Asia Daily: February 27, 2025
Trump says tariffs on Chinese imports will double to 20% and go into effect next week. U.S. President Donald Trump announced that tariffs on all Chinese imports will double to 20% starting March 4, citing China’s role in the fentanyl trade. Additional tariffs of 25% will be imposed on imports from Mexico and Canada unless they curb trafficking. The move raises fears of a global trade war, with China, Canada, and Mexico preparing retaliatory measures. Mark Magnier, South China Morning Post, February 27
North Korea's Kim orders nuclear readiness after missile test, KCNA says. North Korean leader Kim Jong Un supervised a strategic cruise missile test and ordered full nuclear attack readiness, emphasizing deterrence and national defense. The launch, conducted over the sea off the Korean Peninsula's west coast, was intended to counter perceived threats. South Korea’s military tracked the missiles and noted ongoing North Korean advancements in nuclear-capable cruise missiles. Jack Kim, Reuters, February 28
FBI accuses North Korea in $1.5B Bybit crypto theft. The FBI has accused North Korean-linked hackers of stealing $1.5 billion in ethereum from Dubai-based crypto exchange Bybit, marking one of the largest known cryptocurrency thefts. The hackers, identified as the Lazarus Group, allegedly used malware-laced trading applications to facilitate the attack. The stolen assets are being laundered across multiple blockchains. U.S. officials say North Korea uses such thefts to fund its nuclear program. Jon Gambrell, AP News, February 27
Japan's births fell to record low in 2024. Japan recorded 720,988 births in 2024, marking a ninth consecutive year of decline and a 5% drop from the previous year, despite government efforts to boost childbirth. With 1.62 million deaths, more than two people died for every new birth. The decline is attributed to fewer marriages, which fell sharply during the COVID-19 pandemic. Prime Minister Shigeru Ishiba emphasized the need to address this demographic challenge. Kiyoshi Takenaka, Reuters, February 27
Escudero firms up Sara Duterte trial preps, eyes start on July 30. Senate President Francis Escudero has initiated preparations for Vice President Sara Duterte’s impeachment trial, issuing a special order to set up the administrative support group. The trial is expected to begin by July 30, following the midterm elections and the swearing-in of new senators. Duterte faces charges including corruption and abuse of power. House prosecutors say the trial could conclude by June 30. Jeannette I. Andrade and Melvin Gascon, Philippine Daily Inquirer, February 28
Food running out for 100,000 Myanmar refugees after U.S. aid freeze. A U.S. aid freeze has left the Border Consortium (TBC) struggling to provide food for over 100,000 Myanmar refugees in Thai border camps, with funding set to run out by March’s end. The aid suspension, part of a broader 90-day freeze ordered by the Trump administration, has halted crucial U.S. funding. The International Rescue Committee (IRC) has received partial clearance to continue limited healthcare services. The Irrawaddy, February 27
Kazakhstan selects site for its first nuclear power station. Kazakhstan has chosen the village of Ulken, near Lake Balkhash, as the site for its first nuclear reactor, with construction set to begin after engineering surveys. The government plans to build three reactors to address energy shortages, with bids from Russia, China, France, and South Korea under review. A final decision is expected by the end of 2025, with U.S. firms potentially entering future tenders. Eurasianet, February 27
Nearly 60 pct support Yoon's impeachment over martial law declaration: poll. A Gallup poll shows that 59% of South Koreans support impeaching President Yoon Suk Yeol following his brief martial law declaration. Opposition party supporters overwhelmingly favor impeachment, while ruling party backers largely oppose it. The Constitutional Court is set to rule by mid-March, determining whether Yoon will be removed or reinstated. If ousted, a snap presidential election must be held within 60 days. Yi Wonju, Yonhap News Agency, February 28
LDP accountant's testimony on slush funds scandal leaves much in the dark. Former Liberal Democratic Party accountant Junichiro Matsumoto testified before Japan’s Lower House Budget Committee but failed to disclose key details about the slush funds scandal linked to a kickback scheme. While he admitted resuming the scheme in July 2022 under a now-former lawmaker’s orders, he did not name the individual. Matsumoto, who received a suspended prison sentence, claimed he had little choice but to comply. Gabriele Ninivaggi, The Japan Times, February 27
China amends military regulations to emphasise the need for war readiness. Beijing has updated military regulations for the People’s Liberation Army, prioritizing combat preparedness and overseas missions. The amendments, set to take effect in April, mandate that winning battles be the military’s top responsibility. The changes align with President Xi Jinping’s goal of military modernization by 2035. New provisions also enhance secrecy protocols, wartime management, and international deployment guidelines. Xinlu Liang, South China Morning Post, February 28
South Korea, U.S. finance chiefs discuss tariffs, investment, FX, says Seoul. South Korea’s acting President and Finance Minister Choi Sang-mok and U.S. Treasury Secretary Scott Bessent held talks on tariffs, investment, and foreign exchange policy. Choi urged Washington to consider South Korea’s economic contributions amid concerns over President Donald Trump’s proposed tariffs. South Korean officials recently sought exemptions from new U.S. trade measures, particularly on steel and aluminum. Reuters, Reuters, February 28
Important policies to be added to 14th National Party Congress’s draft documents. The Communist Party of Vietnam is finalizing key policies for the 14th National Party Congress, with General Secretary To Lam chairing a meeting in Hanoi to discuss economic growth, political restructuring, national defense, and anti-corruption measures. The draft documents will incorporate lessons from 40 years of Doi Moi and assess global trends affecting the country. Lam stressed the urgency of completing the proposals. Vietnam News, February 27
