A Chinese human rights activist has been in a holding pattern at Japan’s Narita airport for three weeks, saying mainland authorities repeatedly blocked his attempts to fly home to Shanghai.  

Feng Zheng Hu, 55, has been sleeping on an airport couch at Narita’s Gate 31 since Nov. 4, a situation reminiscent of the Tom Hanks’ film, “The Terminal”  although in Feng’s case, he can stay in Japan.

“I have a visa to stay in Japan,” Feng told Reuters at the airport this week. ”But this time, police in Shanghai used violent measures and sent me here. It was like kidnapping. That’s why I’m protesting and refusing to leave the airport. I want to return to my own country.”

The former Shanghai university professor said he was jailed in China for “illegal business activity”, after writing a book in 2001 about Japanese companies operating there.

“I published a book in China in the past and received a three-year sentence. It’s a major injustice. Since then, I’ve been working for freedom of publishing in China.” 

He says he has been blocked from returning home eight times this year alone.

Narita officials are at a loss on how to deal with Feng, who refuses to enter Japan, living in a limbo area between an arrival terminal and passport control, while eating food donated by arriving passengers and calling attention to his plight by wearing a shirt covered with scrawled slogans.

China’s foreign ministry declined to comment on the case this week, and neither Feng nor airport staff were willing to say when his lengthy layover would end.

Fear not the fiery robot apocalypse of the Terminator movies. Fear the cute machines exhibited at the International Robot Exhibition 2009 because they will destroy mankind by being better spouses.

Flash forward 20 years: People start marrying robots, the population plummets. There’s no need for Skynet’s gun-toting Terminators, because there’s no one to shoot at and Craig’s List personals read like an automotive parts catalogue: “Likes: hydraulic muscles and the smell of WD40. Dislikes: Clingy A-I personalities and ‘bots that need to recharge every 10 minutes”.

Reason to fear robots #1: Robots cook better than you do

Robot-maker Toyoriki’s “Okonomiyaki robot” has 15 motorised joints to precisely mix the batter for savory Japanese pancakes, then pour it onto a hot griddle and cheerfully entertain while you wait to be served by reading the latest news out loud and singing songs.

Reason to fear robots #2: Robots are better listeners

According to researchers, Paro, a seal-like robot, was developed to provide the relaxation and speedy patient recovery seen in animal-assisted therapy in places such as hospitals and nursing homes where animals aren’t allowed. The therapeutic robot has soft white artificial fur and a behavior generation system that mimics a real animal.

Reason to fear robots #3: Robots are never too lazy to recycle

Eager’s “D+ropop” eco-friendly robot’s soft outer case is made of corrugated cardboard while it’s inner structure is metal. The maker says the humanoid will become popular as a new form of advertising media — just don’t leave it in the rain.

Photo credits: REUTERS/Kim Kyung-Hoon

“Turbulent” wouldn’t properly describe the recent flight path of national flag carrier Japan Airlines, in a spiralling game of chicken with its retirees and unions over a $3.7 billion pension shortfall.

President Haruka Nishimatsu, who needs a pension deal to get bridge loans and bailout money from the state,  is asking for an average 40 percent cut from retirees and current employees.

“If we can’t, risks to our survival will increase, including the possibility of a court-led reorganisation,” he said on Monday to a gathering of unions and retirees.

The merits for the 17,000 current staff and some 9,000 retirees, who can block any pension cut if more than one-third object, are not compelling to everyone.

“I feel an attachment to the company, but on the other hand I have my own life. I have been banking on that corporate pension to make ends meet,” said a 59-year-old male retiree.

The government, which first raised the prospect of court-protected bankruptcy and in so doing helped send JAL shares tumbling, has played equal hardball with its staff, saying it may try to revise the law to forcibly implement pension cuts, which would most likely put the whole issue in a legal circling pattern.

Would a nation with a growing number of pensioners be supportive of such a move, which may then become a blueprint for their own weaker returns? I wouldn’t put money on it. But for a carrier with more than $15 billion in debt as well as shares at record lows and falling, someone needs to blink — and soon.

Photo credit: REUTERS/Issei Kato

For some of Japan’s retailers trying to jumpstart consumer spending, setting prices is like doing the limbo: How low can they go?

Japanese retailers reported mostly dismal first-half earnings results, with the industry stuck in a slump as shoppers remain reluctant to open their wallets even as the economy emerges from recession.

With no sales pick-up in sight, stores seem to have no choice but to continue their race to undercut rivals, with prices dropping for everything from cars to clothes to milk.

On the surface it sounds like a shopper’s paradise: Who wouldn’t mind paying less than 1,000 yen ($11) for a pair of jeans?

But it could also lead to a deflationary spiral in which consumers put off spending in hopes of further falls in prices.

