Asia Daily: December 11, 2023
News
China, Japan trade blame over confrontation near disputed islands. China and Japan have accused each other of maritime incursions following an altercation between their coast guards in the East China Sea, near the Diaoyu/Senkaku Islands, which are controlled by Japan but claimed by China. The Chinese coast guard alleged that a Japanese fishing boat and several patrol vessels entered the area, prompting them to issue warnings. In response, Japan's coast guard reported expelling two Chinese patrol boats from the area, claiming they were protecting a Japanese fishing boat. This incident is part of a broader pattern of escalating maritime disputes involving China in the region. Colleen Howe and Kevin Buckland, Reuters, December 10
Xinjiang: US adds more Chinese officials and companies to sanctions list. The United States has expanded its sanctions against Chinese officials and companies over alleged human rights abuses in Xinjiang. The new sanctions target Gao Qi, a former police chief in Xinjiang, and Hu Lianhe, a Communist Party official, freezing their U.S. assets and restricting dealings with U.S. entities. Additionally, three Chinese companies were added to the sanctions list for exploiting ethnic minorities in their labor practices. China's embassy spokesman Liu Pengyu condemned these measures as interference in China's internal affairs. Jack Lau, South China Morning Post, December 10
PM Kishida mulls replacing all ministers from Abe faction: sources. Japanese Prime Minister Fumio Kishida is considering a major cabinet reshuffle, potentially replacing all ministers from the Liberal Democratic Party faction led by the late former Prime Minister Shinzo Abe. This move is a response to a series of political fundraising scandals. Chief Cabinet Secretary Hirokazu Matsuno and Economy, Trade and Industry Minister Yasutoshi Nishimura, both from Abe's faction, are specifically targeted due to allegations of unreported political funds. The Tokyo prosecutors are investigating these potential violations, which may involve hundreds of millions of yen collected through fundraising events but not declared in political funding statements. Kyodo News, December 10
Anti-corruption body plans public hearing on govt's 10k plan. The National Anti-Corruption Commission (NACC) of Thailand is organizing a public hearing to assess opinions about the government's 10,000-baht digital money handout scheme. This hearing is part of the NACC's scrutiny of the controversial project. Niwatchai Kasemmongkol, the NACC secretary-general, stated that the commission is prepared to closely examine the government's actions, especially regarding a loan bill intended to fund the scheme. Concerns have been raised about the feasibility of the scheme, including questions about funding sources and distribution methods. Prime Minister Srettha Thavisin expressed confidence in the scheme's implementation despite uncertainties. Aekarach Sattaburuth, Bangkok Post, December 10
Hong Kong holds first 'patriots only' local elections. Hong Kong conducted its first "patriots only" local elections, a move following significant changes to the city's electoral system. This election saw the reduction of directly elected seats from 462 to 88, with the remaining controlled by government loyalists, and a requirement for candidates to be nominated by government-appointed committees, effectively excluding pro-democracy parties. Over 70% of the candidates were members of these committees. City leader John Lee described the election as crucial to implementing "patriots ruling Hong Kong." Despite these changes, the government indicated that voter turnout was not a primary concern for evaluating the new system's success. Channel News Asia, December 10
Việt Nam, Cambodia aim for $20b in trade, boost cooperation in defence, transport: PMs. Vietnam and Cambodia are working towards achieving a bilateral trade turnover of $20 billion, along with enhanced cooperation in defense, transport, and other sectors. Vietnamese Prime Minister Phạm Minh Chính and Cambodian counterpart Samdech Hun Manet held talks in Hà Nội to discuss these goals. They also agreed on increasing high-level meetings and strengthening economic ties, including infrastructure and policy frameworks. The leaders emphasized the need for peaceful border management and signed agreements to promote cooperation in science, technology, and innovation, as well as commerce and diplomatic training. Vietnam News, Vietnam News, December 11
About 315 Rohingya land in Aceh, marking 9th wave since November. Approximately 315 Rohingya refugees arrived in Aceh, Indonesia, in what is the ninth wave of arrivals since November 2023. Two boats carrying these refugees landed in Blang Ulam in Aceh Besar and Blang Raya in Pidie. Despite some local resistance, the Rohingya managed to land safely in Pidie. The influx of refugees has led Indonesian President Joko Widodo to suspect human trafficking behind these arrivals, and he has committed to working with international organizations to address this humanitarian crisis. Shofi Ayudiana and Rahmat Fajri, ANTARA News, December 10
