Asia Daily: June 6, 2024
News
Two British judges resign from Hong Kong court. One cites the city’s ‘political situation’. Judges Jonathan Sumption and Lawrence Collins have resigned from Hong Kong's top court, deepening concerns over the city's rule of law under Beijing's national security law. Collins cited the "political situation" as his reason, while Sumption will make a statement next week. Chief Justice Andrew Cheung and Hong Kong's leader John Lee expressed regret, maintaining the judiciary's independence. This follows earlier resignations linked to the 2020 security law, which has targeted pro-democracy activists. Kanis Leung, AP News, June 6
Lower house passes political funds reform bill amid backlash. Japan's House of Representatives passed a political funds reform bill proposed by the ruling Liberal Democratic Party (LDP) despite opposition criticism for insufficient transparency measures. The bill, aimed at addressing a political funds scandal, faces skepticism over its effectiveness. Prime Minister Kishida Fumio conceded to demands from coalition partner Komeito and opposition Japan Innovation Party to lower the threshold for reporting donations and to mandate disclosure of policy activity funds. Satoshi Iizuka, Kyodo News, June 6
NA elect new NA Vice Chair, approve new Deputy PM, Minister of Public Security. The 15th National Assembly of Việt Nam elected Nguyễn Thị Thanh as Vice Chairwoman and approved the appointment of Lê Thành Long as Deputy Prime Minister and Lương Tam Quang as Minister of Public Security for the 2021-2026 term. Thanh received 465 out of 467 votes, while the PM’s proposals for Long and Quang received 468 out of 469 votes. This brings the government leadership to Prime Minister Phạm Minh Chính and four deputy prime ministers. Vietnam News, June 6.
MFP defies court order to keep quiet. The Move Forward Party (MFP) announced it would proceed with a planned press conference despite a Constitutional Court warning against public statements that could influence court proceedings. MFP leader Chaithawat Tulathon insisted the press conference would not affect the court's deliberation on a case threatening the party's dissolution. The court, which received the MFP's defense statement, will hear the case next Wednesday. The Election Commission has petitioned to dissolve the party over its stance on the lese-majeste law. Aekarach Sattaburuth, Bangkok Post, June 6
Putin says no talks with Japan unless it alters stance on Ukraine. Russian President Vladimir Putin stated that Russia will not resume peace treaty negotiations with Japan unless Tokyo changes its support for Ukraine. Putin, addressing international news agencies in St. Petersburg, blamed Japan for deteriorating bilateral relations due to its alignment with Western sanctions against Russia. He reiterated Russia's claim to disputed islands near Hokkaido and warned of potential nuclear weapon use if Russia's sovereignty is threatened. Kyodo News, June 6
South Korea activists defy warning to fly balloons into North. Activist group Fighters For Free North Korea launched balloons carrying 200,000 anti-Kim Jong Un leaflets, 5,000 USB sticks with K-pop content, and 2,000 $1 notes into North Korea from Pocheon. This action follows North Korea sending 3,500 balloons with trash into South Korea, which led Seoul to suspend a 2018 military pact. South Korean President Yoon Suk Yeol reaffirmed his commitment to peace through strength. Hyonhee Shin, Reuters, June 6China reaches deal on Central Asian railway project linking it with Kyrgyzstan, Uzbekistan
Myanmar junta imposes more restrictions on imports. The Myanmar junta announced new import restrictions aimed at conserving hard currency, effective next month. Importers must now secure an import license before receiving goods, reversing the common practice of holding goods in customs until licenses are granted. This move is expected to disrupt businesses reliant on timely imports and increase bureaucratic delays. The Ministry of Trade and Commerce outlined penalties for non-compliance, adding to the junta's efforts to control the economy amid ongoing sanctions and financial challenges. Aung Kham, Myanmar Now, June 6
Việt Nam reiterated calls for ending US embargoes against Cuba. Việt Nam has once again urged the United States to lift its decades-long embargoes against Cuba. Spokesperson for the foreign ministry Phạm Thu Hằng highlighted Việt Nam's consistent support for the UN General Assembly's resolutions and called for the U.S. to remove Cuba from its list of state sponsors of terrorism. Hằng emphasized the need for full normalization of U.S-Cuba relations to contribute to global peace, stability, and development. Vietnam News, June 6
