Connect with us

Asia

Japan considers Alaska gas pipeline to appease Trump

Published

on

Japan is considering backing a $44 billion natural gas pipeline in Alaska to curry favor with US President Donald Trump and avoid potential trade frictions, three officials familiar with the matter told Reuters.

Officials in Tokyo expect Trump to raise the project, which he has said is key to US prosperity and security, when he meets with Japanese Prime Minister Shigeru Ishiba for the first time in Washington next week.

Japan has doubts about the viability of the 800-mile pipeline, which would connect fields in northern Alaska to a southern port where the gas would be liquefied and shipped to Asian customers, because of the total cost of the gas compared to other sources. But officials said they were prepared to offer to explore a deal if requested.

Tokyo could include such a commitment among other concessions, such as buying more US gas and increasing defense spending and manufacturing investment in the US to reduce the $56 billion bilateral trade deficit and stave off the threat of tariffs, one of the officials said.

The White House did not immediately respond to a request for comment on the meeting. Japan’s Foreign Ministry said it was premature to discuss the issue.

Details of Japan’s possible interest in the Alaska project had not previously been reported. According to Reuters, the officials spoke on condition of anonymity because they were not authorized to speak to the media.

Promise to unlock Alaska’s resource potential

Among the decrees Trump signed when he took office on 20 January was one promising to unlock Alaska’s resource potential, “including the sale and transport of Alaska LNG to other parts of the United States and allied countries in the Pacific region.”

Trump described the gas project as a win for Alaska and US allies in Asia seeking a stable source of energy. But Japan already has ample access to LNG, and its companies traded about 38 million tonnes last year, more than half of its domestic consumption.

Still, the Alaska pipeline could help Japan diversify its supplies from sources such as Russia and the Middle East, where it realizes about a tenth of its gas imports.

Ishiba told parliament on Friday that Japan needs to reduce its dependence on fossil fuels, saying “there are things we need to demand from the United States in terms of stable energy supply.” He did not elaborate on this and did not mention the Alaska project.

Officials cautioned that Ishiba would not be able to make firm commitments on LNG, including investing in the Alaska project, when he meets with Trump. A fourth official said any deal must offer reasonable pricing and flexibility, including allowing Japanese buyers to resell the LNG they buy.

Efforts to bond with Trump

Since returning to the White House, Mr Trump has spoken of a series of tariffs on foreign goods but has said little about his approach to economic and security relations with Japan. But the issue has dominated political discourse in Japan, a key US ally and largest foreign investor, which was shaken by Trump’s tariffs on steel imports during his first term and his demand that Tokyo pay more to host American troops.

Media attention in Tokyo has focused on whether Ishiba, who became prime minister last year and heads a minority government, can replicate the bond with Trump that former Japanese leader Shinzo Abe forged during his first term.

Abe, who was assassinated in 2022, was the first foreign leader to meet Trump after his 2016 election victory, and the two became “close confidants” and golfing partners.

The Ishiba administration, which has no such acquaintance with Trump’s inner circle, has sought advice from US lawmakers and policy experts with ties to both Japan and Trump. These include Tennessee Senator Bill Hagerty, the former US ambassador to Tokyo, and Kenneth Weinstein, Japan director of the Hudson Institute, a conservative think tank.

Weinstein told Reuters that he encouraged Japan to deepen its energy partnerships with the United States and that the Alaska project requires serious consideration. Hagerty’s office did not respond to questions.

Tokyo-based businessman Ado Machida, who served on Trump’s transition team after his 2016 election victory, said Japan’s offer to buy more LNG and support the Alaska LNG pipeline would be “probably the easiest” way to win Trump.

“Trump will want to know what Japan will do for him,” Machida said, adding that he had spoken to Japanese government officials about the offer.

State-owned banks such as the Japan Bank for International Cooperation (JBIC) could provide financing for the Alaska project to trading firms such as Mitsubishi Corp. and Mitsui & Co., which Japan relies on to secure its offshore oil, gas and coal reserves, one of the officials said.

In 2022, Mitsubishi reached an agreement with Alaska Gasline Development Corporation (AGDC), the state-owned company overseeing the LNG proposal, to assess the feasibility of producing ammonia there. Mitsubishi did not commit to the project beyond the evaluation.

Mitsubishi and Mitsui declined to comment on potential investments and discussions related to the Alaska LNG project. JBIC said it would consider providing support on a case-by-case basis, taking into account factors such as any participation by Japanese companies.

A spokesperson for AGDC told Reuters that it had held discussions with Japanese energy leaders about the project but gave no details.

The project, first approved during Trump’s previous term, received authorization from the Federal Energy Regulatory Commission in 2020 and final regulatory approval in 2022, despite opposition from environmental groups.

