China
China, U.S. to extend tariff pause at Sweden talks by another 90 days: sources. U.S. and Chinese officials met for over five hours in Stockholm to negotiate a 90-day extension of their tariff and export control truce, aiming to avoid a breakdown in trade before the August 12 deadline. Treasury Secretary Scott Bessent and Vice Premier He Lifeng led the delegations. David Lawder, Greta Fondahn, Marie Mannes, Janis Laizans, and Maria Martinez, Reuters, July 28
Trump says he is not seeking summit with Xi but may visit China. President Donald Trump said he is not pursuing a summit with Chinese President Xi Jinping but acknowledged he may visit China at Xi’s invitation, which he confirmed had been extended. Discussions between aides about a potential autumn meeting continue, possibly alongside the APEC summit. Trump’s remarks come amid ongoing trade talks and high tensions between the two powers. Ismail Shakil, Reuters, July 29
China backs Brazil as looming Trump tariffs escalate trade tensions. China offered to deepen economic cooperation with Brazil and support global trade “fairness” days before new U.S. tariffs on Brazilian exports take effect. Chinese Foreign Ministry spokesman Guo Jiakun pledged multilateral coordination with Brazil and other BRICS nations through the WTO framework. Igor Patrick, South China Morning Post, July 28
Japan
Japan PM Ishiba faces renewed calls to resign over election loss. Prime Minister Shigeru Ishiba is under growing pressure to resign after the ruling coalition lost its Upper House majority in the July 20 election. Liberal Democratic Party lawmakers criticized Ishiba’s leadership in a tense four-hour meeting, citing the party’s slush fund scandal and declining public trust. Ishiba refused to step down, citing responsibility to avoid a power vacuum and ensure trade agreement implementation with the U.S. Kyodo News, July 28
Poll: 47% of voters say Ishiba can stay despite election loss. An Asahi Shimbun poll found that 47% of voters believe Prime Minister Shigeru Ishiba does not need to resign after his coalition’s Upper House defeat, while 41% say he should. Among LDP supporters, 70% favor him staying. Most respondents blame the broader party rather than Ishiba individually for the loss. Cabinet approval dropped to 29%, while 59% want the consumption tax rate lowered. The Asahi Shimbun, July 28
Poll: 48% of voters say ‘Japanese First’ works for them. An Asahi Shimbun poll found that 48% of Japanese voters support Sanseito’s “Japanese First” policy, while 41% oppose it. Support was strongest among men and voters under 30, with 71% of young respondents backing the platform. Sanseito’s election gains, rising from one to 14 Upper House seats, were welcomed by 52% of voters, though concerns persist about its antiforeign positions. The Asahi Shimbun, July 28
South Korea
South Korea in push for U.S. trade deal to offer package including shipbuilding tie-up. South Korean officials are seeking to secure a trade deal with the United States before an August 1 deadline by proposing a comprehensive package, including cooperation in shipbuilding. Finance Minister Koo Yun-cheol will meet Treasury Secretary Scott Bessent in Washington to present the plan, backed by Hanwha Group’s proposal to expand its U.S. shipyard operations. Jihoon Lee, Jack Kim, Joyce Lee, Hyunjoo Jin, and Ju-min Park, Reuters, July 29
Ex-President Yoon snubs questioning by special counsel in probe into ex-first lady. Former President Yoon Suk Yeol, currently detained over his failed martial law bid, refused to appear for questioning by special counsel Min Joong-ki’s team investigating allegations involving his wife, Kim Keon Hee. Yoon is suspected of interfering in the People Power Party’s 2022 by-election nominations and violating election law during a 2021 primary debate. The counsel may consider forcibly bringing him in. Chae Yun-hwan, Yonhap News Agency, July 29
North Korea
North Korea says Kim-Trump ties are ‘not bad’ but it’s not giving up its nuclear weapons. Kim Yo Jong stated that while her brother’s relationship with Donald Trump is “not bad,” it does not justify renewed denuclearization talks. She urged the U.S. to accept North Korea as a nuclear state and indicated future negotiations would require incentives for partial disarmament. Hyung-jin Kim, Associated Press, July 28
North Korea shutters exchange centers amid currency crisis. North Korea has begun consolidating or shutting down foreign currency service centers near markets and retail shops due to its inability to manage soaring exchange rates. Euros, yen, and rubles are now handled only by official banks, and dollar availability has sharply declined, with daily transaction limits slashed. Seulkee Jang, Daily NK, July 29
Thailand
Thailand and Cambodia border calm as military-level talks postponed. The Thailand–Cambodia border remained quiet following a ceasefire, though Thai officials reported Cambodian troop violations in five locations early Tuesday. Acting Thai Prime Minister Phumtham Wechayachai downplayed the incidents and confirmed ongoing contact with Cambodian counterparts. Military talks, scheduled for the morning, were postponed without a new time set. Panu Wongcha-Um and Panarat Thepgumpanat, Reuters, July 29
