Japan needs to increase its military spending in the face of the "grim reality" of the threat from China and North Korea, a senior member of Japan's ruling Liberal Democratic Party said on Sunday during a visit to Taiwan.

Although Chinese-claimed and democratically-governed Taiwan and Japan do not have formal diplomatic ties, they have close unofficial relations and both share concerns about China, especially its increased military activities near the two.

Koichi Hagiuda, the LDP's policy chief and a former industry minister, said during a visit to Taipei that since World War Two Japan has "walked the path of peace" and that path will not change in the future.

"However just reciting the word peace is of course not enough for our peace to be protected," he told a forum on Japan-Taiwan relations.

As Japan prepares next year's budget Prime Minister Fumio Kishida has already announced plans to lift defence spending to an amount equivalent to 2% of gross domestic product within five years, from 1% now.

That would take Japan's annual defence budget to more than 11 trillion yen ($80.55 billion) from 5.4 trillion yen currently, giving the country the world's third-largest military budget after the United States and China at their current levels.

Hagiuda pointed to China's massive increase in military spending, as well as North Korean missile tests, as reasons for Japan to raise its defence budget.

"In the face of such a grim reality, half measures have no meaning at all."

Japan's defence capabilities are necessary to protect lives and peace and must be developed immediately, not within five years, he added.

"It's important to show clearly that we have sufficient capacity to make any would-be aggressor think twice."

China staged military drills near Taiwan in August to express anger at a visit to Taipei by then-U.S. House Speaker Nancy Pelosi, including launching five missiles into the sea close to Okinawa, within Japan's exclusive economic zone.

Japan hosts major U.S. military bases, including on Okinawa, a short flight from Taiwan, which would be crucial for any U.S. support during a Chinese attack.

The United States is bound by law to provide Taiwan with the means to defend itself, though there is ambiguity about whether it would send forces to help Taiwan in a war with China.

Addressing a think-tank in Taiwan last December, the late former Japanese Prime Minister Shinzo Abe said Japan and the United States could not stand by if China attacked Taiwan, and Beijing needs to understand this. (Reuters)

British trade minister Kemi Badenoch will hold her first face-to-face meeting with her Indian counterpart on Monday in New Delhi in an effort to spark life into talks over a free trade agreement (FTA) between the countries.

The trip marks the first formal round of negotiations since July.

Former Prime Minister Boris Johnson in April set an ambitious target to agree on an FTA with India by Diwali in October. But Johnson was forced to announce his resignation in July, and the deadline was missed.

New Prime Minister Rishi Sunak has said he is committed to getting a deal with India but won't sacrifice quality for speed, in a change of tone compared to Johnson.

An Indian government source told Reuters the intention was to close a deal by March. The source and another official, both of whom did not want to be named as the talks are private, said drug patents could be also be discussed, but declined to provide details.

India's trade ministry did not immediately respond to a request for comment.

Badenoch, who was appointed to her role in September, will meet Indian Trade Minister Piyush Goyal and address the negotiating teams before the round of talks begins.

"I'm here in New Delhi to kickstart round six of UK-India trade negotiations and meet my counterpart Minister Goyal in person to drive progress on this agreement," Badenoch said in a statement.

"Both nations have come to the table with the very highest of ambitions and a willingness to work together towards a mutually beneficial deal."

Britain's trade ministry said it would aim to cut tariffs on goods and open opportunities for its services sector.

Among the British industries which want a lower tariff is the whisky sector. The Indian export market for whisky was worth nearly 150 million pounds ($180 million) last year, but there is a 150% tariff.

A priority for India is more visas to study and work in Britain. British interior minister Suella Braverman sparked a row in October when she said Indians were the largest group of migrants who overstay in the country.

Officials have played down the impact of her comments on the negotiations.

In total, Britain and India have a 29 billion pound ($35.5 billion) trading relationship, and expanding it is a major part of Britain's Indo-Pacific foreign policy tilt, which aims to enhance ties with the region's fast-growing economies.

"The UK-India FTA remains a top priority for industry. We applaud the Secretary of State and Prime Minister for listening and prioritising substance over pace," said Andy Burwell, International Director at the Confederation of British Industry.

"Trade is a fundamental driver of growth and India will be an important partner and market as the UK looks to escape stagflation."

Badenoch said last month that Britain should be doing better on trade in the wake of its decision to leave the European Union, adding that she believed the benefits of Brexit would be more long term. (Reuters)

Chinese state-owned telecom giant China Unicom (0762.HK) said on Monday it will delete users' mobile itinerary data previously used to identify travellers in COVID-stricken areas from Dec. 13.

The statement comes as China announced the shutdown of the state-mandated mobile app tracking travellers in COVID-hit regions from the same date. (Reuters)

Japan and the Netherlands have agreed in principle to join the United States in tightening controls over the export of advanced chip-making machinery to China, Bloomberg News reported on Monday, citing people familiar with the matter.

In October, the Biden administration published a series of curbs aimed at stopping the export of chip-making technology and certain chips made through U.S. equipment anywhere in the world to China.

Apart from some U.S. gear suppliers, Japan's Tokyo Electron Ltd (8035.T) and Dutch lithography specialist ASML Holding NV (ASML.AS), were the two critical players needed to make the sanctions effective, making their governments' adoption of the curbs a key milestone, the report said.

The new curbs may be announced in the coming weeks, it added.

Japan's Ministry of Economy, Trade and Industry as well as Netherlands' foreign affairs ministry did not immediately respond to Reuters' requests for comment. (Reuters)