Cybersecurity

Japan Cybersecurity

This article is about Japan’s cybersecurity minister, Youshitaka Sakurada, who is embarrassingly uninformed about his own department. Sakurada even made the confession that he does not even use computers and is rather unfamiliar with cybersecurity issues.

He stated that the main role of his job was to read out written replies of bureaucrats without making any mistakes, even this however has not always proven easy for Sakurada. He also provided inappropriate answers when questioned by lawmakers, and he has been labeled as a liability that is able to cause losses to Japan’s economy. This is not the first time that he has brought shame to the Japanese government, using excuses such as he has always instructed his employees and secretaries to do this sort of work for him hence his inexperience. He also did not understand what the function of a USB was either when asked about their usage in nuclear facilities.

He admitted, however, that although he does not use a personal computer he does frequently use a smartphone “many times a day since it is very useful.” The frightening lack of expertise in his corresponding field has caused shock and concern among the opposition party and it has even gained international attention. A lawmaker from the opposition party even stated that “it is incredible that a person who has never used a computer is in charge of cybersecurity policies.” The fact that Mr. Sakurada was able to attain this position brings to question the selection process of other ministers in the Japanese cabinet and just how valid these choices are.

This news comes ahead of concern of possible cyberattacks during the 2020 Tokyo Olympics and Paralympics.

https://www.theguardian.com/world/2018/nov/15/japan-cyber-security-ministernever-used-computer-yoshitaka-sakurada

Fake News??

This week I read about a fictional festival depicted in a segment of the Japanese variety show Sekai no Hate Made Itte Q. The show depicts Japanese comedians traveling to foreign countries in traditional Japanese clothes and participating in festivals or competitions. Although not a news program, the show is at least in part understand as a program through which Japanese people can learn about other cultures and countries. In the disputed TV segment, Nippon Television depicts a bridge festival in Laos, where motorcycle drivers rode across narrow wooden planks over a pool of muddy water. The problem? There is no such thing as a bridge festival in Laos. The TV crew built the bridge at the edge of a festival that was celebrating local coffee. Motorbikes are rare in Laos. The television crew even payed locals to compete in the phony competition. 

Even though Sekai no Hate Made Itte Q is an entertainment show, I think that their actions are reprehensible and potentially harmful to the public. By presenting the festival as Laotian, they cultivate an ignorance about other parts of the world. One possible explanation the article cites for Nippon's actions is desperation. In response to the declining significance of television in Japan, where young people are increasingly turning toward online platforms for entertainment, the station may have felt desperate to grab the attentions of its viewers and maintain its relevancy.

I think this article also speaks to the more general issue in Japan of blurred lines between journalism and entertainment. On the one hand, I don't think this is necessarily a bad thing. By making news entertaining and accessible-- incorporating comedians and unusual segments-- television stations probably engage a higher proportion of the population in current events and are able to educate them about the global affairs. Yet, an expectation of truth must still be preserved. I think there are several shows/ comedians in the U.S. -- John Oliver comes to mind-- who successfully tiptoe the line between news and entertainment. We know they are making us laugh. We know their opinions are biased. But we also trust that the information from which they are drawing is factual. What Nippon did, I believe, crossed the line.

Cybersecurity: Global Failures

With the rise of cyber attacks by various countries such as Russia, China and North Korea, the demand for cyber security, both in the private and public sector, has become more and more necessary. Countries such as Russia, China and North Korea have invested heavily in resources dedicated to launching attacks against different organizations.

North Korea has become infamous for its attack on Sony following the movie about their leader, Kim Jong Un. China has also faced its fair share of allegations with companies like Amazon finding small chips located on server racks in which confidential information was being processed. Russia itself has faced allegations of hacking into the Democratic Party and exposing the various emails.

