Asia Daily: March 27, 2024
News
Vietnam minister credits 'bamboo diplomacy' for balancing relations with China and US. Vietnam's Foreign Minister Bui Thanh Son highlighted "bamboo diplomacy" as key to maintaining balanced relations with both China and the US, amidst global rivalries. Hosting leaders from both nations in 2023, Vietnam aims to foster good relations with major powers, enhancing economic and strategic partnerships. This approach supports regional peace and prosperity, underlining Vietnam's role in the strategic competition landscape. Khushboo Razdan, South China Morning Post, March 26
North Korea rejects talks with Japan, nixes floated summit: KCNA. North Korea has declined any further negotiations with Japan, including a proposed summit between leaders Kim Jong Un and Fumio Kishida, as reported by KCNA. Kim Yo Jong criticized Japan for focusing on unresolved issues, notably the abduction of Japanese citizens by North Korea in the past. This stance complicates efforts to address various concerns between the two nations. Kyodo News, March 26
Kyrgyzstan: Fallen kingmaker Matraimov deported from Azerbaijan. Rayimbek Matraimov, a former Kyrgyz customs official implicated in corruption, was deported from Azerbaijan to Kyrgyzstan and arrested upon arrival. This action follows allegations linking him to a plot to assassinate Kyrgyz leaders. Matraimov has faced significant legal and financial scrutiny, marking a dramatic shift in his once-powerful status. Ayzirek Imanaliyeva, Eurasianet, March 26
Weapon export rules eased to allow Japan to sell fighter jets. Japan has relaxed its defense equipment transfer policies to enable the global sale of next-generation fighter jets, being developed jointly with Britain and Italy. This move, aimed at ensuring Japan's active participation in the trilateral project as an equal partner, marks a significant shift from its previous stance on arms exports, reflecting a broader strategy to engage more deeply in international defense collaborations. Kyodo News, March 26
South China Sea: no risk of imminent war with Philippines, Beijing think tank says. Despite recent tensions, the South China Sea Strategic Situation Probing Initiative reports no immediate war risk between China and the Philippines. The think tank notes that the Philippines cannot independently confront China, and the US lacks interest in direct conflict involvement. This assessment follows repeated confrontations in disputed sea areas, highlighting the complex geopolitical dynamics in the region. Amber Wang, South China Morning Post, March 26
PM vows active dialogue with medical community amid doctors' strike. Prime Minister Han Duck-soo has committed to engaging in active discussions with the medical community to resolve the ongoing strike by trainee doctors. The strike, a protest against the decision to increase medical school admissions significantly, has seen mass resignations from senior doctors at major hospitals. Han expressed hope that the dialogue would lead to a constructive solution, acknowledging the public's concern over the impact of the medical community's issues. Kim Han-joo, Yonhap News Agency, March 26
Five Chinese nationals among six killed in suicide bomb attack in Pakistan. A suicide attacker targeted a convoy carrying Chinese engineers in northwest Pakistan’s Khyber Pakhtunkhwa province, resulting in six deaths, including five Chinese nationals. The convoy was en route to a key hydroelectric dam project. This incident follows other attacks in the region, underscoring the security challenges for Chinese projects in Pakistan. Abid Hussain, Al Jazeera, March 26
Hun Sen to join China forum, talk challenges. Former Cambodian Prime Minister Hun Sen is set to participate in the Boao Forum for Asia in Hainan, China, where he will discuss Asia's challenges and the importance of collaborative responses. This forum serves as a platform for discussing regional economic policies and enhancing bilateral cooperation, reflecting Cambodia's active role in regional diplomacy and its efforts to engage with strategic partners on critical issues. Mom Kunthear, Phnom Penh Post, March 26
Australia Joins World Bank to Support Laos' Land-Linked Agenda. Australia and the World Bank are initiating a $200 million project to enhance connectivity in northern Laos. This effort, aligning with the ASEAN Master Plan on Connectivity, includes upgrading National Road 2 to establish a new East-West corridor. The project aims to improve transportation, facilitate trade, and ensure access to essential services like education and healthcare, with a focus on gender equality and environmental protection. Chono Lapuekou, Laotian Times, March 26
China-Germany ties resilient despite EU's 'de-risk' strategy, says Beijing envoy. Despite the European Union's efforts to 'de-risk' its relationship with China, the Chinese ambassador to Germany, Wu Ken, emphasizes the resilience of China-Germany economic and trade relations. German companies continue to invest heavily in China, reflecting their confidence in the Chinese market. This stance contradicts the EU's caution due to economic overdependence on China and an assertive Beijing. Kawala Xie, South China Morning Post, March 26
Chuan acquitted of defaming Thaksin. The Bangkok South Criminal Court acquitted Chuan Leekpai, a veteran Democrat, of charges stemming from his 2012 criticism of Thaksin Shinawatra's southern security policy. The court acknowledged Chuan's right to critique the policy, which he blamed for escalating violence in southern Thailand. This ruling marks a significant moment in the ongoing political discourse surrounding past government actions. Bangkok Post, March 26
