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The New South Sea Bubble…..?

This interesting Bloomberg article that I received as an alert, rightly reminded and alerted me to the possible potential conflicting situation regarding Southeast Asia Seas, with its increasing importance on the Global International Trade Landscape. The American Vice-President  Joe Biden does not share the concern of many, and in the recent visit to Singapore he made his demarches on this issue to  Japanese and Singaporean counterparts. We feature here his Bloomberg interview on the subject as well:

http://bloom.bg/15XCIw5

Important point is emphasized by Biden on the fact that the USA is a Pacific Power, America isn’t going anywhere and for the most part the success of the region rests on the stewardship of America’s military presence there.

Even if we could make this last point a bit contentious, it is without doubt that the increasing importance of Asia and Southeast Asia in the International Trade arena in general certainly stems in large part from the commitment of the United States to the region, and not just on Diplomatic, political or military fronts, as we could well easily notice the strong economic and corporate presence and interests of American companies of various sorts.

What is most relevant, I suppose in the article is the push of Biden to China to fend off and sign a ‘Code of Conduct‘ for operation on the region’s Seas, which indicates that there’s still the potential for diplomatic and political frictions on the issue. Despite the obvious interest of all parties that there will be a smooth and peaceful resolution of any friction. China, as a major player, and one that will certainly continue to grow in weight and importance, has also major responsibilities in avoiding any conflict or unpleasant difficulties for the free trade that benefits all in the end.

And given the huge yet to be discovered potential of the Southeast Sea….:

‘ China National Offshore Oil Corp. estimates the South China Sea may hold about five times more undiscovered natural gas than the country’s current proved reserves, according to the U.S. Energy Information Administration.

China, the world’s second-biggest economy, rejects U.S. involvement in South China Sea matters. While it has said it wants a code of conduct in the waters, it also seeks to resolve territorial disputes on a bilateral basis. It views the other countries as aggressors, accusing them of breaching a previous agreement on operating in the area.’

….it isn’t hard to see what is at stake.

With stakes that high, agreement is a common sense result.

Last but not least, there’s a reference to North Korea’s nuclear ambitions, that seemed to have escalated the tensions in the region, and the US concern and bid to contain it. As far as China’s views are of concern this is abusive on the part of the US. But  Japan, on its part just wants to be able to regain some military weight, after the heavy restrictions of the World War II defeat, which I see as understandable in a world unpredictable and with danger where we don’t expect! Shivering….Biden tell us that everything will just be economic and diplomatic…..peaceful diplomacy. The world hopes he is right and successful….

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