China
Full Text: Remarks by Chinese Premier Li Qiang at the session on peace and security and global governance reform of the XVII BRICS Summit. Chinese Premier Li Qiang called for BRICS nations to lead in reforming global governance through unity, inclusiveness and peaceful development. He stressed the need for multilateral cooperation, mutual respect and shared prosperity, urging countries to reject power politics. Global Times, July 7
China strengthens elderly care safety with new emergency response plan. China has introduced a national emergency response plan to improve crisis preparedness in elderly care facilities, addressing scenarios such as natural disasters, accidents and public health incidents. The plan outlines standardized response protocols, post-crisis procedures and training measures. China Daily, July 7
Japan
Japan's real wages in May fall 2.9%, sharpest drop in nearly 2 years. Japan’s real wages fell 2.9% in May from a year earlier, the largest decline since September 2023, as wage increases failed to keep pace with inflation. Despite a 1.0% rise in nominal wages, inflation driven by higher food prices and an 18.7% drop in bonuses pushed inflation-adjusted earnings lower. It marked the fifth straight month of real wage declines. Kyodo News, July 7
Ishiba urged to talk with Trump to break impasse in tariff talks. Japanese Prime Minister Shigeru Ishiba rejected easy concessions in tariff talks with the U.S., asserting Japan's distinct position as a major investor and job creator. Opposition leaders urged Ishiba to speak directly with President Trump to extend the July 9 deadline. Lawmakers debated economic risks, with calls for contingency plans, tariff exemptions and expanded domestic demand. Anri Takahashi and Yuki Minami, The Asahi Shimbun, July 7
South Korea
South Korea to step up U.S. trade talks before tariffs kick in on August 1. South Korea will intensify trade talks with the United States before a 25% tariff on its exports takes effect August 1, following a letter from President Trump calling for more reciprocal trade. Officials from Seoul are in Washington seeking exemptions, while U.S. Secretary of State Marco Rubio and Trump indicated negotiations remain possible. Jack Kim, Ju-Min Park and Jihoon Lee, Reuters, July 7
South Korea court to hold July 9 hearing on ex-leader Yoon's detention warrant. A Seoul court will hold a July 9 hearing to consider a request from special prosecutors to detain former President Yoon Suk Yeol on charges of abuse of power and obstruction of justice. Yoon is already on trial for insurrection linked to his December martial law declaration. Prosecutors cited flight risk and witness tampering concerns in their request. Ju-min Park, Reuters, July 7
North Korea
N. Korea holds Cabinet meeting over economic issues. North Korea held a Cabinet plenary session to assess progress on its five-year economic development plan and implement directives from the recent ruling party meeting, according to state media. Premier Pak Thae-song and senior officials discussed strategies for meeting national targets, including completing a 50,000-home construction project in Pyongyang. Kim Soo-yeon, Yonhap News Agency, July 7
China plans major aid initiative as N. Korea relations warm. China is preparing large-scale aid to North Korea, based on embassy-led surveys of infrastructure and industry, as the two countries pursue deeper cooperation. Plans include supporting agriculture, light industry, tourism and medical modernization. Aid is being coordinated ahead of the October 10 anniversary of North Korea’s ruling party. Jeong Seo-yeong, Daily NK, July 7
Thailand
Thailand submits new trade proposal offering zero tariffs on many US goods. Thailand has submitted a revised trade proposal to the United States pledging zero tariffs on many American imports and increased purchases of U.S. products to avoid a planned 36% tariff on Thai goods. Finance Minister Pichai Chunhavajira said the offer aims to balance trade within a decade. The U.S. is Thailand’s largest export market, accounting for $54.96 billion in 2024. Kitiphong Thaichareon, Orathai Sriring and Thanadech Staporncharnchai, Reuters, July 7
Vietnam
Vietnam, China agree to beef up cooperation in various fields. Prime Minister Pham Minh Chinh and Chinese Premier Li Qiang met during the BRICS summit in Brazil and agreed to advance their countries’ strategic partnership. Both sides pledged to expand cooperation in trade, investment, science and technology, and infrastructure, with a focus on launching the Lao Cai-Hanoi-Hai Phong railway project. Vietnam News, July 7
Myanmar
Myanmar people skeptical of junta’s promises of election, peace. Myanmar citizens remain distrustful of the military regime’s pledges of peace and elections, viewing upcoming polls as illegitimate due to ongoing conflict and exclusion of opposition groups. The junta continues military offensives while planning a December 2025 or January 2026 vote, despite controlling only a third of townships. Critics say the election is designed to entrench the junta’s rule. Myo Pyae, The Irrawaddy, July 7
Myanmar’s civilian govt rebuffs junta’s appeal for ‘cooperation’. Myanmar’s National Unity Government rejected the junta’s call for armed groups to join pre-election cooperation, labeling it a deceptive strategy to legitimize a sham vote and divide opposition forces. The junta, facing battlefield setbacks, urged groups to join within legal frameworks. Pro-democracy fighters and ethnic armed organizations remain committed to resisting military rule imposed since the 2021 coup. The Irrawaddy, July 7
Cambodia
