Today the US Is Waging a War on Huawei. In 1987 It Was Japan’s Toshiba

Right in the midst of the 1980s Washington-initiated US-Japan trade war

Toshiba yesterday, Huawei today!

Thirty years ago, Toshiba exported precision instruments to Russia. The United States imposed the following penalties on Toshiba Group:

1.) The Japanese Police Department was ordered to arrest Erhe Lin, President of Toshiba Machinery Foundry, and Hiroshima Tanamura, President of Machine Tool Business, and sentenced to 10 years’imprisonment.

2.) Closing Toshiba’s factory in the United States

3.) A 100% tariff on Toshiba products sold to the United States

4.) As an alternative punishment to the previous one, Toshiba’s exports to the United States were banned for five years.

5.) A huge fine of 1 trillion yen was imposed on Toshiba, equivalent to $16 billion today.

In order to calm the anger of the United States, Japan imposed severe penalties on Toshiba Group:

1.) Japan’s semiconductor industry would unconditionally share technology with American companies.

2.) Toshiba spent 100 million yen to publish a full-page apology advertisement in all major newspapers in the United States.

3.) Japan Semiconductor Association invested 9 million US dollars to launch various relations lobbying in the US Congress, and this lobbying has become the most costly lobbying war in history.

4.) The chairman and general manager of Toshiba Group resigned.

5.) By an administrative order issued by the Ministry of Communications, Toshiba was prohibited from exporting any products to 14 countries for a period of one year.

The United States is the master of Japan, Japan can only apologize, which has led to Toshiba gradually losing its past glory.

Toshiba was the hope of Japan’s science and technology industry, and also the hope and pillar of Japan’s manufacturing. After suffering a heavy blow from the United States, Toshiba went downhill thoroughly.

The U.S. attacked Toshiba not because it sold equipment to the Soviet Union, but because it affected U.S. interests. The United States believed that the Japanese semiconductor industry represented by Toshiba Group seriously threatened the economic interests of the United States, while the Japanese high-end manufacturing plan threatened the United States and challenged the technological hegemony of the United States.

Looking back more than 30 years ago, the experience of Toshiba, Japan, and looking at what the United States is doing today, there are indeed many similarities.

The United States does not allow its high-end manufacturing industry to be challenged at all, nor does it allow its technological hegemony to be challenged. The United States hopes that other countries will all be American workers and will never allow other countries to become shareholders of American interests.

Now targeting Huawei!

Source: KenyaTalk

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[…] スレッド「現在はアメリカがファーウェイに戦争を仕掛けているが1987年は日本の東芝が標的にされていた」より。アメリカ議会の前で東芝製のラジカセを壊して抗議するパフォーマンスを行う議員。冷戦時代に東芝の子会社がソ連に機械を輸出したとしてアメリカの目の敵にされた様子が映し出されています。東芝はアメリカ工場を閉鎖され、100%関税や輸入禁止措置、兆円規模の制裁金など厳しい罰を与えられたことで後の経営に影響したと言われている。引用:Reddit、Checkpoint Asia、Facebook […]

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[…] Today the US Is Waging a War on Huawei. In 1987 It Was Japan’s Toshiba […]

RBHoughton
3 months ago

I thought I knew a bit about Japanese history but I never heard of this before. It must mean that in 1987 USA did not trust Japan to limit its technology sales to group members in Europe and North America. Isn’t that interesting from the people who promote free trade?

Clara Koenig
Clara Koenig
3 months ago

I swear i’m starting to slowly hate the US with their blatant foreign influences….

Chris
Chris
3 months ago
Reply to  Clara Koenig

The thing I hate most is the hypocrisy.

Martin Martian-Marvellous
Martin Martian-Marvellous
3 months ago

In retrospect, what happened to Toshiba reflects poorly on the Japanese Government for being so obliging and acquiescencing to the US hegemony.

It does appear that Toshiba undeservedly got well and truely screwed. The world needs to unite in support of Huawei for the sake of decency in commerce.

Interference Fringe
Interference Fringe
3 months ago

Apples and oranges.

No comparison.

