Asia Daily: January 18, 2024
News
China, Philippines seek better communication, management of conflicts in South China Sea. China and the Philippines have agreed to enhance maritime communication and manage conflicts in the South China Sea through friendly talks, as stated in a joint statement by their foreign ministries. This agreement was reached at the eighth China-Philippines Bilateral Consultation Mechanism on the South China Sea, co-chaired by China's Assistant Foreign Minister Nong Rong and Philippine Undersecretary Theresa Lazaro. The discussions emphasized that the South China Sea dispute is not central to bilateral relations and focused on maintaining peace and stability in the region. Bernard Orr and Karen Lema, Reuters, January 17
Japanese lawmaker Kakizawa indicted over violation of election law. Japanese lawmaker Mito Kakizawa, formerly a senior vice justice minister and member of the ruling Liberal Democratic Party, has been indicted for alleged illegal campaign financing related to a Tokyo ward election. Kakizawa, along with four secretaries, is accused of bribing with 2.8 million yen in connection with the Koto Ward mayoral election. This indictment could heighten public distrust in politics, impacting Prime Minister Fumio Kishida's government, already shaken by a separate political funds scandal. Kakizawa has expressed intent to resign as a lawmaker, while two of his secretaries face fines and the other two were not indicted. Kyodo News, January 17
A Singapore minister is charged with corruption, accused of taking tickets to F1 races and musicals. S. Iswaran, Singapore's Transport Minister, faces charges in a landmark corruption case, marking the first such instance against a minister in the country known for its clean governance. The Corrupt Practices Investigation Bureau has charged Iswaran with 27 counts, including corruption, receiving gifts as a public servant, and obstructing justice. This case is a significant blow to the People’s Action Party, renowned for its integrity, with the last investigation of a cabinet minister for graft occurring in 1986. Eileen Ng, AP News, January 17
Beijing’s top spy agency accuses Taiwan of pushing ‘election interference’ rumours, vows to fight separatism. Beijing's Ministry of State Security has accused Taiwan of exaggerating 'election interference' claims following the island's presidential election, won by independence-leaning candidate William Lai. The Ministry pledges to combat 'Taiwan independence' and external interference, asserting the elections cannot halt the trend towards reunification. This stance follows Taiwan's intelligence agency's alleged acts as 'thugs for separatist forces,' according to Beijing. Amidst heightened tensions, the People’s Liberation Army maintained regular military activities near Taiwan. Phoebe Zhang, South China Morning Post, January 17
Kyrgyzstan: Raids on independent media spark outcry. In Kyrgyzstan, authorities' raids on independent media outlets have led to a significant outcry from the media community and international organizations. The most recent target was Temirov Live, a YouTube channel run by investigative reporter Bolot Temirov. The Interior Ministry accuses the channel of discrediting state institutions, potentially inciting unrest. Over 160 pieces of equipment were seized, and 11 individuals, including Temirov's wife, were arrested. The UN High Commissioner for Human Rights and other international advocacy groups have condemned these actions, urging Kyrgyzstan to align with its international obligations regarding press freedom. Ayzirek Imanaliyeva, Eurasianet, January 17
PM busy with bilateral meetings on WEF-54 sidelines in Davos. Vietnamese Prime Minister Phạm Minh ChÃnh engaged in various bilateral meetings with leaders from Cambodia, Slovakia, and several international organizations on January 17 at the World Economic Forum in Davos. His discussions included enhancing transport connections with Cambodia and addressing shared border issues, as well as thanking Slovakia for its support in various fields including COVID-19 vaccine donations. Vietnam News, January 18’
Marcos cautioned against foreign policy statements on China, Taiwan. Philippine Senate Minority Leader Aquilino Pimentel 3rd has advised President Ferdinand Marcos Jr. to exercise caution in making foreign policy statements about China and Taiwan, in line with the Philippines' adherence to the "One China" policy. This warning follows China's admonishment to the Philippines "not to play with fire" after Marcos congratulated Dr. Lai Ching-te on his election as Taiwan's new leader on social media. Bernadette E. Tamayo, The Manila Times, January 17
