Asia Daily: April 24, 2025
China
European Parliament in ‘final stages’ of talks with China to remove sanctions on lawmakers. The European Parliament is nearing an agreement with China to lift sanctions imposed on several of its members, potentially paving the way for improved diplomatic and economic relations. The sanctions, enacted in 2021 in retaliation for EU measures against Chinese officials over alleged abuses in Xinjiang, targeted lawmakers and institutions. Recent behind-the-scenes efforts, led by Parliament President Roberta Metsola, have advanced negotiations, with the Chinese ambassador involved in multiple meetings. The thaw in relations comes amid transatlantic strains following President Trump’s return and growing European concern over U.S. tariffs. Upcoming diplomatic visits between EU and Chinese leaders are expected to further facilitate reconciliation and address ongoing trade disputes. Finbarr Bermingham, South China Morning Post, April 24
EVs, tariffs in the spotlight as Chinese automakers take leading role at Shanghai auto show. At the Shanghai auto show, Chinese automakers showcased a strong push into the electric vehicle market amid escalating trade tensions with the U.S. and EU. Companies like BYD, Nio, and Geely unveiled cutting-edge EV models tailored for both domestic and global markets, while foreign giants such as Toyota and BMW centered on their China-focused strategies. With tariffs of up to 145% imposed by the U.S. and rising European duties, many Chinese firms are exploring overseas production to maintain access to key markets. Despite geopolitical uncertainty, China’s EV industry continues expanding rapidly, buoyed by robust domestic demand and technological advances such as ultra-fast charging systems. Elaine Kurtenbach, AP News, April 22
Japan
Japan to emphasize benefits of free trade to U.S. in tariff talks: PM. Prime Minister Shigeru Ishiba announced that Japan will advocate for the advantages of free trade during its upcoming tariff negotiations with the United States, despite President Trump’s ongoing protectionist approach. Ishiba discussed Japan’s contributions through U.S. investments and the potential for mutual job creation. The talks follow recent U.S. tariff hikes, including a 10% baseline duty and a temporary 90-day reprieve on "reciprocal" tariffs. During a parliamentary debate, opposition leader Yoshihiko Noda criticized the government’s stance as overly accommodating and warned of WTO violations. Discussions are also expected to touch on non-tariff barriers and foreign exchange concerns. Kyodo News, April 23
Mood shifts to measured optimism in U.S.-Japan trade dispute. U.S.-Japan trade talks are showing signs of cautious optimism despite ongoing gaps in key negotiation areas. Economic Revitalization Minister Ryosei Akazawa acknowledged persistent differences but noted a change in tone as delegations push forward. The White House confirmed that President Trump’s trade team is actively engaging with numerous partners, receiving 18 proposals and conducting meetings with 34 countries. While final agreements remain distant, preliminary trade frameworks with Japan and India may be signed soon, serving as road maps for continued negotiation rather than comprehensive deals. Francis Tang, The Japan Times, April 23
Nissan commits another $1.4 billion to China with EVs in focus. Nissan has announced a fresh investment of 10 billion yuan ($1.4 billion) in China to strengthen its position in the electric vehicle market, with the funds to be deployed by the end of 2026. The automaker views China's fast-paced automotive sector as a strategic opportunity to regain competitiveness in the EV space. Stephen Ma, Nissan’s head of operations in China, reiterated the company's commitment to staying and competing in the evolving market. The move follows a major leadership reshuffle amid financial instability, with Ma recently transitioning from his previous role as Nissan’s CFO. Nicholas Takahashi, The Japan Times, April 23
South Korea
Go big or go home: Presidential hopefuls pledge mega AI investments. South Korea’s presidential contenders are prioritizing artificial intelligence in their campaigns, pledging unprecedented national investments ranging from ₩50 trillion to ₩200 trillion. Democratic Party front-runner Lee Jae-myung promises ₩100 trillion for AI infrastructure, talent development, and public-access tools like a “Korean-style ChatGPT.” Conservative rival Han Dong-hoon has proposed the largest figure yet—₩200 trillion—with plans to establish a Ministry of Future and Strategy. Other candidates have focused on GPU acquisition, startup support, and AI sovereignty through public-private collaboration. Experts, however, caution that many proposals lack detailed implementation plans, stressing the importance of strategic investment in talent, computing power, and accessible data. Ahn Sung-mi, The Korea Herald, April 23
