Asia Daily: June 28, 2024
News
Trump will encourage Japan, South Korea ties, allies tell foreign officials. Donald Trump's allies assure officials in Japan and South Korea that the Republican candidate will support deepening three-way ties to counter China and North Korea if re-elected. Policy advisers have conveyed that Trump will back efforts to enhance military, economic, and diplomatic cooperation. This outreach aims to maintain strong alliances in Asia despite Trump’s often contentious approach to traditional alliances. Trevor Hunnicutt, John Geddie, Hyonhee Shin, and Michael Martina, Reuters, June 28
China’s Xi Jinping calls on nations to unite against ‘iron curtains of confrontation’. President Xi Jinping pledged major reforms and peaceful development while urging global cooperation against confrontation. Celebrating the 70th anniversary of the "Five Principles of Peaceful Coexistence," Xi emphasized mutual respect and non-interference. Despite China's assertiveness and ties with Russia, Xi highlighted China's role as a peace broker and global leader. He condemned economic decoupling and called for unity in the face of rising global tensions. Shi Jiangtao, South China Morning Post, June 28
Japan and Philippines trying to finish defense pact for signing in Manila as alarm grows over China. Top defense and foreign affairs officials from Japan and the Philippines will meet in Manila next month to enhance strategic ties amid rising concerns over China’s actions in the South China Sea. Discussions will focus on finalizing a key defense pact, allowing joint military exercises and strengthened cooperation. This follows agreements made last year during Japanese Prime Minister Kishida Fumio's visit to Manila, which included providing patrol vessels, defense equipment, and coastal surveillance radar to the Philippines. Jim Gomez, AP News, June 28
Mongolia’s ruling party won only a slim majority in parliamentary election, early results show. The ruling Mongolian People’s Party retained a slim majority in the country's parliament with the opposition Democratic Party making major gains, according to preliminary results. The party won 68 to 70 seats in the 126-seat parliament, a reduction from 62 of 76 seats in 2020. Turnout reached about 70%. This election marked the first time the expanded parliament was formed, reflecting voter discontent and a desire for change amid ongoing issues like corruption, unemployment, and inflation. Ken Moritsugu, AP News, June 28
N. Korea says planned party plenary meeting will become 'politically important' event. North Korea announced that its upcoming Workers' Party plenary meeting will be a significant political event, possibly discussing measures to implement a new strategic partnership treaty with Russia. This meeting, set for late June, will review policy performances for the first half of the year. The treaty, signed by Kim Jong-un and Vladimir Putin, includes military assistance provisions, marking a renewal of Cold War-era alliances. The Rodong Sinmun emphasized the meeting's importance in advancing socialist development. Kim Soo-yeon, Yonhap News Agency, June 28
Japan to appoint first female prosecutor general in July. Japan will appoint its first female prosecutor general, Yoshiko Morishita, in July. The decision marks a significant milestone in the country's legal history, reflecting efforts to promote gender equality in high-ranking positions. Morishita, currently serving as a high-ranking official at the Supreme Public Prosecutors Office, has been recognized for her expertise and contributions to the legal field. Her appointment is expected to bring a fresh perspective to the prosecution service and inspire more women to pursue careers in law. This move aligns with broader governmental initiatives to enhance female representation in leadership roles across various sectors. Kyodo News, June 28
China and Peru agree to forge stronger economic and tech ties – starting with Chancay port. Chinese President Xi Jinping and Peruvian President Dina Boluarte signed a joint action plan in Beijing to enhance cooperation in trade, the digital economy, and technological innovation. They concluded negotiations on upgrading their free-trade agreement and emphasized the strategic importance of the Chancay port, a major trade hub linking China and Latin America. Boluarte's state visit included discussions on creating a special economic zone at the port with tax benefits for investors. Kawala Xie, South China Morning Post, June 28
Yoon vows to overcome N.K. threats through cooperation with U.S., Japan. President Yoon Suk Yeol pledged to counter North Korea’s provocations and global challenges by strengthening trilateral cooperation with the U.S. and Japan. At the 10th annual peace forum, Yoon highlighted the restoration and expansion of the South Korea-U.S. alliance and improved relations with Japan, leading to the Camp David summit. Yoon emphasized enhancing security and economic cooperation, addressing military ties between North Korea and Russia, and promoting South Korea’s role in regional and global peace. Lee Haye-ah, Yonhap News Agency, June 28
defamation lawsuit against parliamentarian Rangsiman Rome. Thaksin accuses Rome of making false statements during a parliamentary debate, damaging his reputation. The allegations pertain to Thaksin's supposed involvement in organized crime, which Rome discussed in relation to police reforms. Thaksin's legal team argues that these claims are baseless and intended to malign him. This legal action is but the latest development in the ongoing political and legal battles involving Thaksin, who has been living in self-imposed exile since 2008. Wassayos Ngamkham, Bangkok Post, June 28
