In the latest evidence of deteriorating relations between China and North Korea, the state-owned Bank of China has stopped dealing with North Korea's Foreign Exchange Bank. This is in accordance with US financial sanctions imposed last March. The US will not deal with any financial institution that does business with North Korea. On this past week's episode of LinkAsia, we aired a piece from Japan's public broadcaster, NHK, who covered the story on May 7.

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Reporter:
Reuters News Agency says the state-owned Chinese bank notified North Korea's foreign trade bank that it was stopping all transactions. US officials hit the North Korean bank with sanctions in March banning any exchanges with US firms or individuals. They accused the bank of helping to finance Pyongyang's nuclear weapons program. Officials at Bank of China gave no reason why they were closing the North Korean account, and state run media have not reported on the story.

Japan's NHK World NEWSLINE program reported on the two disasters to hit Asia this past week. The first report aired April 24, and covered the latest garment factory collapse in the Bangladeshi capital of Dhaka. The second report LinkAsia covered this week aired April 23, and focused on the response to the earthquake in China's Sichuan province.

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Reporter:
The upper part of the commercial building suddenly collapsed during the busy morning period. The structure housed a clothing factory, bank and a shopping center. Many people are feared trapped inside. Workers at the factory were starting their shifts and some shops were already open. More than 100 people are reportedly hurt. Soldiers and citizens are helping with the rescue operation. Local media say a crack was detected in the wall of the building on Tuesday, but people were still allowed to go inside.

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Thuy Vu:
The response to the Sichuan earthquake is an important test for China's new president Xi Jinping. Five years ago, the former government was widely criticized for its poor response to an earthquake, which also occurred in Sichuan Province. That quake killed nearly 70,000 people. For more on the Chinese government's response to this latest earthquake, here's NHK.

Reporter:
The quake is the first large natural disaster since President Xi took office last month. He swears that his government will do everything possible to help survivors. Officials are also making sure the public knows about the government's efforts.

Premier Li Keqiang traveled by helicopter to the stricken areas on the day of the quake. He instructed rescuers to do all they could to save lives. His visit was reminiscent of the one by his predecessor Wen Jiabao. The former premier visited Sichuan years ago just hours after another huge quake hit the region. He tried to show the government's readiness to support survivors.

Authorities are highlighting other aspects of the government's response to the latest earthquake. Chinese media have been reporting in detail on the rescue effort. State run tv has broadcast repeated footage of the military's operations along with images of people receiving relief goods. Officials seem to want to show the public that the government's response is going well. An expert in risk management with a government affiliated think tank says China's leaders are paying more attention than ever to disaster response.

The disaster is not the only matter at home that China must address, the country's also struggling with a widening wealth gap and the recent outbreak of a new strain of bird flu. Compared to when the 2008 quake struck, people in China can now share information more quickly. Over 500 million Chinese are said to have internet access. Public discontent can spread in an instant.

A posting on China's version of Twitter is critical of the government's earthquake response. It says officials have failed to make use of lessons from the disaster 5 years ago. Wang says authorities need to quickly share information with the public. He says that's crucial for social stability.

China's leaders were harshly criticized for the slow response to the last earthquake in 2008. People were also angered by regional disparities in reconstruction efforts. Members of President Xi's government are keen to avoid making the same mistakes.

(LinkAsia: December 7, 2012)
Yul Kwon:
Moving now to North Korea. Back in April, the country defied sanctions and attempted to launch a rocket. It failed, but the country seems to be upholding the old saying "if at first you don't succeed, try, try again." But will this launch prove to be successful? Here's NHK.

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NHK World NEWSLINE
Airdate: December 4, 2012

Reporter:
The ballistic missile launch will be the second since Kim Jong-un took power a year ago. It will use the same launch pad at Tongchang-ri, a site in the northwestern part of the country. Before the first test in April, officials in Pyongyang said the 30-meter, three-stage rocket was meant to carry a satellite, but Japan the United States and South Korea said the launch was in fact a ballistic missile test. The test ended in failure with a rocket exploding in mid-air two minutes after liftoff. It broke into more than 10 pieces and fell into the ocean. Analysts say North Korea's young leader Kim Jong-un wants to correct this failure before the first anniversary of his father's death on December 17th. Kim may also be trying to consolidate his power base by showing his dedication to a military first policy. Kim has also vowed to develop North Korea's economy.

Kim Jong Un:
We must start on a path of industrial revolution for the new century to make North Korea a great economic power.

Reporter:
But there are no tangible signs of improvement. The UN World Food Program says that 60 million North Koreans, or nearly 70 percent of the population, suffer from malnutrition. North Korea's relations with the outside world are at a standstill. Last February, the United States agreed to provide food aid in exchange for a freeze on ballistic missile tests. But the deal was broken after the North tested a missile in April. North Korea's leadership has been trying to hold direct talks with the United States, but officials in Washington say they are not ready to accept. China is also applying pressure on its neighbor arguing that the missile launch would violate the UN resolutions.

(LinkAsia: October 19, 2012)
Yul Kwon:
Japan and China have a big economic stake in each other. Their trading relationship is worth over $300 billion every year. But now, anti-Japan sentiment in China has driven down the sales of Japanese cars to the point that some Japanese brand names are disappearing from Chinese roads. For more on this story, here's Japanese broadcaster NHK.

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NHK World NEWSLINE
Airdate: October 16, 2012

Reporter:
Nissan Motors unveiled a new passenger car last month, developed especially for the Chinese market. Nissan is a top seller of Japanese cars in China. The price of the 1600 c.c. Runabout starts from about $11,000 - almost the same as Chinese models. Nissan kept costs down by using more locally-made parts. Nissan executives hoped the new car launch would jump-start sales in the country. But the timing couldn't have been worse. Anti-Japanese sentiment is running high. Company managers say the impact on sales has been larger than expected.

Carlos Ghosn:
This is the kind of crisis we really that we really don't like because it is completely outside the reach of the companies. You know, political situation is very emotional between the two countries, and you're caught in the middle.

Reporter:
Japanese automakers have been forced to keep a lower profile since the Senkaku issue erupted. That means less, sometimes no product promotion. This motor show held in Tianjin last month is a key event on the industry calendar. But Honda, Mitsubishi and Fuji all pulled out at the last moment. The situation is made worse by a spreading consumer boycott targeting Japanese products.

Anonymous:
Because of the Senkaku issue, I'm going to buy a German car.

Anonymous:
Given the political problems I don't think it's a good idea to buy a Japanese car now.

Reporter:
One dealer of European cars is offering what they call "a patriotic service." It's a discount offer. Customers who replace their Japanese vehicles get more than $700 off the sticker price.

Anonymous:
We offer the patriotic service to peoplereplacing Japanese cars, no matter what brand they are.

Reporter:
Declining sales are now affecting output. Toyota and Nissan scaled back local production from September through October. Some plants cut operating days or shortened operating hours. More assembly lines could follow suit. Managers of Japanese automakers say they hope the sale slump is just a 'bump in the road' for their Chinese operations. But that could all depend on an improvement in Japan-China relations and there's no sign of that happening anytime soon. Akirhiro Mikoda, NHK World, Tianjin.

Yul Kwon:
Due to poor sales, Toyota is closing its Tianjin production plant for five days next week. Toyota's sales in China fell by almost 50 percent in September.