This month, AGDC announced that it had signed an agreement with developer Glenfarne to move the pipeline forward.

Asia

Pentagon plans covert spy ring for economic war on China, report says

Published

on

The US Department of War (Pentagon) is reportedly planning to establish an extensive network of deep-cover agents to wage economic warfare against China and other adversaries of the US.

According to a report by The Washington Post citing six sources familiar with the initiative, the plan has not yet been put into effect. The newspaper reported that the initiative remains at the planning stage. The Pentagon, however, denies that any such initiative exists.

The report said the operatives would pose as entrepreneurs or private sector employees while concealing their ties to the US government. The network’s mission would be to gather economic intelligence and counter China.

The programme is led by Tom Rakusa, who spent 39 years at the CIA. Rakusa serves as a senior adviser to Deputy Secretary of Defence Steve Feinberg.

The proposed spy network is seen as part of a broader policy by the Donald Trump administration to sharpen economic competition with other countries.

The US is already resorting to tariffs, export controls, and investment in strategic sectors, alongside expanding its economic intelligence gathering.

According to The Washington Post, the new initiative demonstrates the Pentagon’s growing influence under the Trump administration. The department is currently seeking a record budget of $1.5 trillion.

Trade war flares up again with Trump’s return to the White House

The trade friction between the US and China flared up again following Donald Trump’s return to the White House. In April 2025, Washington raised tariffs on Chinese goods to as much as 145%, and Beijing retaliated with tariffs of up to 125%.

In May, US Secretary of State Marco Rubio described China as the primary geopolitical challenge facing Washington. Rubio said that to avoid war, the two sides needed to manage their conflict of interests.

In July, Chinese expert Zheng Yongnian did not simply warn that underestimating the US could prove to be a “fatal mistake”; he stated it explicitly.

According to Zheng’s assessment, the US maintains its primacy through the role of the dollar, its military superiority, and its technological advantages.

Even so, the two sides agreed in June to declare a truce and lower tariffs. In autumn 2026, the US and China extended their trade truce until 10 January 2027.

US Treasury Secretary Scott Bessent said the extension would give the parties more time to discuss economic issues.

Trade deals do not eliminate the strategic contradictions between the two countries. Financial Times columnist Rana Foroohar likened the race between the two nations for commercial, technological, and geopolitical influence to the 19th-century “Great Game” between the Russian and British empires.

Foroohar cited China’s standing in shipbuilding and commercial maritime transport, as well as its expanding footprint in overseas ports, among its key advantages.

Continue Reading

Asia

Japan plans curbs on short-term home sales to cool urban prices

Published

on

Japan’s ruling Liberal Democratic Party (LDP) plans to restrict short-term property trading to rein in surging home prices in major urban centres, particularly Tokyo.

Led by Prime Minister Sanae Takaichi, the party aims to make support for working households a core priority ahead of local elections scheduled for April next year.

The LDP’s research commission on housing and land policy met on Wednesday to discuss the issue.

According to a report by the Nikkei Asia newspaper, Commission Chair and LDP lawmaker Midori Matsushima said at the opening of the meeting: “Prices of newly built condominiums across Tokyo’s 23 wards have doubled over the past decade. We must work on measures ensuring that people who wish to live in these homes can actually afford to buy them.”

Homeownership in the capital has become virtually unattainable for broad segments of the population. According to data from the Real Estate Economic Institute, the average sale price of a newly built condominium in Tokyo’s 23 wards rose %18.5 in fiscal 2025 compared with the previous year, reaching 137.84 million yen (around $872,000).

Meanwhile, statistics from the Ministry of Labour show that the average annual income of a full-time worker in the capital remained at 6.78 million yen in fiscal 2025. This widening gap between incomes and residential property prices is directly shaping political priorities.

During its campaign for the House of Representatives election in February, the LDP pledged to curb speculative transactions across metropolitan Tokyo and other regions. Earlier this month, a party project team focused on policies concerning foreign nationals also submitted a recommendation urging the government to introduce immediate tax measures against rising home prices.

Under current legislation, profits realized from properties sold within five years of acquisition are classified as “short-term capital gains”. These returns face a tax rate approaching %40, including income tax and local inhabitant tax.

Although this rate is twice the approximately %20 levied as “long-term capital gains” tax on properties held for more than five years, several party members argue it remains insufficient to deter speculation. Calls to tighten the framework may be considered as part of the annual tax reform package to be drafted in December alongside the LDP’s coalition partner, the Japan Innovation Party.

The ruling bloc wants to present concrete housing pledges to voters heading to the polls in April across numerous urban centres, including 22 of Tokyo’s wards where local assembly terms expire.

