Asia Daily: January 29, 2024
News
US, China launch working group to address opioid crisis. In a significant move, the United States and China have established a high-level working group focused on combating the opioid crisis. This initiative, emerging from a meeting between Presidents Joe Biden and Xi Jinping, aims to address the alarming rise in opioid-related overdoses, particularly those involving fentanyl. The group, led by the US White House Deputy Homeland Security Adviser, will concentrate on collaborative law enforcement efforts and strategies to curb illicit drug financing. Khushboo Razdan, South China Morning Post, January 28
N. Korea fires several cruise missiles from its east coast: JCS. North Korea launched several cruise missiles from its east coast, as reported by the South Korean military. This action, following a recent test of new strategic cruise missiles from the west coast, underscores the ongoing tensions on the Korean Peninsula. The South Korean Joint Chiefs of Staff are closely monitoring these developments in coordination with the United States. These missile tests, including the nuclear-capable Pulhwasal-3-31, are escalating regional security concerns. Park Boram, Yonhap News Agency, January 28
Philippines and US intend to hold '2-plus-2' meeting in March, envoy says. In March, the Philippines and the United States plan to conduct a "2-plus-2 meeting" in Manila, involving top diplomatic and defense officials, according to the Philippine ambassador to Washington. This meeting, still in the planning stages, is expected to feature U.S. Secretary of State Antony Blinken and Secretary of Defense Lloyd Austin meeting with their Philippine counterparts. The agenda is not yet disclosed, but the meeting is significant given the ongoing regional tensions, particularly in the South China Sea. Karen Lema, Reuters, January 28
China, North Korea vow to deepen ties ‘at all levels’, no let-up in missile tests by Pyongyang. China and North Korea have pledged to strengthen strategic communication and cooperation, coinciding with Pyongyang's continued missile tests and closer ties with Russia. This commitment follows recent meetings between Chinese and North Korean diplomats. The development of these diplomatic relations and military capabilities, particularly North Korea's missile tests and nuclear advancements, are under international scrutiny amid regional tensions. Holly Chik, South China Morning Post, January 28
Ex-Japan PM Aso vows to maintain LDP faction as policy group. Former Japanese Prime Minister Taro Aso has announced his intention to retain his faction within the Liberal Democratic Party (LDP) as a policy-oriented group. This move aims to maintain influence and contribute to policy discussions within the party. Aso's decision comes amidst a landscape of evolving political dynamics within the LDP, emphasizing the importance of policy formulation and political strategy in Japanese politics. Kyodo News, January 29
Malaysia ex-finance minister charged amid widening graft crackdown. Former Malaysian Finance Minister Daim Zainuddin has been charged with failing to declare assets, a high-profile case in Malaysia's ongoing anti-corruption efforts. Daim, associated with ex-Prime Minister Mahathir Mohamad, pleaded not guilty to the charges involving assets in 38 companies, properties, and luxury vehicles. This case, part of a broader investigation by the Malaysian Anti-Corruption Commission, highlights the intensified scrutiny on political figures under Prime Minister Anwar Ibrahim's administration. Danial Azhar, Reuters, January 28
Marcos leaves for Vietnam Monday. Philippine President Ferdinand Marcos Jr. is set to leave for Vietnam on Monday, a trip aiming to enhance bilateral ties and regional cooperation. This visit, significant for the Philippines' foreign policy, focuses on strengthening diplomatic relations with Vietnam amidst the evolving geopolitical landscape in Southeast Asia. The journey reflects Marcos' commitment to fostering closer ties with neighboring countries and underscores the importance of regional diplomacy. Kristina Maralit, The Manila Times, January 28
Japan, U.S. agree on AI research for drones to assist new fighter jet. Japan and the United States have reached an agreement to collaborate on artificial intelligence research for drones. This research is intended to support the development of Japan's next-generation fighter jet. The collaboration reflects a deepening of defense ties between the two countries and highlights the increasing role of advanced technology in military capabilities. Kyodo News, January 29
Philippine President’s visit – a milestone in Philippines-Việt Nam relations: Ambassador. The upcoming state visit of Philippine President Ferdinand Romualdez Marcos Jr. to Việt Nam is hailed as a milestone in bilateral relations between the two countries. According to Philippine Ambassador Meynardo Los Banos Montealegre, this visit is expected to deepen and expand the friendship and partnership established in 1976. With the 50th anniversary of diplomatic ties approaching in the next two years, this visit marks a crucial step in enhancing cooperation across multiple sectors, including trade, defense, agriculture, and culture. Vietnam News, January 28
China Clamps Down on Drug Price Differences Across Provinces. China is introducing measures to address price disparities in pharmaceuticals across provinces, aiming to curb "price discrimination" by pharmaceutical companies. The National Healthcare Security Administration's new rules limit the tender price of a drug to 1.5 times the lowest bid price in any province. This initiative also includes a new unified drug procurement platform for better information sharing, a significant step towards ensuring fairer drug pricing across China's diverse regions. He Qitong and Lü Xiaoxi, Sixth Tone, January 26
Long Form