Like many other countries, Japan has found itself ill-prepared for the attacks as the new minister appointed for cybersecurity has little knowledge of the field and has established his role as simply a document reader. If anything, his justification of using a smartphone, not even a computer, is equivalent to suggesting that familiarity with modern technology grants him the knowledge needed to fulfill a highly technical position.

https://www.washingtonpost.com/news/powerpost/paloma/the-cybersecurity-202/2018/11/13/the-cybersecurity-202-the-u-s-was-notably-absent-from-a-global-cybersecurity-pact-but-american-companies-signed-on/5be9c0881b326b3929054751/?utm_term=.978251fd3543

https://www.bloomberg.com/news/features/2018-10-04/the-big-hack-how-china-used-a-tiny-chip-to-infiltrate-america-s-top-companies

The Fall of Carlos Ghosn

Shinzo Abe’s 2012 corporate governance reforms have been touted as successful, but the recent arrest of Nissan chairman Carlos Ghosn for alleged criminal financial misdoings suggest otherwise. The articles provides context by describing one of the largest financial accounting frauds by another Japanese company, Olympus. In 2011, a British-born businessman was promoted to CEO of the optics company. Two weeks later, he exposed the company for over $1.5 billion in concealed losses, which included dubious payments to criminal organizations. Corporate misdoings are not uncommon as the articles brings up a multitude of examples, but the arrest of Ghosn is significant because it suggests the failure of Abe’s plan to shift power from the boardrooms to shareholders and to encourage boards to hire more foreigner board members.

There seems to be a reoccuring theme in this class about the Japanese government encouraging companies to take on foreign talent and the subsequent resistance by Japanese companies. In this case, companies were encouraged to “add two independent directors.” Nissan responded bring hiring a racecar driver and a retired bureaucrat, which is basically a joke. A more diverse board could have spotted Ghosn’s wrongdoings earlier and checked the chairman’s power. It’s almost universally agreed that increased diversity in the workplace improves performance in the long run as shown by respected studies like one by McKinsey. It’s not just a PR stunt. However, it always seems that Japanese companies fail to act of evidence like this.

What’s also interesting to note is the Ghosn is a foreigner, who completely revitalized Nissan from near bankruptcy to financial success in the 1990s. He was so successful that he was nicknamed “Mr. Fix it” and achieved celebrity status in the Japanese business world. After doing some more research, I also learned that you dismantled traditional Japanese business practices like the “life-contract” and “keiretsu”. His success can be seen as evidence for how foreigner talent can improve Japan, and it’s a shame to see success a hero fall down like this.

Ohitorisama and Hatsune

Ohitorisama

This article is titled Ohitorisama which means “One person” and it used by shop keepers when they find out you will be using their services by yourself. You can hear it being used mainly in restaurants and karaoke parlors.

The article is focused on how the trend of going to places alone is gaining traction and many businesses have started to cater their services to the solo consumer. The picture in the article is of a solo diner in a ramen restaurant, and indeed the social interaction in a solo ramen joint is minimalized to a great extent. You order your ramen from a machine, you are partitioned from other diners by walls, and even the food is delivered to you from the front without any interaction with the waiting staff. I have been to several ramen joints like this and can understand the appeal especially if you are dining alone. Most people feel socially awkward to eat out by themselves in restaurants, and the chance to have restaurant quality food even when you have no one to eat with is one that is appreciated by many. The chain ichiran even opened a chain in New York city.

 The article writes how more than one third of Japanese households are composed of just one person, which means that more companies are starting to cater to this huge segment of society. Several Japanese consumers are also searching for ways to have “me time” since their society is generally so intense in the workplace and fast-paced. The other main service mentioned here is solo karaoke where a Karaoke chain realized 30% of its consumers sang alone so they set up solo booths for individual consumers. These customers appreciate not having to sing songs they don’t want and being able to release their stress privately.

The article mentions other services as well that cater to the individual including single rider lines in theme parks, single meals in grocery stores, and solo trips in travel agents.

Love in another dimension: Hatsune Miku

This article is focused on a rather novel concept on a 35 year old soft-spoken man, named Akihiko Kondo, who recently got married with a virtual reality singer named Hatsune Miku. His own mother declined the invitation to his wedding this month because she was unable to accept her son’s commitment to a virtual animated character. None of his relatives also attended the ceremony however there were around 40 guests during his wedding in Tokyo.

Who is Hatsune Miku? She is an animated 16 year old singer with large aquamarine pigtails and saucer eyes. She has videos of her singing with other singers or of her giving solo concerts as well. Her name comes from the characters初音未来　which can be translated as the first sound of the future. She is a vocaloid character and she is available in 3 different languages including Japanese, English, and Chinese.