And what’s more, these price cuts are slicing into already razor-thin profits at companies, which are then forced to pass on the pain to employees in the form of lower paychecks.

“It’s a death march,” said Junji Ueda, CEO of FamilyMart, Japan’s No. 3 convenience store chain.

“Manufacturers and transportation companies can’t make profits, and retail workers can’t get pay rises, or even worse, deflation will get to the point where they can’t keep their jobs.”

But some retail managers say price cuts are not hurting their businesses and there is room for even more markdowns.

“Some say we are cutting prices at the expense of profits, but such an argument is groundless. The problem is how to control inventory efficiency,” said Motoya Okada, president of Japan’s No. 2 retailing group Aeon Co Ltd, which runs the Jusco chain of supermarkets.

“Some wonder how we can sell jeans at 880 yen, but at the same time, there are many who think they are still expensive.  Recently, I visited Vietnam and was surprised to see items better than ours are sold at half our prices.”

Tadashi Yanai, CEO of Fast Retailing, maintains rivals’ efforts to undercut each other are self-destructive, although the firm’s casual-clothing chain Uniqlo is seen by some as one of the very culprits for fanning the deflationary trend with ultra-cheap apparel.

Fast Retailing is among the few Japanese retailers that have reported robust profit growth,  buoyed by strong sales at the Uniqlo stores.

“Our 990 yen jeans created value, but those that followed, like the ones for 880 yen and 850 yen, — I guess jeans will be sold for free eventually – did not produce value at all. I think our rivals will end up hurting themselves through such moves,” Yanai said.

I am a bargain hunter and always happy to pay less, but I’m just hoping my salary doesn’t decline like the prices of the goods in my shopping cart.

Photo credits: REUTERS/Issei Kato

An old Saturday Night Live segment once included this joke when Frank Sinatra was still alive:

“‘Ol’ Blue Eyes’ is back in town, and sources report nobody’s interested and nobody cares.”

That line came back to me after Sony,  once Japan’s “Big Blue”, announced Thursday its vision of an $11-billion 3D market by early 2013, with three-dimensional PlayStation 3s, TVs, Blu-ray Disc players, cameras, live broadcasting and — the historic staple — movies and theatres.

Photo credit: REUTERS/Rick Wilking

I attended Sony’s briefing that included a 2D video of its 3D world, plans for 3,000 projector installations by end-2010, a single-lens High-Frame-Rate movie camera (when previously it took two cameras to make three dimensions), and an end-to-end solution still involving glasses.

The plan was wider than 3D (it pushed back a 5-percent operating profit target to 2013) , but investors sold it Friday, and few analysts saw the technology quickly ending six years of TV losses.

Sony’s 3D plans have been highlighted at global tech and game shows in the last few months and some potential users, particularly gamers, have been more enthused than increasingly impatient investors, as the beleaguered consumer electronics giant tries to right its business.

Some broadcasters are reportedly looking at 3D adoption, but Japanese networks, still adapting to a switch to HD (high definition) aren’t seen among any first wave. A barometer of 3D enthusiasm may come from the James Cameron film Avatar , which is from 20th Century Fox, not Sony, and opens in December at an estimated cost of over $300 million, and possibly up to $500 million.

Not bad for a technology that began in the 19th Century, became famous — or infamous — with the red and green lenses used at bad horror movies of the 1950s, and now is envisioned as a potential profit centre.  Or not, depending on the view you take.

Japan’s ruling Democratic Party has long vowed to wrest power from the country’s bureaucrats. Now it’s taking its battles with them over spending onto live internet TV.

Three government backed budget-cutting panels operating from temporary premises in a Tokyo gym, have called in a series of bureaucrats to answer for projects deemed unnecessary or too expensive. The live internet broadcast of the resulting stand-offs can make for compelling viewing.

It’s also pleased voters concerned about Japan’s national debt, which is set to approach 200 percent of GDP next year. The website almost crashed on the first day of the hearings, when thousands of people tried to watch the broadcast at once, the Yomiuri newspaper said. 

For those who don’t follow it live, edited highlights appear nightly on news programmes, often focusing on Democratic lawmaker Renho, a stylish former TV presenter, as she grills squirming bureaucrats.

In a media poll this week, 76 percent of respondents said they thought Prime Minister Yukio Hatoyama was doing a good job with cost-cutting.

“What a wonderful broadcast,” said one poster on a news website. “The bureaucrats’ excuses are disgraceful.”

Some critics have called the process bullying and complained that not enough time is allotted for panels to investigate the worth of projects they are cancelling, which include development of a rocket and a supercomputer.

Others suggest they should tackle bigger expenditures, such as foreign aid and defence.

