News
China expels 2 former defense ministers from its ruling Communist Party over graft allegations. China has expelled two former defense ministers, Li Shangfu and Wei Fenghe, from the ruling Communist Party due to corruption accusations likely to result in life imprisonment. Li Shangfu, removed from office in October 2023 after a two-month disappearance, is accused of abusing his authority and taking bribes. Wei Fenghe, under investigation since September, allegedly violated political and organizational discipline by accepting large bribes in exchange for favors. Both face prosecution by the People's Liberation Army's justice system. President Xi Jinping, also head of the armed forces, has made anti-corruption a key focus of his rule, leading to multiple purges within the military. AP News, June 27
N. Korea ramps up public executions of people distributing S. Korean movies: unification ministry. North Korea has increased public executions of individuals who watch or distribute South Korean movies and music, according to South Korea's unification ministry. The report highlights Pyongyang's intensified efforts to block external cultural influences, deemed a threat by the regime. The ministry's findings, based on testimonies from 141 North Korean defectors, reveal harsh punishments under laws aimed at preventing the spread of outside information. The 2020 law on rejecting "reactionary ideology and culture" carries severe penalties, including public executions. Kim Soo-yeon, Yonhap News Agency, June 27
Japan seeks global cooperation to solve abduction issue with North Korea. Japan is seeking international support to resolve the long-standing abduction issue with North Korea. Japanese Prime Minister Kishida Fumio called for global cooperation during his speech at the United Nations, emphasizing the need for a unified approach to pressure North Korea into addressing the abductions of Japanese citizens. The abduction issue, involving Japanese nationals kidnapped by North Korean agents in the 1970s and 1980s, remains a significant diplomatic concern for Japan. Kishida reiterated Japan's commitment to securing the return of the abductees and stressed that international solidarity is crucial in resolving this humanitarian issue. Kyodo News, June 27
Kazakhstan Stock Exchange set to recoup shares from Moscow Exchange. The Kazakhstan Stock Exchange (KASE) announced plans to reacquire a 4.3% stake previously sold to the Moscow Exchange (MOEX). This move is part of KASE's strategy to regain control over its shares and strengthen its position in the regional financial market. The buyback agreement is expected to be finalized soon, with the aim of enhancing KASE's autonomy and fostering greater market stability. This decision comes amid heightened economic tensions and shifting dynamics in the region's financial markets. The reacquisition is seen as a significant step toward bolstering the independence and resilience of Kazakhstan's financial institutions. The Times of Central Asia, June 26
Senate election ends without ex-PM candidate. Thailand's Senate election concluded without a candidate associated with former Prime Minister Thaksin Shinawatra, despite widespread speculation that Thaksin's loyalists might participate. The final candidate list did not include any figures linked to the ex-PM, a notable absence given his enduring influence in Thai politics. The election results favored candidates backed by the current military-aligned government, which won the majority of the 250 seats available. With general elections approaching, the absence of Thaksin-linked candidates and the dominance of military-backed individuals will shape Thailand's political dynamics and future governance. Bangkok Post, June 27
North Korea says it tested a new multiwarhead missile. South Korea says it’s covering up a failure. North Korea claimed on Thursday that it successfully tested a multiwarhead missile, aiming to overwhelm U.S. and South Korean missile defenses. However, South Korea dismissed this as a cover-up for a failed launch. North Korean state media reported that the launch tested the separation and guidance control of individual mobile warheads. In contrast, South Korea’s military assessed that the missile exploded in its initial flight stage. The missile was similar to a liquid-fuel Hwasong-17 ICBM. Analysts believe more tests will follow to perfect this technology. Hyung-jin Kim, AP News, June 27
No country can claim the entire SCS, Manalo says. Philippine Foreign Secretary Enrique Manalo stated that no single country can claim the entire South China Sea (SCS). During a forum on maritime disputes, Manalo emphasized the importance of the United Nations Convention on the Law of the Sea (UNCLOS) in resolving territorial conflicts. He urged nations to adhere to international law and promote cooperation to maintain peace and stability in the region. This assertion aligns with the Philippines' stance against China's expansive claims in the SCS. Bernadette E. Tamayo, The Manila Times, June 27
