Asia Daily: June 9, 2025
China
New disputes emerge ahead of US-China trade talks in London. Tensions between the U.S. and China have escalated ahead of scheduled trade talks in London, as both sides clash over AI chips, rare earth exports, and Chinese student visas. Despite a recent 90-day truce on tariffs, Washington issued new export control guidelines while Beijing enforced licensing for rare earth shipments. The talks follow a Trump-Xi call aimed at rescuing strained relations. Ken Moritsugu, Associated Press, June 8
China implements trial visa-free policy for ordinary passport holders from Saudi Arabia, Oman, Kuwait, Bahrain. China launched a one-year trial visa-free policy for ordinary passport holders from Saudi Arabia, Oman, Kuwait, and Bahrain beginning June 9. Visitors from these countries may enter without a visa for business, tourism, family visits, exchanges, or transit stays of up to 30 days. With existing reciprocal deals with the UAE and Qatar, China now offers visa-free access to all GCC member states. Global Times, June 9
Japan
Japan's top negotiator eyes U.S. trip this week for 6th tariff talks. Japan’s economic policy chief Ryosei Akazawa is preparing for a sixth round of trade talks in the U.S. to push for tariff concessions ahead of the G7 summit. Tokyo is urging the Trump administration to eliminate tariffs that have strained its export-reliant economy. Akazawa will meet Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick to continue discussions on duties, non-tariff barriers, and bilateral economic security cooperation. Kyodo News, June 9
Ishiba vows to set up council for regional revitalization. Prime Minister Shigeru Ishiba announced plans to establish a new council dedicated to promoting regional revitalization led by the private sector. The initiative, part of his “Regional Revitalization 2.0” program, will be directly supervised by his office and may involve legal reforms. Ishiba made the announcement during a visit to Maebashi, where he also toured facilities developed through government relocation incentives. The Japan Times, June 7
South Korea
South Korea President Lee's election law violation hearing postponed indefinitely, court says. A Seoul court indefinitely postponed President Lee Jae-myung’s trial on charges of making false statements during his 2022 presidential campaign. The Supreme Court had earlier upheld a violation and returned the case to the appeals court. Citing Article 84 of the Constitution, which shields sitting presidents from prosecution, the court delayed the June 18 hearing. Joyce Lee, Reuters, June 9
Police issue 2nd summons to ex-President Yoon to appear for questioning in martial law probe. South Korean police issued a second summons for former President Yoon Suk Yeol to appear for questioning on June 13 regarding charges linked to his failed December martial law attempt. Yoon is accused of ordering the Presidential Security Service to obstruct his arrest and delete records from secure military phones. Investigators are also reviewing server logs and surveillance footage tied to the incident. Lee Haye-ah, Yonhap News Agency, June 9
North Korea
Access to major N. Korean websites temporarily disrupted Saturday morning. Several prominent North Korean websites, including those of the Korean Central News Agency, Rodong Sinmun, the foreign ministry, and Air Koryo, became temporarily inaccessible Saturday morning for unexplained reasons. Access was restored by 3:50 p.m. after hours of instability. Authorities have not confirmed the cause, though past outages have included suspected cyberattacks such as a 2022 distributed denial-of-service incident. Kim Soo-yeon, Yonhap News Agency, June 7
Thailand
Thailand and Cambodia say they will return to agreed border positions after fatal clash. Thailand and Cambodia agreed to withdraw troops to previously established positions following a May 28 clash that killed a Cambodian soldier. The decision aims to ease tensions along their undemarcated border. Thailand reduced hours at 10 crossings, citing security risks. Cambodia reiterated its intent to seek International Court of Justice arbitration, while Thailand emphasized bilateral resolution. Chayut Setboonsarng and Chantha Lach, Reuters, June 8
Thaksin’s prison skip allegation affects government, poll finds. A new NIDA poll found that nearly 59% of Thais believe former Prime Minister Thaksin Shinawatra’s alleged evasion of prison time could weaken the government’s ability to complete its term. The Supreme Court has launched an inquiry into the legitimacy of his sentence fulfillment, with a hearing scheduled for June 13. Public trust in doctors also declined, with 38.35% reporting reduced confidence. The Nation, June 8
Vietnam
PM’s visit to France hoped to deepen bilateral friendship, cooperation in new phase. Prime Minister Phạm Minh Chính arrived in France on June 7 for his first official visit since Vietnam and France upgraded their ties to a Comprehensive Strategic Partnership. During the trip, he will attend the UN Ocean Conference and hold bilateral engagements. Vietnam News, June 7
Laos
Laos shakes up Cabinet in sweeping reform, names new central bank chief. Laos has implemented a major Cabinet reshuffle, replacing nine ministers and appointing Bounkham Vorachit as governor of the Bank of the Lao PDR. The reform, approved by the National Assembly’s Standing Committee, consolidates ministries and dissolves the Ministry of Home Affairs. Other key changes include a new education minister, the merger of the agriculture and environment portfolios, and structural shifts in finance, health, energy, and labor. Phontham Visapra, The Laotian Times, June 9
Cambodia
