Asia Daily: July 23, 2024
News
Bangladesh accepts court ruling to cut state job quotas after unrest, eases curfew. The Bangladesh government has agreed to a Supreme Court ruling that 93% of state jobs be open to competition, addressing a major student demand after violent protests. The government also announced an easing of the curfew imposed during the unrest. Despite this, students are calling for additional measures, including lifting the curfew entirely and restoring internet services. The protests began after a high court reinstated job quotas last month, causing significant unrest. Mohammad Ponir Hossain, Ruma Paul, and Sam Jahan, Reuters, July 23
China rolls out strict new measures for government sector to protect state secrets. China has introduced new regulations to enhance the protection of state secrets, expanding the scope of the Law on Guarding State Secrets. The rules require government departments to identify and safeguard sensitive information, restrict foreign travel for employees handling secrets, and mandate special training for officials. The regulations, effective in September, aim to mitigate the risks of digital leaks and theft, emphasizing innovation in security technologies. Yuanyue Dang, South China Morning Post, July 23
China's Wang complains about Japan lawmakers' visits to Taiwan. Chinese Foreign Minister Wang Yi expressed concerns over Japanese lawmakers' visits to Taiwan during a meeting with Japan's National Security Secretariat head, Takeo Akiba. Wang emphasized that these visits undermine China's sovereignty and the one-China principle. The meeting occurred amid ongoing tensions between China and Japan over Taiwan, with China warning against any actions it perceives as supporting Taiwanese independence. Kyodo News, July 23
Belarus’ foreign minister arrives in North Korea for talks expected to focus on Russia cooperation. Belarus’ Foreign Minister Maxim Ryzhenkov arrived in North Korea, where he is expected to discuss forming a trilateral anti-Western front with North Korean officials, also involving Russia. Ryzhenkov is the first Belarusian foreign minister to visit North Korea, and his agenda likely includes building cooperation to address disputes with the West. This visit follows a June pact between North Korean leader Kim Jong Un and Russian President Vladimir Putin for mutual military assistance. Hyung-jin Kim, AP News, July 23
N. Korea holds crisis meeting to discuss minimizing agricultural damage from natural disasters. North Korea held a crisis response meeting to address measures for minimizing natural disaster damage to crops and agricultural products. The virtual meeting, chaired by Premier Kim Tok-hun, reviewed disaster prevention efforts from heavy downpours and droughts in the first half of the year. This follows the adoption of a crisis response law in 2022, aimed at mitigating the impacts of diseases and natural disasters like floods and typhoons. Kim Han-joo, Yonhap News Agency, July 23
India cuts import tax on smartphones in boost for Apple. India will reduce the import duty on mobile phones and key components from 20% to 15%, benefiting companies like Apple, which imports high-end models despite increasing local production. Announced in the 2024/25 budget by Finance Minister Nirmala Sitharaman, this move aims to support consumers and new market entrants. It is expected to save Apple $35-50 million annually. Other manufacturers, like Samsung, will also benefit, though to a lesser extent due to their local manufacturing. Reuters, July 23
Uzbekistan launches NATO-standard armored vehicle. Uzbekistan has introduced a new armored vehicle built to NATO standards, marking a significant advancement in its defense capabilities. The vehicle, unveiled at a recent military parade, is designed for enhanced protection and operational efficiency. This development aligns with Uzbekistan's efforts to modernize its military equipment and improve its defense infrastructure. The introduction of NATO-standard vehicles demonstrates the country's commitment to adopting international military standards. The Times of Central Asia, July 23
Myanmar delegation including hardline pro-junta politicians visits China. A Myanmar delegation, featuring hardline pro-junta politicians, visited China to strengthen bilateral ties and explore economic and political cooperation. The delegation included members of the Union Solidarity and Development Party and was received by the Chinese Communist Party. Discussions focused on investments, trade, and infrastructure projects, highlighting China's support for Myanmar's military regime despite widespread international condemnation and sanctions. The visit is seen as an effort by Myanmar to seek economic aid and political backing from China. Maung Kavi, The Irrawaddy, July 23
