China
How China built its ‘Manhattan Project’ to rival the West in AI chips. Sources said a Shenzhen team built a prototype EUV (extreme ultraviolet) lithography machine in early 2025. It generates extreme ultraviolet light but has not produced working chips. Huawei helps coordinate labs and firms, and China targets 2028 for chips, though sources said 2030 is more likely. Fanny Potkin, Reuters, December 17
China’s military calls for tip-offs as it targets corruption in air force procurement. China’s People’s Liberation Army posted a public call for real-name tip-offs on “irregular” PLA Air Force purchasing via its official procurement website. The notice sought reports on materials and services deals, including bid reviews, contract performance, and bidding-agent selection. Suppliers, evaluation experts, bid agents, and internal personnel can submit feedback by June 30, 2026. Amber Wang, South China Morning Post, December 18
Newcomers in charge at PLA’s corruption-hit command overseeing Taiwan. CCTV footage showed the corruption-hit Eastern Theatre Command, which oversees Taiwan, represented by PLA Air Force Lt. Gen. Yang Zhibin and Lt. Gen. Zhang Jichun at the Nanjing massacre commemoration, indicating they now lead the command. The previous commander, Lin Xiangyang, was expelled on corruption charges, and political commissar Liu Qingsong has not appeared publicly for months. William Zheng, South China Morning Post, December 17
Senior U.S. and Chinese defence officials meet as ‘military-to-military’ dialogue continues. Pentagon’s Alvaro Smith met Major General Ye Jiang in Washington for the 19th U.S.-China Defence Policy Coordination Talks, Dec. 15-16. Officials said the sides are expanding channels to support strategic stability and crisis deconfliction after Defense Secretary Pete Hegseth met Admiral Dong Jun on Oct. 31. Bochen Han, South China Morning Post, December 16
G7 condemns prosecution of Jimmy Lai, calls for his release. G7 foreign ministers condemned Hong Kong authorities for prosecuting pro-democracy campaigner Jimmy Lai after a guilty verdict for collusion with foreign forces, and called for an end to such cases and his immediate release. David Ljunggren, Reuters, December 17
Japan
Japan to seek constructive, stable ties with China: PM Takaichi. Prime Minister Sanae Takaichi said Japan will pursue dialogue to stabilize relations. She said China is an important neighbor and Japan keeps the door open. After her Nov. 7 Taiwan remarks, China issued travel and seafood curbs, and jets locked radar on Japanese aircraft. Kyodo News, December 17
Chinese tourist arrivals to Japan lose momentum amid tensions: official data. Japan’s tourism data showed 562,600 mainland Chinese visitors in November 2025, up 3% year on year, down from 775,500 in September and 715,700 in October. Tokyo cited capacity cuts and a steeper post-golden-week drop. Beijing issued travel warnings and urged trips be paused after Nov. 7 Taiwan-related tensions, prompting airlines to offer refunds and cancel over 1,900 December flights. Dannie Peng, South China Morning Post, December 17
Bill on cutting Lower House seats delayed until next year. Sanae Takaichi and Nippon Ishin’s Hirofumi Yoshimura agreed Dec. 16 to shelve the bill until the January Diet session. It would cut the 465-seat Lower House by 10%. Opposition parties objected, and deliberations never began. Shinkai Kawabe and Anri Takahashi, The Asahi Shimbun, December 17
Japan to seek constructive, stable ties with China: PM Takaichi. Prime Minister Sanae Takaichi said Japan will pursue dialogue to stabilize relations. She said China is an important neighbor and Japan keeps the door open. After her Nov. 7 Taiwan remarks, China issued travel and seafood curbs, and jets locked radar on Japanese aircraft. Kyodo News, December 17
South Korea
Special counsel raids opposition lawmaker’s home over gift to ex-first lady. Min Joong-ki’s special counsel raided Rep. Kim Gi-hyeon’s home Dec. 17 over bribery allegations. Investigators sought evidence on a 2.6 million-won Roger Vivier clutch allegedly given to Kim Keon Hee. Warrant reportedly lists Kim as an accomplice, and the team also tried to raid his office. Yoo Cheong-mo, Yonhap News Agency, December 17
U.S. Senate approves annual defense policy bill restricting USFK troop reduction. The Senate passed the fiscal 2026 National Defense Authorization Act 77-20. It bars spending to cut the 28,500-strong USFK unless the administration certifies the move serves US security and consults allies. Without certification, it also blocks funds for wartime operational control changes outside a bilateral deal. Lee Minji, Yonhap News Agency, December 17
S. Korea, U.S. share that latest talks on N. Korea different from past ‘working group’: Seoul official. A foreign ministry official said the Dec. 16 meeting implements a joint fact sheet. The unification ministry skipped it, warning it could hinder peace efforts. Former ministers called it a revived 2017-19 working group, but Seoul and Washington rejected that. Kim Seung-yeon, Yonhap News Agency, December 17
