China
China rejects U.S., Panamanian claims of ‘weaponising’ ship inspections. China rejected U.S. and Panamanian accusations that it is using ship inspections for geopolitical leverage, saying checks of Panama-flagged vessels are lawful port-state safety measures. Foreign ministry spokesman Lin Jian cited Chinese data showing Panama-flagged ships accounted for less than 20% of foreign arrivals but about half of accidents and casualties in Chinese waters from January to July. Cao Jiaxuan, South China Morning Post, July 13
China detains U.S. seismologist who has studied North Korean nuclear tests. Chinese-born U.S. seismologist Youlin Chen has been detained in China for nearly two years and faces espionage charges after publishing U.S.-funded research on detecting North Korean nuclear tests. His wife, U.S. lawmakers, and advocacy groups say he has been wrongfully detained, while concerns center on whether China could use his expertise to improve concealment of underground nuclear tests. Jonathan Landay and Michael Martina, Reuters, July 13
China’s GDP growth set to slow, raising expectations for more stimulus. China’s economic growth is expected to slow to 4.5% in the second quarter from 5.0% in the first, as weak domestic demand offsets resilient exports. Economists expect modest stimulus rather than aggressive easing, with fiscal support likely to increase while Beijing addresses overcapacity, deflation pressures, weak consumption, and a prolonged property downturn. Kevin Yao, Reuters, July 13
Japan
Japan OKs rules on social media in elections to maintain fairness. Japan’s parliament enacted a cross-party law tightening rules on social media use during elections to counter false information about candidates while protecting freedom of expression. The revisions require users to label election-related images or videos created or modified with AI and direct platform operators to limit harmful effects, though they face no penalties for noncompliance. Kyodo News, July 13
Tokyo’s ties with Beijing hit another bump, this time over the South China Sea. Japan’s relations with China worsened after Tokyo joined 13 other nations in a statement marking the 10th anniversary of an international tribunal ruling rejecting Beijing’s broad South China Sea claims. China reiterated opposition to the ruling, called it “a worthless piece of paper,” and accused external forces of using it to destabilize the region. Jesse Johnson, The Japan Times, July 13
Upper House passes bill to set up disaster management agency. Japan’s Upper House passed legislation establishing a disaster management agency under the Cabinet to centralize government responses to natural disasters. The prime minister will formally head the agency, while a new disaster management minister will oversee operations and issue recommendations after earthquakes, tsunamis, or volcanic eruptions. The 352-member agency will also improve evacuation shelter facilities and privacy. Eric Johnston, The Japan Times, July 13
South Korea
S. Korea flags record 2027 budget of over $530 billion as AI chip boom lifts revenues. South Korea plans record 2027 budget spending of more than 800 trillion won, supported by stronger tax revenues from the AI chip boom. The government will prioritize chips, AI data centers, and physical AI, while restructuring about 50 trillion won in existing spending and launching a Future Response Fund for youth, growth engines, regions, and talent. Joyce Lee, Reuters, July 13
S. Korea court sentences ex-president to 2 years in jail in political funding case, media says. A South Korean court sentenced former President Yoon Suk Yeol to two years in prison after finding him guilty of illegally receiving free opinion polling services worth 270 million won from a political broker. The court said Yoon later influenced a former lawmaker’s nomination to repay the broker, though Yoon denied requesting polls or promising anything in return. Joyce Lee and Heejin Kim, Reuters, July 13
Ex-DP leader Jung declares bid for reelection. Former Democratic Party leader Jung Chung-rae declared his reelection bid, making the Aug. 17 leadership race a five-way contest. Jung pledged to support President Lee Jae Myung’s administration, unify the party, government, and Cheong Wa Dae, and help the ruling party win another term. He denied suspicions that he would use the leadership post to prepare a presidential run. Lee Haye-ah, Yonhap News Agency, July 13
