• Knave Dave
    05/23/2016 - 18:16
    This past Thursday marked the one-year anniversary of the US stock market’s death when stocks saw their last high. Market bulls have spent a year looking like the walking dead. They’ve...

Chinese Military On "High Alert" After It Scrambles Fighter Jets To "Counter" Japanese Jets

Tyler Durden's picture


The one thing that most seem to forget in the epic 30 year old story (which has a very sad ending) that is the Japanese floundering economy, is that while the new Abe government may and will likely try everything to crush the Yen (which is already nearing the 90 USDJPY target, however briefly, before it resumes its grind lower once it dawns on investors what it will mean for the Japanese Treasury when bond yields soar), the main reason it has posted three massive monthly trade deficits in a row has nothing to do with its currency, and everything to do with what is now a permanent boycott of Japanese exports by China.

The paradox is that Abe, a well-known nationalist, may well crush the Yen but he will only aggravate Chinese tensions (thus hurting Japanese exports, GDP, and the current account even more) which recently approached boiling point on several occasions over the past few months, most notably in the spat over who owns the Senkaku/Diaoyu islands, and soon over other symbols of nationalist pride. And with the escalations coming faster and more frequent with each passing day, there is little room for optimism that despite all Japan is doing that its economy stands any hope of recovery in 2013 (or later).

In fact, the latest escalation in the seemingly neverending saga over a strategically located rock in the East China Sea, came hours ago, when Xinhua reported that Beijing has scrambled two J-10 jets to counter "Japanese military aircraft disrupting the routine patrols of Chinese administrative aircraft."

From Xinhua:

At a press conference, an official with the ministry confirmed that China sent two J-10 fighters to the East China Sea after a Y-8 aircraft was closely followed by two Japanese F-15 fighters as it patrolled the southwest airspace of the East China Sea oil platform on Thursday.


The two J-10 fighters were sent to monitor the Japanese fighter jets tailing the Y-8 as well as another Japanese reconnaissance plane spotted in the same airspace, the official said.


Furthermore, the official said Japanese military aircraft have been increasingly active in closely scouting Chinese aircraft. The activity zone of Japanese military aircraft has also expanded recently, which is the root cause of security disputes concerning territorial waters and airspace between the two countries.


The Chinese military will be on high alert and China will resolutely protect the security of its air defense force and uphold its legitimate rights, the official said.

Suddenly very real concerns over a flare up in military escalations aside, it doesn't look like anyone is ready to back down in what is becoming an ever more heated and rancorous expression of nationalist pride, and it certainly does not appear likely that China will lift its "blockade" on Japanese imports any time soon.

As to how China continues to see what is going on in Japan, we go to another Op-Ed from China Daily printed earlier today, titled "Unwise foreign policy turns Japan into own enemy" and this time even the Chinese propaganda is 100% accurate:

The Japanese economy, under the burden of years of deflation and an aging population, has been the "Patient of Asia" for the last two decades.


The Japanese people can cite many reasons for their economic malaise, from bad government policies that led to the forming and bursting of a giant economic bubble in late 1980s and early 1990s to cumbersome mega companies that have been losing money and shedding jobs due to increasing global competition.


More recently, the Japanese economy has suffered another blow due to a bitter row with China, a crucial trade and investment partner, ignited by Tokyo's repeated provocations over the Diaoyu Islands, an integral part of Chinese territory.


Yet new Japanese Prime Minister Shinzo Abe turned the facts upside down when he claimed Friday that China has deliberately targeted Japanese companies as part of a strategy to confront Japan over the territorial dispute.


It is true that economic ties between China and Japan have chilled considerably since former Prime Minister Yoshihiko Noda's cabinet decided to "buy" part of the Diaoyu Islands in September despite strong Chinese opposition.


The outcome is nothing but natural, as good economic relations are always based on sound political ties. It is naive to believe that Japan can maintain strong trade and investment ties with China while repeatedly provoking China on critical issues.


In addition, the pinch felt by Japanese companies results largely from an across-the-board boycott of Japanese goods spontaneously staged by Chinese consumers who felt betrayed by the bellicose Japanese government. The Chinese government has nothing to do with this.


Japanese politicians, including Abe, have only themselves to blame, because their brinkmanship is the root cause of the deterioration of China-Japan economic ties.


They have also been stoking fears about the so-called "China threat" in the broader Asia-Pacific region and trying to build a coalition of countries against China.


For many in China, Abe's latest remarks are just part of an attempt by the Japanese government to depict China as the villain and gain an upper hand in the territorial dispute.