North Korea
Unification minister urges reopening of inter-Korean exchanges, cooperation. Chung Dong-young urged reopening inter-Korean exchanges and cooperation. He said Dec. 17 marked seven years since inter-Korean talks, and Seoul will try in 2026. Na Sang-ho said Won Buddhism will seek contacts with North Korean religious groups. Park Boram, Yonhap News Agency, December 17
Thailand
EC insists on election date of February 8, regardless of border clashes intensifying. Election Commission said the Feb. 8 election will proceed in provinces bordering Cambodia despite clashes. About 400,000 evacuees are in shelters, and the EC weighs special polling arrangements. Secretary-General Sawaeng Boonmee said martial law and other measures still need assessment, but the vote will not be postponed. The Nation, December 17
BJT lines up 3 PM candidates. Bhumjaithai weighs a three-candidate prime minister slate. Foreign Minister Sihasak Phuangketkeow and Commerce Minister Suphajee Suthumpun may join leader Anutin Charnvirakul. Party officials said the mix signals foreign affairs and economic management strengths, while Ekniti Nitithanprapas may lead an economic team. Aekarach Sattaburuth, Bangkok Post, December 17
With Thaksin jailed, Thailand’s Pheu Thai turns to nephew in poll fight back. Pheu Thai named Yodchanan Wongsawat, 46, a Shinawatra nephew, as its Feb. 8 PM pick as support fell to 11.04%. Thaksin began a one-year sentence in September. Parliament dissolved after Anutin Charnvirakul split with the People’s Party. Yodchanan, a Mahidol professor, said he could join a coalition. Panu Wongcha-Um, Reuters, December 17
Myanmar
Junta pushes revival of China-backed Myitsone dam project. Deputy chief Soe Win told Myitkyina elders the suspended Kachin State hydropower project should be reviewed and implemented. Deputy minister Aye Kyaw said talks with Chinese companies are underway to resume it. The dam was halted in 2011 amid environmental and seismic concerns and opposition. Maung Kavi, The Irrawaddy, December 17
Generals expected to dominate Myanmar’s post-election ‘civilian’ cabinet. Myanmar’s election commission scheduled voting in three phases from late December into January, with parliament convening in February. Analysts said Min Aung Hlaing could become president and name a cabinet by late March. They expect generals running under the USDP and junta loyalists to fill senior posts. Maung Kavi, The Irrawaddy, December 17
Cambodia
From hospital beds, Cambodian soldiers describe ‘toxic gas’. Troops in Banteay Meanchey hospitals said they struggled to breathe after Thai aircraft sorties and reported “poisonous water” and smoke dropped near bases. Cambodia’s defense ministry accused Thailand of using toxic gas but gave no evidence. Thailand’s air force denied weapons use and called the reports fake news. Thomas Suen, Chantha Lach, Juarawee Kittisilpa and Devjyot Ghoshal, Reuters, December 17
Laos
Laos rejects claims of oil re-exports to Cambodia, assures compliance with law. Minister Malaithong Kommasith said Thai fuel imports are for domestic use, and any re-export is illegal. Laos said volumes are stable, with border fuel-truck traffic fluctuating. Thailand suspended fuel exports at Chong Mek on Dec. 15 over suspected routing to Cambodia, calling it a security precaution. Phontham Visapra, The Laotian Times, December 17
Philippines
Palace: Enough time to pass 2026 budget. Malacañang said President Ferdinand Marcos Jr. still has time to pass the 2026 budget. Sen. Panfilo Lacson urged a reenacted budget over a “corruption-conducive” appropriations law. Press officer Claire Castro rejected that, saying Dec. 17 leaves room to study it. Catherine S. Valente, The Manila Times, December 17
Bicam on 2026 nat’l budget ends. House and Senate panels ended talks on the proposed P6.793-trillion 2026 national budget at 2:22 a.m. Thursday after more than nine hours. Sen. Sherwin Gatchalian said disagreements were reconciled and called it corruption-free with no overpriced items. Lawmakers will return the bill for ratification before sending it to President Ferdinand Marcos Jr., with possible transmittal by Dec. 29 if a quorum holds. Charie Abarca, Philippine Daily Inquirer, December 18
Malaysia
Anwar: Malaysian Media Council to guide govt on press freedom reforms. Prime Minister Anwar Ibrahim said the Malaysian Media Council should advise the cabinet on laws that restrict press freedom. He said the council must set clear limits on coverage involving race and religion. He warned that competition can push outlets to inflame sensitivities. Malay Mail, December 18
Singapore
Singapore MAS survey shows economists raising 2025 growth forecast. A Monetary Authority of Singapore survey of 20 economists put the median 2025 GDP growth at 4.1%, up from 2.4%. They saw 2026 growth at 2.3% and expected no policy change in January. Top downside risks were geopolitical tensions and a potential AI bubble bursting. Jun Yuan Yong, Reuters, December 17
Taiwan