Japan imposes sanctions on Israeli settlers in West Bank for 1st time. Japan has imposed sanctions on Israeli settlers in the West Bank for the first time, in response to recent violence against Palestinians. The sanctions target individuals involved in activities deemed to undermine the peace process and violate international law. Measures include travel bans and asset freezes. The Japanese government emphasized the importance of a two-state solution and called for immediate cessation of violence. Kyodo News, July 23
Vietnam, Japan to boost people-to-people exchanges. Vietnam and Japan have agreed to enhance people-to-people exchanges as part of efforts to strengthen their bilateral relationship. The agreement was reached during a meeting between Vietnamese Prime Minister Pham Minh Chinh and Japanese officials. The two countries aim to promote cultural exchanges, educational cooperation, and youth exchanges to foster mutual understanding and friendship. This initiative is part of a broader strategy to deepen ties between Vietnam and Japan across various sectors. Vietnam News, July 23
CCP may upgrade Taiwan policy body: report. The Chinese Communist Party (CCP) is likely to upgrade its Taiwan policy group to a committee-level body, according to a report commissioned by Taiwan's Mainland Affairs Council. This change, driven by Chinese President Xi Jinping, aims to centralize and strengthen Taiwan-related efforts. The report suggests that Taiwanese authorities should enhance research on Xi and the CCP to prepare for potential increased pressure and unified leadership from Beijing. Chen Yu-fu and William Hetherington, Taipei Times, July 23
S. Korea discussed as potential Quad working group partner: U.S. official. South Korea has been considered as a potential partner for issue-specific working groups within the Quad, consisting of the U.S., Australia, Japan, and India. Camille Dawson, U.S. Deputy Assistant Secretary of State, noted discussions are ongoing, with no clear progress yet. South Korea has shown interest in cooperating on climate change and emerging technologies. The Quad prioritizes solidifying internal cooperation before expanding partnerships. Song Sang-ho, Yonhap News Agency, July 23
Deal or no deal? China and Philippines at odds over Second Thomas Shoal resupply agreement. China and the Philippines are disputing the specifics of a recent agreement on resupply missions to Second Thomas Shoal. China insists on conditions such as the removal of the BRP Sierra Madre and prior notification, which the Philippines denies agreeing to. The Philippines has not carried out any resupply missions since a confrontation with the Chinese coastguard last month, during which eight Philippine sailors were injured. Laura Zhou, South China Morning Post, July 23
India’s Modi focuses on jobs creation in first budget after winning polls. Indian Prime Minister Narendra Modi's government presented a budget focusing on job creation and economic growth. Finance Minister Nirmala Sitharaman announced measures including a $24 billion job creation package, $18 billion for agriculture, and $133 billion for infrastructure. The budget also provides tax cuts for corporations and increased support for coalition partner states Andhra Pradesh and Bihar. Modi emphasized the budget's role in propelling India towards becoming the world's third-largest economy. Sheikh Saaliq, AP News, July 23
Bastille Day reception in Laos highlights Franco-Lao diplomatic ties. The French Embassy in Laos hosted a Bastille Day reception celebrating French National Day and the strong diplomatic relationship between France and Laos. The event featured speeches, cultural performances, and emphasized cooperation in education, health, and environmental protection. French Ambassador to Laos, Siv-Leng Chhuor, praised the enduring partnership and commitment to strengthening bilateral ties. Phontham Visapra, The Laotian Times, July 23
