North Korea's East Asia neighbors — Japan, China and South Korea — have a shared goal of denuclearizing the peninsula, but what may come out of Tuesday's summit in Singapore between President Donald Trump and North Korea's Kim Jong Un has different and possibly conflicting implications for their security, economic and geopolitical interests.
In this April 27, 2018 file photo, North Korean leader Kim Jong Un, left, and South Korean President Moon Jae-in embrace each other after signing on a joint statement at the border village of Panmunjom in the Demilitarized Zone, South Korea. (Korea Summit Press Pool via AP, File)
Japan, still unable to meet Kim directly, is relying on Trump for almost everything from its security to an accounting of its citizens who were abducted decades ago by the North; South Koreans remain skeptical but also embrace hope that a positive outcome of the talks could push forward a Korean War peace treaty and further cooperation; and China, a U.S. rival that is increasing its regional presence, is seeking to continue exerting its influence on North Korea.
Here are the views and concerns of the three stakeholders:
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WORRIED JAPAN
Japan, a U.S. ally whose diplomatic policies largely mirror Washington's, is relying on Trump because Prime Minister Shinzo Abe has been unable to meet Kim. Japan worries about being marginalized by other regional players who have increased their interaction with North Korea. Abe doesn't want Trump to strike a compromise on North Korea's missile program that would leave Japan exposed to shorter-range missiles that do not reach the U.S. mainland, or would relieve pressure on North Korea before it takes concrete steps toward complete denuclearization. If Trump focuses on long-range missiles and a peace treaty, which might lead to a reduction of U.S. troops in South Korea, it would pose a security risk for Japan, analysts say. "That would put Japan in a very, very dismal position moving forward," said Stephen Nagy, an international relations professor at International Christian University in Tokyo.
In this May 26, 2018, file photo, activists cross the Unification Bridge, which leads to Panmunjom in the Demilitarized Zone, during the 2018 DMZ Women Peace Walk in Paju, South Korea. (AP Photo/Ahn Young-joon, File)
The best scenario for Japan would be a commitment by Trump to diplomatic engagement to achieve North Korea's complete denuclearization and his help in getting the North to make progress on the abduction issue. Japan says at least 17 Japanese were abducted by North Korea to train its spies in Japanese language and culture. North Korea has acknowledged abducting 13 and allowed five of them to visit Japan in 2002, where all five remained. Families of the other abductees are getting old and many see the Trump-Kim summit as their last chance for a breakthrough in determining their fate. Japan hopes to hold talks with North Korea after a successful Trump-Kim summit, and Abe voiced his willingness to do so Thursday after meeting Trump in Washington. Japan says it would normalize diplomatic ties and provide economic aid as rewards for a North Korean commitment in both the nuclear and abduction issues. Unless Japan develops a new strategy in dealing with North Korea, a summit between Abe and Kim is not expected until considerably later, and North Korea, which can expect economic aid from China and South Korea, is seen as in no rush to turn to Japan.
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HOPEFUL BUT SKEPTICAL SOUTH
South Koreans have been split between hope and doubt after seeing the seesaw developments leading up to the summit. They hope that improved relations between the U.S. and North Korea would ease tensions, adding momentum for inter-Korean reconciliation and cooperation. Some even speculate that Trump and Kim may discuss a peace treaty formally ending the 1950-1953 Korean War, replacing the current armistice. A peace treaty, however, would raise North Korea's long-time demand for a reduction or withdrawal of U.S. troops in South Korea. Skeptics say that's too much to consider and that the priority should be getting North Korea to give up its nuclear weapons.
The summit is only the start of a long process, but its success is "critically important" for South Korean President Moon Jae-in because he has made inter-Korea negotiations a centerpiece of his administration and has staked much political capital on the effort, said John Delury, an associate professor of East Asian Studies at Seoul's Yonsei University. He said a successful summit would create more room for the two Korean leaders to move forward on inter-Korean reconciliation and cooperation. Reducing the threat of conflict is the initial goal, which could be followed by cultural, humanitarian and economic steps. Moon held talks with Kim in April at the Demilitarized Zone dividing the two sides, getting Kim's initial offer of a summit with Kim.