The Myanmar Junta Is Losing Its Foreign Backers. The military junta in Myanmar, which seized power in February 2021, is increasingly isolated on the international stage, with dwindling support from foreign backers. Initially backed by countries like Russia and China, the junta is now finding itself with limited external support. The Three Brotherhood Alliance's recent offensive against the junta's forces, known as the Sit-Tat or Tatmadaw, has gained momentum, signaling a significant shift in the conflict. The junta's reliance on Russia, which is currently preoccupied with its own geopolitical challenges, further underscores its growing isolation. This development marks a critical phase in Myanmar's ongoing struggle between the military regime and pro-democratic forces. Ivan U. Klyszcz, Harold Chambers, The Diplomat, January 27
The Necessity of Global Collaboration for U.S. Technological Leadership. To maintain its technological leadership, the United States must engage in international investment and innovation, especially in the face of China's growing tech prowess. China's 'Made in China 2025' initiative and the Digital Silk Road program are significant steps towards transforming the country into a high-tech manufacturing hub, reducing dependence on foreign technology. This strategic shift by China underscores the urgency for the U.S. to foster global partnerships in technology and innovation, ensuring it remains at the forefront of the technological race. Christopher Thomas, Sarah Kreps, Foreign Affairs, January 26
Australia's EV Battery Metals Industry Faces Indonesia, China Challenges. Australia's electric vehicle (EV) battery metals industry is grappling with significant challenges due to weak nickel and lithium prices, leading some miners to halt operations. The downturn in the market is attributed to a correction phase, as initial enthusiasm for renewable energy cools and EV adoption forecasts become more cautious. Australian resource companies face competition from Indonesia, which dominates the nickel market, and China's role in processing critical minerals and manufacturing batteries. The Australian government is considering support measures, including infrastructure development and potential tax credits, to bolster the local industry. However, Australia must navigate high energy and labor costs, the need for infrastructure, and China's dominance in the sector to capitalize on the long-term benefits of the shift to low-carbon technology. Shaun Turton, Nikkei Asia, January 29
Jokowi's Final Act. As Indonesian President Joko 'Jokowi' Widodo's term nears its end in 2024, his administration has achieved notable successes, including hosting the ASEAN chairmanship and the FIFA U-17 World Cup, and launching the high-speed railway 'Whoosh'. Jokowi's divergence from the Indonesian Democratic Party of Struggle's stance, particularly in supporting Prabowo Subianto for the 2024 elections, has raised concerns about political dynasties and the use of state institutions for personal advantage. Despite these criticisms, Jokowi's popularity remains high, largely due to his effective economic management, especially in controlling inflation and supporting disadvantaged groups. Challenges such as reviving the economy post-COVID-19, managing foreign direct investment, and addressing infrastructure needs persist. The government's focus on digital economy growth and response to food inflation, along with monetary policies to support small businesses, are key aspects of Jokowi's economic strategy. As Indonesia approaches the general election, maintaining security and political stability will be crucial for sustaining economic growth. Siwage Dharma Negara, East Asia Forum, January 29
Reform Needed to Revitalise Japan Agricultural Cooperatives. Japan Agricultural Cooperatives (JA) have been pivotal in supporting Japan's farming industry, offering services from marketing farm products to providing credit and insurance. However, the industry faces challenges such as a declining farming population and rising costs of agricultural materials. JA's structure has evolved since its post-World War II establishment, with significant growth in its banking and insurance services. Criticisms have emerged that JA, primarily profiting from non-agricultural services, has strayed from its original cooperative mission. The government's reform efforts aimed to transform JA into corporations, but these were only partially successful. JA's membership includes a large number of non-farmers, reflecting the changing landscape of Japanese agriculture. The cooperative has attempted to adapt by merging and streamlining operations, but concerns remain about its ability to effectively support the agricultural sector. JA's future role may involve shifting from a dominant market player to a supporter, focusing on local-level initiatives and exploring new markets, including international exports. Yusaku Yoshikawa, East Asia Forum, January 29
South Korea–Ukraine Partnership Charged with Reenergising Europe’s Battery Market. The emerging partnership between South Korea and Ukraine, particularly in the realm of lithium, is poised to significantly impact Europe's battery market. South Korea, aiming for a 40% share of global battery production by 2030, sees Ukraine's abundant lithium resources as key to achieving this goal. This partnership offers South Korea an opportunity to secure more lithium and penetrate the growing European battery market, especially with the rise of electric vehicles. Ukraine's collaboration with Poland, where a major lithium-ion battery factory owned by South Korean company LG Energy Solution is located, further cements this strategic alignment. The partnership is seen as a potential move to reduce Europe's reliance on China for renewable batteries. However, South Korea faces challenges in maintaining independence from Chinese entities in securing lithium supplies, especially under the constraints of the US Inflation Reduction Act. The success of this partnership could position South Korea not only as a vital economic ally for Ukraine but also as a key player in Europe's renewable battery industry. Anthony Rinna, East Asia Forum, January 27