National Assembly adopts revised Capital Law. Vietnam's National Assembly has adopted a revised Capital Law aimed at addressing urban challenges and promoting sustainable development in Hanoi. The revised law includes measures to enhance the city's governance, infrastructure, and environmental protection. It also focuses on improving the quality of life for residents by addressing issues such as traffic congestion, pollution, and housing shortages. The law seeks to attract more investment and boost the city's economic growth while ensuring sustainable development practices. Vietnam News, June 28
Philippine troops kill 10 communist rebels in a clash, in the latest blow to decades-long insurgency. Philippine troops killed at least 10 suspected communist guerrillas, including three commanders, in Nueva Ecija. The rebels were withdrawing from a previous clash when army troops intercepted them, sparking a firefight. Thirteen rifles and a pistol were recovered, and troops continue to pursue other retreating guerrillas. Brig. Gen. Norwin Joseph Pasamonte expressed sadness over the deaths but emphasized the government's appeals for rebels to surrender. Peace talks with communist rebels remain stalled under President Ferdinand Marcos Jr. Author, AP News, June 28
Yen hits fresh 37-year low at 161 vs. dollar amid intervention risk. The Japanese yen fell to a new 37-year low against the U.S. dollar, dropping below the 161 line on Thursday. The decline is attributed to widening interest rate differentials between Japan and the United States, as the Federal Reserve maintains its aggressive rate hike stance while the Bank of Japan continues its ultra-loose monetary policy. The yen's depreciation raises concerns about increased import costs and potential economic impacts. Financial analysts warn of further weakening if the policy divergence persists, affecting Japan's economic stability and consumer prices. Kyodo News, June 28
Oyun-Erdene Luvsannamsarai: Parliament with 126 members is to be formed for the first time in Mongolia. Prime Minister Oyun-Erdene Luvsannamsarai cast his vote in the State Great Khural election, highlighting the formation of a 126-member parliament. This marks the first time in Mongolia’s history that such a diverse group, including representatives from various sectors, is being elected. High voter turnout was noted, with overseas citizens and those with disabilities also participating. The Prime Minister emphasized the importance of democratic participation in this historic election. Nyambayar.B, Montsame, June 28
Uzbekistan and Turkey to develop military and technical cooperation. On June 26, President Shavkat Mirziyoyev met with Turkish National Defense Minister Yashar Guler in Tashkent. They discussed strengthening their comprehensive strategic partnership, focusing on military and technical cooperation. Key areas include interdepartmental relations, joint events, and military specialist training. The discussions also covered enhancing security cooperation to combat terrorism, extremism, and radicalism, and ensuring regional peace and stability, particularly regarding Afghanistan. The Times of Central Asia, June 28
Manet: Chinese giant BYD set to open automobile factory in Kingdom. Chinese electric vehicle manufacturer BYD is planning to open an automobile factory in Cambodia, according to Prime Minister Hun Manet. The factory will be established in the Royal Group Phnom Penh Special Economic Zone, marking a significant investment in Cambodia's automotive industry. Prime Minister Manet emphasized that the collaboration with BYD aligns with Cambodia’s strategy to attract foreign direct investment and promote sustainable industrial growth. Ry Sochan, The Phnom Penh Post, June 28
BBM: PH must do more than protest. President Ferdinand Marcos Jr. emphasized that the Philippines needs to take stronger actions beyond protests against China's "illegal actions" in the South China Sea. The statement comes after Chinese coast guard personnel armed with knives, sticks, and an axe boarded three Filipino navy boats, thwarting a resupply mission to the BRP Sierra Madre at Ayungin Shoal. Marcos called for a more assertive response to ensure the protection of Philippine sovereignty and the safety of its maritime operations. Catherine S. Valente, The Manila Times, June 28
Singapore an important target for terrorists; recent attacks, arrests in Malaysia a reminder of threat: Shanmugam. Singapore remains a prime target for terrorists, emphasized Law and Home Affairs Minister K Shanmugam, highlighting recent arrests in Malaysia as a stark reminder of the threat. Eight individuals linked to ISIS were arrested, revealing plots against Malaysian officials and royalty. Shanmugam stressed that Singapore must remain vigilant, citing past threats and ongoing dangers fueled by extremist ideologies. Enhanced cooperation and intelligence sharing with Malaysia and other partners are crucial for regional security. Fabian Koh, Channel News Asia, June 28
Turkmenistan strengthens cooperation with Japanese investors. Gurbanguly Berdimuhamedov, chairman of the Khalk Maslakhaty of Turkmenistan, met with representatives from Japan’s Kawasaki Heavy Industries Ltd. to discuss ongoing and future cooperation. They highlighted existing projects such as the gasoline-from-natural-gas plant in Ovadandepe and a urea plant in Mary province. The talks focused on utilizing advanced technologies and adhering to environmental standards in new projects related to natural gas production and processing. The Times of Central Asia, June 28
