Asia Daily: December 17, 2025

China

Hong Kong leader raises Jimmy Lai conviction in meeting with China’s Xi. Hong Kong leader John Lee said he raised Jimmy Lai’s conviction with China’s Xi Jinping in Beijing a day after the media tycoon was found guilty of collusion with foreign forces, and said Xi urged Hong Kong to keep safeguarding national security. Lee also accused foreign media of misleading coverage and whitewashing Lai’s actions. James Pomfret and Jessie Pang, Reuters, December 16

China seizes 430kg cocaine aided by U.S. intel, in sign anti-drug pact may be working. Chinese customs found 430kg of cocaine in a container at Shenzhen’s Yantian port on Nov. 26 after US tip-offs. The seizure follows an Oct. 30 Xi-Trump pledge on counternarcotics cooperation, tied to fentanyl-precursor controls and tariff relief. Phoebe Zhang, South China Morning Post, December 16

Trump urges Xi to show leniency for Jimmy Lai as Britain summons China’s ambassador. Britain summoned China’s UK ambassador after Hong Kong convicted British citizen Jimmy Lai on national security charges. Trump said he asked Xi Jinping to consider Lai’s release. Lai, 78, has been held since December 2020 and faces 10 years to life in prison. Mark Magnier, South China Morning Post, December 16

China reiterates demand that Japanese PM retract Taiwan remarks. China repeated its call for Japan to retract Prime Minister Sanae Takaichi’s Taiwan comments, saying Tokyo is trying to evade key issues and that Beijing firmly opposes the stance. The foreign ministry said relations are at a low point after Takaichi said a hypothetical attack on Taiwan could be deemed an existential threat to Japan and trigger a military response. Reuters, December 16

Japan

Diet passes extra budget for fiscal 2025 targeting higher prices. Japan’s Upper House approved an ¥18.3 trillion fiscal 2025 supplementary budget, funded partly by higher tax revenue and ¥11.6 trillion in new bonds. The package includes ¥8.9 trillion for inflation relief, including utility subsidies, ¥20,000 per child payments, and grants to counter food-price increases, plus spending for crisis management, growth investment, defense and reserves. Takao Shinkai, The Asahi Shimbun, December 16

LDP, Nippon Ishin at odds over checks on weapons exports. Japan’s ruling LDP and Nippon Ishin agree on removing limits that restrict defense exports to five noncombat uses, but differ on safeguards. Nippon Ishin supports broad lethal-weapons exports with case-by-case approvals, including to invaded states, while the LDP wants tighter screening, stronger recipient criteria and Cabinet-level approval for highly lethal transfers. The coalition aims to draft a proposal in February. Mizuki Sato, The Asahi Shimbun, December 16

Decision on Lower House seat-reduction bill postponed to next year. Prime Minister Sanae Takaichi and Nippon Ishin no Kai leader Hirofumi Yoshimura agreed to delay debate on a bill cutting Lower House seats by 10% until next year, keeping it on the agenda and shifting deliberations to a committee reviewing the election system after the census. Yoshimura criticized the lack of deliberation as the Diet session ended. Eric Johnston and Gabriele Ninivaggi, The Japan Times, December 16

South Korea

16 military police officials suspended over attempt to detain politicians under martial law. South Korea’s defense ministry suspended 16 Criminal Investigation Command military police officials accused of sending 10 investigators to the National Assembly on the night former President Yoon Suk Yeol declared martial law last December to detain lawmakers and block a vote to overturn the decree. They will be questioned by a government task force after tip-offs prompted a probe. Kim Hyun-soo, Yonhap News Agency, December 16

S. Korea, U.S. hold ‘comprehensive’ talks on N. Korea policy based on summit fact sheet: Seoul. South Korea and the United States met in Seoul to coordinate North Korea policy under the Oct. 29 Lee-Trump summit fact sheet, reaffirming denuclearization and support for the 2018 Trump-Kim statement. Talks prompted friction as the unification ministry stayed out. Kim Seung-yeon, Yonhap News Agency, December 16

Vietnam

Foreign arrivals to Vietnam hit record high despite pollution, floods. Vietnam is on track for a record 21 million foreign visitors in 2025, the culture ministry said, surpassing the 18 million pre-pandemic peak in 2019 and rising 19.3% from last year. The ministry marked the 20 millionth arrival on Phu Quoc. Officials cited chronic air pollution in Hanoi and flooding in Hue, Hoi An and Nha Trang. Khanh Vu, Reuters, December 16

Thailand

Thailand works to repatriate thousands stranded at Cambodia border crossing. Thailand is arranging the return of up to 6,000 citizens stuck in Poipet after Cambodia shut a major checkpoint as border fighting entered a second week. Bangkok told Thais they can seek help at its Siem Reap consulate to arrange flights home. Thai officials said clashes continue across eight provinces, while Malaysia plans a special ASEAN meeting on a ceasefire. Panu Wongcha-um and Chayut Setboonsarng, Reuters, December 16