Government Cracks Down on Corruption, Grants Amnesty in Commitment to Social Justice. The Lao government has disciplined 69 officials, including expulsions and dismissals, in Savannakhet province over corruption allegations, while simultaneously granting amnesty to over 1,800 prisoners. This move signifies the government's commitment to integrity and social justice. The disciplined officials were involved in misconduct and corrupt practices, causing substantial financial losses. Additionally, the amnesty, includes reduced sentences and full pardons Chono Lapuekou, Laotian Times, January 18
At Xiamen Marathon, China’s ‘Smoking Big Brother’ Runs Into a Ban. Chen Bangxian, a 50-year-old Chinese amateur marathon runner known as "Smoking Big Brother," has been banned from the Xiamen International Marathon for two years for smoking during the race. This penalty, a first in China's 2024 domestic marathon season, follows his fame in 2022 for completing a marathon while chain-smoking. The Xiamen Marathon, which classifies smoking as "uncivilized behavior," attracted around 136,000 registrants this year. The ban is part of China's broader efforts to prohibit smoking in public spaces, with cities like Shanghai and Hangzhou enforcing similar bans since 2010. He Qitong, Sixth Tone, January 17
India eyes $100 bln annual foreign direct investment in coming years - IT minister. India is targeting $100 billion in annual foreign direct investment (FDI) in the coming years, according to Information Technology Minister Ashwini Vaishnaw. Speaking at the World Economic Forum in Davos, Vaishnaw outlined a strategy focused on infrastructure investment, uplifting the population's bottom pyramid, boosting manufacturing, and simplifying business processes. Despite some criticism of Prime Minister Narendra Modi's protectionist policies, foreign investment has increased significantly since 2014. India recorded $71 billion in FDI in the 2022-23 financial year and is aiming for a 7.3% economic growth rate this year. The minister's comparison of India's FDI goals with China's past achievements highlights India's rising significance as a global investment destination. Una Galani and Peter Thal Larsen, Reuters, January 17
Long Form
In Taiwan, Distrust of Xi Jinping's China is Real. In Taiwan, there is a palpable sense of crisis and distrust towards Xi Jinping's China, transcending political affiliations. The recent presidential election, which saw high voter turnout and the victory of the Democratic Progressive Party's Lai Ching-te, reflects this sentiment. Taiwanese voters, regardless of their political leanings, are united in their concern over a potential armed invasion by China. This fear is not limited to the public; even members of the Beijing-friendly Kuomintang (KMT) party share this apprehension. The election results indicate a strong desire among Taiwanese to maintain their hard-earned democracy and keep China at bay, rejecting the notion that a KMT government would prevent an invasion or that Xi can be trusted with Taiwan's future. Katsuji Nakazawa, Nikkei Asia, January 18
Red Sea Conflict Plunges Bangladesh Garment Makers into the Red. The conflict in the Red Sea is severely impacting Bangladesh's garment industry, a key economic sector. The industry, which heavily relies on the Red Sea-Suez Canal route for exports to Europe and the U.S., is facing challenges due to the diversion of shipping routes following attacks by Houthi forces from Yemen. This has led to increased freight rates, longer lead times, and container shortages. The situation is exacerbated by Bangladesh's reliance on feeder vessels due to its shallow main port, adding to the lead time for exports. Garment makers are losing orders or incurring losses as they struggle to meet delivery deadlines and cope with surging costs. The conflict adds to existing challenges, including a weak market and increased production costs, putting further strain on an industry that is crucial for Bangladesh's economy. Faisal Mahmud, Nikkei Asia, January 18