Cambodian Defence Ministry reaffirms no troop withdrawal from sovereign territory. Cambodia’s Ministry of National Defence declared that no troops have been withdrawn from any positions under Cambodian sovereignty. The ministry affirmed that all military deployments and adjustments are conducted solely within national borders to safeguard territorial integrity. It reiterated support for peaceful negotiations, especially via the Joint Boundary Commission with Thailand, while maintaining readiness to defend against encroachments. Khmer Times, June 9
Philippines
Chinese ship runs aground off Philippines-occupied island in disputed South China Sea. A Chinese fishing vessel ran aground in stormy weather near Thitu Island, which is occupied by the Philippines, prompting Filipino forces to go on alert. The ship was later pulled free by other Chinese vessels. Philippine officials said the ship resembled suspected militia vessels often used in maritime confrontations. Jim Gomez and Joeal Calupitan, Associated Press, June 8
Majority of Filipinos believe VP Sara should face impeachment trial — OCTA survey. Seventy-eight percent of Filipinos believe Vice President Sara Duterte should participate in an impeachment trial to address allegations against her, according to an OCTA Research survey conducted in April. Public awareness of the case was high at 91%, with the strongest recognition in Mindanao. The survey covered 1,200 adults nationwide and had a ±3% margin of error. Franco Jose C. Baroña, The Manila Times, June 9
Bangladesh
Bangladesh to hold election in first half of April 2026, interim PM says. Bangladesh’s interim Prime Minister Muhammad Yunus announced that national elections will take place in early April 2026, ending a transitional period that began after protests ousted former leader Sheikh Hasina in 2024. The Awami League remains banned from participation, while opposition leader Khaleda Zia is cleared to run. Recent unrest over dismissals and wage policies has added pressure on the caretaker government. Ruma Paul and Sakshi Dayal, Reuters, June 6
Taiwan
Taiwan coast guard, military drill to better face China's 'grey zone' threat. Taiwan’s coast guard held joint drills with the military in Kaohsiung to improve readiness against China's increasing “grey zone” tactics, including cable cutting and sand dredging. The exercise simulated a ferry hijacking and involved air support from rescue and medevac helicopters. President Lai Ching-te emphasized interagency coordination to protect national security. Ben Blanchard, Reuters, June 8
Kazakhstan
Kazakhstan president replaces ministers of defence and transport. Kazakh President Kassym-Jomart Tokayev dismissed Defence Minister Ruslan Zhaksylykov and appointed Dauren Kosanov, his deputy and head of the Air Defence Forces, as successor. He also fired Transport Minister Marat Karabayev, previously criticized for infrastructure delays. No replacement for Karabayev was immediately announced. Tamara Vaal and Anton Kolodyazhnyy, Reuters, June 8
Kazakhstan, Iran reaffirm commitment to comprehensive strengthening of bilateral ties. Kazakhstan and Iran committed to further enhancing bilateral relations during Foreign Minister Murat Nurtleu’s visit to Tehran, where he met President Masoud Pezeshkian. The leaders emphasized growing trade, which rose 50% in 2024, and discussed expanding transport links via the Caspian Sea and the North-South Transport Corridor. Arailym Temirgaliyeva, Kazinform, June 8
Northeast Asia
China’s Growing Influence in Latin America. China has emerged as South America’s leading trading partner and a primary investor in the region’s energy, infrastructure, space, and security sectors. Its economic footprint is marked by a surge in trade, surpassing $518 billion in 2024, and major projects funded through the Belt and Road Initiative. Beijing has offered extensive credit lines, signed free trade agreements with several countries, and acquired strategic assets, including ports and power grids. Its military presence includes arms sales and training programs, particularly with Venezuela, while Chinese state banks have lent over $120 billion to Latin American governments, often in oil-backed deals. Beijing’s efforts extend into cultural diplomacy and political engagement, as seen in summits and strategic partnerships with multiple nations. The change in U.S. policy under President Trump has fueled concern that Washington’s approach is pushing regional governments closer to China. Meanwhile, China’s increasing control over critical infrastructure and focus on digital and space cooperation raise national security and sovereignty concerns. Environmental degradation, labor issues, and rising economic dependency add to regional apprehensions about Beijing’s role. Despite these concerns, many Latin American nations continue to embrace China as a vital partner for development, particularly in areas where U.S. support has receded. Diana Roy, Council on Foreign Relations, June 6
Is Lee Jae-myung South Korea’s latest liberal firebrand or a pragmatic centrist? Lee Jae-myung secured the South Korean presidency with a 49.3 percent majority, marking a dramatic political resurgence after his narrow 2022 loss. Known for his progressive roots, Lee has repositioned himself as a centrist to capitalize on voter demands for stability, aligning with a Democratic Party near-supermajority in parliament. Domestically, he plans to pursue industrial diversification and economic growth, but foreign and security policy will test his centrist credentials. Although historically favoring engagement with North Korea and critiquing U.S. military presence, Lee has recently emphasized deterrence and reaffirmed the U.S.–South Korea alliance as foundational. His earlier skepticism toward the THAAD missile system and U.S. forces contrasts with his current diplomatic tone. Lee has also tempered his stance on Japan, backing trilateral cooperation with the U.S. and Japan despite past criticisms of Japanese militarism and colonial history. As Lee steps into office, allies in Washington and Tokyo remain cautious, awaiting proof that his campaign’s centrist shift will endure in governance. His leadership represents a potential pivot in South Korean foreign relations, contingent on balancing domestic expectations with international reassurance. Arius Derr, East Asia Forum, June 8
