News
Southeast Asian diplomats meet with China as friction mounts over Beijing’s sweeping maritime claims. Top diplomats from Southeast Asia met with China's foreign minister in Laos to discuss escalating tensions over Beijing's expansive maritime claims in the South China Sea. Indonesian Foreign Minister Retno Marsudi warned that a misstep in the region could lead to significant conflict. The United States and its allies regularly conduct military exercises in the area to assert navigation rights, which China criticizes. ASEAN members emphasized the need to avoid becoming proxies for major powers. Jintamas Saksornchai, AP News, July 26
PM receives Special Envoy of Thai government leader. Vietnamese Prime Minister Phạm Minh Chính welcomed Jakkapong Sangmanee, Thai PM’s Special Envoy, in Hanoi to pay respects following the death of Party General Secretary Nguyễn Phú Trọng. They discussed strengthening Vietnam-Thailand relations, enhancing cooperation in security, trade, tourism, and transport, and promoting connectivity in aviation, road, and rail. Both leaders emphasized the importance of the strategic partnership and committed to further collaboration. Vietnam News, July 26
Japan and China foreign ministers to meet on Friday amid frayed ties. The foreign ministers of Japan and China are scheduled to meet in the South Korean port city of Busan to address the strained relations between the two countries. Japanese Foreign Minister Yoko Kamikawa and her Chinese counterpart Wang Yi will discuss ways to stabilize bilateral ties and address issues such as China's ban on Japanese seafood imports following the Fukushima water release. This meeting follows recent efforts to resume the China-Japan strategic dialogue, which has been on hold since 2020. Kyodo News, July 26
North Korea's economy surged in 2023 after years of contraction, South estimates. North Korea's economy grew by an estimated 3.1% in 2023, marking the first expansion in three years, primarily due to increased trade with China following the easing of COVID-19 border controls. This growth, the highest since 2016, was driven by improvements in industrial output, construction, and agriculture, despite ongoing economic sanctions. North Korea's trade volume surged 74.6% to $2.77 billion, with exports and imports also seeing significant increases. Jihoon Lee, Reuters, July 26
MAS keeps monetary policy on hold for fifth time in a row; inflation expected to moderate. The Monetary Authority of Singapore (MAS) maintained its current monetary policy, marking the fifth consecutive time without change. Inflation is projected to moderate, with overall inflation expected to average 2-3% this year, down from the previous forecast of 2.5-3.5%. The MAS expects core inflation to decrease more noticeably in the fourth quarter and into 2025 due to easing cost pressures and lower prices of imported goods. Abigail Ng, Channel News Asia, July 26
Srettha, MFP face reckoning. Political tensions are expected to rise as the Constitutional Court rules on cases involving Prime Minister Srettha Thavisin and the opposition Move Forward Party (MFP). The MFP faces possible dissolution for its efforts to change Section 112 of the Criminal Code. PM Srettha could be removed from office due to the controversial appointment of Pichit Chuenban, an ex-convict. The court's decisions, expected in August, will significantly impact Thailand's political landscape. Mongkol Bangprap and Achairith Yonpiam, Bangkok Post, July 26
DFA reiterates PH resolve to end sea row peacefully. The Philippines' Department of Foreign Affairs (DFA) has reaffirmed its commitment to resolving the territorial disputes in the West Philippine Sea through peaceful means. During his State of the Nation Address, President Ferdinand Marcos Jr. emphasized the importance of diplomacy and international cooperation. The DFA is focused on de-escalating tensions and pursuing diplomatic solutions to maintain regional stability. Bernadette E. Tamayo, The Manila Times, July 26
Laos-Vietnam pact promises top-tier tourism, education. Laos and Vietnam have signed a cooperation agreement aimed at enhancing collaboration in tourism and education. The pact focuses on increasing cultural exchanges, creating joint educational programs, and launching tourism development initiatives. This agreement is part of broader efforts to strengthen bilateral relations and promote sustainable development in both sectors. Key goals include boosting mutual understanding, improving educational quality, and attracting more tourists to both countries through coordinated efforts. Phontham Visapra, The Laotian Times, July 26
India and China agree to work urgently to achieve the withdrawal of troops on their disputed border. India and China have agreed to expedite the withdrawal of troops stationed along their disputed Himalayan border. Indian Foreign Minister Subrahmanyam Jaishankar and Chinese Foreign Minister Wang Yi met on the sidelines of ASEAN meetings in Laos to discuss resolving outstanding issues along the Line of Actual Control. The two countries have been in a standoff since a deadly clash in 2020. Both sides stressed the importance of an early resolution to restore normalcy in their relations. AP News, July 26
