Asia Daily: April 30, 2025

China

China passes private sector law, addressing gripes of beleaguered businesses. China’s top legislature passed a long-awaited law to boost the private economy, aiming to address chronic concerns from non-state firms over unfair treatment and regulatory burdens. The 78-article Private Economy Promotion Law, effective May 20, promotes fair competition, safeguards property rights, and bans arbitrary penalties. The law follows Xi Jinping’s renewed calls for private-sector engagement amid weak recovery and U.S. trade pressures. Frank Chen, South China Morning Post, April 30

Chinese navy patrols South China Sea, says Philippines creating ‘disturbances’. China’s navy conducted a patrol in the South China Sea, accusing the Philippines of provocations and drawing in outside powers through joint patrols. The operation coincided with a Philippine-U.S. air mission involving FA-50s, B-1B bombers, F-16s, and an F-18. China’s Southern Theatre Command said its forces remain on high alert to defend territorial sovereignty and maintain regional stability. Karen Lema and Ben Blanchard, Reuters, April 29

China’s military rapidly expands use of low-cost AI-powered drones in ‘phased leap’. China is accelerating deployment of low-cost, AI-powered drones across its military, featuring lightweight models with dual-rotor lift, grenade payloads, and neural processing for autonomous targeting. These systems, described as a “phased leap,” are designed for infantry use and can be launched via grenade launchers. The PLA is also fielding fibre-guided drones resistant to jamming and enhancing battlefield agility through modular, improvised variants. Enoch Wong, South China Morning Post, April 29

China's State Council appoints, removes officials. China’s State Council announced several personnel changes on April 28. Rao Quan was appointed as head of the National Cultural Heritage Administration, succeeding Li Qun, who was also removed from his role as deputy minister of culture and tourism. Additionally, Zheng Qinghua was dismissed from his position as president of Tongji University. No replacements for the university role were immediately announced. State Council of the People’s Republic of China, April 28

Japan

40% of Japan prefectures offer financial aid over U.S. tariffs: poll. A Kyodo News survey found that 40% of Japan’s prefectural governments are offering or planning to offer financial aid to businesses affected by U.S. tariffs, especially in the auto, semiconductor, and agricultural sectors. Eighteen prefectures have launched or committed to support programs, and nine more are considering similar steps. All 47 prefectures expressed concern, with many urging export diversification and continued negotiations with Washington. Kyodo News, April 29

LDP’s Moriyama pushes for concrete results on China’s seafood import ban. Liberal Democratic Party Secretary-General Hiroshi Moriyama led a cross-party delegation to Beijing to press Chinese officials for concrete steps toward lifting China’s ban on Japanese seafood imports. The talks with senior Chinese leader Zhao Leji concluded without commitments, as Beijing emphasized bilateral stability amid heightened global tensions following tit-for-tat U.S.-China tariffs. Eric Johnston, The Japan Times, April 29

South Korea

Prosecutors raid ex-President Yoon's private residence. South Korean prosecutors raided the home of former President Yoon Suk Yeol on April 30 amid a probe into alleged ties between his family and controversial shaman Jeon Seong-bae, also known as Geon Jin. Investigators are examining claims that a Unification Church official gave luxury gifts to Jeon as a conduit for Yoon’s wife, Kim Keon Hee, after the 2022 election. Authorities aim to verify if the gifts were delivered. Yoo Cheong-mo, Yonhap News Agency, April 30

Supreme Court to rule on DP presidential candidate’s election law violation case Thursday. South Korea’s Supreme Court will issue a ruling Thursday on Democratic Party candidate Lee Jae-myung’s election law violation case, just days after he secured the party’s nomination. Prosecutors appealed a lower court decision that acquitted Lee of making false statements during the 2022 campaign. A conviction with a fine of 1 million won or more would bar him from running. The ruling will be broadcast live. Chae Yun-hwan, Yonhap News Agency, April 29

South Korea’s conservative party narrows down presidential candidates to 2. The People Power Party advanced Kim Moon-soo and Han Dong-hoon to the final round of its presidential primary, eliminating Ahn Cheol-soo and Hong Joon-pyo. The winner will face Democratic Party frontrunner Lee Jae-myung in the June 3 election. A final runoff vote will be held this week. Acting President Han Duck-soo’s potential candidacy remains a key variable as conservatives consider a unified bid. Jung Da-hyun, The Korea Times, April 29

