Japan's Ishiba, S.Korea's Lee agree to advance bilateral ties on G7 sidelines
Japanese Prime Minister Ishiba Shigeru has met with South Korea's new president Lee Jae-myung for the first time. The leaders say they want to maintain close communication and work together on key issues. They spoke on the sidelines of the G7 summit in Canada, coming about two weeks after Lee took office. Ishiba noted that this year is the 60th anniversary of Japan and South Korea normalizing diplomatic ties.I hope the vibrant dialogue between the citizens of our two countries will continue to grow. I also hope the cooperation and partnership between us will be a powerful force for both the region and the world.
Lee said despite their differences, he hopes they will build a youthful relationship together. Namely, they said they would continue to coordinate their responses to North Korea's nuclear and missile development program. They also agreed to visit each other's countries in the future. Ishiba and the other G7 leaders have wrapped up talks.Summit host Canadian Prime Minister Mark Carney saysThey're beginning to build a new era of cooperation. But members were unable to come together to issue a joint statement on Ukraine.
G7 leaders to wrap up summit in absence of President Trump
Earlier, Zelensky stressed the need for additional sanctions on Russia.Ukrainian President Volodymyr Zelensky and NATO Secretary-General Mark Rutte attended the summit on Tuesday.
We are ready for the peace negotiations, unconditional ceasefire. I think it's very important, but for this we need pressure.
However, the summit revealed gaps between European leaders and US President Donald Trump on whether to apply more pressure against Russia. On Monday, Trump said he wanted to wait and see whether Moscow would agree to a new ceasefire before applying new sanctions. He then left midway through the summit in response to the growing tensions in the Middle East. Reuters News Agency reports Canada dropped plans to issue a strong statement on Ukraine after resistance from the US. After Tuesday's talks, German Chancellor Friedrich Merz said he's returning to Germany with cautious optimism that America will decide to impose further sanctions against Russia in the coming days.
French President Emmanuel Macron said they all recognize the need to continue to support Ukraine.
Russian attacks continue, Zelenskyy considers next steps
While the leaders met, the fighting continued in Ukraine. Officials in the capital say Russian attacks killed 10 people and injured more than 100.The Ukrainian military says Russia used 440 drones and 32 ballistic and cruise missiles to hit Kyiv from Monday night into Tuesday. The attacks reportedly damaged apartment blocks and educational institutions.
Officials say a ballistic missile partially destroyed a nine-story residential building.
We must stop Russia. We can't live like this. Russia will attack other locations tomorrow. So many people have been killed.
President Zelenskyy said in a social media post the onslaught on the Capitol was one of the most horrific of the conflict. He described such attacks as pure terrorism and accused Russia's president of doing this because he wants the fighting to continue. And earlier I spoke with NHK World's Tanaka Kenichi in Kiev about Zelenskyy's next steps and move. More.
So Keiichi, we just showed images of destruction in the capital, scenes you've been seeing firsthand. Tell us more about the reality there.
There needs to be a breakthrough in the situation for all of this to end. So what It's next for President Zelenskyy. His meeting with President Trump was canceled. So what will be the strategy going forward?
I think it should be centered on maintaining Trump's attention.
Zelenskyy is reportedly concerned that the US is shifting its focus to dealing with the fighting between Israel and Iran. Zelenskyy wanted to secure additional sanctionson Russia at the G7 summit. He argues that pressure through those measures is the only way to force Moscow to stop its attacks. Zelenskyy also wanted to directly stress the importance of a ceasefire to Trump, so his early departure served as another big blow. Zelenskyy knows his country is in a tough position on the battlefield. Russian forces recently claimed they had entered the eastern region of Donipropetrovsk. It's an attempt to further expand occupied territory. For Ukraine, the fight will become more difficult as time passes. It can't compete with Russia's larger military and weapon production capacity on its own.
So that's why military support from the US and Europe remains a lifeline. And, Zelenskyy says he cannot imagine containing the fight without US help. So, he will continue trying to ensure the Trump administration keeps it coming.