20×10 Factories: Different Locations, Similar Products. North Korea’s 20×10 regional development initiative has resulted in a series of factories across 20 towns, primarily focused on producing basic goods such as foodstuffs, clothing, and household necessities. While externally distinct, these facilities largely manufacture similar items such as packaged snacks, bottled sauces, soap, plastic containers, and everyday clothing, supporting Kim Jong Un’s goal of improving living standards through accessible, essential products. Satellite imagery and state media coverage confirm operational status at multiple sites, with products actively displayed in showrooms and public expos. A 2025 change in the program includes expanding to facilities like hospitals and grain management stations, suggesting a broader interpretation of the initiative's social welfare objectives. Daily necessity factories have also diversified to include furniture production. Despite visible progress, concerns remain about sustainability, particularly regarding the supply chain and material transport, as hinted by recent official reviews. These factories, constructed with military labor, show a blend of propaganda and practical development, providing insight into the regime’s domestic priorities while showing ongoing economic limitations. Martyn Williams, 38 North, June 6
Behind the call: China’s rare earth strategy comes into focus. China’s strategic control of rare earth exports has re-emerged as a potent tool in its geopolitical arsenal, demonstrated by its influence over recent U.S.–China trade dynamics. On June 5, Presidents Xi Jinping and Donald Trump held a critical phone call following escalating tensions and rare earth supply disruptions that threatened to cripple U.S. and European automotive production. Amid shortages of Chinese rare earth magnets, some U.S. automakers began relocating production to China to bypass export barriers. This mirrors a pattern from 2010, when China halted rare earth shipments to Japan over a diplomatic dispute. Despite Japan’s efforts to diversify, it still relies on China for 58% of its rare earth imports. China, commanding 90% of global high-performance rare earth magnet exports, has capitalized on its dominance while exercising caution to avoid global backlash. U.S. dependence is exacerbated by its lack of educational infrastructure in rare earth sciences and limited domestic processing capabilities. China’s strategy appears focused on deterrence rather than escalation, reinforcing supply chain dependencies without full economic decoupling. The recent Geneva negotiations highlighted deep mutual grievances, but also an implicit acknowledgment that neither side can afford a prolonged rupture in critical supply lines. Han Yong Hong, ThinkChina, June 6
Is Japan’s military revival a step forward or a step too far? Japan's evolving defense posture marks a decisive break from decades of postwar pacifism, as it accelerates military modernization and integrates more deeply with Western security frameworks. With an unprecedented ¥8.7 trillion defense budget in 2025, Tokyo has expanded its regional footprint through logistics agreements with the Philippines, participation in NATO-linked arms programs like the Global Combat Air Programme, and constitutional reforms to reinterpret Article 9. Formerly confined to domestic operations, the Self-Defense Forces are now training abroad, developing advanced weaponry, and actively marketing arms, including railguns and stealth technologies. While domestic opposition has been muted, concerns linger among Japan’s neighbors, many of whom recall its militarist past. Yet regional perceptions have changed; recent surveys show increased trust in Japan across Southeast Asia and Taiwan, with many viewing Tokyo as a stabilizing middle power amid tensions with China and the U.S. Still, Japan’s challenge lies in sustaining reassurance while scaling military ambition, ensuring its resurgence is seen as a stabilizing force rather than a destabilizing echo of history. Imran Khalid, ThinkChina, June 6
Southeast Asia
Pheu Thai Party’s Identity Crisis: A Brand in Peril? The Pheu Thai Party (PT), once synonymous with redistribution, reform, democracy, and Shinawatra charisma, is facing an existential crisis under Prime Minister Paetongtarn Shinawatra’s leadership. While PT built its brand on landmark policies and electoral dominance, its alliance with the pro-coup conservative bloc has diluted its identity. Flagship reforms like a new constitution and military conscription abolition have stalled, and welfare initiatives such as the digital wallet scheme were shelved amid budget constraints. Human rights setbacks, including continued lèse-majesté prosecutions and controversial deportations, further erode PT’s democratic image. Economic challenges, with household debt over 104% of GDP and growth downgraded to 2%, undermine its redistributive claims. Meanwhile, support for the Shinawatras, once a potent political asset, appears increasingly regional and insufficient to sustain national appeal. Small-scale relief efforts continue, but they lack the transformative impact of past PT policies. Without delivering substantive reform or welfare, and as core supporters age or disengage, PT risks becoming a brand defined by nostalgia rather than relevance. Its survival hinges on regaining credibility with reformist and working-class voters or risking political obsolescence by the 2027 election. Treethep Srisa-nga FULCRUM, June 6