South Korea seeks tariff relief in high-level trade talks with US. South Korean finance and trade officials are engaging in high-level discussions with their U.S. counterparts in Washington to negotiate tariff relief and address broader trade issues. Deputy Prime Minister Choi Sang-mok and Trade Minister Ahn Duk-geun will meet with U.S. Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer in the first "2+2" trade consultation. The meeting follows recent U.S. tariff hikes under President Trump, including a temporary 25% tariff on South Korean goods, later reduced to 10% for 90 days. The agenda includes nontariff barriers, digital trade, agriculture, and industrial collaboration, with an expanded South Korean delegation aiming for meaningful outcomes. Jo He-rim, The Korea Herald, April 23
North Korea
N. Korean cigarette trade collapses under Chinese police raids. Chinese authorities have escalated enforcement against smuggled North Korean cigarettes, severely disrupting one of Pyongyang’s key illicit revenue streams. The crackdown, led by the State Tobacco Monopoly Administration in coordination with police, has led to arrests, warehouse raids, and heavy penalties for distributors, especially in Liaoning and Jilin provinces. Once a profitable black-market commodity due to their lower cost and comparable quality to Chinese luxury brands, North Korean cigarettes are now facing plummeting distribution as traders retreat under pressure of fines up to 200,000 yuan and potential prison sentences. Approximately 20 brands, including those from Yalu River Cigarette Company and Pyongyang Unha Tobacco Factory, were widely sold prior to the clampdown. While small-scale sales at tourist stalls may continue discreetly, the overall trade has nearly collapsed, severely impacting North Korean trading firms that depended on cigarette exports amid ongoing sanctions. Seon Hwa, Daily NK, April 23
Myanmar
Myanmar junta continues attacks in northern Shan State despite ceasefire. The Myanmar military has continued airstrikes and armed engagements in northern Shan State despite extending a temporary ceasefire meant to last until April 30. The Ta’ang National Liberation Army (TNLA) reported that junta aircraft bombed the village of Ohn Ma Thee near Nawnghkio Township, damaging at least five homes. The regime has been targeting areas along the critical trade route between Mandalay and Muse, with repeated assaults near Bant Bway, a fortified military site. Clashes also persist in Tawng Hkam, further showing the ongoing conflict despite official ceasefire declarations. Myanmar Now, April 23
Cambodia
Manet, Paetongtarn pledge stronger anti-crime, military cooperation. Cambodian Prime Minister Hun Manet and Thai Prime Minister Paetongtarn Shinawatra have agreed to improve bilateral cooperation in combating online scams and other cross-border crimes. During a press conference on April 23, the leaders announced a commitment to preventing the use of their territories for illegal activities such as online fraud, human trafficking, and counterfeit goods smuggling. They also discussed strengthening military collaboration, addressing cross-border environmental pollution, and improving logistics. The two leaders discussed joint efforts against criminal gangs operating in border provinces and outlined goals to boost bilateral trade to $15 billion by 2027. Niem Chheng, Phnom Penh Post, April 23
Malaysia
Visa-free travel: Malaysia and China extend agreement for 5 years following President Xi’s visit. Malaysia and China have extended their mutual visa-free travel agreement for an additional five years, following Chinese President Xi Jinping’s recent state visit to Malaysia. The extension allows Chinese nationals to stay in Malaysia for up to 90 days, with Malaysia receiving the same from China. This move builds on Malaysia’s visa liberalization initiative from December 2023 and is expected to boost tourism and economic growth. Nearly 900,000 Chinese tourists visited Malaysia by April 2025, contributing to one of the country’s most vital economic sectors. Tourism leaders see the policy as a catalyst for long-term planning and expanding experiential tourism, while business groups highlight the potential for increased GDP and hospitality revenue. Channel News Asia, April 23
