China
U.S. sanctions Chinese, Hong Kong shipping firms over Iranian oil deliveries. Washington sanctioned eight companies operating vessels accused of transporting Iranian crude and petrochemical products to China and the United Arab Emirates through Tehran’s shadow fleet. Six tankers allegedly delivered Iranian oil to China, including shipments totaling millions of barrels. The measures freeze U.S.-based assets and generally prohibit American transactions with the designated firms. Two Iranian companies were also targeted over alleged compulsory maritime insurance charges in the Strait of Hormuz. Teresa Elena Frontado, South China Morning Post, July 29
Iran to get Chinese shoulder-launched missile systems in weeks, sources say. Iran is expected to receive an initial shipment from a contract covering 300 to 400 Chinese-made QW-12 and FN-16 man-portable air-defense systems, according to sources familiar with the agreement. Valued at $60 million to $70 million, the purchase would strengthen Iran’s short-range air defenses after U.S. and Israeli attacks exposed vulnerabilities around military and strategic infrastructure. A Hong Kong company allegedly acted as intermediary. China called the report groundless, while Pakistan denied involvement in transfers. John Irish and Jonathan Saul, Reuters, July 29
Japan
Japan PM’s political doom loop worsens her fight with markets. Sanae Takaichi’s declining approval ratings amid inflation and a weak yen have made retreating from promised tax cuts politically difficult. Her support for fiscal stimulus and criticism of higher interest rates have increased concerns about public finances, pushing bond yields higher and weakening official efforts to support the yen. Plans for a two-year food sales-tax cut and an uncapped spending framework reinforce investor doubts, while market volatility further complicates policy implementation. Leika Kihara and Tamiyuki Kihara, Reuters, July 29
Decision on Japan consumption tax cut left to PM after cross-party talks fail. Japan’s ruling and opposition parties ended months of negotiations without agreement on reducing the consumption tax on food and beverages. Sanae Takaichi is expected to direct the Liberal Democratic Party to pursue a two-year reduction from 8% to 1% beginning in April 2027. The proposal would be supplemented by cash payments to lower- and middle-income households and serve as a transitional measure before an income-linked relief program begins in fiscal 2029. KYODO NEWS, Kyodo News, July 29
South Korea
Parliamentary committee refers bill scrapping prosecution’s investigative authority to coordination panel. A parliamentary committee referred a disputed Criminal Procedure Act revision to a six-member agenda coordination panel after opposition protests. The bill would remove prosecutors’ supplementary investigative powers as part of broader reforms dismantling the prosecution and creating separate agencies for investigations and indictments. The panel may deliberate for up to 90 days, but four supporting votes would send the measure immediately to the standing committee for approval. Yi Wonju, Yonhap News Agency, July 29
Lee arrives in Santiago for summit with President Kast. President Lee Jae Myung arrived in Santiago for talks with Chilean President Jose Antonio Kast on strengthening bilateral relations. Chile is the second destination on Lee’s three-country South American tour, following his summit with Brazilian President Luiz Inacio Lula da Silva in Brasilia. Lee was scheduled to meet members of Chile’s Korean community before holding his summit with Kast the following day. His tour will conclude with a visit to Argentina. Park Boram, Yonhap News Agency, July 29
North Korea
North Korea sends 10,000 workers to China in a month. About 10,000 newly dispatched North Korean workers entered China between mid-June and mid-July, while contracts reportedly cover more than 50,000 additional laborers. Chinese local governments now approve worker numbers and entry plans before crossings, and most entrants are classified as industrial trainees despite being assigned factory jobs. The arrangement may circumvent UN sanctions restricting overseas employment of North Koreans. Seulkee Jang, Daily NK, July 29