Kazakhstan Stock Exchange set to recoup shares from Moscow Exchange. The Kazakhstan Stock Exchange (KASE) announced plans to reacquire a 4.3% stake previously sold to the Moscow Exchange (MOEX). This move is part of KASE's strategy to regain control over its shares and strengthen its position in the regional financial market. The buyback agreement is expected to be finalized soon, with the aim of enhancing KASE's autonomy and fostering greater market stability. This decision comes amid heightened economic tensions and shifting dynamics in the region's financial markets. The reacquisition is seen as a significant step toward bolstering the independence and resilience of Kazakhstan's financial institutions. The Times of Central Asia, June 27
India’s president inaugurates newly elected parliament and sets out economic reforms as a key agenda. India’s president inaugurated a new parliament on Thursday following national elections, outlining Prime Minister Narendra Modi’s government priorities, which include fast-tracking economic reforms and boosting small and medium-size enterprises to create jobs. President Draupadi Murmu highlighted India’s rapid economic growth, with an average of 8% over the past four years. Modi’s government, despite not securing a majority independently, relies on coalition partners for governance. The government aims to present the 2024-25 budget next month, envisioning India as a developed country by 2047. Ashok Sharma, AP News, June 27
Foreign minister declares PM Chinh's China trip a success. Vietnamese Foreign Minister Bui Thanh Son declared Prime Minister Pham Minh Chinh's recent trip to China a success, noting that it strengthened bilateral ties and cooperation. The visit included meetings with Chinese President Xi Jinping and other high-ranking officials, where discussions focused on enhancing economic, political, and social collaboration. Key outcomes included agreements on trade, investment, and regional stability, reinforcing the comprehensive strategic partnership between the two nations. Vietnam News, June 27
Laos, South Korea strengthen ties with early warning system grant. Laos and South Korea have enhanced their bilateral relations through a grant aimed at establishing an early warning system in Laos. The grant agreement was signed by Lao Deputy Minister of Foreign Affairs, Thongphane Savanphet, and South Korean Ambassador to Laos, Yoon Soon-gu. This system is designed to improve disaster preparedness and response in Laos, particularly for natural disasters such as floods and landslides. The project will include the installation of monitoring equipment and the development of a communication network to alert local communities in real-time. Kheuakham Chanlivong, The Laotian Times, June 27
Myanmar junta bolsters Mandalay defenses amid resistance attacks. The Myanmar military junta has increased security measures in Mandalay in response to escalating attacks from resistance forces. This move follows a series of bombings and ambushes by anti-regime groups, which have intensified in recent weeks. The junta has deployed additional troops and established more checkpoints throughout the city to prevent further insurgent activities. Mandalay, the country's second-largest city, has become a focal point of resistance efforts against the military regime that seized power in a coup in February 2021. The Irrawaddy, June 27
Presidential office in Nusantara capital city set for July completion: PUPR. Indonesia's Ministry of Public Works and Public Housing (PUPR) announced that the presidential office in the new capital city, Nusantara, is scheduled for completion in July. Basuki Hadimuljono, the Minister of Public Works and Public Housing, confirmed that the construction is progressing on schedule and will be ready to support the government's relocation plan. The project has faced challenges, including environmental concerns and financial hurdles, but the government remains committed to its timely completion. Fito Akhmad Erlangga, Jakarta Globe, June 27
Japan, U.S., South Korea begin new military exercise to counter North Korea. Japan, the United States, and South Korea have commenced a new trilateral military exercise aimed at countering threats from North Korea. The exercise, which involves joint naval drills, is designed to enhance the interoperability and readiness of the three nations' armed forces in response to North Korean missile and nuclear threats. This initiative follows recent missile launches by North Korea, which have heightened regional security concerns. Kyodo News, June 27.
