Asia Daily: August 5, 2024
News
Bangladeshi PM Sheikh Hasina resigns as widening unrest sees protesters storm her official residence. Prime Minister Sheikh Hasina resigned and fled Bangladesh amid escalating protests against a government job quota system, which evolved into a broader challenge to her rule. Demonstrators stormed her residence, and violence left at least 41 people dead. The military, led by Gen. Waker-uz-Zaman, temporarily took control, promising investigations and the formation of a national government. The turmoil has intensified political instability in Bangladesh, with concerns over future governance and ongoing protests. Julhas Alam and Krutika Pathi, AP News, August 5
South China Sea: Chinese coastguard ‘monitoring’ Philippine vessels near Sabina Shoal. China has announced it is "monitoring" and "effectively controlling" Philippine ships near the disputed Sabina Shoal in the South China Sea, while asserting its territorial claims. The Philippine vessels, including patrol boats and fishing ships, have gathered near the coastguard ship BRP Teresa Magbanua. The Chinese Coast Guard labeled the Philippine ship as "illegally stranded" and emphasized its sovereignty over the area. Orange Wang, South China Morning Post, August 5
Opposition unilaterally passes contentious pro-labor bill. The opposition-controlled National Assembly passed a pro-labor bill aimed at limiting companies' ability to claim damages against legitimate labor union disputes, despite protests from ruling party lawmakers. The "yellow envelope bill," officially a revision to the Trade Union and Labor Relations Adjustment Act, was passed by the Democratic Party and other minor parties. The ruling People Power Party opposed the bill and urged President Yoon Suk Yeol to exercise his veto power. The bill's origins date back to a 2009 strike by SsangYong Motor Co. workers. Yi Wonju, Yonhap News Agency, August 5
Philippines, Vietnam to hold first-ever joint coast guard exercise. The Philippines and Vietnam will commence their inaugural joint coast guard exercise in Manila Bay on August 9 to enhance maritime cooperation. This drill, involving Vietnam’s CSB 8002 and the Philippines’ BRP Gabriela Silang, will focus on search and rescue and fire prevention. Despite overlapping claims in the South China Sea, both nations aim to demonstrate the potential for collaboration and de-escalation of regional tensions. Neil Jerome Morales, Reuters, August 5
Japan signs deal with Ukraine on anti-corruption, judicial reform. Japan has signed an agreement with Ukraine to support anti-corruption measures and judicial reforms in the war-torn country. This deal, signed by Japan's Foreign Minister Yoshimasa Hayashi and Ukraine's Justice Minister Denys Maliuska, aims to strengthen Ukraine's legal system and combat corruption, which has been a significant issue even before Russia's invasion. Japan will provide expertise and assistance in creating transparent legal frameworks and improving the efficiency of judicial processes. Kyodo News, August 5
Kyrgyz Stock Exchange continues to grow. The Kyrgyz Stock Exchange (KSE) is leading the Eurasian Economic Union in trading volume growth, with capitalization reaching $636 million in the second quarter of 2024, a fivefold increase from the previous year. Key transactions included significant deals by Aiyl Bank, the State Mortgage Company, and the National Electric Grid of Kyrgyzstan. KSE is also modernizing its system, introducing new areas like IPOs, digitalization, and a crypto exchange sector. Anton Chipegin, The Times of Central Asia, August 5
China’s ethnic policy chief says minority artists must focus on common national identity. Pan Yue, director of the National Ethnic Affairs Commission, criticized self-centered ethnic minority artworks and emphasized the need to focus on a common national identity. He highlighted a Tibetan-language movie for overlooking the Communist Party's contributions. Pan denounced Western multicultural theories influencing ethnic art and stressed that ethnic literature should strengthen the sense of community for the Chinese nation. He criticized divisive Western narratives and urged minority filmmakers and authors to align their works with the national narrative. Xinlu Liang, South China Morning Post, August 5
Cambodia breaks ground on China-funded canal and says it will be built ‘no matter the cost’. Cambodia has initiated construction on the $1.7 billion Funan Techo canal, funded by China, to connect Phnom Penh to the sea, despite environmental concerns and potential strain on ties with Vietnam. The canal aims to reduce shipping costs and reliance on Vietnamese ports. The project, supported by Chinese and Cambodian companies, raises concerns about impacts on the Mekong River and Vietnam's rice production. Sopheng Cheng and Aniruddha Ghosal, AP News, August 5
PH, Germany commit to defense cooperation pact. The Philippines and Germany have pledged to strengthen their defense cooperation through a new agreement. Defense Secretary Gilberto Teodoro Jr. and German Federal Minister of Defense Boris Pistorius discussed the pact during Pistorius's visit to Manila. The agreement focuses on enhancing military collaboration, joint training, and strategic partnerships to address regional security challenges. Both nations aim to improve their defense capabilities and foster closer ties amid growing geopolitical tensions. Francisco Tuyay, The Manila Times, August 5