Lee says will create ‘future response’ fund using extra tax revenue. President Lee Jae Myung said South Korea will use additional tax revenue from the semiconductor boom to create a “future response fund” for future industries, younger generations, regional development, and education. The government will also support three semiconductor and AI megaprojects, strengthen protections for workers affected by AI, and consider electricity pricing changes that avoid increasing household burdens. Park Boram, Yonhap News Agency, July 13
North Korea
Cargo trucks line up at China-North Korea border in trade surge. Cargo truck traffic between Dandong and Sinuiju has increased, with large container convoys carrying likely construction materials, medical equipment, electronics, clothing, and other goods into North Korea. The rise follows last month’s Kim Jong Un-Xi Jinping summit and reflects growing bilateral trade, which reached 8.71 billion yuan in the first five months of 2026, up 17.6% from a year earlier. Seulkee Jang, Daily NK, July 13
With North Korea tourism stalled, China agencies push business visas instead. Chinese travel agencies are shifting from stalled North Korea tourism packages to business visa trips as no clear reopening timeline emerges. Agencies had promoted tours after passenger rail and flights resumed, but recreational travel remains uncertain. Businesspeople with pre-pandemic investments are reportedly traveling more freely, fueling frustration among would-be tourists who believe Pyongyang is admitting only visitors ready to invest. Lee Chae Eun, Daily NK, July 13
Vientam
Prime Minister Le Minh Hung receives new U.S. ambassador. Prime Minister Le Minh Hung received new U.S. Ambassador Jennifer Wicks in Hanoi and called for stronger economic, trade, defense, security, technology, education, and people-to-people cooperation. Both sides emphasized a reciprocal, fair, and balanced trade agreement, war legacy cooperation, maritime security, law enforcement, innovation, and constructive handling of differences to maintain momentum in bilateral relations. Vietnam News, July 13
Myanmar
ASEAN ministers push stalled peace plan in Myanmar talks. Southeast Asian foreign ministers pressed Myanmar Foreign Minister Tin Maung Swe in Bangkok for concrete progress on ASEAN’s Five-Point Consensus, including humanitarian access, reduced violence, civilian protection, political dialogue, and political prisoner releases. Thailand backed calibrated engagement, while Philippine Foreign Secretary Theresa Lazaro said ASEAN still supports the peace plan despite Myanmar lawmakers’ rejection of it. The Irrawaddy, July 13
Laos
Laos formally becomes Shanghai Cooperation Organisation dialogue partner. Laos formally became an SCO dialogue partner after Deputy Prime Minister and Foreign Minister Thongsavanh Phomvihane signed an MoU with SCO Secretary-General Nurlan Yermekbayev in Beijing. The agreement opens cooperation with SCO members in economic development, trade, investment, transport, tourism, digital transformation, and regional connectivity, while Laos emphasized peace, security, stability, and sustainable development. Vientiane Times, July 13
Cambodia
Hun Manet to meet Xi Jinping, speak at World AI Conference in China. Cambodian Prime Minister Hun Manet will visit China from July 15 to 17 for meetings with President Xi Jinping and Premier Li Qiang before delivering a keynote address at the 2026 World AI Conference in Shanghai. The delegation includes senior development, defense, government, and business representatives, with both sides seeking stronger cooperation in trade, investment, technology, and strategic partnership frameworks. Meng Seavmey, Cambodianess, July 13
Philippines
West Philippine Sea education bill pushed. Sen. Erwin Tulfo urged immediate passage of the proposed West Philippine Sea Education Act after Chinese scholars claimed Batanes as part of China’s territory. The bill would require teacher training on West Philippine Sea education, while House members pushed related measures to declare July 12 West Philippine Sea Victory Day and teach maritime history and geography in schools. Bernadette E. Tamayo, Reina C. Tolentino, and Kristina Maralit, The Manila Times, July 12
Prosecution gains edge in impeach trial – survey. A Tangere survey found the prosecution slightly ahead of the defense in public opinion during Vice President Sara Duterte’s impeachment trial, with 32% favoring the prosecution, 30% backing the defense, and 38% undecided. Regional and political divisions remained sharp, while 58% of respondents were satisfied with Sen. Francis Escudero’s handling of the proceedings. Franco Jose C. Baroña, The Manila Times, July 13
Taiwan