Rival parties still at odds over special probe bills. The main opposition Democratic Party (DP) urged newly elected ruling People Power Party (PPP) leader Han Dong-hoon to support a special counsel probe into the military's response to a Marine's death last year. DP floor leader Park Chan-dae emphasized that the public overwhelmingly supports the bill. Han maintained that his position on the bill remains unchanged and highlighted the importance of the democratic process. The DP also called for a probe into first lady Kim Keon Hee's alleged involvement in stock price manipulation. Yi Wonju, Yonhap News Agency, July 26
Sri Lanka will hold presidential election on Sept. 21, its first since declaring bankruptcy in 2022. Sri Lanka's independent elections commission announced that the presidential election will be held on September 21, with nominations accepted on August 15. This election is seen as a crucial test for President Ranil Wickremesinghe's efforts to address the country’s severe economic crisis. Wickremesinghe, opposition leader Sajith Premadasa, and Anura Dissanayake, leader of a leftist party, are expected to run. The election follows Sri Lanka's 2022 bankruptcy declaration and aims to support debt restructuring and financial reforms under an IMF bailout program. Bharatha Mallawarachi, AP News, July 26
China’s crippling debt levels seen worsening as government measures focus on ‘buying time’. China's rescue plan to address its local government debt crisis has provided only temporary solutions, with default risks remaining high and the debt expected to grow over the next two years, according to a new S&P Global Ratings report. Measures such as debt-swap programs and loan restructuring are seen as temporary fixes that fail to address the weak fundamentals of local government financing vehicles (LGFVs). The debt, which grew rapidly post-2008, is expected to continue rising at a mid-to-high single-digit level annually. Amanda Lee, South China Morning Post, July 26
Kazakhstan intensifies efforts to combat extremism. In response to growing terrorism concerns, Kazakhstan has detained over 30 people this year and empowered the Committee for National Security (KNB) to monitor the internet and tighten religious laws. Recent operations include raids on extremist groups and detaining individuals for terrorist activities. The KNB has also targeted online recruitment and propaganda, with several arrests and convictions. These measures follow incidents involving Kazakh citizens linked to international terrorist groups. Bruce Pannier, The Times of Central Asia, July 26
Party official hosts delegation of Dominican Republic's MIU Party. Lê Hoài Trung, Chairman of the CPV Central Committee’s Commission for External Relations, received a delegation from the United Left Movement (MIU) Party of the Dominican Republic, led by Marthe Pevez. The visit was to attend the state funeral of General Secretary Nguyễn Phú Trọng. Both parties emphasized the importance of strengthening bilateral relations, coordinating stances at international forums, and enhancing cooperation between Latin America and Asia. Vietnam News, July 26
Move Forward Party submits 3 bills for reform. The Move Forward Party (MFP) introduced three bills to mitigate the effects of the military regime's orders, prevent future coups, and abolish the junta-backed 20-year national strategy. The bills propose abolishing Section 279 of the charter, canceling non-beneficial NCPO orders, and implementing anti-coup measures. MFP list-MP Parit Wacharasindhu emphasized the need for urgent amendments while waiting for a new charter. Aekarach Sattaburuth, Bangkok Post, July 26
China the largest market for Kazakhstan’s agricultural products. Kazakhstan's agricultural exports to China have surged, reaching $1 billion in 2023 and $380 million in the first five months of 2024. Major exports include grain and oilseeds. Kazakhstan signed protocols with China for exporting 27 types of agricultural products, including livestock and crop products. The agriculture ministry aims to double exports by 2029, focusing on deeply processed products. Kazakhstan is among the top 25 global food exporters. Sergey Kwan, The Times of Central Asia, July 26
Japan, ASEAN top diplomats vow to boost security ties amid China rise. Japan and ASEAN have pledged to enhance maritime security cooperation in response to China's growing assertiveness in the South China Sea. During the ASEAN-Japan Commemorative Summit, leaders committed to upholding international law and promoting a free and open Indo-Pacific region. Japanese Prime Minister Fumio Kishida emphasized the importance of strategic ties and announced a security assistance agreement with Malaysia, providing 400 million yen for maritime equipment. This move is part of Japan's broader efforts to bolster regional security and counterbalance China's influence. Kyodo News, July 26
Myanmar junta puts leaders of old regime under surveillance. Myanmar’s military junta has placed former regime leaders under surveillance to prevent potential opposition movements. This action targets members of the National League for Democracy (NLD) and other political figures from the previous administration. Increased monitoring includes restricted movements and enhanced security measures. This step is part of broader efforts to consolidate power and suppress dissent following the 2021 coup. The Irrawaddy, July 25