North Korea

North Korea conducts first test firing of its new warship’s weapons system. North Korea has conducted the first test of its newly unveiled 5,000-tonne "Choe Hyon-class" warship, launching cruise and anti-air missiles and firing artillery under the observation of Kim Jong-un. State media reported that the ship will enter service early next year. Kim said the navy must now accelerate its nuclear armament to defend maritime sovereignty and national security. Hyunsu Yim, Reuters, April 29

N. Korean women’s union members privately mock Kim’s ‘Our State First’ ideology. Members of North Korea’s Socialist Women’s Union expressed cynicism following an April 18 study session on Kim Jong-un’s “Our State First” ideology. Instructors emphasized national pride, Juche thought, and loyalty to Kim, but attendees criticized the abstract content and questioned its relevance to their daily hardships. Seon Hwa, Daily NK, April 30

Thailand

Bhumjaithai concedes by-election loss. Thailand’s Bhumjaithai Party conceded defeat in the Nakhon Si Thammarat Constituency 8 by-election, where Klatham Party candidate Kongkiat Ketsobat secured an unofficial 38,680 votes. The seat was vacated after Bhumjaithai’s Mukdawan Luengsinil was banned for vote-buying. Labour Minister Phiphat Ratchakitprakarn attributed the loss to Kongkiat’s hometown support. Bangkok Post, April 30

PM urges public awareness on benefits of Entertainment Complex Bill. Prime Minister Paetongtarn Shinawatra called on coalition partners to promote understanding of the Entertainment Complex Bill, highlighting its potential to attract foreign investment, generate tax revenue, and create jobs through large-scale events like concerts. Speaking after a Cabinet meeting in Nakhon Phanom, she noted the bill introduces a new development model for Thailand and emphasized its fiscal advantages. The Nation, April 29

Vietnam

Grand ceremony commemorating the 50th anniversary of national reunification held in Ho Chi Minh City. Thousands gathered at Thong Nhat Square for a grand ceremony marking 50 years since Vietnam’s reunification, featuring a military parade, cultural performances, and a 21-gun salute. Top leaders, including General Secretary To Lam and Prime Minister Pham Minh Chinh, praised the historic 1975 victory as a turning point in global anti-colonial movements. Vietnam News, April 30

Myanmar

Laos

Laos, China deepen cooperation in international logistics, promote supply chain integration. Laos and China held a high-level logistics conference in Vientiane on April 26 to boost cooperation and supply chain integration. The event, organized by Chengdu municipal and trade bodies, promoted Chengdu’s role as a regional logistics hub under the Belt and Road Initiative. Lao and Chinese enterprises signed multiple cooperation agreements, and the Lao National Chamber of Commerce and Industry announced plans to open a liaison office in Chengdu. Vientiane Times, April 30

Laos, China, Cambodia launch direct cross-border transport route. Laos, China, and Cambodia officially launched a direct cross-border transport route on April 27 to streamline logistics under the Greater Mekong Subregion framework. The route, which begins in Kunming and ends in Phnom Penh via Vientiane, uses smart logistics and a “one container to the end” model, cutting travel time from 13 to 6–8 days. Thongsavanh Souvannasane, The Laotian Times, April 29

Philippines

Japan and the Philippines push security and economic ties on Ishiba's visit. Japanese Prime Minister Shigeru Ishiba and Philippine President Ferdinand Marcos Jr. pledged to deepen defense and economic cooperation amid regional tensions and U.S.-China trade frictions. The leaders discussed Japan's security assistance program and began talks on an information security pact. They reaffirmed trilateral ties with the U.S. and opposition to coercive actions in the East and South China Seas. Karen Lema, Reuters, April 29

Indonesia

Indonesian Navy struggles with $191 million fuel debt, budget cuts. Indonesian Navy Chief Admiral Muhammad Ali revealed that naval operations are being severely impacted by a Rp 3.2 trillion ($191 million) fuel debt owed to Pertamina. He urged the government to cancel the arrears to preserve operational readiness. The Navy faces a Rp 6.07 trillion budget cut as part of President Prabowo’s 2025 austerity plan, which targets Rp 306.6 trillion in national savings. Yustinus Paat, Jakarta Globe, April 29