During his wedding ceremony, Kondo used a cat-sized stuffed doll as opposed to the hologram. His wedding cost over two million yen and since March he has been living with a talking hologram of Hatsune Miku that also cost about $2800 dollars. Kondo mentions how he has never cheated on her, how he thinks about her every day, how his wife wakes him up each morning and sends him off to work, turns on the lights when he come home, and tells him when it’s time to go sleep. The article mentions how he sleeps with the doll version of Hatsune who he tied the knot with in his wedding ceremony accompanied with a ring that fits her left wrist. Apparently he even took Miku to the jewelry shop to buy her the ring.

Although his marriage has no legal standing, he is not alone with over 3700 people having had cross dimensional marriages in the past. He has described himself as a sexual minority and that society should eventually learn how to accept him and his virtual wife in the future. Miku is especially appealing since the hologram does not age or die, and he doesn’t have to deal with the emotional complexity and burden of an actual human being.

References

https://mashable.com/2016/11/28/solo-ramen-shop-nyc/#u3M2XkQf7SqV

https://ec.crypton.co.jp/pages/prod/vocaloid/cv01_us

Ohitorisama

Japan's lowering birth rates have been a large issue with birth rates in Japan hovering around 1.44 in 2017 compared to the United States' 1.80. These low birth rates are partly due to the single culture that exists in Japan with 1 in 4 men and 1 in 7 women never getting married. The single culture is partially a result of economic hardships where individuals in Japan often have very little interaction with others and questionable financial security. In a survey released by a governmental institute, 86% of males and 89% of females hoped to get married but more than 40 percent said money for marriage was a hurdle they needed to overcome. Despite the government offering child support services, increasing numbers of individuals in Japan are choosing to remain single both for economic and social reasons.

Some of the social reasons include growing numbers of people finding freedom in their solitude with the ability to manage time and money without restrictions. Estimations predict that by 2040, nearly 40 percent of households will be one-person only and many different services have begun catering to these individuals. Karaoke sessions can be offered in solo singing booths and some restaurants are in solo booths. Even in places like Universal Studios Japan, single rider lines are prevalent across the entire park. Surveys have shown that younger Japanese individuals rate quality time alone above family time.

https://www.japantimes.co.jp/news/2018/06/14/national/social-issues/many-japans-growing-number-singles-claim-comfortable-facing-death-alone/#.W_P2CZMzbRY
https://www.japantimes.co.jp/news/2017/04/05/national/1-4-japanese-men-still-unmarried-age-50-report/#.W_P7L5MzbRY

Ohitorisama

In Japan, businesses have been responding to the growing trend of young people enjoying activities on their own. More than a third of households in Japan are composed of just one person, creating an opportunity to cater to the solo consumer. For example, Karaoke places have increasingly built solo booths to accommodate singers who come without friends. The article also mentions movie theaters creating seats with partitions, travel agencies specializing in solo travel, grocery store meals for single people, and amusement parks that let singles skip the lines. 

As someone who often feels like I have to justify or explain to my host mom why I go explore places alone in Japan, I was happy to see that stigma surrounding solo activities is decreasing. Furthermore, I think that price structures should never make activities prohibitive for certain demographics. Diversifying options for all different types of consumers is definitely a positive. However, I take issue with several examples in this article-- particularly partitioning movie theater seats and restaurant seats to create solo enclaves. Nothing currently prohibits someone from dining alone or going to the movie theater alone. In fact, I do it all the time and enjoy the ability to be alone, but observe other people around me. I think being alone in the presence of strangers can cultivate a richer public life. Partitioning traditionally public, or semi-public spaces is likely a social and architectural mistake. 

Otaku Love

Akihiko Kondo, 35, marries a hologram of a virtual reality singer called Hatsune Miku. Although his mother was invited to the wedding, she nor any of his relatives came. The wedding was held in Tokyo by a company called Gatebox and it cost about 2 million yen. The article states that Gatebox, which creates the holograms, has issued more than 3700 wedding certificates for “cross-dimensional” relationships. Although Kondo cannot hold a conversation with Miku, she does wake him up and welcome him home. Kondo claims that there are many others in his position, and he hopes that his wedding will inspire others, who may be scared, to do the same.