Japan publishes routes of Chinese aircraft carriers operating around country
Japan's defense ministry has published the routes of two Chinese aircraft carriers in borders around the country.The government rarely discloses such information. The release came after carriers Liaoning and Shandong were first spotted at the same time in the Pacific earlier this month. The ministry said fighter jets from the Shandong flew extremely close to a Japanese maritime self-defense patrol plane on June 7 and 8. It expressed serious concerns over the incident. The ministry added that the Liaoning, shown in red, passed between Okinawa Prefecture's main island and Miyagoshima Island in late May. it traveled southward to a position east of the Philippines. The vessel then changed course and re-entered Japan's Exclusive Economic Zone on June 7, near Minami-Torishima, the nation's easternmost island. The ministry said the Shandong, shown in blue, first headed eastward in waters southeast of Miyakoshima Island on June 7. It then sailed clockwise within or around Japan's EEZ, near Okino-Torishima Island. On Monday, the ship was spotted moving westward southeast of Miyakojima Island. Some 230 take-offs and landings of carrier-based aircraft were reportedly confirmed. As of Tuesday, the two vessels were in the Pacific, sailing toward China.
Business
Let's see what's happening in the world of business. Here's Gene Otani from The Business.Thanks, Miki. In our top business story this hour.
Japan firms boost rice imports amid jump in domestic price
Japanese companies are ramping up imports of rice despite a high tariff. This is as the retail prices of the domestic grain remain high.Japan's government imports about 770,000 tons of tariff free rice every year under a system called Minimum Access.
However, direct imports by the private sector face a levy of 341 yen, or more than $2 per kilogram.
Despite this, corporate imports in April surged to 6,800 tons, or more than double the amount in all of fiscal 2024, and imports last year were the highest in 26 years. US rice accounted for about 80% of the April figure. A 5 kilogram bag of California rice sells for about 3,500 yen or $24 on store shelves in Japan. In comparison, the average retail price of domestic rice in the week through June 8 was around 4,100 yen or $29. That's still higher than imports, even after the government sold rice from stockpiles to nudge prices lower.
A rice policy analyst says. It's a distorted situation when imported rice with tariffs is cheaper than the domestic crop.
It's most abnormal that domestic rice has become more expensive when the tariffs were introduced in order to make imported rice too expensive to buy.
Inagaki says the 2025 harvest in JapanWon't be enough to refill government stock rice stockpiles while also meeting general demand. He says the government needs to incentivize farmers to increase the rice crop through the 2026 harvest to stabilize prices.Majority of Japanese firms think US tariffs will hurt earnings
A poll finds that more than half of Japanese companies believe US tariffs will hurt their earnings.Tokyo Shoko Research surveyed about 7,000 businesses online this month.
Nearly 58% expect a negative impact from the new tariffs announced by the Trump administration earlier this year. Almost 12% of all respondents say the damage could be serious. About 38% don't see effects on their earnings. The research firm says steel makers and rubber goods manufacturers, including tire makers, are especially worried. Just over 5,800 firms responded to a survey question on whether they think the tariffs will affect wage hikes for the next business year. Nearly one in three believe there will be an impact.
The employers said they may have to forego hikes in base pay, bonuses or even regular wages. Tokyo Shoko Research notes that even Japanese companies that don't trade directly with the US could feel some pain.
These tend to be small and mid-sized firms that support the auto and steel sectors. The polling firm is urging the government to come up with support measures for affected businesses.
Japan posts trade deficit for 2nd month
Japan posted a trade deficit for the second straight month in May, largely due to a drop in exports to the United States. The finance ministry says the shortfall came to 638 billion yen, or $4.4 billion. The value of exports fell 1.7 percent from a year earlier. Shipments to the US dropped 11 percent, with vehicles tumbling about 25 percent. Ministry officials say the Trump administration's tariff measures since March haven't had a major impact on Japan's overall trade figures with the US.Meanwhile, imports last month were down 7.7 percent due to smaller inbound shipments of crude oil and coal amid lower energy prices.
US strategist talks Trump tariffs, Japan, global economy
Donald Trump returned as US president about five months ago, and his signature tariff policies have reshaped global economic relations. NHK World's Hirata Miyu interviewed US investment strategist George Bory for his take on what's ahead.The first topic was why Japan's Prime Minister Ishibashigeru and President Trump were unable to announce an agreement on tariff issues when they met at the G7 in Canada. This despite the close trading and security relationship between the two countries.
