Asia Daily: February 24, 2025
Xi Jinping and Vladimir Putin pledge ‘long-term’ ties amid warming in U.S.-Russia relations. Chinese President Xi Jinping and Russian President Vladimir Putin reaffirmed strategic ties in a phone call on the third anniversary of Russia’s Ukraine invasion. Putin briefed Xi on Moscow’s improving ties with Washington, while Xi expressed support for diplomacy between Russia and the U.S. China and Russia also confirmed upcoming state visits, with Xi expected in Moscow for World War II commemorations in May. Amber Wang, South China Morning Post, February 24
N. Korean party delegation visits Moscow: KCNA. A high-ranking North Korean Workers' Party delegation, led by Politburo member Ri Hi-yong, arrived in Moscow at the invitation of Russia’s ruling United Russia Party. The visit follows last year’s mutual defense treaty between the two nations and coincides with American-led negotiations to end Russia’s war in Ukraine, where North Korea has sent troops. Park Boram, Yonhap News Agency, February 25
Bangladesh and Pakistan resume direct trade after more than 50 years. Bangladesh has restarted direct trade with Pakistan for the first time since its independence in 1971, with an initial shipment of 50,000 tonnes of rice from Port Qasim under a government-to-government deal. Bangladesh is purchasing Pakistani white rice at $499 per ton, higher than Vietnamese imports at $474.25. The move follows improved diplomatic ties under interim Prime Minister Muhammad Yunus. Bangladesh is also increasing rice imports to stabilize domestic prices. Reuters, February 24
Japan, Philippines OK strategic talks between forces amid China rise. Japanese Defense Minister Gen Nakatani and Philippine counterpart Gilberto Teodoro agreed to establish a strategic dialogue between their armed forces to enhance defense cooperation. Japan will send Defense Ministry officials and industry representatives to Manila, expand military technology exchanges, and provide coastal surveillance radars. Talks on an intelligence-sharing pact will begin soon. Kyodo News, February 24
Yoon’s last chance to accept the verdict and apologize. President Yoon Suk Yeol will personally deliver his closing arguments at the Constitutional Court on Tuesday, marking the first time a sitting South Korean president has done so. Held in detention, Yoon prepared his statement by hand, rejecting speculation that he would propose a shortened presidential term. The National Assembly argues his martial law declaration was unconstitutional, while Yoon claims opposition-imposed budget cuts created a national emergency. Hyung-jun Hwang, The Dong-A Ilbo, February 25
Russian economic delegation signs raft of agreements with Myanmar junta. A Russian delegation led by Minister of Economic Development Maxim Reshetnikov signed nine agreements with Myanmar’s military government, including investments in the Dawei Special Economic Zone. Talks focused on energy cooperation, banking, education, and telecommunications. Russian firms pledged support for Myanmar’s power sector, including hydro, solar, and thermal energy projects. Maung Kavi, The Irrawaddy, February 24
China holds live-fire exercises in Gulf of Tonkin after Vietnam marks its territorial claims. China conducted live-fire drills in the Beibu Gulf, days after Vietnam announced a new baseline to define its territorial waters under the U.N. Convention on the Law of the Sea. The exercises, which lasted six hours, come amid rising maritime tensions. Hanoi has not officially responded, but analysts say Vietnam’s move signals growing resistance to Beijing’s expansive claims in the South China Sea. David Rising, AP News, February 24
Singapore's smaller opposition parties stake early claim to wards ahead of General Election. Fringe political parties in Singapore have begun identifying constituencies they wish to contest, despite ongoing electoral boundary revisions. With the opposition field consolidating, alliances such as The Coalition and the People’s Alliance for Reform have formed to avoid multi-cornered fights. However, overlapping claims remain in key constituencies. Fabian Koh, Abigail Ng, Charmaine Jacob, and Davina Tham, Channel News Asia, February 24
Palace dismisses ex-Pres. Duterte’s stolen gold claim. The Philippine government dismissed former President Rodrigo Duterte’s allegation that the Marcos administration has been stealing and selling the country’s gold reserves. Presidential Communications Undersecretary Claire Castro called the claim a “campaign joke” but said it would still be addressed to prevent misinformation. The Bangko Sentral ng Pilipinas reaffirmed that the country’s gold reserves are strictly for foreign exchange needs and remain intact. Luisa Cabato, Philippine Daily Inquirer, February 24