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CAUTIOUS CHINA
Trump has long leaned on China to convince North Korea to moderate its actions despite protests from Beijing and some experts that China's influence may be overstated. But the success or failure of the summit will be seen by some as an indication of China's status as a major player in Northeast Asia, something Beijing has long craved. A positive outcome in Singapore may also ease pressure on Beijing in its simmering trade disputes with Washington and complaints over its militarization of disputed South China Sea islands.
Beijing wants to ensure its interests are preserved in the negotiations, namely that no outcome leads to a pro-U.S. united Korea and the stationing of potentially hostile troops along its border. In the near term, China has repeatedly called for a freeze in large-scale U.S.-South Korea military exercises in return for a halt to the North's nuclear and missile programs. Beijing also backs backs the North's call for a "phased and synchronous" approach to denuclearization, as opposed to Washington's demand for an instant, total and irreversible end to the North's nuclear programs.
China wants to see the Kim regime adopt Chinese-style economic reforms and has pressured South Korea to remove a U.S. anti-missile system that it regards as threatening China's nuclear deterrent.
OMAHA, Neb. (AP) — Warren Buffett cautioned the tens of thousands of shareholders who packed an arena for his annual meeting that artificial intelligence scams could become "the growth industry of all time."
Doubling down on his cautionary words from last year, Buffett told the throngs he recently came face to face with the downside of AI. And it looked and sounded just like him. Someone made a fake video of Buffett, apparently convincing enough that the so-called Oracle of Omaha himself said he could imagine it tricking him into sending money overseas.
The billionaire investing guru predicted scammers will seize on the technology, and may do more harm with it than society can wring good.
“As someone who doesn't understand a damn thing about it, it has enormous potential for good and enormous potential for harm and I just don’t know how that plays out,” he said.
The day started early Saturday with Berkshire Hathaway announcing a steep drop in earnings as the paper value of its investments plummeted and it pared its Apple holdings. The company reported a $12.7 billion profit, or $8,825 per Class A share, in first the quarter, down 64% from $35.5 billion, or $24,377 per A share a year ago.
But Buffett encourages investors to pay more attention to the conglomerate’s operating earnings from the companies it actually owns. Those jumped 39% to $11.222 billion, or $7,796.47 per Class A share, led by insurance companies’ performance.
None of it that got in the way of the fun.
Throngs flooded the arena to buy up Squishmallows of Buffett and former Vice Chairman Charlie Munger, who died last fall. The event attracts investors from all over the world and is unlike any other company meeting. Those attending for the first time are driven by an urgency to get here while the 93-year-old Buffett is still alive.
“This is one of the best events in the world to learn about investing. To learn from the gods of the industry,” said Akshay Bhansali, who spent the better part of two days traveling from India to Omaha.
Devotees come from all over the world to vacuum up tidbits of wisdom from Buffett, who famously dubbed the meeting ‘Woodstock for Capitalists.’
But a key ingredient was missing this year: It was the first meeting since Munger died.
The meeting opened with a video tribute highlighting some of his best known quotes, including classic lines like “If people weren't so often wrong, we wouldn't be so rich.” The video also featured skits the investors made with Hollywood stars over the years, including a “Desperate Housewives” spoof where one of the women introduced Munger as her boyfriend and another in which actress Jaimie Lee Curtis swooned over him.
As the video ended, the arena erupted in a prolonged standing ovation honoring Munger, whom Buffett called “the architect of Berkshire Hathaway.”
Buffett said Munger remained curious about the world up until the end of his life at 99, hosting dinner parties, meeting with people and holding regular Zoom calls.
“Like his hero Ben Franklin, Charlie wanted to understand everything,” Buffett said.