Thaksin’s nephew is Pheu Thai’s prime candidate for PM. Pheu Thai named Yodchanan Wongsawat as its top prime ministerial nominee for the Feb. 8 election, with party leader Julapun Amornvivat and veteran politician Suriya Juangroongruangkit also on the list. The party pitched Yodchanan, 46, an engineer and brain-computer interface researcher, as its governance choice as it tries to recover from a damaging Hun Sen phone-call controversy. Bangkok Post, December 16

Thai central bank is ‘taking action’ on baht, worried by rapid rise. Bank of Thailand tightened checks on gold-related FX trades and told banks to scrutinize foreign-currency inflows after the baht rose 8.8% this year in recent weeks. Governor Vitai Ratanakorn said gold dealers’ dollar sales can reach 20% of FX turnover, adding volatility. Orathai Sriring, Kitiphong Thacharen, Thanadech Staporncharnchai and Chayut Setboonsarng, Reuters, December 16

Myanmar

India, Myanmar talk closer military ties, post-election ‘opportunities’. India’s ambassador to Myanmar, Abhay Thakur, and military attaché Jaswinder Singh Gill met junta official Kyaw Swar Lin in Naypyitaw to discuss reciprocal military training, border security, stability and deeper army-to-army cooperation, with the junta citing unspecified “opportunities” after Myanmar’s year-end election. The meeting came as the junta intensified airstrikes in resistance areas. Maung Kavi, The Irrawaddy, December 16

Myanmar junta says Suu Kyi ‘in good health’ after son raises alarm. Myanmar’s junta said detained former leader Aung San Suu Kyi is “in good health,” offering no details, after her son Kim Aris said he has received little information for years and fears she could die without him knowing. The junta accused Aris of trying to disrupt an election starting Dec. 28 that many governments reject as a sham. Reuters, December 16

Cambodia

UN urged to intervene in Cambodian-Thai border dispute. Cambodia’s UN ambassador Keo Chhea told the Security Council that Thailand’s shelling and airstrikes across seven provinces killed 15 civilians, displaced 409,000, and damaged infrastructure and Preah Vihear Temple. He said Thailand rejected the ceasefire and ICJ referral, while Cambodia backs ASEAN-led talks and international law. Khmer Times, December 16

Philippines

PH denounces China’s ‘inhumane’ acts over its fishermen in shoal incident. The defense department condemned Chinese coast guard and maritime militia actions near Escoda (Sabina) Shoal after water cannon, aggressive maneuvers and cut anchor lines injured Filipino fishermen within the Philippines’ exclusive economic zone. Defense Secretary Gilberto Teodoro Jr. rejected China’s “indisputable sovereignty” claim as illegal, citing UNCLOS and the final 2016 arbitral ruling, and urged China to stop disinformation. Izel Abanilla, The Manila Times, December 16

Indonesia

Indonesia, Iraq explore stronger oil and gas cooperation. Indonesia and Iraq discussed expanding oil and gas cooperation through an intergovernmental MoU involving Pertamina International EP, covering trade, investment, technology transfer, joint research and training. Iraq invited Pertamina to help manage producing fields and explore “green” fields under a joint venture. PIEP already holds a 20% stake in one Iraqi oil field. ANTARA News, December 16

Malaysia

Malaysian PM Anwar names new trade, economy ministers in cabinet reshuffle. Prime Minister Anwar Ibrahim reshuffled his cabinet to fill vacancies after resignations and expired senate terms. Anwar said the changes aim to restore teamwork and tackle living costs as growth slows and trade uncertainty rises. Rozanna Latiff, Reuters, December 16

Malaysia Cabinet reshuffle: full list of all 28 ministers and deputies. Prime Minister Anwar Ibrahim announced a new Cabinet lineup with changes to key portfolios. Johari Abdul Ghani became the investment, trade, and industry minister, and Akmal Nasrullah Mohd Nasir took the economy post. Hannah Yeoh moved to the federal territories, while Azalina Othman Said retained the law and institutional reform portfolio today. Malay Mail, December 16

Taiwan

Court hears arguments in cases against ex-Taipei Mayor Ko Wen-je. Taipei District Court began oral arguments in bribery and political-donation cases against Ko Wen-je. Prosecutors said he intervened in the Core Pacific City project and approved changes after 2020, including raising the floor area ratio from 560 to 840, for alleged bribes of NT$17.1 million. Ko denied wrongdoing. Lin Chang-hsun, Joseph Yeh and Christie Chen, Focus Taiwan, December 16

Premier defends refusal to enact spending plan, draws opposition ire. Premier Cho Jung-tai would not countersign amendments shifting revenue to local governments, calling them unconstitutional and outside its authority. He said lawmakers can launch a no-confidence vote. KMT and TPP leaders called the move authoritarian, while President Lai warned the changes would weaken fiscal sustainability. Kao Hua-chien, Frances Huang and Christie Chen, Focus Taiwan, December 16