N. Korea revs up celebratory mood ahead of 71st anniversary of armistice signing. North Korea announced preparations for a grand celebration of the 71st anniversary of the armistice that ended the 1950-53 Korean War, with leader Kim Jong-un sending gifts to war veterans. The event, marking what North Korea calls Victory Day, will take place in Pyongyang with war veterans, officials, and workers in the munitions industry attending. The Korean Central News Agency (KCNA), a North Korean state media agency, reported that the gifts reflect Kim's desire for veterans to remain a source of strength for the nation. Kim Soo-yeon, Yonhap News Agency, July 26
Long Form
Amazon Poised to Disrupt Japan's Pharmacy Sector. Amazon is preparing to disrupt Japan’s pharmacy industry, leveraging its expertise in e-commerce and logistics to enter the market. The company's acquisition of PillPack, a U.S. online pharmacy service, shows its approach to revolutionizing pharmaceutical distribution. PillPack's model simplifies medication management by delivering pre-sorted doses to patients, ensuring timely and accurate medication intake, which Amazon aims to replicate in Japan. Additionally, Amazon's established infrastructure in shipping and delivery positions it well to meet the logistical challenges of the pharmacy sector. Mark Kennedy,
, July 26The U.S. DOD’s 2024 Arctic Strategy is a Welcome Respite from Fatalistic Views on China. The U.S. Department of Defense’s 2024 Arctic Strategy offers a balanced perspective on China, avoiding overly adversarial language. The strategy focuses on cooperation with allies and acknowledges the strategic importance of China in the Arctic without depicting it as an inevitable adversary. This contrasts with recent U.S. defense policies, aiming for a pragmatic and transparent stance to reduce misinterpretation and escalation. Jessica Martin, ICAS, July 25
China Plays Word Games and War Games with Taiwan. China is employing a dual strategy of rhetoric and military exercises to assert its claims over Taiwan. The Chinese government frequently uses provocative language to assert its sovereignty over Taiwan, coupled with military maneuvers near the island to demonstrate its capabilities. This strategy aims to intimidate Taiwan and signal to the international community China's determination to control the region. Despite these aggressive tactics, Taiwan continues to resist, maintaining its autonomous governance and seeking support from global allies. Tzu-Chieh Hung, East Asia Forum, July 27
Supply Chain Changes Need a Globally Coherent Policy Response. The restructuring of global supply chains is influenced by factors such as the COVID-19 pandemic, climate change, automation, and geopolitical tensions. These disruptions show the need for a globally coherent policy response to ensure resilience and stability in supply chains. A coordinated approach can help mitigate risks and ensure the continued flow of goods across borders. Effective policy measures should address trade liberalization, protectionist tendencies, and the integration of environmental and labor standards to support sustainable economic growth. Keith Rockwell, East Asia Forum, July 26
Fighting North Korean Fire with Firewalls. South Korea is improving its cybersecurity defenses to counter North Korean cyberattacks. North Korea has increasingly used cyber warfare as a tool, targeting South Korean infrastructure, businesses, and government institutions. In response, South Korea is investing in advanced technologies and international collaborations to bolster its cyber defense capabilities. This aims to mitigate the impact of North Korean cyber operations and protect critical digital assets. Yeji Chung, East Asia Forum, July 26
Growth Without Progression: The Contradictions Facing China’s Urban Youth. China's urban youth face a multitude challenges due to economic pressures, high competition for jobs, and changing societal expectations. Popular trends like "lying flat" and "involution" reflect disillusionment with traditional success paths. Many young Chinese feel that hard work no longer guarantees success, leading to alternative lifestyles and coping mechanisms. Despite these difficulties, there is a strong focus on self-development and well-being among Gen Z. Addressing these contradictions is crucial for fostering a resilient and innovative future workforce. Yi Jing Fly and Laura Grünberg, The Diplomat, July 26
Germany Is Phasing out Chinese Tech From 5G Networks. Is It the Right Call? Germany has decided to exclude Chinese firms Huawei and ZTE from its 5G networks by 2029, citing cybersecurity concerns and aligning with broader Western strategies. This aims to protect critical infrastructure from potential espionage and cyber attacks. This decision, however, may strain economic ties with China, Germany's largest trading partner, and increase costs for telecom providers and consumers. The phase-out reflects a growing European and transatlantic shift away from Chinese technology. Aparna Divya, The Diplomat, July 26
