China
China considers easing bank shareholding limits to boost capital, sources say. China is weighing looser bank ownership rules to widen capital raising options as economic weakness and the property crisis strain lenders. Under the 2018 rules, major shareholders can hold 5% stakes in only two banks or a controlling stake in one. Regulators may let some investors become major shareholders in one or two more lenders, with approval based on qualifications and the urgency of capital needs in each case. Author, Reuters, March 26.
China detaining Panama-flagged ships amid battle over port control, FMC says. U.S. regulators say China has increased detentions of Panama-flagged ships after Panama’s top court voided CK Hutchison’s canal port concession. The Federal Maritime Commission said the inspections appear meant to punish Panama after interim control passed to Maersk and MSC units. Nearly 70 ships had been detained since March 8. The dispute also complicates Hutchison’s plan to sell most of its global ports business to BlackRock and MSC group. Lisa Baertlein, Reuters, March 27.
China's 'Davos' loses lustre as debate dims, face time with leaders fades. International participants said the Boao Forum and China Development Forum have become more scripted, less open and weaker as venues for debate and access to top leaders. This year’s Boao keynote came from Zhao Leji rather than Xi Jinping or Li Qiang, and no policy message emerged. Executives said face time with leaders has shrunk, while Beijing’s promises of openness sit beside curbs on fuel and fertilizer exports from China. Joe Cash, Reuters, March 26
China willing to strengthen economic, trade cooperation with U.S. China said it is willing to strengthen economic and trade cooperation with the United States after Commerce Minister Wang Wentao met U.S. Trade Representative Jamieson Greer during a World Trade Organization meeting in Cameroon. Wang said trade relations should drive bilateral ties, balance competition with cooperation, and avoid vicious rivalry. He also raised serious concerns about U.S. Section 301 investigations, including forced labor probes begun this month. Farah Master, Reuters, March 26
Japan
Japan starts release of state-held oil to stabilize supplies amid Iran war. Japan began releasing state-held oil to steady supplies during the U.S.-Israeli war with Iran, launching the largest drawdown in its history. The release covers 30 days of domestic demand and follows a private-sector release equal to 15 days, for a total of about 80 million barrels. Officials cited supply risks after the blockage of the Strait of Hormuz and said coal-fired power plants and jointly stored oil would support supply needs. Kyodo News, March 26.
GSDF officer sent to prosecutors over entry into Chinese Embassy in Tokyo. Japanese police sent a 23-year-old Ground Self-Defense Force second lieutenant to prosecutors after his arrest for alleged unlawful entry into the Chinese Embassy in Tokyo. Investigators said Kodai Murata climbed over a barbed-wire wall, carried a knife, and told them he wanted to convey his views to the ambassador. He said he planned to commit suicide if refused. The Defense Ministry said he had been promoted on March 15 after his recent graduation. Kyodo News, March 26.
South Korea
Ruling party, gov’t aim to submit extra budget bill to National Assembly next Tuesday. The ruling Democratic Party and government agreed to submit a supplementary budget bill next Tuesday to cushion sectors hit by the Middle East war. The plan would support oil price caps, refinery losses, low-income households, youth, small firms, oil reserves, naphtha, rare earths, and urea. It would also back household renewable energy systems as leaders press for swift action and accuse the opposition of risking delay ahead of elections. Yi Wonju, Yonhap News Agency, March 26.
Lee’s approval rating hits new high: poll. President Lee Jae Myung’s approval rating rose to 69% in a National Barometer Survey, the highest since he took office. Negative views fell to 22%, while 67% said state affairs are moving in the right direction. Support for the ruling Democratic Party reached 46% and backing for the opposition stood at 18%. 53% also supported a supplementary budget to address the Middle East crisis. Yi Wonju, Yonhap News Agency, March 26
North Korea
North Korea, Belarus sign friendship treaty, KCNA says. Kim Jong Un and Alexander Lukashenko held a summit in Pyongyang where North Korea and Belarus signed a friendship treaty and cooperation agreements covering diplomacy, agriculture, education, and public health, according to KCNA. Kim called Lukashenko’s trip the first state visit by a Belarusian president since ties began and said it would upgrade bilateral relations. Lukashenko said the two governments shared views on international affairs and relations were advancing fast. Heejin Kim, Reuters, March 26
Thailand
Thai ship hit in Hormuz runs aground off Iran's Qeshm Island, Iran's Tasnim says. A Thai-flagged cargo ship that was struck by unknown projectiles in the Strait of Hormuz earlier this month has run aground off Iran’s Qeshm Island, according to Iran’s Tasnim news agency. Thailand said the vessel, Mayuree Naree, suffered an explosion in its stern that caused an engine room fire. The Omani navy rescued 20 crew members, while three others remained missing after the incident during the attack at sea. Ahmed Tolba and Hatem Maher, Reuters, March 26.