The panels have until the end of next week to cut an estimated 3 trillion yen from bureaucrats’ 95 trillion yen in budget requests for the financial year starting in April. The Mainichi newspaper said on Wednesday cutbacks so far totalled 1.4 trillion.

Photo credit: REUTERS/Toru Hanai

When Japanese civil servant Yoshiyuki Takeuchi started to lag his colleagues at work, he joined a growing number of his countrymen looking for solace from their problems in the bottom of a glass. 

“People who started after me would go further in their careers just because they finished college. I tried to stop that sense of ‘why always me?’ by drinking,” said the 50-year-old, who quit university as his family couldn’t afford it.

With liquor consumption growing sixfold in the last 50 years in Japan to match the country’s economic affluence, alcoholism has become an increasing — but poorly grasped — problem in a nation where booze is readily available from convenience stores, where evening television is awash with liquor ads and where bonding with workmates is typically done over a few cold ones.

Economic losses from drinking problems top 6.6 trillion yen ($73 billion) a year and some 800,000 people, or 0.6 percent of the population, are estimated to be alcoholics. The rate is smaller than the United States or Europe, but is rising as more women and elderly become addicted to drink.

Despite the growing number suffering from the condition, alcoholism is not seen as a disease and there is no systematic approach to dealing with it. Methods of prevention and intervention are usually viewed as lacking in Japan, and even medical professionals often fail to understand that merely fixing physical ailments caused by alcoholism won’t stop patients from drinking.

Katsuya Maruyama of Kurihama Alcoholism Center, a leading hospital for treating alcohol dependency, said Japan is overly tolerant when it comes to drinking too much. “There is no proper teaching on how alcohol can be dangerous, so no one knows alcoholism as a disease,” he said.

Some experts say recent high-profile cases could help raise recognition that alcoholism is a serious illness. Shoichi Nakagawa, an ex-finance minister who quit his post after being forced to deny he was drunk at a G7 news conference in February, died in October.  Some media reports said the 56-year-old may have mixed alcohol with sleeping pills, and doctors have said he likely suffered from alcoholism. 

And Prince Tomohito, the 63-year-old cousin of the emperor, told the country in 2007 that he was an alcoholic.

“Alcoholics were seen as people with personality problems (after high profile cases emerged),” said Tetsutaro Tatsuki of self-help group All Nippon Abstinence Association.  “They were proof that it is not an illness just for a handful of people, but that anyone could become alcoholic.”

Photo credits: REUTERS/stringer

It seems to have been an honest mistake for a new minister and Japan’s new government.

“I didn’t know about that (the release time). I’m sorry. Don’t make much of a fuss” Japanese Trade Minister Masayuki Naoshima told a TV reporter on Monday, right after he accidentally revealed the GDP figures ahead of their official release.

The minister looked sincerely surprised when informed of the official release time, but the light tone of his comments suggested that he did not fully understand the gravity of the error. 

He later offered a more formal apology, and Chief Cabinet Secretary Hirofumi Hirano reprimanded Naoshima for his leak of the market-sensitive data, which showed Japan’s economy grew much more than expected in the third quarter.

Still, I was surprised to see Prime Minister Yukio Hatoyama smiling when asked about Naoshima’s mistake.

“I can understand his wanting to spread the good news to the public,” Hatoyama told reporters.  “But the rule should be maintained. If you say he was careless, he surely was, and in that sense, it was regrettable.”

Naoshima made the blunder in a speech to the oil industry, but the small crowd of domestic reporters covering his event did not report it, and in that sense, the new minister was lucky.

Overall, Japanese media coverage of the leak has been relatively small, considering how it could have moved financial markets. 

I remember how the then Liberal Democratic Party-led Japanese government in 1999 was forced to confirm economic growth figures, after a business daily reported GDP data ahead of its official release.  At that time, share prices surged and the yen jumped after the report.

Since then, the government has become more careful about handling GDP data and the release time has been moved from mid-afternoon to 8:50 a.m. — before the stock market opens.  

Monday’s numbers were the first GDP figures since Hatoyama’s Democratic Party took power, though I cannot help but wonder how a senior official of the world’s No.2 economy was not wise to their potential sensitivity.

“They still haven’t got out of the habit of being an opposition party,” said Kyohei Morita, chief economist at Barclays Capital Japan. “It is embarrassing…. It makes me sad as a Japanese citizen.”

Photo credit: REUTERS/Toru Hanai

While Japan took few direct hits in the global credit crisis, the aftershocks have been immense, and long-lasting. The United States and Europe may now be showing some signs of recovery, but the world’s second-largest economy is still straggling behind and gasping for air.

Predictably, equity markets reflect Japan’s wheezy struggle. The Nikkei 225 is the worst performer among the benchmark indexes of the G7 nations, up just 10 percent so far this year. (The best performer, by the way, is Toronto at nearly 27 percent. The Dow has posted a respectable 17 percent return.)