CDC predicts Jan-Jun approved projects will create 255,000 jobs. Cambodia’s Council for the Development of Cambodia approved 373 projects worth $5.8 billion in the first half of 2025, projecting the creation of 255,000 jobs. Investment rose 77% over the same period last year, with China contributing 56% of the capital. Most projects were in industry and manufacturing, including major developments in Kampong Speu, Svay Rieng and Phnom Penh. Hin Pisei, The Phnom Penh Post, July 7
SCRC delegates unite behind the government’s ICJ move on the Cambodia-Thailand border dispute. All 30 political parties in Cambodia’s Supreme Consultation and Recommendation Council have endorsed the government’s decision to bring its border dispute with Thailand to the International Court of Justice. Prime Minister Hun Manet chaired the meeting, which emphasized national unity in defending sovereignty over contested areas including Mom Bei and several temple sites. Khmer Times, July 7
Indonesia
Indonesia's top negotiator to visit U.S. ahead of tariff deadline, official says. Indonesia’s senior economic minister Airlangga Hartarto will travel to Washington before a July 9 tariff deadline as the country and the U.S. prepare to sign a $34 billion deal. The agreement covers increased Indonesian imports of U.S. wheat, soybeans, corn, cotton and energy. Potential U.S. tariffs could reduce Indonesia’s 2025 GDP growth by up to 0.5 percentage points. Stefanno Sulaiman and Bernadette Christina Munthe, Reuters, July 7
House Commission chair criticizes Constitutional Court for redefining election system. Indonesian lawmaker Rifqinizamy Karsayuda condemned the Constitutional Court's ruling mandating separate national and regional elections, accusing the court of exceeding its mandate and encroaching on legislative powers. The decision requires a 2.5-year gap between elections and may extend local officials’ terms, raising constitutional concerns. Ilham Oktafian and Heru Andriyanto, Jakarta Globe, July 7
Malaysia
No judicial crisis in Malaysia, says AGC amid calls for RCI over top court vacancies. Malaysia’s Attorney General’s Chambers rejected claims of a constitutional crisis following delays in appointing top judges, asserting the process adheres to Article 122B of the Federal Constitution. The AGC dismissed calls for a royal commission and denied allegations of judicial interference, warning against politicizing the appointment process. Acting leaders are in place following recent retirements. Malay Mail, July 8
Nepal
Nepal's ex-king Gyanendra Shah celebrates birthday as support for ousted monarch grows. Hundreds of royalist supporters gathered outside Gyanendra Shah’s Kathmandu residence to mark his 74th birthday, as momentum builds to reinstate the former monarch and restore Hinduism as the state religion. Critics of Nepal’s current leadership blame political parties for corruption and instability. Binaj Gurubacharya, Associated Press, July 7
Uzbekistan
Uzbekistan and China deepen ties across strategic, economic, and soft-power fronts. Uzbekistan and China formalized a multi-dimensional strategic partnership in June, highlighting Uzbekistan’s WTO accession and increased sectoral cooperation. Bilateral trade hit $14 billion in 2024, with over 3,400 Chinese firms operating in Uzbekistan. Major projects span energy, infrastructure and agriculture, while a 30-day visa waiver took effect in July. Dr. Robert M. Cutler, The Times of Central Asia, July 7
Northeast Asia
China's Economy: Why the Public Still Supports the CCP Despite Slow Growth. Despite mounting economic pessimism and structural challenges such as real estate collapse, local government debt, and weak consumption, many Chinese citizens continue to support the Chinese Communist Party (CCP). Conversations with residents in Henan and Beijing reveal skepticism toward official economic policies and propaganda, yet an enduring appreciation for decades of material progress, public safety, and infrastructure improvements. Even those frustrated with the economic situation acknowledge the CCP’s role in elevating living standards and modernizing the nation. While economic grievances persist and censorship suppresses open dissent, broad support for the regime remains intact due to the lived contrast between past hardship and present-day advancements. Aaron Glasserman, Foreign Policy, July 7
Trump's Destruction of USAID Won't Cede Space to China. Although the dismantling of USAID by the Trump administration has sparked concerns that China will step in to fill the void, multiple factors limit Beijing's capacity to replace American aid. China's annual foreign assistance, estimated between $5 billion and $8 billion, pales in comparison to the $63 billion once provided by the United States. Domestically, there is little political or public support in China for expanding aid programs while poverty persists at home. Additionally, China's leadership avoids framing its initiatives as "aid," preferring the rhetoric of "south-south cooperation." Beijing’s approach often focuses on trade finance over traditional development aid and focuses on countries where it has existing strategic interests. Thus, while China may exploit opportunities from U.S. retrenchment, it is unlikely to replicate the scale or model of Washington’s soft power strategy. Henry Tugendhat and James Palmer, Foreign Policy, July 7
There’s been a shift in US-China tech competition – and it’s not good news for the rest of the world. The Trump administration’s rollback of AI export restrictions signals a change in strategies from containment to management in US-China tech competition, as Chinese AI chips like Huawei’s Ascend 910 gain traction globally. Despite US threats of sanctions for using these chips, their competitiveness and lower costs appeal to countries outside the Western bloc. Huawei’s growing success, especially in regions like the Middle East and Southeast Asia, shows China’s ambition and technical capability. Beijing has responded forcefully, invoking its Anti-Foreign Sanctions Law to target entities complying with US controls. The escalating tit-for-tat rule-making from both powers leaves global companies exposed to unpredictable legal risks and forces allies to choose sides. Antonia Hmaidi and Rebecca Arcesati, Merics, July 7
