Asia Daily: March 14, 2024
News
Beijing hits out over Taiwan vice-president-elect Hsiao Bi-khim’s ‘personal’ trip to the US. Beijing criticized the US visit by Taiwan's Vice President-elect Hsiao Bi-khim, viewing it as a political maneuver rather than a personal trip as claimed. This development adds to the existing tensions between China and Taiwan, reflecting the complex dynamics of Taiwan's international engagements and China's reaction to such actions. Lawrence Chung, South China Morning Post, March 13
PPP calls for DP to overhaul its satellite party after resignation of candidates with pro-N.K. stance. The People Power Party has demanded that the Democratic Party reform the nomination process for its satellite party. This comes after two candidates, criticized for their pro-North Korean views, withdrew from election consideration. The PPP's criticism underscores concerns about national security and the integrity of the South Korea-U.S. alliance. The situation highlights the political and ideological divisions within South Korean politics. Kang Jae-eun, Yonhap News Agency, March 13
South Korea mulls "future-oriented" statement with Japan for anniversary. South Korea is considering issuing a joint statement with Japan, focusing on future cooperation as they approach the 60th anniversary of diplomatic normalization. This effort reflects both countries' intentions to transcend past issues and strengthen bilateral relations, emphasizing the resumption of leader visits as a sign of improving ties. The collaboration could cover various areas including security concerns amid regional tensions. Kyodo News, March 13
Kyrgyzstan: President withdraws restrictive media law. Kyrgyzstan's President Sadyr Japarov has withdrawn a draft bill that faced criticism for potentially curtailing freedom of speech. The decision followed discussions with representatives from the media, indicating the government's response to concerns over the legislation's impact on press freedoms. The retraction of the draft bill may relax immediate threats to journalistic freedom in the country. Ayzirek Imanaliyeva, Eurasianet, March 13
Marcos secures $4.2B investment deals in Germany visit. During President Ferdinand Marcos Jr.'s visit to Germany, the Philippines secured investment deals worth $4.2 billion. The agreements, signed at the German-Philippine Business Forum in Berlin, involve collaborations between German firms and Filipino companies. This marks a significant step in strengthening economic relations between the two countries. Catherine S. Valente, The Manila Times, March 13
Tajikistan: Authorities struggling, and failing, to provide power to households. In Tajikistan, authorities have pledged to ensure households receive up to eight hours of electricity daily during Ramadan. Despite this promise, many areas experience frequent outages, with some neighborhoods receiving power for only six hours a day. The capital, Dushanbe, has faced unexpected blackouts since a technical malfunction at the Nurek hydropower plant. Officials attribute these disruptions to repair work and increased electricity demand due to cold weather. Eurasianet, March 13
Election agency 'obliged by law' to seek Move Forward's dissolution. The Thai Election Commission is set to petition for the dissolution of the Move Forward Party, acting on a legal requirement. This action stems from a Constitutional Court interpretation of the party's advocacy for lese majeste law reform as a potential threat to the monarchy. This latest development adds to a history of legal challenges faced by the Move Forward Party. Bangkok Post, March 13
Kazakhstan boosting freight rail links to Russia, China. Kazakhstan is enhancing its railway connections with both China and Russia, establishing itself as a pivotal hub for freight traffic between East Asia, Europe, and Russia. President Kassym-Jomart Tokayev recently launched a logistics center in Xi'an, China, capable of handling a significant volume of cargo. This move is part of a broader strategy to leverage Kazakhstan's geographical position to boost its economy and facilitate international trade. Eurasianet, March 13
Cambodians urged to join product fair, explore new Chinese ties. Cambodian businesses are encouraged to partake in the 4th China International Consumer Products Expo, aimed at promoting Cambodian products and strengthening Sino-Cambodian relations. This initiative is seen as a strategic move to enhance Cambodia's international trade footprint, leveraging China's expansive market. The expo offers Cambodian traders a platform to gain international exposure, driving economic growth and diversifying trade relations. Van Socheata, Phnom Penh Post, March 13
Long Form
Kyrgyzstan’s Shifting Politics: Foreign Agents, Civil Society, and Russian Influence. Kyrgyzstan has recently passed a "foreign representatives" bill, reflecting a shift towards Kremlin-inspired tactics to suppress civil society. This move, mirroring Russia's 2012 "foreign agents" law, signals a concerning trend in the Central Asian nation's political landscape, threatening the space for civil activism and human rights advocacy. Prominent human rights activist Dinara Oshurahunova's decision to shut down her organization, Civic Initiatives, underscores the law's chilling effect on civil society organizations. This development raises critical questions about Kyrgyzstan's political autonomy and the future of democratic practices and civil liberties in the region, amidst increasing Russian influence. Bektour Iskender, The Diplomat, March 14
Understanding the Paradox of Japan’s Economy. Japan's economy presents a striking paradox: despite losing its status as the world’s third-largest economy to Germany, its stock market has been surging, with the Nikkei Index even surpassing its 1989 peak. This scenario raises questions about the health of Japan's economy and the factors driving such contradictory trends. The simultaneous occurrence of these events—Japan's relative economic decline among advanced economies and its booming stock market—highlights the complexities of assessing a country's economic condition purely based on GDP rankings or stock market performance. This paradox shows the need for a nuanced understanding of Japan's economic dynamics, including the underlying strengths and challenges facing its economy. Zhihai XIE, The Diplomat, March 13
