As previously announced, this is the final edition of Asia Daily in its current form. Since launching nearly three years ago, we have been proud to watch it grow into the newsletter it is today. Your readership, trust, and support have meant more to us than we can fully express, and we are deeply grateful to everyone who made Asia Daily part of their routine. Thank you for reading, sharing, and helping shape something we will always look back on with enormous pride. We look forward to sharing our next endeavors with you in the very near future.
China
China’s October plenum plan reveals focus on party discipline ahead of 2027 congress. China’s Communist Party will hold its fifth plenum in October, focusing on corruption, discipline, and political loyalty before the 2027 party congress. The meeting is expected to shape leadership screening, endorse personnel changes, and advance Xi Jinping’s approach to centralized party governance. William Zheng, South China Morning Post, July 30
China’s military, coast guard patrol contested shoal in South China Sea. China’s military and coast guard conducted air and maritime patrols near Scarborough Shoal amid renewed tensions with the Philippines. The coast guard said it issued warnings, blocked vessels, and used water cannon to expel ships it described as illegal and harassing. The Philippine Embassy in Beijing did not immediately comment. Reuters, July 30
China accuses Philippines of “flagrantly infringing” on sovereignty in seabed claim. Beijing urged a UN commission to reject Manila’s request for extended continental shelf rights in the South China Sea, saying it violated Chinese sovereignty. The Philippine claim covers seabed beyond its exclusive economic zone and overlaps with disputed areas also claimed by China, Malaysia, Vietnam, and Taiwan. Shi Jiangtao, South China Morning Post, July 30
New images point to fifth prototype for China’s J-36 fighter jet in air power race with US. New footage may show a fifth J-36 prototype with changes to its nose, intakes, nozzles, and landing gear, suggesting rapid testing and design refinement. Analysts said the large sixth-generation aircraft could become a long-range command platform coordinating sensors, weapons, and collaborative combat aircraft. Gabriel Dominguez, South China Morning Post, July 30
China voices “serious concern” over new US curbs in senior trade talks. China objected to recent US tariffs, export controls, and technology restrictions during talks between senior economic officials. Both sides discussed rare earths, agricultural purchases, and new trade and investment boards while seeking deliverables before an expected Xi Jinping-Donald Trump summit in September. Nayan Seth, South China Morning Post, July 30
China protests over New Zealand foreign minister’s jibe at Chinese-born lawmaker. China lodged a diplomatic protest after Winston Peters told Chinese-born Green Party lawmaker Lawrence Xu-Nan to return to his country and called him a loudmouth during a parliamentary debate. The Chinese Embassy described the remarks as harmful to bilateral relations, while Prime Minister Christopher Luxon and other lawmakers criticized them. Xu-Nan accused Peters of scapegoating migrant communities. Christine Chen, Reuters, July 30
Japan
Gov’t cuts Japan’s FY 2026 GDP growth outlook to 0.9% on higher oil prices. Japan lowered its fiscal 2026 growth forecast from 1.3% to 0.9% as higher oil prices and a weaker yen raise import costs. The government now expects a larger primary deficit this year but projects a 1.4 trillion yen surplus in fiscal 2027, supported by stronger tax revenue. Kyodo News, July 30
Takaichi orders LDP to finalize plan for slashing food tax to 1%. Sanae Takaichi instructed Liberal Democratic Party leaders to finalize a two-year reduction in the food consumption tax from 8% to 1%, beginning in April 2027. The proposal also includes cash benefits for lower- and middle-income households, though some lawmakers oppose the plan because of funding and fiscal concerns. The Asahi Shimbun, July 30
South Korea
DP introduces bill scrapping prosecution’s direct investigative rights at plenary session. South Korea’s ruling Democratic Party introduced legislation removing prosecutors’ direct and supplementary investigative powers, prompting a People Power Party filibuster. The reform would dismantle the prosecution and establish separate agencies for investigations and indictments. The Assembly also approved a special counsel investigation into ballot shortages during the June local elections. Kang Jae-eun, Yonhap News Agency, July 30
Lee says S. Korea, Chile will reactivate committee to negotiate modernizing FTA. Lee Jae Myung and Jose Antonio Kast agreed to revive a bilateral committee after 10 years to modernize their 2004 free trade agreement. They also expanded cooperation on lithium and copper supply chains, defense, shipbuilding, infrastructure, public security, and transnational crime, signing five memorandums of understanding. Park Boram, Yonhap News Agency, July 30
North Korea
