These are now provided monthly by Edelman Shanghai as part of the news monitoring we do for issues and crisis management in Asia.

We are pleased to extend this information to our wider USDEC membership to serve as a quick and informative compilation of regional headlines and potential trends in Asia-Pacific, but more specifically over time to help build understanding of what's happening in these markets, as well as identify any formative issues.

REGIONAL

New concern over U.S.-China trade confrontation
Shift in strategy noted after friendly November meeting.

The recent launch of investigations into unfair trade practices around Chinese steel and aluminum, as well as U.S. President Trump's national security strategy of labeling China a competitor, have reignited regional concern for a tit-for-tat trade war. This is considered a complete shift in strategy after President Trump discussed strengthening ties with China in November. China's foreign ministry warned against a return to a Cold War mentality. Regional media note the investigations rely on outdated laws written before the establishment of the World Trade Organization (WTO). Many media also covered the response of China's foreign ministry, which warned against a return to a Cold War mentality. The United States' approach to North Korea was also a key focus of regional media reporting, with many highlighting the recent tough approach of the United States to China trade a contradiction to the strategy of working with China to deal with North Korean aggression.

Sources: The Japan News, 12/13/17; South China Morning Post, 12/15/17; Nikkei Asian Review, 12/20/17; The Japan News, 12/20/17; The Hankyoreh, 12/20/17; The Sun Daily, 12/19/17; Jakarta Globe, 12/18/17; The Asahi Shimbun, 12/20/17; Channel News Asia, 12/18/17; The Straits Times, 12/19/17; Xinhua Net, 12/5/17; Ifeng.com, 12/20/17; Xinhua Net, 11/29/17; Xinhua News, 12/19/17.

World Trade Organization conference ends in discord
Regional media focus on impact of protectionist "America First Policy."

At last month's World Trade Organization ministerial conference in Argentina, conferees failed to reach a multilateral deal on new rules governing global trade, including farm subsidies and dispute resolution. Some media reports laid part of the blame on the United States and President Trump's "America First Policy." Despite failing to come to a broad accord, Japanese media reported that Japan, the United States and EU issued a joint statement agreeing to combat market-distorting policies, which media widely note is aimed at China's excess industrial capacity and other unfair trade practices.

The Takeaway: There is general concern over the future of global trade as the United States has a powerful role and is widely considered to be skirting its leadership position.

Sources: The Asahi Shimbun, 12/02/17; The Japan Times, 12/12/17; The Japan Times, 12/20/17; The Asahi Shimbun, 12/14/17; The Japan News, 12/11/17; Jakarta Globe, 12/15/17; The Jakarta Post, 12/21/17; Yonhap News Agency, 12/21/17.

CHINA

French baby milk maker Lactalis recalls products in China
Company's response seen as sincere and responsible.

French dairy giant Lactalis launched a global recall of thousands of products over fears of salmonella contamination after several babies in France became sick. China is among the countries affected by the recall, prompting China's Food and Drug Administration to suspend the infant formula registration of Lactalis subsidiary Celia until further investigation. The issue attracted attention of mainstream Chinese media, including print publications. Media reporting has been generally objective and focused on the recall, covering the related Lactalis brands, product names, and recall batch information. Media also referenced the company's statement apologizing for the incident and noting the recall is precautionary as they are certain the products recalled in China were not contaminated by the salmonella bacteria, which China's Quality Inspection authority AQSIQ also confirmed. The company's statement also advises parents in China to stop using the products and return them to the store for refund. Consumer response on social media has been limited and rational, with most comments saying they think the company is acting responsibly.

The Takeaway: Lactalis' swift action to recall and issue an apology also demonstrated sincerity and responsibility, which helped ease potential concern in China.

Sources: Beijing News Online, 11/29/17; Beijing Business Today, 11/28/17; Health Frontline, 11/30/17; People's Daily Online, 12/06/17; China Economic News, 12/08/17; Hexun News, 12/08/17; Ecns.cn, 12/14/17; Beijing Youth Daily, 12/12/17; China Economic News, 12/13/17; Beijing News Online, 12/13/17.

