China
China urges Thailand, Cambodia reconciliation in three-way talks. Chinese Foreign Minister Wang Yi met his Thai and Cambodian counterparts in Yunnan, offering to help resolve their border dispute, reopen crossings, and assist with landmine clearance. The ministers agreed to maintain flexible communication. Wang also discussed boosting China–Thailand rail cooperation and investments, and expressed support for Cambodia’s political stability and anti-crime efforts. Liz Lee and Shi Bu, Reuters, August 14
China’s economy shows signs of strain as retail sales, industrial output lose momentum. Retail sales rose 3.7 percent in July, down from June’s 4.8 percent, while industrial output slowed to 5.7 percent growth amid weak consumption, U.S. trade tensions, and a prolonged property slump. Economists expect policymakers to monitor the slowdown before considering fresh stimulus. Xinyi Wu and Ji Siqi, South China Morning Post, August 15
Japan
Approval for Ishiba Cabinet has risen to 27.3% in August, poll shows. Public support for Prime Minister Shigeru Ishiba’s Cabinet climbed 6.5 points from July to 27.3%, while disapproval fell to 49.6%, according to a Jiji Press poll. Among LDP supporters, 65.9% opposed his resignation despite election losses. Former minister Sanae Takaichi remains the top choice for next prime minister. The Japan Times, August 14
South Korea
South Korea’s president vows to restore 2018 inter-Korean military agreement to ease tensions. President Lee Jae Myung pledged to gradually reinstate the 2018 pact with North Korea, aiming to prevent clashes and build trust despite Pyongyang’s dismissive stance. Speaking on Liberation Day, he also urged renewed denuclearization talks and sought improved Japan ties ahead of summits with Tokyo and Washington. Kim Tong-Hyung, Associated Press, August 15
Lee’s approval rating drops to 59%. President Lee Jae Myung’s approval fell 5 points to 59% in a Gallup Korea poll, with respondents citing his special pardons for political figures and perceived excessive welfare policies. Support for the ruling Democratic Party dropped to 41%, while the main opposition gained three points to 22%. Yi Wonju, Yonhap News Agency, August 15
North Korea
Russian Duma speaker Volodin meets North Korea’s Kim in Pyongyang. Russian State Duma Chairman Vyacheslav Volodin met Kim Jong Un, delivering President Vladimir Putin’s greetings and thanking Pyongyang for backing Russia’s war in Ukraine. Kim’s letter to Putin praised battlefield “friendship and unity” between the nations. Both sides confirmed North Korean troop deployments to Russia, with Seoul warning more may follow. Maxim Rodionov, Heejin Kim, Reuters, August 14
Lee vows to respect North Korea’s political system, won’t pursue unification by absorption. President Lee Jae Myung pledged to respect North Korea’s system, reject unification by absorption, and restore the 2018 military pact to ease tensions. Speaking on Liberation Day, he urged denuclearization, improved Japan ties, and deeper cooperation with the U.S. ahead of summits. Kim Eun-jung, Yonhap News Agency, August 15
Thailand
Phumtham confident of Paetongtarn’s survival, no contingency plan. Acting Prime Minister Phumtham Wechayakul said the ruling Pheu Thai Party has no backup plan for suspended Prime Minister Paetongtarn Shinawatra’s court case, expressing confidence she will be cleared. He denied her phone call with Cambodia’s Hun Sen harmed national security and said the court will hear testimony from Paetongtarn and the National Security Council. The Nation, August 14
Thai PM Paetongtarn submits defence over leaked recording. Suspended Prime Minister Paetongtarn Shinawatra told the Constitutional Court her remarks to Cambodian Senate President Hun Sen were negotiation tactics, not offers of favours. She denied accepting Cambodian proposals, citing national security review requirements. Paetongtarn stressed her conduct aimed to maintain stability and later apologized to the Thai army commander mentioned. Bangkok Post, August 14
Myanmar
Myanmar junta chief vows December election ‘no matter what’ despite war. Senior General Min Aung Hlaing reaffirmed plans to hold elections in late December, citing constitutional requirements, despite ongoing conflict and opposition from resistance forces. He ordered military operations to expand voting areas, swift trials for election-related killings, and tight security. Western governments reject the polls as illegitimate. Maung Kavi, The Irrawaddy, August 14
Laos
Laos, Philippines agree to enhance ties as they mark 70 years of relations. Foreign ministers Thongsavanh Phomvihane and Ma. Theresa P. Lazaro pledged deeper cooperation in clean energy, agriculture, trade, investment, and tourism during talks in Manila marking the 70th anniversary of diplomatic relations. The visit included signing a cooperation memorandum, cultural tributes, and invitations for reciprocal high-level visits. Vientiane Times, August 15
Philippines
U.S. and Philippines discuss more missile system deployments as tensions rise in South China Sea. Manila’s envoy to Washington said both countries are considering installing more NMESIS anti-ship missile launchers along Philippine coasts to bolster deterrence, following previous Typhon and missile deployments. China has demanded their removal, warning of instability, but President Ferdinand Marcos Jr. rejected the call. Jim Gomez, Associated Press, August 14
Palace shrugs off VP Duterte’s lead in 2028 presidential survey. Malacañang dismissed a WR Numero survey showing Vice President Sara Duterte leading the 2028 presidential race with 31.4% support, saying President Ferdinand Marcos Jr. remains focused on governance. Palace Press Officer Claire Castro pledged to sustain anti-poverty programs after OCTA reported self-rated poverty rose to 11.9 million families. Catherine S. Valente, The Manila Times, August 14
Indonesia
