Asia Daily: July 25, 2024
News
Plan for China flood emergencies as risk rises, Politburo Standing Committee tells cadres. China's Communist Party leaders, led by President Xi Jinping, instructed cadres to prevent infrastructure failures and prepare for flood emergencies. The Politburo Standing Committee emphasized checking for risks in critical infrastructures like water diversion canals, gas pipelines, and urban spaces. Recent disasters include a dyke breach at Dongting Lake and a deadly bridge collapse in Shaanxi province. The leadership ordered vigilant disaster monitoring, rapid response, and evacuation plans, prioritizing people's safety and repairing damaged infrastructure. Liu Zhen, South China Morning Post, July 25
North Korean hackers stealing military secrets, say US and allies. North Korean hackers, identified as Anadriel or APT45, have been conducting a global cyber espionage campaign targeting defense and engineering firms to support North Korea’s nuclear weapons program, according to the U.S, UK, and South Korea. Targets included NASA and U.S. military bases. The U.S. charged Rim Jong Hyok for hacking and laundering funds from ransomware attacks. The FBI offers a $10 million reward for information leading to his arrest. James Pearson and Sarah N. Lynch, Reuters, July 25
Kyrgyzstan's capital to switch to Russian gas. Bishkek will transition to using Russian gas for its energy needs starting in 2026. A long-term contract signed by Gazprom Export LLC and Gazprom Kyrgyzstan LLC aims to double gas supplies from 2025 to 2040. The plan includes constructing 250-300 kilometers of gas pipelines annually to connect thousands of homes, addressing current electricity shortages and enhancing heating systems. This initiative is part of a broader strategy to fully gasify residential areas and improve energy efficiency. The Times of Central Asia, July 25
Myanmar violence, South China Sea tensions are top issues as Southeast Asian diplomats meet in Laos. Southeast Asian foreign ministers, along with U.S. Secretary of State Antony Blinken and Chinese Foreign Minister Wang Yi, convened in Laos to discuss Myanmar’s civil war and South China Sea disputes. ASEAN's meeting aims to address Myanmar's ignored peace plan and regional security, including Vietnam's concerns over a new canal and dam projects. Talks also cover China’s assertive actions in the South China Sea and efforts to create a code of conduct. Jintamas Saksornchai, AP News, July 25
De-escalation of WPS tensions likely. The Philippines expects a potential de-escalation of tensions in the West Philippine Sea (WPS) following a recent agreement between the Philippines and China. The agreement aims to ease confrontations over territorial disputes. The Philippine Department of Foreign Affairs highlighted ongoing diplomatic efforts to maintain peace and stability in the region. This development comes amidst continuous efforts to manage maritime security and foster bilateral relations. Franco Jose C. Baroña, The Manila Times, July 25
Taiwan, Thailand agreement to take effect this year: EY. A new bilateral investment agreement (BIA) between Taiwan and Thailand, signed last month, is expected to be effective later this year after approvals by Taiwan’s Executive Yuan and Legislative Yuan. The agreement updates the 1996 version, introducing modern regulations and greater transparency to protect Taiwanese investors. The BIA addresses increased trade and investment, with Thailand becoming a key economic partner for Taiwan, particularly in sectors like electronics and machinery. Chung Li-hua and Jake Chung, Taipei Times, July 25
China, Russia bombers enter Alaska air defence zone in military first: Norad. Chinese and Russian bombers were detected and intercepted in Alaska's Air Defence Identification Zone for the first time on Wednesday, according to Norad. The incident involved two Russian Tu-95 and two Chinese H-6 warplanes, intercepted by US and Canadian fighter jets. This marks the first simultaneous entry of both countries' bombers into the area. Chinese and Russian officials described the mission as a strategic joint patrol, emphasizing it was not targeted at any third party and complied with international law. Seong Hyeon Choi, South China Morning Post, July 25
Bangladesh minister defends govt response to protests amid calls for probe. Bangladesh's Information Minister Hasan Mahmud defended the government’s handling of protests demanding Prime Minister Sheikh Hasina's resignation. Critics have called for an investigation into alleged police violence and the detention of opposition leaders. Mahmud insisted that the government acted lawfully to maintain order, accusing opposition groups of inciting unrest. International human rights organizations have urged for transparency and accountability regarding the government's actions. Al Jazeera, July 25
