Asia Daily: June 18, 2025
China
New Zealand PM to discuss trade, tourism and security on first visit to China. Prime Minister Christopher Luxon arrived in China for his first official visit since taking office in 2023, aiming to bolster trade, tourism, and education ties while addressing sensitive security and defense issues. He will meet with President Xi Jinping and Premier Li Qiang. Liz Lee and Lucy Craymer, Reuters, June 17
China's Xi signs treaty to elevate ties with Central Asia. President Xi Jinping signed a treaty of "permanent good-neighbourliness and friendly cooperation" with leaders of five Central Asian nations during a summit in Astana, aiming to deepen trade, energy, and infrastructure links. Xi pledged 1.5 billion yuan in grants and emphasized opposition to hegemonism, while urging progress on the China-Kyrgyzstan-Uzbekistan railway. Xiuhao Chen, Ethan Wang, Ryan Woo and Ellen Zhang, Reuters, June 17
Japan
Trump says he sees chance of trade deal with "tough" Japan. U.S. President Donald Trump expressed optimism about a potential trade deal with Japan after meeting Prime Minister Shigeru Ishiba at the G7 summit in Canada, despite no breakthrough on U.S. tariffs. Trump described the talks as positive but reiterated that the U.S. would demand payment terms or restrict market access if needed. Japan continues to seek concessions amid ongoing negotiations. Kyodo News, June 17
Japanese and Canadian leaders agree to enhance security ties. Prime Minister Shigeru Ishiba and Canadian Prime Minister Mark Carney agreed to bolster security cooperation during talks at the G7 summit in Kananaskis. They confirmed plans to sign agreements on sharing classified information and defense equipment exports. The leaders also discussed joint efforts in LNG, small modular reactors, storage batteries, and critical minerals amid global economic challenges from U.S. tariffs. The Japan Times, June 17
South Korea
Gov't, ruling party push for cash handout for all citizens in extra budget plan. South Korea’s government and the ruling Democratic Party agreed to include universal cash handouts in a second supplementary budget expected to exceed 20 trillion won. The plan also includes targeted aid for low-income and vulnerable groups. The initiative, part of President Lee Jae Myung’s economic agenda, follows an earlier 13.8 trillion-won budget passed in May for small merchant support. Yi Wonju, Yonhap News Agency, June 18
PM nominee to undergo parliamentary confirmation hearing next week. Prime Minister nominee Kim Min-seok will face a two-day confirmation hearing next week, with sessions scheduled for Tuesday and Wednesday. The National Assembly must complete the hearing by June 25 and its evaluation by June 29. A close aide to President Lee Jae Myung, Kim stressed the importance of inter-Korean engagement during a press briefing. Lee Minji, Yonhap News Agency, June 17
North Korea
North Korea's Kim met Russia's top security official, state media say. North Korean leader Kim Jong Un met with Russian Security Council Secretary Sergei Shoigu in Pyongyang to discuss cooperation on Russia’s “special military operation” in the Kursk region. Plans include commemorating North Korean soldiers’ roles and deploying thousands of workers to rebuild areas affected by Ukrainian incursions. Hyunsu Yim, Reuters, June 17
North Korea will help Russia rebuild Kursk after Ukrainian incursion, Kim tells Putin ally. North Korea will send 1,000 sappers and 5,000 military construction workers to Russia’s Kursk region to aid reconstruction after repelling a Ukrainian incursion, according to Russian Security Council Secretary Sergei Shoigu. During his second visit to Pyongyang in two weeks, Shoigu conveyed a message from Putin and discussed joint defense initiatives. Andrew Osborn, Reuters, June 17
Thailand
Bhumjaithai seeks EC delay. Bhumjaithai Party members summoned by the Election Commission over alleged Senate election collusion requested a postponement of their meeting to June 30. The EC has not yet approved the delay. The party may file a formal complaint, citing politically motivated targeting. Senior figures including Anutin Charnvirakul and Newin Chidchob deny wrongdoing, with accusations involving vote-rigging and constitutional violations under Section 92. Aekarach Sattaburuth, Bangkok Post, June 17
Laos
Corruption in Lao banking sector causes LAK 1.6 billion in losses in 2024, Bank of Laos says. Widespread corruption in Laos’ banking system resulted in LAK 1.6 billion in losses in 2024, with only LAK 137.43 million recovered, according to the Bank of Laos. A total of 21 corruption cases were reported, including six new ones and ongoing investigations from prior years. Disciplinary action was taken against 167 individuals across several banks. Thongsavanh Souvannasane, The Laotian Times, June 17
Cambodia
Philippines
16 lawyers to defend Sara in impeach trial. Vice President Sara Duterte’s legal team, comprising 16 lawyers from Fortun Narvasa & Salazar, formally entered their appearance before the Senate impeachment court. Meanwhile, the House prosecution panel, bolstered by former senator Leila de Lima and Chel Diokno, prepares for trial as Senate leaders debate procedural timelines and jurisdiction. Red Mendoza, Bernadette E. Tamayo, Reina C. Tolentino and Javier Joe Ismael, The Manila Times, June 18
