Asia Daily: February 14, 2024
News
Solomon Islands’ pro-China leader pledges to continue balancing act with Australia as he seeks re-election. Solomon Islands' Prime Minister Manasseh Sogavare, known for his pro-Beijing stance, aims to maintain a pragmatic foreign policy balance between China and traditional partners like Australia. Despite concerns over growing Chinese influence, Sogavare's government seeks to leverage opportunities from both China's Belt and Road Initiative and Australian infrastructure funding, adopting a 'friends to all, enemies to none' approach. Dewey Sim, South China Morning Post, February 13
Over 20% of LDP lawmakers fail to properly report political funds. An internal survey revealed that more than 20% of Japan's ruling Liberal Democratic Party (LDP) lawmakers incorrectly reported political fund revenues, amid a scandal involving unreported slush funds. Despite criticism from opposition lawmakers for the survey's limitations, the LDP plans to publish findings on the improper reports by 85 members. The controversy highlights the challenges facing the LDP's internal governance and the broader implications for political transparency in Japan. Kyodo News, February 13
China objects to ‘unilateral sanctions’ in Ukraine war as EU proposes new trade curbs. China has reiterated its stance against unilateral sanctions amid the Ukraine conflict, advocating for peace and dialogue. The EU's consideration of new trade restrictions on Chinese and Hong Kong firms for bypassing sanctions on Russia has prompted Beijing's objection. This development indicates a complex dynamic between China, the EU, and broader geopolitical tensions related to the Ukraine war. Zhao Ziwen and Finbarr Bermingham, South China Morning Post, February 13
Nikkei briefly surges above 38,000 in new 34-year high. The Nikkei Stock Average soared, reaching above 38,000 for the first time in 34 years, driven by optimistic profit projections from a leading technology firm. This surge underscores Japan's robust stock market performance, echoing a period of significant economic growth. The Nikkei's ascent reflects investor confidence and the potential for future growth within the Japanese economy. Kyodo News, February 13
Indian police fire tear gas as protesting farmers march on Delhi. As farmers demanding better government support march towards New Delhi, Indian police deploy tear gas to disperse them. This confrontation underscores the ongoing agricultural discontent and the farmers' substantial political sway, especially with national elections looming. The protests spotlight the deep-rooted challenges within India's farming sector, reflecting broader societal and economic tensions. Al Jazeera, February 13
Uzbekistan: Fines doled out to polluters in rearguard action against dirty air. Uzbekistan has fined two major state-run power plants, Tashkent and Novo-Angren, approximately $160,000 for violating air quality standards and environmental regulations. This move comes as Uzbekistan confronts severe air pollution, with Tashkent being among the world's most polluted cities. The government is taking steps to address the issue, including upgrading emission control equipment and revising environmental laws to tackle pollution. Eurasianet, February 13
PH needs Cha-cha to 'keep in step' with competitors. Philippine lawmaker Stella Luz Quimbo stressed the need for Charter Change (Cha-cha) to boost the country's competitiveness globally. She argued that while Cha-cha is not a cure-all, it's crucial for economic reforms and keeping pace with advancements in other nations. This viewpoint underscores the ongoing debate on the importance of constitutional amendments for the Philippines' economic development and global standing. Ma. Reina Leanne Tolentino, The Manila Times, February 13
Laos Gears Up for First Digital Census in 2025. Laos is preparing for its first digital Population and Housing Census in 2025, aiming for high-quality data crucial for development planning. This initiative, supported by the Ministry of Planning and Investment and the UNFPA, highlights the significance of accurate data for monitoring Sustainable Development Goals and informing the 10th National Socio-Economic Development Plan. The census will utilize advanced technologies to survey around 1.4 million households, marking a significant step towards Laos's goal of achieving middle-income status by 2026. Chono Lapuekou, Laotian Times, February 13
Australia trade minister to ask China to lift barriers, query Wang sentence. Australia's Trade Minister Don Farrell plans to meet with his Chinese counterpart in Abu Dhabi, advocating for the removal of trade restrictions on Australian wine, lobsters, and meat at a WTO conference. Additionally, Farrell will address the suspended death sentence of Australian writer Yang Hengjun with China's Commerce Minister Wang Wentao, emphasizing the Australian government's dismay but hope for not derailing bilateral relations. Peter Hobson, Reuters, February 13
S. Korea vows 'overwhelming response' if N. Korea provokes. In response to North Korea's increasing tensions through new weapons tests, South Korea's military is prepared to respond "overwhelmingly" to any provocations. This comes after North Korea announced the development of a 240 mm-caliber controllable multiple rocket launcher shell. The South, in cooperation with the United States, is closely monitoring and analyzing North Korea's weapons advancements to maintain a robust defense posture. Kim Eun-jung, Yonhap News Agency, February 13
Long Form
Taiwan’s Semiconductor Talent Shortage. Taiwan's semiconductor industry, crucial for global tech, faces a significant talent shortage. Despite being a leader in chip manufacturing, the country struggles to fill engineering positions, impacting the entire supply chain. This challenge is compounded by a decreasing pool of STEM graduates and an aging population. To combat this, Taiwan is enhancing industry-academia collaboration and investing in talent development programs. However, global competition for semiconductor professionals further strains Taiwan's ability to maintain its competitive edge. Ray Wang, The Diplomat, February 14
Why Vietnam Cannot Copy the Philippines’ China Policy. Vietnam's strategic and geographical realities differ significantly from the Philippines, making it impractical for Hanoi to adopt Manila's assertive stance towards China. Unlike the Philippines, Vietnam shares a land border with China and has a complex history of land and maritime disputes with its northern neighbor. This geopolitical context necessitates a more nuanced approach by Vietnam, balancing its maritime sovereignty claims with the imperative of maintaining stable land border relations with China. Khang Vu, The Diplomat, February 14
Why Is China Stalling Out? Despite expectations for private sector growth, China faces economic challenges, including the fallout from Evergrande's collapse and high youth unemployment. Efforts to spur recovery post-zero-COVID measures have not met expectations, with declining consumer prices indicating weak domestic demand. These issues, alongside eroding private-sector confidence, threaten China's economic stability and growth. Catherine Tai & Renee Luo, Project Syndicate, February 14
Getting Vietnam’s economic growth back on track. Vietnam's economy, initially booming post-pandemic, faced a downturn in 2023 with exports declining and foreign investment slowing, notably Intel's paused expansion. Structural challenges like dependence on foreign firms, a nascent domestic private sector, and bureaucratic inefficiencies are hurdles. The government's efforts and anti-corruption measures show promise, but broader reforms in state-owned enterprises and regulatory frameworks are necessary to sustain growth and move up the manufacturing value chain. Suiwah Leung, East Asia Forum, February 14