But Tokyo is doomed to lose the gamble, as more and more countries have come to realize that China acts responsibly in the international arena and its development is a real blessing for the whole world.


Meanwhile, Japan has raised concerns in capitals worldwide that its increasingly hawkish policy toward China will further escalate the situation and pose a serious risk to regional peace and stability.


For Japan, its fragile economy is in urgent need of the opportunities a sound China-Japan relationship brings, but Japan's unwise foreign policy has made these opportunities harder to come by.


Thus it is of pressing importance that Abe immediately arrest his country's self-destructive tendency and put its foreign relations and economic recovery back on track so as not to waste his second chance at the top.

Bottom line: don't bet so fast on anything remotely resembling inflation or GDP growth in Japan yet. In fact, it may be time to take advantatge of the recent euphoria and to double down on red.

Your rating: None

- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Fri, 01/11/2013 - 12:14 | 3144334 mcl2177
mcl2177's picture

Is this the war Kyle Bass was talking about in his presentation last December.

Fri, 01/11/2013 - 12:53 | 3144454 S5936
S5936's picture

BINGO !!! ...Earl

Fri, 01/11/2013 - 12:19 | 3144342 rwe2late
rwe2late's picture


the Asian "pivot" is to have (still-occupied) Japan as the attack dog in the Pacific.

The US has long been pressuring Japan to drop Japan's anti-war Constitution and re-arm (with lots of US made weaponry).

What could go wrong?


Fri, 01/11/2013 - 12:16 | 3144343 yogibear
yogibear's picture

But, but, but China is our friend acording to Wall Street.

Of course Wall Street would sell their mother to a pimp for the right price.

Fri, 01/11/2013 - 13:12 | 3144535 knukles
knukles's picture


Take a side!

Make a fucking decision
No equivocating allowed.

Fri, 01/11/2013 - 12:16 | 3144345 NoDebt
NoDebt's picture

Highest debt/GDP of any major world economy, nation full of old men, and Japan goes and pokes a big bear with a short stick? 

Goose, this is Maverick.... I'm punchin' out!

Fri, 01/11/2013 - 16:33 | 3145355 Matt
Matt's picture

Insert some wise saying about people with nothing left to lose ...

Fri, 01/11/2013 - 12:17 | 3144349 lolmao500
lolmao500's picture

While this...


China’s Inflation Accelerates as Chill Boosts Food Prices

I'm sure all a coincidence...

Fri, 01/11/2013 - 12:17 | 3144350 zendome
zendome's picture

Rattle, meet saber.

Fri, 01/11/2013 - 12:18 | 3144355 booboo
booboo's picture

Gentlemen, place your bets, Sushi or Kentucky Fried Something or Other.

Fri, 01/11/2013 - 12:31 | 3144399 Mr. Hudson
Mr. Hudson's picture

It's "karate vs. kung-fu".

Fri, 01/11/2013 - 14:04 | 3144602 djcando
djcando's picture

I think this puts the whole issue into perspective   http://www.youtube.com/watch?v=gWXINqfcX0o&feature=related

Fri, 01/11/2013 - 12:20 | 3144363 Sandmann
Sandmann's picture

So US jets flown by Japanese get tried out against Russian jets modified by Chinese.......at least unlike the Korean War the Chinese fly their own aircraft this time and don't use Soviet pilots

Fri, 01/11/2013 - 13:29 | 3144613 trav777
trav777's picture

if you think that's a russian-made jet copy in the pic or that the J10 is, then you are both a) totally ignorant of jets and b) too stupid to do enough research to prevent (a)

Fri, 01/11/2013 - 13:46 | 3144687 optimator
optimator's picture

But notice how the J-10 looks almost like a copy of the Lavi (Lion) we engineered for Israel?  I use a screen wallpaper of the J-20, if looks could kill!

Fri, 01/11/2013 - 16:07 | 3145248 flapdoodle
flapdoodle's picture

More like Russian engines covered with Chinese fuselages. China makes crappy engines (whether jet, motorcycle or SUV) - any serious Chinese plane sports Russian-made engines.

I don't know what kind of small turbines they put in drones but building those is an art as well, which I doubt the Chinese have mastered.

Until they do, not to worry. After they do, well, worry.

Fri, 01/11/2013 - 17:08 | 3145464 Colonial Intent
Colonial Intent's picture

bet they still nick the electronics out of the cockpit tho,

Fri, 01/11/2013 - 12:20 | 3144364 yogibear
yogibear's picture

The Chinese are so close to the US that they have supersonic missles designed to successfully destroy US aircraft carriers.