Natthaphong, Rangsiman lash government over fuel hike. Thailand’s People’s Party attacked the government after a 6 baht per litre rise in retail fuel prices took effect on March 26. Natthaphong Ruengpanyawut demanded answers in parliament and said official claims of no shortage conflicted with long queues. Rangsiman Rome said the government created the crisis. The party also called for phased price increases, reserve fund use, and support for vulnerable groups after subsidy cuts strained the oil fund. The Nation, March 26
Myanmar
Chaos reigns across Myanmar as fuel crisis deepens. Myanmar’s fuel crisis is driving queues, rationing, and price spikes across the country as wars in the Middle East, sanctions, and junta mismanagement strain supply. Truck delays have doubled transport times between Yangon and Mandalay, lifting cement and gravel prices. Unregistered trishaws are forced onto the black market for fuel. The regime has imposed odd-even sales, refill limits, and remote work for civil servants while airlines cut flights and freight. Nayt Thit, The Irrawaddy, March 26
Cambodia
Defense attache link set to boost India ties. India will open a defense attache office at its embassy in Phnom Penh as Cambodia and India deepen defense cooperation ahead of the 75th anniversary of diplomatic ties in 2027. During a March 21 to 23 visit, Indian Secretary East P. Kumaran held talks on political, commercial, cultural, and connectivity issues. He and Cambodian officials reviewed heritage projects at Angkor Wat, Ta Prohm, and related cultural exchanges in Siem Reap. Meng Seavmey, Cambodianess, March 26
Philippines
Philippines, France sign military pact amid South China Sea tensions. Manila and Paris signed a visiting forces agreement that will allow joint military training in each other's territory as the Philippines expands defense ties during friction with Beijing in the South China Sea. Defense chiefs Gilberto Teodoro and Catherine Vautrin signed the pact in Paris after talks on regional security, peaceful dispute resolution, and supply chain resilience. The deal follows an unsafe maneuver by a Chinese frigate near Thitu Island. Nestor Corrales, Reuters, March 27
Marcos: PH has enough crude oil until June 2026. President Ferdinand Marcos Jr. said the Philippines has enough crude oil supply to last until June 30, 2026, easing concerns during the national energy emergency. Speaking at the opening of NAIA Expressway Phase II, he said San Miguel Corp. chairman Ramon Ang confirmed that imported crude for local refining remains available. Marcos said crude costs less than imported refined diesel, giving the country a price advantage as supply risks persist. Catherine S. Valente, The Manila Times, March 27
PH Navy vessel avoids collision with Chinese warship in WPS. The Philippine Navy ship BRP Benguet avoided a collision near Pag-asa Island after a Chinese missile frigate made a close pass during a routine operation on March 25. Western Command identified the vessel as PLAN hull 532 and called the move unsafe and unprofessional. It said the maneuver violated international collision rules, while the crew’s measured response prevented escalation and preserved safety during lawful operations in the West Philippine Sea. The Manila Times, March 27
Indonesia
Prabowo, Anwar to discuss geopolitics in Jakarta talks Friday. Indonesian President Prabowo Subianto and Malaysian Prime Minister Anwar Ibrahim will meet in Jakarta on March 27 to discuss recent geopolitical developments, with a focus on the Middle East war and its effects on regional stability, trade, and economic conditions. Malaysia said the talks will help align positions, strengthen strategic cooperation, and support diplomatic efforts to ease tensions. ANTARA News, March 26
Prabowo orders resource push to secure energy autonomy. President Prabowo Subianto ordered faster mineral downstreaming and resource optimization to strengthen energy independence and raise state revenue. Energy Minister Bahlil Lahadalia said the government is adding 13 projects worth Rp239 trillion to reinforce industrial processing, alongside 20 existing projects. The program also emphasizes ethanol, biodiesel, and renewable energy. ANTARA News, March 26
Malaysia