Sadyr Japarov criticizes European deputies for one-sided reports on Kyrgyzstan. Kyrgyz President Sadyr Japarov accused European Parliament deputies of biased reporting on human rights in Kyrgyzstan, particularly regarding cases against journalists and activists. He defended his administration’s actions, stating that courts operate independently and that some accused individuals were acquitted. Japarov reaffirmed the country’s commitment to democracy and human rights, while European officials expressed readiness for further dialogue. Anton Chipegin, The Times of Central Asia, February 27
N. Korea launched strategic cruise missiles this week to prove nuclear deterrence: KCNA. North Korea test-fired strategic cruise missiles on Wednesday, with leader Kim Jong-un overseeing the drills and emphasizing full nuclear force readiness. The missiles flew 1,587 kilometers before hitting their targets. Kim stated that nuclear capabilities ensure national defense and deterrence. South Korea’s military confirmed the launches and is analyzing the data with U.S. intelligence. Chae Yun-hwan, Yonhap News Agency, February 28
Opposition seeks probe into anti-graft body. Thailand’s opposition has petitioned House Speaker Wan Muhamad Noor Matha to investigate the National Anti-Corruption Commission (NACC) over its handling of high-profile cases, including a dropped probe into former Deputy PM Prawit Wongsuwon’s undeclared assets. Lawmakers also demand an inquiry into NACC President Suchart Trakulkasemsuk over alleged ethical breaches. The petition, backed by 144 MPs and a senator, includes 18 pieces of evidence. Aekarach Sattaburuth, Bangkok Post, February 27
China will not apologize for military drills off Australia's east, ambassador says. China’s ambassador to Australia, Xiao Qian, stated that Beijing has no reason to apologize for recent military drills in international waters between Australia and New Zealand, which forced 49 flights to change course. Australia and New Zealand raised concerns over inadequate prior notice, but Xiao defended the exercises as lawful. He suggested such operations will continue, while Australian officials debated the adequacy of their response. Renju Jose, Reuters, February 28
Canada’s trade tightrope with ASEAN needs flexibility. Canada is advancing its economic presence in Southeast Asia with the upcoming Canada–Indonesia Comprehensive Economic Partnership and ongoing negotiations for a regional free trade agreement with ASEAN. Unlike the European Union’s rigid approach, Canada is pursuing both bilateral and regional agreements simultaneously, but its Progressive Trade Agenda (PTA) poses challenges, particularly for less-developed ASEAN economies that may struggle with high standards in environmental protection, labor rights, and gender equality. To navigate this, Canada may need to adopt a flexible, RCEP-style model with differentiated liberalization schedules and concessions for sensitive sectors. This approach could include compensatory measures like capacity-building and financial support to avoid opposition from less-developed member states. Balancing progressive standards with economic realities will be crucial as Canada seeks preferential access to ASEAN markets while managing tensions with the protectionist Trump administration. Alan Bron, East Asia Forum, February 27
Cambodia struggles to harvest its agricultural potential while Vietnam reaps the benefits. Cambodia’s agricultural trade with Vietnam is growing, but the Kingdom remains dependent on exporting raw materials while importing higher-value goods, limiting its economic gains. Despite fertile land and favorable climate conditions, Cambodia struggles with low productivity due to outdated farming techniques, high production costs, and limited industrial capacity. Vietnam capitalizes on this by importing raw materials at low prices and exporting processed goods globally under its own branding. High electricity costs, inadequate infrastructure, and a lack of a specialized workforce further hinder Cambodia’s agro-processing industry. To enhance competitiveness and economic growth, Cambodia needs to invest in modern processing technology, lower logistics costs, and develop value-added industries. Expanding financial access and improving export strategies could reduce dependence on raw exports and strengthen its position in global trade. Mom Mit, Prom Thary, and Meas Somica, East Asia Forum, February 28
Kim Jong Un’s 20x10 Project Achieves Year One Successes. North Korea's 20x10 plan aims to modernize regional industry and diversify its production base by building factories in 20 cities each year for ten years. In its first year, new facilities producing food, clothing, and household goods opened across the country, contributing to economic development and improved living standards. Challenges include ensuring consistent raw material supply and maintaining product quality. Martyn Williams and Iliana Ragnone, 38 North, February 27
Expanding Mongolia’s Partnership With Japan and South Korea. Mongolia is strengthening ties with Japan and South Korea to increase economic growth, diversify trade, and secure critical minerals. The trilateral partnership aims to support Mongolia's renewable energy transition and industrial development while leveraging strategic resources. Closer collaboration is expected in supply chains, infrastructure, and advanced manufacturing, benefiting all three nations. Bolor Lkhaajav, The Diplomat, February 27
Envisioning a Low-Carbon Future: Sarawak’s Journey Towards Sustainable Development. Sarawak is advancing sustainable development through its Post-COVID-19 Development Strategy (PCDS 2030), focusing on economic growth, environmental sustainability, and social inclusivity. The state is scaling up renewable energy, including hydropower, solar-hydro hybrid systems, and hydrogen production, while implementing carbon capture technologies to decarbonize industries. Partnerships with Japan, South Korea, and China are improving its green hydrogen supply chain. These initiatives aim to position Sarawak as a green energy powerhouse in ASEAN. Datuk Patinggi Abang Johari Openg, Fulcrum, February 28