China
New Communist Party rules hint China’s Xi Jinping is delegating more power to deputies. New regulations on China’s party coordination bodies suggest President Xi Jinping is formalizing decision-making and potentially delegating more responsibilities. Experts say this could conserve Xi’s focus for long-term goals while trusted deputies manage daily affairs. Recent commissions on finance and technology are led by Premier Li Qiang and Vice-Premier Ding Xuexiang, respectively. Vanessa Cai, South China Morning Post, July 6
China opens third extension to sensitive Taiwan Strait flight path. China opened a third extension to the M503 flight route, near the Taiwan Strait’s median line, drawing strong objections from Taipei for acting unilaterally. The W121 corridor, opened ahead of Taiwan’s Han Kuang military drills, follows prior extensions W122 and W123. Beijing cited operational efficiency, while Taiwan accused it of destabilizing the region and undermining the status quo. Marius Zaharia and Yimou Lee, Reuters, July 6
China retaliates against EU with a ban on European medical devices. China barred European medical device firms from bidding on government contracts over 45 million yuan, in retaliation against the EU’s exclusion of Chinese companies from public procurement. The restriction exempts firms producing in China. It follows anti-dumping duties on European brandy and investigations into EU pork and dairy imports. Beijing criticized EU trade barriers but signaled openness to dialogue. Huizhong Wu, Associated Press, July 6
Japan
Japan to export used destroyers to Philippines to deter China, Yomiuri reports. Japan plans to transfer six Abukuma-class destroyer escorts to the Philippines to strengthen maritime defenses against China’s assertiveness. The ships, in service for over 30 years, will be inspected by Philippine naval experts this summer. The move is part of a deepening security partnership, including joint drills and radar support, with export restrictions bypassed via a joint development framework. Kantaro Komiya, Karen Lema and Ryan Woo, Reuters, July 6
South Korea
South Korea prosecutors file request to detain ex-President Yoon. Special prosecutors in South Korea filed a new request to detain former president Yoon Suk Yeol over allegations tied to his brief martial law declaration in December 2024. Yoon, previously ousted by the Constitutional Court, faces charges including insurrection and obstruction of justice. His lawyers called the arrest warrant request baseless, while prosecutors said justification would be presented in court. Cynthia Kim and Ju-Min Park, Reuters, July 6
Lee's approval rating rises to 62 pct in 1st month in office. President Lee Jae Myung’s approval rating climbed to 62.1% in his first month, according to a Realmeter survey, up 2.4 points from the prior week. Gains were attributed to his public engagement efforts and the administration’s handling of a telecom data breach. Support for the ruling party also rose, while opposition backing dropped below 30% for the first time in six months. Yi Wonju, Yonhap News Agency, July 7
North Korea
Russia turns to N. Korean workers amid Western sanctions. Russia is increasing its reliance on North Korean labor to support reconstruction projects in regions like Kursk and Vladivostok, as both nations deepen ties under their strategic partnership. North Korea plans to send engineers, military officers, and students for long-term training, while Russia may switch to in-kind compensation to avoid sanctions. Jeong Tae Joo, Daily NK, July 6
Thailand
Thailand to offer U.S. more trade concessions to avert 36% tariff, Bloomberg News reports. Thailand aims to cut its $46 billion trade surplus with the U.S. by 70% within five years and reach balance in seven to eight years, Finance Minister Pichai Chunhavajira told Bloomberg. The proposal seeks to avoid a 36% tariff set to take effect July 9, when a 90-day pause on baseline 10% tariffs expires. A revised offer is expected before the deadline. Angela Christy, Reuters, July 6
Cambodia
Official statement from Ministry of National Defense for media. Cambodia’s Ministry of National Defense rejected Thai claims over the sovereignty of Ta Krabei Temple, calling them baseless and reliant on unilateral maps without legal value. It reaffirmed the temple’s location within Cambodian territory and urged Thailand to bring border disputes to the ICJ. The ministry also denounced Thai actions restricting Cambodian national symbols and called for adherence to bilateral agreements. Author, Khmer Times, July 6
Philippines
Duterte lawyers give up challenge to ICC judges. Lawyers for former president Rodrigo Duterte will no longer seek reconsideration of the ICC decision rejecting their request to disqualify two judges from his case. Defense counsel Nicholas Kaufman said new undisclosed information influenced the move. He also denied Duterte’s involvement in any evidence destruction and criticized statements against Duterte’s interim release as interference in judicial proceedings. Red Mendoza, The Manila Times, July 6
