Asia Daily: March 28, 2024
News
Xi Jinping tells US delegation China's economy is 'sound and sustainable'. President Xi Jinping assured a US delegation in Beijing that China's economy remains robust and sustainable, promising further policy support to create a world-class business environment. This meeting, attended by leading business figures and academics, aimed to bolster confidence amid economic uncertainties and heightened US-China tensions. Xi emphasized China's commitment to reform and openness, aiming to provide a broader development scope for foreign businesses. Kawala Xie, South China Morning Post, March 28
Filipinos don't want Charter change – poll. A survey reveals most Filipinos are against amending the constitution, showing preference for addressing other national issues. This sentiment emerges amid ongoing political debates on the potential benefits of constitutional amendments for economic development and governance. The findings suggest a significant public reluctance towards altering the foundational legal document, reflecting broader concerns over prioritizing constitutional reform over immediate societal needs. Red Mendoza, The Manila Times, March 28
Xi Jinping to China’s central bank: restart treasury-bond trade, after 2-decade hiatus. President Xi Jinping has directed China's central bank to expand its treasury bond trading, marking a significant monetary policy shift. This approach aims to enrich monetary tools and inject liquidity into the economy, highlighting a strategic move to stimulate growth as China aspires to become a global financial superpower. The initiative reflects Beijing's adaptability in employing diverse monetary strategies amid evolving economic challenges. Mandy Zuo and Frank Tang, South China Morning Post, March 28
Ruling party pledges to relocate National Assembly to Sejong. The People Power Party announced plans to move South Korea's National Assembly to Sejong city, aiming to enhance its role as an administrative hub, similar to Washington, D.C. This move is intended to promote regional development, revitalize local economies, and reduce administrative expenses. The proposal, part of their election campaign, seeks to attract voters from Seoul, Sejong, and the Chungcheong region by transforming the current Assembly site in Seoul into a landmark. Kim Han-joo, Yonhap News Agency, March 27
Japan eyes upgrade of 16 airports, ports for possible defense use. Japan is planning to upgrade 16 transportation facilities, including five airports and 11 ports, for defense and coast guard use in response to military emergencies. This move, focusing on strategic locations across Japan, reflects concerns over regional security and aims to enhance national and international response capabilities. The project is part of Japan's broader national security strategy to strengthen infrastructure amid rising regional tensions. Kyodo News, March 27
China wins WTO dispute with Australia over steel products. China has triumphed in a dispute against Australia at the World Trade Organization regarding tariffs on Chinese steel products. The conflict, which began during a low point in bilateral relations, involved extra duties on various steel items imported from China. The WTO found Australia's actions inconsistent with anti-dumping agreements, and Australia's Trade Minister expressed commitment to complying with the ruling and supporting a rules-based trading system. This decision marks a significant development amid the countries' trade tensions. AP News, March 27
Việt Nam, US to step up cooperation in various fields. Deputy Prime Minister Trần Lưu Quang emphasized the deepening of Vietnam-US cooperation during Senator Kirsten Gillibrand's visit. They discussed enhancing mutual understanding, trust, and relations between both countries and their legislatures. The discussions also covered the importance of peace and the settlement of disputes by peaceful means in accordance with international law. Gillibrand's visit aims to further collaboration in economy, technology, energy, agriculture, and new areas like artificial intelligence. Vietnam News, March 27
Lawmakers in Thailand overwhelmingly approve a bill to legalize same-sex marriage. Thailand's Parliament has taken a significant step by approving a marriage equality bill, potentially making it the first in Southeast Asia to legalize same-sex marriage. The bill, which garnered strong support in the lower house, aims to amend current laws to provide equal rights for all marriage partners, regardless of gender. This historic move towards inclusivity and equality reflects Thailand's ongoing efforts to address discrimination within the LGBTQ+ community. AP News, March 27
Indonesia's top court hears election appeals of candidates who lost and want a revote. Two losing presidential candidates in Indonesia, Anies Baswedan and Ganjar Pranowo, have filed appeals demanding a revote, alleging election fraud. They criticize the Constitutional Court and President Joko Widodo for supporting winner Prabowo Subianto, who won with 58.6% of the vote. The candidates argue for the disqualification of Subianto's running mate, Gibran Rakabuming Raka, for not meeting age requirements, amidst accusations of government pressure and misuse of state resources to influence the election. Niniek Karmini and Fadlan Syam, AP News, March 27
Remittance to China through non-specified channels remain suspended for six more months. The suspension of remittances to China through non-specified channels has been extended for another six months by the Monetary Authority of Singapore (MAS). This decision aims to minimize risks for consumers sending funds to China and follows reports of remittances being frozen by Chinese authorities. This measure affects transactions not conducted through approved banks or card payment system operators, addressing concerns over frozen funds amounting to millions. Rachel Lim, Channel News Asia, March 27
N. Korean, Vietnamese party officials call for boosting bilateral ties. Senior officials from North Korea and Vietnam have agreed to enhance their cooperation, aiming to elevate their bilateral relationship to a new level. This agreement was reached during a meeting in Hanoi, highlighting both countries' interest in advancing diplomatic and strategic ties. The meeting forms part of North Korea's broader initiative to reengage with the Association of Southeast Asian Nations (ASEAN) post-COVID-19 shutdowns. Lee Minji, Yonhap News Agency, March 27
