China
China buys more U.S. soybeans, total purchases approach 10 million tons. China’s state stockpiler Sinograin bought 10 U.S. soybean cargoes this week, traders said, totaling about 600,000 metric tons for March to May shipment. Traders estimated China’s total purchases from the latest US crop at 8.5 million to nearly 10 million tons, nearing a 12 million ton pledge cited by U.S. Treasury Secretary Scott Bessent. USDA reported a 336,000-ton sale to China for 2025/26. Naveen Thukral, Ella Cao, Gus Trompiz, Heather Schlitz, Karl Plume, Reuters, January 6
Shanghai unveils US$10 billion investment spree as U.S.-China tech race heats up. Shanghai’s Pudong district unveiled 50 projects worth more than 70 billion yuan, about US$10 billion, aimed at chips, AI, biopharmaceuticals, smart vehicles and aviation. Pudong set 2030 output goals of 500 billion yuan for chips, 200 billion for AI, and 100 billion for aircraft manufacturing. Officials said Shanghai will back AI startups and use its finance base to speed commercialization. Frank Chen, South China Morning Post, January 7
China’s ideology chief calls on propaganda officials to focus on the economy. Politburo Standing Committee member Cai Qi told publicity chiefs in Beijing to make economic coverage the priority as China faces slower growth, unemployment and weak demand. He called for tighter cyberspace management, guidance of public opinion, and a stronger anti-corruption message. Publicity Department head Li Shulei urged better ideological work, support for arts and heritage, and wider reading. Phoebe Zhang, South China Morning Post, January 6
China continued hunt for corrupt ‘tigers’ snares State Council veteran. The CCDI detained Tian Xuebin, 62, for suspected serious violations of discipline and law. Tian retired as vice-minister of water resources in December 2023 and previously spent 16 years in the General Offices of the Communist Party Central Committee and the State Council as a secretary to top leaders. The probe makes Tian the first vice-ministerial-level ‘tiger’ targeted in 2026. William Zheng, South China Morning Post, January 5
Japan
China slaps export controls on Japan military for Taiwan remarks. China’s commerce ministry banned exports of all dual-use items to Japan for military use, effective immediately. It also barred exports for other end users that could enhance Japan’s military capabilities. A spokesperson cited Prime Minister Sanae Takaichi’s Taiwan remarks as violating the One-China principle and causing harmful consequences. Josh Xiao, The Japan Times, January 6
Takaichi’s high approval ratings fuel speculation of early election. Prime Minister Sanae Takaichi’s high approval ratings have fueled talk of dissolving the Lower House for a snap election. At a Jan. 5 news conference, she stressed the need for voters to feel results from inflation measures and economic policy. LDP officials said a post-budget dissolution is possible, but ministers warned that yen weakness and China tensions could erode support. The Asahi Shimbun, January 6
South Korea
Lee urges efforts to ease negative public sentiment between S. Korea, China. President Lee Jae Myung told Shanghai party secretary Chen Jining that South Korea and China should ease negative public sentiment and build goodwill. He said misunderstandings have hurt ties and urged minimizing confrontation while expanding economic cooperation. Lee said he will visit Shanghai sites tied to Korea’s provisional government and Kim Koo. Kim Eun-jung, Yonhap News Agency, January 6
Budget minister nominee meets fiscal management experts amid controversies. Lee Hye-hoon, nominee to head the Ministry of Planning and Budget, met six fiscal-management experts Tuesday, her team said. They agreed fiscal policy should play a more proactive role during structural transition and public hardship. Opposition lawmakers urged her to step down over allegations involving her treatment of staff and real estate speculation by her husband. Kim Han-joo, Yonhap News Agency, January 6
PPP leader issues belated apology for martial law fiasco. The People Power Party leader Rep. Jang Dong-hyeok apologized for former President Yoon Suk Yeol’s Dec. 3, 2024 martial law declaration. He called it inappropriate and said it caused confusion, inconvenience, and deep wounds to party members who uphold liberal democracy. Jang said the party failed its responsibilities as the ruling party and apologized to the public as it tries to distance itself from Yoon. Lee Hyo-jin, The Korea Times, January 7
North Korea