Kondo’s situation called she some light onto possible reasons Japan’s “graying society” and mental health issues at the individual level. It amazes me that today, 1 in four men at age 50 have never been married, a decrease from 1 in 50 in 1980. From what I’ve learned while studying abroad, I believe that the high-stress, high-expectations, and extreme conformity of Japanese society creates severe trauma for those at the bottom. I can see a situation where a stressed out man who is failing school, getting rejected by girls, and unemployed would only be able to find acceptance in virtual characters. This relates to other forms of escapism in Japan like “Idol hand shaking events,” “calling an anime character a wifu” and “being a hikikomori.” Kondo explains that he has routinely shut down by girls in school and at work as a reason why he finds solace in Miku, who “can’t cheat, age, or die.” Some may argue that happiness is happiness, but I think this is completely avoiding the much larger problem which is a psychological disorder from loneliness. Although somewhat of a generalization, I feel that Japanese people can be too risk averse because society can put too much unnecessary pressure on people to succeed. Combined with poor economic conditions, more and more Japanese young men are “failing” are forced to deal with the consequences of shaming. The lack of mental health awareness in Japan makes the situation even worse.

Black Holiday Mirror and Changing Japan's Business Norms

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Japanese Bosses Queue Up to Look in the Black Holiday Mirror

The new leader of the Keidanren, Japan's all-powerful consortium of all the largest companies in Japan, is making people hopeful for much needed reforms in the Japanese work culture. The need for this reform is not only seen in the absolute tragedy of Japan's high suicide rate, but it is also seen in the fact that Japan, on a per hour basis, has the lowest worker productivity among OECD nations, but they work the most hours. Clearly the current work culture is unhealthy for the people and isn't even working efficiently for companies.

As the rest of Asia rises and the United States continues its strong growth, Japan is still stuck in the rut of losing decades. One big move that we discussed in class is the elimination of the binding "gentleman's agreement" that bound all companies to hire new-grads during a specific window. While there are those who argue that this will make a tight job market even tighter, the leader of the Keidanren responds strongly by saying the Keidanren has no role in creating and enforcing such rules. What really wows me about the Keidanren is how powerful it really is. If the US government created the, what are essentially regulations, rules the Keidanren all hell would break loose. The new leadership of Mr. Nakanishi is in my mind modernizing the Japanese company. The era of lifetime employment in a manufacturing space is not where Japan should be excelling. They need to shift to being more service orientated and flexible, these industrial era style rules aren't doing much more than limiting the freedom of these companies.

Rebirth of Nuclear Power?

Japan’s nuclear watchdog approves extension for tsunami-hit plant to operate beyond 40-year cap

With the 2011 Fukushima disaster, the public perception of nuclear power in Japan continues to be poor. As recently as this month, individuals in Tokyo were protesting against the opening of Tokai No. 2 power plant near Tokyo. The plant, which is about 130 km northeast of Tokyo, is similar to the Fukushima power plant that had the nuclear meltdown 7 years ago. Yet, the number of anti-restart signatures has risen to nearly 30,000 signatures despite the numerous promises about increases to safety and improvements in evacuation plans.

Briefly, these are the steps that Japan Atomic Power must clear to restart the nuclear power plant successfully:

• Power plant must produce at least 500,000 kilowatts to be economically viable
• Construct a 1.7 kilometer long coastal levee to protect against 17.1 meter high tsunamis
• Compile an evacuation plan for all members within a 30 kilometer radius (approximately 960,000 residents)
• Consent from host municipality and surrounding areas
• Approval from the Nuclear Regulation Authority

So far, the Tokai No. 2 power plant has only satisfied the last requirement and with the effects of climate change becoming a closer reality, such as stronger typhoons/hurricanes and large wildfires in California, nuclear power is becoming a more necessary alternative to the coal plants that have since replaced it. In 2010, nuclear energy consisted of 28.6% of Japan's energy and was reduced to nothing in 2014. In the last two years, thermal coal power has risen significantly with plans for more power plants, but the plans for these plants run contrary to other major countries such as U.K. and France which plan to close their coal plants by 2025 and 2021 respectively. Despite the efforts that Japan is making in developing renewable energy, it still falls short compared to other countries in the G7. Takamitsu Satu, a professor at Shiga University, argues, "Nuclear energy is the only power source that can fill the gap created by the reduced share of coal". Furthermore, no new nuclear energy power plants are being built partly due to the sheer cost of safety standards that must now be enforced. Despite the fact that this Tozai nuclear power plant has recently been approved, nuclear power continues to be shunned in Japan despite it being the only alternative that will reduce emissions.