Kazakhstan: Business group strives to facilitate trade connections with China. The National Chamber of Entrepreneurs of Kazakhstan, Atameken, and China’s Committee for the Promotion of International Trade have signed a memorandum to enhance trade relations and investment between Kazakhstan and China. This agreement aims to align with government regulations and promote economic cooperation. Amid efforts to increase bilateral trade, discrepancies in trade statistics have been acknowledged, with Kazakhstan reporting lower trade turnover figures compared to China. Eurasianet, March 27
Mainland China says it will watch Taiwanese military exercises closely for signs of ‘provocation’. Beijing will closely monitor Taiwan's upcoming live-fire military exercises around Quemoy, citing concerns over provocations amid heightened tensions. The exercises aim to improve combat readiness but have sparked significant attention from China, emphasizing the fragile peace in the region. Vanessa Cai, South China Morning Post, March 27
Yen hits 34-yr low vs dollar as BOJ signals ultraeasy policy to stay. The yen dropped to a 34-year low against the U.S. dollar, with expectations that the Bank of Japan will continue its accommodative monetary policy. Despite a recent rate increase, short-term interest rates are expected to stay near zero. The finance minister has vowed to take decisive steps against the yen's excessive weakness, sparking speculation about potential market intervention. Kyodo News, March 27
Long Form
Japan-bashing Chinese unwittingly target Xi's lucky temple. In a reflection of political and cultural tensions, bottled green tea by Nongfu Spring has become the latest focal point of controversy among Chinese netizens, accused of promoting Japanese culture due to a temple depicted on its label and text perceived as favoring Japan. Unbeknownst to many critics, this temple has connections to President Xi Jinping, who frequented it for good fortune in his career. This situation highlights the irony and narrow-mindedness of the backlash, especially considering the temple's significance and the historical cultural exchanges between China and Japan that the product actually celebrates. Amidst this, the commercial success of such controversies underscores the complex landscape of Chinese social media and nationalism, where Japan-bashing has become a tool for venting frustrations and achieving commercial gain, despite sometimes leading to a reevaluation of Sino-Japanese relations. Katsuji Nakazawa, Nikkei Asia, March 28
Lithium lures South Korea closer to Kazakhstan. South Korea's quest for lithium, a critical component for its tech industry, has led it to explore deeper collaborations with Kazakhstan. While South Korea lacks the geopolitical leverage of China, Russia, or Western nations in Kazakhstan, it has made diplomatic strides, signified by a strategic partnership initiated in 2009. Kazakhstan, rich in natural resources including lithium, represents a vital opportunity for South Korea to diversify its mineral supply chains and mitigate supply chain vulnerabilities. However, Kazakhstan's underdeveloped lithium production, influenced by historical concealment and lack of investment, along with domestic legal challenges, poses risks to South Korean investors. Furthermore, competition with Russia, which has a strategic interest in Kazakhstan's resources, complicates Seoul's efforts. Despite these obstacles, the potential for mutual benefit in resource extraction exists, provided South Korea navigates the geopolitical landscape wisely. Anthony Rinna, East Asia Forum, March 28
Why ASEAN is South Korea’s lifeline for mediation with the North. As South Korea grapples with escalating tensions with North Korea, ASEAN emerges as a crucial mediator for Seoul, offering a path to dialogue and peace. President Yoon Suk-yeol's administration, facing the closed door of North Korea's peaceful reunification and low domestic approval, finds traditional allies and military deterrence insufficient to ensure stability. Southeast Asia, with its history of peacebuilding and dialogue, offers viable alternatives for mediation. Countries like Indonesia, Thailand, Singapore, and Vietnam, all with unique positions and diplomatic relations with North Korea, could facilitate discussions. Vietnam, in particular, stands out as South Korea's key partner in ASEAN, offering a bridge to dialogue with the North. Seoul's focus on leveraging ASEAN's diplomatic channels underscores the region's growing importance in addressing the Korean Peninsula's security challenges. Le Nhu Mai, East Asia Forum, March 28
China Infrastructure Pledges Falling Short in Southeast Asia, Report Claims. A report from the Lowy Institute highlights a significant gap between China's infrastructure funding commitments to Southeast Asia, exceeding $50 billion, and actual delivery, casting a shadow over the Belt and Road Initiative (BRI) in the region. Despite this shortfall, China remains the largest infrastructure funder in Southeast Asia, involved in 24 out of 34 megaprojects. However, challenges such as poor planning, the global shift towards clean energy, and political changes in recipient countries have led to stagnation and failure in several projects. This discrepancy shows the complexities of implementing large-scale infrastructure projects across diverse political and economic landscapes. Sebastian Strangio, The Diplomat, March 28
Now That It’s a Reality, Does Taiwan Still Back Extended Military Conscription? Taiwan's decision to extend military conscription to one year, reversing a previous reduction, reflects a pivot in the island's defense policy under President Tsai Ing-wen. This change, aimed at bolstering Taiwan's combat readiness amid declining recruitment and a low birthrate, has completed its first phase with the inaugural batch of conscripts finishing basic training. Despite the potential political risks and impact on the youth, public support for the policy remains strong, underscoring a collective commitment to national security in the face of growing regional tensions. This move is seen as essential for enhancing the military's capabilities and ensuring the country's long-term defense posture. Kuan-chen Lee, The Diplomat, March 28