Sirens sound, streets deserted as Taiwan simulates Chinese missile strike. Sirens rang out and streets emptied in Taipei during an annual air-raid exercise simulating a Chinese missile attack. The Wan'an drill included mandatory street evacuation drills, effectively shutting down northern Taiwan for 30 minutes. Amid increasing Chinese military pressure, Taiwan's President Lai Ching-te emphasized the country's readiness to protect itself. The civil defense drills coincided with Taiwan's Han Kuang war games, which were scaled back due to Typhoon Gaemi. Fabian Hamacher and Ann Wang, Reuters, July 23
Singapore June core inflation at 2.9% y/y, lowest in more than 2 years. Singapore's key consumer price index rose 2.9% in June from a year earlier, the lowest since March 2022 and below economists' forecasts of 3.0%. The headline inflation rate increased by 2.4%, the lowest since August 2021. The Monetary Authority of Singapore is expected to keep its monetary policy unchanged due to potential inflation risks from geopolitical tensions. Core inflation is projected to ease further in Q4 2023, reaching around 2% by 2025. Xinghui Kok, Reuters, July 23
Ruling party set to hold national convention to pick new leader. The ruling People Power Party (PPP) is holding a national convention to elect a new leader following its defeat in April's parliamentary elections. Former interim leader Han Dong-hoon is leading the race, with Rep. Na Kyung-won, former Land Minister Won Hee-ryong, and Rep. Yoon Sang-hyun as contenders. The party has revised its rules to include public opinion polls in the election. The winner will be announced around 4:40 p.m., with a runoff on July 28 if needed. Yi Wongju, Yonhap News Agency, July 23
Vietnamese deputy FM attends ASEAN Senior Officials Meeting in Laos. Vietnamese Deputy Foreign Minister attended the ASEAN Senior Officials Meeting in Laos, focusing on regional cooperation and preparation for upcoming ASEAN summits. Discussions included enhancing political, security, and economic collaboration among member states. The meeting also addressed initiatives to strengthen the ASEAN Community and promote sustainable development and stability in the region. Vietnam News, July 23
Saudi and Chinese companies to cooperate on wind power projects in Uzbekistan. Saudi Arabian and Chinese companies have agreed to collaborate on wind power projects in Uzbekistan. The cooperation aims to enhance the development of renewable energy sources in the Central Asian country. The partnership involves constructing wind power plants to boost Uzbekistan's energy capacity and sustainability. This agreement aligns with Uzbekistan's strategy to diversify its energy mix and reduce dependence on fossil fuels, while also fostering stronger economic ties with Saudi Arabia and China. The Times of Central Asia, July 23
Blinken to make clear US priority on Asia intact in upcoming trip. U.S. Secretary of State Antony Blinken will reaffirm the United States' commitment to prioritizing Asia during his upcoming trip to the region. The visit aims to strengthen alliances and partnerships, focusing on security, economic growth, and addressing regional challenges. Blinken will visit key allies, including Japan and South Korea, to discuss shared interests and strategies for maintaining regional stability. He will address concerns about China's growing influence and North Korea's nuclear program, emphasizing the importance of a coordinated response. Kyodo News, July 23
Long Form
Paparo Leads Delegation to Papua New Guinea. INDOPACOM Commander Paparo led a high-level US delegation to Papua New Guinea. The delegation included senior US officials like Dr. Mira Rapp-Hooper and Daniel Krittenbrink. Key focuses were on strengthening diplomatic ties, improving security cooperation, and increasing US aid to support PNG's development and stability, balancing China's growing influence in the region. Connor Fiddler,
, July 23Why Cash Alone Won't Solve Japan's Baby Deficit. Japan's declining birth rate, with a fertility rate of 1.26 in 2022, shows the limitations of financial incentives alone. Despite government efforts, including monetary aid, the birth rate continues to fall. Structural issues like outdated policies, lack of support for working parents, and insufficient childcare infrastructure need addressing to make a meaningful impact. Enhancing women's labor participation and revising these policies are crucial for long-term solutions. Yasuo Takao, East Asia Forum, July 23
