Asia Daily: March 14, 2025
China
China’s central bank to create ‘more tools’ to shore up economy. The People’s Bank of China (PBOC) announced plans to introduce new monetary tools to boost domestic consumption, support innovation, and stabilize exports amid global economic uncertainty. Governor Pan Gongsheng reaffirmed commitments to cutting interest rates and the reserve requirement ratio while keeping the yuan stable. The PBOC has also doubled relending funds for the technology sector to 1 trillion yuan. Mia Nulimaimaiti, South China Morning Post, March 14
U.S. House Republicans set to introduce bill to block Chinese from student or research visas. House Republicans, led by Representative Riley Moore, plan to introduce a bill barring Chinese nationals from obtaining student or research visas, citing espionage concerns. The bill, which lacks Democratic support, follows previous Trump-era restrictions. Critics argue it could damage U.S.-China relations and academic collaboration. Asian-American advocacy groups condemned the proposal as racial profiling. Bochen Han, South China Morning Post, March 14
China, Iran, Russia kick off talks in Beijing on Iran's nuclear issues. Senior diplomats from China, Iran, and Russia met in Beijing to discuss Tehran’s nuclear program, days after Iran rejected U.S. calls to resume negotiations. China expressed hope the meeting would create conditions for renewed dialogue. The talks follow U.S. concerns over Iran’s uranium enrichment, which the IAEA says is approaching weapons-grade levels. Tehran insists its nuclear program is peaceful and denounced recent UN Security Council discussions as politically motivated. Ryan Woo, Reuters, March 14
Japan
Japan’s Iwaya calls U.S. tariffs ‘regrettable’ in talks with Rubio. Japanese Foreign Minister Takeshi Iwaya told U.S. Secretary of State Marco Rubio that President Donald Trump’s decision to impose tariffs on all steel and aluminum imports was “regrettable.” During their meeting at the G7 foreign ministers' summit, Iwaya urged exemptions for Japanese auto exports. Rubio acknowledged Japan’s concerns but did not provide assurances. Tokyo fears Trump’s planned 25% tariff on imported cars, set for April 2, will severely impact its auto industry. Takuya Karube, Kyodo News, March 14
Japan PM faces backlash over gift vouchers to rookie party members. Prime Minister Shigeru Ishiba is under fire for distributing ¥100,000 gift vouchers to newly elected Liberal Democratic Party lawmakers. Opposition leaders accused Ishiba of potential bribery, demanding his resignation ahead of key budget deliberations. Ishiba defended the vouchers as tokens of appreciation, claiming they were not political donations and were later returned. Critics argue the move undermines his pledge to restore public trust in government. Kyodo News, March 14
South Korea
Ahead of Yoon impeachment ruling, South Korea’s acting president calls for calm. Acting President Choi Sang-mok urged South Koreans to respect the upcoming Constitutional Court ruling on impeached President Yoon Suk Yeol. Authorities reinforced security in Seoul, banning drones and preparing police forces to prevent potential unrest. Yoon’s supporters previously stormed a court building in January, prompting officials to install barbed wire and establish a security perimeter. Ju-Min Park, Reuters, March 14
Acting president vetoes bill on special counsel probe into Yoon over election influence-peddling. Acting President Choi Sang-mok rejected an opposition-led bill calling for a special counsel investigation into President Yoon Suk Yeol over allegations of influence-peddling in the 2022 parliamentary by-elections. Choi argued the probe's scope was overly broad and could violate constitutional principles. The opposition accused him of using veto power to shield Yoon, marking his eighth such rejection since December. Kim Han-joo, Yonhap News Agency, March 14
North Korea
Trump says he still has good relations with leader of ‘nuclear power’ North Korea. U.S. President Donald Trump reiterated his strong relationship with North Korean leader Kim Jong Un, raising speculation about potential nuclear negotiations. Trump acknowledged North Korea’s nuclear arsenal and suggested arms reduction talks could include Pyongyang. The White House reaffirmed its commitment to complete denuclearization, while North Korea’s Kim Yo Jong accused the U.S. of provocations justifying an expanded nuclear deterrent. David Brunnstrom, Steve Holland and Trevor Hunnicutt, Reuters, March 13