Arms exports from Singapore-based entities to Myanmar junta ‘dropped dramatically’ in past year: UN envoy. United Nations envoy Tom Andrews reported a significant decline in the export of arms from Singapore-based entities to Myanmar's military junta over the past year. Speaking at a press conference, Andrews attributed this drop to increased international pressure and sanctions. He called for more stringent measures and international cooperation to further restrict the junta's access to arms and financial resources. He also urged ASEAN countries to take a more active role in resolving the crisis in Myanmar. Louisa Tang, Channel News Asia, June 26
S. Korea, U.S. wrap up 4th round of talks on defense cost sharing. South Korea and the United States concluded their fourth round of negotiations on Thursday regarding Seoul's financial contribution for stationing American troops in South Korea. Officials reported that the three-day talks in Seoul were productive, with both sides working towards a mutually beneficial agreement. A South Korean foreign ministry official, speaking anonymously, stated that discussions aimed to expand common ground on key issues. Linda Specht, the U.S. lead negotiator, emphasized the goal of a "mutually acceptable" agreement that supports shared security. Kim Seung-yeon, Yonhap News Agency, June 27
Fakhrul: Don’t betray nation by signing anti-state agreements. Bangladesh Nationalist Party (BNP) Secretary General Mirza Fakhrul Islam Alamgir warned the government against signing any agreements that he claims are against the country's interests. Fakhrul made these remarks at a press conference, asserting that such agreements could undermine national sovereignty and betray the people of Bangladesh. He criticized the ruling Awami League for allegedly compromising national interests in its dealings with foreign entities. Fakhrul also urged the public to remain vigilant and oppose any governmental actions that may harm the nation's sovereignty and future. Dhaka Tribune, June 27
Kazakhstan courting international investment to curb methane emissions. Kazakhstan is actively seeking international investment to address methane emissions as part of its broader climate goals. The government has introduced initiatives aimed at attracting foreign capital to fund projects that will reduce methane output, a significant contributor to global warming. These efforts include enhancing regulatory frameworks and offering incentives to investors willing to support methane reduction technologies and practices. The government is optimistic that these investments will help mitigate environmental impacts and position the country as a leader in regional environmental efforts. Ekaterina Venkina, Eurasianet, June 27
Long Form
Critical Infrastructure and Power Games in China-EU Relations. China’s investment in strategic infrastructure has greatly contributed to the deterioration of China-EU relations, fostering mutual distrust and prompting Europe to adopt a defensive stance. Since the 2013 summit, hopes for cooperation have diminished, with China's actions under Xi Jinping intensifying concerns. Key areas of tension include China's influence on global trade, energy infrastructure, and technology through companies like COSCO, State Grid Corporation, and Huawei. Europe's response involves defensive measures and prioritizing economic security. Mathieu Duchâtel, The Diplomat, June 27
Thailand is the Myanmar Military’s Gateway to the Global Financial System, Report Says. A UN investigation reveals that Thailand has become the primary banking hub for Myanmar’s military, enabling its procurement of arms and military equipment. This follows crackdowns by Singapore on financial transactions linked to Myanmar's junta. The report shows how Thai banks have processed significant military-related transactions, undermining Western sanctions. Sebastian Strangio, The Diplomat, June 27
How Big Is the Philippines’ Online Gambling Problem? The online gambling industry in the Philippines, particularly Philippine Online Gaming Corporations (POGOs), has faced scrutiny for its scale and legality. Under President Duterte, the industry flourished, contributing revenue and employment. The pandemic caused a decline, and President Marcos Jr. banned new POGOs while allowing existing ones to operate. Recent findings indicate a rise in illegal POGOs, suggesting either a resurgence or persistent industry growth. These illegal operations complicate regulatory efforts. Alvin Camba, The Diplomat, June 27