N. Korea accuses Japan of reinvasion plotting over record-high defense budget. North Korea accused Japan of plotting “reinvasion” after Tokyo set a record 9.04 trillion yen ($57.7 billion) defense budget. Rodong Sinmun said Prime Minister Sanae Takaichi’s government seeks strike-back capabilities, constitutional revision, and regular-troop status for the Self-Defense Forces. The paper criticized joint drills with NATO members and wider operations as moves to revive militarism. Park Boram, Yonhap News Agency, January 6
N. Korea limits Pyongyang residency for fallen soldiers’ families amid loyalty checks. North Korea plans to grant Pyongyang residency to families of soldiers killed fighting in Russia, but only immediate relatives will qualify. Sources said the military and Workers’ Party are compiling eligibility lists and running background checks on loyalty and reputation to block an influx of provincial residents. The screening is meant to dampen discontent over the Russia deployment and keep bereaved families from leaking information. Seon Hwa, Daily NK, January 7
Thailand
Border unrest could see Buri Ram SAO polls postponed. The Election Commission office in Buri Ram said it may postpone Jan. 11 subdistrict administrative organization elections if Thai-Cambodian border unrest worsens. Director Surapong Thip-osot said nine border subdistricts are affected and polling-station directors can declare absentee voting. Police deputy commander Kamphol Wongsonguan said about 2,000 officers are deployed. Bangkok Post, January 7
2.4m register for early poll voting. The Election Commission said 2,410,425 voters registered for advance voting for the Feb. 8 election during Dec. 20-Jan. 5. It said 2,262,643 registered out-of-area and 139,535 from overseas, while 1,598,056 registered for out-of-area and overseas referendum voting Jan. 3-5. Secretary-General Sawaeng Boonmee rejected calls to extend registration, citing time-sensitive tasks. Chairith Yonpiam and Aekarach Sattaburuth, Bangkok Post, January 7
Bank of Thailand deputy governor expects GDP rebound in Q4, limited policy space. The Bank of Thailand’s Piti Disyatat said fourth-quarter 2025 GDP should rise quarter on quarter, helping meet a 2.2% full-year growth forecast. He said inflation should return to positive territory by March or April. After five cuts since October 2024, he warned policy space is limited and the bank will save the remaining room for shocks. Ankika Biswas, Reuters, January 6
Myanmar
Same old playbook? USDP accused of repeating 2010 advance-vote cheating. Several parties and candidates accused the military-linked USDP of manipulating advance ballots in the Dec. 28 first-phase vote. Junta results showed the USDP won 89 of 102 Lower House seats. The SNDP, MFDP and People’s Party filed complaints to Min Aung Hlaing, saying late and advance votes changed outcomes, while USDP spokesman Hla Thein and the election commission said the process complied. Myo Pyae, The Irrawaddy, January 6
Myanmar pro-military party wins first phase of junta-run election: official results. Results showed the USDP won 89 of 102 seats in the first phase of the Dec. 28 vote. The junta said the election will return power to the people, but critics called it a bid to legitimize military rule after Aung San Suu Kyi’s jailing and the NLD’s dissolution. Results are due after Jan. 25, and the constitution reserves 25% of seats for the military. The Irrawaddy, January 6
Laos
12th National Party Congress opens, outlines development roadmap. The 12th congress of the Lao People’s Revolutionary Party opened Tuesday under a theme stressing party leadership and an independent, self-reliant economy. Secretary General Thongloun Sisoulith set a target of at least 6% average annual growth in 2026-2030 and ordered action on economic and financial difficulties. The political report pledged debt restraint, governance reforms, and steps toward graduating from least developed country status in 2026. Souksakhone Vaenkleo, Vientiane Times, January 7
Philippines
PH to hold more naval drills in 2026. Rear Adm. Roy Vincent Trinidad said the Philippines will hold more drills with like-minded allies in the West Philippine Sea in 2026. He said it has five Status of Visiting Forces Agreements with the United States, Australia, New Zealand, Japan and Canada. In 2025, the navy held eight multilateral and 12 bilateral maritime cooperative activities, and he said exercises will increase. The Manila Times, January 6