Chinese navy drill in Tasman Sea forced 49 flights to change paths, Australian official says. A Virgin Australia pilot alerted Australian authorities to a Chinese naval live-fire drill in the Tasman Sea, forcing 49 commercial flights to reroute. Airlines including Qantas, Emirates, and Air New Zealand were affected. Australian officials criticized China for inadequate notice, while Beijing insisted it had issued safety warnings in compliance with international law. The Chinese task force is currently east of Tasmania. Renju Jose and Lucy Craymer, Reuters, February 24
Wisut sees meet as path to resolve rift. Thailand’s chief government whip Wisut Chainarun welcomed reports that Thaksin Shinawatra and Newin Chidchob met to address tensions between the ruling Pheu Thai and Bhumjaithai parties. Prime Minister Paetongtarn Shinawatra and Deputy Prime Minister Anutin Charnvirakul reportedly attended the meeting, ahead of a broader coalition dinner. Wisut downplayed rift concerns, dismissing speculation that Bhumjaithai could leave the coalition. Aekarach Sattaburuth, Bangkok Post, February 25
Chinese fishing vessels used North Korean crews in breach of UN bans, a report says. The Environmental Justice Foundation found that Chinese tuna long-liners in the Indian Ocean employed North Korean crews between 2019 and 2024, violating UN sanctions. Many North Koreans were forced to work at sea for up to 10 years without setting foot on land. China denied wrongdoing, claiming its fishing operations follow international law. The report raises concerns over forced labor and illegal supply chains. Hyung-jin Kim, AP News, February 24
India, Britain step up trade talks amid Trump tariff threats. India and Britain resumed negotiations on a free trade agreement and investment treaty, aiming to more than double bilateral trade within a decade. Talks were restarted following discussions between their prime ministers at the G20 summit. Key hurdles include India's high tariffs on British whisky and visa access for Indian professionals. Britain also seeks market access for dairy products, while India pushes for tariff reductions. Manoj Kumar, Shivangi Acharya and Sarita Chaganti Singh, Reuters, February 24
Uzbekistan applies for UN Security Council membership for 2035-2036. Uzbekistan has formally announced its bid for a non-permanent seat on the United Nations Security Council, aiming to enhance its global diplomatic role. Officials highlighted Uzbekistan’s commitment to regional security, Afghanistan’s economic recovery, and environmental sustainability. Tashkent also plans to host the UN Public Services Forum in June 2025. Sadokat Jalolova, The Times of Central Asia, February 24
China offers ‘stable, constructive’ partnership with Germany after Friedrich Merz’s election win. China expressed its desire to strengthen ties with Germany following Friedrich Merz’s victory in the Bundestag election. Beijing emphasized Germany’s role in global affairs and European integration amid uncertainty over U.S. policies under Donald Trump. Merz, a NATO supporter, aims to boost European independence from the U.S. Analysts suggest Germany may take a balanced approach to China while prioritizing economic security and de-risking strategies. Alyssa Chen, South China Morning Post, February 24
Top U.S. general in Asia-Pacific visits Cambodia to boost relations. U.S. Army Pacific Commander Gen. Ronald P. Clark visited Cambodia for talks with military officials, marking the latest effort to mend strained ties. Clark met with Cambodian military chief Gen. Mao Sophan to discuss security cooperation, counterterrorism, and the possible resumption of joint exercises. The visit comes amid U.S. concerns over China’s growing influence, particularly at Cambodia’s Ream Naval Base. Sopheng Cheang, AP News, February 24
Japan main opposition aims to break ruling party majority in election. The Constitutional Democratic Party of Japan (CDPJ) pledged to block the ruling coalition from securing a majority in the upcoming House of Councillors election, setting the stage for a potential government change. Party leader Yoshihiko Noda vowed to challenge the Liberal Democratic Party and Komeito while advocating policies such as banning corporate donations and freezing healthcare cost hikes. Kyodo News, February 24
