Asia Daily: April 4, 2024
News
'Staunch' friend of Taiwan's to become top US diplomat in Taipei, sources say. Raymond Greene, currently the deputy chief of mission at the U.S. embassy in Tokyo, is set to become the top U.S. diplomat in Taipei this summer. His arrival aligns with the inauguration of Taiwan's new president, amidst rising tensions with China. Greene, known as a firm supporter of Taiwan, previously served as deputy head of the American Institute in Taiwan (AIT) and is noted for his diplomatic experience in Asia. Ben Blanchard, Reuters, April 4
Japan PM Kishida, Ukraine's Zelenskyy vow to keep close cooperation. Japanese Prime Minister Fumio Kishida and Ukrainian President Volodymyr Zelenskyy have committed to maintaining their cooperation, as Japan continues its support for Ukraine amidst the conflict with Russia. This pledge came during a phone conversation ahead of Kishida's U.S. visit and a meeting with President Joe Biden, with a focus on supporting Ukraine. The discussion also covered Japan's ongoing efforts to aid Ukraine's recovery and infrastructure. Kyodo News, April 3
Việt Nam, China’s Hong Kong promote relations. Vietnam and Hong Kong are enhancing their bilateral relations, with Chief Executive John Lee acknowledging the fruitful cooperation between the two during a meeting with outgoing Vietnamese Consul General Phạm Bình Đàm. Lee highlighted the resolution of longstanding issues, including visa relaxations for Vietnamese workers, fostering business and tourism. Both sides are keen on formalizing cooperation in finance, education, and tourism, aiming for robust government and business engagements in the future. Vietnam News, April 3
Philippines prepared to respond to China's attempts to interfere with re-supply missions. The Philippines, through National Security Council spokesperson Jonathan Malaya, affirmed its readiness to counter China's disruptions of its South China Sea supply missions. Emphasizing the protection of Filipino troops at Second Thomas Shoal, the Philippines vows to maintain its presence, with measures extending beyond military actions. This stance comes amidst escalating maritime tensions with China. Karen Lema, Reuters, April 3
Chinese Businesses Making Inroads into Kyrgyzstan's Energy Sector. Chinese companies are increasing their investment in Kyrgyzstan's energy infrastructure, planning over $1 billion in projects including repairs at the Bishkek combined heat power plant and the development of new energy facilities. This move aligns with China's Belt and Road initiative, aiming to enhance regional connectivity and economic cooperation. The engagements also include constructing a coal logistics center and a wind farm, marking significant steps toward deepening Kyrgyz-China economic ties. The Times of Central Asia, April 4
Top Diplomats from Laos, Timor-Leste, Vietnam Visit Beijing to Strengthen Ties. China is set to host diplomats from Laos, Timor-Leste, and Vietnam, aiming to fortify bilateral relations. These talks are part of ongoing efforts to deepen cooperation across various sectors, highlighting infrastructure and regional connectivity projects like the cross-border railway. The meetings reflect China's strategic interest in enhancing political trust and broadening partnerships with its Southeast Asian neighbors. Chono Lapuekou, The Laotian Times, April 3
Japan PM Kishida, Ukraine's Zelenskyy vow to keep close cooperation. In a recent phone conversation, Japanese Prime Minister Fumio Kishida and Ukrainian President Volodymyr Zelenskyy reaffirmed their commitment to continued cooperation amidst the ongoing conflict in Ukraine. This discussion, setting the stage for Kishida's forthcoming visit to the U.S. and talks with President Biden, highlighted Japan's support for Ukraine, emphasizing recovery and infrastructural aid. Kyodo News, April 3
Court accepts petition for dissolution of Move Forward. Thailand's Constitutional Court is set to hear a petition for the dissolution of the Move Forward Party (MFP), filed by the Election Commission, which alleges that MFP acted against the democratic regime of government with the King as Head of State. The court has given MFP 15 days to defend itself, stemming from efforts to amend the lese majeste law, seen as undermining the constitutional monarchy. The case highlights tensions surrounding free speech and monarchy reform in Thailand. Bangkok Post, April 3
Jokowi, Pope Francis to hold bilateral meeting in September: Minister. Indonesian President Joko Widodo is set to meet Pope Francis in a significant bilateral meeting in September, announced by a government official. This meeting, occurring during the Pope's state visit to Indonesia, symbolizes the deepening relations between Indonesia and the Vatican, with discussions anticipated on various topics including the promotion of cultural diversity and religious harmony. ANTARA News, April 3
NATO invites S. Korea to Washington summit in July. South Korea, along with Japan, Australia, and New Zealand, has been invited by NATO Secretary General Jens Stoltenberg to the July summit in Washington, marking the third year of inclusion for these Indo-Pacific nations. This invitation underscores the strategic importance of collaboration between NATO and its Asia-Pacific partners. Kim Eun-jung, Yonhap News Agency, April 3
Rahul Gandhi files nomination for India election from Kerala seat. Rahul Gandhi, a central figure in the opposition battling Prime Minister Narendra Modi in the upcoming parliamentary elections, has filed his nomination from the Wayanad constituency in Kerala. His campaign, supported by a large procession, marks a significant moment as the Congress party seeks to regain ground. Despite previous electoral losses, Gandhi's re-nomination symbolizes his ongoing commitment to challenging the ruling BJP's dominance. Al Jazeera, April 3
Long Form
What Chinese Navy Planners Are Learning from Ukraine’s Use of Unmanned Surface Vessels. The ongoing conflict in Ukraine is providing vital insights for global military strategy, particularly highlighting the effectiveness of unmanned surface vessels (USVs) in modern naval warfare. As the People's Liberation Army (PLA) of China watches closely, the lessons drawn from Ukraine's innovative use of USVs are shedding light on potential future naval combat dynamics. Despite China's close ties with Russia, Chinese military analysts are deeply analyzing the conflict, avoiding overt criticism of Russia's military shortcomings while focusing on the broader implications for warfare technology and strategy. This interest is partly due to the PLA's lack of recent combat experience and its reliance on Russian military technology and doctrine for modernization. Lyle Goldstein, Nathan Waechter, The Diplomat, April 4
