News
China’s economic data again under the microscope, local authorities warned over falsifying statistics. China's National Bureau of Statistics has issued warnings to local authorities against fabricating economic data, highlighting instances of data falsification in Guizhou and Shaanxi provinces. These efforts are part of Beijing's broader initiative to enhance data accuracy for more effective economic decision-making. The bureau's inspections across several provinces, including a nationwide economic census, aim to ensure data authenticity, especially in the post-Covid economic landscape. However, issues persist, with reports of local officials in Henan province inflating economic figures for personal advancement and to meet growth targets, exacerbating the local government debt crisis. Frank Chen, South China Morning Post, December 1
North Korea says interference in its satellites would be declaration of war. North Korea has issued a stern warning that any interference with its satellite operations would be considered a declaration of war. This statement comes after Pyongyang claimed it successfully launched a military spy satellite on Nov. 21, which reportedly transmitted photos of military installations in the U.S. mainland, Japan, and Guam. In response to potential U.S. actions, North Korea stated it would take measures to undermine or destroy the viability of U.S. spy satellites. Following the satellite launch, the United States imposed fresh sanctions on North Korea, targeting individuals involved in its satellite and ballistic missile development, while South Korea blacklisted 11 North Koreans, banning them from financial transactions. Heekyong Yang, Reuters, December 1
China’s top spy agency vows to safeguard critical minerals, slams Western tech containment. China's Ministry of State Security has emphasized the safeguarding of critical mineral resources as a top priority for national security. This initiative aims to protect resources like lithium, gallium, germanium, and rare earths, crucial for developing strategic new industries such as new energy, semiconductors, artificial intelligence, and aerospace. The agency’s statement follows China's implementation of export controls on key minerals used in semiconductor manufacturing, seen as a response to Western sanctions on China's chip industry. These measures highlight the intensifying global competition and geopolitical tensions over critical resources. Sylvia Ma, South China Morning Post, December 1
U.S. forces dispatch 2 Ospreys after fatal crash of another in Japan. After a U.S. Air Force CV-22 Osprey crashed in southwestern Japan, U.S. Forces Japan dispatched two MV-22 Ospreys for search operations, amid local safety concerns. The crash led to one death and seven missing crew members. U.S. Forces Japan has halted CV-22 flights, but not MV-22s or CMV-22s. The U.S. Defense Department stressed safety as a top priority. Japan has officially requested the U.S. limit Osprey flights to search and rescue missions. Kyodo News, December 2
China, Vietnam weigh rail link through rare earths heartland. China and Vietnam are exploring the possibility of upgrading their rail links, focusing on a line that would pass through Vietnam's rare earths heartland and extend to its northern port city, Haiphong. This development follows meetings between Chinese and Vietnamese leaders and aims to boost trade and infrastructure connections. The proposed railway, which could be part of China's Belt and Road Initiative, holds significant implications for the transportation of rare earth minerals and the integration of the two countries' economies. Phuong Nguyen and Khanh Vu, Reuters, December 1
South Korea set to launch first spy satellite with SpaceX. South Korea is scheduled to launch its first military spy satellite aboard a SpaceX Falcon 9 rocket on Dec. 2. This domestically-built satellite, designed to orbit 400-600 km above Earth and capable of detecting objects as small as 30cm, is part of Seoul's efforts to enhance surveillance over North Korea. South Korea plans to deploy four additional spy satellites by the end of 2025, intensifying the space race on the Korean peninsula. This launch follows North Korea's recent deployment of its own spy satellite, underscoring the growing importance of space-based reconnaissance in the region. Channel News Asia, December 1
Ex-DP leader Song to be questioned next week over cash-for-vote scandal. Song Young-gil, the former leader of the Democratic Party, is set to face prosecutors next week in connection with a cash-for-votes scandal related to the party's 2021 leadership election. The Seoul Central District Prosecutors Office has summoned Song for questioning regarding allegations of distributing cash envelopes totaling 94 million won to party members. The investigation, which began in April, focuses on Song's alleged role in distributing cash envelopes to lawmakers and taking bribes for business favors. Park Boram, Yonhap News Agency, December 1
Japan hopes for early easing of tensions in Gaza: PM tells Israel. Japanese Prime Minister Fumio Kishida expressed his hope for an early resolution of tensions in Gaza during a meeting with Israeli President Isaac Herzog. The conversation, which took place at a U.N. climate change conference in the UAE, included discussions on the need for increased humanitarian aid to Gaza. Kishida's meeting with Herzog marked his first in-person discussion with an Israeli leader since Hamas's Oct. 7 attack on Israel, coinciding with the resumption of hostilities following a weeklong truce. Japan, heavily reliant on Middle Eastern oil, maintains a balanced diplomacy approach in the region. Kishida condemned Hamas's terror attacks and praised Qatar's mediation efforts, while also expressing regret over the renewed fighting and emphasizing the importance of returning to peaceful negotiations. Kyodo News, December 1