N. Korean cargo ship suspected of smuggling coal collided with Chinese ship in Yellow Sea: source. A North Korean cargo ship, allegedly smuggling coal in violation of U.N. sanctions, sank after colliding with a Chinese vessel in the Yellow Sea in late February. The accident reportedly left 15-20 North Korean crew members dead. Chinese authorities rescued a few survivors, but Beijing and Pyongyang have remained silent on the incident. The ship had turned off its tracking system to evade detection. Kim Soo-yeon and Park Boram, Yonhap News Agency, March 13
Thailand
Thai business group urges PM to negotiate with U.S. amid tariff fears. Thailand’s Joint Standing Committee on Commerce, Industry and Banking urged Prime Minister Paetongtarn Shinawatra to engage in trade talks with the U.S. and consider lowering import taxes on American goods. The private sector proposed increasing U.S. imports to reduce the trade deficit, with Paetongtarn assuring businesses that a government committee is actively monitoring the situation. Thailand, along with Vietnam and Taiwan, is particularly vulnerable to potential tariff hikes. Kitiphong Thaichareon, Panarat Thepgumpanat and Chayut Setboonsarng, Reuters, March 13
Thai opposition to omit Thaksin’s name in no-confidence debate. Thailand’s opposition has agreed to remove former Prime Minister Thaksin Shinawatra’s name from its censure motion against Prime Minister Paetongtarn Shinawatra, following warnings from House Speaker Wan Muhamad Noor Matha. Opposition leader Natthaphong Ruengpanyawut confirmed the debate will proceed on March 24, with indirect references to Thaksin allowed. The opposition also sought 30 hours to question Paetongtarn, but government whips opposed the request. Chairith Yonpiam, Bangkok Post, March 13
Vietnam
Vietnam regulator proposes approval of Chinese COMAC jets, documents show. Vietnam’s Civil Aviation Authority has proposed recognizing China’s aircraft certifications as equivalent to U.S. standards, allowing jets from Chinese planemaker COMAC to operate in the country. The move follows increased cooperation between Vietnam and China, though Vietnam is also purchasing Boeing jets to address its trade surplus with the U.S. VietJet has considered leasing COMAC C909 planes, but regulatory delays have stalled their entry. Phuong Nguyen, Francesco Guarascio and Lisa Barrington, Reuters, March 13
Sri Lanka forms parliamentary friendship group with Vietnam. Sri Lanka’s 10th Parliament launched the Sri Lanka-Vietnam Parliamentary Friendship Group to enhance bilateral ties. The ceremony was attended by Prime Minister Harini Amarasuriya and Speaker Jagath Wickramaratne, with Vietnamese Ambassador Trinh Thi Tam serving as co-patron. Environment Minister Dammika Patabendi was elected chairman. The group aims to strengthen legislative cooperation, particularly ahead of a high-level Vietnamese National Assembly delegation visit. Vietnam News, March 14
Myanmar
TNLA’s recruitment plans alarm civilians in Mogok. Residents of Mogok, a town controlled by the Ta’ang National Liberation Army (TNLA), expressed fear over the armed group’s new mandatory recruitment policy. Local administrators announced that men and women aged 18-45 would be required to join a city defense force, with officials implying that those unwilling could be taken by force. Residents are considering ways to resist the conscription effort. Myanmar Now, March 13
Myanmar junta pushes Chinese BRI projects in Rakhine amid fierce fighting. Despite ongoing clashes with the Arakan Army (AA) in Kyaukphyu, the junta remains committed to China-backed projects. Deputy junta chief Soe Win emphasized the importance of the Kyaukphyu Special Economic Zone (SEZ) and deep-sea port, a key part of the China-Myanmar Economic Corridor. The $7.3 billion project has seen little progress, but an extended deadline looms. Reports indicate Chinese security personnel have arrived to protect investments. Maung Kavi, The Irrawaddy, March 13
Laos
Laos prepares for 2025 digital census with training initiatives. Laos has launched nationwide training programs to prepare for its first fully digital Population and Housing Census in October 2025. The Lao Statistics Bureau (LSB) is implementing satellite imagery and GIS technology to enhance data accuracy. UNFPA and international partners are providing technical support, including training 13,000 enumerators. Officials emphasize that census data will be crucial for shaping the country’s development policies. Kheuakham Chanlivong, The Laotian Times, March 13
