The geopolitical rivalry between China and the United States in Asia is heating up. As it does so, both Washington and Beijing need to avoid increasing tensions further than necessary -- which means taking care to dispel false fears and make threats credible.

Shinzo Abe is trying to restore Japanese consumer confidence by boosting inflation. But confidence must rest on something more substantive: meaningful structural reforms to reverse Japanese companies’ lagging competitiveness. Otherwise, any temporary economic boost will soon give way to disillusion.

Contrary to popular belief, the reunification of North Korea and South Korea would not spell disaster for South Korea, nor would it pose an unacceptable risk for the United States, China, and Japan. Rather, it would produce massive economic and social benefits for the peninsula and the region.