Former Myanmar President Thein Sein makes rare trip to China. Former President Thein Sein traveled to China for his first foreign trip since Myanmar's military coup three years ago. During his visit, he met with China’s ambassador to discuss Myanmar’s situation and bilateral cooperation. Relations between Myanmar's junta and Beijing have been strained due to the junta's failure to address online scam operations affecting Chinese nationals. Myanmar remains a critical part of China’s Belt and Road Initiative, despite ongoing conflicts since the coup. The Irrawaddy, June 28
Long Form
4 Ways China Gets Around US AI Chip Restrictions. Chinese companies circumvent US AI chip restrictions by stockpiling chips, enhancing local foundry processes, illegally importing through third parties, and using offshore AI services. Before the October 2022 export restrictions, China’s AI firms accumulated significant chip quantities. Domestic efforts are bolstered by a $48 billion investment to advance chip-making capabilities. Despite export bans, private imports persist, and Chinese companies increasingly utilize foreign cloud services. Che-Jen Wang, The Diplomat, June 28
Why Is China Stockpiling Key Resources? China is stockpiling key resources like minerals, oil, and food, possibly as a preparation for conflict, particularly an invasion of Taiwan. The stockpiling aims to mitigate production shortages and supply chain disruptions. Comparisons have been drawn to Nazi Germany's pre-WWII stockpiling. Experts believe this strategy is driven by a combination of self-sufficiency needs and a defensive posture against international containment efforts. Bonnie Girard, The Diplomat, June 28
Myanmar’s Junta Is Also Losing on the Supermarket Shelves. Myanmar's economic situation is worsening, with high rice prices and supply shortages causing long food queues in Yangon. Military efforts to control the rice market have failed, leading to detentions of millers and limited sales. The junta's interventions in gold and foreign exchange markets have also been ineffective, exacerbating the economic crisis. Despite official forecasts suggesting minimal growth, the reality is a crumbling economy. Luke Hunt, The Diplomat, June 28
South Korea delivery giants lock horns in post-pandemic price war. South Korea’s leading delivery companies, Baedal Minjok and Coupang Eats, are engaged in a fierce price war as they adapt to the post-pandemic market. Both companies are offering aggressive discounts and promotions to attract customers and maintain market share. The competition has intensified as consumers' demand for delivery services, which surged during the pandemic, starts to stabilize. This battle for dominance is reshaping the industry and forcing smaller competitors to innovate or risk being edged out. Steven Borowie, Nikkei Asia, June 28
Hun Manet fishing for increased FDI. Cambodia’s Prime Minister Hun Manet is focusing on diversifying foreign direct investment (FDI) to sustain economic growth. While maintaining strong ties with China, Manet is also seeking investments from countries like France, Japan, and South Korea. These efforts aim to improve Cambodia's business climate and achieve high-income status by 2050. Challenges include reliance on low-skilled labor and poor infrastructure, but strategic partnerships and investment in technology and innovation are expected to drive development. Mom Mit and Prom Thary, East Asia Forum, June 28
Plenum priorities that could reshape China’s economic future. The Chinese Communist Party's upcoming third plenary session in July 2024 aims to enact structural reforms. Key priorities include reducing the housing sector's impact on consumption, shifting from indirect to direct taxation, and improving fiscal redistribution. The session seeks to transition China's growth model from investment-heavy to consumption-centered, addressing structural revenue deficits, and reforming local government finances to promote a unified national market. These reforms are essential for achieving China’s 2035 and 2049 modernization goals. Sourabh Gupta, East Asia Forum, June 28
Implications of India’s 2024 Election Outcomes for ASEAN. The 2024 Indian elections will significantly impact ASEAN-India relations. If the BJP retains power, continuity in foreign policy and enhanced economic cooperation with ASEAN are expected. Conversely, a shift in government could bring policy changes, potentially affecting trade agreements and regional security collaborations. Regardless of the outcome, ASEAN will need to navigate its relationship with India carefully, balancing economic interests with strategic considerations. Karthik Nachiappan , Fulcrum, June 28
Strengthening Southeast Asian Studies in China. The resurgence of Southeast Asian Studies in China is driven by the strategic importance of the region under the Belt and Road Initiative (BRI). Despite historical challenges such as inadequate funding and training, recent government efforts have elevated Regional and Country Studies to a primary discipline, increasing state support and international collaboration. This aims to balance academic rigor, strategic national needs, and unique research identities. However, concerns about prioritizing policy-driven research over foundational scholarship remain. Chang-Yau Hoon, Fulcrum, June 28