Philippines eyes constitutional amendments to ease economic restrictions. Philippine lawmakers are discussing amendments to the country's constitution to alleviate restrictive economic ownership provisions, as stated by House Speaker Martin Romualdez. These amendments aim to regulate sectors for foreign investors, addressing the current 60-40 rule that limits foreign ownership in local firms to 40%. Critics, however, express concerns that these constitutional changes could also lead to the removal of term limits for elected officials. Mikhail Flores, Reuters, December 10
Yoon voices hopes to strengthen special strategic partnership with India. On the occasion of the 50th anniversary of diplomatic relations between South Korea and India, President Yoon Suk Yeol expressed his desire to enhance their special strategic partnership. In a post on a social media platform, Yoon commended the longstanding relationship since December 10, 1973, and looked forward to collaborating with Indian Prime Minister Narendra Modi. This statement follows their discussions during the G20 summit in New Delhi in September, focusing on strengthening strategic communication and cooperation. The two nations elevated their relationship to a "special strategic partnership" in 2015. Chae Yun-hwan, Yonhap News Agency, December 10
Defence minister Prabowo surges ahead in Indonesia's presidential race. Indonesian Defence Minister Prabowo Subianto is leading significantly in the polls for the upcoming February presidential election, with recent surveys showing him over 20 points ahead. The latest Kompas poll indicates Prabowo and his running mate, President Joko Widodo's son Gibran Rakabuming, have 39.3% of the vote, while former Jakarta governor Anies Baswedan and Ganjar Pranowo trail behind. Despite concerns about dynastic politics following a constitutional court decision, Prabowo's popularity remains strong, bolstered by his new, more approachable public image. Kate Lamb, Reuters, December 10
Long Form
Will US-China Rivalry Spur the Transformation of Indonesia’s Critical Minerals Sector? The intensifying US-China rivalry, particularly in the context of clean energy, could significantly impact Indonesia's critical minerals sector. The US-led Indo-Pacific Economic Framework (IPEF) and the Biden administration's Inflation Reduction Act present both challenges and opportunities for Indonesia, potentially transforming its role in the global supply chain of critical minerals. By Moch Faisal Karim, The Diplomat, December 11
Southeast Asia’s Brewing Refugee Crisis. The potential shutdown of large online scamming operations in eastern Myanmar could lead to a unique refugee crisis. With an estimated 120,000 victims of cyber slavery trapped in Myanmar's scam compounds, the closure of these facilities, driven by China's crackdown on cybercrime, may leave many trafficking victims stranded. This situation poses a complex challenge, as these individuals seek to return home rather than flee their country, often facing criminalization in the process. By Lindsey Kennedy and Nathan Paul Southern, The Diplomat, December 11
China’s Coal Calculations. China's massive renewable energy projects, including in the Gobi Desert and Tibetan Plateau, indicate a significant shift towards reducing reliance on fossil fuels. With a substantial increase in hydro, wind, solar, and nuclear energy capacities, China might be reaching a turning point where renewable sources can meet its growing electricity demands. This shift suggests that China, the world's largest polluter, could start reducing its carbon emissions ahead of its 2030 target, aligning with global environmental goals. By Rachel Cheung, The Wire China, December 10
Caging the Tech Capitalists. China's regulatory landscape for tech giants has undergone significant changes, especially following Jack Ma's speech in October 2020. This shift marks a new phase in China's economic strategy, where the state exerts greater control over the tech sector. The approach balances innovation with increased oversight, reflecting China's evolving stance on managing its rapidly growing technology industry. By Ya-Wen Lei, The Wire China, December 10
Geopolitics Abound at the 2023 Pacific Games in Solomon Islands. The 2023 Pacific Games in Solomon Islands, featuring infrastructure projects like the Chinese-built National Stadium, highlight the complex geopolitics and development concerns in the region. The Games, costing up to 22% of the country's GDP, are seen as a unifying national project and a driver of economic recovery. Funding comes partly from the government and international donors, reflecting Solomon Islands' diplomatic shift from Taiwan to China and the resulting geopolitical interest from countries like the United States. The event's success could provide significant political capital for Prime Minister Manasseh Sogavare and validate his strategic alignment with China. By Charles Hawksley, East Asia Forum, December 11