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.
Mazda calls it a “dream car.” The EZ-60 is about the size of a Tesla Model Y, and it will be sold globally. After racking up over 20,000 pre-orders in just over two weeks, Mazda’s new electric SUV is now arriving at dealerships across China.
Mazda’s EZ-60 electric SUV reaches dealerships in China
The EZ-60 is Mazda’s first electric SUV from its joint venture with Changan Auto. Following the EZ-6, it’s the second dedicated Mazda EV to land in China.
After its debut on April 23, Changan Mazda announced that the EZ-60 had secured over 10,000 pre-orders in 24 hours, a new record for joint-venture electric SUVs. With the current tally at over 20,000, Mazda’s new electric SUV is now arriving at dealerships across China.
The EZ-60 is based on Changan’s hybrid platform and uses a CATL LFP battery for a CLTC range of up to 600 km (372 miles). It’s also available with a 1.5L gasoline engine, providing a combined range of over 1,300 km.
To keep pace in China’s competitive EV market, Mazda’s electric SUV is specifically designed for Chinese buyers.
It includes “a number of world-first technologies,” including a 100″ naked-eye 3D head-up display (HUD), voice recognition, and advanced safety systems.
Mazda’s new EZ-60 electric SUV is about the same size as a Tesla Model Y, measuring 4,850 mm in length, 1,935 mm in width, and 1,620 mm in height.
To lure potential buyers, Mazda launched a deposit program this week. With an initial 10 yuan deposit, buyers can grow their account by 10 yuan every day with an “expansion code.”
Test drives are expected to be available in July, with the first customer deliveries set to follow in August. Like the EZ-6 sedan, Mazda’s electric SUV will be sold in several global markets, including Europe, starting next year. It will launch under the name CX-6e.
In Europe, the electric sedan is called the Mazda 6e. It will be available in two battery packs: 68.8 kWh or 80 kWh, offering a WLTP driving range of 479 km (300 miles) and 552 km (343 miles), respectively.
More info, including final specs and prices for the global version, will be revealed closer to launch. Check back soon for the latest.
Source: CarNewsChina, Changan Mazda
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Environment
Trump will hold a rally at U.S. Steel as investors seek clarity on Nippon deal. Here’s what we know
President Donald Trump will hold a rally Friday at a U.S. Steel plant near Pittsburgh, a week after signaling that he had cleared a controversial merger with Japan’s Nippon Steel.
Trump is scheduled to deliver remarks at 5 p.m. ET at U.S. Steel’s Irvin Works in West Mifflin, Pennsylvania, according to the White House. Investors and union members will listen for answers from the president on what shape the deal he announced between U.S. Steel and Nippon will take.
Trump described the deal as a “partnership” in a May 23 post on his social media platform Truth Social. The president said U.S. Steel’s headquarters would remain in Pittsburgh and Nippon would invest $14 billion over 14 months in the more than 120-year-old American industrial icon.
Trump told reporters on Sunday that the deal is an “investment, it’s a partial ownership, but it will be controlled by the USA.” But the White House and the companies have provided little detail to the public on how the deal is structured since Trump’s announcement.
U.S. Steel has described the deal as a “merger” in which it will become a “wholly owned subsidiary” of Nippon Steel North America but continue to operate as separate company, according to an April 8 filing with the Securities and Exchange Commission.
Sources familiar with the matter told CNBC’s David Faber that Nippon is expected to close its acquisition of U.S. Steel at $55 per share, the original offer the Japanese steelmaker made before President Joe Biden rejected the deal in January. Biden blocked Nippon’s proposed acquisition on national security grounds, arguing that it would jeopardize critical supply chains.
But Trump ordered a new review of the deal in April, softening his previous opposition to Nippon buying U.S. Steel. The president announced the “partnership” one day after the Committee on Foreign Investment in the United States was supposed to conclude its review and make a recommendation on whether the companies had found ways to “mitigate any national security risks.”
‘National security agreement’
Pennsylvania Sen. Dave McCormick told CNBC on Tuesday that the U.S. government will have a “golden share” that will allow it to decide on a number of board seats. U.S. Steel will have an American CEO and a majority of the board will come from the U.S. McCormick said.
“It’s a national security agreement that will be signed with the U.S. government,” McCormick told CNBC’s “Squawk Box.” “There’ll be a golden share that will essentially require U.S. government approval of a number of the board members and that will allow the United States to ensure production levels aren’t cut.”
Nippon will “have certainly members of the board and this will be part of their overall corporate structure,” McCormick told CNBC. White House Trade Advisor Peter Navarro told reporters Thursday that “Nippon Steel is going to have some involvement, but no control of the company.”
