Banananomics: Japan Enters The Soft War

Japan and the Philippines are now siding with the U.S. in the soft war against China.

Inputs that matter: NPR reports, "Japan has long been one of America's closest allies, and the Biden administration has sought to strengthen the relationship further as part of its push to counter China."

• "With Philippines President Bongbong Marcos joining the two leaders for a three-way summit on Thursday, another clear goal of this week's meetings between the U.S. and the Asian nations has become clear: underscoring global coordination in the face of increased hostility in the region from China," writes CBS.

The opportunity: As part of the deal, Japan is being offered U.S. defense contracts to manufacture military equipment.

• According to CBS, "Details of the enhanced military partnership will be worked out by Defense Secretary Lloyd Austin and his Japanese counterpart in the next several months."

• Japan hopes to join the Five Eyes intelligence network, which currently consists of the U.S., Canada, Australia, New Zealand, and the U.K.

• For Japan, the agreement represents added protection from China.

Zoom in: The U.S. and China are the world's two largest economies and the lead participants in competing groups of BRICS and G7.

• The U.S. and India are aligned against China regardless of India's BRICS membership.

• Japan and the U.S. are aligned economically in competition with China and both members of the G7.

Between the lines: Apple is shifting iPhone production from China to India to distance itself from rising geopolitical tensions.

• Quartz reports, "Apple assembled $14 billion worth of iPhone smartphones in India last fiscal year."

Follow the money: However, Biden has come out against a recent move by Japan's Nippon Steel to purchase U.S. Steel for nearly $15 billion.

• Scott Lincicome of the Cato Institute told NPR that Biden's decision to oppose the deal was a political choice based on his need for the union vote in November.

China President Xi Jinping on Wednesday reasserted China's territorial claim on democratic Taiwan, likening it to a "family reunion."

Inputs that matter: Radio Free Asia reports, "The meeting comes as Xi's administration has refused government-to-government talks offered by Taiwan President Tsai Ing-wen, who has repeatedly said the island won't be giving up its sovereignty or democratic way of life to be ruled by Beijing."

• The Chinese Communist Party has never ruled Taiwan.

• U.S. President Biden has agreed not to support Taiwanese independence but insists on sanctions with China.

• Japan and the Philippines are now siding with the U.S. in the soft war against China.

The opportunity: CNBC reports, "In October last year, the U.S. tightened restrictions to prevent the sale of artificial intelligence chips and semiconductor tools to China."

• Nvidia currently manufactures its chips in Taiwan.

• The Taiwanese manufacturer Foxconn is working with Apple to shift iPhone production from China to India.

• CNBC reports that Chinese government workers are now banned from using Apple's iPhones.

Zoom in: "U.S. Treasury Secretary Janet Yellen warned China on Monday that Washington will not accept new industries being decimated by Chinese imports," details Reuters.

• China is the leading supplier of electric vehicle batteries, partnering with most of the world's auto manufacturers, including Tesla, Ford, and G.M.

Between the lines: The U.S. Department of State told Taiwan's Central News Agency on Monday that the U.S. is closely monitoring Beijing's actions.

• The U.S. explains, "We urge [China] to engage in meaningful dialogue with Taiwan to reduce the risk of miscalculation."

• At the same time, the U.S. has accused Beijing of waging a disinformation and propaganda war against Taiwan that could undermine the island's democracy.

Follow the money: China President Xi claims Taiwan as a province of China and has sworn to annex it by force if necessary, reports The Guardian.

• They report, "Amanda Hsiao, a senior China analyst with the International Crisis Group, said Beijing was trying to put on a friendlier face but also probably trying to undermine the ruling party and incoming government, just weeks out from the presidential inauguration of Lai Ching-te, whom Beijing despises."

The U.S., like its rivals in Moscow and Beijing, has spent millions of dollars quietly turning its citizens' phones and internet browsers into a powerful intelligence-gathering tool, reports Wired.

Inputs that matter: The idea of good guys versus bad is inaccurate for the world stage.

• This week, U.S. Representative Mike Johnson is working to resolve the issue of reauthorizing Section 702, a critical foreign surveillance program authorized by Congress to target terrorists, cybercriminals, and narcotics traffickers overseas.

• However, Section 702 is used to spy on U.S. citizens without a warrant.

The opportunity: "This week, the House of Representatives is set to vote on whether to reauthorize Section 702 of the Foreign Intelligence Surveillance Act, which will expire on April 19 unless renewed by Congress," reports the Dispatch.

• The U.S. has performed baseless searches for the communications of members of Congress, journalists, and 19,000 donors to a congressional campaign. 

• The FBI has performed "tens of thousands" of unlawful searches "related to civil unrest," including searches targeting 141 people protesting the murder of George Floyd and more than 20,000 people affiliated with a group suspected of involvement in the January 6 attack on the U.S. Capitol. 

• Most recently—and despite procedural changes implemented by the FBI to stem abuses—FBI agents performed improper searches for the private communications of a U.S. senator, a state senator, and a state court judge who reported alleged civil rights violations by a police chief to the FBI.

Zoom in: Enacted shortly after 9/11, Section 702 allows intelligence agencies to collect the phone calls, emails, text messages, and other communications of almost any non-American outside the United States without a warrant.

• The Foreign Intelligence Surveillance Court (FISC) approves the general rules governing surveillance, but it does not approve individual targets.

• Congress directed intelligence agencies to "minimize" the retention and use of American information collected under Section 702.

Between the lines: The government argues that warrantless searches are necessary for national security, and according to the ACLU, "Though Section 702 is justified as a counterterrorism tool, in reality, it permits surveillance far beyond what is needed to protect national security."

• "The FBI, CIA, and NSA officials routinely search through this vast trove of data for information specifically about Americans, even though these communications were all collected without a warrant."

• "The NSA uses devices installed on the internet backbone to continuously scan international internet traffic in bulk, looking for communications associated with tens of thousands of targets."

Follow the money: The Hill reports "that FBI Director Christopher Wray routinely warns of the near-apocalyptic threats and consequences from Beijing's massive counterintelligence campaign."

• Wray complains that Congress has underfunded their efforts to do more in the soft war against China.