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WORLD NEWS Friday 18 January 2019

BOJ warns Japan faces new risks as population shrinks

By KAORI HITOMI keep lending costs ultralow change," he said.
Associated Press in the longer term. Japan's population began
TOKYO (AP) — Japan faces The conventional strategy shrinking several years ago
unforeseen risks in guiding of controlling short-term and is rapidly aging. That
economic policy as its pop- interest rates to keep infla- has discouraged compa-
ulation of about 126 mil- tion in check while stimulat- nies from investing and hir-
lion ages and declines, the ing business activity is well ing within Japan, while they
governor of its central bank understood, Kuroda said. direct their efforts toward
said Thursday. But he warned that the un- faster growing overseen
Bank of Japan Gov. Har- conventional methods the markets.
uhiko Kuroda told fellow Bank of Japan has adopt- On the other hand, aging
financial leaders Thursday ed can have unexpected populations create new
that policies must be de- consequences. markets for many products
vised to prevent the shrink- Kuroda has repeatedly em- Bank of Japan Gov. Haruhiko Kuroda delivers a speech at a and services, so there are
ing population from hinder- phasized the limits to what symposium in Tokyo Thursday, Jan. 17, 2019. positives along with the
ing economic growth. the central bank can do to Associated Press challenges, he added.
Since taking his post in April promote sustained growth Kuroda and other senior
2013, Kuroda has flooded in an age of rising national target of about 2 percent. "Policymakers need to financial officials were
Japan's economy with debt and feeble consumer Kuroda said one of the po- manage prudential policy speaking at a seminar
cash through central bank demand. He has urged tential pitfalls of the current appropriately, taking into linked to Japan's hosting
asset purchases to help the government to push policies could be if banks account the fact that the of the Group of 20 major
fight deflation and keep ahead with labor and oth- use cheap credit to seek risk profiles of financial in- economies in 2019. The
the economy growing. The er reforms to help achieve higher yielding, high-risk in- stitutions could be dra- G-20 summit is due to be
BOJ also imposed a nega- faster growth and attain vestments harmful to finan- matically transformed dur- held in Osaka later this
tive interest rate policy to the government's inflation cial stability. ing times of demographic year.q

Taiwan holds live-fire exercises

following China threats

By JOHNSON LAI na's growing military might, any price" to ensure Chi-
Associated Press underscoring worries about na's sovereignty, Li told
HSINCHU, Taiwan (AP) — a possible attack against Richardson at their Tuesday
Taiwan held live-fire exer- Taiwan. meeting. China considers
cises along its east coast Taiwan's independence- Taiwan, which split from the
Thursday amid renewed leaning President Tsai Ing- mainland amid civil war in M60A3 Patton tanks move during a military exercises in Taic-
threats from China to bring wen has made national 1949, as an integral part of hung, central Taiwan, Thursday, Jan. 17, 2019. Associated Press
the island under its control defense a priority while Chinese territory. U.S.-Chi-
by force if deemed neces- refusing China's demand na relations have become
sary. that she recognize Taiwan increasingly frayed on the
Artillery and assault heli- as a part of China. That's military and economic
copters fired at targets off led to Beijing ratcheting fronts over the past year.
the west coast city of Taic- up economic, military and President Donald Trump im-
hung, while French-made diplomatic pressure on the posed tariff increases of up
Mirage fighter jets took off island of 23 million. to 25 percent on $250 bil-
amid rainy conditions from In a meeting with U.S. Chief lion of Chinese imports over
the air base at Hsinchu to of Naval Operations Adm. complaints Beijing steals
the north. John Richardson in Beijing or pressures companies to
The drills are Taiwan's first on Tuesday, China's Chief hand over technology. Xi
since Chinese President Xi of Staff Li Zuocheng issued responded by imposing
Jinping on Jan. 2 reassert- a warning against foreign penalties on $110 billion of
ed Beijing's willingness to forces coming to Taiwan's American goods. And last
use military force to bring assistance. The U.S. is Tai- year the Pentagon disinvit-
self-ruling Taiwan under wan's chief source of mili- ed China to a major, mul-
Chinese control. tary hardware and is le- tinational Pacific exercise,
The drills also follow a new gally bound to respond to citing Beijing's militarization
Pentagon report laying out threats against its security. of man-made islands in the
U.S. concerns about Chi- China's military will "pay South China Sea.q