Asia Daily: February 6, 2024
News
China’s top prosecutors promise financial crime crackdown is about to ramp up. Beijing is intensifying its efforts against financial crimes, targeting illegal fundraising, loan fraud, money laundering, and market manipulation among others. This crackdown, led by the Supreme People’s Procuratorate, aims to bolster high-quality financial development and secure economic and financial stability. The move aligns with President Xi Jinping's emphasis on rigorous financial regulation and corruption prevention to manage systemic financial risks. Vanessa Cai, South China Morning Post, February 5
Japan to make "appropriate responses" to North Korea's quake message. Prime Minister Fumio Kishida announced Japan's intention to respond aptly to North Korean leader Kim Jong Un's message of sympathy for the recent earthquake in the Noto Peninsula. Kishida's statement, emphasizing Japan's readiness to engage in high-level negotiations with North Korea, particularly on the issue of abductions, marks a rare moment of interaction between the two nations that lack diplomatic relations.Kyodo News, February 5
Uzbekistan: Imprisoned citizen journalist gets early release. Otabek Sattoriy, a citizen journalist in Uzbekistan, was released early after a court commuted his sentence to correctional labor. Originally sentenced in 2021 for extortion and libel, Sattoriy's case drew international attention and was seen as a significant issue for freedom of speech within the country. His release marks a notable moment in Uzbekistan's handling of press and expression rights. Eurasianet, February 5
Singapore's relations with China not affected over congratulations to Taiwan's Lai: MFA. Following Singapore's congratulations to Taiwan's William Lai on his election victory, China issued "solemn demarches" but this has not impacted the strong bilateral relations between Singapore and China, according to Foreign Affairs Minister Vivian Balakrishnan. Singapore maintains its "One China" policy and the incident has not affected ongoing engagements with China. Channel News Asia, February 5
Kazakhstan’s president dismisses his Cabinet. President Kassym-Jomart Tokayev of Kazakhstan has dismissed his Cabinet, criticizing its performance, particularly for failing to control inflation and improve infrastructure. Prime Minister Alikhan Smailov was replaced by his deputy, Roman Sklyar, as the acting premier. The changes follow violent protests in January 2022, highlighting significant political moves within the country's leadership. AP News, February 5
Senate kicks off Cha-cha hearings. The Philippine Senate has initiated hearings on Charter Change (Cha-cha), focusing on amending the Constitution's economic provisions to attract more foreign investments. Led by Senator Juan Edgardo "Sonny" Angara, the sessions aim to explore the impacts of such amendments on the country's economy. This move is part of a broader initiative to liberalize the economy by easing restrictions on foreign ownership in certain industries. Bernadette E. Tamayo and Ma. Reina Leanne Tolentino, The Manila Times, February 5
China says it opposes and cracks down on all forms of cyberattacks. China asserts its strong opposition to cyberattacks, emphasizing its commitment to not tolerate such actions within its infrastructure. This statement came after the Philippines reported attempted hacks into government sites, highlighting ongoing cybersecurity concerns. The Chinese government promotes a strict stance against cyber illegality, reinforcing international dialogues on cybersecurity measures. Neil Jerome Morales, Reuters, February 5
Classified Japanese diplomatic info leaked after Chinese cyberattacks. Classified diplomatic information from Japan was exposed following Chinese cyberattacks on its Foreign Ministry in 2020, highlighting vulnerabilities in the nation's cybersecurity defenses. The leaks occurred during Shinzo Abe's tenure, with the content of the telegrams still undisclosed. Japan and the U.S. have since discussed countermeasures, amidst concerns over Japan's cybersecurity readiness compared to other developed countries. Kyodo News, Kyodo News, February 5
Thai former PM hopeful hit with more legal trouble. In Thailand, former prime ministerial candidate Pita Limjaroenrat and others received suspended sentences for an illegal 2019 rally, compounding the Move Forward Party's challenges amid accusations of undermining the monarchy. The party's progressive stance has faced significant resistance, reflecting the country's deep political divides. Panu Wongcha-um and Panarat Thepgumpanat, Reuters, February 5
Vietnamese, Chinese coast guard forces hold joint patrol. On February 5, Vietnamese and Chinese coast guard forces conducted a joint patrol along the maritime border area between Mong Cai City, Quảng Ninh province, and Dongxing city, Guangxi province. This initiative aims to enhance coordination against criminal activities and ensure security ahead of the Lunar New Year. It marks the beginning of quarterly joint patrols to strengthen security and foster friendly relations between the two nations. Vietnam News, February 5
Afghanistan clears electricity debts to Tajikistan. Afghanistan has settled its outstanding electricity bills with Tajikistan, according to Daler Juma, Tajikistan's Energy and Water Resources Minister. Despite previous reliability issues, this payment marks a step towards improved economic cooperation between the two countries, even as political tensions persist. The agreement also includes plans for future energy supplies and infrastructure projects, indicating a continued partnership in the energy sector. Eurasianet, February 5
