advisor to the Qing Dynasty. From the Chinese point of view, the
Treaty of Shimonoseki gave Taiwan and all other surrounding islands
to Japan.
But – in a
direct rebuff to China – Japan claims that the islands under the
current dispute were not involved in the Treaty of Shimonoseki at
all. Japan insists that these islands belonged to Japan since before
the war of 1894-95. Japan also has the actions of the United States
to back up its claims. After World War II ended, the United States
took control of Okinawa and the entire Ryukyu Island chain from
Japan. The uninhabited islands in question fell under US jurisdiction
and were used for bombing practice by the US airforce. As a defeated
nation, Japan made no protests over the use of the islands by the
US military. China also made no protest of this at that time – possibly
because the internationally recognized government of China at that
time was an ally of the United States in the Second World War; and,
quite probably, they also had their hands full in a civil war of
their own against Mao Zedong and the Chinese communists. The communists
in China won the civil war in 1949; Okinawa reverted back to Japan
in 1971; and as was stated by agreement, along with the return of
Okinawa, Japan received the Senkaku Islands. When possible oil reserves
were discovered in the area near the islands in 1969 both Taiwan
and China began to protest Japanese use of the islands. Global Security.org
has a very complete assessment of the situation on its website.
It says:
These islands
were neither part of Taiwan nor part of the Pescadores Islands
which were ceded to Japan from the Qing Dynasty of China in accordance
with Article II of the Treaty of Shimonoseki which came into effect
in May of 1895. Accordingly, the Senkaku Islands are not included
in the territory which Japan renounced under Article II of the
San Francisco Peace Treaty.
It must be
pointed out here that, in spite of what is falsely reported in the
mass media and quite contrary to popular belief, China and Japan
are not in a quarrel over ownership of these islands. In
fact, China does not dispute Japanese ownership of the islands at
all. Global Security.org in that same article continues:
China argues
that Okinotorishima island, the southernmost island in the Japanese
archipelago, is merely a rock, not an island, in an attempt to
nullify Japan's claim of an exclusive economic zone around the
small island, which is under Tokyo jurisdiction. The Chinese said
they had "differences of opinion," citing Okinotorishima and the
Senkaku Islands. While Beijing acknowledges that Okinotorishima
belongs to Japan, it stressed that it did not fall under the classification
of an island as defined by the UN
Convention on the Law of the Sea, but is instead a rock, which
cannot be used to designate an exclusive economic zone, as the
Japanese government has done.
Japan feels
it needs these islands as she has a long historical claim to them
and needs the fishing rights to feed her people. China feels that
these islands are not islands, but are rocks, so Japan cannot claim
them in an economic zone; China needs freedom of movement near these
"rocks" as they are the ocean gate-way to Taiwan in case
there ever is any trouble with their "run-away province."
The discussion between the two nations is tied up in semantics.
Is an atoll an island or is it simply rocks? If the politicians
of either country were allowed to make Carte Blanche decisions about
this case, there could conceivably be trouble. But, if the businessmen
of Japan and China are allowed to take care of this discussion,
it will be economically beneficial for everyone – excepting the
United States of course. The foreign policy of the current US government
is setting up the United States to be left out when it comes to
affairs concerning China. The current US administration wants cool
relations between the two Asian giants in order to prop up the failing
dollar, sputtering economic health, and its waning empire. The Japanese
are not stupid; they can see – as much as just about anyone else
– excepting the Bush administration – where the money is going to
be in the very near future. Japan will side with her Asian neighbor
when the going gets rough.
It is difficult
to imagine that Japanese and Chinese businessmen would allow their
potential profits and relations with their #2 trading partner to
be damaged over an island, some rocks, or an atoll; despite the
constant cries that the sky is falling and the bombs will be going
off at any moment that we hear constantly from the American mass
media.