Nikkei closes with largest point drop in history, down 12%. The Nikkei stock index in Japan recorded its largest point drop in history, falling 12% due to growing concerns about the U.S. economy and a stronger yen. Investors reacted to fears of a potential economic slowdown in the U.S., leading to a significant sell-off in the Japanese market. The stronger yen exacerbated the situation by negatively impacting export-oriented companies. The decline resulted in a loss of over 3,000 points, marking an unprecedented drop for the index. Kyodo News, August 5
House starts 2025 budget deliberations. The House of Representatives in the Philippines began deliberations on the proposed P6.352-trillion national budget for 2025. The hearings commenced with a briefing from four members of President Ferdinand Marcos Jr.'s economic team, who form the Development Budget Coordination Committee. The focus of these deliberations is on addressing economic priorities and funding allocations for the upcoming fiscal year. Reina C. Tolentino, The Manila Times, August 5
Japan’s defense minister begins visits to Cambodia and Vietnam, both under Beijing’s shadow. Japanese Defense Minister Kihara Minoru held talks with senior officials in Cambodia, including Defense Minister Tea Seiha and Prime Minister Hun Manet, to promote cooperation in human resources and joint military training. Kihara's visit to Cambodia and Vietnam aims to counter China's influence in Southeast Asia and strengthen defense ties with both countries, which are strategically important for Japan’s sea lanes. Sopheng Cheng, AP News, August 5
Việt Nam, Laos continue promoting cooperation in technology, innovation. The Việt Nam Academy of Science and Technology (VAST) and the Lao Ministry of Technology and Communications (MTC) have signed a cooperation agreement to enhance technological innovation. Key initiatives include building a data center for natural disaster communication and a national data storage and computing cloud center in Laos. The partnership also focuses on human resources development and digital technology. The agreement was signed by VAST President Châu Văn Minh and Lao Minister Boviengkham Vongdara. Vietnam News, August 5
Chinese ship surveying reefs, shoals in WPS. The Chinese research vessel Ke Xue San Hao has been conducting surveys near the Escoda (Sabina) Shoal in the West Philippine Sea since July 25. The ship was spotted within 40 nautical miles of Palawan, prompting concerns from the Philippine Coast Guard and government officials. These activities are being closely monitored by SeaLight, a US-based maritime tracker, which noted the vessel's movements in the region. The Philippines has repeatedly raised issues over China's activities in its territorial waters. Franco Jose C. Baroña, The Manila Times, August 4
Thaksin parole to end on Aug 31. Former Thai Prime Minister Thaksin Shinawatra will complete his one-year prison term on August 31, according to the Department of Corrections. Thaksin was released from the Police General Hospital, where he stayed due to health issues. His sentence was reduced from eight years to one year by royal clemency. The National Human Rights Commission is investigating claims of preferential treatment regarding his extended hospital stay. Aekarach Sattaburuth, Bangkok Post, August 3
Japan and Central Asia to vow to uphold rule of law. Leaders from Japan and five Central Asian countries will emphasize the importance of the rule of law in a joint statement after a summit in Kazakhstan. Prime Minister Fumio Kishida aims to counter China's and Russia's influence in the region. Kishida plans to visit Uzbekistan, Kazakhstan, and Mongolia, pledging cooperation in decarbonization, logistics, and human resource development to support sustainable economic growth. The Japan Times, August 3
North Korean leader marks the delivery of 250 nuclear-capable missile launchers to frontline units. North Korea has delivered 250 nuclear-capable missile launchers to its frontline units, as announced at a ceremony where leader Kim Jong Un emphasized expanding the military’s nuclear program to counter U.S. threats. These launchers, designed to fire tactical ballistic missiles, aim to enhance North Korea’s firepower over South Korea. Kim's intensified weapons tests are seen as efforts to pressure the U.S. to recognize North Korea as a nuclear power. Kim Tong-hyung, AP News, August 5
Desperate Myanmar junta seeks Russian intervention against armed resistance. The Myanmar junta is seeking Russian military support to combat anti-regime ethnic armed groups and resistance forces. Khin Yi, the chair of the Union Solidarity and Development Party, asked Russia to recognize the conflict as a war against terrorism and to assist the regime during an interview with Russian media. The request follows significant military defeats in northern Shan State, where ethnic forces have captured key towns and battalions. The Irrawaddy, August 5.