Taiwan says U.S. proceeding with $11.1 billion arms package, largest ever. Taiwan’s defense ministry said the U.S. is moving ahead with an $11.1 billion arms sale covering eight items, including HIMARS, howitzers, anti-tank missiles, drones, and parts. The package is at the congressional notification stage. Taiwan said the deal supports asymmetric warfare, rapid deterrence, and regional stability. Ben Blanchard and Michael Martina, Reuters, December 18
China’s newest aircraft carrier sailed through Taiwan Strait, Taipei says. Taiwan’s defense ministry said the Fujian crossed the strait Tuesday. It was its first transit since entering service last month. Minister Wellington Koo said it was likely headed to Shanghai and showed no military activity. Taiwan later reported 23 warplanes and warships near the island. Ben Blanchard and Jeanny Kao, Reuters, December 17
Taiwan government accused of trying to ‘bypass legislature’ amid bitter funding row. Taiwan’s cabinet refused to countersign opposition amendments on revenue sharing after the final vote. Premier Cho Jung-tai said the changes violate the constitution. Critics said it overrides the legislature. The cabinet warned it would add NT$264.6 billion in debt next year and exceed borrowing limits. Lawrence Chung, South China Morning Post, December 17
India
India summons Bangladesh envoy over security concerns in Dhaka. India summoned Bangladesh High Commissioner Riaz Hamidullah to protest alleged extremist plans targeting its Dhaka mission. Bangladesh earlier summoned India over former PM Sheikh Hasina’s remarks about India. Dhaka’s Indian visa center closed on the afternoon of Dec. 17, citing security cocerns. Ruma Paul, Reuters, December 17
Kazakhstan
Kazakhstan launches satellite into orbit with Chinese help. China’s Kuaizhou 11 rocket launched the Dier-5 nanosatellite on Dec. 13 into orbit about 330 miles above Earth. Kazakhstan’s Al-Farabi University and a Xi’an-based partner built it in just over a year for scientific experiments and data transfer. Observers said the launch undercuts the delayed Russian-backed Baiterek Soyuz-5 program. Eurasianet, December 17
Tokayev sets out ambitious agenda to strengthen Kazakhstan’s energy security. Tokayev said Kazakhstan will connect western grids to the national system. He ordered new generation and Almaty plant upgrades in 2026 to cut pollution. He backed clean coal, renewables above 7%, and a nuclear power plant. Ayana Birbayeva, The Astana Times, December 17
Uzbekistan
President of Uzbekistan to pay official visit to Tokyo, attend first Central Asia + Japan summit. Shavkat Mirziyoyev will visit Japan Dec. 18-20. He will meet Emperor Naruhito and PM Sanae Takaichi in Tokyo. He will attend the first Central Asia + Japan summit, expected to unveil new frameworks of cooperation between Japan and the Central Asian states. Gazeta, December 18
Tajikistan
Tajikistan looks to coordinate AI development with Central Asian neighbors. Tajik officials proposed regional rules for AI. At a Dec. 10 Bishkek forum, Shohnazar Kholnazarzoda called for unified legal standards for “digital security.” On Dec. 16, President Emomali Rahmon announced a National AI corporation and a 15-year plan, and proposed a regional AI center in Dushanbe. Eurasianet, December 17
Turkmenistan
U.S. eases restrictions on entry of Turkmenistan nationals. Washington lifted the June suspension on Turkmenistan nationals entering on non-immigrant visas. A new Tuesday order expanded vetting limits for other countries but said Turkmenistan improved identity management and information-sharing. The lift covers B-1, B-2, F, M and J visas, while immigrant entry stays suspended. The Times of Central Asia, December 17
East Asia
Shrinking East Asia needs a safety net. East Asia’s growth pace trails pre-pandemic levels, and the pattern is linked to productivism, a welfare strategy that favors rapid growth and human capital over social protection. Limited social spending sustains high savings and slows a transition from exports toward domestic demand, with weak consumption among older people. In 2020, elderly poverty reached 40.5 percent in South Korea, with high rates in Japan at 20 percent and Hong Kong at 32 percent. Child maltreatment tied to urbanization imposes large economic costs and harms learning and work outcomes, while policy focus centers on detection more than protection and rehabilitation. Productivism also contributes to low fertility through long working hours, risk exposure, and policy legacies from the 1960s and early 1970s. Social welfare is framed as core infrastructure for future development. Arvid Lukauskas and Yumiko Shimabukuro, East Asia Forum, December 17