For decades, Munger and Buffett functioned as a classic comedy duo, with Buffett offering lengthy setups to Munger's witty one-liners. He once referred to unproven internet companies as “turds.”
Together, the pair transformed Berkshire from a floundering textile mill into a massive conglomerate made up of a variety of interests, from insurance companies such as Geico to BNSF railroad to several major utilities and an assortment of other companies.
Munger often summed up the key to Berkshire’s success as “trying to be consistently not stupid, instead of trying to be very intelligent.” He and Buffett also were known for sticking to businesses they understood well.
“Warren always did at least 80% of the talking. But Charlie was a great foil,” said Stansberry Research analyst Whitney Tilson, who was looking forward to his 27th consecutive meeting.
Munger's absence, however, created space for shareholders to get to know better the two executives who directly oversee Berkshire's companies: Ajit Jain, who manages the insurance units; and Abel, who handles everything else and has been named Buffett's successor. The two shared the main stage with Buffett this year.
The first time Buffett kicked a question to Abel, he mistakenly said “Charlie?” Abel shrugged off the mistake and dove into the challenges utilities face from the increased risk of wildfires and some regulators' reluctance to let them collect a reasonable profit.
Morningstar analyst Greggory Warren said he believes Abel spoke up more Saturday and let shareholders see some of the brilliance Berkshire executives talk about.
Abel offered a twist on Munger's classic “I have nothing to add” line by often starting his answers Saturday by saying “The only thing I would add.”
“Greg's a rock star,” said Chris Bloomstran, president of Semper Augustus Investments Group. "The bench is deep. He won’t have the same humor at the meeting. But I think we all come here to get a reminder every year to be rational.”
Buffett has made clear that Abel will be Berkshire's next CEO, but he said Saturday that he had changed his opinion on how the company's investment portfolio should be handled. He had previously said it would fall to two investment managers who handle small chunks of the portfolio now. On Saturday, Buffett endorsed Abel for the gig, as well as overseeing the operating businesses and any acquisitions.
“He understands businesses extremely well. and if you understand businesses, you understand common stocks,” Buffett said. Ultimately, it will be up to the board to decide, but the billionaire said he might come back and haunt them if they try to do it differently.
Overall, Buffett said Berkshire's system of having all the noninsurance companies report to Abel and the insurers report to Jain is working well. He himself hardly gets any calls from managers anymore because they get more guidance from Abel and Jain.
“This place would work extremely well the next day if something happened to me,” Buffett said.
Nevertheless, the best applause line of the day was Buffett's closing remark: “I not only hope that you come next year but I hope that I come next year.”
For more AP coverage of Warren Buffett look here: https://apnews.com/hub/warren-buffett. For Berkshire Hathaway news, see here: https://apnews.com/hub/berkshire-hathaway-inc. Follow Josh Funk online at https://www.twitter.com/funkwrite and https://www.linkedin.com/in/funkwrite.
