Japan, China, South Korea Island Disputes Threaten Global Economy (+ Video) -- Daniel McDowell, Christian Science Monitor
Island disputes between Japan, China, and South Korea are threatening financial stability in East Asia, and with it, the global economy. The next US administration should push publicly and persistently for a solution.
What are the biggest short-term threats to the global economy? The two most obvious answers are the ongoing European debt crisis and the looming austerity of the “fiscal cliff” in the United States. But what if I told you that in the running for honorable mention is the sticky situation in East Asia surrounding territorial disputes over several small islands?
At the heart of these disputes lie the region’s “big three” economies: China, Japan, and South Korea. Beijing and Tokyo are at odds over who has rights to the Senkaku Islands (or in China, the Diaoyu) and, more important, the potential oil deposits in the surrounding waters. Meanwhile, Japan has a similar dispute with South Korea over the Takeshima Islands (or in South Korea, the Dokdo), also with energy deposits.
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My Comment: When the world's #2, #3, and #15 economies are in a major dispute that threatens to escalate .... we should all take notice. And while I doubt that this will escalate into a military confrontation, I do see the possibility that economic measures/sanctions will be taken that will hurt the economies in these three nations. And if history is any indication, when economic sanctions/duties/embargoes/etc. are implemented, it will only be a matter of time before we start to feel it on the other side of the world.