Asia Daily: August 6, 2024

News

A Nobel laureate will head an interim government in Bangladesh after unrest ousted Hasina. Nobel laureate Muhammad Yunus will lead Bangladesh’s interim government after Prime Minister Sheikh Hasina stepped down amid mass protests. Yunus, chosen during a meeting with military chiefs, protest leaders, and civil society members, is expected to return from Paris soon. The president dissolved Parliament, paving the way for an interim administration and new elections. The unrest began over a controversial job quota system and escalated, resulting in Hasina’s resignation and departure to India. Julhas Alam and Sheikh Saaliq, AP News, August 6

Creditor China ‘closely monitors’ conditions in post-Hasina, debt-heavy Bangladesh. China is closely monitoring the situation in Bangladesh after Prime Minister Sheikh Hasina fled the country amidst political turmoil and protests. The uncertainty surrounding Bangladesh's debt repayments to China, which total over $5 billion, is heightened by fears of a US recession affecting market stability. China's foreign ministry expressed hope for Bangladesh's early restoration of stability. The political upheaval raises questions about the future of Bangladesh's debt obligations and its relations with Beijing. Kawala Xie, South China Morning Post, August 6

Kazakhstan: Opposition influencer sentenced to seven years in prison. Duman Mukhammedkarim, a Kazakh opposition influencer, was sentenced to seven years in prison for "financing extremism" and "participating" in a banned organization. His conviction stems from an interview with Mukhtar Ablyazov, founder of the opposition Democratic Choice of Kazakhstan (DVK). Mukhammedkarim denies the charges, calling the case politically motivated, and plans to appeal. He has been a vocal critic of President Kassym-Jomart Tokayev's administration and ran for parliament as an independent candidate in 2023. Almaz Kumenov, Eurasianet, August 6

Senior U.S., Swedish diplomats voice concerns over 'worrying' N.K. trends. Senior diplomats from the U.S. and Sweden expressed concerns about North Korea's growing military cooperation with Russia and the human rights situation during talks in Washington. U.S. Deputy Secretary of State Kurt Campbell and Swedish State Secretary for Foreign Affairs Jan Knutsson also discussed advancing a "free and open" Indo-Pacific, upholding international law, and strengthening NATO ties. Sweden, which recently joined NATO, continues to play a significant role in Korean Peninsula security. Song Sang-ho, Yonhap News Agency, August 6

PM Chính urges strengthened defence ties between Việt Nam and Japan. Prime Minister Phạm Minh Chính emphasized the importance of enhancing defense cooperation between Việt Nam and Japan, including personnel training, technology transfer, and cybersecurity. During a meeting with Japanese Defense Minister Kihara Minoru, Chính highlighted the steady development of Việt Nam-Japan relations since 1973 and proposed increased Japanese investment in high-quality projects. The discussions also covered regional security and cooperation in emerging fields like semiconductor chips and artificial intelligence. Vietnam News, August 6

North Korea says German entry into UN monitoring force is bid to create Asian NATO. North Korea has condemned Germany's entry into the U.S.-led United Nations Command on the Korean peninsula, claiming it will escalate tensions and create an Asian version of NATO. Germany joined the UN Command, which helps police the border between South and North Korea, and is committed to defending the South in a conflict. North Korea accused the U.S. of reviving the Command to extend its influence, while Germany cited the importance of Indo-Pacific security for Europe. Ju-min Park, Reuters, August 6

China launches rocket carrying new constellation of satellites. China launched a Long March-6 carrier rocket from the Taiyuan Satellite Launch Center on Tuesday, carrying 18 satellites. The launch is part of China's efforts to strengthen its space presence. The rocket successfully reached its pre-programmed orbit. China’s space program includes numerous crewed missions, a space station, and the Beidou satellite system, which serves as a competitor to the U.S.-led GPS system. AP News, August 6

‘No interference’ in Move Forward case. Prime Minister Srettha Thavisin assured that the government will not interfere with the Constitutional Court's ruling on the Move Forward Party dissolution case, emphasizing the judiciary's independence. The court will decide on Wednesday if the opposition party should be dissolved. The government is sensitive to foreign perceptions as Thailand seeks a UN Human Rights Council seat. Deputy Prime Minister Phumtham Wechayachai downplayed concerns over diplomatic meetings with Move Forward representatives. Mongkol Bangprapa and Poramet Tangsathaporn, Bangkok Post, August 6

Controversy and confrontation surround LGBT issues in Kazakhstan. Kazakhstan faces escalating tensions over LGBT rights, fueled by a petition from the Parents' Union to ban "LGBT propaganda." The petition, gaining over 50,000 signatures, must be considered by the Ministry of Culture. UN experts have warned against it, citing human rights violations. The debate highlights deep societal divisions, with supporters claiming to protect minors and opponents warning of increased discrimination and violence. The Times of Central Asia, August 6