https://www3.nhk.or.jp/nhkworld/en/news/20181107_47/
https://www.japantimes.co.jp/opinion/2018/07/16/commentary/japan-commentary/plotting-japans-energy-future/#.W-rApJMzZZg
https://www.japantimes.co.jp/opinion/2018/07/12/commentary/japan-commentary/future-shape-japans-energy-policy/#.W-rApJMzZZg

Englishnization (What an awkward word)

In 2010, Rakuten’s founder and CEO, Hiroshi Mikitani announced that the ecommerce company would officially switch its internal operating language from Japanese to English. Employees would be given two years to improve their skills or be subject to demotion. Due to Japan’s shrinking society, Rakuten looked to expand to the global markets to increase sales. Mikitani believed that switching the internal language to English would make employees more comfortable selling to foreign countries, make foreign business interested in the platform, and low to barrier to entry for foreign talent.Mikitani has dubbed this process, “Englishnization”, and this unique language changing process has garnered international interest by the likes of Harvard Business School.

Within the first year, Rakuten employees struggled with the change. Many people asked, “why do I need to learn this” or “is this really good for the company?” I personally admire Mikitani to make a bold, top-down decision and bring his company kicking and screaming into the global markets. Many Japanese companies are criticized for inertia, making slow decisions where everyone needs to agree. Had Rakuten taken that approach, the language change surely would not have happened.

After 8 years, the company has seen success as evidenced by employees scoring high on english proficiency test and an enormous increase in foreign talent. As a consequence, Japanese companies have to consider that difficult decision of “Englishnization.” I would think that Japanese companies would want to make the change in order to reach new markets. However, this change is a marathon, not a sprint, and it requires the everyone believes in English, not just the leadership.

English at Rakuten

This week I read about the Japanese e-commerce company Rakuten, which, 8 years ago, implemented English as the official company language. Employees were expected to converse and produce documentation in English. The only problem? Most of the employees didn't speak English, and potentially faced demotion if they couldn't learn the language in two years.

My impressions of this story was that it's kind of miraculous that this initiative has worked out so successfully for the company. Rakuten operates in 30 countries and more than 20% of its employees are foreign nationals. In this sort of large, multi-national cooperate environment, I think switching to English made some sense, though I'm not sure its is necessary or wise for other types of companies. However, the article also mentions that 70 to 80 % of new hires are non-Japanese workers. This raises some questions, I think, about how much initiatives like this will benefit the Japanese worker as opposed to making businesses more friendly for foreign workers and international consumers.

From some research I did, it also seems like this article downplays the degree to which this initiative was initially unpopular and unsuccessful. The company didn't provide any support, and for more than two years, progress stagnated. Only once the company began investing resources in English education, did the company culture begin to change. On a larger scale, I think the Japanese government will need to make an investment in better early childhood and primary school education in English if Japanese workers are to fully benefit from the Englishization trend in the workplace. Although somewhat successful, forcing mid-career workers to learn a new language does not seem like a recipe for success.

In the Kyoto Artisans in the 21st Century course, I've also began noticing the impact that Englishization has on long-term shinisse viability. In places we go where artisans speak English well, they tend to collaborate more with international clients and have better future prospects. In places where the craftsperson speaks little or no English, the future seems more uncertain.

Suicide Prevention

This article talks about a study that has found that among Japanese middle-aged men suicide rates surge on Monday mornings. This is blamed on a psychological state called blue Monday where people become more depressed as Monday approaches.

This research is ground breaking because it is the first study of its kind that analyzed the specific times in which suicides tend to take place. They found out that the days and times of day suicide occurs differ by sex and age with men aged 40-65 peaking between 4am and 7:59 a.m. right before their commute to work. This figure was at its highest from 1995-2014 when the Japanese economic deterioration was at an all-time high.  Among this demographic, the number of suicides at daytime was 1.57 times higher than at night, and 1.55 times higher than Saturday. The study cites that the most common form of suicide was hanging and gas poisoning. 