How the UAE is Making a Splash in Indonesia’s Clean Energy Sector. The United Arab Emirates, through its renewable energy company Masdar, is significantly contributing to Indonesia's clean energy sector. The recent inauguration of the Cirata solar farm in West Java, Southeast Asia's largest floating solar farm, marks a notable achievement. With a capacity of 145 MW, Cirata demonstrates Indonesia's potential to develop large-scale solar energy projects. This development is particularly significant given the slow progress in solar energy investment in Indonesia. Masdar's approach, which aligns with Indonesia's political and economic landscape, could provide valuable insights for the U.S.-backed Just Energy Transition Partnership. This initiative reflects a growing interest and capability in Indonesia to embrace renewable energy sources, potentially signaling a shift in the country's energy landscape. James Guild, The Diplomat, January 18
The De-risking Push Misunderstands China’s Manufacturing Strengths. The U.S. strategy to reduce dependence on China's role in global supply chains, known as "de-risking," overlooks China's dominance in manufacturing intermediate goods. Despite efforts to shift manufacturing to other countries, many finished products still rely on components made in China. The recent decline in China's exports to the U.S. and the decrease in American foreign direct investment in China might suggest the effectiveness of the de-risking strategy. However, this perspective fails to recognize the complexity of global supply chains and China's entrenched position in them. The reality is that China's manufacturing capabilities, particularly in producing essential components, remain a critical part of the global supply chain, challenging the feasibility of completely decoupling from Chinese manufacturing. Xiaofeng Wang, The Diplomat, January 18
Reality Tempers Cambodia’s Renewed Economic Optimism. Cambodia's new Prime Minister Hun Manet's ambitious Pentagonal Strategy aims to transform the country into a high-income nation by 2050. The strategy focuses on sustained economic growth, employment, human capital development, economic diversification, and increased competitiveness. Despite these optimistic goals, challenges such as global economic slowdown, structural issues, and dependence on a few external markets temper expectations. The strategy includes overhauling key sectors like agriculture, micro, small and medium-sized enterprises (MSMEs), and tourism. However, the garment sector's reliance on imports and exports to major economies poses a vulnerability. The strategy's success hinges on diversifying products, upgrading production, and processing resources domestically. The transformation of agriculture and MSMEs, along with a focus on smart farming and digital integration, is crucial. Tourism, affected by COVID-19, is also a focus, with efforts to attract diverse international tourists. Despite these plans, concerns remain about the impact of economic reforms on people's livelihoods and the potential for past injustices to resurface. Heidi Dahles, East Asia Forum, January 18
Muscle and Mediation Set to Continue in the South China Sea. The South China Sea (SCS) witnessed a mix of military posturing and diplomatic efforts in 2023, a trend likely to persist in 2024. Despite high-level meetings and a push for a Code of Conduct, tensions remain, particularly between China and Southeast Asian nations. The Philippines faced aggressive actions from China, while Malaysia and Vietnam continued to deal with Chinese incursions into their exclusive economic zones. Extra-regional actors like the U.S., Japan, and Australia maintained a strong presence, conducting joint patrols and freedom of navigation operations. The paradox of aggressive actions coexisting with diplomatic negotiations reflects the complex dynamics in the SCS. The region's future remains uncertain, influenced by factors like U.S. and Taiwan elections, China's economic slowdown, and ASEAN's balancing act between economic engagement with China and maintaining sovereignty. Collin Koh, East Asia Forum, January 18
Marcos’s First Year Was a Mixed Bag for the Philippines. President Ferdinand Marcos Jr's first year in office saw significant achievements and challenges. Key successes include debt relief for agrarian beneficiaries and establishing new health centers. Economically, the Philippines experienced a decrease in inflation and strong growth. However, Marcos faced issues like managing rice price ceilings and public transport strikes. Controversies such as the Maharlika Investment Fund and military unrest, along with internal political rifts, posed additional challenges. Despite distancing from Duterte's policies, Marcos needs to focus on transformational reforms to address these challenges effectively. Kevin Nielsen M Agojo, East Asia Forum, January 18