N. Korea, China pledge closer ties at banquet marking Chinese military anniv. North Korean and Chinese officials pledged to deepen bilateral friendship and military cooperation at a Pyongyang reception marking the People’s Liberation Army’s 99th anniversary. Chinese Ambassador Wang Yajun hosted the event, attended by North Korean defense, foreign affairs, and ruling-party officials, including Defense Minister No Kwang-chol. His participation reflected expanding high-level exchanges after Kim Jong-un and Xi Jinping agreed in June to strengthen relations. Woo Jae-yeon, Yonhap News Agency, July 29
Thailand
Senate eligibility row sparks legal threat. Senator Somphan Palasak threatened criminal action against iLaw director Yingcheep Atchanont over claims that Somphan and Senator Daeng Kongma were ineligible to run under the business-owner category in Thailand’s 2024 Senate election. Yingcheep questioned whether their listed occupations met the requirements for enterprises outside the small and medium-sized business category. Somphan said the Election Commission had already confirmed their eligibility and accused Yingcheep of damaging their reputations. Bangkok Post, July 28
Myanmar
Myanmar Parliament approves death sentence for scam offenses. Myanmar’s military-dominated Parliament approved an anti-online scam law authorizing capital punishment for offenses involving death and for violently coercing or detaining victims to work in scam centers. Other provisions impose prison terms ranging from 10 years to life for torture, unlawful detention, cruel treatment, operating scam compounds, and cryptocurrency fraud. The Irrawaddy, July 29
Laos
Laos inflation edges up in July, electricity prices surge 91.5% year-on-year. Laos’ annual inflation rose to 7.6% in July from 7.4% in June, driven largely by a 91.5% increase in electricity prices. Housing, water, electricity, and cooking fuel costs climbed 25.7%, while bus fares rose 41.5% and fuel remained 30% higher. Healthcare, education, restaurant, hotel, and food expenses also increased. Monthly consumer prices rose 0.7%, despite declines in transportation, communication, and other goods and services. Namfon Chanthavong, The Laotian Times, July 29
Chinese commerce chamber urges businesses in Laos to cut ties with scam networks. The General Chinese Chamber of Commerce in Laos instructed members to inspect properties, tenants, services, and commercial relationships for links to online scam networks. Companies were warned against providing suspected operators with premises, internet access, equipment, recruitment, or financing and told to report suspicious activity. Violators could lose chamber membership and face legal action. Phoudasack Vongsay, The Laotian Times, July 29
Cambodia
Cambodia presses ASEAN observers on Thai border attacks. Cambodia briefed the Philippine-led ASEAN Observer Team on border demarcation and reiterated its commitment to peaceful settlement through international law and bilateral mechanisms. Officials blamed alleged Thai attacks, occupation, and sovereignty violations for delaying joint surveys and temporary boundary markers. Phnom Penh urged Thailand to resume Joint Survey Team activities and the Joint Commission on Demarcation for Land Boundary. Meng Seavmey, Cambodianess, July 29
Philippines
Commercial sea drone captures footage of Chinese warship in Philippine waters. California-based Seasats said its Lightfish autonomous vessel approached and filmed a Chinese Type 052D guided-missile destroyer inside the Philippines’ exclusive economic zone on June 16. Reuters verified the footage and vessel identification. The encounter demonstrated how a commercial drone costing about $240,000 could closely monitor a billion-dollar warship. Mike Stone and Fernando Robles, Reuters, July 29
PCG joins Pacific Rim drills to improve its readiness. The Philippine Coast Guard made its first appearance in the Rim of the Pacific exercise, contributing maritime law-enforcement, search-and-rescue, and humanitarian-assistance capabilities. BRP Gabriela Silang operated with forces from 30 participating countries during drills involving maritime, air, cyber, amphibious, and disaster-response scenarios. Commanders said the exercise strengthened interoperability, crisis response, deterrence, and sovereignty protection rather than targeting any specific country. Franco Jose C. Baroña, The Manila Times, July 29
