Asia Daily: February 7, 2024
News
Beijing tells Guatemala to break ties with Taiwan as soon as possible if it wants trading relationship. Guatemala, seeking a trading relationship with China, faces pressure from Beijing to sever diplomatic ties with Taiwan. China's insistence on the one-China principle underscores its diplomatic strategy, urging Guatemala to decide in favor of establishing relations with Beijing. This scenario highlights China's growing economic influence in Latin America and the geopolitical tensions surrounding Taiwan's diplomatic relationships. Liu Zhen, South China Morning Post, February 6
Japan minister admits receiving Unification Church group's backing. Education Minister Masahito Moriyama has come forward about receiving campaign support from a group linked to the Unification Church in his 2021 election bid. This acknowledgment adds to the ongoing examination of the church's political ties in Japan, spotlighting its controversial influence and interactions with the country's lawmakers. The issue has ignited debates on political ethics and transparency. Kyodo News, February 6
‘Show our swords’: Beijing must harden its stance against rival challenges in the South China Sea, expert says. According to a Chinese maritime authority, Beijing should intensify its approach in the South China Sea amidst increasing territorial disputes. This call for a tougher stance reflects escalating tensions and the strategic importance of the region to China's geopolitical ambitions. The advice comes amid growing confrontations, particularly with the Philippines, highlighting the region's complex sovereignty issues. Laura Zhou, South China Morning Post, February 6
Chinese coast guard vessels enter disputed waters in East China Sea. China's Coast Guard announced its patrols in the waters of the Diaoyu Islands on Tuesday, territories in the East China Sea contested by China, Japan, and Taiwan. Japan's Coast Guard issued statements repeatedly urging four Chinese vessels to depart "our territorial waters," known as the Senkaku Islands in Japan. The Chinese vessels eventually left the waters within two hours, heading northward. This incident follows a similar occurrence on January 27 when Chinese coastguard vessels last entered the disputed waters. Satoshi Sugiyama, Reuters, February 6
Vietnamese, Lao, Cambodian delegations at UN headquarters strengthen ties. The permanent representatives of Laos and Cambodia to the United Nations extended Lunar New Year greetings to their Vietnamese counterpart, highlighting the special cooperation and friendship among the countries. They discussed enhancing coordination and cooperation at the UN, reflecting a commitment to solidify regional solidarity and support. This encounter underscores the ongoing efforts to strengthen ties and mutual support among the ASEAN nations on the global stage. Vietnam News, February 6
Japan, Italy PMs agree to join hands for success of G7 summit. Japanese Prime Minister Fumio Kishida and Italian Prime Minister Giorgia Meloni committed to collaboration for the G7 summit's success, emphasizing support for Ukraine and concerns over China's regional assertiveness. The alliance aims to build on the positive outcomes of the last summit. Kyodo News, February 6
S. Korea, Qatar sign MOU to boost defense cooperation. South Korea and Qatar have signed an initial agreement to strengthen bilateral defense cooperation during talks between their defense chiefs. The memorandum of understanding (MOU) includes plans for regular defense ministerial talks and efforts to establish an institutional framework for defense cooperation. The agreement also entails strengthening cooperation across various defense sectors, such as increasing exchanges between defense-related institutions and expanding joint exercises. Chae Yun-hwan, Yonhap News Agency, February 7
China on PH cyber attack claims: ‘Highly irresponsible’. China has denounced as "highly irresponsible" allegations from the Philippines regarding cyberattacks, emphasizing its commitment to combatting such illegal activities. This response follows Manila's claims of Chinese hackers attempting to breach government websites, including that of President Ferdinand Marcos Jr. The exchange underscores ongoing tensions between the two nations amid cybersecurity concerns. Bernadette E. Tamayo, The Manila Times, February 6
Kazakhstan: Tokayev appoints former anti-graft attack dog as PM. Kazakhstan's President Kassym-Jomart Tokayev has appointed Olzhas Bektenov, known for his anti-corruption efforts, as the new Prime Minister. This decision follows the resignation of the previous government led by Alikhan Smailov. Bektenov's appointment is seen as a move to address economic reforms and anti-corruption measures. Almaz Kumenov, Eurasianet, February 6
Move Forward: Pita's PM candidacy intact. Pita Limjaroenrat's bid for Thailand's prime ministership remains unaffected by his recent legal challenges, as confirmed by the Move Forward Party. The party emphasizes that Pita's eligibility continues as he appeals his sentence, maintaining his political rights under the constitution. This development underscores the party's support for Pita amid ongoing legal proceedings. Bangkok Post, February 6
Germany and Mongolia enter into strategic partnership. Germany and Mongolia are set to establish a strategic partnership to collaborate closely on various policy areas, including the mining industry, according to a draft document obtained by Reuters. The agreement, scheduled to be signed during Germany's President Frank-Walter Steinmeier's visit to Ulaanbaatar, aims to strengthen ties between the two countries. The partnership is also commemorating 50 years of diplomatic relations between Germany and Mongolia. Andreas Rinke and Emma-Victoria Farr, Reuters, February 7
Kyrgyzstan, Tajikistan reach 90 percent agreement on border. Kyrgyzstan and Tajikistan have achieved a landmark agreement on 90 percent of their border, marking a crucial step towards resolving disputes that have occasionally led to clashes. This progress is expected to foster stability and strengthen relations between the two Central Asian neighbors, highlighting a commitment to peaceful resolution of issues. The agreement is a significant move towards finalizing border demarcation efforts that have been ongoing for years. Eurasianet, February 6