Malaysia

Maldives President Mohamed Muizzu ends official visit to Malaysia. Maldives President Mohamed Muizzu concluded a four-day official visit to Malaysia on April 30, his first since taking office in November 2023. The visit included the signing of three Memoranda of Understanding and two Exchange of Notes in tourism, health, and sports. Muizzu and Prime Minister Anwar Ibrahim pledged to boost cooperation through initiatives like Muslim-friendly and Halal tourism. The Star, April 30

PM Anwar hails Carney’s Canada election win as ‘new chapter’, eyes stronger bilateral trade. Malaysian Prime Minister Anwar Ibrahim congratulated newly elected Canadian Prime Minister Mark Carney, calling his victory a milestone that reaffirms Canada’s principled leadership and resilience. Anwar expressed intent to deepen bilateral ties through frameworks like the CPTPP and voiced confidence in Canada’s continued commitment to constructive international engagement. Malay Mail, April 30

Singapore

Candidates gear up for final push on penultimate day of hustings. With two days left before Singapore's May 3 election, political parties intensified rallies and walkabouts. The PAP spotlighted new candidate Elysa Chen, while the WP’s Andre Low issued an apology over leaked Telegram remarks. Ministers clashed over budget policy and U.S. tariffs, and opposition leaders criticized government positions on healthcare, transport, and foreign policy. Channel News Asia, April 30

Taiwan

Taiwan says Somalia bans entry to its citizens amid Somaliland dispute. Taiwan’s foreign ministry said Somalia has barred Taiwanese passport holders from entry, attributing the move to Chinese pressure linked to Taiwan’s ties with Somaliland. The Somalia Civil Aviation Authority cited compliance with U.N. Resolution 2758, which recognizes Beijing under the "one China" principle. Taiwan condemned the action as politically motivated and demanded its reversal, arguing the resolution does not determine Taiwan’s status. Ben Blanchard, Reuters, April 30

PH eyes deeper military ties with Taiwan. The Philippines is exploring expanded military cooperation with Taiwan, including potential joint activities and regularized warship transits through the Taiwan Strait, according to Rear Admiral Roy Vincent Trinidad. Though formal diplomatic ties remain absent, informal military dialogue is increasing amid rising tensions with China. Franco Jose C. Baroña, The Manila Times, April 30

Kazakhstan

Kazakhstan, Oman set to boost trade relations in agricultural and industrial sectors. A Kazakh delegation led by Deputy Akim Askar Kanybekov met with Oman’s finance minister to explore investment and joint projects in agriculture, wool processing, and tourism. The two sides discussed trade expansion and visited leading Omani firms to exchange operational insights. Omani officials reaffirmed interest in Kazakh goods and proposed hosting Kazakh entrepreneurs in Muscat to deepen bilateral economic ties. Zhanna Nurmaganbetova, Kazinform, April 29

Uzbekistan

Nuclear energy project in Uzbekistan enters construction phase. Uzbekistan has begun construction on its first small-capacity nuclear power plant in Jizzakh Region, featuring six 55-MW reactors built by Russia’s Rosatom. The project was announced during the INNOPROM. Central Asia industrial exhibition in Tashkent and follows completed legal formalities. President Shavkat Mirziyoyev emphasized the role of international cooperation, with Chinese firms also involved in equipment and financing. Sadokat Jalolova, The Times of Central Asia, April 29

Senate of Uzbekistan approves amendments to system of enforcement of judicial acts. Uzbekistan’s Senate passed reforms aimed at streamlining enforcement procedures and improving transparency. The changes allow automatic transfers, electronic enforcement documents, and protect small debtor funds from seizure. Enforcement officers may now use mobile video tools, and penalties for noncompliance have been raised. Uzbekistan Daily, April 29