Iran allowing Malaysian vessels to pass in Strait, PM says after talks with regional leaders. Prime Minister Anwar Ibrahim said Malaysian vessels are being allowed through the Strait of Hormuz after he spoke with Iran, Egypt, Turkey and other leaders. He thanked Iran’s president and said authorities are releasing Malaysian oil tankers and crew so they can continue home. Anwar said Malaysia will keep oil price subsidies but also cut monthly allocations of subsidized fuel as war and supply disruption hit the economy and markets. Ashley Tang and David Stanway, Reuters, March 26
Malaysia explores nuclear power as Middle East war drives up energy costs. Malaysia is examining nuclear power as part of its 13th Malaysia Plan after the U.S.-Israel war against Iran, and the closure of the Strait of Hormuz disrupted regional fuel flows. Deputy Prime Minister Fadillah Yusof said nuclear energy could strengthen long-term energy security, cut reliance on volatile fossil fuels, and support clean energy goals. MyPOWER Corporation will assess policy, regulation, feasibility, and stakeholder engagement under IAEA guidance for implementation. Malay Mail, March 27
Singapore
Singapore leader sees China helping small groups realise big results for Asia. Lawrence Wong said China can help Asia build new forms of plurilateral cooperation by working with smaller groups of like-minded countries to address strains on multilateralism. Speaking at the Boao Forum for Asia, he said Beijing could lead on AI governance and promote regional prosperity, with Singapore ready to cooperate across issues. Wong also cited a breakdown in norms and warned that geopolitical tension is spilling into the economic realm. Vanessa Cai, South China Morning Post, March 26
Taiwan
Former Taipei mayor sentenced to 17 years in corruption case. A Taipei court sentenced former mayor and presidential candidate Ko Wen-je to 17 years in prison for corruption and misuse of political donations. Prosecutors said he took T$17.1 million in bribes tied to a property project and embezzled tens of millions in donations. Ko, founder of the Taiwan People’s Party, denied wrongdoing and called the case political. The court also stripped him of citizenship rights for six years after conviction. Ben Blanchard, Reuters, March 26
U.S. supports Taiwan on defence, energy, senior diplomat says. Raymond Greene told senior Taiwanese leaders that U.S. commitments under the Taiwan Relations Act remain rock solid and support both dialogue and deterrence across the Taiwan Strait. He backed Taiwan’s push for critical defence capabilities, including drones and integrated air and missile defences. Greene also said the United States stands ready to supply more crude oil and natural gas after CPC agreed to double LNG imports from Cheniere Energy Inc. Ben Blanchard, Reuters, March 26
U.S. envoy calls on Taiwan legislators to pass special defense budget. Raymond Greene urged Taiwan's lawmakers to approve a special defense budget to fund planned U.S. arms purchases and show a commitment to self-defense. Speaking at an AmCham event in Taipei, the American Institute in Taiwan director said Washington's support remains rock solid and pairs dialogue with deterrence. Lawmakers had finished reviewing three plans without agreement, including a cabinet proposal far larger than opposition versions and centered on weapons and domestic systems. Joseph Yeh, Focus Taiwan, March 26
Ko Wen-je proclaims his innocence. Former TPP chairman Ko Wen-je denied wrongdoing after a court sentenced him to 17 years in prison for corruption and misuse of political donations. He called the case political suppression and accused the ruling party of reprisal. TPP Chairman Huang Kuo-chang announced a Sunday rally by supporters. The KMT backed Ko’s right to legal remedy, while DPP lawmakers said attacks on the judiciary would damage the party before the November elections. Chang Wen-chuan, Jake Chung, Lin Che-yuan, Chen Cheng-yu, and Lee Wen-hsin, Taipei Times, March 27
Nepal
Panel wants prosecution of ousted Nepal PM over violence in 'Gen Z' protests. A Nepali panel recommended prosecuting former prime minister K.P. Sharma Oli for negligence over killings during September anti-corruption protests that forced his resignation. The report said Oli failed to stop hours of firing on the first day and held former home minister Ramesh Lekhak and police chief Chandra Kuber Khapung responsible as well. Seventy-six people were killed, and 2,522 were wounded. Oli rejected the findings as character assassination and hate politics. Gopal Sharma, Reuters, March 26
Kazakhstan