We think that the Prime Minister is really is, is campaigning, is is negotiating, trying to push down tariffs specifically on the auto sector. And I and our assumption is that President Trump doesn't want to move tariffs below 10%. So I think that's probably the biggest sticking point between between the two countries. But as you as you mentioned, like the relationship's very close. Japan lends the US lots of money, buys lots of treasuries, and sort of close kind of trading partners. So really important that an agreement is is ultimately kind of agreed upon. But it will be tricky to figure out kind of where the balance sort of fits.
Bory says he was surprised by the scale of Trump's tariff policy. He added that the US economy is slowing, but. Resilient.
The announcement with respect to tariffs when they were initially announced back in April were much bigger than the market expected. It was much bigger than than we expected. We were expecting tariffs, but not as high and certainly not as broad that the US economy is still showing signs of deceleration. slower growth, but still positive growth and and proving to be fairly resilient. So we're not expecting a recession, but we're simply expecting is kind of a slowdown in growth, a deceleration in growth, probably something close to maybe one, one and a half percent growth.He expects that global economy will also face headwinds.
Now, expectations are that the global economy also will slow. It debate as to how much, but tariffs are a tax, and and that tax kind of slows growth as we move through time. And we're seeing signs of that even here in Japan, expecting growth to sort of slow moderately. Europe is holding up a little bit better, but growth is already kind of slowing, which is why the ECB is is cutting rates, and China is trying to stimulate a bit, but we're not sure if that will be enough to help global growth.
Bory expects the Fed to cut rates, but he added that they are in no hurry because they are still assessing the impact of tariffs on the economy. He adds that Trump's tariff can be an effective long-term tool for economic leverage because it's a swift in taxation and it should incentivize more production in the US. Relative to Asia economies, Bory says the higher tariffs on China could push more production into other Asian countries that have a lower tariff rate on exports into the US.
All right, let's have a look at the markets.
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That's a look at business news. Miki, I'm going to hand it back to you.
Thank you very much, Gene. Now let's go to Shibuya Aki in Newsline in Focus. We'll be looking at something that powers all of our lives, semiconductors.
US pressure: Taiwan's high-stakes chips
Taiwan produces about 70% of the world's semiconductor chips and 90% of the most advanced ones, vital for smartphones, autonomous driving, and generative AI. US President Donald Trump has been pushing to get that technology into the US, threatening new tariffs on semiconductors to promote domestic investment. Fresh tariffs would deal a serious blow to Taiwan. But conceding too much to American pressure poses the risk of leaking critical technology.Here's a look at how the leader in the global chip supply chain is treading carefully as it faces pressure from the United States.
Taiwanese chip maker TSMC produces over 90% of the world's most advanced semiconductors. The firm continues building new plants at home to keep up with demand for AI chips, and the US is not happy.
It sees the heavy reliance on Taiwan for these chips as a major risk, as the world got a taste of when COVID plant closures caused a global chip shortage.
Taiwan pretty much has a monopoly on that market. We must be able to build the chips and semiconductors that we need right here and American factories with American skill and American labor.
To bring the business back home, Trump has been hinting at slapping massive tariffs on imported chips. All this has put pressure on TSMC to relocate more production to the US. In March, its CEOCC Wei met with Trump and pledged a further $100 billion on top of an ongoing $65 billion investment package for a US-based plant.The semiconductor complex in Arizona will produce 3 nanometer chips, the most advanced ever made in the US. for AI and other cutting-edge applications.
Taiwan exporters as a whole are taking Trump tariff threats seriously.
At a US government event seeking foreign investment, Taiwan sent a 110-strong delegation of companies.
Relocating to the US is painful for Taiwanese companies. But as a general trend, we must make every effort to move closer to the US.
America's pressure is also reverberating across Taiwan's political realm. Lawmakers recently met with their US counterparts to gauge the atmosphere around trade relations.
We are willing to show we are good friends. Even like families of this alliance, I believe we can reach some kind deal very soon.But negotiating with the United States is a double edged sword. The outflow of critical tech could undermine its supremacy in the industry, impacting the economy and its Silicon Shield defense strategy. With the shifting landscape, Taiwanese firms are seeking new partners outside the US to strengthen their global position.
Skytech has its sights set on Japan as a key strategic partner.
Japan's strength lies in materials and equipment. Taiwan's strength is in design and manufacturing, with rich experience. Together, we can complement each other and form a win-win relationship.
Company members are in Japan to take part in a matching event for semiconductor firms.
We saw many opportunities for collaboration with potential partners. It was a very meaningful exchange.The feeling was mutual on the Japanese side.
