WHY DOES CHINA WANT ROCKS?
Until 1968, nobody cared about the barren Senkaku islands but then something changed.
It was discovered the abandoned isle sits atop a giant oil reserve. In 1971, the U.S. transferred administration of the islands to Japan who controlled them since 1895. China claims rights to the islands and underlying oil reserves as territory that began in the 14th century.
China sees positive GDP growth of 7.2%, but has been contracting from a peak of almost 10.5%.
Japan, under Abenomics (PM Shinzo Abe’s economic policies that have ended a decade of stagflation) has a modest growth rate of 1.2%.
Both economies would benefit greatly from the auspicious wellspring of Brent Crude which makes Mr. Obama’s visit regarding the U.S.-Asia trade agreement intertwined with encumbering economic rift.