Thai army condemns Cambodia for breaking ceasefire agreement. The Thai army accused Cambodia of violating a ceasefire that began at midnight by firing into five Thai border areas, including Chong An Ma and Prasat Ta Kwai. Army spokesman Maj. Gen. Winthai Suvaree said the attacks showed a deliberate breach of trust and confirmed Thailand responded in self-defense. Bangkok Post, July 29
Vietnam
PM urges review of two-tier local government operation. Prime Minister Pham Minh Chinh directed ministries and agencies to evaluate the reorganization of Vietnam's political and administrative apparatus following the first month under the two-tier local government model. He acknowledged initial stability but noted unresolved issues in land management, education, healthcare, and digital integration. Vietnam News, July 29
Cambodia
Thailand and Cambodia dispute whether ceasefire is holding. Thailand accused Cambodia of launching attacks in multiple areas after a midnight ceasefire took effect, while Cambodia denied any violations and reaffirmed its commitment to the agreement. The ceasefire, reached in Malaysia under U.S. pressure, followed five days of deadly clashes that killed 35 people and displaced 260,000. Follow-up talks are scheduled for Tuesday. Jintamas Saksornchai and Sopheng Cheang, Associated Press, July 29
Cambodia strongly rejects Thai military’s ceasefire violation claims. Cambodia’s Ministry of National Defence dismissed as provocative and baseless the Thai army’s accusations that Cambodian forces violated a newly agreed ceasefire by continuing to open fire. Spokesperson Maly Socheata asserted that the Royal Cambodian Armed Forces have strictly adhered to the agreement since it took effect at midnight, and will continue to follow army command directives. Khmer Times, July 29
Philippines
Marcos says stronger alliances make Philippines safer amid China tensions, pledges reforms at home. In his state of the nation speech, President Ferdinand Marcos Jr. credited expanded security partnerships with the U.S., Japan, and other Western allies for boosting the Philippines’ confidence in defending sovereignty amid South China Sea tensions. He vowed to expose corruption in flood-control projects following deadly storms, called for unity to address poverty and infrastructure gaps, and pledged to prioritize external defense over internal threats. Jim Gomez, Associated Press, July 28
Escudero: Senate won't convene as impeachment court after SC ruling. Senate President Francis Escudero said the Senate will not convene as an impeachment court following the Supreme Court’s ruling that voided the Articles of Impeachment against Vice President Sara Duterte. The Court found the House violated the constitutional one-year bar rule, placing the matter outside Senate jurisdiction. Javier Joe Ismael, The Manila Times, July 28
Indonesia
Indonesia’s FDI drop 6.95% y/y in Q2, biggest fall since 2020. Foreign direct investment into Indonesia fell 6.95% year-on-year in Q2 to 202.2 trillion rupiah ($12.3 billion), the steepest drop since Q1 2020. The data excludes financial and oil and gas sectors. Total direct investment including domestic sources reached 477.7 trillion rupiah, generating over 665,000 jobs. Stefanno Sulaiman, Reuters, July 28
Malaysia
Anwar, Prabowo hold long-awaited bilateral talks in Jakarta. Malaysian Prime Minister Anwar Ibrahim and Indonesian President Prabowo Subianto resumed the Malaysia–Indonesia Annual Consultation after an eight-year pause, meeting at the Presidential Palace in Jakarta. Discussions focused on unresolved bilateral issues including maritime boundaries, migrant worker protections, and cross-border economic cooperation. Nadia Mohsin, New Straits Times, July 29
Taiwan
Taiwan’s Lai set to push back U.S. stopover as U.S.–China trade talks continue: sources. Taiwan President Lai Ching-te has postponed a planned U.S. stopover during his August Latin America trip due to ongoing U.S.–China tariff negotiations and typhoon recovery efforts in Taiwan, according to sources. The informal plan had included visits to New York and Dallas. Officials now expect the trip to be rescheduled later this year amid broader geopolitical sensitivities. Trevor Hunnicutt and Yimou Lee, Reuters, July 28
Taiwan’s opposition KMT and TPP look to build on momentum from recall votes. Taiwan’s Kuomintang and Taiwan People’s Party gained political momentum after all 24 KMT lawmakers targeted in a major recall vote retained their seats. The failed effort, seen as a misstep by President William Lai Ching-te’s administration, strengthened the informal KMT–TPP alliance ahead of the 2026 local and 2028 presidential elections. Lawrence Chung, South China Morning Post, July 28
Afghanistan
