Asia Daily: April 19, 2024
News
China’s ambassador to Canada, Cong Peiwu, leaves post amid tensions. Cong Peiwu, China's ambassador to Canada, has returned to China after a nearly five-year term marked by significant diplomatic tensions, including issues of election meddling and the high-profile detention of Canadians in China. His departure coincides with Canadian Deputy Foreign Minister David Morrison's visit to China, aimed at navigating these strained relations. South China Morning Post, April 19
Indians vote in the first phase of the world’s largest election as Modi seeks a third term. Millions of Indians started voting in a pivotal six-week election that tests Prime Minister Narendra Modi's influence and his Hindu nationalist agenda. Voters across 21 states participated, reflecting on Modi's leadership amid issues like economic distress and social polarization. This election could secure Modi as only the second leader after Nehru to win three consecutive terms. Ashok Sharma and Krutika Pathi, AP News, April 18
Kazakhstan and Kyrgyzstan enhance allied relations. Presidents of Kazakhstan and Kyrgyzstan, Kassym-Jomart Tokayev and Sadyr Japarov, have reinforced their bilateral relations by signing an agreement to deepen and expand their alliance. This agreement, established during a high-level meeting, focuses on enhancing economic, trade, and investment ties, with an ambitious target to increase trade turnover to $2 billion. They also agreed on advancing regional cooperation in sectors like transportation, water use, and energy resources. The Times of Central Asia, April 19
China steels itself for new front in trade war after US proposes tariffs on metals. The U.S. has proposed tripling tariffs on Chinese steel and aluminum, marking a significant escalation in trade tensions. This move by President Joe Biden, part of his campaign efforts, signals a potential expansion of the ongoing trade war. Analysts anticipate China will retaliate, complicating global trade dynamics. This development follows increased scrutiny over China's manufacturing capacities, with implications for both economic and diplomatic relations worldwide. Amanda Lee and Kinling Lo, South China Morning Post, April 18
Military to build coastal bases to fortify defense. The Philippines is set to expand its military infrastructure by constructing new bases along strategic coastal areas including the eastern seaboard and other key frontiers. Announced by Gen. Romeo Brawner Jr., this development aims to enhance the nation's defensive posture against increasing external threats. The strategic locations were chosen to optimize surveillance and response capabilities along vital maritime routes. Francisco Tuyay, The Manila Times, April 19
Ex-Japan PM Aso eyes meeting with Trump during trip to N.Y. Former Japanese Prime Minister Taro Aso plans to meet Donald Trump during his upcoming visit to New York. This meeting is strategically timed as Trump has recently secured the Republican presidential nomination and aims for a political comeback. Aso's visit, from Monday to Thursday, is seen as part of Japan's efforts to adapt to the potential changes in U.S. leadership and policy. Kyodo News, April 19
MFP outlines handout risks. The Move Forward Party (MFP) has raised concerns over the Pheu Thai-led government's proposed 500-billion-baht digital wallet scheme, warning it could deplete funds needed for emergencies. Highlighted risks include exacerbated financial vulnerability amid global economic crises and potential large-scale corruption. MFP's criticism comes as the scheme aims to stimulate the economy but may leave inadequate funds for other essential social programs. Aekarach Sattaburuth, Bangkok Post, April 19
Yoon proposes first-ever meeting with opposition leader. South Korean President Yoon Suk Yeol has invited the main opposition leader, Lee Jae-myung, for a meeting at the presidential office next week. This invitation follows the Democratic Party's recent parliamentary election victory. If realized, this meeting would be the first since Yoon took office in May 2022, aiming to foster better communication and cooperation amidst the changed political landscape. Lee Haye-ah, Yonhap News Agency, April 19
Kazakh, Chinese, and Russian companies unite on polyethylene production plant. In a significant tripartite agreement, Kazakhstan’s KazMunayGas, China’s SINOPEC, and Russia’s SIBUR have finalized their collaboration to construct a polyethylene production plant in Kazakhstan’s Atyrau region. This $7.7 billion project aims to produce 1.25 million tons of polyethylene annually, using advanced technology licensed from Chevron, Phillips, and Univation. Target markets include CIS countries, China, Turkey, and Europe, with the plant scheduled for completion by 2029. The Times of Central Asia, April 19