The Broadening Strategy of U.S. Technological Restrictions on China. The Biden administration's approach to technological restrictions on China has evolved significantly, moving from a targeted strategy under Trump's presidency towards a more comprehensive stance that spans a broader array of technologies linked to national security. This shift, described as moving from a "small yard, high fence" to a "large yard, low fence" strategy, reflects an expansion in the scope of restrictions from focusing solely on cutting-edge technologies to including all technologies perceived as relevant to national security, such as products and virtual services. This broadening strategy aims to safeguard U.S. national security interests while adjusting to the complexities of technological interdependence with China. Yingfan Chen, Hamilton Chen, Dingding Chen, The Diplomat, April 4
Hong Kong's lost freedom shows Xi Jinping's priorities. The evolving political landscape in Hong Kong, particularly highlighted by the Causeway Bay Books case, puts to light President Xi Jinping's prioritization of regime security over economic growth. Such developments in Hong Kong reveal the complex balance Beijing seeks between opening its economy and maintaining strict control over political and social stability. This balance, crucial for global investors gauging China's direction, illustrates the broader implications of China's internal and external policies in the context of its national security and economic objectives. Katusji Nakazawa, Nikkei Asia, April 4
Reserve Bank of India deserves share of credit for economic stability. The Reserve Bank of India (RBI) has played a pivotal role in fostering economic stability in India, a country that has transformed remarkably from being one of the "fragile five" emerging markets to the world's fastest-growing major economy. This transformation is attributed to a combination of Prime Minister Narendra Modi's governance and the RBI's technocratic approach towards policy stability, even amidst geopolitical tensions and global financial market volatility. The RBI's consensus with the market and the Prime Minister's office on maintaining policy stability, especially with a national election campaign underway, marks a significant achievement. India, which had been vulnerable to capital outflows and had insufficient foreign reserves a decade ago, now boasts about $600 billion in reserves, providing a substantial cushion against economic shocks. This economic turnaround, with India now outpacing China in growth, highlights the RBI's crucial role in managing foreign exchange reserves, ensuring monetary stability, and supporting the banking sector as the lender of last resort. Henny Sender, Nikkei Asia, April 4
Drivers draw short straw in Japan’s labour law reforms. Japan's transport workers, particularly truck drivers, face significant challenges despite the impending 2019 labor law reforms set for April 2024. These reforms introduce overtime limits for all workers, aiming to address the long-standing issue of extended working hours in the transport sector. However, the transport industry, characterized by low wages and long hours, might see only minimal changes in work conditions. Violations of labor laws are widespread, with drivers often working in conditions near the limits of human endurance, leading to health and safety risks. The new reforms allow up to 960 hours of overtime annually, which could perpetuate the current issues rather than solve them. Critics argue for stronger enforcement of existing labor standards to protect workers' health effectively. Scott North, East Asia Forum, April 4
Deciphering China’s economic strategy without the premier’s press conference. The cancellation of China's premier's press conference in 2024, a departure from a decades-long tradition, has sparked speculation among international observers about the transparency of China's economic strategies. Despite this change, analysis of public statements and policies reveals a clear direction towards boosting household consumption and significant investment in high-tech industries as central pillars of China's economic strategy for 2024. Key focuses include aligning household income growth with economic progress and maintaining a basic equilibrium in the balance of payments. The push for investment in 'new quality productive forces' such as hydrogen energy and supercomputing illustrates a commitment to innovation and productivity improvement. While the shift towards diverse financing sources for innovation, including venture capital, reflects a multifaceted approach to nurturing cutting-edge technologies, concerns remain over the sustainability of economic growth without institutional reforms, highlighting potential risks of overcapacity and international trade tensions. Yuhan Zhang, East Asia Forum, April 3
Regulating digital platforms in Southeast Asia. Regulating the booming digital platform economy in Southeast Asia calls for a strategic blend of European rigor and Asian adaptability. With four of the five most globally valuable companies in 2023 operating on digital platforms, these markets are projected to mediate about 30% of the global economy by 2025. Southeast Asia faces the challenge of fostering this growth while ensuring fair competition and consumer protection. Europe's preemptive regulation through the Digital Markets Act and Asia's cautious stance offer valuable lessons. Singapore's balanced approach, emphasizing growth alongside consumer benefits, sets a regional example, suggesting that preemptive regulation isn't the sole path to managing digital platforms' dominance. This environment advocates for a tailored, collaborative approach across ASEAN, blending antitrust, consumer protection, and data privacy regulations, and even considering a self-regulating code among platform companies. Such strategies aim not just for regulation but for the nurturing of an innovative and competitive digital marketplace. Faizal Bin Yahya, East Asia Forum, April 4