North Korean charged in cyberattacks on US hospitals, NASA and military bases. North Korean operative Rim Jong Hyok has been indicted for hacking American health care providers, NASA, and U.S. military bases, stealing sensitive data and installing ransomware. The indictment accuses Hyok of laundering the money through a Chinese bank to fund further cyberattacks. The hacks disrupted patient treatments and targeted 17 entities, including NASA and military bases. The malware enabled North Korean military intelligence to obtain critical information, furthering their military aspirations. Nick Ingram, Michael Goldberg, and Heather Hollingsworth, AP News, July 25
Russia deports thousands of Tajik citizens. Over the past six months, Russia has deported approximately 3,400 Tajik citizens due to documentation errors, not political reasons, according to Tajikistan's Civil Aviation Agency director, Habibullo Nazarzoda. Increased security measures followed a terrorist attack in Moscow, involving Tajik citizens. Complaints about entry difficulties into Russia have risen, with many migrants detained at airports and border crossings. Official responses from Tajik and Russian authorities remain unclear. The Times of Central Asia, July 25
India, China agree to approach border issues with urgency. Indian Foreign Minister Subrahmanyam Jaishankar and Chinese counterpart Wang Yi met in Laos during the ASEAN summit, agreeing to resolve border disputes promptly. The leaders emphasized the importance of respecting the Line of Actual Control (LAC) and past agreements, aiming to complete the disengagement process. This meeting follows their recent discussion in Kazakhstan, as both nations continue to manage tensions along their shared Himalayan border. James Pearson and Sarah N. Lynch, Reuters, July 25
China issues rare praise to Philippine president for his ban on Chinese online gambling operators. China commended Philippine President Ferdinand Marcos Jr. for banning Chinese-run online gambling operations, which have been linked to crimes like human trafficking and financial scams. Despite strained relations due to increased U.S. military presence in the Philippines, China's embassy in Manila welcomed the crackdown. The Philippine government is closing over 400 gambling outfits, which employ tens of thousands of Chinese and Southeast Asian nationals, by the end of the year. Jim Gomez, AP News, July 25
President To Lam hosts Chinese envoy. Vietnamese President To Lam met with Chinese Ambassador Xiong Bo to discuss bilateral cooperation. They agreed on enhancing political trust, deepening cooperation in trade, investment, and infrastructure, and maintaining regional peace and stability. President Lam affirmed Vietnam's commitment to working with China on global challenges, while Ambassador Bo expressed China's readiness to strengthen their strategic partnership. Both leaders highlighted shared goals for future development and addressing common issues. Vietnam News, July 25
CDP and DPP exploring prospect of cooperation in upcoming polls. The Constitutional Democratic Party of Japan (CDP) and the Democratic Party for the People (DPP) are discussing potential cooperation for the upcoming House of Representatives election. They aim to challenge the ruling Liberal Democratic Party (LDP), currently embroiled in a slush funds scandal. Key challenges include reconciling the CDP's ties with the Japanese Communist Party (JCP) and policy differences on nuclear power and the Constitution. The Japan Times, July 24
Ethnic armed groups in Myanmar claim capture of regional military headquarters and gem mining center. Ethnic armed groups in Myanmar claimed to have seized Lashio, housing the regional military headquarters, and Mogok, a gem-mining hub. These captures signify major setbacks for Myanmar’s military government. The MNDAA and TNLA have been fighting for autonomy and are allied with the pro-democracy People's Defense Force. The ruling military council denies losing Lashio, stating that fighting continues. Mogok’s capture, if confirmed, represents a significant revenue loss for the junta. Grant Peck, AP News, July 25
Pakistan's finance minister in Beijing to seek debt relief, say sources. Pakistan's Finance Minister Muhammad Aurangzeb arrived in Beijing for discussions on power sector debt relief and IMF-recommended structural reforms. Meetings include reprofiling nearly $15 billion in energy sector debt. As discussions progressed, Pakistan's bonds declined. The IMF recently approved a $7 billion bailout for Pakistan, emphasizing the need to address power theft and distribution losses. Aurangzeb briefed Chinese officials on Pakistan's economic reform efforts and the significance of the IMF deal. Asif Shahzad, Reuters, July 25
Head of Cambodia’s top opposition party hit with $1.5 million judgement for defaming government. Teav Vannol, president of the opposition Candlelight Party, was found guilty of defamation by a Cambodian court and ordered to pay $1.5 million in damages to the government. Vannol, who holds dual Cambodian-U.S. citizenship, was not present for the ruling and is believed to be outside Cambodia. The case stems from comments he made criticizing the government of Prime Minister Hun Manet, claiming democracy had regressed under his leadership. Sopheng Cheng, AP News, July 25
