Asia Daily: April 24, 2024
News
Blinken begins key China visit as tensions rise over new US foreign aid bill. U.S. Secretary of State Antony Blinken has started a crucial visit to China, soon after the U.S. Senate approved a foreign aid bill likely to strain U.S.-China relations further. This bill allocates substantial funds to Taiwan, Ukraine, and Israel, and mandates the sale of TikTok's parent company, ByteDance. These moves have exacerbated tensions, particularly concerning Taiwan, which China considers a renegade province. This trip follows high-level engagements including a conversation between Presidents Biden and Xi and visits by other U.S. officials. Matthew Lee, AP News, April 24
North Korea sends a delegation to Iran in a growing effort to break its diplomatic isolation. A high-level North Korean delegation, led by Minister of External Economic Relations Yun Jung Ho, is currently visiting Iran, marking the first such meeting since the COVID-19 pandemic began. This visit is part of North Korea's broader strategy under Kim Jong Un to strengthen ties with countries opposing the United States amidst escalating military tensions. Both North Korea and Iran have shown support for Russia's actions in Ukraine and have faced accusations of aiding Russian military efforts. Kim Tong-hyung, AP News, April 24
North Korea leader Kim's sister: we will build overwhelming military power. Kim Yo Jong, sister of North Korean leader Kim Jong Un, has declared that North Korea will continue to strengthen its military capabilities to the highest level to ensure national sovereignty and regional peace. This statement follows a series of intensified military exercises by the U.S. and South Korea, which North Korea perceives as threats to its security. The recent aerial drills involving about 100 military aircraft are cited by Pyongyang as provocations preparing for nuclear war, although the U.S. and Seoul maintain these are defensive measures. Jack Kim, Reuters, April 23
Marcos rules out firing Duterte. Philippine President Ferdinand Marcos Jr. has declared that he will not dismiss Vice President Sara Duterte from her concurrent role as Education Secretary. This decision comes amid speculations and criticisms about her continued tenure in the position. Duterte recently attended a rally where her father, former President and current Senate candidate, Rodrigo Duterte, accused the president of being a drug addict. Catherine S. Valente, The Manila Times, April 24
ASEAN Future Forum 2024 wraps up in Hanoi. The ASEAN Future Forum 2024 concluded in Hanoi, marking the end of discussions that focused on strengthening regional cooperation and addressing future challenges. Key topics included economic integration, climate action, and technological innovation within ASEAN. Delegates emphasized the importance of unity and collaborative efforts to tackle these issues effectively. The forum also served as a platform for member countries to align their strategies and foster a collective approach to regional development and stability. Vietnam News, April 24
Ex-Japan PM Aso meets Trump in New York ahead of Nov. election. Former Japanese Prime Minister Taro Aso met with former U.S. President Donald Trump in New York, a notable encounter ahead of the November election. This meeting underscores the ongoing rapport between Aso and Trump, reflecting their enduring political and personal connections. While details of their discussions remain private, such engagements highlight the significance of maintaining international relationships beyond current official capacities, potentially influencing perspectives and policies in both nations. Kyodo News, April 24
South China Sea: amid tension, US and Chinese navy chiefs discuss increasing security challenges in Indo. In a recent engagement amid escalating tensions, the naval chiefs of the US and China have opened dialogue concerning the growing security challenges in the Indo-Pacific, particularly in the South China Sea. The South China Sea, a critical maritime route, has been a focal point of military maneuvers and territorial claims, intensifying the need for effective communication to ensure regional stability and security. Amber Wang, South China Morning Post, April 24
Indonesia declares Prabowo Subianto president-elect after court rejects rivals’ appeal. Indonesia's electoral commission has formally declared Prabowo Subianto as the president-elect after the country’s highest court dismissed appeals against his victory by rival candidates. Subianto, currently serving as the defense minister, secured the presidency with a significant majority, receiving 58.6% of the vote. The Constitutional Court's decision, which cannot be appealed, came after allegations of electoral fraud and nepotism were not substantiated. Subianto will assume office in October, succeeding Joko Widodo. Niniek Karmini and Fadlan Syam, AP News, April 24
Rosatom set to build small nuclear power plants in Uzbekistan. Russia's state atomic energy corporation, Rosatom, has announced plans to construct small modular nuclear reactors (SMRs) in Uzbekistan. This initiative is part of a broader strategy to enhance Uzbekistan's energy independence and diversify its power generation sources. The agreement includes the development and operation of these facilities, emphasizing safety, efficiency, and sustainability. The SMRs are designed to meet increasing energy demands while adhering to stringent environmental standards, positioning Uzbekistan as a leader in innovative nuclear technology in the region. Times of Central Asia, April 24
Our Party leads number game with 14 members elected in Solomon Islands election. In the recent Solomon Islands election, Our Party has emerged as a frontrunner by securing the election of 14 members to the national parliament. This significant achievement positions Our Party as a major force in the country's political landscape. The success reflects the party’s growing influence and the electorate's support for its policy agenda, which includes economic development and social reforms. The results could shape the formation of the next government, with Our Party poised to play a pivotal role in legislative processes and governance. PINA, April 24
Yen drops to 155 range against US dollar, new 34-yr low. The Japanese yen has fallen to a new 34-year low, reaching the 155 range against the US dollar. This significant depreciation highlights ongoing economic pressures and market dynamics influencing Japan's currency. Factors contributing to the yen's decline include differing monetary policies between Japan and other major economies, particularly the US, where interest rates are rising. The weaker yen poses challenges for import costs but benefits exporters by making Japanese goods cheaper abroad. Kyodo News, April 24
Myanmar junta says its troops have taken back trade hub on Thai border. The Myanmar military has announced that its forces have regained control of a key trade hub along the Thai border, which had been under the control of ethnic armed groups. This strategic location is crucial for both the local economy and for the broader regional trade dynamics. The military's takeover is part of ongoing efforts to assert control over contested areas amidst the country's political unrest and conflict. Myanmar Now, April 24