VP cash withdrawals filled 4 big gym bags. A retired LandBank manager testified that four ₱125 million cash withdrawals by the Office of the Vice President were unprecedented in her 32-year career and each required about four large gym bags. The transactions, totaling ₱500 million, form part of the prosecution’s case alleging misuse of ₱612.5 million in confidential funds by Vice President Sara Duterte’s offices. Witnesses also raised questions about separate Department of Education withdrawals and required authorizations. Duterte denies wrongdoing, while senators stressed that unusual transactions are not necessarily illegal. Catherine S. Valente, Javier Joe Ismael, and Kristina Maralit, The Manila Times, July 29
Malaysia
Anwar says Myanmar agrees to accept 5,000 Rohingya refugees from Malaysia. Myanmar agreed to receive an initial group of about 5,000 Rohingya refugees from Malaysia following diplomatic engagement between the two governments. Anwar Ibrahim said the arrangement marked a change from Myanmar’s previous refusal to accept them. Malaysia is also relocating Rohingya who recently gathered outside the UNHCR office in Kuala Lumpur to designated areas in three states. Anwar warned that authorities would act against any refugee group disrupting public order or occupying roads and other public spaces. Malay Mail, July 29
Taiwan
Taiwan’s UMC raises 2026 capex, expands Singapore and Taiwan fabs for AI demand. United Microelectronics Corp. approved phased expansion of its Singapore and Taiwan manufacturing facilities to address rising artificial-intelligence demand. The company will add cleanroom capacity at its Singapore Phase 4 facility for silicon photonics production and construct a new fabrication building at its Tainan campus. UMC raised its 2026 capital expenditure budget to $2 billion and approved approximately $5 billion in spending across 2026 and 2027, while emphasizing flexible capacity deployment and financial discipline. Wen-Yee Lee, Reuters, July 29
East Asia
Domestic obstacles, global opportunities: The road to implementing China’s 15th Five-Year Plan. China’s 15th Five-Year Plan prioritizes technological self-reliance, industrial modernization, economic security, stronger supply chains, domestic demand, and green development. Implementation faces fiscal stress, local government debt, weak investment, low consumer confidence, aging, youth unemployment, and slowing productivity. Exports, foreign technology access, and centralized control provide room for action. These supports may delay needed income reform and the shift toward consumption-led growth while trade tensions threaten continued reliance on external demand. Andreas Mischer and Alexander Brown, MERICS, July 29
Beijing’s Next Play for the South China Sea. China is extending its South China Sea strategy from coercion at sea to quieter assertions over disputed land features. Flag raisings, floating structures, research missions, administrative measures, and reclamation projects can normalize control while avoiding responses triggered by confrontation. Washington should pair naval deterrence with coast guard patrols, legal messaging, economic measures, and support for claimants. Early action is needed before moves reshape the regional order and weaken international law. Lynn Kuok, Foreign Affairs, July 29
China’s DUV breakthrough: Has America’s tech wall outlived its purpose? China has begun producing domestic immersion DUV lithography machines, a step that weakens the impact of United States export controls and advances chip self-reliance. Planned deliveries to major sanctioned chipmakers could support mature-node production and future process gains. Experts caution that the machines require testing and trail ASML in yield, overlay, throughput, and reliability. Scaling output may take years while China lacks parity in advanced computing power and EUV technology. Edwin Ong, ThinkChina, July 29
How China split Silicon Valley over AI. Chinese open-weight AI models have divided Silicon Valley by challenging United States firms on price, access, and security. Kimi K3 and other low-cost models have gained developer use, pressuring proprietary providers. Nvidia supports open weights because wider deployment drives chip demand, while closed-model companies seek regulatory protection. Security incidents have weakened claims that proprietary systems offer greater safety. The dispute shapes Washington’s choices on competition, export controls, and national security. Yang Danxu, ThinkChina, July 29
