■ Economy
Japan's recovery to pick up
Japan's economic recovery will speed up this year as stability in the financial system increases, Economic and Fiscal Policy Minister Heizo Takenaka said. "The economy should pull out of its stagnation from the middle of the year and turn into a recovery phase, as fundamentals, mainly the country's financial system, are being strengthened," Takenaka said today on Japan Broadcasting Corp.'s NHK television program Sunday Debate. Japan should discuss the possibility of raising consumption tax in the year ending March 2007, Takenaka said on the program. "Japan should decide whether the country will keep cutting annual expenditure or raise the tax burden," Takenaka said. Japan's ruling coalition, led by the Liberal Democratic Party, agreed last month on a comprehensive reform of the tax system, including the 5 percent consumption tax, in the year starting April 2007 to cope with the aging of Japanese society.
■ Banking
Chinese bank to sell stakes
Germany's Deutsche Bank AG and Holland's ING Groep NV may buy stakes in Bank of Beijing, the 16th biggest of China's city commercial lenders, the Economic Observer said, citing an unidentified person. The Chinese lender on Jan. 8 said it's in talks with overseas financial institutions that may result in at least two foreign banks taking a combined 24.98 percent stake as part of expansion plans ahead of an initial share sale within two years. China's banking regulator last year allowed the nation's city commercial banks to expand outside their home base for the first time, making them more attractive to overseas lenders.
■ Retail
Mitsubishi joins Daiei effort
Mitsubishi Corp, Japan's largest trading company, will join a group led by Aeon Co in its bid to help revitalize Daiei Inc, the Nihon Keizai newspaper said. Mitsubishi will supply products, develop shops and sell real estate, but won't invest in the retailer, according to the report. Aeon, Kyocera Corp and Mitsubishi plan to help restructure Daiei by taking advantage of facilities and distribution channels of the trading house's group company Lawson Inc, Japan's second-largest convenience store chain, the paper said. Daiei is now seeking ?707 billion in financial aid to cut debt. Aeon and Ito-Yokado, Japan's second-largest retailer, and Wal-Mart Stores are bidding in groups with other retailers, real estate companies and investment funds.
■ Investment
China regulator on way out
Shang Fulin (尚福林), head of the China Securities Regulatory Commission, and other senior managers in charge of restructuring the nation's capital markets may be removed after the nation's stock markets continue to slump for a fourth consecutive year, the Economic Observer said, citing unidentified industry people. Shang, who took over from Zhou Xiaochuan (周小川) as chairman in 2003, may be replaced by Deputy Finance Minister Lou Jiwei (樓繼偉), the newspaper said. The chairman's assistant and commission vice chairman may also be changed, the report said. The Shanghai Composite Index tumbled 15 percent last year and its counterpart in Shenzhen lost almost 17 percent, the two worst performers of 62 primary global indexes tracked by Bloomberg. The declines were blamed in part on corruption scandals and a series of brokerage failures.
RETHINK? The defense ministry and Navy Command Headquarters could take over the indigenous submarine project and change its production timeline, a source said Admiral Huang Shu-kuang’s (黃曙光) resignation as head of the Indigenous Submarine Program and as a member of the National Security Council could affect the production of submarines, a source said yesterday. Huang in a statement last night said he had decided to resign due to national security concerns while expressing the hope that it would put a stop to political wrangling that only undermines the advancement of the nation’s defense capabilities. Taiwan People’s Party Legislator Vivian Huang (黃珊珊) yesterday said that the admiral, her older brother, felt it was time for him to step down and that he had completed what he
Taiwan has experienced its most significant improvement in the QS World University Rankings by Subject, data provided on Sunday by international higher education analyst Quacquarelli Symonds (QS) showed. Compared with last year’s edition of the rankings, which measure academic excellence and influence, Taiwanese universities made great improvements in the H Index metric, which evaluates research productivity and its impact, with a notable 30 percent increase overall, QS said. Taiwanese universities also made notable progress in the Citations per Paper metric, which measures the impact of research, achieving a 13 percent increase. Taiwanese universities gained 10 percent in Academic Reputation, but declined 18 percent
BULLY TACTICS: Beijing has continued its incursions into Taiwan’s airspace even as Xi Jinping talked about Taiwan being part of the Chinese family and nation China should stop its coercion of Taiwan and respect mainstream public opinion in Taiwan about sovereignty if its expression of goodwill is genuine, the Ministry of Foreign Affairs (MOFA) said yesterday. Ministry spokesman Jeff Liu (劉永健) made the comment in response to media queries about a meeting between former president Ma Ying-jeou (馬英九) and Chinese President Xi Jinping (習近平) the previous day. Ma voiced support for the so-called “1992 consensus,” while Xi said that although the two sides of the Taiwan Strait have “different systems,” this does not change the fact that they are “part of the same country,” and that “external
UNDER DISCUSSION: The combatant command would integrate fast attack boat and anti-ship missile groups to defend waters closest to the coastline, a source said The military could establish a new combatant command as early as 2026, which would be tasked with defending Taiwan’s territorial waters 24 nautical miles (44.4km) from the nation’s coastline, a source familiar with the matter said yesterday. The new command, which would fall under the Naval Command Headquarters, would be led by a vice admiral and integrate existing fast attack boat and anti-ship missile groups, along with the Naval Maritime Surveillance and Reconnaissance Command, said the source, who asked to remain anonymous. It could be launched by 2026, but details are being discussed and no final timetable has been announced, the source