East Asia

China’s Invisible Journalists. Foreign reporting in China depends on news assistants, called fixers, who contact interview subjects, translate, secure permits, and handle emergencies, yet receive no bylines. Chinese regulations require foreign news agencies to employ citizens via foreign affairs service units, and contracts designate these staff as “news assistants,” with pay distributed through labor service companies. Without press credentials, news assistants face a legal vacuum and risk from law enforcement, public hostility, and online harassment, with uncertainty in Hong Kong after the 2020 National Security Law and Article 23. Xiao Bing, China Media Project, December 16

What’s It Like to Be a Chinese Soldier? PLA recruits are conscripts in law, but enlistment is voluntary, and university military training centers on marching and propaganda. Soldier status moved from low prestige to a Communist Party image of disciplined heroes, then fell after economic opening and the 1989 Tiananmen crackdown, followed by limits on serving in home provinces. Recruitment draws from rural areas with more education than past cohorts, and the force is male-dominant. Base life brings strict control, limited family time, political education by commissars, graft, and weak paths to promotion. Veteran benefits and pensions often fail, which has triggered protests, despite new institutions and laws. James Palmer, Foreign Policy, December 16

Is Japan’s economic security strategy economical? Japan has directed US$25.7 billion in semiconductor subsidies since 2022 under an economic security agenda that prioritizes stable supply of critical items and advanced critical technologies. Japan’s industry share fell from 48 per cent of global production in 1986 to 12 per cent of the value chain in 2022, with strengths in materials and manufacturing equipment. Government backing targets domestic fabs, next-generation technology and R&D, with the bet on Rapidus, a consortium seeking mass production by 2027 that needs US$34.5 billion and has received over one-third in funds despite a one-third cap. The approach may misallocate scarce funds if private investors, talent and customers fail to emerge, so proposals call for private capital at the start, profit sharing, supply chain mapping and joint research. Joseph Negrine, East Asia Forum, December 16

Succession at the Crossroads: Scenarios for North Korea’s Future. Kim Ju Ae’s public appearances and doubts about Kim Jong Un’s health have fueled succession debate in North Korea, with no clear indication that a transition plan has begun. Past campaigns balanced elite loyalty, propaganda, and military strength, but the duration and methods differed between Kim Jong Il’s long grooming and Kim Jong Un’s short rise. A female heir would face a patriarchal political system and could need expanded propaganda, elite reshuffles, and military demonstrations, while a male heir could face fewer social barriers and needs political and military credentials. Hans Horan, 38 North, December 16

Southeast Asia

Malaysia’s Silent Trade War: China’s Overproduction, Malaysia’s Overreliance. Cheap Chinese imports linked to subsidies and overcapacity have weakened Malaysian producers and accelerated premature deindustrialization. China has been Malaysia’s largest trading partner for 17 years, and Malaysia has run a trade deficit with China for over 13 years, with China at 22.8% of imports in July 2025. Dependence is visible in electronics and electrical goods, where Malaysia imported one quarter of Chinese E&E products and saw a 20% export drop during China’s 2020 factory shutdowns. Anti-dumping duties on steel and PET offer limited relief, and proposed reforms focus on higher-value investment, more R&D, export-linked incentives, and stronger SME and FDI linkages. Jia Yang Tee, Sino-Southeast Initiative, December 16

Why Indonesian President Prabowo is drawn to Xi Jinping’s China. Prabowo Subianto’s trip to Beijing on Sept. 2, 2025 for China’s military parade placed him beside Xi Jinping and Vladimir Putin and drew debate at home amid protests over corruption, police abuses, and inequality. The visit reflected affinity with a strong state and moral authority rooted in national culture. Prabowo cites values such as gotong royong and promotes bureaucratic discipline and state stewardship of national wealth, paralleling Xi’s fusion of revolutionary legacies with Confucian ethics and state-led development. Indonesia’s constitution and fragmented institutions limit the centralization China sustains, leaving Prabowo’s project in question. Ronny P Sasmita, ThinkChina, December 16

South Asia

Can Nepal’s youth turn protest into power in 2026? After Sept. 8-9 Gen Z protests that killed 76 people and torched parliament, Nepal set elections for March 5, 2026 and appointed its first female prime minister, Sushila Karki. The movement lacked a central leader, with coordination on apps such as Discord and anger over corruption, nepotism, and a social media ban that sparked unrest after a police crackdown. Youth unemployment is 20% and remittances equal a third of GDP, reinforcing demands for jobs, skills-based education, and startup support. Proposals include investment reforms, simpler business processes, and a “Digital Nepal” agenda, while critics warn of divisions and stronger interference from China and India. Brabim Karki, Nikkei Asia, December 16

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