Việt Nam strengthens parliamentary cooperation with Argentina, Chile. A Vietnamese National Assembly delegation, led by Vũ Hồng Thanh, visited Argentina and Chile from July 29 to August 4 to bolster parliamentary cooperation. In Argentina, the delegation met with Luciana Termine, discussing deepening bilateral and international parliamentary relations. They proposed a free trade agreement with Mercosur and the establishment of a direct flight route. In Chile, meetings with Karol Cariola emphasized enhancing legislative cooperation and economic ties. Vietnam News, August 5
Possible Move Forward dissolution worries Thai senators. Thai senators have expressed concerns over the potential dissolution of the main opposition Move Forward Party (MFP), warning that it could set back Thailand’s democratic progress. Leading senator Nantana Nantavaropas emphasized that no public agency should have the power to disband a political party, highlighting worries from both domestic and international communities. Democrat member Rachada Dhnadirek cautioned diplomats about interference in the judicial process, stressing that the case against MFP is based on factual and legal grounds. Aekarach Sattaburuth, Bangkok Post, August 5
Laos, United Kingdom ink deal on green economy framework. Laos and the United Kingdom have signed a Memorandum of Understanding (MoU) on the Green Economy Framework during the ASEAN Foreign Ministers’ Meeting in Laos. Deputy Prime Minister Saleumxay Kommasith and UK Secretary of State David Lammy formalized the agreement, focusing on decarbonization and climate-resilient economic activities. The MoU reaffirms commitments under the UNFCCC and Paris Agreement, aiming to enhance climate-risk-based decision-making, create jobs, and strengthen community resilience. Phontham Visapra, The Laotian Times, August 5
Long Form
Rescue measures won’t fix the structural problems in China’s property market. Despite China's introduction of measures to stabilize its property market, including reducing downpayment requirements and lowering mortgage rates, these efforts are unlikely to address the fundamental issues. High household leverage, unfavorable demographic trends, and a high property price-to-income ratio suggest continued downward pressure on prices. Long-term solutions require reforms in land allocation, financial regulation, and urbanization policies. Yixiao Zhou, East Asia Forum, August 5
The red glare of Xi’s second PLA purge. In June 2024, China's Politburo expelled Generals Li Shangfu and Wei Fenghe for corruption and disloyalty, marking the second purge of the PLA under President Xi Jinping. This follows a series of high-profile expulsions and highlights ongoing concerns over loyalty and corruption within the military. Despite a decade-long anti-corruption campaign, Xi's actions suggest persistent structural issues within the PLA, raising questions about his control over the Chinese Communist Party. Andrew Wedeman, East Asia Forum, August 3
How Bangladesh’s Quota Reform Protest Turned Into a Mass Uprising Against a ‘Killer Government’. The protests in Bangladesh began as a student-led demand for civil service quota reform but escalated into a nationwide movement calling for the resignation of Prime Minister Sheikh Hasina. The government's violent crackdown, including a "shoot-on-sight" order, resulted in over 200 deaths and widespread public anger. Despite Hasina's resignation and departure, the nation faces uncertainty as protesters seek justice and a political solution. Mehedi Hasan Marof, The Diplomat, August 5
How Does Central Asia Cooperate With Iran to Access World Markets? Central Asian countries, particularly Uzbekistan, are leveraging Iran's strategic location to diversify trade routes. Utilizing Iranian ports like Bandar Abbas and Chabahar, they access the Indian Ocean, facilitating trade with South Asia and beyond. Initiatives like the Uzbekistan-Turkmenistan-Iran-Oman multimodal route and collaborations on the Ashgabat Agreement enhance connectivity. These efforts, including the development of a new logistics route involving Chabahar, underscore Iran's pivotal role in Central Asian trade expansion. Nargiza Umarova, The Diplomat, August 3
North Korea curtails foreign business rights, reasserting control over economy. North Korea revised its foreign investment law in March 2022, restricting foreign-invested and wholly foreign-owned banks from joint operations. This move, revealed in June 2024, is part of a broader strategy to regain tighter control over the economy while pursuing economic cooperation with Russia. The changes reflect North Korea's cautious approach to foreign economic influence amid internal and external pressures. Martin Weiser, NK News, August 5
Overseas Korean adoptees struggle for answers in the face of red tape. Korean adoptees seeking their birth families face numerous bureaucratic hurdles and societal barriers. The process, often driven by personal desires for closure and identity, is complicated by inconsistent regulations and red tape. Many adoptees encounter challenges in their quest for answers, showing the need for more streamlined and supportive systems. Jack Greenberg, Korea Pro, August 5
Germany joins UN Command, strengthening security ties with South Korea. Germany has joined the United Nations Command (UNC), marking its first expansion in over a decade. This enhances cooperation between Europe and the Indo-Pacific region, particularly against threats from North Korea and its military ties with Russia. During the visit to Seoul, German defense minister Boris Pistorius and South Korean defense minister Shin Won-sik agreed to strengthen defense cooperation, focusing on cybersecurity and technological collaboration. Korea Pro, Korea Pro, August 5
Two Borneo Neighbours on Diversity: Comparing Religious Authority in Brunei and Sarawak. Brunei and Sarawak have distinct approaches to religious authority. Brunei, an absolute monarchy, enforces a conservative Islamic practice under the Malay Islamic Monarchy philosophy. Sarawak, part of Malaysia, promotes religious pluralism, accommodating Christian and indigenous populations, fostering harmony and flexibility. These differences stem from political culture, demographics, and the training of religious elites. Norshahril Saat, Fulcrum, August 5
Myanmar Junta’s Internet Controls Expose Citizens to More Cyber Threats. Myanmar's military government has banned Facebook and other social media, pushing citizens to use potentially harmful VPNs to bypass restrictions. The junta's crackdown on VPNs has increased exposure to cyber threats, such as phishing. This highlights the population's lack of digital literacy and data hygiene, exacerbating the risk. These issues underscore the broader problem of rights violations under the junta. Surachanee Sriyai, Fulcrum, August 5