ICC prosecutors disclose over 1,300 pieces of evidence in case against Duterte. ICC prosecutors disclosed 1,303 evidence items to Rodrigo Duterte’s defense from July to December 2025, court filings showed. The package included 906 incriminating items, 389 Rule 77 disclosures that may assist the defense, and eight items marked PEXO. Prosecutors said the new materials focus largely on alleged murders in police operations and will not be used for the upcoming confirmation of charges hearing. Franco Jose C. Baroña, The Manila Times, January 6
Philippine central bank signals no rate cuts for now as inflation picks up. Philippine inflation rose to 1.8% in December, the fastest in nine months, and the central bank said it expects to keep rates steady for now. Governor Eli Remolona said 2025 growth may have slowed to 4.6%, below the 5.5%-6.5% target, though he expects a recovery. The policy rate is 4.5% after five straight cuts, and the next review is Feb. 19. Mikhail Flores, Karen Lema, Reuters, January 6
Taiwan
Frank Hsieh selected as Taiwan-Japan Relations Association chairman. The Taiwan-Japan Relations Association chose former Taiwan representative to Japan Frank Hsieh as chairman, succeeding Su Jia-chyuan. The body represents Taipei’s interests in Tokyo without diplomatic ties, and Hsieh said he aims to take relations to a new pinnacle after serving in Japan from 2016-2024. The association was founded in 1972 under the foreign ministry and works with Japan’s Japan-Taiwan Exchange Association. Yang Yao-ju, Shih Hsiu-chuan, Focus Taiwan, January 6
Bid to change Taiwan law that prompted Beijing to warn of war risk falls at first hurdle. Ruling DPP legislator Lin I-chin proposed renaming Taiwan’s cross-strait law and deleting wording tied to unification, but the draft did not reach the legislature’s agenda committee. The Kuomintang said Lin withdrew it, citing a registry entry marked over, while Lin said the text needs revisions and more co-signers. Critics said the changes push a “two-states” line that could provoke Beijing. Lawrence Chung, South China Morning Post, January 6
East Asia
China’s economy is heading for a rough 2026. Growth in early 2026 faces pressure from expiring stimulus, a high base from the 2024 to 2025 rebound, and a housing downturn. Trade-in subsidies that boosted electronics and auto sales since September 2024 brought demand into 2025 and home appliance sales shifted to decline. New energy vehicles lose a purchase-tax exemption, with a 5 percent tax from January 2026 and 10 percent from January 2028, which sets up weaker car sales. New home sales rebounded after easing steps in late 2024, followed by renewed declines and weak year-on-year numbers. Bond issuance supported 2025 spending and the credit cycle, but momentum has turned down. Exports held up despite US tariffs, and export cycles point to softer growth. Chen Long, ThinkChina, January 6
Nukes Won’t Make Japan Safer. Japan’s pursuit of nuclear weapons would weaken the Treaty on the Non-Proliferation of Nuclear Weapons and damage the postwar order, after remarks by Prime Minister Sanae Takaichi linking Japan’s security to a Taiwan contingency and an adviser raising a nuclear option. Right-wing groups press to revisit the Three Non-Nuclear Principles, and Japan holds capability through nuclear power infrastructure, spent-fuel reprocessing, and plutonium stockpiles cited by US scholars Richard J. Samuels and James L. Schoff and by Frank von Hippel. Nuclear acquisition would spur proliferation pressures in East Asia, raise nuclear attack risk by eroding the nuclear taboo, and strip Japan’s peace identity while leaving a dense island state with limited strategic depth. Expected costs include sanctions, isolation, and friction with allies and neighbors. Wang Zhen, CHINA US Focus, January 6
Right-shoring: Japan can redesign the supply chain to fit its interests. China rebuked Tokyo after comments linking a Taiwan contingency to Japan’s survival, and Beijing signaled economic pressure as Japan sends one-quarter of goods exports to China and Hong Kong. Policy terms such as friend-shoring, de-risking, and decoupling can push firms to redesign supply chains around politics, not capability. Friend-shoring narrows partners to “trusted” economies and risks bloc formation, with ASEAN states left outside value chains. De-risking can mask pullbacks that ignore real weak points. IMF analysis on geo-economic fragmentation warns that decoupling cuts output and harms emerging economies, while semiconductor costs and mineral strain rise. Right-shoring assigns each activity to the best location across cost, risk, lead time, sustainability, and regulation, and builds portfolios that include China when it adds value. Wolfgang Lehmacher, Nikkei Asia, January 6