China reaches deal on Central Asian railway project linking it with Kyrgyzstan, Uzbekistan. China has signed an agreement with Kyrgyzstan and Uzbekistan for the China-Kyrgyzstan-Uzbekistan Railway, a key Belt and Road Initiative project. President Xi Jinping emphasized the project’s strategic importance for regional connectivity and trade, stating it would benefit the three countries and promote regional development. The railway will run from Kashgar in Xinjiang to Andijon in Uzbekistan, reducing the freight journey between China and Europe by 559 miles. Liu Zhen, South China Morning Post, June 6
Human Capital, Green Sustainability: Two Priorities for Laos’ Future Economic Model. Laos faces challenges transitioning from commodity-driven growth to a more inclusive model, as detailed in the OECD's Multi-dimensional Country Review. The report emphasizes the need for human capital development and green sustainability, including debt reduction, tax system reforms, and investment in education and healthcare. It highlights Laos' past growth driven by commodity exports but notes uneven economic benefits and environmental issues. The recommendations aim to create a more resilient and sustainable future for Laos. Chono Lapuekou, The Laotian Times, June 6
Cambodia accelerates R&D system development with S Korean collaboration. Cambodia's Ministry of Industry, Science, Technology, and Innovation is enhancing its R&D management system with the Science and Technology Policy Institute (STEPI) of South Korea. The partnership, initiated in 2018, was reinforced during a workshop at the ASEAN Ministerial Meeting on Science, Technology, and Innovation in Siem Reap. The collaboration aims to establish an R&D infrastructure based on the Korean National Science and Technology Information System (NTIS) model. Niem Chheng, The Phnom Penh Post, June 6
Myanmar junta forces massacre scores of civilians outside Sittwe. In Byine Phyu village near Sittwe, Myanmar junta soldiers killed over 70 civilians in retaliation against the Arakan Army (AA). Survivors recounted how soldiers lured villagers with promises of safety before torturing and killing men. This incident signifies a severe escalation in violence and human rights abuses in Rakhine State. The massacre took place near key junta military bases, revealing the conflict's ongoing brutality in the region. Raung Ni and Su Chay, Myanmar Now, June 6
Rahul Gandhi seeks probe into stock market moves during India elections. Congress leader Rahul Gandhi has called for a Joint Parliamentary Committee (JPC) probe into new allegations that associates of the Adani family used opaque Mauritius-based funds to invest hundreds of millions of dollars in Adani Group stocks. Gandhi criticized Prime Minister Narendra Modi's silence on the issue, emphasizing that India's reputation is at risk, especially with the upcoming G20 summit. The allegations come from the Organized Crime and Corruption Reporting Project (OCCRP), which claims the investments were hidden to inflate stock prices. The Adani Group has denied these charges. Al Jazeera, June 6
Indonesia accepts South Korea warship donation, despite cost concerns. Indonesia's parliament approved a proposal to accept a 36-year-old corvette donated by South Korea, despite concerns over the $85 million needed for maintenance. Defense Minister Prabowo Subianto, aiming to upgrade military hardware, faces resistance over procuring used equipment. Deputy Defense Minister Herindra emphasized the vessel's immediate availability compared to the longer timeline for new ships. The decision follows a resolved funding dispute over a joint KF-21 fighter jet project with South Korea. Reuters, June 6
Long Form
Low Voter Turnout, Apathy Mar Bangladesh’s Local Elections. Bangladesh's recent local elections experienced significant issues with low voter turnout and widespread voter apathy, raising concerns about the legitimacy of the elected officials and the overall democratic process. Factors contributing to the low engagement include disillusionment with political candidates and dissatisfaction with the political environment. Observers noted irregularities and a lack of genuine competition as additional causes for the public's lack of interest in the elections. Saqlain Rizve, The Diplomat, June 6