China, Laos sign MOU to jointly promote Global Security Initiative. China and Laos signed a memorandum of understanding (MOU) in Beijing to enhance cooperation under the Global Security Initiative. Chinese Foreign Minister Wang Yi and Lao Foreign Minister Thongsavanh Phomvihane reaffirmed their commitment to strengthening bilateral ties, with China pledging support for Laos’ economic and security development. The agreement also prioritizes deepening collaboration on the China-Laos Economic Corridor and combating cross-border crimes like telecom fraud. China Daily, March 13
Bangladesh
U.N. chief in Bangladesh for a first-hand look at Rohingya camps as he pushes for aid. UN Secretary-General António Guterres arrived in Bangladesh to assess the conditions of over 1 million Rohingya refugees amid concerns over global aid cuts following the U.S. decision to shut down USAID operations. The visit aims to mobilize international support as the World Food Program warns of potential ration reductions due to funding shortfalls. Bangladesh’s interim government hopes to secure commitments for continued assistance. Julhas Alam, AP News, March 13
Philippines
Duterte refused fingerprinting and threatened lawsuits during chaotic arrest, Philippine police say. Former Philippine President Rodrigo Duterte resisted arrest and refused to be fingerprinted before being flown to The Hague to face crimes against humanity charges at the International Criminal Court. A 12-hour standoff at Villamor Air Base saw Duterte threatening lawsuits while his daughter and common-law wife clashed with police. His legal team claims the arrest violated Philippine sovereignty. Jim Gomez, Joeal Calupitan and Aaron Favila, AP News, March 13
Rodrigo Duterte to face ICC Pre-Trial Chamber for first appearance. Former Philippine President Rodrigo Duterte is scheduled to appear before the International Criminal Court’s (ICC) Pre-Trial Chamber I on March 14 at 9 p.m. (PST). ICC spokesperson Fadi El Abdallah confirmed Duterte's presence at the Scheveningen detention center, refuting claims from his supporters. His legal team asserts his rights under the Rome Statute, while victims’ lawyers argue he should not receive special treatment. Dominique Nicole Flores, The Philippine Star, March 14
Indonesia
Prabowo to increase Indonesia's research funds to one percent of GDP. President Prabowo Subianto plans to boost Indonesia’s research funding to 1% of GDP to support national industrialization and economic growth. Higher Education Minister Brian Yuliarto stated that while Indonesia currently allocates only 0.3% of GDP to research, the government aims to gradually increase funding. The Ministry of Higher Education has allocated Rp2 trillion for research through state budgets and private-sector partnerships. Mentari Dwi Gayati and Yashinta Difa, ANTARA News, March 14
Taiwan
Taiwan’s leader says tougher measures needed to counter stepped-up Chinese infiltration and spying. President William Lai warned of increasing Chinese espionage and influence operations targeting Taiwan’s military and public confidence. He proposed reinstating military trials for espionage and tightening residency rules for Chinese nationals. Taiwan also expelled a Chinese-born resident for pro-Beijing social media posts. The announcement coincided with the 20th anniversary of China’s Anti-Secession Law, which threatens military action if Taiwan resists unification indefinitely. Christopher Bodeen, AP News, March 13
KMT to hold policy briefings amid recall movement. The Chinese Nationalist Party (KMT) will conduct policy briefings across Taiwan from next week until May to promote its NT$10,000 tax rebate plan. The campaign coincides with ongoing recall efforts against KMT lawmakers. The Democratic Progressive Party (DPP) is also launching town halls, highlighting its use of tax surpluses for debt repayment. KMT officials criticized the DPP for mismanaging funds, while youth groups will campaign in markets and public spaces. Shih Hsiao-kuang and Lery Hiciano, Taipei Times, March 14
Uzbekistan
Uzbekistan and France sign €6.5 billion partnership agreements. President Shavkat Mirziyoyev met with French President Emmanuel Macron in Paris to strengthen political and economic ties. Agreements include the creation of the Uzbek-French University in Tashkent, a €6.5 billion investment partnership in energy and infrastructure, and a visa exemption for diplomatic passport holders. UNESCO collaboration was also expanded, with Samarkand set to host the 43rd UNESCO General Conference. Sadokat Jalolova, The Times of Central Asia, March 13