Despite growth plans, trade between Kazakhstan and Russia declined in 2025. Kazakhstan's trade with Russia fell to $27.4 billion in 2025 from $27.8 billion in 2024, showing slower growth despite official plans to raise turnover to $30 billion. Trade Minister Arman Shakkaliev said exports to Russia declined while imports kept the balance tilted. Both governments identified energy, commerce, transport, and logistics for expansion, while digital waybills and checkpoint upgrades are meant to speed cross-border flows and improve transparency at border crossings. Dmitry Pokidaev, The Times of Central Asia, March 26
The Iran War Is Reshaping Asia’s Energy Security Strategies. The war with Iran has disrupted oil and liquefied natural gas flows from the Persian Gulf, driven up prices, and exposed Asia’s heavy dependence on Middle Eastern energy. Governments across the region are revising energy plans. Japan is pushing a nuclear comeback, China is fast-tracking new reactors, and Vietnam and the Philippines are moving ahead with nuclear development. South Korea is weighing domestic uranium enrichment as it seeks greater energy security. Some states are also turning back to coal, while others are looking to Europe’s transition toward wind and solar power after the Ukraine war. The region has large renewable potential, but many countries face short-term pain while the Strait of Hormuz remains near closure. Joshua Kurlantzick and Annabel Richter, Council on Foreign Relations, March 26
The Asia-Pacific Pivot Is a Zombie Policy. U.S. policy still includes alliances, military exercises, trade ties, and some force posture in Asia, but the pivot has lost force as Trump redirects attention and assets toward the Western Hemisphere and the Middle East. Regional allies are hedging through new trade pacts and defense partnerships, while Japan and South Korea are strengthening their own military capacity and weighing greater room for independent action. Weak U.S. responses to Chinese moves in the South China Sea and the collapse of the TPP deepened doubts about long-term U.S. commitment. The region now faces a thinner U.S. presence while still relying on U.S. security ties and expanding economic links with China. Robert A. Manning, Foreign Policy, March 26
East Asia
Open Models, Soft Power, and the Spectrum of U.S.-China Artificial Intelligence Competition. U.S.-China competition in artificial intelligence now includes open models as a contest over influence in the global AI ecosystem, commercial adoption, and research use. Chinese firms have gained ground through strong open releases, permissive licenses, and outreach in the developing world, which can pull users toward Chinese model architectures and tech infrastructure. Wider use of Chinese open models could spread censorship risks, support military-civil fusion, and create dependence on Chinese systems. A stronger U.S. response would expand support for the open-model ecosystem, widen access to compute, encourage permissive licensing, preserve strength in frontier closed models, and recalibrate export controls to address inference demand. Owen J. Daniels, Hanna Dohmen, RAND, March 26
Two Sessions: how consequential is China’s new Planning Law?. China’s new National Development Planning Law centralizes planning authority, binds local and sector plans to a single national blueprint, and locks the drafting, approval, implementation, supervision, and adjustment process into formal legal procedure. The law targets policy drift, local vanity projects, hidden debt, and bureaucratic conflict across land, transport, industry, and environmental planning. It also marks a change from local experimentation toward tighter top-level design, with pilots limited to refining central priorities. Paired with a campaign on the correct view of political achievement, the law seeks to steer officials away from debt-fueled visible expansion and toward long-term results aligned with central strategy. Important gaps remain in budgeting links, conflict resolution, and enforcement detail. CHINA POLICY, March 26
