North Korea has threatened to use possible military options in response to Japan's military buildup.
Kim Yo-jong, the powerful sister of North Korean leader Kim Jong-un, accused Tokyo on Wednesday of trying to turn the region into a warring state. The statement comes at a time when Japan has stepped up steps to boost its defense capabilities in the Pacific region.
Reasons for regional tension
For the readers who sit in Pakistan and review world politics, this tension in East Asia is not an unusual thing. Tokyo has steadily increased its defense budget and expanded defense partnerships. Pyongyang, on the other hand, considers these measures to be an attempt to upset the balance of regional power rather than a defensive strategy.
- Japan is expanding its naval and air power.
- Defense spending has reached historic levels.
- North Korea views these actions as a direct threat.
Effects on global markets
While the focus of the Pakistani public remains on the domestic economy, inflation and the value of the rupee, the tension in Asia could affect the global supply chain. An arms race in the Pacific could affect sea-lane trade and commodity prices.
What you should do
If you have business dealings with East Asia or your loved ones travel there, keep an eye on the status of air and sea routes. This type of tension often creates jitters in global markets.
What happens next?
Watch for reactions from Washington, Beijing and Seoul as efforts are made to defuse tensions at the diplomatic level. Any new missile test or military exercises by North Korea will make the situation even clearer.