Singapore
Equip yourselves with the best team to take our nation forward: PM Wong. Prime Minister Lawrence Wong has urged Singaporeans to select the most capable team to lead the nation, referring to the heightened stakes of the upcoming general election. Speaking on April 23 after nomination closures, Wong discussed global uncertainties, economic slowdowns, and rising trade barriers as critical challenges requiring competent leadership. He cautioned against complacency, noting that opposition parties are more organized and every constituency, except one, will be contested. Stressing the need for individuals with integrity and capability, Wong affirmed that while opposition voices have a place, voters must ultimately choose who should govern. He also highlighted the PAP’s efforts to recruit strong new candidates and reiterated the importance of strategic, long-term leadership in a changing global order. Chin Soo Fang, Hariz Baharudin, The Straits Times, April 23
India
Indian troops beef up security in Kashmir after Pahalgam attack. India has intensified security operations in Kashmir following a deadly militant attack in Pahalgam that killed 26 and injured 17, mostly tourists. The assault, the worst in years, prompted India to accuse Pakistan of involvement, leading to the downgrading of diplomatic ties, expulsion of diplomats, and suspension of the Indus Water Treaty. A large-scale manhunt has been launched, and security forces are conducting operations across the region. A previously unknown group, Kashmir Resistance, claimed responsibility. The incident has disrupted tourism in the area, a key economic activity that had been promoted as a sign of restored normalcy since the 2019 revocation of the region's autonomy. Aijaz Hussain, Sheikh Saaliq, Rajesh Roy, AP News, April 23
Uzbekistan
Negotiations take place between the President of Uzbekistan and the Minister of Foreign Affairs of Russia in Samarkand. On April 23, President Shavkat Mirziyoyev of Uzbekistan met with Russian Foreign Minister Sergey Lavrov in Samarkand to reinforce bilateral ties and discuss strategic partnerships. The dialogue focused on implementing high-level agreements and strengthening Uzbek-Russian cooperation across sectors including trade, industry, education, healthcare, and tourism. The officials noted positive trends in mutual investments and regional collaboration. Additionally, they addressed key regional and global issues of mutual concern. UzDaily, April 23
Northeast Asia
The Once and Future China. China’s geopolitical future could diverge sharply depending on whether it maintains Xi Jinping’s confrontational trajectory or transitions to a more moderate form of authoritarianism. Under Xi, China has amplified its surveillance state, tightened control over dissent, and asserted itself militarily and diplomatically, heightening tensions with the West and regional powers. However, a generational shift in leadership could soften this stance. Future leaders—shaped by memories of a more open China—may prioritize economic pragmatism, reduce regional aggression, and support global coexistence without adopting liberal democracy. A less belligerent, more stable China could strengthen its global influence through green energy leadership and technological innovation, offering an alternative model of governance that blends state control with prosperity. Rana Mitter, Foreign Affairs, April 22
How Might China Manage Trump’s Tariff War. China has responded forcefully to escalating U.S. tariffs under President Trump, matching rounds of tariff hikes with duties of its own, now reaching 125%. Beijing's strategy is driven by a desire to avoid appearing weak, safeguard global trade influence, and deter other nations from following Washington’s lead. Potential alternatives include offering reciprocal zero-tariff agreements, diversifying imports to strengthen ties with other trade partners, and boosting domestic consumption through structural reforms. While hopes persist that U.S. market turmoil might prompt a policy change, China is also preparing for prolonged decoupling by recalibrating its economic model to be less export-dependent. Shang-Jin Wei, China US Focus, April 22
