News
Philippines won’t invoke mutual defense treaty with US after Chinese confrontation at disputed shoal. The Philippines will not invoke its mutual defense treaty with the U.S. after Chinese coast guard personnel reportedly attacked Philippine navy boats at Second Thomas Shoal. President Ferdinand Marcos Jr.'s advisors downplayed the incident, labeling it a misunderstanding rather than an armed attack. The confrontation involved Chinese personnel ramming and boarding Philippine boats, resulting in injuries and the seizure of rifles. The Philippines condemned the aggression and demanded China return the rifles and pay for damages. Jim Gomez, AP News, June 21
China warns of possible 'trade war' with EU. Beijing cautioned Friday that escalating trade frictions with the European Union over electric vehicle imports could spark a trade war, as Germany's economy minister, Robert Habeck, visited China to address the proposed tariffs. China's commerce ministry accused the EU of intimidating Chinese firms and threatened retaliation. Germany's leading car manufacturers, heavily dependent on Chinese sales, opposed the tariffs. Habeck's visit aims to explain Germany's stance and mitigate risks of Chinese countermeasures. Joe Cash and Maria Martinez, Reuters, June 21
For Kishida, the LDP election means a fraught summer ahead. With parliament closing on Sunday, attention turns to Prime Minister Fumio Kishida's summer plans as rivals rally support ahead of the September Liberal Democratic Party presidential election. Asked about running again or considering a snap general election or Cabinet reshuffle, Kishida emphasized his focus on issues such as restoring trust in politics, earthquake recovery, economic growth, and diplomacy. Eric Johnston, The Japan Times, June 21
President Tô Lâm hosts newly-accredited ambassadors. Vietnamese President Tô Lâm hosted receptions for the new ambassadors of Nicaragua, Iceland, Turkmenistan, and Cyprus in Hà Nội on Friday. He discussed strengthening bilateral relations, economic-trade cooperation, and mutual support at multilateral organizations. Each ambassador pledged to foster friendship and cooperation in various sectors, including politics, economy, culture, education, and tourism. The meetings emphasized deepening mutual understanding and creating conditions for expanded collaboration. Vietnam News, June 21
South Korea summons Russian ambassador as tensions rise with North Korea. South Korea summoned the Russian ambassador Friday to protest a new defense pact with North Korea amid rising border tensions. Earlier, North Korean leader Kim Jong Un's sister issued a vague threat after South Korean activists sent anti-Pyongyang leaflets across the border. The pact between Russia and North Korea, which promises mutual defense, has prompted South Korea to reconsider its arms supply policy to Ukraine. South Korea's military reported increased North Korean activity near the border. Kim Tong-Hyung, AP News, June 21
Chinese military focusing on nuclear-powered subs with eye on US Navy: analysts. China’s PLA Navy is prioritizing nuclear-powered submarines to enhance its long-distance combat and deterrence capabilities against the US. This shift aims to bolster China’s strategic defense and naval readiness. Analysts highlight the development of advanced Type 094A ballistic missile submarines and the forthcoming Type 096, which will address noise issues. This modernization aligns with China's broader strategy to fortify its maritime strength amidst escalating tensions in regions like the Taiwan Strait and the South China Sea. Zhao Ziwen and Coy Li, South China Morning Post, June 21
Election talks in Myanmar are touching on amending the constitution, junta says. Myanmar's junta negotiators met with representatives from four political parties in Naypyitaw to discuss constitutional amendments ahead of the planned election next year. The talks, led by the National Solidarity and Peace Negotiation Committee, included the military's proxy Union Solidarity and Development Party. The proposed amendments aim to prevent future conflicts and establish a democratic and federal union. The discussions are part of the junta's broader efforts to shape the post-coup political landscape. The Irrawaddy, June 21
Uzbek citizens still facing difficulties when entering Russia. Migrants from Uzbekistan face increased checks and entry difficulties in Russia, prompting Uzbekistan's embassy to appeal to Russia's Ministry of Foreign Affairs. Complaints have surged, especially at Moscow’s Sheremetyevo airport, following a terrorist attack in March linked to Tajik nationals. This has led to heightened security measures affecting Central Asian travelers. The embassy's call center has received numerous complaints about these issues. The Times of Central Asia, June 21
Vietnam says it’s ready to hold talks with Philippines on overlapping continental shelf claims. Vietnam has expressed willingness to engage in discussions with the Philippines to resolve overlapping claims on the continental shelf in the South China Sea, emphasizing mutual benefits and respect for international laws. This diplomatic stance contrasts with China’s assertive actions in the disputed waters. The Philippines recently asked a UN body to recognize its rights to the seabed in the contested area, which may overlap with claims by other states including Vietnam. Aniruddha Ghosal and Jim Gomez, AP News, June 21
Army rebuffs communist insurgents in Nueva Vizcaya. The Philippine Army successfully repelled New People's Army (NPA) insurgents in Alfonso Castaneda, Nueva Vizcaya. The confrontation occurred in Sitio Marikit East, Barangay Abuyo, where the NPA was allegedly planning to terrorize local communities. The army's aerial and ground operations forced the rebels to withdraw, restoring peace to the area, which had been free of NPA influence for decades. Military officials emphasized their commitment to maintaining security and preventing insurgent activities in the region. Francisco Tuyay, The Manila Times, June 21