Indonesia
Iran, a country at war, invites Prabowo for state visit. Iran, amid its ongoing conflict with Israel, has invited Indonesian President Prabowo Subianto for a state visit, citing his active diplomatic engagements. Iranian Ambassador Mohammad Boroujerdi announced the invitation while urging Muslim nations, including Indonesia, to boycott Israeli goods. The request coincides with Prabowo’s regional tour and precedes his upcoming talks with Russian President Vladimir Putin. Jayanty Nada Shofa, Jakarta Globe, June 17
Taiwan
Taiwan seals Ukraine combat-tested drone software deal to help deter China. Taiwan signed a partnership with U.S.- and German-based Auterion to adopt drone software proven in Ukraine’s war, aiming to bolster asymmetric defense against China. The deal with Taiwan’s National Chung-Shan Institute of Science and Technology could lead to millions of drones being deployed over time. Ann Wang, Reuters, June 17
Taiwan completes first sea trial for domestically made submarine in defence milestone. Taiwan successfully conducted the first sea trial of its domestically developed submarine, the Narwhal, marking a major milestone in its defense modernization efforts. Built by CSBC Corp with U.S. and British support, the T$49.36 billion vessel features Lockheed Martin’s combat system and U.S.-made Mark 48 torpedoes. Underwater tests will follow, with two submarines expected to deploy by 2027. Ben Blanchard, Reuters, June 17
Uzbekistan
Leaders of Uzbekistan and China discuss expansion of comprehensive strategic partnership. Presidents Shavkat Mirziyoyev and Xi Jinping met in Astana to deepen Uzbekistan–China relations, emphasizing trust and mutual support. They reviewed the active implementation of January 2024 agreements, expansion of trade reaching $14 billion, and a $60 billion joint investment portfolio. New initiatives span energy, industry, and digital sectors. Uzbekistan Daily, June 17
Northeast Asia
Don’t Call It a Done Deal: The U.S.-China London Talk is (Hopefully) Just the Beginning. The recent U.S.–China economic dialogue in London resulted in conflicting narratives: Washington proclaimed a finalized deal while Beijing talked of a preliminary framework focused on continued institutional dialogue. The Chinese statement emphasized strategic engagement to reduce tensions, whereas U.S. messaging, primarily through President Trump’s Truth Social post, implied a definitive resolution. Key areas like tariffs, rare earth exports, and broader trade agreements remain vague and unresolved. Although some tariff rollbacks mirror prior understandings, critical measures such as Section 301 and fentanyl-related tariffs persist. Claims about rare earth accessibility and increased U.S. exports lack substantiation. The disparity in tone and substance signals a fragile truce, not a sustainable resolution. With deadlines approaching, such as a tariff decision by August 10, the outlook remains uncertain. Reverting to celebratory declarations without solid groundwork risks repeating past failures in bilateral mechanisms. Yilun Zhang, ICAS, June 17
IOMed: Another China-led global organisation? China, with 33 other countries, launched the International Organization for Mediation (IOMed) on May 30, 2025, in Hong Kong, establishing the first treaty-based global body dedicated solely to mediation in international disputes. IOMed focuses on state-to-state, investor-state, and commercial disputes, operating on principles like sovereignty, impartiality, and non-interference. Though voluntary and non-binding, it aims to offer an affordable, confidential alternative to Western-dominated legal mechanisms. Its structure includes a governing council, secretariat, and panels of mediators. Beijing presents IOMed as part of its broader push to reform global governance and challenge existing legal norms. However, concerns remain regarding impartiality, legitimacy, and the conspicuous absence of Western participation. Critics highlight China’s past rejection of rulings like the 2016 South China Sea arbitration to question its commitment to neutrality. While IOMed addresses a gap in current dispute resolution frameworks, its credibility and global influence remain uncertain. Ghulam Ali, ThinkChina, June 17
China Strengthens Ties in Central Asia. Chinese President Xi Jinping concluded a high-profile visit to Kazakhstan, reinforcing China’s economic and strategic ties with Central Asia. The visit marked the second China–Central Asia summit, during which China and Kazakhstan signed multiple agreements, including on energy infrastructure like the Sauran solar plant and a coal-to-gas chemical facility. Discussions also advanced on upgrading the Shymkent oil refinery and possibly building a second nuclear plant with Chinese technology. Beyond Kazakhstan, Xi met leaders of Kyrgyzstan, Tajikistan, Turkmenistan, and Uzbekistan, promoting projects like the China–Kyrgyzstan–Uzbekistan railway and pushing for a joint stance against “unilateralism.” China aims to secure regional influence through economic integration and infrastructure, leveraging political affinity with Central Asia’s ruling elites. While economic cooperation intensifies, experts note China’s long-term goal of solidifying its status amid global power shifts, aligning with Russia to challenge U.S.-led frameworks. Paolo Sorbello, Vlast, June 17