Transparency urged in choosing Ombudsman. Democracy Watch Philippines called on the Judicial and Bar Council to ensure transparency and impartiality in selecting the next Ombudsman, stressing the role’s importance in upholding public accountability. Seventeen candidates, including justices and former officials, have applied. The group urged scrutiny beyond technical qualifications, warning that the Ombudsman must resist political pressure and act solely for the Constitution and citizens. Jane Bautista, Philippine Daily Inquirer, July 7
Indonesia
Indroyono Soesilo tapped as Jakarta’s envoy to Washington. President Prabowo Subianto nominated Indroyono Soesilo as Indonesia’s ambassador to the United States, filling a two-year vacancy amid trade tensions. Indroyono, a geologist and former maritime affairs minister, previously held senior posts in the UN and Indonesian ministries. Lawmakers are reviewing 24 ambassadorial candidates, with Indroyono’s appointment expected to bolster bilateral cooperation in trade and maritime affairs. Salman Mardira and Anisa Fauziah, Jakarta Globe, July 5
Indonesia's Prabowo to joins BRICS Summit talks on peace, security, AI. President Prabowo Subianto will attend the BRICS Summit in Rio de Janeiro, participating in plenary sessions on peace, global security, and artificial intelligence. His delegation seeks to promote Indonesia’s role in multilateralism and use the forum to pursue national interests in education, technology, and economics. This marks Prabowo’s first BRICS appearance since Indonesia joined the bloc in January. ANTARA News, July 6
Malaysia
Diplomatic delegations arrive in KL for Asean Foreign Ministers Meeting under Malaysia’s 2025 chairmanship. Delegations from ASEAN countries, including Laos, Myanmar, Thailand, and others, have begun arriving in Kuala Lumpur ahead of the 58th ASEAN Foreign Ministers’ Meeting scheduled for July 8–11. Held under Malaysia’s fifth ASEAN Chairmanship themed “Inclusivity and Sustainability,” the event will include 24 ministerial meetings with 1,500 delegates from ASEAN states, Dialogue Partners, and the ASEAN Secretariat. Malay Mail, July 7
Kazakhstan
Kazakhstan to invest in Afghanistan’s Turghundi-Herat railway. Prime Minister Olzhas Bektenov announced Kazakhstan’s commitment to invest in Afghanistan’s Turghundi-Herat railway to enhance regional connectivity. Speaking at the ECO Summit in Azerbaijan, Bektenov highlighted the project’s potential to bridge Central and South Asia. A memorandum will be signed soon, following talks with Afghan Deputy Prime Minister Abdul Ghani Baradar. Aruzhan Ualikhanova, The Astana Times, July 5
Northeast Asia
US leads the fight against North Korea crypto hacking expertise. North Korea has stolen over $2 billion in crypto assets this year, including a $1.5 billion heist from ByBit. The U.S. is increasing efforts to impede the regime’s ability to convert illicit crypto into usable funds. The Secret Service’s Global Investigative Operations Center has recovered nearly $400 million in the past decade, though much remains unrecovered. 62% of ByBit assets are no longer traceable. U.S. authorities are targeting both the financial and human elements of the threat, recently raiding 30 IT “laptop farms” and seizing email accounts linked to North Korean operatives. These workers collectively earn over $2.7 million monthly, often infiltrating companies under false identities. The U.S. also pursues controversial prosecutions like that of Tornado Cash's developers to deter crypto anonymization. Jon Russell,
, July 74:30 A.M. at a day labour market in China, a drink to start a day’s toil. Before dawn in Guiyang’s largest day labor market, thousands of job seekers converge in hopes of securing daily work. Amongst them, a seventy-year-old woman sells shots of baijiu to provide warmth and grit against a harsh day. These informal spaces offer a raw portrait of China’s displaced workforce. Aging, underskilled, and increasingly sidelined. Some livestream their hardship for income or visibility, blurring the line between survival and spectacle. Among them is Hui, a wealthy businessman masquerading as a migrant to build a personal brand for a future platform. Others, like Huang and Yong, struggle daily with poverty, alcoholism, and fading dreams. The market is a fleeting stage of resilience and routine, where finding huolu (a way to live) remains the driving goal. Yuxuan Jia, Zhong Huiqing,