Taiwan's defence budget will hit new record next year, president says. Taiwan's total defence budget is set to reach T$647 billion ($19.74 billion) in 2025, aiming to enhance self-reliance and cooperation with democratic partners. President Lai Ching-te announced the increase amid escalating military and political pressure from China, which claims Taiwan as its territory. Lai emphasized the importance of boosting self-defence and deepening partnerships to ensure peace and prosperity. Taiwan's proposed defence spending for 2024 was T$606.8 billion. Yimou Lee, Reuters, August 6

Chinese ambassador to Brazil pitches Belt and Road membership as ‘fundamental measure’. China's ambassador to Brazil, Zhu Qingqiao, emphasized the potential benefits of Brazil joining the Belt and Road Initiative (BRI) to enhance cooperation between the two nations. Speaking at a China-Brazil Business Council event, Zhu described BRI membership as crucial for boosting synergies and aligning with Brazil's development strategy. He highlighted the initiative's alignment with President Lula's re-industrialization plans and South American integration. Igor Patrick, South China Morning Post, August 6

Narumon takes helm of new Kla Dharma Party. Narumon Pinyosinwat, a former government spokeswoman and key member of the Palang Pracharath Party (PPRP), has been elected leader of the Kla Dharma Party, denying it is a branch of PPRP. Kla Dharma emerged from the Setthakij Thai Party, linked to PPRP. The party aims to uphold the constitutional monarchy, improve investor confidence, and enhance international ties. Narumon emphasized that Kla Dharma is independent with its own agenda. Chairith Yonpiam, Bangkok Post, August 6

RI, Malaysia mull stepping up training, border security cooperation. Indonesian Army Chief General Maruli Simanjuntak and Malaysian Army Chief General Muhammad Hafizuddeain bin Jantan discussed strengthening border security and military training cooperation. They highlighted the importance of joint border security posts and patrols to prevent crimes such as illegal smuggling. Both sides also emphasized the benefits of personnel exchanges and continued collaboration through specialized military training programs. Antara News, August 6.

Cambodian embassy steps up efforts to attract Japanese tourists. The Cambodian Embassy in Japan is enhancing initiatives to boost Japanese tourism, with programs promoting Cambodian arts, culture, and heritage. Efforts include organizing events like Cambodia’s National Cultural Day and the Cambodia Expo in Tokyo. Tourism between the two countries is rebounding, with 54,849 Japanese visitors in the first half of 2024, a 54.2% increase from 2023. Hong Raksmey, The Phnom Penh Post, August 6

Japanese government, BOJ on alert amid market volatility, to work closely. The Japanese government and the Bank of Japan (BOJ) are monitoring market volatility and plan to work together to maintain economic stability. Finance Minister Suzuki Shunichi and BOJ Governor Ueda Kazuo stressed the need for vigilance, given the uncertain U.S. economic outlook and its global impact. The government and BOJ reaffirmed their commitment to use all available tools to respond to economic challenges. Kyodo News, August 6

ADB grants $21 million to modernize hydropower plant in Tajikistan. The Asian Development Bank (ADB) has approved a $21 million grant to modernize the Golovnaya hydropower plant in Tajikistan. This additional financing will replace a damaged power generation unit, boosting the plant's capacity to 274 megawatts by 2026. The initiative is part of ADB's broader support to enhance regional energy security and promote sustainable growth. Tajikistan aims for all electricity production to come from renewable sources by 2032. The Times of Central Asia, August 6

India’s President praises Fiji’s democratic values and reaffirms friendship. India's President Droupadi Murmu lauded Fiji's democratic ethos and reaffirmed the strong bilateral ties during her address to the Fiji Parliament. She highlighted the shared values and historical ties between the two nations, emphasizing India's support in Fiji’s democratic journey and climate change initiatives. Murmu expressed gratitude for Fiji's assistance in India's space mission and looked forward to further cooperation in various sectors, including the establishment of a cardiology hospital in Suva. Sanjeshni Kumar, PINA, August 6

Long Form

Bangladesh’s New Military-Led Government Has a Tough Job Ahead. The new military-led government in Bangladesh faces great challenges, including restoring political stability, tackling corruption, and addressing economic issues. The transition follows months of political unrest and violence, leading to concerns about the future of democracy in the country. The government must also manage relationships with major powers like India and China. David Brewster, The Interpreter, August 6

Respite for Sierra Madre, but Philippines-China Tensions Remain. The Philippines and China remain at odds over territorial disputes in the South China Sea, despite a temporary respite for the Philippines' Sierra Madre, a rusting ship used to assert claims. Diplomatic efforts continue, but the potential for conflict persists, influenced by regional alliances and power dynamics. Rommel Ong, The Interpreter, August 6