Northeast Asia

China Is Determined to Hold Firm Against Trump’s Pressure. China is adopting a firm and measured approach in response to President Trump’s escalating trade war and unpredictable diplomacy. While both Washington and Beijing acknowledge the importance of leader-level engagement, China insists on careful preconditions for a Trump-Xi meeting, wary of unprepared interactions. Beijing remains uncertain about the objectives behind U.S. tariffs—whether to repatriate industries or rebalance trade—complicating its willingness to negotiate. Despite economic challenges, Chinese officials believe the U.S. is overestimating its leverage and underestimating China's resilience, prompting a change toward more assertive retaliation. Spillover risks are rising in finance, security, and U.S.-China societal ties, exacerbated by American rhetoric targeting the Chinese Communist Party. Meanwhile, China is pursuing regional diplomacy and adjusting its strategy to address changing global dynamics, including the unpredictability of U.S. policy and weakened multilateral engagement. Internally, Chinese leaders are debating economic reforms and strategic responses, including implications for Taiwan, while waiting for greater clarity on U.S. intentions. Rick Waters and Sheena Chestnut Greitens, Carnegie Endowment for International Peace, April 25

North Korea’s Acknowledgement of War Participation. North Korea has officially confirmed its military deployment to Russia, marking a significant change in both domestic and international messaging. The announcement, issued via a rare “written stand” by the Central Military Commission, acknowledged troop participation and casualties in Russia’s war against Ukraine, citing the 2024 DPRK-Russia treaty and framing the operation as defensive and aligned with anti-imperialist values. This coordinated revelation, closely timed with similar statements from Moscow, seeks to justify North Korea’s involvement, strengthen bilateral military ties, and boost internal support ahead of the Ninth Party Congress. Notably, Pyongyang omitted direct references to the United States, maintaining a toned-down anti-US stance seen in recent months, likely to retain diplomatic flexibility with the Trump administration. Domestically, the announcement aims to control narratives amid rising awareness of casualties, while internationally, it asserts North Korea’s status as a committed ally to Russia. The strategic timing and content signal Pyongyang’s intention to deepen military cooperation with Moscow and elevate Kim Jong Un’s diplomatic stature. Rachel Minyoung Lee, 38 North, April 28

Sovereignty, Security, & U.S.-China Relations. A 2024 survey by The Carter Center and Emory University reveals that while Chinese public sentiment toward the United States is largely unfavorable, a strong majority recognizes the necessity of peaceful U.S.-China relations for China’s economic growth. The findings show widespread support for alliances with Russia and approval of military coercion coexists with an acknowledgment of the value of diplomacy. While over half oppose force against Taiwan, a significant minority supports unification within five years. Most respondents back continued alignment with Russia, assert Chinese sovereignty over contested regions like the South China Sea, and endorse a strategic military posture, including intervention in Myanmar and potential action against Japan if it alters its defense stance. The poll illustrates mutual understanding between Chinese and American publics that economic rivalry is at the core of bilateral tensions—not misperception—while suggesting paths to de-escalation remain, albeit narrow. Nick Zeller, US-China Perception Monitor, April 29

China’s AI Job Mirage. Despite state media portrayals of booming AI employment, China’s job market tells a more complicated story. With youth unemployment at 16.9% and millions of graduates entering the workforce, government-driven optimism around the “AI+” initiative masks challenges. While elite AI graduates from top universities may secure high-paying roles, most graduates—especially from lesser-known institutions—struggle to find relevant positions. Many AI-related jobs are low-skilled, short-term roles like data labeling, which are increasingly automated. Universities have rushed to overhaul curricula in favor of AI training, often sacrificing quality due to faculty shortages and inadequate specialization. Vocational schools, pushed to produce AI talent, often advertise positions with minimal qualification requirements. These realities reveal a growing mismatch between state-promoted narratives and actual labor market demands. Government policies emphasize AI as a cornerstone of economic growth, yet the widespread portrayal of abundant AI job opportunities obscures the limited access and long-term viability for average graduates. The AI employment boom, as depicted in official channels, remains out of reach for many, exposing the widening gap between national ambition and workforce reality. Alex Colville, China Media Project, April 30