Vietnam and Thailand aim to boost bilateral trade to $25 billion. Vietnam and Thailand agreed to strengthen trade ties, expand market access, and work toward a $25 billion trade target. During talks in Hanoi, Deputy Prime Minister Bùi Thanh Sơn and Thai Foreign Minister Maris Sangiampongsa pledged to deepen economic cooperation, improve transportation links, and enhance tourism under Thailand’s "Six Countries, One Destination" initiative. Both sides also emphasized defense collaboration and maintaining regional stability in the South China Sea. Vietnam News, February 24
Strong reactions to a weak yen shake Japan’s economy. Japan’s real effective exchange rate is at its lowest in 54 years, impacting import costs, debt repayment, and trade balances. The Bank of Japan cautiously tightened monetary policy, raising interest rates to 0.5 per cent in January 2025, influencing currency appreciation and stock market fluctuations. Despite wage increases, real disposable income stagnated, curbing consumption growth. The weak yen raised household expenses by 90,000 yen in 2024, prompting stimulus measures from Prime Minister Shigeru Ishiba. However, these policies, combined with rising debt service costs, risk expanding budget deficits. While a depreciated yen boosts repatriated profits and tourism, it minimally aids exports due to past factory relocations. Japan’s economic resilience is bolstered by high-quality niche products and global demand, yet challenges persist with high energy costs, geopolitical tensions, and demographic issues. Willem Thorbecke, East Asia Forum, February 24.
ASEAN adapts and advances as global politics shift. ASEAN enters 2025 under Malaysian leadership with robust economic growth, strong foreign investment, and strategic agility amidst intensified US-China competition and global political uncertainties. The region benefits from diversified investments as companies relocate to avoid US tariffs. ASEAN maintains strategic autonomy by balancing ties with major powers, exemplified by Indonesia’s BRICS membership alongside its pursuit of OECD entry. However, risks include potential US tariffs on ASEAN exports and challenges to China-ASEAN trade. Anthony Milner, East Asia Forum, February 25.
The iPhone, the IMF, and China’s Balance of Payments. China's balance of payments data shows discrepancies between its customs trade surplus and its formal current account surplus, raising questions about its reporting methods. Although China reports a $1 trillion customs goods surplus, this figure shrinks to a $400 billion current account surplus due to questionable adjustments. Brad W. Setser, Council on Foreign Relations, February 24.
What does Xi’s meeting with entrepreneurs mean for the private sector? Chinese President Xi Jinping's meeting with top private sector leaders aimed to restore confidence amid weak domestic demand and declining profits. Although the event signaled a pro-business stance, analysts are divided on its impact. Some view it as a positive shift in policy, while others see it as insufficient without broader fiscal expansion to stimulate demand. The meeting follows China's ongoing struggle to balance confidence-building with structural economic challenges. Michael Pettis, Carnegie Endowment for International Peace, February 24.
Why China’s New ‘Special Barges’ Are a Worrying Sign for Taiwan. China’s development of special barges improves its amphibious landing capabilities, enabling multi-point assaults that bypass Taiwan's traditional coastal defenses. These barges are part of China’s civil-military fusion strategy, allowing rapid deployment of heavy equipment onto less-defended shorelines. Their use of extendable bridges and stabilizing technology increases flexibility in potential military operations, complicating Taiwan’s defense planning. Jhih-Siang Liu and Yuan-Chou Jing, The Diplomat, February 24.
Doing More for Victims of Forced Criminality in Southeast Asia. Forced criminality is rising in Southeast Asia, with victims trafficked into scam operations by cyber syndicates. Governments can improve protection by boosting detection, rescue, and post-rescue support, working alongside NGOs. Regional cooperation, improved victim assistance, and public awareness campaigns are crucial to addressing this issue effectively. Brandon Tan Jun Wen, Fulcrum, February 25.
New ASEAN Power Grid Agreement Must Reflect New Needs. The successor to ASEAN's Power Grid Memorandum of Understanding must address emerging challenges by establishing a regional energy institution, developing a regional renewable energy certificate market, and creating a transparent wheeling charge system. These measures aim to increase energy integration, attract investment, and support decarbonization efforts across Southeast Asia. Mirza Sadaqat Huda, Fulcrum, February 24.