Monitoring China’s Mineral Stockpiling and Understanding Its Military Implications. China’s strategic mineral stockpiling, managed by the National Food and Strategic Reserves Administration, includes critical minerals like copper and tantalum. This activity raises concerns about potential military preparations, particularly regarding Taiwan. Monitoring indicators include direct purchases, government tenders, leaks, market data, and import spikes. While stockpiling might also be driven by economic motives, its secrecy complicates understanding the true intent. Historical parallels suggest the need for close scrutiny. Gregory Wischer and Morgan Bazilian, The Diplomat, July 26
North Korea’s Market Dilemma: Balancing Control and Revenue Generation. North Korea is attempting to balance controlling its markets while generating revenue. Recent measures suggest a shift towards stimulating market activity, such as easing restrictions on street vendors and increasing market fees to boost government funds. This pragmatic approach aims to address economic challenges while maintaining state control. The evolving policies reflect efforts to adapt to economic realities and support regional development initiatives. Lee Sang Yong, The Diplomat, July 26
Japan isn't the 'robotopia' Apple TV's 'Sunny' portrays. Apple TV+'s show "Sunny" exaggerates Japan's robotics capabilities, contrasting with the country's current technological realities. While Japan is renowned for its robots, the portrayal of advanced, human-like robots in everyday life is more fiction than fact. The show, set in Kyoto and involving a helper robot, taps into stereotypes rather than reflecting actual technological advancements and challenges in Japan. Gearoid Reidy, The Japan Times, July 25
The Athletes Striving to Win North Korea Sporting Glory at the Paris Olympics. North Korea returns to the global sports stage at the Paris Olympics with a 16-athlete team after missing the Tokyo 2021 games. Despite the absence of their powerhouse weightlifters, they aim for success in wrestling, table tennis, and other sports. Shreyas Reddy, NK News, July 26
North Korea Expands Factories Making Anti-Tank Missiles Russia Reportedly Wants. North Korea is increasing its production capabilities for anti-tank missiles, likely to meet Russian demands amid their growing arms trade. Satellite imagery reveals upgrades at two factories in the northwest and the construction of new underground facilities for potential storage. This expansion shows North Korea's efforts to boost its military production capabilities. Colin Zwirko, NK News, July 26
South Korean Court’s Landmark LGBTQ+ Rights Ruling Sparks Debate and Hope. South Korea’s Supreme Court ruled on July 18 that denying health insurance coverage to same-sex spouses is discriminatory. This landmark decision affirms a lower court's ruling, marking a step for LGBTQ+ rights in the country. Despite this progress, the LGBTQ+ community still faces widespread discrimination and legislative challenges. The ruling demonstrates the ongoing struggle for equality and the need for further legal reforms. Joon Ha Park, Korea Pro, July 26
Is China Ready to Rethink Its Approach to Minor Crimes? China's legal system is increasingly focusing on misdemeanors due to economic improvements and advanced policing technologies. However, this has led to issues such as overburdened courts and lasting repercussions for minor offenders. Recent measures, including new standards for drunk driving cases, suggest a move towards a more flexible, prevention-focused approach. The inclusion of "misdemeanor governance" in official reports indicates a potential shift away from punishment-heavy policies. Zhu Guangxing, Sixth Tone, July 26
Southeast Asian Perceptions of China: Beijing’s Growing Power is Recognised, but Feared. A multi-year survey reveals Southeast Asia’s nuanced views on China. While acknowledging China's economic and strategic influence, many in the region express fear and skepticism about Beijing's intentions. Concerns about U.S. leadership amidst its domestic challenges have led some Southeast Asians to prefer aligning with China. However, there is still strong support for U.S. leadership in upholding international law. Southeast Asians urge China to peacefully resolve territorial disputes and respect sovereignty to improve relations. Lee Sue-Ann and William Choong, Fulcrum, July 26
Strategies to Boost the Inclusion of ASEAN Small and Medium-Sized Enterprises in Global Value Chains. ASEAN SMEs face challenges in integrating into global value chains (GVCs) due to limited resources and market access. Strategies to increase their participation include inticing foreign direct investment (FDI), improving technological capabilities, and providing targeted support through public policies. Digitalization and better access to financing options, such as FinTech and venture capital, are crucial. Regional initiatives like the ASEAN SME Policy Index monitor and guide effective policy implementation to support SME growth and integration into GVCs. Mima Sefrina, Fulcrum, July 26
Time to Rebalance the Wheels in Thailand’s Green Automotive Policy. Thailand's incentives for Chinese electric vehicles (EVs) are causing industry shifts, leading Japanese manufacturers to cease production in the country. The EV 3.0 policy, providing subsidies and lower excise taxes for locally manufactured EVs, favors Chinese imports under the ASEAN-China Free Trade Area. The Thai government must reconsider its approach to support both consumer choice and industrial transformation. Archanun Kohpaiboon, Fulcrum, July 26