Asia Daily: March 19, 2024
News
Hong Kong: Law Giving Government More Power to Curb Dissent Passed. Hong Kong's legislature has unanimously approved a new national security law that expands the government's powers to suppress dissent. This law adds to the security measures imposed by Beijing in 2020, following the pro-democracy protests. It allows for the prosecution of citizens for a broad range of offenses deemed threats to national security, with severe penalties including life imprisonment for the gravest charges. Critics argue that this law will further erode the civil liberties once promised to Hong Kong when it was handed over from British to Chinese rule in 1997. The quick passage of the law, driven by a legislature filled with Beijing loyalists, has raised concerns about the diminishing accountability and autonomy of Hong Kong's political system. Kanis Leung, AP News, March 19
BOJ Introduces First Rate Hike in 17 Years Following Pay Gains. The Bank of Japan (BOJ) has ended its unique negative interest rate policy, marking its first interest rate increase in 17 years, as it sees a healthy wage-price cycle forming in Japan. The policy meeting concluded with a new short-term interest rate target set between zero percent to 0.1%, moving away from the previous negative rate. This decision reflects the BOJ's confidence in reaching its 2% price stability target sustainably. Additionally, the BOJ announced the termination of its yield curve control program and the end of its exchange-traded funds and real estate investment trusts purchasing. This move signifies a major shift from the ultra-loose monetary policies of the past decade towards a more standard monetary policy framework. However, with the Japanese economy not fully recovered and consumption remaining sluggish, the BOJ maintains a cautious outlook on further rate hikes. Kazuaki Nagata, The Japan Times, March 19
US Officials Say Pact with Strategically Key Pacific Island Nations Underscores American Commitment. The United States has renewed its commitment to the Pacific by approving $7.1 billion in aid over 20 years for the Marshall Islands, the Federated States of Micronesia, and the Republic of Palau, collectively known as the Freely Associated States. This aid aims to bolster health services, infrastructure projects, and education in these strategically significant nations amidst concerns over China's efforts to expand its influence in the Pacific. The pact is part of a broader U.S. diplomatic push to ensure stability and freedom in the Indo-Pacific region, reflecting deep historical ties and strategic partnerships that extend beyond financial assistance. This move comes in response to the growing strategic competition in the Pacific, emphasizing the importance of these island nations to U.S. security interests and the Indo-Pacific's stability. David Rising, AP News, March 19
Images Taken Deep Inside Melted Fukushima Reactor Show Damage, But Leave Many Questions Unanswered. Miniature drones have provided a new glimpse into the damaged No. 1 reactor at the Fukushima nuclear plant, capturing images of displaced control equipment and misshapen materials within the primary containment vessel's pedestal. These photos, the first of their kind, reveal the complexity of decommissioning the plant, a task complicated by 880 tons of highly radioactive melted nuclear fuel within three reactors. Despite this technological advance, the images raise as many questions as they answer, particularly regarding the identification of melted fuel versus equipment, due to the inability to measure radiation levels directly during the drone probe. The endeavor underscores the immense challenges ahead, with critics arguing that the government and TEPCO's cleanup timeline may be overly optimistic. Mari Yamaguchi, AP News, March 19
UN Chief Decries Violence in West Myanmar as Two Dozen Villagers are Reported Killed in Airstrikes. Military airstrikes in Myanmar's western Rakhine state have resulted in the deaths of at least 25 members of the Rohingya minority, including children. This incident has drawn criticism from U.N. Secretary-General António Guterres, who expressed concern over the escalating conflict in Myanmar. The airstrikes targeted the village of Thada, further aggravating the humanitarian situation in the region. The military's use of air power has been a significant aspect of its strategy against armed resistance since the 2021 coup. This latest attack underscores the ongoing challenges in protecting civilians and ensuring humanitarian access amidst Myanmar's complex conflict landscape. Grant Peck, AP News, March 19
US and Japan Seek UN Resolution Calling on All Nations to Ban Nuclear Weapons in Outer Space. The United States and Japan are leading an initiative at the UN, proposing a resolution to prevent the deployment or development of nuclear weapons in space. This move comes amidst concerns over Russia's acquisition of anti-satellite weapon capabilities. The Outer Space Treaty, which bans nuclear and other weapons of mass destruction from orbit, is ratified by 114 countries including the US and Russia. The proposal emphasizes the historic agreement during the Cold War to keep space peaceful and urges nations not yet party to the treaty to join. Russia's response criticizes the resolution as politicized, signaling a complex path ahead for international consensus on this critical issue. Edith M. Lederer, AP News, March 19
Chinese Billionaire Hui Qin Pleads Guilty to Straw Donor Scheme in New York, Rhode Island. Hui Qin, a Chinese billionaire and film magnate, admitted to violating U.S. election laws by making illegal contributions through others to various political candidates, including a New York City official, a U.S. House member, and a congressional candidate. Qin, who has been in custody since last October, used his wealth to recruit individuals to make donations on his behalf, starting with a 2021 New York City race. While the specific candidates Qin supported are not identified, his actions have drawn attention to the use of straw donations in political financing. This case underscores the challenges of maintaining the integrity of campaign finance in the face of foreign influence. Jake Offenhartz, AP News, March 19