We see Taiwan's semiconductor plants as global hubs of leading technology that we don't have access to. By working with them, we hope to acquire new knowledge and insights.
While Taiwan's semiconductor industry treads carefully with the US, it faces a separate, delicate situation with another key player, closer to home: China. Not only is it a major importer of Taiwanese chips, it also hosts many Taiwanese plants.At a think tank in Taiwan, researchers discuss strategies for navigating US restrictions on semiconductor exports to China.
A major challenge is that many Taiwanese companies are deeply rooted in China. We need to explore how to achieve a painless decoupling.
Advanced chips should still go to the US and elsewhere, while lower grade custom versions can be sent to China. That way we can split the market with one set of products for China and another for partner countries.A Taiwanese lawmaker who visited members of Congress in Washington says the key to balancing business with both the US and China is to maintain its technological edge.
For Taiwan, it's crucial to create a secure and collaborative economic environment. We're also focusing on cutting-edge process technology and new materials. Maintaining technological leadershippath to survival.While maintaining close ties with the US, Taiwan is also guarding its position with China by preserving the so-called silicon shield, the idea that semiconductors can serve as a form of national defense. The stakes may be high, but Taiwan is sure to remain committed to retaining its crown as global semiconductor powerhouse. And that's all for me.
JR East: Power supply system malfunction likely caused E8 Shinkansen shutdown
East Japan Railway has launched an investigation into a possible flaw with its newest series of Shinkansen bullet trains. This comes after four separate incidents involving the train in a single day. An out-of-service E8 train became unable to accelerate as it was traveling in Tochugi Prefecture on Tuesday morning. The Tohoku Shinkansen Line was forced to suspend service between Tokyo and Sendai for over five hours as a result. The train was on a test run after it had been delivered by the manufacturer. JR East found the train's motor cooling system had failed due to a power supply malfunction. This may have triggered the safety mechanism in place to prevent overheating. Later that day, a separate E8 on a test run was unable to start moving again after stopping at Koriyama Station. And another train, this one carrying passengers, was stopped in Fukushima City for an inspection after the car monitor screen indicated an issue. And a similar incident occurring involving a train stopped at Oyama Station.The E8 series debuted on the Yamagata-Shinkansen line in March of last year.
check of the weather
It's time for a check of the weather with our meteorologist Jonathan Oh. So Jonathan, many parts of Japan are still sunny and unusually hot. What's the latest?Tokyo saw 34.4 degrees and it looks like that we may be able to get just a little bit of a reprieve from this as we go into the next few days. I mean we're still expecting highs to be in the 30s in Tokyo, but at least won't be in the mid 30s. We still have influence of high pressure, a couple of them that's helping to keep a dome across Japan and keeping things dry and sunny.
But we will see a couple of systems coming in from the West. I'll have bring some rain into place like Sapporo by Saturday and Fukuoka by Sunday. And yeah, it's still above average for this time of year in Tokyo, Osaka, Fukuoka and especially into Sapporo as well. So continue to take the proper precautions, even if it's only a couple degrees.
Cooler compared to what we've seen the past few days. If you're going to be spending any type of time outdoors, especially under sun, take the proper cautions to avoid heat stroke. You know, stay hydrated. Make sure that you wear life's loose, not loose, light clothing to help you out with that.
Meanwhile, very different story across southern portions of China. Heavy rainfall. It's causing some real problems. Here's some video and you look at the video, it's going to give you the story right away. Right there you're seeing. The inundation by seasonal heavy rain and it's prompting officials to issue the highest alerts for rain storms in Guangdong province. Chinese state media reported that more than 170mm of rain fell in just 24 hours, submerging half of the roads, causing water levels of local rivers to reach record highs.
And also being reported, the flooding affecting more than 78,000 residents. And so we are expecting that rain concern to be lifting toward the north and that's going to bring some more heavy rainfall into areas along the Yangtze River basin. 250 millimeters of rainfall possible in a short period of time.
Thunderstorms into Beijing, showers in Shanghai, also into Hong Kong. Chongqing looking at some wet weather with high of 30 as we go through today on Thursday. So just be on the lookout for some pockets of heavy rainfall in some of these locations as you go forward in time. Hope you have a good day wherever you are.
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And that's NHK Newsline for this hour.
I'm Yamamoto Miki in Tokyo. Thank you for staying with us.