For many years,
the western mass media has told us horror stories about a possible
military conflict between Japan and China. Sometimes even the domestic
media of those countries joined in and obliged. But, luckily, cooler
heads have prevailed. Considering their long history and future
mutually beneficial economic opportunities, it is preposterous to
imagine a third Sino-Japanese war – in spite of current communist
Chinese government on again, off again rhetoric.
An excellent
case in point was what BusinessWeek Magazine in July of 2001
called, "China
vs. Japan – The Phony Trade War."
From all
appearances, then, the trade battle is causing irreparable harm
to the two giants' relationship. But appearances can be deceiving.
In fact, the two economies already are deeply integrated – and
are growing more so every day. And nothing that has happened is
likely to change that. "In spite of diplomatic problems from time
to time," says Japan Finance Vice-Minister Haruhiko Kuroda, "we
see a close economic relationship between the two countries."
Indeed, the brouhaha over produce and straw mats shows just how
reliant the Japanese have become on China to fill their sukiyaki
hotpots and also furnish their homes.
The numbers bear this out. Bilateral trade hit an all-time high
of $85.73 billion in 2000 and, according to the Japan External
Trade Organization, is on track to surpass the $100 billion mark
this year (chart). Last year, Japan's trade deficit with China
totaled $24.88 billion – making China one of the few non-oil-producing
nations to sell more to Japan than it buys. The trade spat is,
in effect, a side show to the real story: that Japan already is
China's biggest trading partner, while China ranks as Japan's
No. 2 after the U.S. This is a rapidly growing relationship that
will alter the dynamics not just of Asia, but the entire world.
At that time,
Japan and China were having a tiff over onions, leeks, straw, and
mushrooms. The Japanese government got smart and backed off interfering,
thereby allowing business and the free market to take over, and
now Chinese vegetables can be bought at any supermarket in Japan
and the benefactors are the Japanese consumer and the Chinese farmers.
In part, because of this, Japanese and Chinese trade has boomed
to a record $200 billion US dollars in 2005. Expect another double-digit
increase this year. Japan is gobbling up Chinese goods, China is
inhaling Japanese investments. The USA is sitting on the sidelines
watching the money float by because of an ill-considered and antagonistic
foreign policy towards China by the Bush government and destructive
attacks on retailers, like Wal-Mart, that sell Chinese goods
in America. This American-style of anti-free trade tirade and attitude
that people in the United States often show is unheard of in Japan.
The case of
the booming trade in mushrooms is a very interesting example and
is the one that, whether intended that way originally or not, will
be the model for future Japanese and Chinese economic cooperation.
Any person who is a gourmet, or just knows good food, will tell
you that there is a world of difference in, say, rice grown in California
and rice grown in Japan. The same can be said for mushrooms or many
other foodstuffs. Back in the days when Japan and the United States
were having a trade row over rice, I heard many very odd, ill-informed,
and economically unsound opinions on the matter from both Americans
and Japanese. The California rice farmers claimed that California
rice tasted just as good as Japanese rice. That’s not true. It does
not. That is an ignorant statement to make. For use in Japanese
gourmet food, Japanese rice tastes much better than California rice.
That is to be expected. Of course Japanese rice and California rice
are different. Think about it; Japan has a history of cultivating
rice that goes back over a 1000 years; the climate in Japan is totally
different than that of Southern California; Japan is one of the
few places in the entire world that enjoys rain that consists of
naturally soft water; and the biggest kicker of all, Japanese rice
had better taste better than California rice because it costs anywhere
from 4 to 10 times more per kilogram.
I suppose it
would be also obvious to expect that French wine should be better
than California wine for the very same reasons; history, vast experience
in cultivation, and a higher price.
That being
said, I couldn’t understand the Japanese rice farmers’ point of
view either; they wanted the Japanese government to block all imports
of rice. One farmer told me that, "Japanese people don’t like
foreign rice." I understood what he meant to say and I agreed
with him. But I also pointed out that the consumer should be allowed
to decide. Of course I was right about that. But it was a mistake
telling that to a Japanese rice farmer. I got myself into a spot
where I was being harshly criticized. I should have known better.