Asia is Going to Need a Lot More Power to Support Spread of AI. The rapid adoption of artificial intelligence (AI) across Asia is driving a large increase in demand for computing power, which is now considered the core productivity driver of the digital economy. As countries like China and India lead in AI innovations, the region faces challenges in scaling infrastructure to meet the computational needs of advanced AI applications. Efforts to address this include substantial investments in data centers and the development of AI governance frameworks. The widespread implementation of AI in various sectors, such as healthcare, manufacturing, and finance, underscores the critical need for enhanced computing power to sustain growth. Mayank Maheshwari, Nikkei Asia, June 27
Nippon Steel Deal Shows Japan Inc. Has to Rethink Overseas M&A. The proposed acquisition of U.S. Steel by Japan's Nippon Steel for $14.9 billion shows the challenges and considerations Japan Inc. faces in overseas mergers and acquisitions. The deal, criticized by U.S. lawmakers and unions for national security and economic reasons, shows the need for Japanese companies to be more thorough in evaluating political implications and stakeholder reactions. Despite opposition, the acquisition is seen as essential for Nippon Steel to expand its global footprint and benefit from U.S. infrastructure projects. Failure of this deal could have wider implications for Japanese investments in strategic sectors abroad. Nobuko Kobayashi and Kyle Lawless, Nikkei Asia, June 27
Japan and China’s Economies are Adapting, Not Decoupling. Japan is restructuring its economic relationship with China, driven by rising labor costs and geopolitical concerns rather than a complete decoupling. Despite changes in business strategies, mutual economic interdependence remains strong. Japanese initiatives aim to reduce dependency, especially in critical industries, while maintaining regional economic integration through agreements like CPTPP and RCEP. Japanese companies are adopting strategies like "China Plus One" and "China for China" to adapt to changing dynamics. Rumi Aoyama, East Asia Forum, June 27
A Common ASEAN Visa May Be Too Ambitious to Realise. Thai Prime Minister Srettha Thavisin's proposal for a Schengen-like visa for ASEAN states aims to boost tourism and economic growth. However, challenges include concerns over visa overstays, illegal work, national security, and the need for shared entry rules and data sharing. ASEAN's historical difficulty in implementing major programs complicates the initiative, demanding substantial political and administrative commitment from member states. William J Jones, East Asia Forum, June 27
Kim-Putin Deal May Kick New and Dangerous Superpower Competition. North Korean leader Kim Jong-un pledged "full and unconditional support" to Russia during his summit with President Vladimir Putin at the Vostochny Cosmodrome. This meeting displays their mutual interests amid escalating tensions with the U.S. Analysts warn that North Korea's potential supply of artillery to Russia for the Ukraine war could heighten superpower rivalry. The summit included discussions on economic cooperation, military capabilities, and space technology, raising concerns about future military and strategic collaborations. Abishur Prakash, South China Morning Post, June 27
Vietnam’s Rice Land Restrictions: Time for a Rethink? Vietnam's restrictions on converting rice land to other uses are reducing agricultural productivity and farm incomes. Originally intended to ensure national rice self-sufficiency, these restrictions now appear outdated. Relaxing these controls could improve economic outcomes for farmers and help them adapt to current agricultural needs. The policy shift could enhance land use efficiency and support the broader structural transformation of Vietnam's economy. Peter Warr and Huy Quynh Nguyen, Fulcrum, June 27
Structural Problems of Thailand’s Export Sector: Myths and Realities. Thailand’s export sector faces challenges, but these are often misinterpreted. While export growth rates are low, this doesn't necessarily indicate structural issues. Comparisons with regional peers show that Thailand's performance is relatively stable. The true challenge lies in adopting emerging technologies to ensure long-term growth and competitiveness. The government should facilitate access to necessary infrastructure and financing without creating policy uncertainties by picking technology winners. Archanun Kohpaiboon, Fulcrum, June 27
Nuclear for Nuclear? Understanding Divergent South Korean and American Perceptions on Deterring North Korea. Differences exist between South Korea and the U.S. regarding how best to deter North Korea's nuclear threat. South Korea favors a clear commitment to nuclear retaliation, while the U.S. prefers strategic ambiguity to maintain flexibility and credibility. Both nations aim to prevent North Korean aggression but diverge on the methods of deterrence. This paper examines these differences to enhance mutual understanding and strengthen alliance strategies. Sangkyu Lee, Suon Choi, Adam Mount, and Toby Dalton, Carnegie Endowment for International Peace, June 27