What is China’s Role in Achieving the UN’s 2030 Sustainable Development Goals? China plays a crucial role in achieving the UN’s 2030 Sustainable Development Goals (SDGs) through its economic policies, international development initiatives, and environmental strategies. The country's commitment to reducing poverty, enhancing global health, and promoting sustainable economic growth aligns with the SDGs. However, challenges remain, including balancing economic growth with environmental protection and addressing global criticisms of its development practices. Hannah Mcnicol, The Interpreter, August 5

The 123 Agreement: Strengthening Non-Proliferation in Southeast Asia. The 123 Agreement aims to improve non-proliferation efforts in Southeast Asia by facilitating civilian nuclear cooperation between the United States and regional countries. This agreement promotes safe and secure nuclear energy use, ensuring compliance with non-proliferation standards. It also supports regional stability and development by providing access to nuclear technology under strict safeguards. The initiative reflects a broader strategy to counter nuclear threats and promote peaceful uses of nuclear energy. Alvin Chew, RSIS, August 5

Indonesia’s Starlink Expansion Must Balance Connectivity and Security. Indonesia's adoption of Starlink satellite internet services aims to improve connectivity across its vast archipelago, particularly in remote areas. However, this expansion brings security concerns related to data sovereignty and dependency on foreign technology. The government must ensure robust regulatory frameworks and cybersecurity measures to balance the benefits of improved internet access with potential risks. The initiative is part of a broader effort to boost digital infrastructure while maintaining national security. Karl Gading Sayudha, East Asia Forum, August 6

Strategically Reforming India’s Role in Global Value Chains. India is undertaking strategic reforms to improve its position in global value chains, focusing on improving infrastructure, simplifying regulations, and fostering innovation. These efforts aim to attract foreign investment, boost manufacturing capabilities, and integrate more effectively into the global economy. By addressing logistical challenges and promoting ease of doing business, India seeks to become a more competitive player in international trade. Veeramani Choorikkadan, East Asia Forum, August 6

China’s EV Overcapacity Is Inevitable China's electric vehicle (EV) industry is heading towards overcapacity due to rapid expansion and aggressive investment. This growth has led to an oversupply of EVs, outpacing domestic demand. The market faces challenges, including intense competition, declining subsidies, and the need for technological advancements. Addressing overcapacity will require market consolidation and adjustments by manufacturers to balance production with actual consumer needs. Zhuoran Li, The Diplomat, August 6

China's Nuclear First-Use Policy and its Implications for Japan. China's nuclear first-use policy poses implications for Japan's national security and regional stability. As China modernizes its nuclear arsenal, Japan must reassess its defense strategies and strengthen its alliances, particularly with the United States. The evolving security landscape demands greater diplomatic and military preparedness from Japan to deter potential threats and ensure regional peace. Brad Glosserman, The Japan Times, August 6

Flood-Destroyed Bridges Likely to Obstruct North Korean Nuke Program, Arms Sales. Severe flooding in North Korea has damaged critical infrastructure, including bridges, which is expected to hinder the country's nuclear program and arms sales. The destruction impedes transportation and supply routes essential for the development and distribution of nuclear and military materials. This natural disaster may temporarily stall North Korea's strategic capabilities and international arms dealings. Colin Zwirko, NK News, August 6

Seoul and Tokyo Boost Defense Ties but Remain Vulnerable to Political Winds. South Korea and Japan are strengthening their defense cooperation to address regional security threats, particularly from North Korea and China. However, their collaboration remains susceptible to political fluctuations and historical disputes. Both nations are working to enhance military interoperability and strategic alignment with the United States, but enduring political tensions pose challenges to sustained defense collaboration. Joon Ha Park, Korea Pro, August 6

South Korea’s Stock Market Sinks as US Economic Woes Spark Global Sell-Off. South Korea’s stock market experienced a large decline due to economic troubles in the United States, triggering a global sell-off. Investor concerns over rising interest rates and potential recession in the US have led to decreased market confidence worldwide. The downturn reflects broader uncertainties in global financial markets, impacting various sectors of the South Korean economy. Korea Pro, August 6

Democracy, Corruption, and Law Enforcement: Challenges in Achieving Grand Indonesia 2045. Indonesia's vision for 2045 faces hurdles, including democratic governance issues, pervasive corruption, and ineffective law enforcement. These challenges undermine economic growth and social development efforts. Strengthening democratic institutions, enhancing transparency, and improving legal frameworks are crucial for Indonesia to realize its ambitious goals. Addressing these systemic issues is essential for fostering sustainable development and national progress. Mahfud MD, Fulcrum, August 6

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