China’s Foreign Policy After the ‘Two Sessions’. The conclusion of China's "Two Sessions" in March 2024 highlights a strategic continuity in foreign policy with an emphasis on creating an international environment conducive to its economic development. As domestic and foreign policies become increasingly interlinked, China faces a challenging external environment that has exerted a negative impact on its growth. The "Two Sessions," comprising the National People’s Congress and the Chinese People’s Political Consultative Conference, have traditionally focused on domestic issues. However, recent developments signal a closer alignment of China’s foreign policy objectives with its internal goals, particularly under the increasing influence of the Chinese Communist Party over state governance. This approach is indicative of Beijing's intent to navigate and shape global dynamics to support its economic ambitions, amidst growing complexities in international relations. Nathaniel Sher, The Diplomat, March 14
The Story Behind Chinese Leaders' Unspoken Words. The National People's Congress in China left many unanswered questions, notably concerning the sudden disappearance of former Foreign Minister Qin Gang and the silence on Japan. Qin's absence from public view and the lack of a new foreign minister appointment have sparked speculation and concern. Rumors of an extramarital affair and potential security breaches have circulated, suggesting a complex scandal involving high-profile individuals. Meanwhile, the avoidance of Japan-related questions at a press conference points to the sensitivity of China-Japan relations, especially regarding contentious issues like the ban on Japanese fishery products and the detention of a Japanese executive. Katsuji Nakazawa, Nikkei Asia, March 14
South Korea Has to Do More than 'Value-Up' to Convince Investors. South Korea's attempt to eliminate the "Korea discount" through its Corporate Value-Up Program faces skepticism from global investors, primarily due to the program's vague and voluntary nature. The initiative aims to enhance corporate governance and capital efficiency but overlooks the critical issue of chaebol (family-owned conglomerates) dominance in the market. These conglomerates, such as Samsung, Hyundai, and LG, have long been criticized for prioritizing family power and wealth over minority shareholder interests, contributing to South Korea's stocks trading at lower multiples compared to global peers. Despite various presidents' promises to level the playing field, the chaebol system remains largely unchanged. Recent judicial decisions, like the acquittal of Samsung's Lee Jae-young on stock manipulation charges, reinforce perceptions of leniency towards powerful business figures. Without addressing the chaebol issue, South Korea's efforts to attract investors and reclassify as a developed market may continue to fall short. William Pesek, Nikkei Asia, March 14
Unshackling Workers in China’s Solar Supply Chain. The debate over human rights within China's dominant solar manufacturing industry, especially concerning the Xinjiang Uyghur Autonomous Region's role, underscores a critical conflict between environmental goals and workers' rights. Despite China's denial of forced labor allegations, international scrutiny persists, notably with the U.S. Uyghur Forced Labour Prevention Act aiming to exclude products associated with such abuses from its market. The Act and similar EU proposals impose significant regulatory burdens on companies, urging them to ensure clean supply chains or face divestment risks. Transparency and trust emerge as crucial but challenging pillars of effective due diligence, with audits like Volkswagen’s in Xinjiang facing skepticism over their reliability. The ongoing tension highlights the complex interplay between geopolitics, economic interests, and the push for ethical supply chains in the renewable energy sector. Joseph Negrine, East Asia Forum, March 14
Vietnam’s Land Law Evolution. Vietnam's recent amendments to its Land Law reflect a significant evolution in balancing economic growth and social stability. Historically aimed at poverty alleviation and boosting agricultural productivity, the focus has broadened to address urban development and foreign direct investment. The 2003 and 2013 amendments introduced socio-economic reasoning for land takings and attempted to refine the purposes for land acquisition, respectively. However, gaps in compensation and disputes over land value have led to public grievances. The 2024 amendments mark a departure from centralized pricing, aiming for more market-oriented policies and improved compensation standards. Phuc Hai Tran, East Asia Forum, March 14
PDD's Secretive Founder, His Mentor, and Warren Buffet - And Why Financial Times Was Clueless. Amid scrutiny, Pinduoduo (PDD), led by the elusive Colin Huang, navigates the e-commerce battlefield, drawing strategies from mentor Duan Yongping and Warren Buffet's wisdom. Duan, a titan behind OPPO and VIVO, and an astute investor with significant stakes in Apple, exemplifies success through simplicity and stealth. Huang's approach mirrors these traits, focusing on PDD's value proposition over expansion, and prioritizing consumer satisfaction while maintaining a strategic veil of secrecy. This ethos, cultivated from encounters with Buffet and Duan's teachings, positions PDD distinctively in the tech world, challenging misconceptions of its operations as fraudulent. Instead, PDD's tactics reveal a deep understanding of market dynamics, emphasizing efficiency and consumer-first policies. The narrative underscores the importance of recognizing PDD's strategic discretion as a strength, not a suspect sign. Robert Wu,
, March 14