North Korean nuke test, US-China disagreements, South Korean and Japanese security risks may have started the great Asian depression
Sam Adelton
Oct. 18, 2006

The North Korean nuke test is more of an economic problem for the world than strategic problem. Every one knows the North Koreans will never be able to use the same without full consent from China and China is not irresponsible – it understands very well what is good for China.

The nuke test has created a scenario which can trigger the Great Depression of Asia. The disagreement and escalation of tension over North Korea between China on one side and Japan, US and South Korea on the other is remarkable. Eventually this will turn out to be a trade war between China and the rest. The economies in Japan and South Korea are already very nervous. Without China, Japan cannot operate its business model. American companies cannot survive without Chinese manufacturing and Indian services.

According to Finance Minister Kwon Okyu of South Korea, the nuke test by North has started a major slow down in South Korean economy because of the perception of risk.

Japan has refused to accept nuclear as an option. But its economy will be especially hurt when punitive actions against China is considered when China refuses to impose UN sanctions against North Korea.

As China gets depressed due to trade sanctions, it will drag the commodity sector with it. Worst hit will be the Japanese and American companies that manufacture in China and sells in US, Asia and Europe.

North Korean nuke test, US-China disagreements, South Korean and Japanese security risks may have started the great Asian depression
Sam Adelton
As China gets depressed due to trade sanctions, it will drag the commodity sector with it. Worst hit will be the Japanese and American companies that manufacture in China and sell in US, Asia and Europe.
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