In contrast to middle aged men, older men and women tend to commit suicide during the day, peaking at around noon when they are usually alone at home.

The findings of this study are important and can change the way suicide prevention services such as telephone consultation services operate. Currently these services are provided from the evening to the late night, however, this study could alert these organizations to provide more resources during peak times such as the early mornings.

Although this story is quite grim, Japan has been making progress in suicide prevention. The phenomenon used to be taboo subject with families impacted by suicide having few support resources since the act was considered selfish. However, along with breaking of social taboos the implementation of funds to actively prevent suicide has successful managed to reduce the total number of people taking their own lives. By 2012, for example, the figure fell below 30,000 since 1998.

References

http://www.who.int/mental_health/suicide-prevention/japan_story/en/

Tokyo Medical University Sexism

Tokyo Medical University Sexism

It was brought to light this year that Tokyo Medical School had been changing entrance exam scores in a deliberate effort to reduce the ratio of female to male students in their university. This is one of Japan’s most prestigious medical schools and according to findings the school has been altering test results for more than a decade since 2006.

The investigation discovered that the school reduced the scores of female applicants in the first-stage exam by 20% and then increased male scores, with the exception of those who had failed the test at least four times, by at least 20 points. This kind of outright discrimination has been going on for years and it is unclear how many women have been affected by these actions.

The roots of this issue lies with the profound sexism found in the admissions board of the university which stated that they wanted fewer female doctors since they anticipated that women would shorten or end their careers after having children.

Women who failed to gain admission to the university are now demanding that the school pay a total of $68,600 dollars in compensation. These 24 women are demanding the university pay a 100,000 yen in damages for each year the applicant took the entrance exam. The women claim that they would have not applied to this university if they had known that they would have faced such illegal exam score altering as female applicants.

The university in order to prevent a drop in the level of applications plans to reduce its academic fees for the medical faculty by $10 million to about $19.8. This brings it down to the second lowest fees for a private medical institution in the country.

References

https://www.theguardian.com/world/2018/aug/08/tokyo-medical-school-admits-changing-results-to-exclude-women

Made in X

President Trump's strategy of combatting a perceived economic takeover by China and even America's allies has been to effectively shut its doors or renegotiate deals. Some efforts to renegotiate trade pacts such as NAFTA have seemed successful. But some argue that the newly revised deal, named USMCA, will help benefit American workers but it also hurts the American companies and consumers. The U.S. and China trade war also had devastating results with the Shanghai Composite dropping nearly 25% since the start of this year and many companies in America have begun to feel the pain from rising costs, including 3M and automakers who now have to purchase more expensive steel from an industry now defunct in America.

China has also had a similar strategy to boost their economy, albeit with less confrontation. In 2015, the government proposed a radical plan to boost domestic production by 70% by 2025 and generate competitive high-end technologies to compete on the global scale. In doing so, many have argued this has either will push China to begin taking intellectual property from other countries or establish their own innovation economy.

Though not as isolationist as Trump's policies or as bold as China's plans, Japanese consumer companies see the recent rise of tourism to Japan as an opportunity to increase domestic exports. Shiseido and Kose, cosmetics makers, have seen 1/5th of their sales come from foreign tourists and therefore see their products as viable enough to export. By 2020, they plan to upgrade large plants in Tokyo and Osaka to increase production.

1. https://www.newyorker.com/news/news-desk/trumps-rebrand-of-nafta
2. https://www.pri.org/stories/2018-09-06/trump-s-nafta-revisions-designed-help-us-auto-industry-could-have-opposite-impact
3. https://www.forbes.com/sites/sarahsu/2017/03/10/foreign-firms-wary-of-made-in-china-2025-but-it-may-be-chinas-best-chance-at-innovation/#4c7e3bee24d2

Japan's CPTPP Agreement and Relationship with China

In big win for Japan, CPTPP to start at years' end after Australia ratifies Pacific trade pact

When Donald Trump entered the White House he delivered on a campaign promise to tear apart the TPP, which was a trade deal spearheaded by the Obama Administration. It would have been the largest multilateral trade deal ever and was meant as a counterbalance to expanding Chinese influence in the Asia-Pacific region. After the US abandoned the agreement, Japan took the lead to reform the agreement and hold the remaining countries together to form the CPTPP. The article discusses how the CPTPP has been ratified by the required 6 nations to go into effect at the end of the year.