China: Buying time to meet socialist modernisation goals. Amid ongoing trade tensions with the U.S., China is pursuing a deliberate long-term strategy to stabilize its economic trajectory and achieve its 2035 socialist modernization goals. While U.S. President Trump seeks rapid, high-profile deals, Chinese President Xi Jinping favors a slower, structured negotiation process aimed at minimizing risks and securing strategic advantages, such as delaying tariffs and technology restrictions. This aligns with Xi’s broader philosophy of “strategic composure,” which prioritizes long-term national development over short-term gains. The latest trade framework agreement remains vague, and China is using the stalemate to strengthen its domestic industries, particularly in areas like rare earths, where it holds leverage. Internally, China has corrected course from earlier economic disruptions, introducing stimulus measures and redirecting policy focus to sectors aligned with national strategic objectives. This measured pacing shows Beijing’s commitment to advancing modernization without being derailed by external volatility. Yang Danxu, ThinkChina, June 17
Southeast Asia
Balancing sovereignty and integrity in ASEAN carbon markets. As ASEAN nations expand their climate initiatives, national carbon crediting schemes are gaining traction, reflecting both an assertion of sovereignty and a push for tailored environmental solutions. Countries like Malaysia, Indonesia, and Thailand have launched domestic programs that prioritize local priorities, such as biodiversity and social co-benefits, while potentially lowering transaction costs. However, the absence of global recognition poses challenges for market access, as international buyers favor established standards like Verra and Gold Standard due to their perceived credibility. National schemes must balance accessibility with environmental integrity to avoid risks like double-counting and weak oversight. Interoperability, benchmarking against global principles such as ICVCM and VCMI, and regional harmonization via a potential ASEAN Common Carbon Framework are essential to foster trust and cross-border trade. By aligning sovereignty with rigorous standards, ASEAN can position itself as a credible player in global carbon markets. Renard Siew, East Asia Forum, June 18
Understanding Bobby Saputra, Indonesia’s “Professional Son.” Bobby Saputra, a viral persona played by Indonesian creator Ben Sumadiwiria, parodies wealth, privilege, and nepotism through outlandish social media skits. Despite flaunting luxury and claiming ties to elite family wealth, Bobby is a fictional character using borrowed props and settings. His satire mocks the superficiality of influencer culture and critiques Indonesia’s entrenched socio-economic inequality. Bobby’s absurd portrayal resonates with Southeast Asian audiences facing real frustrations—youths disillusioned by political corruption, economic disparity, and nepotism. His exaggerated traits caricature the excesses of social media elites, turning the genre into a tool for political commentary and cultural critique. By provoking laughter rather than outrage, the character circumvents censorship and backlash, making satire a powerful outlet for youth engagement. Bobby’s popularity reflects a broader regional trend where humour is used to question and subvert unjust systems. Brandon Tan Jun Wen, FULCRUM, June 17
South Asia
Bangladeshi workers pay the price when Australian fashion brands collapse. The collapse of Australian fashion retailers such as Mosaic Brands, Jeanswest, and Ally Fashion since October 2024 has left Bangladeshi suppliers with unpaid debts nearing US$15 million, jeopardizing thousands of garment workers. These workers, often earning poverty wages without financial safety nets, face heightened risks of exploitation and factory shutdowns. Despite publishing modern slavery statements under Australia’s Modern Slavery Act, Mosaic Brands failed to address its own exploitative practices, including extended 120-day payment terms and insufficient progress on living wage commitments. The current regulatory focus on Australian stakeholders neglects the broader impact on overseas supply chains. Voluntary initiatives alone have proven inadequate. Proposals for mandatory due diligence and an industry-funded garment worker trust fund aim to address these structural failures. Without stronger enforcement, the Australian fashion industry risks perpetuating a system where vulnerable Global South workers bear the cost of market collapses. Alice Payne and Justine Coneybeer, East Asia Forum, June 17