Why argue with some old guy who has probably never even tasted foreign-produced
rice or long grain rice in his life, nor does he even want to try?
Of course, for Japanese food, even top quality California rice does
not taste as good as top quality Japanese rice. But if someone wants
to eat cheaper California rice, then that should be their choice.
California rice shipments into Japan would not hurt Japanese rice
producers who were making top quality rice. The Japanese consumer
would still buy the best rice when they went out to eat sushi, or
when serving some other traditional Japanese cuisine for guests.
Convenience stores that sold cheap rice balls for a dollar could
conceivably profit by using 100% California rice or a mix of domestically
grown and imported rice in their product.
Japanese sticky
rice is terrible for things like Mexican food, Thai food, Indian
food, etc. Japan doesn’t need to block imports of rice. If the Japanese
consumer didn’t buy the imported rice, then let the importers go
bankrupt. No problem. The consumers in a free market should be allowed
to decide.
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About
$750 dollars worth of Japanese produced Matsutake mushrooms |
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Perhaps the
Japanese government learned something from all those years of trade
rows with a self-centered and hypocritical United States.
Allow me to
return to the example of the mushrooms to reinforce my point: This
last New Year’s my mother-in-law made a delicious traditional style
Japanese soup. She asked that I go to the store to buy mushrooms.
Not being particularly fond of mushrooms, I just picked up a pack
of mushrooms that looked good. That was a mistake. The package I
grabbed was mushrooms imported from China. She wanted domestically
produced mushrooms. Japanese produced Matsutake Mushrooms sell for
anywhere between $100 to $250 dollars each. Chinese produced Matsutake
sell for about one-forth that cost. A gourmet will tell you that
the mushrooms produced in Japan have a slightly different taste,
texture, and aroma than those produced in China. My mother in law
was a professional dietician, she can tell the difference; I cannot.
When it comes to special meals, she’ll insist on the domestically
produced mushrooms. Since I cannot even discern the difference,
I will opt for the cheaper mushrooms every time. The result is that
the Japanese mushroom producers are not hurt, the Chinese farmers
profit, and the Japanese consumer gets the freedom of choice. When
the Japanese and Chinese are practical, as opposed to idealistic,
in their dealings with each other, everyone wins. The current US
government should sit up and take notice.
This
is how the free market is supposed to work. I believe Japan knows
all about this through its experience over these past 4-plus decades.
China is showing that it is an excellent student and is also learning
very fast. There’s no way Japan or China will risk the relationship
they have with each other. I don’t care if we are talking about
a rock in the ocean the size of a baseball or a rock the size of
Taiwan. They certainly won’t risk it because the Japanese prime
minister goes to a
church twice a year. The economic relationship between Japan
and China will continue to grow. Japan needs Chinese goods; China
needs Japanese technology, investment, and know-how. The histories
of these two neighbors are so intertwined that they cannot be separated.
Sure, as with all families, the siblings will sometimes fight and
argue, but eventually they will stand together.
Asians
may appreciate someone who speaks softly while carrying a big stick.
But they definitely do not appreciate someone who is loud, violently
unfriendly, or aggressive. The Japanese and Chinese have had centuries
together learning how to bow and be humble; there are ancient religious,
cultural, and language ties. When the fireworks do go off in Tokyo
and Beijing they will be in celebration. Fortunately, Japan and
China will profit. Unfortunately for America, the policies of the
Bush government with their anti-China neo-cons, will mean that the
USA will be left out in the cold.
January
30, 2006
Mike
(in Tokyo) Rogers [send
him mail] was born and raised in the USA and moved to Japan
in 1984. He is the president of a mass-media production company
and also runs a talent agency in Japan. His first book, Schizophrenic
in Japan, is now on sale.
Copyright
© 2006 LewRockwell.com
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(in Tokyo) Rogers Archives
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