Japan’s growing Chinese community and the future of Japan-China relations. Japan’s tighter controls on foreign residents reflect population decline, labor shortages, weak integration systems, and security fears tied to China, Russia, and North Korea. Chinese residents in Japan reached 900,000 in 2025, while Chinese Japanese marriages have topped 3,000 each year of the 2020s. Public views of China remain harsh, with more than 80 percent holding negative views since 2013, yet more than 60 percent still see ties with China as important. Younger Japanese tend to view China in a better light, but they also back the Takaichi government’s security agenda. The future of Japan-China relations will turn on whether Japan can integrate Chinese residents while easing public distrust of China. Shin Kawashima, East Asia Forum, March 26
South Korea shifts from aid to minerals in Africa. President Lee Jae-myung has cut official development assistance and moved South Korea’s Africa policy toward critical minerals needed for artificial intelligence and advanced manufacturing. The December 2025 budget reduced ODA by 22.2 percent and humanitarian aid by 51.4 percent, while AI funding rose to 10.1 trillion won and support for diplomacy with African and Middle Eastern states grew. Seoul faces fiscal strain from tariff negotiations with the Trump administration, lower foreign exchange reserves, and rising debt. Africa remains a small trade partner, but it matters for mineral security, including manganese from South Africa and agreements with Tanzania and Madagascar. This strategy may weaken trust if African states see Seoul as pursuing extraction over partnership. Liam Cowan, East Asia Forum, March 25
Pyongyang Housing Push Marches On. Commercial satellite imagery shows North Korea moving ahead with the fifth stage of construction in Pyongyang’s Hwasong District. A month after the groundbreaking ceremony, new roads are visible, a roundabout is taking shape, and foundations have appeared on several large plots near the recently completed fourth stage. The project follows Kim Jong Un’s 2021 plan to add 50,000 apartments to the capital, with state media claiming that almost 60,000 new units were built. The latest phase replaces a worker housing camp that has been moved about 3 kilometers southeast, closer to Kangdong, which Kim has named as a possible next redevelopment zone. Three other Pyongyang districts have also been earmarked, though work there has not started. Martyn Williams, 38 North, March 26
Southeast Asia
Lawrence Wong: China at the heart of Asia’s stability and prosperity. Lawrence Wong says Asia faces deeper geopolitical rivalry, weaker multilateral rules, supply chain strain, and slower consensus on climate and artificial intelligence. He calls for flexible cooperation through plurilateral arrangements such as RCEP, CPTPP, and DEPA while preserving and reforming global institutions. China, in his account, holds a central role because of its economic weight, technological capacity, cultural reach, and support for regional initiatives such as the AIIB and Belt and Road Initiative. He says China can help sustain open trade, shape rules in new sectors, deepen ASEAN integration, and support regional growth through investment, market demand, and collaboration on energy transition and digital trade. Lawrence Wong, ThinkChina, March 26
Malaysia’s Oil Shock Absorption: Adding Agility to the Subsidy Regime. Malaysia’s fuel subsidy regime came under pressure after the US-Israel war on Iran pushed crude toward $100 a barrel. Anwar Ibrahim kept RON95 at RM1.99 for two months, raised cash transfers, and increased prices for unsubsidised fuels and some user groups. Subsidy costs rose from RM700 million to RM3.2 billion a month, while reliance on Gulf crude and fuel smuggling added strain. A new pricing formula for subsidised petrol and use of Petronas windfall profits would help absorb oil shocks while protecting households and limiting fiscal stress. Lee Hwok-Aun, FULCRUM, March 26
South Asia
Nepal’s Fresh Start Begins Now. Nepal’s Rastriya Swatantra Party won 182 of 275 seats after a Gen Z protest movement toppled the old government and forced early elections. Balendra Shah, known as Balen, will take office with a mandate for anti-corruption and administrative reform, backed by youth anger at patronage politics, unemployment, and migration. Supporters see a break from party machines and a chance to unite parts of the country left at the margins of power. Critics warn that merit-based governance, past attacks on provincial assemblies, and Balen’s record against vendors and squatters could weaken inclusion and checks on power. High expectations and bold economic promises create risk of fresh unrest if reform falls short. Ben Dunant, Foreign Policy, March 26