Japan and South Korea have a lot at stake in a free and open South China Sea
China has so far not acted in an aggressive manner toward shipping in the South China Sea, but the very potential of action creates a clear threat to the economies of Japan and South Korea.
Kazuhiro Nogi | AFP | Getty Images
The following commentary is from Kevin Klowden, chief global strategist of Milken Institute.
News coverage of the weekend’s Group of Seven meetings focused on Ukraine, but China’s rising global presence was the other big topic on the G7 agenda. For two of East Asia’s biggest economies, in particular, the implications of that rise are critically important.
China wants to be the great military and political power of East Asia. Nowhere is that more evident than in President Xi Jinping’s “nine-dash” declaration, through which Beijing claims sovereignty over almost all the South China Sea. And of all the countries with cause to be concerned about that claim, perhaps none have more on the line than Japan and South Korea.
Most of the world is focused on the resource and military implications of Chinese claims to the islands in the region, and Beijing’s development of what is becoming the world’s largest navy. For Japan and South Korea, the threat to their supply chains and energy imports is a far more real and present issue.
In particular, Japan and South Korea are concerned about Chinese declarations which invoke not only the right to inspect cargo, but also the ability to restrict traffic. Neither Japan nor South Korea has any political interest in the ownership of the Spratly Islands, or in China replacing the United States as a dominant naval power. However, they have a strong economic stake in moving their energy imports and manufacturing components without fear of restriction. Even in a non-wartime situation, China has taken the position that the South China Sea is a controlled territory rather than open international waters under Chinese guardianship.
China has so far not acted in an aggressive manner toward shipping in the sea, but the very potential of action creates a clear threat to the economies of Japan and South Korea. China wouldn’t even have to directly stop vessels — it could merely electronically track specific cargo, or carry out inspections or diversions. Such actions would raise the specter of unpredictability and significantly rising costs.
For Japan and South Korea, the role taken by the United States in the post-World War II period was far less disruptive, not only because of their alliance but, more importantly, because the United States acted as a guarantor of free trade and protected movement through the corridor.
Linking the two countries to trading partners in Southeast Asia, India, and beyond is going to increase rather than decrease in importance.
Kevin Klowden
Milken Institute
Few people outside Japan or South Korea focus on or understand just how significant the South China Sea is when it comes to regional and even global energy supplies. Significantly, the sea is estimated to carry 30% of the world’s crude oil, supplying China and providing a vital lifeline for the energy-dependent economies of South Korea and Japan.
For Japan, the 2011 Tohoku earthquake and subsequent nuclear accident at Fukushima only exacerbated that dependence. The resulting curtailment of Japan’s nuclear program has left the country dependent on energy imports, with as much as 98% of Japanese oil coming from the Middle East.
In many ways, South Korea is even more dependent on energy imports than Japan, making oil and natural gas imports especially significant.
The South China Sea is important in more than just energy. It also serves as a key passageway for Japan and South Korea’s global supply chains. Estimates suggest that the sea carries between 20% and 33% of global trade; for Japan, that figure reaches as much as 40%.
As global supply chains regionalize, the role of the South China Sea in the Japanese and South Korean economies will only grow. Linking the two countries to trading partners in Southeast Asia, India, and beyond is going to increase rather than decrease in importance.
Japan and South Korea have been able to rely on the stability of the South China Sea as a conduit for driving their economic growth, even as the global political situation has changed over the decades. Significant shifts, including the Vietnam War and the end of the Cold War, haven’t stopped trade in the sea from growing more and more important.
As the United States balances commitments in Europe, Asia and elsewhere, the three strongest economies of East Asia — China included — all have a vested interest in ensuring the stability of trade, supply chains and energy flows.
For South Korea and Japan, trade remains stable in the South China Sea for now. But with China increasingly looking to assert itself and change the status quo in its favor, it’s essential that both countries ask themselves: How much are they willing and able to concede to China in the region before it becomes untenable? And are they prepared with alternatives that will allow them to compete economically?
Knowing the answers to those questions and being prepared for a more Chinese-dominant future in the South China Sea is important for all three countries — even if the status quo holds for now.