Laos to introduce advanced digital business licensing with e-filing system. Laos will launch a new digital business licensing platform to streamline the application process and reduce paperwork. The initiative, developed by the Lao Ministry of Technology and Communications in collaboration with Saignasith IT Consulting Company, aims to enhance efficiency and transparency. The system will manage license applications, issue permits, and handle fee collection, integrating with the Ministry of Finance's tax system. This modernization supports Laos' national digital economy development plan. Chono Lapuekou, The Laotian Times, July 25
N. Korea sends some 500 trash balloons into S. Korea earlier this week. North Korea launched approximately 500 balloons filled with scrap paper and plastic into South Korea, with some landing on the presidential office compound. The South Korean military responded by broadcasting anti-Pyongyang messages through border loudspeakers. The balloon launches, including one that caused a rooftop fire in Goyang, were retaliations against anti-North leaflets sent by South Korean activists. North Korea has expressed strong opposition to these actions, warning of severe consequences. Lee Minji, Yonhap News Agency, July 25
Long Form
A Warped Hall of Mirrors: US-China Competition and Industrial Policy. China reinforced its focus on industrial policy and advanced manufacturing during its Third Plenum, aiming to dominate future strategic industries. As US-China competition intensifies, both nations are adopting similar policy measures, drawing inspiration from each other. The US has increased state intervention in critical sectors, while China aims for technological breakthroughs and industrial advancement. Persistent policy strategies contrast with the US's potential for policy shifts post-election. Kyle Chan,
, July 25Why Did Xi Jinping Stick to His Guns at China's Third Plenum? At the Third Plenum, Xi Jinping emphasized the need for continuity and stability in China's reform agenda amid growing economic and geopolitical challenges. Xi reiterated the importance of technological advancement, market reforms, and regulatory improvements. Despite international pressure and internal economic slowdowns, he called for unwavering commitment to these reforms to ensure China's long-term growth and global competitiveness. This reflects Xi's strategy to solidify his leadership and address the nation's critical issues in his own way. Neil Thomas, Asia Society, July 25
Why Taiwan Should Embrace Multiculturalism. Taiwan faces a declining birth rate and labor shortages, prompting the need for migrant workers from Southeast Asia. These workers fill roles in manufacturing, construction, agriculture, and care sectors. To support this migration, Taiwan has implemented policies promoting multiculturalism, including language education and extended work visas. Addressing social tier issues and embracing diversity can distinguish Taiwan from China and strengthen its international relationships. Grant Wyeth, Lowy Institute, July 26
Child Marriage in Southeast Asia: When a Harmful Practice Becomes an International Crime. ASEAN is urged to tackle child marriage, which often leads to human trafficking. Child marriage persists in Southeast Asia due to cultural practices, economic vulnerability, and legal loopholes. Effective measures require comprehensive legislation, community-based efforts, and international cooperation. Establishing and enforcing laws that criminalize all child marriage and align with human rights standards is crucial. Leisha Lister and Indira Rosenthal, Lowy Institute, July 25
Equipping the Japan-U.S. Alliance to Handle China's Disinformation Operations. China’s use of disinformation tactics has increased, targeting Japan and the U.S. through coordinated campaigns. The U.S. and Japan should bolster their alliance to counter these tactics by monitoring disinformation activities, developing a common strategy, and building societal resilience. Cooperative efforts can help address and mitigate the impacts of Chinese disinformation, strengthening the alliance's ability to respond to such operations. Jeffrey W. Hornung and Mina Pollmann, RAND, July 24
Japan's Response to Campaign Violence. Following violent attacks on political figures, Japan has increased security measures for election campaigns. The assassination of former Prime Minister Shinzo Abe and a bomb attack on Prime Minister Fumio Kishida highlighted vulnerabilities. Enhanced security protocols have been implemented to protect political leaders, balancing the need for safety with maintaining democratic engagement. The National Police Agency now requires detailed security plans for VIPs. Sheila A. Smith, Council on Foreign Relations, July 25