Alex Mercer
Alex Mercer
3 months ago

Japan and its Toshiba depended on the US market more.

silver749
silver749
3 months ago

Don’t they act like losers of a bike race puncturing the tyres of the faster riders. Or damaging brakes of cars that are racing faster than them. The examples are endless

Jardi1
Jardi1
3 months ago

Before the US strikes, the Media and think tanks must demonize and make overblown assessment of the targeted country or company. Those who lived in the early 1980s would remember US media obsession with “the rise of Japan” , the Western Media used to argue “Japan is overtaking the US’ , “Japan would soon be No.1” “Japanese tech. would overtake the world” and so on, then after Western public opinion is frightened and prepared for tech. and trade , The US government strikes the target country. For over a decade now US and Western have been making overblown assessment of China, “China is coming for your lunch” ” China will overtake the US soon” , “China will control the world” ” China will dominate key technologies” . “China, so and so” and then the strike comes, the name of game is “first, demonize the target, make overblown assessment of the target, get the public frightened, and then strike the target”

Jean-marie Hamel
Jean-marie Hamel
3 months ago
Reply to  Jardi1

US hates to be Second, Wants to be FIRST, imposing its DICTATORSHIP, Yes, call it as it Really Is ! EMPIRE, what is that now ? US the MOST EVIL WAR CRIMINAL ON EARTH ! Since US exist, only 16 years in PEACE !! SHIT !! Listen to Jimmy Carter speaking to Trump, about What China has that US do not ? China is Smart and INVEST in INFRASTRUCTURES, US, SICK, Invest ONLY on MILITARY Stuff, US prefer to have All it Takes to KILL HUMANS, instead of making a Better life For LIVING HUMANS ! And Trump certainly is The Master to DESTROY US, and Many Nations !!

Trauma2000
Trauma2000
3 months ago
Reply to  Jardi1

In Australia during the 80’s we had the ‘Japanese Invasion’ plastered EVERYWHERE – by U.$. controlled media. it was pretty sick. Then a ‘left thinking’ program did an analysis of the Foreign Ownership of Australian Industry etc. and the results were shocking. The U.$. dominated owned 78% of Australian industry. It was sick. Here is the uncontested monopolist decrying what was an insignificant challenge to a MONOPOLY the U.$. has held for years. It was sick. And the U.$. used RACISM AND HATE SPEECH in order to slander the competition. Fast Forward Thirty years and the Yanks are up to it again.

So Boycott Brand America.

Just Boycott Brand America.

Interference Fringe
Interference Fringe
3 months ago

This is BS. COmplete BS. TOtal BS. The US is censuring the Huawei brand to guard against espionage and exploitation. PERIOD. China uses its sophisticated retail technologies to sp and siphon.

chekpointasia.net is a propaganda mouthpiece fo the Chinese government.

Ivan
Ivan
3 months ago

Found the butthurt American liar

Vish
Vish
3 months ago
Reply to  Ivan

The United Snowflakes of America are easily triggered.

Keep up the good work!

LoL.

Interference Fringe
Interference Fringe
3 months ago
Reply to  Ivan

Oooooooooooooohhhhhhhhh…that hurt! You’re good…REALLY GOOD!

Vish
Vish
3 months ago

America specializes in not only playing the victim but also playing the National Security Card to disguise its more malign agendas.

Thus, like the case of Toshiba and Japan, America is now invoking the National Security Card to compensate for its inability to economically compete–this time with respect to Huawei and China.

More pathetically, America presents itself as a victim, as it whines like a bitch claiming to be threatened by the supposed “espionage” of China’s Huawei.

But most pathetic of all, America loves to accuse other nations of what it is guilty of itself to the Nth degree.

After all, America specializes in working covertly with US tech companies for global spying and espionage. Ever heard of Edward Snowden and his revelations about the NSA?

Revealed: how US and UK spy agencies defeat internet privacy and security
https://www.theguardian.com/world/2013/sep/05/nsa-gchq-encryption-codes-security

In fact, some American tech corporations were financially spawned by America’s spook agencies like the CIA and NSA.

How the CIA made Google
https://medium.com/insurge-intelligence/how-the-cia-made-google-e836451a959e

And the NSA has even been intercepting laptops purchased online and installing spyware in them!

The NSA Intercepts Laptops Purchased Online to Install Malware
https://www.theatlantic.com/technology/archive/2013/12/nsa-intercepts-laptops-purchased-online-install-malware/356548/

And America even has its operatives implanted inside companies in other countries (like China) so as to penetrate and subvert their computer and communications networks.

NSA MAY HAVE UNDERCOVER OPERATIVES IN FOREIGN COMPANIES
https://www.wired.com/2014/10/nsa-may-undercover-operatives-foreign-companies-new-documents-show/

It’s long overdue that the world starts sanctioning America and its tech companies from operating in their countries. LoL.

Trauma2000
Trauma2000
3 months ago
Reply to  Vish

Excellent post. Thank you for the links.

Interference Fringe
Interference Fringe
3 months ago
Reply to  Vish

Sorry…on this one, the US is right. Huawei is a “company” that is wholly owned by the Chinese Govt. It is proven that some circuitry in their “technology” is suspect.

China is the world’s bully on the stage.

Their actions in the South China Sea and predatory lending practices are clear evidence of that.

The oppression/imprisonment/killing of their own citizens who are members of certain ethnic/religious groups solidifies the fact.