Chinese equipment manufacturer SANY says its new, SY215E 25 ton electric excavator offers all the power and performance of its diesel competitors while dramatically reducing both noise, total cost of ownership, and (of course) emissions … but the number that stands out to me is 422.
As in: the machine’s massive, cobalt-free, 422 kWh lithium iron phosphate battery pack. (!)
We first covered the SY215E last summer, when a prototype machine arrived in the Netherlands for a demonstration run. The electric excavator garnered significant interest among the more than 200 customers SANY demonstrated it for, resulting in “dozens of pre-sale orders,” according to the company’s official release.
Now, the big equipment asset is ready for customer delivery. That means we not only have some additional marketing copy from the SANY website, but a whole lot of specs, too, making it easier to how this electric excavator stacks up to the Volvo CE and Liebherr earthmovers. From the company’s Dutch website:
The 23-tonne (25 Imperial tons) SY215E electric excavator allows you to work with zero emissions, low noise levels and a lower total cost of ownership thanks to its reduced maintenance costs. Powered by a state-of-the-art lithium iron phosphate (cobalt free) battery, this versatile machine has been designed with a fully flexible, automotive standard (CCS2) charging solution and can achieve a full days work (6 – 8 hrs) off a single charge.
The driver’s comfort is prioritized with a Grammer chair and with spring-loaded lever stands, which reduces the strain during long working days. In addition, the machine is designed to minimize the noise level, with a measured maximum sound volume of only 71 dB in the cab.
The company says all its features and benefits add up to significant fleet savings compared to traditional diesel-powered machines. “With an annual work of 3,000 hours,” the company claims, “a diesel-powered machine can cost around SEK 765,000 ($76,550 US) in fuel, while this electric model only costs around SEK 450,000 ($45,035, as I type this). This means an annual saving of approximately SEK 315,000 ($31,520) in operating costs alone.”
That’s significant. And, across a fleet of dozens of such machines operating for years on end, adds up fast.
Electrek’s Take
If you’re not familiar with SANY, you should be. The company is a major player in the Chinese heavy equipment space, and they have genuine global ambitions with not just their electric off-road equipment assets, but on road trucks as well.
In their own words:
As a global leader in construction engineering, SANY is dedicated to delivering high-quality products and services. In response to the global energy shortage, SANY has long embraced energy-saving and emission reduction initiatives, focusing on electrification. In 2023, SANY introduced over 40 new electric products, achieving sales revenue of $449.4 million USD. SANY remains committed to innovation and supporting the energy transition in Europe with the best products, services, and support.
$449.4 million may not be at the same multibillion level as Caterpillar or Volvo, but it’s certainly not nothing. And it seems like there’s a lot more to come.
That’s SANY, then, but it doesn’t quite cover the insanity of tying up 422 kWh of battery capacity on a single machine, does it? Maybe I’ve been drinking too much of the MOOG and Milwaukee Kool-Aid over the last couple of days, but it seems crazy to have five or six EV’s worth of battery locked into one machine that may very well spend hours (or days) idled on a given job site. Battery swap technology, surely, is the way to go.
That’s my take, anyway. Click those links in the paragraph above to see what I mean, then come back here and let us know what you think of putting those big batteries in a single excavator in the comments.
SOURCE | IMAGES: SANY Europe; via LinkedIn.
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![E-quipment highlight: KUKA robots keep the kegs of Yuengling moving [video]](https://i0.wp.com/electrek.co/wp-content/uploads/sites/3/2025/03/kuka-keg-robot.jpg?resize=1200,628&quality=82&strip=all&ssl=1)
It may market itself as “America’s Oldest Brewery,” but the D.G. Yuengling and Son, Inc. brewery in Pottsville, Pennsylvania has been on the leading edge of manufacturing innovation for decades. Recently, Yuengling replaced its original automation equipment with new, state-of-the-art robots from Kuka.
Built by KUKA Robotics and deployed at both Yuengling’s keg line at Millcreek (not far from the company’s original brewery, which was founded in 1829 and is still in operation) and its Tampa, Florida keg line opened in 2006, the new factory robots are faster, stronger, and more energy efficient than the machines they replaced, saving the company on both time and electricity while providing a more simplified, uniform maintenance schedule than the older systems they were brought in to replace.