AI surveillance and the governance vacuum in the Asia-Pacific. As the European Union enforces strict regulations on biometric surveillance under its new AI Act, the Asia-Pacific region faces a widening governance vacuum amid rapid adoption of Chinese AI-powered surveillance systems. Chinese firms like Huawei and Hikvision dominate “safe city” initiatives, embedding facial recognition and real-time monitoring technologies into regional infrastructure. These tools, while marketed for security, also enable political control with little oversight, particularly in semi-authoritarian states. Lacking cohesive governance, the region risks defaulting to surveillance norms dictated by Chinese technology and bundled contracts. Democracies such as Japan, South Korea, and Australia are urged to lead regional coordination to establish standards that safeguard transparency and human rights. Monique Taylor, Lowy Institute, July 7
What the UK must get right in its China strategy. The UK must overhaul its China strategy to balance economic engagement with growing geopolitical risks, advocating for a resilient, autonomous, and flexible approach. Strategic priorities include countering transnational repression and malign influence, selectively managing Chinese investment, and strengthening supply chain and technological resilience. The UK should impose zero-tolerance policies on civil liberties violations, permit investment only in non-critical sectors with strict safeguards, and adopt a more independent stance amid intensifying US-China rivalry. Institutional reform, including a national China coordination centre, to improve cross-sector analysis and policy coherence, should also be pursued. William Matthews, Chatham House, July 7
South Korea will not take the Trump tariffs lying down. Facing renewed tariffs from the Trump administration, South Korea under President Lee Jae-myung is formulating a calculated response to avoid economic disruption and protect national interests. Tariffs imposed in March 2025 on Korean automobiles and broader imports have already led to declining exports and diplomatic tensions, worsened by Trump's cancellation of a scheduled meeting with Lee. While Washington seeks a sweeping “one-stop shopping” trade and defense deal, Seoul is wary of overconcession. Drawing on prior experience countering economic coercion from China and Japan, South Korea is deploying trade diversification, domestic industry support, and quiet diplomacy. Officials from past crises now advise Lee, advocating delay tactics and measured reciprocity. The administration seeks to align with like-minded states to defend rules-based trade and guard against further economic pressure. Alexander M Hynd and Daniel Connolly, East Asia Forum, July 7
Oil Giant Adds Fuel to Soft Power Push. China’s largest oil firm, CNPC, has launched an international communication center as part of a sweeping CCP strategy to amplify Chinese narratives globally through state and corporate entities. Established under the company's media division, the new center aligns with “Xi Jinping Thought on Culture” and reflects the Party’s mandate to “tell China’s story well.” This initiative follows the creation of hundreds of similar centers across China since 2021, including one in Pujiang county focusing on ancient rice cultivation. CNPC’s outreach includes engaging media from Africa and the Middle East, signaling a deeper fusion of economic interests and propaganda in global energy diplomacy. David Bandurski, China Media Project, July 7
Southeast Asia
Indonesia’s Energy Sector Reforms Under Prabowo: Moving Backwards?
President Prabowo's energy strategy is marked by fragmentation, policy reversals, and weak coordination, reversing some of the progress made under Jokowi. The dissolution of a key coordinating ministry has fractured energy governance, while major reforms like coal phase-out and subsidy restructuring lack clear leadership or consensus. The administration’s focus on energy self-sufficiency focuses on biofuels, despite higher costs, environmental concerns, and heavy subsidies benefiting major corporations over smallholders. Coal reduction efforts remain vague, undermined by conflicting official statements and a preference for retrofitting over retirement. Meanwhile, energy subsidies are growing again, constrained by poor data accuracy and overlapping mandates. Without institutional coherence, Prabowo’s goals risk stalling. Anissa R. Suharsono and Yanuar Nugroho, Fulcrum, July 8
Oceania
Allied burden-sharing must reshape Australia’s defence priorities. Australia faces mounting pressure to increase defense spending amid changing global dynamics and a more transactional U.S. approach under the “America First” doctrine. As U.S. leaders urge allies to shoulder more security responsibilities, Australia is balancing its AUKUS commitments with efforts to diversify security ties, including deeper engagement with Southeast Asia, Japan, and the European Union. While the U.S. demands an immediate rise to 3.5% of GDP in defense spending, domestic leaders argue for a more calculated approach aligned with sovereign needs. The growing fiscal strain of AUKUS, uncertainty over U.S. policy in the Indo-Pacific, and China’s strategic assertiveness necessitate clearer prioritization of capability development and alliance management. Arthur Sinodinos, Lowy Institute, July 7