“We need to support families with children, who are typically at the stage of purchasing a home,” a senior LDP official said.

Opposition parties are also preparing alternative proposals that target not only prospective homebuyers, but also residents forced into the rental market by high property prices and now affected by escalating rents.

Tax steps take precedence over limits on foreign buyers

Several countries seeking answers to housing affordability pressures have imposed direct restrictions on foreign purchasers. In South Korea, real estate policies played a major part in the declining public approval ratings of President Lee Jae Myung.

In August 2025, authorities in Seoul introduced an approval requirement for foreign nationals buying homes in the capital and adjacent areas, while also mandating that buyers reside in the properties for at least two years.

Canada and Australia have enacted temporary bans on foreign residential purchases, while Singapore levies a %60 additional stamp duty on foreign buyers.

The role of overseas investors in Japan’s property market also drew debate during the February election. However, restrictions aimed directly at foreign nationals are viewed as potentially conflicting with international trade and services agreements.

Consequently, rather than imposing restrictions based on the nationality of buyers, the government is discussing tax measures aimed at speculative real estate deals, such as rapid resales.

Fears that sharp market measures could shake regional banks

Concerns have also surfaced that aggressive steps to force down prices could harm the wider national economy.

A senior LDP tax official cautioned that a steep drop in land prices could weaken local financial institutions, warning: “We must consider the impact on regional banks.”

The real estate sector accounts for roughly %18 of total lending by Japanese banks. This proportion sits well above the %10 level recorded during Japan’s bubble economy of the mid-to-late 1980s.

At certain regional banks, property lending accounts for nearly half of total loan portfolios.

According to March 2025 data from the Financial Services Agency, approximately one-quarter of all loans extended by regional banks to the real estate sector are concentrated directly in Tokyo’s five central wards.

Buoyant asset valuations, supported in part by rising stock indices, have underpinned strong public approval for the Takaichi administration. Observers note that property interventions designed to cool the market could drag down equity prices and weaken the government’s standing.

A senior official on the LDP research commission stressed that decision-makers must act with caution regarding the scope and timing of any measures intended to bring price increases under control.

Continue Reading

Asia

South Korea plans $120B spend on eight US nuclear power plants

Published

on

South Korea will spend $120 billion to construct eight nuclear power plants in the US under an agreement that provides for $350 billion in investments in exchange for lower tariffs.

The South Korean government also announced that Seoul and Washington will begin examining a liquefied natural gas (LNG) project in Alaska comprising a large-scale pipeline to transport natural gas from the north of the state to the south, alongside the construction of an LNG terminal for exports overseas.

Seoul stated that a decision regarding the LNG project will be made following a commercial feasibility study. However, US President Donald Trump said that South Korea would invest $54 billion in the project, pointing to an apparent lack of full coordination between the two sides on the matter.

Trade and Industry Minister Kim Jung-kwan said in a statement: “This announcement opens a new horizon of cooperation where the two countries join forces to develop joint commercial ventures in strategic areas directly linked to economic security and future sectors such as artificial intelligence, nuclear energy, and LNG.”

“We will adhere to the principle of prioritising national interests and investing solely in commercially viable projects,” Kim said.

Speaking at the White House, Trump characterised South Korea’s plans as “one of the largest energy infrastructure investments in American history”.

The announcement followed a meeting between Trump and South Korean President Lee Jae Myung roughly one year ago at the APEC Economic Leaders’ Meeting held in South Korea, where they agreed on the creation of a $350 billion investment fund.

Under that agreement, $150 billion was allocated to the shipbuilding sector and $200 billion to other sectors. In return, the US announced it would reduce tariffs imposed on goods imported from South Korea from 25% to 15%.

Under the nuclear power project, South Korea’s state-controlled utility will build two plants in the US, while Pennsylvania-based Westinghouse Electric will construct six plants.

According to the South Korean government, this will mark the first instance in which a foreign country builds its own nuclear power plants in the US.

South Korean firms are also evaluating the possibility of acquiring a stake in Westinghouse as part of negotiations over sharing profits generated by the project.

South Korea additionally announced that it will build a $22.3 billion natural gas-fired power plant in Texas with a capacity of 6,472 megawatts.

The facility will be designed to supply electricity directly to nearby data centres. The project’s first phase is targeted to begin commercial operations in 2029, with full-capacity operations slated for 2032.

Seoul also disclosed that it had agreed to allow the US to receive 50% of the profits generated by the projects until South Korea recoups all of its investments.

After South Korea fully recovers its total investment amount, 90% of the profits will go to the US.

Continue Reading

MOST READ

Turkey