And, as with almost all things electric and automation, there’s a safety advantage to having machines swinging around heavy things instead of people.
“We basically wore out our original (machines),” explains Bill Friedman, Electrical Services Manager at Yuengling’s Tampa, Florida, facility. “Just their ages and the number of hours on them justified the need for updated automation … plus, people don’t want to handle kegs all day, and there’s always a risk of injury.”
Each of Yuengling’s two keg lines utilizes a pair of KUKA robot arms that are identical in size, reach and payload to perform depalletization and palletization of the company’s lager, at the rate of about four half kegs (15.5-gallon capacity) and eight quarter kegs (7.25-gallon capacity) per pallet. Each half keg weighs in at about 165 lbs. (75 kg), and each KUKA robot handles two kegs at a time during the palletization process.
Electrek’s Take
I love automation like this: real, effective machinery that’s improving the lives of the people that live and work around it. This kind of no-nonsense, real-world robotics has been improving people’s lives for decades behind the scenes, and there is virtually zero chance that something like the Optimus robot from Tesla (TSLA) will ever come close to delivering the level of service that these KUKA arms can, today.
The brewing company put together a great video at the Yuengling keg line in Tampa, which I’ve included here (below). Give it a minute of your life, then let us know how you think a humanoid robot might compare in the comments.
KUKA robots at the Yuengling keg line
SOURCE | IMAGES: KUKA Robotics.
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US President Donald Trump recently announced a raft of new, expensive import tariffs on cars, trucks, and even parts and batteries imported into the country – which means that Ford might have timed its BlueOval SK battery factory going online perfectly.
In Washington last week, President Trump rocked the automotive world by by announcing huge, 25% duties on cars and major automotive components not manufactured in the United States beginning April 2nd.
Over in Kentucky, the BlueOval SK factories, part of a $9.63 billion joint venture (JV) between Ford and the South Korean battery experts at SK On, is eventually expected to employ more than 7,500 people in operations roles, churning out more than 120 gigawatt-hours’ worth of battery capacity per year once fully operational. And, crucially, they’re expected to go online “at the end of Q1.”
In other words: like, right now.
Good for F-150 Lightning
Automakers and car dealers alike are scrambling to understand what the new Trump tariffs will mean for the market, but some automakers might see the new tariffs as an opportunity to pull ahead of the competition – and that’s especially true of companies that have invested billions in US manufacturing.
Ford is one of those companies, and the newly unionized BlueOval SK battery factories should begin shipping batteries to the Dearborn, Michigan facility that manufactures the F-150 Lightning any day now. That move should give the electric F-series some price insulation that other EVs in the same price range (I’m looking at you, Jeep Wagoneer S) won’t enjoy.
The Ford Mustang Mach-E, however, is another matter.
Bad for Mustang Mach-E
Ford’s other EV, the Mustang Mach-E, is popular enough that it’s actually outselling the gas-powered Mustang, but it’s lost some of its early luster and market share to other excellent, newer sporty electric crossovers like the Hyundai IONIQ 5, Honda Prologue, and Porsche Macan EV.
This might seem like bad news for the Mach-E, but both the electric Mustang and F-150 have already been on the market for nearly five years – and that’s with minimal upgrades or aesthetic updates outside of an off-road-focused Rally package (shown, above, tearing up the snow in Norway).
Given the surplus production capacity at Ford’s Rouge Electric Vehicle Center, and the imminent launch of EV production at BlueOval City later this year, it’s not completely crazy to think that Ford could soon announce plans to build an updated, or even next-generation Mustang Mach-E at one of these US facilities.
How good would their timing be on that!?
While you think about how you’re going to answer that question in the comments section, use the links below to find 0% financing deals on Ford’s current electric vehicle lineup before the April 2nd day of automotive reckoning. Ford also announced a 0% financing deal plus $4,000 in bonus cash on the F-150 Lightning pickup, while Ford Pro customers buying an F-150 Lightning for their commercial or public fleet can get even better deals on the OG electric trucks.
Happy shopping!
Original content from Electrek; images by Ford.
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