New party to face old guard in Bhutan's fourth free vote. Bhutan is gearing up for its fourth election since adopting democracy 15 years ago, with a new political party, the Bhutan Tendrel Party (BTP), emerging to challenge the established People's Democratic Party (PDP). The PDP, led by former Prime Minister Tshering Tobgay, and the newly formed BTP, created by ex-bureaucrat Pema Chewang, are the two main contenders following the preliminary round of voting. Both parties advocate for increased investment to bolster Bhutan's $3 billion economy and share similar views on key issues like hydroelectric power development, agricultural growth, and unemployment. Gopal Sharma, Reuters, December 1
Laos Explores Rare Earth Token Project to Boost Economy. The Lao government, under Prime Minister Sonexay Siphandone, is considering a pioneering project involving a rare earth token to enhance foreign currency generation and boost the economy. Announced at a cabinet meeting, this initiative aims to use blockchain technology for managing and trading rare earth elements (REEs), crucial in various high-tech applications. While the project could significantly increase foreign investments and economic growth, experts caution about its feasibility, citing concerns such as price volatility, environmental impact, and cybersecurity risks. The government is contemplating forming a committee and enacting legislation for effective management and oversight of the project, aligning with its broader strategy to optimally leverage rare earths and other minerals amid rising global demand. Chono Lapuekou, Laotian Times, December
Long Form
The Evolution of China’s Interference in Taiwan. China's long-term campaign of foreign information manipulation and interference in Taiwan aims to annex the island and has significantly evolved over the years. These efforts focus on influencing Taiwan's elections, particularly presidential ones, by optimizing tactics to increase effectiveness and societal polarization. China's strategy includes psychological warfare, manipulating media, and cultivating local proxies. This evolving pattern of interference, part of China's broader global tactics, poses a challenge to democracies worldwide. By Tim Niven, The Diplomat, December 1
Australia, Indonesia Aim to Challenge China’s Dominance in EVs and Batteries. Indonesia and Australia are collaborating to challenge China's dominance in the electric vehicle (EV) and battery manufacturing sectors. This partnership focuses on leveraging Indonesia's nickel and Australia's lithium resources to establish a strong presence in global EV and battery supply chains. Amidst the China-U.S. rivalry for technological dominance in clean energy, this alliance is significant. The United States, seeking to reduce dependence on China, views Australia as a key ally in creating alternative supply chains, a move that also benefits Indonesia's collaboration with Australia. This strategic partnership reflects the shifting geopolitical landscape and the growing importance of securing resources and technology in the clean energy transition. By Marina Yue Zhang, The Diplomat, December 1
U.S. and China Butt Heads Over Investment in Southeast Asia. Southeast Asia has become a focal point for foreign direct investment (FDI) amid the intensifying U.S.-China rivalry. In 2022, the region attracted a record $222.5 billion in FDI, with both U.S. and Chinese businesses drawn by political stability and large markets. The U.S. has been investing heavily in semiconductor-related projects in Singapore and Malaysia, while China focuses on electric vehicle (EV) plant construction in Thailand and mining development in Indonesia. This investment surge is partly driven by the desire to relocate manufacturing bases, with U.S. companies pursuing "friendshoring" to replace China in supply chains, and Chinese companies moving facilities to third countries for exports to the U.S. and Europe. Southeast Asia's strategic role as a buffer zone in U.S.-China competition is enhancing its attractiveness for investment, benefiting from the geopolitical dynamics. By Kenya Akama and Yuji Nitta, Nikkei Asia, December 1
Balancing China’s Labour Migration Through Education. China's recent census shows a 69.7% increase in domestic migrant numbers since 2010, reflecting significant shifts in employment sectors and educational attainment among migrant workers. The newer generation of migrants, better educated than their predecessors, are increasingly employed in the manufacturing sector, while the construction sector sees a decline in migrant involvement. This shift poses challenges, as skilled migrants adapt better to urban environments, leaving under-skilled laborers marginalized. The migration of skilled labor from underdeveloped regions could exacerbate regional economic disparities, as seen in countries like Romania. To address this, the Chinese central government could focus on education policies to bridge the wage gap between high and low-skilled workers and foster regional economic convergence. By Yongjie Xiong, East Asia Forum, December 2
Hostage Situation Reinforces Tensions in Papua. The ongoing hostage situation in Papua, involving the abduction of New Zealand pilot Philip Merthens by the West Papua National Liberation Army (TPNPB) since February 2023, highlights the failure of Indonesia's state-imposed autonomy in the region. Despite Indonesian President Joko Widodo's commitment to resolving the situation through negotiation, the TPNPB has rejected these initiatives, preferring third-party involvement. The situation underscores the ineffectiveness of counterinsurgency measures in securing the highland areas and addressing Papua's long-standing political conflict. The Indonesian government's extension of the controversial special autonomy law in 2021 without meaningful consultation has exacerbated tensions, failing to provide stability or reduce conflicts. The central government's reliance on a security approach and limited communication with Papuan communities has been ineffective, as evidenced by the protracted hostage crisis and ongoing violence in the region. By Alexandro Rangga, SKPKC Franciscan Papua and Hipolitus Wangge, East Asia Forum, December 2