Taiwan launches joint defense drill featuring Marine Corps deployment. Taiwan’s military launched a five-day joint defense exercise featuring Marine Corps mobilization to reinforce the Taipei metropolitan area. The drill simulates hostile vessels entering territorial waters, integrates the three military branches, and tests decentralized command-and-control systems. Marine units moved from southern Taiwan to Taipei and New Taipei to establish temporary command posts and conduct reconnaissance. Matt Yu and Ko Lin, Focus Taiwan, July 13
Bangladesh
Bangladesh says IMF agrees phased approach to reforms under new programme. Bangladesh and the IMF agreed on the broad framework for a new lending program to replace the country’s existing $5.5 billion bailout. Finance Minister Amir Khosru Mahmud Chowdhury said reforms will be phased to reflect economic conditions and protect public welfare, with further talks expected on subsidies, tax measures, and policy conditions during IMF and World Bank meetings. Ruma Paul, Reuters, July 13
Ousted PM Hasina faces prison on return to Bangladesh, minister says. Bangladesh’s state minister for foreign affairs said ousted Prime Minister Sheikh Hasina will be jailed if she returns from exile in India and surrenders. Hasina faces a death sentence in Bangladesh over a deadly crackdown during the 2024 uprising, while Dhaka has asked India to extradite her. The minister called Hasina’s planned return an effort to mobilize fugitive party leaders and activists. Ruma Paul, Reuters, July 13
Kazakhstan
Kazakhstan to establish committee to regulate digital asset market. Kazakhstan will create a National Bank committee to regulate and supervise the digital asset market and strengthen oversight of the national payments system. A presidential decree authorizes digital assets and stablecoins for cross-border settlements, introduces voluntary disclosure for assets on foreign platforms, and exempts individuals from income tax on profits from licensed digital asset platforms. Dmitry Pokidaev, The Times of Central Asia, July 13
Kyrgyzstan
Kyrgyzstan adopts Central Asia’s first framework climate law. Kyrgyzstan adopted a framework climate law that takes effect on January 1, 2027, putting emissions policy and climate adaptation under one legal structure. The law covers climate finance, carbon neutrality, research, training, technology transfer, carbon units, and a national registry, while giving the Cabinet six months to align existing regulations and define implementation rules. Stephen M. Bland, The Times of Central Asia, July 13
East Asia
Stop Overreacting to China’s Missile Test. China’s submarine-launched ballistic missile test reflected technical and institutional needs, not coercive signaling. The launch validated missile range, command systems, submarine coordination, and force readiness. Beijing chose a less provocative route, issued advance notices, and framed the event as routine training. Condemnation could discourage transparency and reduce incentives for future risk-reduction measures. Washington should reward compliance with accepted testing practices and pursue communication that lowers miscalculation risks during nuclear crises. Decker Eveleth, Foreign Policy, July 13
China’s Tech Push Is Running Into the Limits of Its Domestic Reform Agenda. China’s technology strategy has built global strength in artificial intelligence, semiconductors, electric vehicles, batteries, robotics, and biotechnology. Its next stage depends on domestic reform. Labor disruption, weak welfare coverage, low household demand, distorted capital markets, regulatory uncertainty, and political pressure on private firms threaten frontier innovation. Long-term progress requires stronger social protection, deeper consumer demand, patient capital, credible governance, room for failure, and political predictability within China’s national innovation system. Lizzi Lee and Huiyan Li, China-US Focus, July 10
China’s Transnational Repression Is Being Met With a Deafening Silence. China’s detention of U.S. citizen Min Zin on espionage charges reflects a broader campaign of transnational repression against scholars, activists, dissidents, and diaspora communities. Beijing uses surveillance, threats, covert police stations, Interpol notices, family pressure, and state-linked groups to silence criticism outside China. Washington has stayed silent. The United States should demand Min Zin’s release, confront repression in talks, sanction officials, coordinate with allies, and warn researchers about travel risks. Joshua Kurlantzick, Council on Foreign Relations, July 13