The New Reality of Dealing With a China in Decline. As China experiences economic and political decline, global strategies toward the nation must adapt. The slowdown in China's growth, significant debt, and an aging population are contributing to its reduced global influence. This shift is reshaping the international landscape, prompting countries like the United States to reconsider their economic ties with China, emphasizing security concerns over trade benefits. The declining economic integration between China and the U.S. is evident in reduced Chinese exports and foreign direct investment in the U.S. Collins Chong Yew Keat, The Diplomat, June 6
What South Korea’s Horizon Europe Entry Says About Its Science and Tech Ambitions. South Korea's recent entry into Horizon Europe underscores its ambitions to strengthen its position in global science and technology sectors. This move is part of a broader strategy to enhance international collaboration, particularly in high-tech fields such as semiconductors, AI, and green technologies. The partnership is expected to facilitate South Korea’s integration into Europe’s extensive research network, thereby boosting innovation and competitive edge in these critical industries. Hyejin Kim, The Diplomat, June 6
China’s Big Fund 3.0: Xi’s Boldest Gamble Yet for Chip Supremacy. China has launched the third iteration of its Big Fund, a state-backed initiative aimed at achieving self-sufficiency and global leadership in semiconductor technology. This $40 billion fund represents President Xi Jinping's boldest attempt to counteract U.S. sanctions and reduce dependence on foreign chip technology. The initiative focuses on enhancing domestic production capabilities and fostering innovation within China’s semiconductor industry, aiming to position China as a dominant player in the global chip market.
Lizzi C. Lee, The Diplomat, June 6
A New Generation of Chinese Democracy Seekers Gathers in Tokyo. A new wave of Chinese democracy activists has emerged, congregating in Tokyo to advocate for political reform in China. These activists, primarily young exiles, seek to challenge the Chinese Communist Party's authoritarian rule and promote democratic ideals. The movement is characterized by its use of modern technology and social media to organize and mobilize support, highlighting a shift from traditional forms of activism. This gathering in Tokyo symbolizes a significant step in the global pro-democracy movement, as these activists aim to build international solidarity and support for their cause. Katsuji Nakazawa, Nikkei Asia, June 5
Discomfort with the Dollar Hasn’t Gotten Much Beyond Grumbling. Despite global frustrations with the dominance of the U.S. dollar, efforts to move away from it have seen limited success. Many countries, including those in Asia, continue to rely heavily on the dollar for international trade and reserves. The lack of a viable alternative and the established trust in the dollar's stability and liquidity contribute to its sustained dominance. Efforts to diversify have included increasing the use of other currencies like the euro and the yuan, but these moves have not significantly diminished the dollar's role. Henny Sender, Nikkei Asia, June 5
Indonesia’s Pension System Leaves Younger Generations at Risk. Indonesia's current pension system is inadequate for younger generations, leaving them vulnerable in their retirement years. The system primarily benefits civil servants and formal sector workers, while a significant portion of the workforce in the informal sector remains uncovered. This disparity creates a looming financial insecurity for many Indonesians. Reform efforts are needed to expand coverage and ensure sustainable retirement incomes for all citizens. Darmawan Prasetya, East Asia Forum, June 6
Japan Needs Bilingual Disclosures to Bridge Detrimental Language Gaps. Japan's lack of bilingual financial disclosures creates significant barriers for foreign investors and stakeholders, limiting their ability to fully understand corporate governance and financial practices. This language gap hinders transparency and can deter potential investments. Implementing bilingual disclosures would improve accessibility and foster greater international trust and engagement in Japan’s markets. The move towards bilingualism in financial reporting is seen as crucial for Japan to maintain its competitive edge in the global economy. Takashi Kozu, East Asia Forum, June 6