Wall Street build up China and provided funding for their military.

Fri, 01/11/2013 - 13:14 | 3144541 knukles
knukles's picture

Oh, just fond memories of the Clinton technology transfers to the Chinks in exchange for campaign contributions...


(what the fuck, it's all Bush's fault, anyway)

Fri, 01/11/2013 - 13:51 | 3144711 shovelhead
shovelhead's picture

Huang way money transfers.

"You can't go wrong with Huang".

Fri, 01/11/2013 - 12:23 | 3144379 the 300000000th...
the 300000000th percent's picture


Fri, 01/11/2013 - 12:25 | 3144382 Mi Naem
Mi Naem's picture

About the current financial market circus and fiat currency scams, Kyle Bass said it best: "Historically, we all know how this ends - in war."  (slight paraphrase) 


Fri, 01/11/2013 - 12:25 | 3144384 americanspirit
americanspirit's picture

As mentioned elsewhere there is plenty of credible evidence that Japan has an arsenal of tactical and strategic nukes almost fully assembled - just below the treaty threshold that says they can't have nukes. But all it will take is a few hours of final assembly and they will be fully armed with nukes. Banzai!

And just about now would be a great time for China's BFF North Korea to carry out another series of long range ballistic missile tests, don't cha think?

Fri, 01/11/2013 - 12:27 | 3144388 Overfed
Overfed's picture

Like someone else pointed out; doomsday weapons aren't much of a deterrent if they are kept secret.

Fri, 01/11/2013 - 16:42 | 3145389 Matt
Matt's picture

Well, there is secret as in no one knows, and there is secret, like Israel's nukes, which is a known secret.

Fri, 01/11/2013 - 13:10 | 3144527 lolmao500
lolmao500's picture

Or a nuke test, for the lulz.

Fri, 01/11/2013 - 12:28 | 3144390 Mr. Hudson
Mr. Hudson's picture

Interesting dilemma building up here. If Japan and China go at it, America has an obligation to fight and defend Japan. We will then be at war with China. But Israel does not want us tangled up in conflict in Asia because we are supposed to go to war with Iran. And, we have the threat of war building between two nuclear powers: Pakistan and India. India is our ally, and we give billions in aid to Pakistan. What will America do?

“Oh what a tangled web we weave,
When first we practice to deceive!”

Fri, 01/11/2013 - 12:49 | 3144439 francis_sawyer
francis_sawyer's picture

Get all your pieces built up on YAKUSTK & invade IRKUSTK... Go for it Ghengis Khan!

Fri, 01/11/2013 - 16:59 | 3145436 Matt
Matt's picture

Iran and China are on the same side, so open up two fronts. Since Iraq and Afghanistan are already there, those fronts can just be merged into a single front, and the Pacific becomes the second front. That is the core of American doctrine, to be able to fight two fronts. 

Fri, 01/11/2013 - 13:11 | 3144530 lolmao500
lolmao500's picture

I know.. a draft and martial law!

Fri, 01/11/2013 - 13:15 | 3144546 knukles
knukles's picture

And ship all the confiscated guns to Mexico

Fri, 01/11/2013 - 21:11 | 3146078 Rustysilver
Rustysilver's picture

M.r Hudson

Russians have and are selling Su37 fighters and helicopters to India. Also Putin signed a long term cooperation with India.

Pakis are our friends, as are Indian, Chinese, and Japanese. Everything is going to be fine.

Fri, 01/11/2013 - 12:36 | 3144408 monad
monad's picture

Just give us more money and we will be able top avert this bogus crisis. Give us money bitchez!

Fri, 01/11/2013 - 12:49 | 3144441 AnAnonymous
AnAnonymous's picture

that China acts responsibly in the international arena and its development is a real blessing for the whole world.

The 'americans' are in the house.

What a good 'american' speech.

The rise of 'americans' in China will bring what it has elsewhere...

Fri, 01/11/2013 - 13:44 | 3144680 ceilidh_trail
ceilidh_trail's picture

Where's AKAK when I need him? Ananon has popped up at least flee times today! Easy pickens! cHinEse nationalism at it's best. cHinEse military exist to steal property of others. Only problem is, there's a chink in their armor! African nations will soon realize that cHina only there to steal resources and take. cHina does nothing out of altruism, only greed. Altruism not even a word in cHinEse dictionary.