This agreement isn't just a big win for multilateral free trade and the member nations, but it is also a big win for Japanese leadership on the global stage. As the United States continues its isolationist policies and focusing on unilateral free trade agreements that produce less global clout, this opens the door for another nation to fill in this leadership gap. The two "nations" that have been going around signing free trade agreements everywhere have been Japan and the European Union. Japan and the EU have always played second fiddle to American global leadership, but they are now the vanguards for liberal free-market democracies. I think the CPTPP has a major symbolic impact in that it shows that other countries can help play the role of the US while it is a little distracted. The rise of China and its strategy of creating tributary states with predatory loans should not be allowed to replace the incumbent global power balance. It is excited to see Japan play a role in helping promote the trade ideology that is being dropped by the US.


China and Japan Reset Strained Relationship

While, the CPTPP is a blow to China it doesn't mean that Japan cannot also make moves to ease tensions between the second and third largest economies in the world. With China under pressure from the American trade war, they are looking for ways to stabilize the Renminbi and build better economic relationships. Ever since the controversy over the Senkaku Islands/Diaoyutai in 2012, the relationship between China and Japan has been frozen. The protests from Chinese citizens shocked Japanese companies and dampened their desire to invest in the country.

The agreements today aren't massive, but do show that the two countries are moving in the right way. They are a three year, $30 billion credit swap between the two central banks and cooperation on overseas development projects. Additionally they are promoting a forum between business leaders in China and Japan to find areas where the two groups can cooperate instead of compete. This shift shows how Abe is making more pushes around the world to promote Japanese leadership in the era of Trump. It also shows how China is increasingly looking for more friends in the world as Trump's trade war against the country continues. It will be very interesting to see whether Japan and China can abandon historical animosity in favor of international cooperation and economic growth.

Made in Japan

Despite a history of producing goods solely for Japanese customers, some Japanese companies are making large investments into domestic production in an attempt to capture more of the global market. There has been a global trend, where “Made in Japan” products are seen as superior goods.

To illustrate with an example, the cosmetic company “Shiseido” expanded its domestic infrastructure by 45 billion yen from 2020 to 2022. It also plans on building another plant in Kakegawa and cancelling the closure of an Osaka factory. Shiseido has global appeal - my mom requested that I buy makeup for her and bring it back. However, the increased production abilities will still fall short of demand and will require additional investments. Another cosmetic company, Kose, is popular with Chinese tourists and is also expanding its domestic production. Cosmetics is expected to become the new multinational face of high quality Japanese products.

Other reasons for this shift to global markets include the rise of e-commerce business through Alibaba. Japanese companies are able to sell to foreign customers without having to invest into foreign infrastructure or sales.

How could this trend impact Japan’s economy? Currently Japan has a reputation for high quality exports like machinery and automobiles. So, this “Made in Japan” trend could be the start of Japanese companies capturing other foreign markets like cosmetics. Moreover, China recently surpasses the US as Japan’s number 1 export, so the rise of the Chinese economy could help kickstart the Japanese economy out of stagnation.

Women Demand Compensation

A group of 24 women who were denied admission to Tokyo Medical University are demanding financial compensation after the school admitted that it had manipulated entrance exam scores for more than ten years to favor male applicants. The university did this to try and avoid a shortage of doctors, claiming that female doctors resign or takes leaves of absences when they have children. In addition to financial compensation, the women are also demanding that the university release the results of test scores for all of the applicants, and are asking for a response within two weeks.

The article seems to suggest that there is a general shortage of doctors in Japan, which the university is now trying to address by lowering its tuition fee. This seems like a much more reasonable way to keep up enrollment than discriminating on account of gender. I also support the women in calling for the exam results to be released. I think this will lead to greater transparency and accountability. It is interesting that this case is happening now, just as Harvard is experiencing a challenge to their admissions processes in the United States.