President Welcomes Four New Ambassadors to Laos. Lao President Thongloun Sisoulith recently greeted new ambassadors from Australia, Timor Leste, the United States, and Myanmar, signaling a commitment to strengthen international relations. This diplomatic engagement underscores Laos's focus on fostering cooperation, especially with its ASEAN chairmanship role this year. Namfon Chanthavong, The Laotian Times, February 6
Long Form
Why Vietnam Agreed to Supply the Philippines with Rice For Five Years. In a significant move towards Southeast Asian solidarity and regional self-sufficiency, Vietnam has committed to supplying the Philippines with 1.5 to 2 million metric tons of rice annually at a competitive price for the next five years. This agreement, signed by President Ferdinand Marcos Jr. of the Philippines during his visit to Vietnam, is a strategic response to the challenges posed by climate change and geopolitical tensions affecting global food security. The Philippines, not self-sufficient in rice production, faces increased vulnerability due to erratic weather patterns like El Niño, which disrupts local production and necessitates reliance on imports. The memorandum of understanding with Vietnam ensures a stable rice supply, mitigating the risks of market volatility and export bans from other major producers. This deal exemplifies the potential of ASEAN in facilitating cooperative solutions to ensure access to essential commodities, highlighting the importance of regional partnerships in addressing the complexities of food security in an era of climate uncertainty and shifting geopolitical landscapes. James Guild, The Diplomat, February 7
How China’s EVs are Taking Thailand by Storm. Chinese electric vehicles (EVs) are dominating the Southeast Asian market, particularly in Thailand, where they hold about 80% market share. This success is largely due to comprehensive localization strategies, including partnerships with local conglomerates and the establishment of production facilities within Thailand. Companies like BYD, Neta, and MG have become household names by offering affordable, innovative, and high-quality EVs. The political consensus in Thailand regarding the transition to EVs, supported by both the government and opposition parties, has facilitated the entry and expansion of Chinese EV companies. This alignment, along with favorable policies and incentives, underscores the importance of political and economic strategies in foreign market success. The case of Chinese EVs in Thailand exemplifies how localization and political consensus can drive the success of foreign investments in strategic industries. Li Xirui, The Diplomat, February 7
To Affirm U.S. Openness, Washington Should Approve U.S. Steel Sale. The proposed $14.9 billion takeover of United States Steel by Nippon Steel, Japan's largest steelmaker, has sparked controversy in the U.S., despite Japan being one of Washington's closest allies. The deal, seen through a political lens amid election campaigns, actually reflects broader principles of open economic engagement and legal considerations of foreign direct investment. Historically, the U.S. has scrutinized foreign investments, especially from strategic competitors, but Japan, sharing similar values and posing no threat to U.S. national security, represents a different case. The acquisition could bolster U.S. Steel through technological advancements and global market positioning, benefiting stakeholders including employees and local communities. Approval of the deal by Washington would signal a commitment to maintaining an open investment environment, crucial for international economic relations and the strategic alliance between the U.S. and Japan. Rikako Watai, Nikkei Asia, February 7
Save the Day: How Young Chinese Are Role-Playing Their Way to Wealth. Amid rising living expenses, young Chinese are transforming money management into a creative role-playing game on social media, where crafting and sharing imaginative stories becomes a method to inspire better saving habits. This innovative approach to savings, ranging from pretending to be pregnant to adopting fictional personas from popular culture, has not only captivated followers but also effectively encouraged participants to set aside money. By engaging in this gamified saving, individuals like Ding Juanjuan have managed to deposit significant amounts into their digital wallets, demonstrating the power of narrative in financial discipline. The trend reflects a broader shift towards financial prudence among young Chinese, who are increasingly seeking traditional investments and savings accounts as a safeguard against economic uncertainties. Huang Yang and Ye Zhanhang, Sixth Tone, February 7
Where Is China’s Climate Financing Headed? Amid global discussions on climate financing, China emerges as a significant contributor, allocating $2.8 billion in 2020 and pledging over $100 billion to Belt and Road Initiative (BRI) projects with a focus on green development. China's approach includes bundling smaller renewable projects to spread risk and boost investor confidence, as seen in the China-Africa Renewable Energy Innovation Cooperation program. Additionally, private Chinese firms, particularly in the solar industry, are increasingly involved in overseas funding, bringing flexibility and innovation to smaller-scale energy solutions. China is also shifting focus towards off-grid renewable energy projects in developing regions, addressing both energy and economic needs by investing in solar-powered agricultural technologies and infrastructure. This strategic direction not only underscores China's commitment to green development but also highlights the evolving landscape of global climate finance. Wu Yixiu, Sixth Tone, February 6
Infrastructure Diplomacy the Key to China’s Influence in Africa. China's strategic gifting of high-profile infrastructure projects, such as parliament buildings and the Africa Centres for Disease Control and Prevention headquarters, underscores its deepening diplomatic engagement in Africa. These gifts, symbolizing China's commitment to modernization and progress, serve as powerful tools for influencing global perceptions and enhancing China's international prestige. Unlike traditional aid, which emphasizes a donor-recipient binary, China frames its contributions as partnerships, aiming to foster a positive image and mutual respect. The grandiosity of these projects not only showcases China's capabilities but also embeds a narrative of shared aspirations and development, reinforcing China's role as a global player capable of shaping landscapes and leaving an indelible mark on the African continent. Hema Narang, East Asia Forum, February 7