Russia used N. Korean missile for deadly strike on Ukrainian village, Zelenskiy says. Volodymyr Zelenskiy said preliminary evidence showed Russia used a North Korean missile in a strike on Radushne that killed two parents and three children. Ukrainian radar detected flight paths associated with KN-23 or KN-24 short-range ballistic missiles, though investigators were still examining fragments. A military source said the attack could indicate Moscow had received a new supply after last using North Korean missiles in August 2025. Tom Balmforth, Reuters, July 30
Pyongyang busts luxury smuggling ring selling to elite wives. A Pyongyang task force arrested a foreign currency store manager and trade official accused of smuggling Chanel, Rolex, and other luxury goods for senior officials’ wives. Investigators seized undeclared dollars, yuan, and unregistered merchandise. The inquiry widened after police officers were accused of protecting the operation for bribes. Yoon HyeSeong, Daily NK, July 30
Thailand
EC defends backing 2 controversial candidates. Thailand’s Election Commission published rulings explaining why senators Daeng Kongma and Somphan Phalasak qualified for the 2024 election’s entrepreneur category. Investigations found Daeng had sold pork for decades and Somphan had operated registered noodle businesses since 2009, giving both more than the required 10 years of experience. Post Reporters, Bangkok Post, July 29
Democrat MP urges public against TH-AI Passport. Democrat deputy leader Karndee Leopairote urged support for a petition opposing Thailand’s 1.621-billion-baht TH-AI Passport project, citing inadequate transparency and unclear public value. The programme would give five million people one year of premium AI access but remains in testing while officials review proposed contract changes linking payments to active users. Post Reporters, Bangkok Post, July 30
Cambodia
Critical time to intensify peace efforts on Cambodia-Thailand border, says ASEAN secretary-general. ASEAN Secretary-General Kao Kim Hourn urged Cambodia and Thailand to use the ceasefire for intensified diplomacy through bilateral and regional mechanisms. He stressed their permanent neighborly relationship and called for talks involving diplomats and military officials. Philippine Foreign Secretary Theresa Lazaro described compulsory maritime conciliation and the ASEAN Observer Team as constructive steps despite continuing challenges. Torn Chanritheara, Cambodianess, July 30
Philippines
Philippines’ Marcos approves release of VP Duterte’s tax records to impeachment trial. Ferdinand Marcos Jr. authorized the Bureau of Internal Revenue to release Sara Duterte’s tax records for use in her Senate impeachment trial. The Senate had subpoenaed the documents but required presidential approval because tax information is confidential. Banks and the Anti-Money Laundering Council were also ordered to provide financial records involving Duterte and her husband. The vice president denies wrongdoing and calls the proceedings politically motivated. Nestor Corrales and Karen Lema, Reuters, July 30
Sara presses ICC to free her father. Sara Duterte urged the International Criminal Court to release Rodrigo Duterte and accelerate his crimes against humanity case, arguing he poses no flight, obstruction, or reoffending risk. She challenged the court’s jurisdiction and investigation, accused it of political influence, and blamed Ferdinand Marcos Jr. for allowing proceedings to continue. James Daniel Danio, The Manila Times, July 30
Palace says stakeholders consulted on Pax Silica. Malacañang said consultations and site assessments are continuing for the proposed Pax Silica artificial intelligence hub after Capas officials said they were excluded from planning. The 1,600-hectare project faces concerns over Indigenous communities, water use, and displacement. Its Philippines-US framework agreement is expected by November, though provisions may still change. Allen Limos, The Manila Times, July 30
Indonesia
Indonesia court bars use of education budget to fund free meals starting from 2028. Indonesia’s Constitutional Court ruled that the government must separate funding for its free meals programme from operational education spending by 2028, while recommending an earlier change. The 2026 budget allocated 223 trillion rupiah from education funds to the programme, which targets 83 million children and expectant mothers. Judges said nutrition support deserves its own appropriation because including it within education spending distorts budget priorities. Stanley Widianto, Reuters, July 30
Indonesia’s anti-corruption agency arrests seven regional leaders in H1. Indonesia’s Corruption Eradication Commission conducted 12 sting operations in the first half of 2026, up from two a year earlier, arresting seven regional leaders and other officials. Cases involved procurement bribery, illegal gratuities, extortion, and conflicts of interest. The agency also sent 76 cases to court and recovered confiscated assets. Yustinus Paat, Jakarta Globe, July 30
Prabowo affirms unity between police and attorney general amid high-profile graft probe. Prabowo Subianto rejected speculation of tensions between Indonesia’s police and Attorney General’s Office during the corruption investigation of former senior prosecutor Febrie Adriansyah. The case was transferred from police to prosecutors after Febrie became a suspect. Prabowo said both institutions continued cooperating nationally and regionally. Celvin Moniaga Sipahutar, Jakarta Globe, July 30