Mongolia's MPP Maintains Power with Strategic Gains. The Mongolian People's Party (MPP) has successfully maintained its grip on power by implementing measures to address corruption and improve economic stability. Despite facing challenges like debt and corruption, the MPP declared 2023 as the year of fighting against corruption, introducing measures to protect whistle-blowers, eliminate cronyism, and enhance transparency. Additionally, the MPP increased salaries and pensions to counter rising inflation. However, the party struggles with implementing these measures effectively, as many corruption cases involve its own members. Julian Dierkes, East Asia Forum, July 23
The Risks of China’s Loans to Uzbekistan. China has loaned $2.2 billion to Uzbekistan through the China Development Bank, raising concerns over the terms and long-term implications. The loans often require the use of Chinese equipment and contractors, limiting local economic benefits and technological autonomy. If Uzbekistan cannot repay the debt, it risks losing control over strategic assets, as seen in neighboring countries. Additionally, corruption associated with these large-scale financial operations further undermines potential developmental benefits. Anastasia Galimova, Yura Park, Ch.Sabyrbek, Navruz Karimov, The Diplomat, July 23
What Explains the Declining Reputation of Higher Education in Uzbekistan? The reputation of higher education in Uzbekistan is declining due to low job prospects for graduates, the proliferation of private universities, and systemic corruption. Many students are opting for international education or alternative career paths. Enrollment numbers have surged, but the quality of education has not kept pace, leading to skepticism about the value of a university degree among the youth. Niginakhon Saida, The Diplomat, July 23
Modi Government Focuses on Jobs Creation in First Budget After Winning Polls. India's newly formed government under Prime Minister Narendra Modi has presented a budget prioritizing job creation and economic growth. The budget includes a $24 billion package for job creation over five years, increased spending on small and medium-sized business loans, and $18 billion for agriculture and farm technology. It also allocates $133 billion for infrastructure projects. The budget aims to support economic stability, address unemployment, and secure coalition partners' support. Sheikh Saaliq, The Diplomat, July 23
What North Korea's Inflated Grain Prices Reveal About Persistent Food Insecurity. North Korea's grain prices have surged, reflecting ongoing food insecurity despite fading famine fears. Food prices, elevated since late 2019, continue to strain households as incomes remain below pre-pandemic levels. This situation shows the persistent economic pressures and the country's struggle to stabilize food supply and prices. Peter Ward, NK News, July 23
How a Leadership Crisis is Undermining South Korea’s Human Rights Watchdog. The National Human Rights Commission of Korea (NHRCK) is facing a credibility crisis as Chairperson Song Doo-hwan's term nears its end. Concerns arise over the potential appointment of an unfit successor, with current commissioners Lee Choong-sang and Kim Yong-won at the center of controversy due to actions that undermine the commission's principles. This leadership turmoil highlights issues in the political appointment process, jeopardizing the watchdog's integrity and effectiveness. Raphael Rashid, Korea Pro, July 23
Malaysian State Governments Can Do More, and Get More Taxes. Malaysian state governments are advocating for a greater share of tax revenue from the federal government. The current fiscal imbalance, where states rely heavily on land-based revenues, is unsustainable. Proposals suggest transferring social welfare and consumption tax responsibilities to state governments to align revenue with local service delivery needs. This change could enhance fiscal coherence and support sustainable development, provided there is a corresponding shift in governmental roles and responsibilities. Lee Hwok-Aun, Fulcrum, July 23
Myanmar’s Trade Takes a Turn for the Worse. Since Myanmar's 2021 coup, the country has faced deteriorating trade conditions due to extensive trade regulations, conflict, and foreign exchange controls. Although exports surged in 2022, this growth was unsustainable, driven by non-renewable resources and currency depreciation. In 2023, exports and port traffic declined sharply, with reduced garment and jade exports. The situation worsens with fewer capital imports and workforce reductions due to outmigration. These trends indicate a lasting economic downturn that the current regime is unlikely to reverse. Jared Bissinger, Fulcrum, July 23