North Korea's Initial Reaction to US Operations in Venezuela. North Korea issued a Foreign Ministry spokesperson answer to KCNA on January 4, one day after a US operation in Venezuela that captured President Nicolas Maduro. The statement avoided details and general labels for the US action, and domestic papers did not carry it, while external outlets covered US Venezuela tensions. Language on sovereignty and the UN Charter condemned the United States and used harsher phrasing than Pyongyang used after the June 2025 US bombings of Iranian nuclear sites. The pattern fits reduced foreign policy commentary before the Ninth Party Congress and attention to changes in international relations. Kim Jong Un linked weapons upgrades to recent geopolitical crisis during a January 4 missile drill. Rachel Minyoung Lee, 38 North, January 6
Southeast Asia
China’s Crackdown and Myanmar’s Scam Hubs: Inside the Rise and Fall of a Borderland Crime Economy. Myanmar borderlands hosted scam hubs such as Laukkaing and Shwe Kokko built on protection deals with militias, tolerance from military elites, and alignment with Chinese priorities. Chinese syndicates moved from casinos and online gambling to cyber fraud after tighter Chinese controls and converted empty hotels and zones into fortified compounds during COVID-19. Traffickers supplied coerced labor from Asia, Africa, and Latin America, while victim targeting shifted to the United States, Japan, and Europe. Chinese courts sentenced Bai family leaders and other Laukkaing clans, and Thailand extradited developer She Zhijiang. Myanmar raids followed, including seizures of phones and Starlink gear, while patronage networks and civil war conditions keep space for relocation. Alice Quan, Sino-Southeast Initiative, January 6
Improving Indonesia’s Submarine Cable Resilience. Submarine cables carry 98 percent of electronic communications, and planned systems such as the trans-Pacific Bifrost link Southeast Asia to the continental United States. Concern about sabotage has grown after 11 cable damage incidents in the Indo-Pacific from 2023 to 2025. Indonesia relies on 217 cable segments spanning 115,104 km, with risks from fishing and anchor drops. Fragmented permits have left cables in marine protected areas and fishing zones. Telecommunications Law No. 36/1999 sets penalties of six years in prison or a 600 million rupiah fine, yet monitoring and patrol capacity remain limited. Four cable ships are based in Indonesia, three can repair, and none is Indonesian-owned, while cabotage rules delay repairs. A 2021 cable committee mapped routes and built the E-PIPAKABEL database. I Gusti Bagus Dharma Agastia, FULCRUM, January 6
Oceania
Australia dreams away Asia Pacific realities. Events in 2025 shattered a rules-based trade order as the United States kept the WTO Appellate Body vacant and imposed broad tariffs that broke trade agreements, pushing partners such as Canada and the European Union to rework trade routes. China’s dominance in critical minerals and renewable energy supply chains drives diversification, including solar photovoltaics. Reliance on US or China carries risk, but Australian strategy keeps a US-China frame. The United States and China represent 20 percent of world population and 30 percent of output, and military power has not solved security problems. The two powers offer crony capitalism, not models to copy. ASEAN moves toward regional trade. Australia’s focus on AUKUS locks in great power rivalry. John Quiggin, East Asia Forum, January 6
The price of the Marshall Islands’ universal basic income. The Marshall Islands launched Enra in November 2025, paying US$200 every quarter to resident Marshallese citizens under a universal basic income scheme funded through the Compact of Free Association with the United States. Compact grants, trust fund support, federal-style services, and US defense responsibilities create the fiscal space for a universal entitlement in an economy with a narrow tax base and limited diversification. Enra is projected to exceed 8 percent of GDP, and the Extraordinary Needs Distribution for outer islands adds 6 percent. Payments run through a government digital wallet using a tokenised US dollar instrument to reach dispersed atolls amid shrinking banking access. IMF warnings cite budget strain, exposure to trust fund returns and US commitments, and cybersecurity and anti money laundering risks. Monique Taylor, East Asia Forum, January 6