Long Form
The Uyghur Diaspora’s Desperate Search for Family Members in China. The Uyghur community abroad faces relentless anguish over the unknown fates of their relatives in China. Many have loved ones serving long prison sentences, coerced into labor, or simply vanished without a trace. This collective heartache, described by Yalkun Uluyol—who himself has a father serving a 16-year sentence, an uncle condemned to life, and numerous other relatives either jailed or missing—emphasizes the profound emotional toll of separation and the relentless pursuit of answers regarding their loved ones' well-being. The quest for information and the hope for reunification continue to drive the Uyghur diaspora, amidst a backdrop of ongoing human rights concerns. Ruth Ingram, The Diplomat, March 19
Sunflower Movement 10th Anniversary Reflects Taiwan’s Current Political Divisions. The 10th anniversary of the Sunflower Movement, marked by a rally in front of the Legislative Yuan in Taipei, underscores the movement's lasting impact on Taiwan's political landscape. Originally sparked by opposition to the Cross-Strait Service Trade Agreement (CSSTA) with China, the movement's echoes are evident in contemporary debates over revising the CSSTA and the Kuomintang (KMT)'s regained leadership of the legislature. Prominent figures from the movement, such as Lin Fei-fan and Dennis Wei, participated in commemorating the anniversary, highlighting the movement's role in shaping political discourse and activism in Taiwan. This anniversary serves as a reminder of the deep political divisions within Taiwan, particularly regarding its relationship with China, and the continuing influence of civic activism on the island's governance and policy direction. Brian Hioe, The Diplomat, March 19
Hong Kong Passes Article 23 Security Law with Sweeping Powers. In a significant legislative move, Hong Kong has enacted a comprehensive national security law, adding another layer to the security measures imposed by Beijing in 2020. The law, passed unanimously, introduces a range of provisions that grant authorities extensive powers, including the ability to detain and punish individuals for having the "intent" to endanger national security, with penalties as severe as life imprisonment. This development ushers Hong Kong into a new legal era marked by stricter security regulations and raises concerns about the impact on civil liberties and the judicial system. Kenji Kawase, Nikkei Asia, March 19
India Opposition Fights for Relevance Versus Modi Election Juggernaut. In the lead-up to the world's largest election, Rahul Gandhi and the Congress party face steep challenges against Prime Minister Narendra Modi's Bharatiya Janata Party (BJP). Gandhi's 6,700-kilometer "Unite India Justice" march aimed to bridge India's socioeconomic divides and unite the opposition. However, internal disputes and legal issues plague the Indian National Development Inclusive Alliance (INDIA), a coalition of nearly two dozen opposition parties, including Congress. Despite a vibrant campaign, skepticism abounds regarding the opposition's capacity to dethrone the BJP, which boasts significant electoral advantages, including a strong economic performance and vast financial resources. Modi's party is projected to win by a large margin, continuing its dominance in Indian politics. Kiran Sharma, Nikkei Asia, March 19
BOJ Ends Negative Rates, Leaves Questions Over Policy Direction. The Bank of Japan (BOJ) has officially ended its negative interest rate policy, a move that marks a significant shift in its monetary stance. BOJ Governor Kazuo Ueda announced this change, aiming to align Japan's monetary policy with that of other central banks. This decision raises overnight lending rates to 0%-0.1%, up from minus 0.1%-0%, marking the first rate increase in 17 years. Additionally, the BOJ has concluded its yield curve control policy and will cease purchasing exchange-traded funds (ETFs) and Japanese real estate investment trusts (J-REITs), reflecting a broader overhaul of its policy framework. Despite this major policy shift, the BOJ maintains an accommodative stance, with no immediate plans for further adjustments. The move comes amid a 5.28% wage increase agreement by Japan's largest employers, suggesting a shift towards economic normalization. Yet, the end of negative rates introduces uncertainties about future monetary policy directions and their impact on Japan's economy and the global financial market. Mitsuru Obe, Nikkei Asia, March 19
Asia Ground Zero in the Revolution of Electric Vehicle Markets. Asia is at the forefront of the electric vehicle (EV) revolution, with China leading the charge, representing 57% of global EV sales in 2023. Asian countries are rapidly building new EV factories and rolling out incentives, with emerging economies leapfrogging developed ones in EV adoption. This shift is driven by a combination of domestic policies, foreign investments, and a focus on green technologies. Southeast Asian nations like Thailand and Indonesia are ramping up production capacities, supported by Chinese automakers and government policies. Meanwhile, established economies like Japan and South Korea are navigating the transition to EVs, balancing investments in internal combustion engine cars and hybrids with new EV technologies. The race for EV dominance in Asia underscores the geopolitical and economic stakes in the green technology sector. Yves Tiberghien, East Asia Forum, March 19
Conscription Will Worsen Myanmar’s Dire Humanitarian Crisis. Myanmar's military junta's decision to enforce mandatory conscription for men and women poses severe human rights and humanitarian concerns. Starting in April 2024, the scheme aims to draft 60,000 individuals, risking widespread abuse, extortion, and exacerbation of the refugee crisis. The military's historical reliance on volunteer recruitment from impoverished communities has dwindled, leading to this drastic measure amidst ongoing resistance and lack of popular support. This policy not only threatens to deepen the country's humanitarian crisis but also implicates civilians in the junta's human rights abuses, with devastating consequences for Myanmar's society and its future. Calvin San, East Asia Forum, March 19