Marcos meets New Zealand Prime Minister Luxon in Malacañang. Philippine President Ferdinand Marcos Jr. hosted New Zealand Prime Minister Christopher Luxon, aiming to strengthen bilateral relations. The meeting included official arrival honors at Malacañang's Kalayaan Grounds, reflecting the growing ties between the two nations. This visit marks a significant step in enhancing cooperative efforts across various sectors, including trade and regional security. Catherine S. Valente, The Manila Times, April 19
Việt Nam, China foster judicial cooperation to build Socialist rule-of-law state. Việt Nam and China have strengthened their judicial cooperation to advance the development of a socialist rule-of-law state. This collaboration is highlighted by the signing of key cooperation documents, underscoring their commitment to share legal experiences and enhance governance. The discussions between the Ministers of Justice from both countries also focus on exchanging best practices in law building, legal education, and enforcement, aiming to support each nation's socio-political goals. Vietnam News, April 19
TikTok deemed harmful to kids' health in Kyrgyzstan. Kyrgyzstan's Ministry of Digital Development has blocked access to TikTok, citing its negative impact on children's mental and moral development. This decision follows concerns about harmful content and is supported by a legal framework that restricts web content for minors. The move reflects broader efforts to protect youth from online dangers, though it has sparked debate among local content creators and the public about freedom and content management. Ayzirek Imanaliyeva, Eurasianet, April 19
Anti-junta forces fire on air bases near Myitkyina, Mandalay. In a recent escalation, anti-junta forces in Myanmar attacked air bases near Myitkyina and Mandalay, utilizing electric charge-activated rockets. The Northern Brotherhood People’s Defence Force confirmed their targeted assault aimed at disrupting junta operations, which include frequent airstrikes from these bases. The attacks reflect ongoing resistance efforts against the military government's rule amid widespread civil unrest. Min Maung, Myanmar Now, April 19
Foreign Minister Battsetseg to chair 80th session of ESCAP. Mongolia's Foreign Minister, Battsetseg Batmunkh, is set to preside over the 80th session of the UN Economic and Social Commission for Asia and the Pacific in Bangkok. This significant event, scheduled for April 22-26, 2024, will address advancing digital innovation to promote sustainable development throughout the region. Mongolia's leadership role emphasizes its ongoing commitment to regional development since joining ESCAP in 1961. Самбууням.М, Montsame, April 19
Indonesia seeks new oil, gas suppliers amid Middle East conflicts. Indonesia is exploring alternative oil and gas suppliers from Africa and Latin America in response to escalating Middle East conflicts. Energy Minister Arifin Tasrif highlighted Mozambique and Guyana as potential sources, aiming to diversify import routes to enhance energy security. The initiative is part of Indonesia’s strategy to mitigate risks associated with geopolitical tensions and ensure stable energy supplies. ANTARA News, April 19
Yoon, Romanian president to hold summit in S. Korea next week. South Korean President Yoon Suk Yeol is set to host Romanian President Klaus Iohannis for a summit focusing on strategic cooperation in arms, nuclear energy, and more. This visit, running from Monday to Thursday, follows their previous discussions at the NATO summit in Lithuania, aiming to expand bilateral cooperation beyond traditional sectors like autos and steel. Lee Haye-ah, Yonhap News Agency, April 19
Long Form
The Trouble with Micronesia’s New China Policy. Micronesia's President Wesley Simina's recent state visit to China, following a renewal of the Compact of Free Association with the United States, has raised concerns regarding Micronesia’s diplomatic stance. During his visit, Simina expressed opposition to the AUKUS security pact and support for China's Global Security Initiative, signaling a possible shift in Micronesia's foreign policy that could complicate its long-standing relationship with the United States. This development highlights the delicate balance Micronesia must maintain between its traditional alliances and new geopolitical realities, posing potential challenges for its diplomatic relations in the Asia-Pacific region. Richard Clark, The Diplomat, April 19
