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.
Genesis is preparing to shake things up with its most luxurious SUV yet, the GV90. Thanks to a new patent filing, we are getting a detailed look at how its Rolls-Royce-style coach doors will work.
New patent reveals Genesis GV90 coach door system
When Genesis first unveiled the full-size SUV at the NY Auto Show last March, it wasn’t the stunning design or advanced tech that caught everyone’s attention. It was the coach doors.
Although we were worried it wouldn’t make it to the production model, like many concepts, the Genesis GV90 will be offered with coach doors.
The ultra-luxe electric SUV was first caught with coach doors earlier this year on a car carrier in South Korea. Just last month, the GV90 was spotted in California with a hinge at the rear to open the coach doors.
After several new patents were filed with the United States Patent and Trademark Office for new door latching devices, we are getting a sneak peek at how they are expected to work.
The patents, titled “Cinching Device For Door Latches in Vehicle,” and “Door Latch Device for Vehicles,” give a pretty detailed explanation of how the Genesis GV90’s coach doors will operate. The “Door Latch Device” uses a door striker on the lower side of the door, which is opened or closed by a hinge unit.
Unlike traditional doors, which use the B-pillar for support, the device is attached directly to the door itself, allowing for hinge-like movement.
The cinching device works in a similar way. It’s also attached to the door and part of the vehicle. However, unlike most of its kind, Genesis found a way to use a single cinching device to control multiple units. Again, the device is used for B-pillarless doors that swing open.
Genesis already said that B-pillarless coach doors are now feasible in production vehicles. The patent reveals a glimpse into how the luxury automaker could make it a reality.
Although the Genesis GV90 is expected to be offered with coach doors, they will likely not be standard. Other variants, with traditional door handles, have also been spotted testing in the US and South Korea.
Genesis is expected to launch the GV90 in mid-2026. It will be built at Hyundai’s Ulsan plant in South Korea. The flagship Genesis SUV is scheduled to debut on Hyundai’s new eM platform, which the company said will “provide 50% improvement in driving range.” It will also be loaded with the latest technology, software, connectivity, and Level 3 or higher autonomous driving capabilities.
Source: USPTO
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Environment
Podcast: Tesla Model YL, more Tesla probes and lawsuits, new Nissan Leaf pricing, and more
In the Electrek Podcast, we discuss the most popular news in the world of sustainable transport and energy. In this week’s episode, we discuss the launch of the Tesla Model YL, more Tesla probes and lawsuits, new Nissan Leaf pricing, and more.
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As a reminder, we’ll have an accompanying post, like this one, on the site with an embedded link to the live stream. Head to the YouTube channel to get your questions and comments in.
After the show ends at around 5 p.m. ET, the video will be archived on YouTube and the audio on all your favorite podcast apps:
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July EV sales looked strong on the surface, but the looming impact of tariffs and the end of EV tax credits reveal a more complicated picture, according to Cars.com’s new Industry Insights report.
New-vehicle sales jumped 6.6% year-over-year, even as dealer inventory fell for the first time since 2022. Much of the spike came from a “buy now” mindset as shoppers raced to lock in deals before tariffs and policy changes drive prices higher. For EVs in particular, the looming end of the federal $7,500 tax credit on September 30 added another layer of urgency.
EV inventory growth is slowing – for now
Shoppers technically have more EV options than ever, with 75 models on the market – a 27% jump from last year. But new EV inventory growth has slowed to just 9% year-over-year, the lowest since before the Inflation Reduction Act revived federal incentives. Analysts expect another wave of buying before the tax credit vanishes, but after that, higher prices could cool demand, especially with most new EVs still priced in the premium-to-luxury bracket.
Tariffs set to push prices higher
Automakers absorbed an estimated $12 billion in tariff costs in the second quarter alone to keep sticker prices steady. That’s not sustainable, and once those costs flow into 2026 models, EV buyers could be facing thousands more on the same car.
At current 25% tariff levels, the average new-vehicle price could jump from $48,000 to $54,400 – about $6,400 more. Even if trade deals trim tariffs to 15%, buyers would still see increases of more than $4,000. That’s a huge gap compared to household incomes, which grew only 1% last year.
The used EV market is heating up
While new EV prices are bracing for impact, the used EV market is gaining momentum. Inventory is up 33% year-over-year, while average prices dipped 2% to $36,000. Affordable used EVs under $25,000 – including the Tesla Model 3, Nissan Leaf, and Chevy Bolt EV – are selling 20% faster than average. Many also qualify for the $4,000 used-EV tax credit, which, like the new EV credit, ends September 30.
Read more: Global EV sales hit 10.7M in 2025 – Europe surges, US stalls
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