China Is Fighting for Bigger Consumer Demand. China's government is actively working to stimulate domestic consumption following a marked economic slowdown driven by a real-estate downturn. A key strategy involves a $1.4 trillion bond program to support local government debt, bolster bank credit capacity, and stabilize the property and stock markets. Authorities are using state mechanisms to convert unsold housing into guaranteed public housing and expand household income support, particularly pensions and childcare subsidies. Additional efforts include removing barriers to rural-urban migration and promoting equitable access to social services. These reforms aim to rebalance the economy by reducing reliance on exports and encouraging domestic consumption growth. Zhang Jun, China US Focus, April 22
The “Great Power” Quadrangle. Global dynamics in the 21st century increasingly revolve around a strategic quadrangle formed by the U.S., China, the EU, and Russia. This framework highlights escalating Sino-American rivalry across economic, technological, and military domains, alongside a deepening EU-Russia confrontation strained by the Ukraine war. As Washington and Brussels grow more aligned, Beijing and Moscow have strengthened ties, though their relationship remains cautious and transactional. Former U.S. President Trump’s return has introduced a potential pivot toward U.S.-Russia rapprochement, complicating traditional alliances. Meanwhile, China and the EU may find new diplomatic space to recalibrate ties and pursue pragmatic cooperation. Brian Wong, China US Focus, April 22
The promise and perils of AI for the Asia Pacific’s green transition. Artificial intelligence is emerging as both a catalyst and a challenge for environmental sustainability in the Asia Pacific. AI improves climate modeling, resource efficiency, and environmental regulation enforcement, with applications ranging from permafrost monitoring to drone-assisted reforestation. Yet, its growth raises significant ecological concerns, including high energy and water demands from data centers, surging greenhouse gas emissions, and mounting e-waste. While countries like the Philippines and Japan have integrated AI into green development strategies, broader regional efforts to address AI’s environmental footprint remain fragmented. Experts call for cohesive policies that link technological innovation with sustainability goals and decarbonization initiatives. James Correia, Diane Gail Maharjan, Masaru Yarime, Agnes Surry, East Asia Forum, April 24
U.S.-ROK Negotiations: An Opportunity to Reset on Trade, Investment, and Technology. The evolving trade talks between the United States and South Korea present a pivotal chance to reinforce economic, technological, and security cooperation. Both countries stand to benefit from deeper collaboration in key sectors including semiconductors, shipbuilding, digital infrastructure, and green energy. South Korea's robust investments in U.S. industries—such as EVs and nuclear energy, show the strength of the bilateral relationship. Yet barriers remain, notably trade imbalances, U.S. tariffs, and South Korean regulatory constraints. Harmonizing digital and cybersecurity standards, addressing market access issues, and leveraging each country's strengths could redefine the alliance amid intensifying global competition and technological disruption. Philip A. Luck, Erin Murphy, and Joseph Lim CSIS, April 22
Quick Take: Further Demolition at Mt. Kumgang Tourist Area. Recent satellite imagery reveals ongoing demolition of South Korean-owned infrastructure at North Korea’s Mt. Kumgang Tourist Area, with the main club and spa building at the Ananti Golf Resort now completely razed. The gas station used for refueling tourist transport has also been dismantled. These developments continue a process initiated by Kim Jong Un in 2019 to reconstruct the area according to North Korean standards, following years of abandonment after a 2008 shooting incident. The Kumgang Family Reunion Center remains largely intact, though auxiliary buildings show signs of partial dismantling, leaving it the last major symbol of former inter-Korean cooperation. Martyn Williams, 38 North, April 23
Southeast Asia
From Resistance to Survival: Myanmar’s Free Press Battles US Aid Cuts. Myanmar’s independent media is under severe strain following a 90-day U.S. foreign aid freeze enacted in January 2025, which halted $268 million in global press freedom grants. The U.S. Agency for Global Media, overseeing outlets like VOA and RFA, scaled back operations, with widespread furloughs. For Myanmar’s exiled media—already operating under duress after the 2021 coup—the funding cut has led to budget losses up to 35%, threatening closure for at least 10 outlets and affecting over 200 journalists. Ethnic-language media are particularly vulnerable. Alternative funding efforts are underway, but unlikely to replace lost U.S. support in time to prevent collapse. Surachanee Sriyai, Fulcrum, April 24