Europe's China strategy needs more than tariffs. Europe’s widening trade deficit with China and pressure on industries have pushed Brussels toward tariffs, investment screening, anti-subsidy measures, and supply chain de-risking. Chinese electric vehicles and batteries expose weaknesses in Europe’s manufacturing base, while retaliation risks deeper friction. Trade defenses cannot sustain competitiveness by themselves. Europe needs coordinated industrial policy, stronger innovation, intellectual property, investment conditions, technological sovereignty, and long-term capacity that converts strategic autonomy into production and growth. Philippe Le Corre, Nikkei Asia, July 29
Taiwan Needs an AI Cyber Shield Now to Defend Against Invasion. Taiwan faces millions of Chinese cyber intrusions and lacks defenses suited for an invasion shaped by AI-enabled attacks. A cyber shield could link government and private networks, identify vulnerabilities, share threat data, detect anomalies, and repair breaches with limited human input. Taiwan should integrate the platform with its AI plans and seek support from the United Kingdom, the United States, and technology firms to protect infrastructure, public services, and sovereignty. Andrew Faulhaber, Center for Strategic and International Studies, July 29
Southeast Asia
The 2016 South China Sea Award and the Future of a Legally Binding Code of Conduct. ASEAN seeks a binding South China Sea code to reduce incidents, promote restraint, and strengthen regional order. The 2016 arbitral award exposed deep differences between China and several ASEAN states over UNCLOS, jurisdiction, maritime rights, and dispute settlement. Binding status cannot ensure durable compliance. A credible code needs clear scope, implementation rules, consultation procedures, review mechanisms, communication channels, and processes for managing disagreements without resolving sovereignty or maritime delimitation claims. Joanne Lin and Huynh Trung Dung, FULCRUM, July 29
Prabowo's electoral mandate is not enough to earn Indonesia’s trust. Prabowo Subianto’s record mandate has failed to secure durable confidence as approval has fallen amid patronage, weak oversight, and economic strain. Cash and food programs have revived support at points, but safety failures and military-linked appointments expose governance problems. A dominant coalition has weakened checks, while pressure on critics narrows accountability. Negative credit outlooks, rupiah depreciation, slower growth, and a stock market collapse deepen doubts that handouts can substitute for reform. Emba Emba, East Asia Forum, July 29
Canada’s ASEAN deal is about more than market access. Canada’s ASEAN trade agreement would create limited market access because four members have tariff-free access through the CPTPP and Indonesia has a bilateral deal. Thailand and the Philippines offer commercial gains, while separate talks can secure deeper commitments. The pact’s greater value lies in bloc-wide input cumulation, which could connect supply chains across ASEAN and support diversification from the United States while signaling respect for ASEAN as a regional partner. Alan J M Bron, East Asia Forum, July 29
The EU Needs to Learn from Southeast Asian Attempts to Leverage Chinese FDI. Chinese manufacturing investment in Southeast Asia and Europe promises jobs and technology, but hosts gain little transfer without conditions. Vietnam increased electronics output without spillovers, Indonesia secured nickel processing under Chinese ownership, and Malaysia faces pressure from the chip conflict. Europe holds stronger leverage through its market and institutions. The EU should coordinate investment rules, demand clear sharing pathways, strengthen domestic innovation, and reject assumptions that investment creates capabilities. Sense Hofstede, China Observers, July 29
South Asia
India’s Semiconductor Ecosystem Needs Taiwan’s SMEs to Build a Deep Tech Corridor. India should build a Deep Tech Corridor with Taiwan to move beyond electronics assembly and create a dense semiconductor ecosystem. Taiwanese small and medium enterprises, research institutions, suppliers, and startups could add manufacturing depth and innovation capacity. India offers lower labor costs and engineering talent, while Taiwan seeks diversified production. Success requires shared research facilities, cross-border incentives, multilingual services, international schools, sister-city partnerships, and cultural infrastructure that supports long-term commitment. Arun Teja Polcumpally, Asia Society, July 29