You can go to hell.

pooi-hoong chan
pooi-hoong chan
3 months ago

China’s predatory lending is BS fake news which US government is famous for spreading.

Even the New York Times say there is no predatory lending.

https://www.nytimes.com/2019/04/26/opinion/china-belt-road-initiative.html

China has legal sovereignty over the Spratly/Paracels Islands conferred by the 1887 Chinese-Vietnamese Boundary Convention and the 1953 Taipei Treaty.

US Ambassador Chas Freeman wrote : ” China first asserted sovereignty in the modern sense to the South China Sea’s islands when it formally objected to France’s efforts to incorporate them into French Indochina during the 1884 – 1885 Sino-French war. Chinese maps since then have consistently shown China’s claims, first as a solid and then as a dotted line.

In 1945, in accordance with the Cairo and Potsdam Declarations and with American help, the armed forces of the Republic of China government at Nanjing accepted the surrender of the Japanese garrisons in Taiwan, including the Paracel and Spratly Islands. Nanjing then declared both archipelagoes to be part of Guangdong Province. In 1946 it established garrisons on both Woody (now Yongxing / 永兴) Island in the Paracels and Taiping Island in the Spratlys. “

Interference Fringe
Interference Fringe
3 months ago

Hmmm. I do not believe you.

The international court ruled against China RE: the South China Seas.

Why is that?

Regarding predatory lending:
This article is from a Korean source:
https://www.koreatimes.co.kr/www/nation/2018/08/718_254745.html

China is a malevolent force in the world.

You steal technology

Your “social credit” system is indescribably evil

You kill/imprison your own people (Uighurs, Muslims, Christians to name a few)

You force your citizens to work under extreme conditions in veritable prison cities to produce the goods you export

You compel your children follow a career path of your choosing instead of them having freedom to make their own decision

You flood the market with fake items, stealing from the brands who own the solitary rights to produce and sell their products

China (government) is THE BIG BULLY on the world stage.

There is no good in you.

None whatsoever.

pooi-hoong chan
pooi-hoong chan
3 months ago

China has legal sovereignty over the SC Sea islands. It is not legally bound to follow the arbitration tribunal. Do you know the difference between arbitration and a court ?? You don’t. You are lying. It was not a court but an arbitration.

Koreatimes list out the accusations without supporting studies and evidence. The NYT article in favour of China is supported by a study by Brautigam who is a specialist on China-Africa relations at John Hopkins University.

You are just spewing out accusations against China without supporting studies and evidence; all coming out from your China hate.

From Sri Lanka’s own mouth on China’s debt:

https://www.youtube.com/watch?v=KDlhWMhULZ8

” The bin Laden story, including 9/11, is fake from start to finish, but it is inscribed into encyclopedias, history books, and the public’s consciousness.

And this is just one example of the institutionalized mass lies concocted by Washington and the presstitutes and turned into truth. Washington’s self-serving control over explanations has removed Americans from reality and made them slaves to fake news.

So, how does democracy function when voters have no reliable information and, instead, are led into the agendas of the rulers by orchestrated events and fake news?

Where is there any evidence that the United States is a functioning democracy?” by PC Roberts who was the Assistant Treasury Secretary under Reagan.

Interference Fringe
Interference Fringe
3 months ago

Arbitration in lieu of courts is something that is agreed to BY BOTH SIDES and is pre-agreed to be BINDING.

You and I are enemies and China Government is nothing but a liar.

You said you were reclaiming land in the Spratleys for peaceful, non-military purposes and then you built a military base on it.

You are the worst most evil country in the world.

I don’t care what you say.

The USA is a good country.

You are nothing but propaganda and lies and you oppress your people and hide the truth from them thru your internet censorship.

Any metric that portrays China Government as being fair or good is propaganda.

Any report or article that originates in the USA, even from an academic (China has infiltrated much of US academia), is bought and paid for by the Chinese Government. Much of American Academia is compromised and many are Sycophants to the devilish Chinese Government.

Unlike vile Chinese government, the US government allows those sycophants to spew their lying excrement because this is a free country, for the moment. In China, you imprison, torture, and kill your dissidents and even their families.

You are my enemy.

You are a liar.

You have no morals, that’s why you must FORCE your people to behave like you command with your social credit system.

No GOD. No MORALITY.

Your government is nothing but evil demons.

Vish
Vish
3 months ago

This guy is a typical Proud Amurican snowflake who gets triggered, when has his delusional belief in American Moral Supremacy is challenged. He sounds like a Christian fundamentalist with his “demonic” rhetoric or a born-again Donald Trump on another frenzied Twitter rant.

Like most Amuricans, he accuses other nations of what America is guilty of to a much greater degree

Notice how this guy brings up the Spratlys issue when I mentioned America’s global spying network through the NSA and America’s not-so-private tech corporations? Nice diversion attempt.