Bank of Laos raises interest rate to 10% amid economic challenges. The Bank of Lao PDR increased its interest rate for short-term loans from 8.5% to 10% per annum, effective June 12, 2024. Approved by Governor Bounleua Sinxayvoravong, the decision addresses domestic and global economic changes. This marks a significant step following previous adjustments, aiming to influence borrowing costs, investment strategies, and overall economic activity in Laos. The new rate replaces the prior directive from March 7. Namfon Chanthavong, The Laotian Times, June 21
MFP urged to tactically unite. The Progressive Movement has urged the ruling Pheu Thai Party and the opposition Move Forward Party (MFP) to unite against a dissolution law rather than attack each other. Piyabutr Saengkanokkul, PM's secretary-general, highlighted the need for unity in resisting unjust legislation. This follows a parliamentary debate where MFP leader Chaithawat Tulathon criticized Pheu Thai's digital wallet scheme. Pheu Thai's Danuporn Punakanta pointed to MFP's lese majeste law stance as problematic. Both parties face dissolution threats over these issues. Chairith Yonpiam, Bangkok Post, June 21
Tajikistan’s former Foreign Minister Hamrokhon Zarifi detained in Dushanbe. Former Tajik Foreign Minister Hamrokhon Zarifi was detained on June 12, 2024, in Dushanbe by law enforcement agencies. He was initially held at the Ministry of Internal Affairs detention center. His detention relates to an economic crime during the construction of the Foreign Ministry building when he was in office. This incident coincided with the arrest of Saidjafar Usmonzoda, a member of parliament, on charges of attempting to seize state power. The Times of Central Asia, June 21
Nissan to close auto plant in China amid intensifying EV price war. Nissan Motor Co. will shut down its passenger car production plant in Jiangsu Province, China, by the first half of 2025. This move responds to declining sales and increasing competition in the electric vehicle market. The decision reflects broader industry trends as automakers face mounting pressure to adapt to rapid market changes. The closure is part of Nissan's strategy to enhance operational efficiency and focus on key growth areas. Kyodo News, Kyodo News, June 21
Long Form
"Managed Competition" in China's State Firms. China's state-owned enterprises (SOEs) have evolved from bureaucratic monopolies to competitive entities operating within a state-coordinated framework. This system, termed "managed competition," allows SOEs to leverage market forces while avoiding destructive competition. SOEs compete through subsidiaries that bid on projects, ensuring efficiency and innovation, while parent companies coordinate resources and strategy. This structure supports national economic goals and enhances global competitiveness.
Kyle Chan,
The AI Scramble: Why SoftBank, KDDI, and Others Are Racing for Sharp's LCD Factory. Sharp and KDDI are collaborating to transform Sharp’s Sakai LCD plant in Osaka into what is projected to be Asia’s largest AI data center. This initiative, involving Super Micro Computer and Datasection, responds to the growing need for advanced data centers to support AI technologies. The site will house approximately 1,000 servers equipped with Nvidia’s latest GPUs, optimizing for AI model training and operations. Ryohtaroh Satoh, Nikkei Asia, June 2024
Pacific Powers Must Strike Careful Balance in New Caledonia. Pacific powers need to navigate a delicate balance in New Caledonia amid rising tensions and political instability. French Home Affairs and Overseas Minister Gérald Darmanin’s attempts to mediate have faced resistance, particularly from the pro-independence Union Calédonienne. The proposed amendments to New Caledonia's electoral laws and political status are contentious, with local parties divided on the way forward. The situation is further complicated by economic challenges and environmental concerns, making diplomatic efforts crucial in maintaining regional stability. Stephanie Lawson, Nikkei Asia, June 21
China’s EV Drive Accelerates in Latin America. China is expanding its electric vehicle (EV) market in Latin America, capitalizing on US tariffs and EU protectionist measures. Chinese companies like BYD and Great Wall are investing in local production, research, and development in countries such as Brazil and Mexico. This growth is also tied to China’s involvement in Latin America’s lithium mining industry, essential for EV production. The environmental and social impacts of increased mining activities remain a concern. Margaret Myers, East Asia Forum, June 21
To Lam’s Ambitious Ascent in Vietnam. To Lam, Vietnam's State President and former Minister for Public Security, has strategically used anti-corruption measures to eliminate rivals, solidifying his influence. His ascent comes amid anticipated retirements and political maneuvering within the Communist Party of Vietnam. Lam's control over security apparatus has been pivotal in his rise, but his future as general secretary remains uncertain. The upcoming CPV Congress will be crucial in determining his ultimate success. David Brown, East Asia Forum, June 21
In Southeast Asia, the Authorities Are the Biggest Gun Dealers in Town. The region's black market for small arms thrives with many weapons sourced from official military stockpiles, driven by high-level corruption and weak inventory control. Organized crime and guerrilla fighters depend on these arms, exacerbating regional instability and violence. States struggle to trace and secure these weapons, leading to widespread illicit trade. Lindsey Kennedy and Nathan Paul Southern, The Diplomat, June 21