Malaysia
Malaysian PM says Myanmar agrees to take 5,000 Rohingya refugees from Malaysia. Anwar Ibrahim said Myanmar agreed to receive 5,000 Rohingya asylum seekers after bilateral negotiations. Malaysia’s Home Ministry will identify and screen candidates before further talks with Myanmar. UNHCR warned that continuing conflict prevents safe, sustainable returns and called for protection safeguards. About 126,000 Rohingya were registered in Malaysia at the end of February. Ashley Tang and Danial Azhar, Reuters, July 30
Taiwan
Taiwan’s ASE Tech raises 2026 capex by $2 billion on strong demand. ASE Technology raised its 2026 capital spending plan from $8.5 billion to about $10.5 billion, dividing the increase between facilities and equipment. The chip packaging and testing company is developing 13 new sites and repurposing eight existing factories. Strong artificial-intelligence demand is lifting its advanced packaging business, which it aims to double in revenue next year. Wen-Yee Lee, Reuters, July 30
Young Kim leads bipartisan U.S. congressional group to Taiwan. A bipartisan U.S. congressional delegation led by Young Kim arrived in Taiwan for a three-day visit. The group will meet President Lai Ching-te and other senior officials to discuss trade, investment, regional security, and stronger bilateral ties. The visit also aims to reaffirm U.S. support for a free and open Indo-Pacific. Joseph Yeh, Focus Taiwan, July 30
Ministry of the Interior to seek dissolution of pro-China party. Taiwan’s Interior Ministry will ask the Constitutional Court to dissolve the Chinese Unification Promotion Party, accusing it of threatening national security and democratic order. Authorities allege links to organized crime, Chinese influence operations, election interference, espionage recruitment, cross-border repression, and infiltration of temples and civic groups. Kao Hua-chien, Wen Kuei-hsiang, and Evelyn Kao, Focus Taiwan, July 30
India
Indian federal police file charges against 13 over exam paper leaks. India’s Central Bureau of Investigation charged 13 people, including testing-agency experts, middlemen, and coaching-institute associates, over leaked medical entrance exam questions. The cancelled test affected about two million students and triggered nationwide protests that led to the education minister’s resignation. Charges include conspiracy, cheating, breach of trust, and destruction of evidence. Aditya Kalra and Sakshi Dayal, Reuters, July 30
Kazakhstan
Rubio and Kosherbayev discuss CPC ahead of Tokayev’s U.S. visit. Marco Rubio and Yermek Kosherbayev discussed reliable Kazakh oil exports through the Caspian Pipeline Consortium, energy security, critical minerals, transport, investment, and trade. They also reviewed preparations for Kassym-Jomart Tokayev’s U.S. visit for the G20 summit, shortly after Kazakhstan resumed CPC exports following a weeklong disruption. The Times of Central Asia, July 30
Kyrgyzstan
Kyrgyzstan moves 2027 presidential election to January 27. Sadyr Japarov signed legislation moving Kyrgyzstan’s presidential election from a Sunday to Wednesday, January 27, 2027. Election day will be a paid holiday, with lawmakers arguing that weekday voting could increase turnout. The Constitutional Court has ruled that Japarov may seek a second term under the 2021 Constitution. The Times of Central Asia, July 30
East Asia
Why China rescued Vietnam’s ship in the South China Sea but targets the Philippines. China’s rescue of 62 Vietnamese sailors in disputed Spratly waters reflects a distinction in Beijing’s strategy. Vietnam expands features but maintains bilateral dispute channels and avoids alliances aimed at China. The Philippines uses legal pressure, diplomacy, and defense ties with the United States, Japan, and Australia, which Beijing views as external intervention. The operation signals that maritime competition can coexist with humanitarian cooperation when claimants keep disputes within bilateral frameworks. Sim Tze Wei, ThinkChina, July 30
Pricing China’s AI+ energy plan. China’s AI+ energy plan seeks to make data centers responsive power users through workload scheduling, renewable contracts, storage, and siting. Training can move toward wind and solar hubs, while inference remains near users. AI can improve forecasting and grid dispatch, but market reform remains the constraint. Weak price signals, high reliability costs, mismatched construction timelines, and limited operator incentives threaten the plan’s effort to balance secure, clean, and affordable power. CHINA POLICY, July 30
From Growth to Visibility: Bureaucratic Incentives After China’s Cadre Evaluation Reforms. Xi Jinping’s cadre evaluation reforms reduced GDP’s role and added welfare, environmental, and implementation measures. Fiscal limits and targets pushed officials toward spotlight projects that display alignment with central priorities and attract promotion. These projects favor publicity, documentation, and quick results over durable gains. Provincial leaders support them because visible successes strengthen their standing. Xi’s moral campaign against formalism cannot fix incentives that reward performance displays across levels of government. Zhuoran Li, Asia Society, July 30