Here’s yet another example of American spying:

How American Companies Enable NSA Surveillance
https://foreignpolicy.com/2016/10/04/how-american-companies-enable-nsa-surveillance/

It’s high time that other nations start placing America and its corporations under sanction …. if you are *sincerely* concerned about internet spying!

Finally, America is a “good country” alright–good at bombing, invading, regime changing, and economic sanctioning nations around the world all in order to prop up America’s unipolar world order and parasitic way of life.

But most of all, Americans are good at disguising their predatory nature behind their greatest of all deceptions, American Freedom and Demoncracy™.

Here’s an example of American malevolence, disguised behind its mask of goodness: the USA’s deployment of economic sanctions to starve and murder other nations into submission, under the pretext of promoting “democracy.”

America will starve a nation … in order to democratize it!

Sanctions of Mass Destruction: America’s War on Venezuela
https://canadiandimension.com/articles/view/sanctions-of-mass-destruction-americas-war-on-venezuela

This is yet another crime against humanity by the “Land of the Free”….

America’s Deadliest Export: Democracy
https://williamblum.org/

Interference Fringe
Interference Fringe
3 months ago
Reply to  Vish

“…when I mentioned America’s global spying network…”???

“I”???

VISH?

Are you and poo-poo one and the same?

Tsk tsk…and all because I called out the (pick a word from the list below) Chinese government for putting malicious circuitry/software in Huawei products!!

It’s true, they do, poo. You know it.

For the record, I have nothing against the citizens of China.

In fact, I am very fond of Chinese culture, excluding its (pick a word from the list below) government.

Anyway, moving right along…

Ummm—I clearly admitted that our intelligence agencies have, in some cases, overstepped their boundaries.

Interestingly, you have not admitted to any of the things that your beloved (pick a word from the list below) Chinese government has done/is doing.

Onward we go….

OMD…Venezuela?

Are you kidding me?

We are not the cause of that failed state.

It is mere proof that socialism only works for those in power…something that history has proven over and over and over again… just like your lovely (pick a word from the list below) Chinese government.

Your propaganda links are just that…propaganda.

Truth about the author of one of your citations in the previous post:
http://igeek.com/w/Garikai_Chengu

The weaponization of history and the prismatic filtering of truth has always been a tool of communism/socialism/fascism.

You have to tear down the USA, because we are the antithesis of the (pick a word from the list below) Chinese government’s atrocities against its own citizens.

We have been the strongest force for good the world has ever known.

Oh, did I mention that WE, the evil USA saved your a$$e$ from Japan so many years ago…at the cost of many American lives (you probably have some propaganda bu11$shit on that little factoid, too.)

Prevarication is a tool that you and your (pick a word from the list below) Chinese government have mastered to the level of fine art.

And then we have your ad hominem attacks…further exposition of who you really are…an immeasurable purveyor of lies.

My my…how sensitive you have shown yourself to be, Fishy Poo-Poo!

Anyway, the (pick a word from the list below) Chinese government sucks.

Getting to the “list below” thingy…

Since “demonic” and other seeming religiously derived words denoting badness bothers you so much, I submit the following attributes which properly fit the (pick a word from the list below) Chinese government to a tee:

Fiendish
Diabolical
Vile
Ghoulish
Thuggish
Vicious
Nefarious
Criminal
Malevolent (you project that which you are)
Impious
Reprobate
Atrocious
Foul
Poisonous
Repugnant
Pernicious
Baneful
Heinous
Revolting
Immoral
Flagitious
Monstrous
Rancorous
Rotten

I can provide more, if these don’t suffice.

Have a nice day.

Ivan
Ivan
3 months ago

I regard you china haters as nothing more than bottom feeding maggots that need to be stamped out.

Interference Fringe
Interference Fringe
3 months ago
Reply to  Ivan

Fortunately, Ivan, your opinion has no bearing on anything, and neither does mine.

Reinsert your vapid cranium up into your anal orifice before all that $chitt covering it dries up.

RedBaron9495
RedBaron9495
3 months ago

Lol….you’re a totally brainwashed dumb ignorant American…….the world should rid themselves from the likes of you!

Interference Fringe
Interference Fringe
3 months ago
Reply to  RedBaron9495

And see now…here we have a perfect example of how the CCP deals with those who oppose them…silence them. You have self-defeated any argument you have in a most wonderfully satisfying way.

JHK
JHK
3 months ago

Interesting stuff, hopefully Japan will leave nato and join Axis and AlQaeda and Taliban, and go banzai against nato.

CHUCKMAN
3 months ago

Thanks for the reminder.

My God, America has a lot thuggish people in power.

pooi-hoong chan
pooi-hoong chan
3 months ago
Reply to  CHUCKMAN

US is the biggest rogue nation and thief on the planet.