Chinese E-Commerce Platforms Are Poised to Rival Amazon's Empire. Chinese e-commerce platforms like Temu, Shein, and TikTok Shop are rapidly expanding their presence in Western markets. These platforms leverage advanced logistics, competitive pricing, and effective social media strategies to compete with Amazon. Despite regulatory challenges and scrutiny from Western governments, their innovative approaches and efficient operations have positioned them as formidable competitors in the global e-commerce landscape. John Deighton and Leora Kornfeld, East Asia Forum, July 25
India Must Embrace Security Coalitions. India is encouraged to join security coalitions to address regional power imbalances and enhance its strategic position. As China's influence grows and the U.S. role in the Indo-Pacific becomes uncertain, India's participation in coalitions like the Quad and AUKUS is seen as crucial. These alliances can help India and other middle powers manage security challenges and contribute to a multipolar Indo-Pacific order. By forming and strengthening these coalitions, India can better navigate geopolitical shifts and safeguard its interests. Rahul Jaybhay, East Asia Forum, July 25
Cutting Losses: Southeast Asia’s Crackdown on Online Gambling. Southeast Asia is intensifying efforts to curb online gambling due to its links to criminal activity and financial losses. Countries like the Philippines and Cambodia, once hubs for the industry, are reversing policies to ban online gambling, driven by concerns over crime and social issues. Regulatory challenges persist, and cooperation with ASEAN and international bodies is essential for effective enforcement. The U.S. is encouraged to support these regional efforts to address the broader impacts of online gambling. Amelie De Leon, CSIS, July 25
Myanmar Is Running Out of Gas. What Happens Next? Myanmar's energy crisis, exacerbated by political instability, has led to a drop in gas production and electricity generation. The Yadana gas field's depletion and the junta's poor economic management have worsened the situation. Sustainable recovery requires a return to civilian rule, investment in renewable energy, and equitable energy arrangements with ethnic states. The failure of military governance has left Myanmar with severe energy challenges, necessitating urgent and strategic reforms. Guillaume de Langre, The Diplomat, July 25
North Korea Salutes Its ‘Victory’ in Korean War to Bash US. North Korea marked the 71st anniversary of the Korean War's end by promoting narratives of its victory and condemning U.S. actions, including alleged war crimes and ongoing aggression. The regime also emphasized efforts to complete tourism projects and called for increased foreign travel. Kim Jong Un also extended condolences for the death of former Vietnamese President Nguyen Phu Trong. Seung-Yeon Chung, NK News, July 26
North Korea Upgrading Over 10 Weapons Factories in Sweeping Production Push. North Korea is improving over ten weapons factories to boost missile, launcher, and surface-to-air missile production. Satellite imagery indicates a significant push to expand its military capabilities and potentially increase arms exports. Colin Zwirko, NK News, July 25
South Korea’s Opposition Party Risks Public Trust with Impeachment Hearings. The Democratic Party (DP) in South Korea faces public trust issues as it pursues impeachment hearings against President Yoon Suk-yeol, focusing more on allegations against other officials and the first lady. The ruling People Power Party (PPP) accuses the DP of constitutional violations. The hearings began after a viral petition gained over 1.43 million signatures, exceeding the threshold for parliamentary discussion. Jeongmin Kim, Korea Pro, July 25
Nguyen Phu Trong’s Foreign Policy Legacy: Shaping Vietnam’s Great Power Balance. Nguyen Phu Trong, former General Secretary of the Communist Party of Vietnam, skillfully managed relations with major powers through "bamboo diplomacy." His tenure saw Vietnam maintaining stable ties with China despite maritime disputes, establishing a comprehensive partnership with the U.S., and fostering relations with traditional partners. Trong's approach emphasized pragmatism over ideology, crucially shaping Vietnam's foreign policy landscape. Phan Xuan Dung, Fulcrum, July 25
Indonesia's Largest Muslim Organisation Mired in Controversy After Youth Cadres’ Visit to Israel. Nahdlatul Ulama (NU), Indonesia’s largest Muslim organization, faces backlash after five youth members visited Israel, meeting Israeli President Isaac Herzog. The visit sparked public outrage due to ongoing Israeli-Palestinian tensions. NU's leadership distanced itself from the visit, leading to firings and resignations of involved members. This controversy, along with recent criticism over NU's interest in mining licenses, risks damaging NU's public reputation. A'an Suryana and Syafiq Hasyim, Fulcrum, July 25