A trans-Afghan railway chugs toward reality with new agreement. Uzbekistan, Afghanistan, and Pakistan signed a framework deal to build a 400-mile railway connecting Termez to Parachinar, enabling trade routes to Pakistani ports. Estimated to cost $4.6 billion and take five years, the line aims to cut transit time from 35 days to 4 and raise freight volume from 300,000 to 3 million tons initially. Security and funding remain challenges despite Taliban guarantees. Alexander Thompson, Eurasianet, July 28
Northeast Asia
Red Tape to Rent Relief: China Moves to Reinvent Urban Tenancy. China has introduced sweeping rental housing reforms under National Order No. 812, set to take effect September 15, 2025, focusing on state-owned urban land in cities like Beijing and Chongqing. The new legislation increases tenant protections, including safeguards against forced evictions and unauthorized landlord entry, while granting renters equal access to public services such as education and healthcare. It prohibits residential leasing of non-livable areas and mandates full utility access, targeting illegal rentals. Strict penalties and fines are imposed for non-compliance. The law also establishes a centralized oversight system with credit evaluations for agencies and agents, integrating financial, law enforcement, and educational data to monitor practices. These measures mark a decisive change toward regulated, affordable urban tenancy. Rían Knighton, ICAS, July 28
What the Failed Recall in Taiwan Means for U.S.-Taiwan and Cross-Strait Relations. All 24 Chinese Nationalist Party (KMT) legislators survived Taiwan’s unprecedented “Great Recall” vote on July 26, preserving their control of the Legislative Yuan and signaling a weakened position for President Lai Ching-te’s Democratic Progressive Party (DPP). The KMT’s victory will likely strengthen its opposition to Lai’s domestic agenda and may limit Taiwan’s ability to raise defense spending, potentially straining U.S.-Taiwan relations. However, the result may stabilize cross-Strait dynamics, with Beijing interpreting the outcome as voter preference for balanced governance. The failed recall could also force Lai toward political compromise and a more moderate approach to China, including increased exchanges. Taiwan’s future security and foreign policy now hinge on whether Lai and the opposition can collaborate. David Sacks, Council on Foreign Relations, July 28
China’s First Sovereign RMB Green Bond Sends a Strong Signal. China issued its first sovereign green bond denominated in renminbi on April 2, 2025, raising RMB 6 billion (US$824 million) in a move aimed more at signaling policy direction than fiscal impact. As the country’s initial sovereign green issuance and the first listed internationally, it marks a pivot toward deeper integration in global capital markets, RMB internationalization, and climate leadership. Oversubscribed nearly sevenfold, the bond offers credibility to China’s green ambitions amid declining U.S. climate engagement. It also bolsters efforts to de-dollarize global finance and promote RMB liquidity. While small in scale, the issuance reflects Beijing’s intent to lead in green finance and reinforce global investment in China’s sustainable development path. Christoph Nedopil Wang and Hanrui Ma, East Asia Forum, July 28
Smashing the News. After a cable company executive violently destroyed journalists’ equipment in Hunan, Chinese state media and the All-China Journalists Association publicly defended reporters’ rights - a stance widely viewed as hollow given the state’s tight control over the press. While media regulators extolled “legitimate supervision,” real reporting power remains reserved for CCP-sanctioned outlets operating within rigid propaganda constraints. Xi Jinping’s “Four Firm Adherences” doctrine mandates news loyalty to the Party, marginalizing investigative journalism and empowering local authorities to suppress critical coverage. The state’s sudden show of outrage was less about press freedom than about narrative control. The Hunan incident is not a breakdown but an embodiment of China’s media system. David Bandurski, China Media Project, July 28
Abbot Shi Yongxin of Shaolin Temple Has Finally Fallen. Shi Yongxin, the influential abbot of Shaolin Temple, has been placed under investigation for embezzlement, misappropriation of temple funds, and violating Buddhist precepts through illicit relationships and fathering children. Once celebrated for transforming Shaolin into a global brand and business empire, Shi managed assets through commercial entities spanning tourism, real estate, and IP licensing, generating an estimated 500 million RMB annually. His downfall follows years of controversy and past accusations dismissed by authorities. This time, he faces criminal charges, marking a rare intersection of China’s anti-corruption campaign with its religious institutions. Shi’s case shows a broader scrutiny of commercialized religious figures. Yu Zeyuan, ThinkChina, July 28