Interference Fringe
Interference Fringe
3 months ago

You are a liar. You have no clue what you’re talking about. Cite evidence.

pooi-hoong chan
pooi-hoong chan
3 months ago

US is the biggest thief on the planet stealing resources, goods and services when it ” pays ” for imports by issuing worthless, fiat currency USDollar without giving up any goods and services in exchange. US has been stealing since Nixon withdrew from the gold standard.

US abuses the USDollar as international reserve currency by enforcing financial sanctions on countries like Russia, Iran , Venezuela, N Korea, Syria, etc…depriving millions of innocent civilians of access to medicines and daily necessities.

In addition the US fakes lies to justify endless wars on Iraq, Libya, Syria, Afghanistan, Yemen, and numerous countries in Africa and engage in regime change in foreign countries in order to steal. their resources.

US wants to control the energy security of Germany and imposing sanctions on Germany, Austrian, and Russian companies that build gas pipe lines from Russia.

US unilaterally pulled out of the JCPOA and sanctions other countries for trading with Iran.

US pulled out of the UN Human Rights Council, the Paris Climate Accord, the TTP and blocks the ICC from investigating its numerous war crimes.

US broke its promise not to expand NATO to Russia’s borders.

US brags that it is a champion of free trade but uses state power to crush a private company called Huawei.

US declares that car imports and imports of car parts are a threat to national security and threatened German cars with tariffs.

US declares that Chinese made drones and buses are threats to national security.

US want to destroy the WTO apellate syatem by blocking appointments to the same.

Snowden exposed that NSA engages in extensive cyber spying around the world. Even Merkel’s private mobile phone was tapped.

ETC,ETC…

All the above are actions of a rogue state.

Interference Fringe
Interference Fringe
3 months ago

You are projecting, my chinese enemy.

It is China that is manipulating its currency.

It is China that is stealing territories from the poor countries in the South China Sea.

It is China that ignored the international court’s ruling that China stole territory that rightfully belongs to other countries.

It is China that is sending their fisherman into neighboring countries’ waterways to steal and ravage seafood stocks.

China is the enemy of the world and their goal is world domination – world domination by force/thievery.

China is evil.

pooi-hoong chan
pooi-hoong chan
3 months ago

Go and wallow in your wilfull brainwashed blindness. My facts are undeniable.

Interference Fringe
Interference Fringe
3 months ago

Neither are mine.It is just a matter of whose facts are mor dangerous and evil…CHINA WINS THAT BADGE.

RedBaron9495
RedBaron9495
3 months ago

Wrong it’s the USA that enemy of the world!

Genetically US ruling class are former Europe garbage – criminals, homeless, jobless people who went to America to find new life.

The world gave them priorities to print out reserve currency, and many other benefits but these genetic imbeciles failed with everything because of their pathological personal greed.

pooi-hoong chan
pooi-hoong chan
3 months ago

All your statements are outright lies in the tradition of Trump, the liar-in- Chief and Pornpeo who admitted to lying, cheating and stealing.

Interference Fringe
Interference Fringe
3 months ago

Bulls**t

The USA is not perfect. I will agree that our intelligence branches have overstepped their boundaries. But nothing like what you, evil China, is doing.

Iran is an also evil regime…just like you, demon China.

Drones…China is building spyware into its technology. That’s the problem with Huawei. That’s what they do also.

Huawei. is a “private” company according to Chinese standards, but there is no private company in China. All Chinese “private” companies answer to and are controlled by the wicked government of China.

David Bedford
David Bedford
3 months ago

I thought you Yankees would have learnt not to believe your intelligence agencies after they lied about our Iraq having weapons of mass destruction. before a country goes to war they need to brainwash their citizens about how evil the perceived enemy is… Please don’t be so gullible to believe them every time.

yewtai
yewtai
3 months ago

You are stupid idiot. China is the biggest conman and currency manipulator.

WHY CHINA IS THE BIGGEST GLOBAL CURRENCY MANIPULATOR ?

China will forever trapped in ultra cheap Yuan policy due to their own initial greed and incompetencies, in a currency war with the US.

China started the trade war against the US in 1994, by weaponising the Yuan with the full approval and support advice from Kissinger.

In 1994, US$1 = 8.9 Yuan
In 1993, US$ 1 = 5.7 Yuan
In 1992, US$ 1 = 5.3 Yuan
In 1990, US$ 1 = 4.8 Yuan ( after Tiananmen Incident )
In 1989, US$ 1 = 3.7 Yuan ( before Tiananmen Incident )

The above shows there is a drastic devaluation from 1992 to 1994, which China weaponised the Yuan to be more exports competitive.

China cannot even compete with the South East Asia countries such as Thailand, Malaysia and Indonesia in 1993 when US$ 1 = 5.5 Yuan.