A squeezed China is trying to wring more from its state assets. China’s local governments are monetizing underused state assets as property declines reduce land-sale revenue and strain municipal budgets. Yueyang has renovated public property, consolidated fishing rights, and converted failed developments into commercial sites. Similar programs have raised income from state assets in several provinces and helped Jilin leave a high-debt blacklist. The campaign cannot erase two decades of borrowing, but supports budgets and shifts development from expansion toward existing assets. Simon Rabinovitch, The Economist, July 13
The NATO Summit and the Long Shadow of Beijing. Europe’s rearmament is reshaping its view of China as NATO turns defense pledges into procurement, industrial programs, and support for Ukraine. The European Union is preparing to identify China as a strategic challenge and facilitator of Russia’s war. Evidence of Sino-Russian military cooperation reinforces concerns linking Europe and Asia. Disputes over “Made in NATO” and “Buy European” expose tension between unity, industrial sovereignty, and efforts to reduce dependence on Beijing. Konrad Szatters, China Observers, July 13
UK China policy is a necessary compromise. Britain’s China policy reflects a compromise between economic engagement, security concerns, and alliance obligations. Keir Starmer’s Beijing visit reopened dialogue without reviving the “Golden Era.” Dependence on the United States through NATO, Five Eyes, and AUKUS limits London’s freedom, while concerns about espionage, cyber activity, Hong Kong, and Xinjiang shape debate. Cautious cooperation on migration, crime, visas, and investment offers a model that preserves dialogue without abandoning competition or scrutiny. Zeno Leoni, East Asia Forum, July 10
Sanaenomics' optimistic ambition to bring back a stronger and richer Japan. Sanaenomics seeks to revive Japan through fiscal expansion, industrial policy, public investment, and economic security. Prime Minister Sanae Takaichi has targeted strategic sectors such as semiconductors and artificial intelligence, backed by large public-private funding plans. Supporters expect stronger demand to raise investment, productivity, and potential growth. Risks include high public debt, rising bond yields, yen weakness, inflation, and stagnant wages. Durable recovery depends on household income and private consumption growth. Kang-Kook Lee, Nikkei Asia, July 13.
Japan’s LDP drifts back toward old factional habits. Japan’s Liberal Democratic Party is rebuilding faction-like groups after its 2026 election victory, despite dissolutions prompted by the slush fund scandal. Former factions organize around senior leaders, train new lawmakers, shape committee assignments, and prepare for the 2027 leadership contest. Taro Aso’s surviving faction has gained influence, while rival networks support Prime Minister Sanae Takaichi. The revival exposes weak reform, unresolved funding oversight, structural incentives, and enduring party factionalism. Yan Shot, East Asia Forum, July 10
The Trump effect on Japan–South Korea relations. Japan and South Korea have strengthened ties under Prime Minister Sanae Takaichi and President Lee Jae-myung, driven by shared concern over Donald Trump’s unpredictable policies and possible U.S. retreat. Both governments seek closer security and economic cooperation, but domestic resistance blocks key defense arrangements and South Korea’s trade pact application. Differences over China, North Korea, wartime compensation, and Yasukuni Shrine visits could revive tensions and limit the partnership’s long-term durability. Daniel Sneider, East Asia Forum, July 12
Southeast Asia
Small States, Big Stakes: ASEAN’s Narrowing Space for Collective Agency. ASEAN has less room for collective action as United States-China rivalry, protectionism, supply disruptions, and conflicts expose small states to coercion. Its influence rests on coalition building, institutions, trade agreements, and convening power. RCEP, the ASEAN Economic Community, and the Digital Economy Framework Agreement can strengthen resilience. Yet strategic neutrality creates serious risk. ASEAN must deepen integration and defend consensus-based forums before great-power pressure weakens its ability to shape order. Denis Hew, FULCRUM, July 13.
Malaysia’s Barisan Nasional is going solo in name only. Barisan Nasional’s pledge to contest Malaysia’s next general election without partners functions as political positioning behind a claim of independence. Chairman Ahmad Zahid Hamidi seeks to revive Malay support, distance UMNO from the Democratic Action Party, and preserve leverage over coalition talks. Electoral rules favor seat coordination with Pakatan Harapan or other partners. BN’s Johor victory strengthens its position, but declining Malay backing and pressure from Perikatan Nasional remain obstacles. Asif Ullah Khan, East Asia Forum, July 13