Regime administrators ask civilians to chip in for new army enlistees. In Myanmar, junta officials in cities like Yangon, Mandalay, and Naypyitaw are soliciting contributions from civilians, claiming the funds will support new military recruits. This follows the reactivation of a conscription law requiring eligible adults to serve in the military, leading to community surveys and potential conscript selections. The move has sparked civilian fundraising efforts, with some openly collecting money. Myanmar Now, March 26
Long Form
Why is Narendra Modi Nervous Ahead of India’s General Elections? For possibly the first time in a decade, the ruling Bharatiya Janata Party (BJP) in India, led by Narendra Modi, faces a tarnished image due to revelations of corruption. This shift occurred over just a week in March, with significant political maneuvers including the controversial appointment of two former bureaucrats as election commissioners despite opposition protests, the notification of the discriminatory Citizenship Amendment Act (CAA) rules, and a minor reduction in fuel prices. These actions, intended to bolster the government's confidence ahead of the election announcement, instead have contributed to a growing sense of uncertainty and anxiety within the ruling party as it prepares for the general elections. Kavita Chowdhury, The Diplomat, March 27
EV Makers Offer Deep Discounts as Thai Auto Market Weakens. In Thailand, the auto market is experiencing significant challenges, marked by a 26.15% decline in car sales during the first two months of 2024, reflecting broader economic concerns such as high consumer debt and tighter financing conditions. Despite a surge in electric vehicle (EV) registrations, driven largely by Chinese automakers and incentivized under Thailand's EV 3.0 program, the overall market downturn has led to an oversupply and decreased demand. As a result, automakers are resorting to deep discounts, notably at the Bangkok International Motor Show, to stimulate sales amidst fears of a looming price war. This environment has prompted strategies like BYD's discounted offerings and Changan Automobile's cheaper electric models to attract buyers. The industry braces for a challenging year, with expectations of a slow growth rate and cautious sales targets. Francesca Regalado, Nikkei Asia, March 27
China’s Economic Collision Course. China's economy faces significant stagnation, with growth barely above water in recent years due to a decline in property construction and stringent "zero COVID" policies. This economic slowdown, coupled with systemic issues, has led to a dramatic increase in China’s trade surplus, now exceeding imports by $1.7 trillion. Despite achieving middle-income status, China's shift from investment-led to consumption-led growth is hindered by policies prioritizing export growth over domestic demand, exacerbating global economic tensions. The National People’s Congress (NPC) offered little hope for a strategic pivot, further entrenching China in an export-reliant economic model. This stance invites trade conflicts not only with advanced economies but also within the BRICS nations, as evidenced by recent antidumping investigations. Beijing's current trajectory not only deepens its own economic imbalances but also risks intensifying global trade disputes, underscoring the urgent need for structural reforms to realign domestic demand and export capacities. Daniel H. Rosen and Logan Wright, Foreign Affairs, March 27
Chinese AI Companies a Perfect Match for Domestic Chipmakers. Amidst escalating US-China tech tensions, China's strategic pivot towards self-reliance sees AI giants like Huawei leading the charge against foreign dependency, especially on Nvidia's chips. As Chinese tech firms increasingly favor domestic innovation to circumvent international sanctions and trade restrictions, collaborations such as Huawei's partnership with Baidu highlight a significant shift. This movement not only challenges Nvidia's dominance but also underscores China's commitment to fostering a robust, self-sufficient semiconductor industry. Despite short-term hurdles, the synergy between domestic AI companies and chipmakers promises long-term stability and innovation, setting a precedent for future technological self-reliance. Megha Shrivastava, East Asia Forum, March 27
Xi Tells Visiting Americans China Is Planning "To Comprehensively Deepen Reform." In discussions with American CEOs and scholars, Xi Jinping reaffirmed China's unwavering commitment to its reform and opening-up agenda, emphasizing the adoption of major measures to foster a first-class business environment. This initiative aims to provide expansive development opportunities for global enterprises, including those from the United States, reinforcing China's dedication to marketization, rule of law, and internationalization. Rejecting the "Peak China" theory, Xi articulated a vision for China's continuous high-quality development and pursuit of Chinese-style modernization, contributing to global sustainable progress. The dialogue underscored a pivotal moment for China-US relations, demonstrating a mutual aspiration for improved bilateral cooperation and understanding. Zichen Wang,
, March 27