Kyrgyzstan
Kyrgyzstan and Tajikistan sign deal to end long-running border dispute. Kyrgyz President Sadyr Japarov and Tajik President Emomali Rakhmon signed an agreement in Bishkek to demarcate their 970 km border, aiming to resolve years of violent clashes. The deal includes reopening transport links that had been suspended since the deadly six-day conflict in September 2022. The border disputes date back to Soviet-era territorial divisions, with both nations maintaining strong ties to Russia. Aigerim Turgunbayeva, Mariya Gordeyeva and Felix Light, Reuters, March 13
Northeast Asia
Chinese VCs Whiffed on DeepSeek. Do They Still Matter? The release of DeepSeek R1, a Chinese open-source AI model, challenges the traditional role of venture capital in China’s tech sector. Unlike major firms that rely on VC funding, DeepSeek was self-funded by hedge fund manager Liang Wenfeng. The success of its open-source approach highlights the limitations of China’s VC industry, which often prioritizes short-term returns over long-term innovation. Robert Wu, Sixth Tone, March 14
China in Ukraine? A Surprising Twist in Global Peacekeeping. Amid U.S.-brokered ceasefire talks between Ukraine and Russia, speculation has emerged over China’s potential role in a peacekeeping mission. While Russia rejects NATO troops in Ukraine, it has signaled openness to neutral nations like China contributing forces. However, Chinese officials remain cautious, with Special Envoy Lu Shaye emphasizing that any deployment should be under a U.N. mandate. Analysts say Beijing is unlikely to act without strong appeals from multiple parties. Sim Tze Wei, ThinkChina, March 13
U.S., China, and Japan Racing for the Super-Battleship lead. The U.S., China, and Japan are engaged in a naval arms race, each developing advanced missile warships reminiscent of the Anglo-German rivalry before World War I. Japan's AEGIS System Equipped Vessel (ASEV) will be the largest non-U.S. stealth-guided missile destroyer, while the U.S. Navy's DDG(X) program aims to replace aging cruisers. Meanwhile, China is mass-producing Type 055 cruisers, narrowing the missile firepower gap with the U.S. Gabriel Honrada, Asia Times, March 14
China’s National People’s Congress 2025. Premier Li Qiang reaffirmed a 5% GDP growth target, emphasizing domestic consumption amid economic uncertainty and U.S. trade tensions. Local governments, responsible for 85% of public spending, face pressure to boost consumer confidence through social welfare and infrastructure investment. Beijing raised its debt ceiling to fund economic stimulus, issuing CNY 1.3 trillion in special treasury bonds and CNY 4.4 trillion in local government bonds. Policymakers also highlighted tech investment and trade retaliation strategies. MERICS, March 13
Southeast Asia
Southeast Asian Countries Won’t Let War in Ukraine Affect Ties With Russia. Despite U.S. and European sanctions, most Southeast Asian nations continue engaging with Russia, prioritizing economic and defense cooperation. Vietnam and Laos maintain strong historical ties, while Indonesia and Malaysia have deepened military partnerships. Myanmar’s junta seeks Russian arms and investment, sending thousands of workers to Russia. The ASEAN-Russia Dialogue remains active, with Moscow expanding ties across the region despite Western opposition. Ian Storey, Fulcrum, March 14
Mending Fences: Vietnam and Cambodia’s Diplomatic Reset. Vietnam and Cambodia have initiated a diplomatic reset following recent tensions over Cambodia’s deepening ties with China. In a historic summit in Ho Chi Minh City, Vietnam’s top leadership met with Cambodian Prime Minister Hun Manet and his father, Hun Sen, to strengthen economic and security ties. The talks emphasized cross-border infrastructure, trade, and strategic cooperation amid growing regional competition. Nguyen Khac Giang, Fulcrum, March 13
Kra Canal: The impossible dream of Southeast Asia shipping. The Kra Canal, a centuries-old proposal to link the Andaman Sea with the Gulf of Thailand, remains unbuilt despite persistent interest due to its potential to reshape global trade. China has pushed for its inclusion in the Belt and Road Initiative, but Thailand has instead prioritized a $28 billion land bridge project. Concerns over costs, environmental impact, and geopolitical consequences continue to stall progress. Paulo Aguiar, Geopolitical Monitor, March 12