After 1994, China become the cheapest labor cost value for money in the world, and caused the Asia Financial crisis 1997-1998.

This Asia Financial crisis destroyed economy of South Korea, Taiwan,Thailand, Malaysia and Indonesia.
Before 1994, most of the global supply chain are from south east asia countries, Taiwan and South Korea. After 1994, when the Yuan is drastically devalued, most of the MNC supply chain moved to China, thus destroyed south east asia , Taiwan and South Korea economy.

……there has been considerable debate over whether China’s 1994 devaluation triggered the Asia regional crises of 1997 and concerns in the region.

China claim they have the most advanced technology in the world. Then why does China continue to devalue Yuan to be competitive ?

China is the biggest global currency manipulator which was approved by Kissinger/IMF/World Bank.

China biggest mistake is to peg foolishly the Yuan at such low rate in 1994 USD1=8.9 Yuan. China unintelligent leaders are very desperate to get FDI from American and Japanese MNC, to create jobs and earn enough foreign exchange surplus in US dollars.
This ultra cheap Yuan policy is a big mistake and has now come back to haunt the unintelligent leaders of China.

China has been manipulating its currency for years, taking advantage of the global partnership that has existed for decades. If anything they’ve been trying to cheat and their people are the ones who have been suffering for it

pooi-hoong chan
pooi-hoong chan
3 months ago
Reply to  yewtai

Quoting the yuan exchange rate proves nothing. That is childish. You are an ignorant idiot.

The yuan had a two track rate against the USD. One is the official rate and the other is the market-based swap center rate. The depreciation of the yuan from 1992 1o 1994 is to make it align with market forces as reflected in the swap rate. It has nothing to do with starting a trade war against the USA.

From 1994 to 1997, the yuan appreciated against the USD.

From 1994 to the end of 1997, the renminbi’s nominal exchange rate against the USD appreciated by 4.8 per cent, up to 8.2. Taking into account the rapid increase in domestic prices in the period from 1994 to 1995, the real appreciation of the renminbi against the USD was 39 per cent. Meanwhile, the renminbi’s nominal and real effective exchange rates rose by 10.9 per cent and 30.2 per cent, respectively (IMF, IFS database 2004).

The appreciation of the renminbi during the period from 1994 to 1997 once again led to the expectation of a devaluation. This expectation was further intensified by the Southeast Asia financial crisis of 1998,5 which incurred a wave of capital flight. To prevent the crisis from spreading further, the PRC government made a commitment to not devalue the renminbi, keeping it at 8.28 yuan per USD and taking other measures to offset the external shocks to exports, including, for example, export tax refunds. This was recognized as a significant contribution by the PRC to the economic and financial stability of Asia and the world.

Since the PRC did not devalue the renminbi while most of the other currencies weakened against the USD from 1997 to 2001, the renminbi became one of a few strong currencies in emerging markets. Its nominal and real effective exchange rates rose by 10.9 per cent and 5.5 per cent, respectively.

The yuan is not convertible and not traded on the open international currency markets. Unlike the USD AND japanese yen, it could not be used as a tool to attack other currencies.

The most important factor in triggering the crisis seems to have been the sudden reversal of the dollar relative to the yen in early May 1997: the dollar fell from around 127 yen at the beginning of May to 114 yen at the end of June – an over 10 per cent depreciation. This was accompanied by widespread expectations of a rise in Japanese interest rates, and caused the short-term arbitrage funds from East Asia to flow back to Japan, thereby generating strong selling pressure on the baht.

There can be little doubt that the international financial markets and capital flows are inherently unstable, capable of creating boom and bust cycles and gyrations in exchange rates and asset prices, and real economic crises with far-reaching consequences. This potential threat is much greater for developing countries for obvious reasons. In East Asia, this threat was overlooked and a large part of the problem came from governments’ own efforts to attract short-term capital through borrowings of yen denominated loans.

The US economy is the biggest free rider and USDollar the biggest rip-off and financial theft in world history as explained by Michael Hudson:

When America went off gold standard in 1971, people began to wonder what was going to happen. Many predicted an economic doomsday.

But what I realized (and was the first to publish) was that if countries no longer could buy and hold gold in their international reserves, what were they going to hold? There was only one asset that they could hold: U.S. Government securities, that is, Treasury bonds.

A Treasury bond is a loan to the US Treasury. When a foreign central bank buys a bond, it finances the domestic U.S. budget deficit. So the balance of payments deficit ends up financing the domestic budget deficit.

The result is a circular flow of military spending recycled by foreign central banks. After 1971 the United States continued to spend abroad militarily, and in 1974 the OPEC countries quadrupled the price of oil. At that time the United States told Saudi Arabia that it could charge whatever it wanted for its oil, but it had to recycle all its net dollar earnings. The Saudis were not to buy gold. The Saudis were told that it would be an act of war if they didn’t recycle into the American economy the dollars they received for their oil exports. They were encouraged to buy U.S. Treasury bonds but, could also buy other U.S. bonds and stocks to help push up the stock and bond markets here while supporting the dollar.