Singapore passes law to hold 'dangerous offenders' beyond prison terms. Singapore has enacted legislation allowing for the indefinite detention of "dangerous offenders" after their prison sentences end, targeting those convicted of severe crimes and deemed likely to reoffend. This move, part of efforts to enhance public safety, involves a review process by a board of experts for decisions on release, affecting an estimated fewer than 30 offenders annually. Xinghui Kok, Reuters, February 5
Long Form
Thailand’s New Government Rebalances Its Relationship With China. In a strategic move to diversify its foreign policy while maintaining warm relations with Beijing, Thailand's new Prime Minister Srettha Thavisin has introduced measures to enhance the country's tourism sector, a vital component of its economy. A notable initiative is the waiving of visa requirements for Chinese tourists, a policy signed into effect by Chinese Foreign Minister Wang Yi and Thai counterpart Parnpree Bahiddha-Nukara. This decision underscores the significance of Chinese visitors, who, before the pandemic in 2019, contributed massively to Thailand's record international arrivals, highlighting the tourism industry's substantial contribution to the national GDP. This policy shift reflects Thailand's broader strategy to balance its economic dependencies and strengthen its position in the global arena. Tommy Walker, The Diplomat, February 6
China-US Relations: Ping-Pong Diplomacy 2.0. In a modern revival of the iconic Ping-Pong Diplomacy of the early 1970s, a delegation of 12 American college students recently traveled to China to engage in ping-pong matches, symbolizing a fresh attempt at bolstering people-to-people diplomacy between Beijing and Washington. This initiative, reminiscent of the accidental bus encounter between American player Glenn Cowan and Chinese player Zhuang Zedong during the 1971 World Table Tennis Championships, aims to rekindle the spirit of friendship and mutual understanding through the universal language of sports. By pairing players from the University of Virginia (UVA) and Fudan University in doubles matches, this event not only celebrates the historical ties forged by ping-pong but also underscores the ongoing efforts to navigate the complex dynamics of China-US relations through cultural and educational exchanges. Shannon Tiezzi, The Diplomat, February 5
Cambodia Looks to the Future By Luring Back Western Investors. In a strategic pivot, Cambodia's government, under the leadership of Prime Minister Hun Manet, is actively seeking to rekindle relationships with Western countries and investors. This initiative comes after years of increasing Chinese investment and a period marked by political crackdowns and diminishing press freedom, which began in 2016. The International Monetary Fund (IMF) has highlighted significant downside risks for Cambodia, particularly as the country experiences a decline in its corruption index. The Cambodian government's outreach includes engaging countries such as the United States, Australia, Japan, France, and Germany with a series of press releases and media stories emphasizing strategic partnerships, along with calls for aid, investment, and tourism. This diplomatic charm offensive aims to diversify Cambodia's economic and political alliances and restore the Western goodwill that was eroded over the past years. Luke Hunt, The Diplomat, February 6
Toyota Invests in TSMC's Second Chip Plant in Japan. Toyota Motor is set to invest in a TSMC subsidiary for the construction of a second semiconductor plant in Kumamoto, Japan, joining forces with Sony and Denso. This strategic investment aims to bolster Japan's semiconductor production capabilities, focusing on advanced 6-nanometer chips. The initiative is part of Japan's push to revitalize its chip industry, with the government providing significant support. The move underscores Toyota's commitment to ensuring a stable supply of critical components for its future automotive technologies. Wataru Suzuki, Nikkei Asia, February 6
Japan's Hydrogen Leadership Challenged by Global Competitors. Japan's early lead in hydrogen technology is at risk as the EU, U.S., China, and South Korea advance rapidly in commercializing this clean energy source. Despite pioneering hydrogen development 50 years ago and setting a national strategy in 2017, Japan faces potential overtaking due to slower policy implementation and commercialization efforts. The global clean hydrogen market, crucial for decarbonization, is expected to grow significantly, with Japan needing to accelerate its strategies to maintain its competitive edge. Sayumi Take, Nikkei Asia, February 6
Why China Can't Export Its Surveillance Model. Over the last two decades, China has developed a sophisticated surveillance system that combines advanced technology with an extensive network of informers, crucial for the CCP's control. Despite its domestic effectiveness, the system's reliance on a vast informant network and technological integration makes it uniquely tailored to China's political and social structure, rendering it difficult to replicate abroad. Economic challenges further complicate the sustainability of this surveillance model. With China facing economic headwinds, the cost of maintaining and upgrading technology, alongside compensating informers, becomes increasingly burdensome. This economic strain may force the CCP to adapt its approach, potentially leading to softer or, if necessary, harsher measures to maintain control, highlighting the system's inherent limitations and its non-exportability due to its deep integration with China's unique context. Minxi Pei, Foreign Affairs, February 6