US and Europe: 2 Different Approaches to Restricting Chinese EVs. The United States and Europe are adopting contrasting strategies in their approach to managing the influx of Chinese electric vehicles (EVs). While both regions acknowledge the need to regulate the market due to China's massive production capabilities, their methods and goals vary significantly. The U.S. has explicitly labeled Chinese EVs as a national security threat, leading to stringent trade restrictions. In contrast, Europe focuses more on balancing market competition without directly invoking security risks. This divergence stems from differing economic priorities and the strategic importance they place on domestic industries in relation to Chinese imports. You Wong, The Diplomat, April 19
The Key Takeaways From Chinese FM Wang Yi’s Visit to Indonesia. Chinese Foreign Minister Wang Yi's recent visit to Indonesia underscores Beijing's efforts to strengthen ties with the incoming Indonesian administration. This diplomatic engagement follows closely on the heels of Defense Minister and President-elect Prabowo Subianto's visit to China. Wang's discussions with Indonesian officials, including President Joko Widodo, reflect a mutual commitment to regional peace and stability amidst rising tensions in Southeast Asia. The visit signifies both countries' intent to maintain and enhance their strategic partnership, focusing on peace and cooperation within the region. Muhammad Zulfikar Rakhmat, The Diplomat, April 19
China's technological development has run out of steam. China's technology sector, once a bustling hub of innovation and rapid growth, is now experiencing a significant slowdown. The decline is attributed to internal policies under President Xi Jinping, which have stifled private sector development and innovation. This includes harsh regulatory actions against the tech industry, like anti-monopoly investigations and the nationalization of tech enterprises. Additionally, a lack of sufficient domestic advancements in areas such as semiconductor technology has left China reliant on foreign chips, further hampering progress. The country's shift from a market-driven innovation model to a more state-controlled approach has resulted in decreased venture capital investment and a reduction in the overall number of high-value startups, known as unicorns. This situation reflects broader systemic issues within China's approach to technology development, posing long-term challenges to its status as a global tech leader. Nina Xiang, Nikkei Asia, April 19
Japan's small EV battery suppliers feel the heat in race for scale. In Japan, the rapidly growing demand for electric vehicles (EVs) is putting immense pressure on smaller battery suppliers to expand and innovate at a pace similar to their larger counterparts. These companies play a crucial role in the supply chain but struggle with the scale of investment needed to keep up with industry demands. They face challenges in scaling up production due to limited financial resources and concerns about borrowing, which could threaten their operational independence. Additionally, the Japanese government encourages these companies to form alliances to enhance competitiveness, but there is hesitancy to relinquish control over proprietary technologies. This situation highlights the tension between maintaining traditional business models and adapting to the fast-evolving EV market. Ryohtaroh Satoh, Nikkei Asia, April 19
State-backed developers are taking over the gaming industry. The dominance of state-owned enterprises (SOEs) in China's property sector is reshaping the landscape, just as regulatory bodies intended. With major Chinese cities facing a transformation in their real estate markets, SOEs like Vanke and Greenland are leading this shift, receiving significant support from local governments. This support includes favorable financing terms that private companies typically don't receive, affirming their semi-state status. The strategic positioning of these SOEs is increasingly crucial as China aims to establish a new development model focused on providing affordable housing, rather than maximizing profits. This shift is causing a realignment of the market, where state-backed firms are expected to take on a more significant role due to their ability to sustain operations through extended periods of low profitability, which is not viable for their private counterparts.
,, April 19