The United States kept its own gold stock, while wanting the rest of the world to hold its savings in the form of loans to the United States. So the dollar didn’t go down. Other countries that were receiving dollars simply recycled them to buy U.S. financial securities.

So, when the United States runs a balance-of-payments deficit under conditions where other countries keep their foreign reserves in dollars, the effect is for other countries to keep their currencies’ exchange rates stable – mainly by lending to the U.S. government. That gives the United States a free ride. It can encircle the world with military bases, and the dollars that this costs are returned to the United States.

That’s essentially what foreign countries are saying about their buildup of dollars. The U.S. position is, in effect, that we are not going to repay any foreign country the dollar debt we owe them. As Treasury Secretary John Connolly said, “It’s our dollars, but your problem.” Other countries have to pay us or else we’ll bomb them. The military dimension to this arrangement is the U.S. position that it would be an act of war if other countries don’t keep spending their export earnings on loans or U.S. stocks and bonds.

That’s what makes the United States the “exceptional country.” The value of our currency is based on other countries’ savings. The money they save has to be held in the form of dollars or securities that we’re never going to repay, even if we could.

THIS IS A HUGE FREE RIDE

https://michael-hudson.com/2019/07/de-dollarizing-the-american-financial-empire/

buddy
buddy
3 months ago

you didnt write this but hey cut and paste is great when you are stupid like your self

pooi-hoong chan
pooi-hoong chan
3 months ago
Reply to  buddy

Who write is not the issue. Only facts count and I only post facts.
But idiots like you only broadcast idiocy in the internet.

pooi-hoong chan
pooi-hoong chan
3 months ago
Reply to  buddy

Who write is not the issue. Only facts count and I only post facts.
But idiots like you only broadcast idiocy in the internet.

Papajahat Mamabaik
Papajahat Mamabaik
3 months ago

They should have then committed harakiri en masse.

Stephen I. Diáz
Stephen I. Diáz
3 months ago

Who is Hiroshima Tanamura???

Trauma2000
Trauma2000
3 months ago

So glad this article was dredged up. A leopard never changes its spots. It’s always been about complete domination. The U.$. doesn’t like competition. It never has. If you are a competitor then you are the ENEMY… and that extends to individuals, companies, corporations and everything in between. Well, I’ve got news for you.

BOYCOTT BRAND AMERICA. Do it now. Boycott American Software. Boycott American Banking. Boycott American Social Media. Boycott American Cinema. Boycott American Publishing. Boycott American Territory. Boycott Continental America.

Ask yourself: Is it made in the U.$..? Yes..? Then DON’T buy it. Simple. The are alternatives EVERYWHERE. If it is made in the U.$. or by an American Company then DON’T buy it.

Interference Fringe
Interference Fringe
3 months ago
Reply to  Trauma2000

Bring it on, Traumaton.

eddie
eddie
3 months ago

When Toyota was becoming much too popular in the US, Lee Iaccoca was sent to Japan to “negotiate”.
The representatives from Japan said that it was like dealing with a gangster, and General Motors never really did recover their mojo..

TTdr
TTdr
3 months ago

Toshiba is not only case, there are plenty of similar cases in past.

But Huawei is fortunate to have a very strong gov support behind, otherwise its another France Alstom, fire sale to Cisco after its CFO Meng was arrested.

Why Alstom, the No.1 energy solution leader, was forced to sell to GM?Because US arrested its top executives and threaten its CEO.
https://www.bloomberg.com/news/articles/2019-01-15/-the-american-trap-an-executive-s-view-from-a-u-s-prison-cell

Why mh370 suddenly disappeared? Because US want its cargo & scientists of a tiny nano controller.
http://www.4thmedia.org/2016/02/a-tiny-microchip-was-the-likely-motive-for-pentagon-hijack-of-mh370/

Why Renault CEO Carlos is arrrested in Jp out of no reason? Because Renault allianced with Nissan & Mitsubishi is a threat to GM motor. Now the alliance is dead.
https://japan-forward.com/is-the-arrest-of-nissans-carlos-ghosn-a-case-of-japanese-xenophobia/

Bob avlon
Bob avlon
3 months ago

In the US exists 3 levels of 5G whatever that means, low being little better than 4G. Neither compatible with the other. Not quite your super technology level.Ericsson predicts 48% 0f 5G by 2023. Maybe this is why the hate of Huawei.

Marge Pinot
Marge Pinot
3 months ago

Absolute clap – trap!! Remember, that China has embarked on a massive PR and disinformation campaign to further their sinister agenda. Do your own research.