“U.S. Steel owns the company,” Navarro said. U.S. Trade Representative Jamieson Greer told CNBC on Friday that the details of the Nippon Steel deal “remain confidential, relatively.”
“The underlying principle is that the United States should have control over key critical sectors, whether it’s basic manufacturing or high tech,” Greer told “Squawk Box.” “In the event that foreign countries or foreign individuals or firms want to acquire these companies or have large investments, the U.S. has to maintain control of things that matter.”
The United Steelworkers, which originally opposed the deal, has said the union “cannot speculate about the impact” of Trump’s announcement “without more information.”
“Our concern remains that Nippon, a foreign corporation with a long and proven track record of violating our trade laws, will further erode domestic steelmaking capacity and jeopardize thousands of good, union jobs,” USW President David McCall said in a statement.
Environment
Hyundai’s first three-row electric SUV is here as IONIQ 9 deliveries kick off across the US
Hyundai handed over one of the first IONIQ 9 models to customers in the US on Friday, marking the start of deliveries for its new three-row electric SUV.
Hyundai IONIQ 9 deliveries are now underway in the US
Just over two months after the first models rolled off the assembly line at Hyundai’s new EV plant in Georgia in March, deliveries are now underway.
Hyundai delivered one of the first IONIQ 9 models to customers in Georgia. The owners, Jennifer and Dwayne Maynard, traded in their IONIQ 5 for the larger electric SUV.
“We loved our IONIQ 5, but the IONIQ 9 offers everything we need and more for our family and our adventures,” Jennifer Maynard explained.
With up to 2,472 liters (87 cubic feet), Hyundai’s three-row SUV boasts more interior cargo space than a Ford Explorer (2,492 liters).
To showcase the spaciousness of the IONIQ 9, Hyundai launched a new marketing campaign, “Space to Connect,” earlier this month, offering a glimpse inside the seven-seat family hauler.
Not only does the SUV have “class-leading” interior space, but it’s also loaded with Hyundai’s latest tech and software.
The interior features a panoramic curved display with over 24″ of screen space, including dual 12.3″ driver display and infotainment screens.
Hyundai announced that 2026 IONIQ 9 prices start at just over $60,500, including a $1,600 destination fee. That’s for the base RWD model, which has a range of up to 335 miles. The AWD trim, with 303 horsepower and 320 miles range, starts at under $65,000.
Like the upgraded 2025 IONIQ 5, Hyundai’s three-row electric SUV features a built-in NACS port, allowing you to access Tesla’s Supercharger network. Using a 350 kW DC fast charger, the IONIQ 9 can recharge from 10% to 80% in about 24 minutes.
While it’s still available, the IONIQ 9 qualifies for the $7,500 federal tax credit, which could lower prices to as low as $53,055.
| 2026 Hyundai IONIQ 9 Model | EV Powertrain | Drivetrain | Driving Range (miles) |
Starting Price (including destination fee) |
| IONIQ 9 RWD S | 160-kW (215-HP) Electric Motor |
Rear- Wheel Drive |
335 | $60,555 |
| IONIQ 9 AWD SE | 226.1 kW (303-HP) Dual Electric Motors |
All-Wheel Drive |
320 | $64,365 |
| IONIQ 9 AWD SEL | 226.1-kW (303-HP) Dual Electric Motors |
All-Wheel Drive |
320 | $67,920 |
| IONIQ 9 AWD PERFORMANCE LIMITED |
314.6-kW (422-HP) Dual Electric Motors |
All-Wheel Drive |
311 | $72,850 |
| IONIQ 9 AWD PERFORMANCE CALLIGRAPHY |
314.6-kW (422-HP) Dual Electric Motors |
All-Wheel Drive |
311 | $76,590 |
| IONIQ 9 AWD PERFORMANCE CALLIGRAPHY DESIGN |
314.6-kW (422-HP) Dual Electric Motors |
All-Wheel Drive |
311 | $78,090 |
With deliveries now underway, there are a few deals that are worth checking out. Hyundai is offering a $5,000 cash bonus on all IONIQ 9 trims. With the $7,500 credit, you can snag up to $12,500 in upfront savings
Leases start as low as $419 for 36 months, which is even more affordable than a Toyota Highlander XLE Hybrid right now. If you’re looking for something smaller, the 2025 IONIQ 5 is available with leases starting at $209 per month.
Until June 2, Hyundai will give you a free ChargePoint Level 2 charger with the purchase or lease of a 2026 IONIQ 9 or 2025 IONIQ 5. Earlier today, we learned that Hyundai could raise vehicle prices as soon as next week.
Ready to check out Hyundai’s electric SUVs for yourself? We’re here to help. You can use our links below to find deals on the Hyundai IONIQ 9 and IONIQ 5 in your area.
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