Prabowo to deliver first State of the Nation address, set out 2026 agenda. President Prabowo Subianto will outline his administration’s achievements and flagship programs in separate speeches to the People’s Consultative Assembly and House of Representatives. The 2026 budget will prioritize food and energy self-sufficiency, education, healthcare, defense, and mining sector industrialization. Celvin Moniaga Sipahutar, Jakarta Globe, August 14
Northeast Asia
Japan must lead on Middle East instability. Japan’s energy security is exposed as Gulf tensions rise; more than 90% of its crude imports come from the Middle East. With Washington focused elsewhere and North Korea accelerating its program—SIPRI estimates ~50 warheads and a new enrichment facility at Yongbyon—Tokyo cannot remain reactive. It should leverage its credibility with Israel, Arab states, Iran, and the G7 to push de-escalation, safeguard sea lanes, and align energy transition plans with contingency supply risks. A more forward diplomatic posture in the Middle East would also reinforce deterrence in East Asia and reduce the risk of simultaneous crises. Mitsuhisa Fukutomi, East Asia Forum, August 14
Chatbots Silent on Sichuan Protests. After police beat protesters in Jiangyou, Sichuan, references to the unrest vanished from social media and search. China’s AI chatbots reinforced the blackout: GLM-4.5 and Kimi-K2 refused to answer; DeepSeek’s response self-deleted; Ernie-4.5 inserted a templated warning about “unverified information.” New CAC rules require filed models to maintain and weekly update lists of at least 10,000 “unsafe” keywords, effectively wiring censorship into real-time AI services. Some users circumvented filters by using homonyms (“soy sauce” for Jiangyou), but variability across models shows uneven implementation, not openness. The episode signals AI’s integration into China’s information-control architecture.
Alex Colville, China Media Project, August 15
Engineered growth: Can China hold its economy together? Beijing is countering U.S. tariff shocks with heavy front-loaded stimulus and administrative support. The 2025 deficit target rose to 4%, ultra-long bonds expanded to RMB 1.3 trn, and the PBOC cut the RRR 50 bps while enlarging re-lending quotas. H1 data show retail sales up ~5% and trade tilting toward ASEAN, Latin America, Africa, and India, with Belt-and-Road partners comprising ~52% of total trade. Yet growth is increasingly “engineered”: fiscal revenue is slipping, non-financial corporate debt is high, industrial profits are weak, and consumption fundamentals remain soft. Policy can buy time, but sustaining 5%-ish growth without compounding risks will be hard. Manoj Kewalramani, ThinkChina, August 14
Stablecoins are reshaping global finance — Can China keep up?
Stablecoins are moving into the regulatory mainstream (US GENIUS Act; EU/HK frameworks), creating new demand for dollar assets and pressure on non-U.S. jurisdictions. In China, recent signals, Pan Gongsheng’s June Lujiazui remarks; a Shanghai SASAC study session, show growing interest in cross-border payments use-cases. Hong Kong’s new ordinance positions it as a testbed; firms like JD.com and Ant are exploring licenses. Advocates float an offshore RMB stablecoin and “whitelisted” FX conversion to address e-CNY usability constraints, while others warn of illicit finance and governance risks. A pragmatic path is dual-track: continue e-CNY pilots while cautiously enabling compliant stablecoin experimentation. Yush Chau (trans. James Loo, Grace Chong), ThinkChina, August 14
Southeast Asia
Why downstreaming policies in Asia struggle to deliver. Resource-rich economies can gain from refining and manufacturing at home, but downstreaming fails without realistic market analysis, credible financing, institutional capacity, skilled labor, clean energy, and enforceable ESG standards. Indonesia’s nickel push shows both promise and pitfalls: it drew investment and plants but left local benefits limited while environmental damage, labor problems, and governance gaps mounted, often with foreign (especially Chinese) firms capturing margins via cheap inputs and subsidized power. Governments should assess true comparative advantage, secure off-take, reduce single-market reliance, collaborate regionally, and sequence reforms; otherwise, they risk stranded assets and thin spillovers. Hilman Palaon, East Asia Forum, August 15
Can Malaysia My Second Home (MM2H) Recover Its Lost Ground? Successive suspensions and changing rules since 2018, culminating in a 2021 relaunch with steep income, asset, and stay requirements, crippled Malaysia My Second Home Programme’s (MM2H) appeal, drove withdrawals, and hurt related sectors. A 2024 “revamped” scheme (Silver/Gold/Platinum and SEZ/SFZ tracks) eased some thresholds but added a mandatory property-purchase rule and high fees, while regional competitors (Thailand LTR, Indonesia Golden Visa, Philippines SRRV) offer simpler, cheaper paths. To regain market share, Malaysia needs stable governance over the program, clear communication across agencies (MoHA/MOTAC), and predictable criteria aligned to lifestyle-migration demand rather than ad-hoc fiscal or real-estate objectives. Koh Sin Yee, Fulcrum, August 15
What Does Myanmar’s Acting President Myint Swe’s Death Mean for the Country? Myint Swe’s 7 Aug death removes a key figure who lent constitutional veneer to the junta after the 2021 coup. A longtime military insider and former Yangon commander, he became acting president via provisions enabling emergency rule and mostly surfaced to approve extensions of the state of emergency. His passing coincides with a fresh directive curbing rights and enabling detentions and seizures. The question now is which loyalists rise—and whether any will pursue meaningful political opening or engagement with resistance forces to end the civil war. Wai Moe and Kyi Sin, Fulcrum, August 14