Inside the ‘Rat Nest’: Why Young Chinese Are Choosing to Disappear. A growing number of young Chinese are embracing a sedentary, withdrawn lifestyle dubbed the “rat person” phenomenon, charaterized by minimal ambition, social retreat, and digital escapism. Faced with a record 12.22 million university graduates and persistent youth unemployment, many feel that effort yields no reward. Social media has amplified this subculture, driven by despair over involution, job scarcity, and collapsing faith in traditional success. For students like Yin Hao and workers like Zhao Yuqing, the “rat nest” becomes a coping space. Experts say it reflects deeper disillusionment with China’s socio-economic structure and a silent rejection of state-driven ideals. Li Kang, ThinkChina, July 28
Southeast Asia
Thai-Cambodian Border Clashes Help Revive Hun Sen’s Power. Despite formally stepping down in 2023, Cambodia’s former prime minister Hun Sen has used escalating border violence with Thailand to reassert dominance over Cambodian politics, sidelining his son and current prime minister Hun Manet. Tensions increased after Thai troops allegedly killed a Cambodian on May 28, triggering deadly clashes, mass displacement, and fears of broader conflict. Hun Sen has led negotiations, rallied nationalist sentiment, and publicly condemned Thailand, all while using social media to present himself as Cambodia’s top defender. He is leveraging the crisis to distract from domestic challenges and sever ties with Thailand’s Shinawatra dynasty, whose leader was ousted following leaked communications. His aggressive posture may also aim to consolidate his family's grip on power amid uncertainty. Mike Rattanasengchanh and Joshua Kurlantzick, Council on Foreign Relations, July 28
Thailand and Cambodia’s Ceasefire: Will It Stop War When Elites Want Conflict? A U.S.- and Malaysia-brokered ceasefire has halted the escalating border clashes between Thailand and Cambodia, but questions remain about its durability as elite power struggles in both nations appear to fuel the conflict. Since the violence began on May 28, over 30 people have been killed and 200,000 displaced. Cambodian former prime minister Hun Sen used the conflict to reassert influence, while Thai elites capitalized on leaked communications and nationalist fervor to oust former Prime Minister Paetongtarn Shinawatra and target her father Thaksin. The Thai military, emboldened by rising public support, may exploit the chaos to regain political dominance, with coup speculation increasing. Without resolving elite rivalries, the ceasefire is unlikely to bring lasting peace. Joshua Kurlantzick, Council on Foreign Relations, July 28
Will Indonesia Regret Its Trade Deal With Trump? Indonesia’s newly signed trade deal with the U.S. under President Trump caps tariffs at 19% through 2029 and secures major U.S. export commitments, including the purchase of 50 Boeing aircraft and billions in energy and agricultural products. In exchange, Indonesia avoids Trump’s harsh tiered tariffs, which reach up to 50% for strategic sectors. However, the agreement raises concerns over transparency, financing terms, and potential damage to Indonesia’s local industries and regional trade commitments. It undermines strategic neutrality, increases dependence on U.S. markets, and may alienate key partners like China and ASEAN. Lili Yan Ing, CHINA US Focus, July 28
Cambodia’s Major Dilemma: Handling Anti-Vietnamese Sentiments. Cambodia continues to grapple with entrenched anti-Vietnamese sentiment rooted in historical conflict, colonial grievances, and demographic changes. The government, seeking stability and regional credibility, has pursued direct measures such as immigration crackdowns and withdrawal from the Cambodia–Laos–Vietnam Development Triangle Area (CLV-DTA), while also silencing nationalist provocateurs like the dissolved CNRP. Despite these efforts, unresolved border disputes and maritime tensions, particularly around illegal fishing and the controversial Funan Techo Canal project, sustain nationalist backlash. Prime Minister Hun Manet’s administration enjoys greater flexibility than his predecessor, navigating these challenges amid changing public opinion. Sustainable reconciliation requires a long-term strategy of inclusion and regional cooperation. Sovinda Po, FULCRUM, July 28
The Thailand-Cambodia Border Crisis is ASEAN’s Moment of Truth. Escalating clashes between Thailand and Cambodia since July 24, which have left over 30 dead and displaced tens of thousands, show ASEAN’s inability to mediate internal conflicts. Despite ceasefire talks in Kuala Lumpur led by Malaysia and supported by the U.S. and China, ASEAN has issued no collective statement, paralyzed by its non-interference doctrine and consensus rule. The Treaty of Amity and Cooperation’s mediation mechanism remains dormant. Cambodia has invoked self-defense under the UN Charter while Thailand insists on bilateral solutions. This silence erodes ASEAN’s credibility, highlighting long-standing structural weaknesses and the widening gap between its peace rhetoric and operational capacity. Joanne Lin and Melinda Martinus, FULCRUM, July 28