, July 4Europe’s Rare Earth Dream is Processed in China. Europe’s ambition for rare earth independence is undermined by a deep-rooted dependency on Chinese processing, which dominates 92% of the global market. Despite declarations of sovereignty, EU efforts are criticized as symbolic and disconnected from industrial reality. A permanent magnet touted by Ursula von der Leyen as European-made was in fact processed in China. China’s export controls continue to disrupt EU manufacturing, while Europe's green transition paradoxically deepens its dependence. Europe’s delay in building domestic capacity and contradictory rhetoric, condemning China while relying on its inputs, reveal policy incoherence. Sebastian Contin Trillo-Figueroa, CHINA US Focus, July 4
Ishiba cries wolf on government debt as election gambit. Prime Minister Shigeru Ishiba has alarmed voters by likening Japan’s fiscal position to pre-crisis Greece, aiming to block opposition calls for a temporary consumption tax cut ahead of the July 2025 upper house election. Despite widespread support for the tax cut, government warnings echo past exaggerations used to stifle stimulus. Japan remains a net creditor, with only 13% of government bonds held by foreign investors and stable bond yields. Critics argue the real issue is stagnant real wages, not public debt. Rolling back corporate tax cuts from 1990 levels could more than fund the proposed relief. Instead, political inertia and fearmongering overshadow pragmatic fiscal options that address long-term economic malaise. Richard Katz, East Asia Forum, July 6
US economic statecraft must catch up to its Taiwan strategy. Taiwan’s economic fragility undermines its strategic role in US Indo-Pacific planning. A sudden surge in the Taiwan dollar and a surprise US-China tariff deal in May 2025 exposed Taipei’s economic vulnerabilities and isolation. Despite significant contributions in AI, defense spending, and semiconductor investment, Taiwan remains excluded from robust trade support, burdened by double taxation and watchlist scrutiny. These disconnects between economic policy and defense commitments risk weakening deterrence, especially as Taiwan’s local defense industry relies on stable commercial exports. Without economic reinforcement, Taiwan’s ability to withstand conflict pressures and contribute to regional security is jeopardized. Closer alignment of US trade, fiscal, and defense strategies is essential to sustain this critical partnership. Kevin Ting-Chen Sun and Howard Shen, East Asia Forum, July 5
Hard work, little reward: What’s driving China’s ‘lying flat’ generation. China’s youth are increasingly embracing “lying flat” opting for minimalism and low-pressure living, as a response to structural economic challenges, including overwork, limited career mobility, and a perceived erosion of meritocracy. Surveys reveal a generational shift away from traditional work values, with declining belief in hard work’s rewards and growing prioritization of leisure. While the government has criticized overwork culture and promoted traditional values, policy efforts remain insufficient. Young people still value personal responsibility but are skeptical of institutional fairness. Comprehensive reforms, targeting job security, wage growth, and social mobility, are essential to reengage youth and support long-term economic stability. Shan Wei, ThinkChina, July 4
Southeast Asia
The Strategic Relations of ASEAN and the EU: Trade, Green Economy, Geopolitics. The EU and ASEAN have transformed a colonial past into a strategic partnership centered on economic complementarity and geopolitical alignment. The EU exports high-tech goods and services, while ASEAN provides labor-intensive manufacturing and key raw materials. Their cooperation extends to climate goals, with the EU supporting ASEAN’s green transition through financing, technology transfer, and strict environmental trade standards. Geopolitically, both blocs hold pivotal maritime positions and seek diversified global ties amid U.S.–China tensions. ASEAN views the EU as a neutral strategic partner, while the EU sees ASEAN as a vital node in securing global trade and reducing dependence on China. Jit Soon Aw, Sino-Southeast Initiative, July 4
US Duties on Southeast Asian Solar Panel Exports: Where the Sun Does Not Shine. As of mid-June 2025, the U.S. has imposed steep antidumping and countervailing duties on solar panel imports from Cambodia, Malaysia, Thailand, and Vietnam to curb Chinese circumvention via third-party exports. Duties vary significantly, from 14.6% for Malaysia’s Hanwha Q CELLS to 3,529.3% for Cambodia’s Hounen Solar. The U.S. Department of Commerce invoked the “Particular Market Situation” provision, citing subsidized Chinese inputs distorting prices. These duties follow a temporary tariff suspension under the 2022 “solar bridge” policy. With over 85% of these countries’ exports going to the U.S., re-routing is difficult. Malaysia may gain competitiveness due to lower rates, but regional exporters face increased trade uncertainty as protectionist measures persist. Archanun Kohpaiboon, FULCRUM, July 4