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Posted: 2017-02-10 15:56:55

Washington: Japanese Prime Minister Shinzo Abe said that hacking, anti-trust laws and mistrust between the world's largest nations is hindering global trade, warning of a "threat" to the world economy in a speech to the US Chamber of Commerce.

Mr Abe will meet on Friday with US President Donald Trump and then travel to Mr Trump's Mar-a-Lago resort in Palm Beach, Florida for the weekend. In his speech to the chamber, Mr Abe appeared to offer veiled criticism of Mr Trump's trade policies.

World reacts to Trumps TPP pullout

Germany says it sees opportunities after President Trump withdrew the U.S. from the Asia-Pacific trade pact. Asian nations including Australia, meanwhile, are trying to save it.

Mr Trump has pulled the US out of the Trans-Pacific Partnership, a trade deal Mr Abe negotiated with former president Barack Obama, and he has pressured US automakers to move production from Mexico back to the states.

Mr Abe noted in his speech that 70 per cent of Japanese cars intended for the American market are produced in the US. He said that no one in Japan complains about losing jobs because the Japanese have gained in business as well.

Ahead of the summit with Mr Abe, the Trump administration confirmed the US military alliance with Japan covered the East China Sea islands that are disputed with China. The White House opposes any unilateral actions to undermine Japan's authority over the islands, an US administration official said in a briefing for reporters, requesting anonymity to discuss the issue.

Such reassurance is one of Mr Abe's top priorities, Mr Trump had previously threatened to pull US troops out of Japan, accusing the country of failing to pay enough for their maintenance. Hemmed in by a pacifist constitution, Japan is reliant on the US "nuclear umbrella" to deter potential threats from a rising China and an unstable North Korea.

Ships and planes from China and Japan frequently tail one another around the uninhabited East China Sea islands, known as Senkaku in Japanese and Diaoyu in Chinese. While US Defense Secretary James Mattis and Secretary of State Rex Tillerson have already confirmed that the US continues to see the isles as part of its commitment to the alliance, Japanese Foreign Minister Fumio Kishida has said he will continue to seek reassurance.

"Amid an increasingly severe security environment in the Asia-Pacific, the main aim of this meeting is to show clearly to those at home and abroad that the US-Japan alliance is unshakable," Deputy Chief Cabinet Secretary Koichi Hagiuda told reporters ahead of the summit.

It was unclear how Mr Trump's first phone call with Chinese President Xi Jinping late Thursday would affect his talks with Mr Abe, which are due to continue over a round of golf in Florida on Saturday. Relations between China and Japan, strained by disputes over wartime history, have worsened amid acrimony over the islands, as well as China's actions in the South China Sea.

The White House official said the automobile industry would also be an important topic of discussion. Mr Trump has criticised Japan for what he calls "unfair" trade practices that hinder US car exports to the country. Under questioning in parliament, Mr Abe rebuffed the allegations, saying Japan imports plenty of European cars, while there is a lack of US auto dealerships and advertising.

Bloomberg

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