Some discrepancy between Japan and other advanced industrialised nations is to be expected. Tokyo’s top companies are largely exporters reliant on the United States, where consumer spending has been whiplashed by the recession. A resurgent yen, which drives up the price of Japanese goods overseas, hasn’t helped either.

Consumer spending in Japan — which never convincingly recovered from the crash of the asset bubble in the early 1990s — is only poised to get worse, thanks to the lethal demographic cocktail of an ageing population and a shrinking birthrate.

But the reasons behind the Nikkei’s poor performance aren’t exclusively economic. Talk to a frustrated fund manager in Tokyo (believe me, they are very easy to find these days) and they’ll tell you that even with the lousy earnings and a grim economic outlook, the biggest problem now is a rush of capital raisings that will heavily dilute the holdings of current shareholders.

“This is the biggest factor why Japanese shares lag behind U.S. and European shares,” says Takeshi Osawa, senior fund manager at Norinchukin Zenkyoren Asset Management, referring to the recent rush by Japanese companies to issue new equity.

Japanese firms have already raised $40 billion through issuing common stock and convertible bonds this year, tapping the modest stock rebound for much-needed cash to replenish their reserves, and it doesn’t look like it’s going to end.

On Monday, Hitachi said it will raise up to 416 billion yen in a share sale. Shares of Hitachi, Japan’s biggest electronics firm by sales, suffered their biggest one-day slide in six months after sources told Reuters about the public issue.

Mitsubishi UFJ Financial Group, Japan’s biggest bank, is likely to raise as much as 1 trillion yen by the end of the year, to meet stricter global capital regulations and increase lending in Asia, three sources said on Saturday.

Analysts expect that its smaller rivals Mizuho Financial Group and Sumitomo Mitsui Financial Group will eventually have to follow suit. Shares of Mizuho and Sumitomo Mitsui both fell after news of Mitsubishi UFJ’s financial raising, even though the two smaller banks had posted consensus-beating second quarter results.

For investors, who watch in horror as their holdings sharply lose value, and Japan’s recovery gets stalled, it is nothing short of infuriating.

Perhaps Koichi Ogawa, chief portfolio manager at Daiwa SB Investments, sums it up best. “I’m angry,” Ogawa told me on Monday. “The world of investing isn’t a charity.”

Photo credit: REUTERS/Toru Hanai

As a child in the early ’80s, I remember spending a summer in Seoul and taking a trip with relatives to the countryside in a Hyundai Pony, South Korea’s first homegrown car. I spoke no Korean, but learned one word quickly enough: “lemon”.

Hyundai Motor has certainly come a long way since then.

Thirty-four years after introducing the Pony hatchback at the Turin Motor Show, Hyundai is the world’s fourth-largest carmaker, surpassing Ford Motor in the first half of this year. With the rest of the industry reeling from slumping sales, Hyundai’s charge has been especially conspicuous this year as it grabbed market share across the world and even made record profits in the latest quarter.

As my colleague Cheon Jong-woo and I wrote last week, Hyundai’s rise is making Japanese rivals nervous.

While Hyundai’s mounting success, founded on offering quality products at cheaper prices, has been in the cards for a while now, there are two new factors that worry the Japanese: a strong yen, coupled with the new government’s apparent indifference towards it, and South Korea’s progress in sealing free trade pacts.

“I think there’s a sense of crisis in the whole (Japanese) industry,” top Nissan Motor executive Toshiyuki Shiga said recently. “Whether you take the FTAs (free trade agreements) or foreign exchange policy, I get the impression that South Korea is tackling things well.”

But if anybody is feeling the most pressure, it might be Toyota Motor, the world’s biggest carmaker.

Several years ago, when I asked a top executive at Toyota’s U.S. operations about the South Korean automaker’s rising fortunes, he responded point blank that Hyundai was one of his biggest concerns.

“Honda and Nissan are also formidable rivals, but they have a distinct business approach and profile from us,” Yukitoshi Funo, now executive vice president at Toyota, had said. ”Hyundai, meanwhile, is essentially doing what we’re doing.”

Funo said then that rather than competing on prices, Toyota would have to focus on “brand and value”.

On that front, Toyota is still a head above the rest. Interbrand valued Toyota’s brand at $31.3 billion this year, nearly seven times that of Hyundai’s, which ranked eighth among carmakers.

To be sure, Hyundai has a long way to catch up to Toyota and Honda on fundamental, longer-term strength. But with a role model like Toyota and a more supportive government, it’s certain to keep rivals on their toes.

Photo credits: John Gress/REUTERS; Jo Yong hak/REUTERS; Yuriko Nakao/REUTERS