This is a digitized version of edited papers from several sources including an article from The Times’s print archive, June 12th 1983, and several research papers and documents right through to 1989.

In March 1980, Toshiba’s President met with the company’s export sales manager who updated him on the status of the negotiations with the Soviets. He warned the President that, in order to close the sale, COCOM regulations would have to be violated. At that time, the President issued an order “to do what had to be done to get the business.” Entering into an elaborate scheme with Kongsberg, which involved violations of COCOM, Norwegian and Japanese export regulations, Toshiba began planning the illegal Soviet export. Toshiba and Kongsberg knew the entire transaction was illegal and, in fact, the transaction took place despite the objection of some employees.

Early in 1983 a team of Japanese engineers from the Toshiba Machine Company arrived in Leningrad, the center of Russian shipbuilding since Peter the Great, and was whisked through the back gate of the heavily guarded Baltic Shipyard. There they painstakingly assembled more than
$17 million worth of computer-controlled machine tools used to make ship propellers.

In order to circumvent Norwegian export regulations, Kongsberg agreed to ship numerical controllers to Japan, falsely describing their true capabilities. The plan called for Toshiba to reexport them to the Soviet Union along with the milling machines.” Under the scheme,
Kongsberg would alter the equipment subsequently in the Soviet Union. Since the formal contract had to be included as an exhibit to the export license application presented to the Japanese government, the parties entered into two distinct agreements: (1) a formal contract setting out the sale of milling equipment permitted by COCOM restrictions, and (2) a protocol setting forth the actual illegal arrangements designed to provide the Soviets with the COCOM controlled equipment.

Over the next 18 months the engineers returned to the Soviet Union about half a dozen times. Working alongside computer specialists from a state-owned Norwegian company, they fine-tuned the four imposing machines, each of which stands two stories high and weighs half a million pounds.

”For a long time the Soviets didn’t seem to give a damn about the noise radiated by their submarines,” said Ira Dyer, an acoustics expert and professor of ocean engineering at the Massachusetts Institute of Technology. But in each generation of Soviet submarines – particularly the new Sierra and Akula classes – the giant power plants that propel Soviet submarines have grown quieter.

The situation changed dramatically in March 1987, however, when a story broke in the Washington Times that Toshiba had illegally shipped its machinery to the Soviet Union. Toshiba attempted to
conceal the truth from the authorities and generated memoranda bearing the President’s seal that contained false and deceptive information. In the face of public scrutiny, the Japanese government filed charges against Toshiba. The Japanese government executed search warrants at Toshiba’s business offices and at the homes of several Toshiba employees and also conducted exhaustive interrogations of its employees.(Not The US).

These exports, coupled with previously acquired information and technology,enable the Soviet Union to outfit its submarines with noiseless propeller blades and its aircraft carriers with faster propellers. As a consequence, the Soviet Union can improve the speed of its aircraft carriers, as well as make its submarines less susceptible to detection. Knowledgeable sources contend that the exports have permitted the Soviet Union to make technological advances they would have been unable to achieve legitimately. Moreover, the pecuniary cost to the United States to regain the edge in submarine technology may reach many billions of dollars.

The equipment is high on the list of technologies that the Western allies and Japan bar from export to the Soviet bloc, and intelligence officials say the machinery is already making it far easier for the
Soviet submarine fleet to elude detection.

Assessing the actual damage to national security is difficult. Reagan Administration officials assert that it was nearly irreparable because it will cost the Soviet Union far less to produce quiet propellers with the new machines than for the United States to develop advanced sensors to make up for the loss.

In light of the impact the sales have had on national security, the United States reacted to the disclosures with expected outrage. After months of debate, a presidential veto, and more revisions, the Congress finally passed the Omnibus Trade and Competiveness Act of 1988 (the “Act”) on August 23, 1988. In this Act, Congress passed mandatory sanctions against the violators.

1. The sanctions prohibit United States government contracting and procurement with Toshiba and Kongsberg Trading Co. for three years.

2. During that period, the importation into the United States of all products produced by Toshiba and Kongsberg Trading also is forbidden.

3. They are limited to proscribing only government contracting and procurement for three years, but do not affect the importation of their merchandise into the United States.

A few months later, Japan joined the United States in promising “to work toward a major revitalization of COCOM, based on improved public understanding of its objectives.”. At the
same time, Japan also announced additional steps to tighten its internal export controls. For its part, Toshiba Corporation engaged in a comprehensive public relations campaign to assuage the United States public as well. Toshiba Corporation’s President and Board Chairman resigned, along with the subsidiary’s President and several other Board members and officers.

These are not the actions of an innocent government and a company that have been wronged. These are the actions of a felonious government and a company who understood the need for the blessings of the international community and their allies.

Anti-Empire