Fri, 01/11/2013 - 17:06 | 3145459 Colonial Intent
Colonial Intent's picture


"A nation has no permanent enemies and no permanent friends, only permanent interests."   Winston Churchill


Fri, 01/11/2013 - 13:54 | 3144728 shovelhead
shovelhead's picture

Shih-tzu Big Macs?

Fri, 01/11/2013 - 14:20 | 3144845 TheFourthStooge-ing
TheFourthStooge-ing's picture

AnAnonymous said:

The rise of 'americans' in China will bring what it has elsewhere...

Indoor plumbing and flush toilets?

Fri, 01/11/2013 - 12:50 | 3144444 lolmao500
lolmao500's picture

China has been training for war in the last few months...


China Trains To Surge

China has begun training its air force squadrons to carry out high intensity operations on airports or air bases with two runways and supporting multiple types of aircraft while doing so. This is a critical capability for “surge” operations, in which aircraft carry out the maximum number of sorties for a day or so. This is the kind of capability that gives Western air forces a big advantage.

When a squadron goes into surge mode it can mean round the clock operations (as F-16s can operate day and night because of their night vision sensors) that can result in individual aircraft flying half a dozen or more sorties.

China has also been making strides in recruiting higher quality recruits to be maintainers and upgrading logistics systems so that the maintainers don’t run short of fuel, spare parts, and other essential supplies. China also has lots of modern aircraft that can surge and carry out the kind of surge efforts Western air forces train for and carry out in wartime. Most Western aircraft can fly three or more sorties per day for two or three days and one or two per day indefinitely, as long as the spare parts and ground crews hold out. Western air forces practice high sortie surge tactics far more than less affluent nations. China now has more money, and they are spending it to move maintainers from several squadrons to a base and have them practice generating a lot of sorties quickly on dual runway airports. That’s how you win wars.

Fri, 01/11/2013 - 13:02 | 3144489 SWRichmond
SWRichmond's picture

Battle of Britain.

Sat, 01/12/2013 - 00:38 | 3146507 mjcOH1
mjcOH1's picture

"China has been training for war in the last few months..."


Luckily for them, every other military on the planet is training for peace.

Fri, 01/11/2013 - 13:08 | 3144513 reader2010
reader2010's picture

China is the ultimate papar tigher. If you take a close look at their military structure, you won't be surpised to find out that rampant corruption has deeply infected to its core. 

Fri, 01/11/2013 - 13:15 | 3144548 lolmao500
lolmao500's picture

Ya think? The whole Chinese society is corrupt to the bone. 5000 years of tyranny will do that...

Still corruption doesn't mean their jets can't fly or their bullets kill you or that their nukes won't go off.

Fri, 01/11/2013 - 13:39 | 3144662 AnAnonymous
AnAnonymous's picture

And the shift to 'americanism' will solve corruption in just one second as behaviour that were perceived as corrupted the second before will have turned the normalcy.

The 'american' miracle.

Sat, 01/12/2013 - 00:50 | 3146530 mjcOH1
mjcOH1's picture

"And the shift to 'americanism' will solve corruption in just one second as behaviour that were perceived as corrupted the second before will have turned the normalcy."

Well, no.   You'd need the rule of law and a century or more of applying it first.   Making it up as you go isn't as effective, since you can't even define corruption at that point.

Sat, 01/12/2013 - 07:06 | 3146782 Zwelgje
Zwelgje's picture

Ever heard of the $400 toilet seats at the Pentagon?

Sat, 01/12/2013 - 11:11 | 3146951 TheFourthStooge-ing
TheFourthStooge-ing's picture


Ever heard of the $400 toilet seats at the Pentagon?

Ah, ah, good example for the comparings with. Do contrast now waste fullness inefficient of 'american' pentagonism with effectivary efficient of Chinese citizenism.

Ever the hearings of 400 yuan roadside? Observate Chinese citizenism for the mother intercoursing win.

Fri, 01/11/2013 - 12:52 | 3144450 Seasmoke
Seasmoke's picture

i can never tell the little fuckers apart

Fri, 01/11/2013 - 12:56 | 3144466 CheapBastard
CheapBastard's picture

Brack Swan approaching.....

Fri, 01/11/2013 - 13:17 | 3144547 ZeroAvatar
ZeroAvatar's picture

This ain't no brack swan, this is the talking magpies 'Heckle and Jeckle'.  The U.S. is 'Woody Woodpecker'. 


No one knows where the Brack Swan is lurking.  After it's appearance, keep a lookout  for the Phoenix, 'cause THERE WILL BE ASHES!

Do NOT follow this link or you will be banned from the site!