New effort under way to develop China's cheese market
Cheese seen as opportunity to boost growth and improve local dairy industry.

The Dairy Association of China and Chinese dairy manufacturer Sanyuan launched a campaign to promote and develop the domestic cheese market. Vice Agriculture Minister Yu Kangzhen said development of the domestic cheese market would benefit China's dairy industry overall by encouraging improvement of China's raw milk quality, elevating domestic dairy products and promoting market stability with more long-life products.

Sources: Foodmate, 12/01/17; Economic Daily, 12/13/17; Xinhua Net, 12/13/17; Economic Daily, 12/13/17; iFeng Finance, 12/15/17; Huanqiu Health, 12/14/17; Xinhua Net, 12/20/17.

JAPAN

Japan, EU conclude Economic Partnership Agreement talks
Parties agreed to lower trade barriers on Japanese autos, EU cheese.

Japan and the European Union concluded negotiations on the Economic Partnership Agreement in December. Under the deal, the EU will open its markets to Japanese automobiles, and Japan will lower barriers to European cheese, wine and pork. Japanese media called it the creation of "the world's largest open economic area," combining the 28-nation EU bloc and the world's third largest economy. Japan's Prime Minister Abe and the EU trade chief were quoted on the strategic importance of the deal and how it signals to the world that Japan and the EU support open trade based on global rules. Some media reports referenced the deal in contrast with the more protectionist stance of the United States.

The Takeaway: Compared to previous months, there was less media focus on the concern of the local dairy industry on the impact of cheap European cheese imports. This could indicate the broader strategic importance of the EU deal for Japan, particularly in light of Japan's on-going trade discussions with the United States.

Sources: Nikkei Asian Review, 12/03/17; Japan Today, 12/08/17; The Asahi Shimbun, 12/09/17; Japan Today, 12/09/17; The Japan News, 12/10/17; The Japan News, 12/12/17; Japan Today, 12/15/17; Japan Times, 12/20/17.

SOUTH KOREA

South Korea to protect agricultural products in FTA renegotiation
Renegotiation expected to begin early this year.

Regarding renegotiation of South Korea-U.S. free trade agreement (KORUS FTA), South Korea's Ministry of Trade said it will protect the country's "sensitive" industries such as agriculture and livestock from additional market access and try to reach a mutually beneficial deal on issues like services, investments, country of origin and non-tariff measures. Renegotiations are expected to begin early this year.

Sources: The Korea Times, 12/18/17; KBS World Radio, 12/18/17; Arirang News, 12/19/17; Yonhap News Agency, 12/18/17; The Korea Herald, 12/18/17, The Hankyoreh, 12/19/17.

INDONESIA

Indonesians protest U.S. decision to recognize Jerusalem as Israel's capital
Muslim cleric calls for boycott of American products as anti-American sentiment rises.

An estimated 80,000 people rallied in the capital of the world's largest Muslim nation to protest President Trump's decision to recognize Jerusalem as Israel's capital. According to reports, Anwar Abbas, a top Indonesian Muslim cleric, read a petition calling on Indonesians to stop buying American products until Trump revoked his decision. Indonesian Vice President Jusuf Kalla later said that calls for a boycott of U.S. goods were misguided, primarily citing the country's reliance on U.S. technology. Indonesia has joined other Muslim nations in condemning President Trump.

The Takeaway: While this issue is unlikely to translate into a real boycott of U.S. goods, it is an indication on how unrelated U.S. policy can impact brands overseas.

Sources: The Jakarta Post, 12/17/17; Mainichi, 12/17/17; Asian Nikkei Review, 12/14/17; Jakarta Globe, 12/20/17.

Margaret Speich is senior vice president of strategic and industry communications at the U.S. Dairy Export Council.  

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The U.S. Dairy Export Council fosters collaborative industry partnerships with processors, trading companies and others to enhance global demand for U.S. dairy products and ingredients. USDEC is primarily supported by Dairy Management Inc. through the dairy farmer checkoff. The password-protected article above is intended for USDEC member organizations only and should not be shared with anyone outside your organization.