'Isolation policy' sees more opposition figures come in from the cold. In Cambodia, the government's "isolation policy" aimed at marginalizing political opposition appears to be shifting as more opposition figures are being reintegrated into the political landscape. This change is seen as an attempt to enhance political dialogue and reduce tensions within the country. The move involves allowing exiled or previously sidelined politicians to participate more actively in the nation’s governance and political processes. Niem Chheng, The Phnom Penh Post, April 24
Move Forward seeks 15 more days to file defence. Thailand's Move Forward Party has requested an additional 15 days to prepare its defense in response to legal challenges. This request comes as the party faces significant political and legal pressure amidst Thailand's turbulent political climate. The extension is sought to ensure a thorough and robust defense, highlighting the complexities involved in the legal proceedings against them. Aekarach Sattaburuth, The Bangkok Post, April 24
Long Form
Sri Lanka’s Debt Restructuring Talks With Private Bondholders Hit a Snag. Sri Lanka's debt restructuring discussions with private bondholders have encountered significant difficulties. Despite engaging in what were described as constructive discussions with the Steering Committee of the Ad Hoc Group of Bondholders, which controls approximately 50 percent of the country's international sovereign bonds totaling about $12 billion, the two parties failed to agree on the terms of restructuring. This roadblock represents a crucial challenge for Sri Lanka as it attempts to navigate its financial crisis. Rathindra Kuruwita, The Diplomat, April 24
Whisky or Weapons? Britain’s Changing Tone on Taiwan. The UK's approach to Taiwan is shifting in the context of growing concerns over China's international actions. Recent discussions in British Parliament, particularly by Minister of State for the Indo-Pacific Anne-Marie Trevelyan, show this shift. Taiwan is increasingly seen not just as an economic partner but as a key piece in Britain's broader geopolitical strategy concerning China. This change reflects a more pronounced British response to security threats, including recent cyber incidents attributed to China. The evolving British stance suggests a deeper engagement with Taiwan, potentially moving beyond trade to include security aspects. Max Dixon, The Diplomat, April 24
Toward Germany-South Korea Cooperation in Economic Security. Germany and South Korea, both manufacturing giants, face parallel challenges in addressing global economic security amidst U.S.-China tensions. Their high manufacturing shares of GDP—25.6% for South Korea and 18.4% for Germany in 2022—highlight their critical roles in their respective regional value chains. This common ground lays the foundation for potential cooperation to counteract trade protectionism, export controls, and competitive pressures from China. By leveraging their industrial strengths and addressing shared vulnerabilities, these nations could enhance their strategic partnership to safeguard their economic interests in an increasingly complex global landscape. Seungjoo Lee and Max J. Zenglein, The Diplomat, April 24
Japanese companies navigate workplace revolution as job hunters get choosier. Japanese companies are experiencing a change in workplace dynamics as younger job seekers prioritize work-life balance and attractive compensation over traditional employment models. Driven by demographic changes and evolving societal norms, businesses are adapting to a more selective workforce that values flexibility and personal well-being. This change is demonstrated by MinebeaMitsumi's strategic pivot to enhance its visibility and appeal to potential employees through various public engagements. The broader labor market is also adjusting, with companies increasingly recognizing the need to offer better conditions to attract and retain talent. This trend is reshaping Japan's corporate culture, emphasizing the importance of adapting to the modern workforce's expectations to sustain economic growth and innovation. Sayumi Take, Nikkei Asia, April 24
Papua New Guinea's planned gold monopoly will weigh economy down. Papua New Guinea's proposal to establish a national monopoly on gold refining and marketing through the creation of a National Gold Corp could adversely impact its economy. This plan, driven by Prime Minister James Marape, aims to shift control from multinational mining firms to a new entity potentially linked to a little-known Singapore-based company, Refinery Holdings. Critics argue this move could stifle the key export sector, disrupt foreign investment, and lead to increased corruption, undermining the nation's economic stability and international reputation. The plan has stirred concern among investors and within the local business community, with many viewing it as detrimental to the broader national interest. Carolyn Blacklock, Nikkei Asia, April 24
Yen's decline will inevitably affect confidence in Japan's economy. The persistent decline of the Japanese yen is raising concerns about the overall confidence in Japan's economy among global investors and local households alike. With the yen's value falling, there are increasing doubts about the effectiveness of Japan's economic policies and the impact on everyday financial security for its citizens. Ending quantitative easing is suggested as a crucial step towards stabilizing the currency and restoring normal economic conditions. This shows the challenges faced by Japan in balancing international perceptions of its financial markets with the realities experienced by its own population. William Pesek, Nikkei Asia, April 24
Indonesia’s burning coal dilemma. Indonesia is grappling with the environmental and health repercussions of its substantial reliance on coal, with an urgent change needed for more sustainable energy sources. As one of the world's leading coal producers and consumers, Indonesia has 254 operational coal-fired power plants, and more in development, despite its goal to achieve net-zero emissions by 2060. The transition away from coal faces significant obstacles including political will, financial support, and resistance from vested interests within the coal industry. The Indonesian government's roadmap for phasing down coal power includes measures to prevent new coal unit approvals and promote cleaner technologies. However, the true cost of coal, accounting for its broader environmental and social impacts, argues strongly for a move to cleaner alternatives. The decommissioning of coal plants also presents opportunities for repurposing infrastructure for renewable energy projects, critical for sustainable community development and environmental remediation. Herni Ramdlaningrum, East Asia Forum, April 24