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SEJONG, South Korea China is suspected to be taking indirect action against South Korea's decision last year to deploy a U.S. anti-missile system, South Korea's finance minister said. China worries that the U.S. Terminal High Altitude Area Defence (THAAD) system's powerful radar can penetrate its territory and it has objected to the deployment. South Korea and the United States say the missile system is aimed solely at countering any threat from North Korea. It is due to be deployed this year. "China is officially denying it, but we feel their actions are linked and that there have been indirect responses taken," Finance Minister Yoo Il-ho told a news conference on Thursday at the ministry's headquarters in Sejong City, south of Seoul. "It's hard to ask them what they're up to when they have been denying it officially." Yoo did not elaborate on what he meant by "indirect action" but China recently rejected applications by South Korean carriers to add charter flights between the two countries. Yoo said on Sunday the government was looking into whether China's decision to deny the airlines' applications, which came ahead of a traditional surge in Lunar New Year travel, was related to the deployment of the anti-missile system. Asked about Yoo's comments, Chinese Foreign Ministry spokesman Geng Shuang told a regular press briefing on Friday that China has an "open and positive attitude" towards trade relations with South Korea, but that "this requires a foundation of close friendship". He did not elaborate.
"We will put the highest priority on the economy," said Abe, dressed in a formal morning coat, at his New Year's press conference. Although the yen's recent weakness against the dollar has lifted sentiment among the nation's vital exporters, the country faces persistent challenges in a sluggish, deflationary economy and an aging, shrinking population. Abe smiled and high-fived some onlookers during his shrine visit, but his speech highlighted the serious problems facing Japan. "The trend of the diminishing number of children coupled with growing population of the elderly is rapidly progressing," he said. "Deflation ... has been weighing on the Japanese economy for nearly 20 years and shaken our confidence on sustainable growth." Abe also highlighted a "tougher" security environment surrounding Japan, a nod to China's aggressive maritime expansion and North Korea's nuclear and missile programmes. Japan needed to tackle its economic problems head-on, Abe said, pledging to stick with his three-pronged "Abenomics" strategy of monetary easing, fiscal stimulus and structural reforms, which he referred to as his three "arrows." In the Chinese zodiac, 2017 is the Year of the Rooster, which some investors believe will bring robust economic activity. "If the saying that markets in the year of the monkey (2016) and rooster are raucous holds true, then this year will be clamorous indeed," Akira Kiyota, chief executive of Japan Exchange Group, said at the Tokyo Stock Exchange's opening ceremony. "Though I hope all this year's commotion will be positive," he added. In downtown Tokyo, the Kanda Shrine was packed - typical of many shrines and Buddhist temples over New Years.
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