From left, D'Ann Rhoten takes a photo of Brittany Thornton and Melissa Shapiro in the exhibit hall of the Berkshire Hathaway annual meeting on Saturday, May 4, 2024, in Omaha, Neb. (AP Photo/Rebecca S. Gratz)
Amy Keady of Frederick, Maryland, holds her son, Ben, 11, as they wait in line outside the Berkshire Hathaway annual meeting on Saturday, May 4, 2024, in Omaha, Neb. (AP Photo/Rebecca S. Gratz)
Jennifer Cua of Las Vegas sits with her purchases from Squishmallows during the Berkshire Hathaway annual meeting on Saturday, May 4, 2024, in Omaha, Neb. (AP Photo/Rebecca S. Gratz)
Shareholder Tina Schmidt of Cozad, Neb., wears a shirt with Warren Buffett's portrait in the style of an Andy Warhol painting at he Berkshire Hathaway annual meeting on Saturday, May 4, 2024, in Omaha, Neb. (AP Photo/Rebecca S. Gratz)
See's Candies associates, including Holly Pellicano of San Francisco, center, do yoga together before shareholders arrive for the Berkshire Hathaway annual meeting on Saturday, May 4, 2024, in Omaha, Neb. (AP Photo/Rebecca S. Gratz)
Bart Macdonald of New York City takes photos of the BNSF Railway model train display during the Berkshire Hathaway annual meeting on Saturday, May 4, 2024, in Omaha, Neb. (AP Photo/Rebecca S. Gratz)
Valerie Deichert of Omaha, left, assists shareholders with their purchases from the Oriental Trading booth during the Berkshire Hathaway annual meeting on Saturday, May 4, 2024, in Omaha, Neb. (AP Photo/Rebecca S. Gratz)
Shareholders find their seats for the Berkshire Hathaway annual meeting on Saturday, May 4, 2024, in Omaha, Neb. (AP Photo/Rebecca S. Gratz)
Harold and Caroline Ernst of St. Louis chat with fellow shareholders as they wait for the Berkshire Hathaway annual meeting to begin on Saturday, May 4, 2024, in Omaha, Neb. (AP Photo/Rebecca S. Gratz)
Michelle King of San Francisco does yoga in the See's Candies booth before the arrival of shareholders for the Berkshire Hathaway annual meeting on Saturday, May 4, 2024, in Omaha, Neb. (AP Photo/Rebecca S. Gratz)
Berkshire Hathaway shareholders pose with the mascot for one of its companies, Oriental Trading, while the more famous spokeslizard for Geico insurance looms over their shoulder, Friday, May 3, 2024, in Omaha, Neb. CEO Warren Buffett will spend hours answering questions at the meeting on Saturday. (AP Photo/Josh Funk)
Berkshire Hathaway shareholders pose with a cutout poster of CEO Warren Buffett Friday, May 3, 2024, in Omaha, Neb., inside the exhibit hall in Omaha where Berkshire companies sell their products. Buffett will spend hours answering questions at the meeting Saturday. (AP Photo/Josh Funk)
Daegwon Kim of South Korea, who arrived in line at 3:30 a.m., takes photos of the crowd behind him outside the Berkshire Hathaway annual meeting on Saturday, May 4, 2024, in Omaha, Neb. (AP Photo/Rebecca S. Gratz)
Berkshire Hathaway Vice Chairman Greg Abel poses with shareholders Friday, May 3, 2024, in Omaha, Neb. Abel is set to be the next CEO after Warren Buffett is gone. (AP Photo/Josh Funk)
Berkshire Hathaway shareholders watch a model BNSF train run past a model town filled with other Berkshire companies Friday, May 3, 2024, in Omaha, Neb. Buffett will spend hours answering questions at a meeting Saturday. (AP Photo/Josh Funk)
Berkshire Hathaway shareholders line up to take selfies with Greg Abel Friday, May 3, 2024, in Omaha, Neb. Abel will one day replace Warren Buffett as CEO. (AP Photo/Josh Funk)
Berkshire Hathaway investment manager Ted Weschler, center, talks with Brooks Running CEO Dan Sheridan, Friday, May 3, 2024, in Omaha, Neb., one day ahead of the annual shareholders meeting. (AP Photo/Josh Funk)
Berkshire Hathaway shareholders pose with a cutout poster of CEO Warren Buffett, Friday, May 3, 2024, in Omaha, Neb., one day ahead of the annual shareholders meeting. (AP Photo/Josh Funk)
Berkshire Hathaway Vice Chairman Greg Abel poses for pictures with shareholders while touring the booths Berkshires companies set up, Friday, May 3, 2024, in Omaha, Neb. Abel will succeed Warren Buffett as CEO one day. (AP Photo/Josh Funk)
Berkshire Hathaway Vice Chairman Greg Abel checks out the flight simulators offered by one of Berkshires companies, Flight Safety as he toured the exhibit hall Friday, May 3, 2024, in Omaha, Neb. ahead of Saturday's meeting. Abel is set to succeed Warren Buffett as CEO one day. (AP Photo/Josh Funk)