Reassessing Market Commitments: Foreign Firms Exit China Amid Mounting Political and Economic Uncertainty. Foreign direct investment in China has sharply declined amid growing disillusionment with the country's increasingly politicized business environment. Once a magnet for international capital, China is now seeing foreign firms exit or downscale due to policies like the Anti-Foreign Sanctions Law, mandatory data localization, state-backed competition, and coercive diplomacy. Raids on multinational offices and tightened control over intellectual property have deepened concerns about regulatory unpredictability and ideological governance. Despite recent government efforts to lure investors back—such as easing restrictions and rolling out a new Foreign Investment Law—foreign sentiment remains skeptical. Many investors perceive that Beijing now prioritizes political loyalty over economic efficiency, undermining market confidence. Major companies like Yahoo have exited, and FDI plunged by 27.1% in 2024 following a 14% drop in 2023. Although recent U.S. economic instability may create an opening, China must signal a durable commitment to economic openness and legal predictability if it hopes to restore investor trust. Without a fundamental change in governance mindset, foreign capital will remain wary. Jackie Wang, SinoSoutheast Initiative, April 29

Southeast Asia

Convergence and divergence in Australia and Southeast Asia’s economic security approaches. Australia and Southeast Asia share a foundational commitment to free trade and regional economic integration, but diverge in their approaches to economic security, especially regarding China. Australia’s strategy, shaped by its alliance with the United States and experience with Chinese economic coercion, combines moderate policy tools like investment screening and supply chain monitoring with flexibility and limited government intervention. In contrast, Southeast Asia focuses on economic stability as vital to regime legitimacy and prefers a “comprehensive security” framework that supports development without securitizing trade policy. While ASEAN has deepened ties with China through agreements like the ASEAN–China Free Trade Agreement, it also faces rising concerns over growing dependencies, such as trade deficits and reliance on China in tourism and EV sectors. Southeast Asian responses to China’s influence vary by country, with a shared aim of maintaining autonomy. Australia can strengthen cooperation by expanding capacity-building in critical minerals and energy, helping Southeast Asian nations meet sustainability goals while navigating geopolitical risks. Amid potential U.S. decoupling pressures under Trump, Southeast Asia must remain vigilant about the strategic implications of its economic ties with China. Hanh Nguyen, East Asia Forum, April 29

Why Importing More Will Not Save Thailand from Trump’s Tariffs. Thailand’s strategy of increasing imports from the United States in response to President Trump’s sweeping tariffs is unlikely to mitigate the broader challenges posed by deep-rooted trade imbalances and persistent non-tariff barriers. Despite a 90-day pause on further escalation, the newly imposed 36% tariff on Thai goods threatens a trade-dependent economy closely tied to U.S. markets, particularly in sectors like electronics and automotive. Thailand’s attempts to balance trade are hampered by structural issues such as import licensing, tariff-rate quotas, and complex customs incentives, which were highlighted in the USTR’s 2025 trade barrier report. While diversification through free trade agreements and regional integration offers promise, Thai exporters often face limitations due to entrenched global supply chain dependencies and compliance burdens. OEM suppliers, in particular, struggle to move markets because of contracts with dominant multinational firms. To remain competitive, Thailand must implement long-term reforms, including regulatory easing, supply chain reconfiguration, and targeted investment in innovation. Without a cohesive policy framework, short-term import increases will not shield the Thai economy from the disruptive effects of evolving U.S. trade policy. Wannaphong Durongkaveroj, Fulcrum, April 29

After the Grand Compromise: Voter Profiles in Thai Politics. Thailand’s 2023 political realignment, forged through an elite pact between the pro-Thaksin Pheu Thai Party and the conservative establishment to exclude the Move Forward Party (MFP) from power, has upended traditional partisan divides while leaving key voter blocs politically adrift. While party elites have “moved on” from old rivalries, particularly around Thaksin Shinawatra, survey data suggest many voters remain deeply attached to these ideological fault lines. There are four distinct voter types—reconciliatory conservatives, traditional conservatives, populist reformists, and progressive reformists—whose diverging attitudes toward Thaksin and the establishment shape electoral behavior. Voters most alienated by the grand compromise, particularly traditional conservatives and populist reformists, may change allegiances if they view recent alliances as betrayals of core values. This could boost emerging reformist movements like the People’s Party or destabilize the conservative bloc if no viable alternative emerges. The long-term impact hinges on whether voters prioritize ideological consistency or pragmatism in the face of changing party alliances. As electoral fault lines shift from Thaksin-centric politics to the deeper divide between preserving or reforming the conservative status quo, parties that fail to align with these evolving voter priorities risk irrelevance. Napon Jatusripitak and Mathis Lohatepanont, Fulcrum, April 29

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