A red banner year for the PLA. 2025 brought disclosures about the People’s Liberation Army that challenged prior assessments and underscored the speed of China’s modernization. Photos from late 2024 and 2025 point to two sixth-generation fighter programs and show a tailless stealth prototype labeled J-50. Milestones include commissioning a third aircraft carrier, signs of a fourth carrier under construction, new combat drone designs, invasion barges for a Taiwan amphibious landing, a Beijing military parade, and a new amphibious vessel. The year produced images of a new military transport aircraft and reports of Chinese weapon performance in Pakistan’s aerial clash with India. Capability gaps remain in anti-submarine warfare, nuclear submarines, and aircraft engines, while China is described as a leader in military technology beyond the imitator role. Sam Roggeveen, Lowy Institute, December 17
Art of the struggle meets great power competition: Beijing’s approach to Trump 2.0. China’s government pairs offers of cooperation with warnings that it will defend sovereignty, security, and development interests in dealings with Trump’s second term. Xi Jinping’s first Trump 2.0 meeting included senior economic officials Wang Yi, Ma Zhaoxu, He Lifeng, Zheng Shanjie, and Wang Wentao, plus Cai Qi, a top party figure, highlighting a blend of state bureaucracy and CCP discipline. Beijing trades flexibility on lower-stakes issues such as TikTok for leverage on tariffs, rare-earth export controls, agriculture, and US technology restrictions. The approach matches a Chinese concept of “fighting without breaking the foundations,” where struggle and coexistence share space. A tariff rollback linked to export-control suspension showed Beijing held its ground. Xi’s Taiwan message and an April 2026 Beijing summit point to agenda-setting. Claus Soong, MERICS, December 17
The Chinese Core of “Uganda’s ChatGPT”. Uganda launched the Sunflower AI model in October, built on Alibaba’s Qwen-3 foundation through a partnership between the Ugandan government and Sunbird AI, to support translation and content generation for local languages. China Media Project tests in Luganda found responses aligned with PRC narratives, describing China as a democracy with Chinese characteristics, avoiding criticism of human rights, and rejecting the label of dictator for Xi Jinping. The model frames China’s role in Uganda as beneficial for jobs and business, and it softens discussion of domestic corruption topics such as Member of Parliament pay. Open models can give Global South users access at low cost, but they can expand state control over narratives in languages neglected by global technology firms. Alex Colville, China Media Project, December 17
Japan’s Present and Future National Security Strategy: Five Key Challenges to Watch. Japan’s prime minister Sanae Takaichi pledged a “new golden age” of the Japan-US alliance, advanced a plan to reach defense spending of 2 percent of GDP by the end of the fiscal year, and called for revisions to three national security documents. Beijing’s reaction to her Diet remarks on a Taiwan Strait scenario included threats plus economic and military coercion, which sharpened the case for faster reforms. Five challenges stand out: funding a larger buildup amid yen weakness and high debt, coalition changes after the LDP split with Komeito, program choices such as Tomahawk deployment and the SHIELD drone initiative, risks from an indigenous production push in lagging tech areas, and slow senior alliance dialogue on command architecture and strike coordination. Christopher B. Johnstone and Adam P. Liff, CSIS, December 17
South Asia
South Asian States Seek Cooperation Without India. Pakistan’s foreign minister Ishaq Dar backed a regional organization linking Bangladesh, China, and Pakistan after a June trilateral meeting in Kunming, a move meant to bypass SAARC. SAARC, founded in Dhaka in 1985, has stalled, with its last summit in Kathmandu in 2014 and a canceled 2016 meeting in Islamabad after a terrorist attack in India. Bangladesh’s interim leader Muhammad Yunus has eased Dhaka’s stance toward Pakistan and revived military ties, while India faces strained relations with Pakistan, China, and Bangladesh. Excluding India could weaken SAARC’s remaining role in dialogue and raise Indian security concern given China-Pakistan cooperation, pushing New Delhi toward a regional diplomacy reset that addresses neighbor misgivings on issues such as trade liberalization. Sumit Ganguly, Foreign Policy, December 17
Double-backed power: How the US and China are cementing Pakistan’s military rule. Pakistan’s parliament passed the 27th Amendment on November 13, 2025, creating a Federal Constitutional Court with judges chosen through political appointment and diverting key powers from the Supreme Court. The amendment makes the army chief the chief of the defense forces and grants lifetime rank and uniform privileges to officers promoted to field marshal, a change tied to Army Chief Asim Munir’s promotion. Munir’s rise is linked to the May 2025 conflict with India and to White House access under President Donald Trump, which Pakistan credits with ending the war, alongside a US$500 million rare earths partnership. China’s CPEC investments and arms exports, estimated at 81 percent of Pakistan’s defense imports from 2020 to 2024, deepen Beijing’s reliance on the Pakistan Army. Rishi Gupta, ThinkChina, December 17