The Next Phase of China’s Minority Crackdown. China’s new ethnic unity law codifies forced assimilation by making Mandarin central to education and official life, embedding shared Chinese symbols, and extending enforcement across society. The measure hollows out territorial autonomy for Mongols, Tibetans, Uyghurs, and other minorities while reducing culture to controlled display. By suppressing language, religion, memory, and collective identity, Beijing may deepen exile activism, erase paths toward meaningful autonomy, and bind national unity to permanent coercion. James Leibold and Tenzin Dorjee, Foreign Affairs, July 30
Japan needs quota debate to raise women's representation in politics. Japan’s first female prime minister will produce limited gains in representation because women remain scarce in parliament and cabinet. The Liberal Democratic Party fielded few female candidates, contributing to a decline in women elected in 2026. Voluntary targets have failed to overcome male incumbency advantages. Japan should debate enforceable gender quotas, equal representation on proportional lists, subsidy reductions for noncompliant parties, and measures that increase turnover while protecting democratic legitimacy. Mari Miura, Nikkei Asia, July 30
More Than a Destroyer: What Choe Hyon Reveals About North Korea’s Maritime Strategy. North Korea commissioned the 5,000-ton Choe Hyon for West Sea service, marking a shift from coastal defense toward strategic deterrence and wider naval reach. The destroyer supports air defense, anti-ship, anti-submarine, missile defense, and land attack missions. Its deployment could strengthen maritime claims, challenge the Northern Limit Line through gray-zone patrols, and support future blue-water operations. Expansion plans include more destroyers, larger cruisers, new bases, and advanced underwater weapons systems. Bomi Kim, 38 North, July 30
Why South Korea must abandon its unification policy. North Korea’s constitutional rejection of unification formalizes a two-state order and exposes South Korea’s doctrine as obsolete. Seoul’s absorption goal makes engagement appear as an existential threat to Pyongyang and faces weak support among younger generations. South Korea should recognize coexistence as the policy endpoint, revise its constitution, and replace the Ministry of Unification with a diplomatic bureau. This change could support dialogue, rail links, Arctic shipping cooperation, and trade. Mitch Shin, East Asia Forum, July 30
Southeast Asia
Personalist politics pave the way for Indonesia's authoritarian revival. Indonesia’s democratic decline stems from personalist parties that prize electoral gain, patronage, and leader loyalty over programs and institutional checks. Jokowi built power through state enterprises, bureaucracy, and volunteer networks, while Prabowo relies on Gerindra, the military, and Danantara. Broad governing coalitions absorb rivals and weaken legislative oversight. Reform requires party laws that promote internal democracy, policy competition, durable organizations, and constraints on executive power before another strongman gains control. Hurriyah and Revo Linggar Vandito, East Asia Forum, July 31
Bridging the inequality deficit in Indonesia’s energy transition. Indonesia’s energy transition financing favors investor risk reduction over equitable outcomes. Green bonds, guarantees, joint ventures, and development programs attract capital, yet weak safeguards leave inequality unaddressed. Corporate social responsibility measures track outputs such as training and donations while excluding resource distribution, governance access, and benefit sharing. Joint ventures diffuse accountability, and Danantara lacks binding social protections. Australia should extend gender and inclusion standards from grants into binding financing instruments. Angie Bexley and Trissia Wijaya, East Asia Forum, July 30
Two Anwars on the Ballot? Regulating AI Before GE16. Malaysia faces election risks from AI-generated political content as Prime Minister Anwar Ibrahim’s PMX AI blurs public service and party messaging. Existing online safety, communications, cybercrime, and proposed AI laws lack campaign rules for disclosure, attribution, and rapid response. Malaysia should require labels for synthetic material, create reporting and verification channels, clarify penalties for malicious impersonation, strengthen Election Commission coordination with MCMC, and develop regional protocols before GE16 campaigning begins. Nuurrianti Jalli, FULCRUM, July 30
South Asia
Can India Finally Realize Its Manufacturing Ambitions? India’s manufacturing share has fallen despite reforms, with land shortages, weak skills, labor rules, import controls, and regulatory burdens limiting investment. Government support has produced gains in smartphones, solar panels, automobiles, and clean technology. Wider progress depends on faster deregulation, stronger local supply chains, effective incentives, trade agreements, selective Chinese inputs and investment, and domestic growth. India must spread sector successes, raise local value, and strengthen export competitiveness across industry. Lauren Piper, Rhodium Group, July 30