Asia Daily: March 6, 2025
China
U.S. says China operating ‘hacker for hire’ network available for cyberattacks worldwide. The U.S. Justice Department indicted 12 Chinese nationals, including two security officials, accusing them of running a global cyber espionage network. The group allegedly targeted government agencies, businesses, and dissidents, with hacks linked to China’s Ministry of Public Security. The U.S. Treasury and State Departments also announced sanctions on key individuals. Beijing denied the allegations, calling them politically motivated. Khushboo Razdan, Igor Patrick and Bochen Han, South China Morning Post, March 6
Hong Kong's top court quashes convictions of pro-democracy Tiananmen group. Hong Kong’s highest court overturned the convictions of three former leaders of the Hong Kong Alliance, which organized annual vigils for the 1989 Tiananmen crackdown. The judges ruled that redacted prosecution evidence deprived the defendants of a fair trial, leading to a miscarriage of justice. The activists had been convicted of failing to comply with a national security police request for information but denied being foreign agents. Jessie Pang and Anson Law, Reuters, March 6
Japan
LDP panels approve implementation bill for defense pacts. Japan’s ruling Liberal Democratic Party approved an implementation bill for reciprocal access agreements (RAAs), streamlining military partnerships with foreign allies. The bill ensures that Japan, not foreign partners, will compensate victims of crimes committed by foreign military personnel. Former Defense Minister Minoru Kihara emphasized the importance of integrating laws to facilitate future defense cooperation. Himari Semans, The Japan Times, March 5
Japan brushes aside U.S. demand to boost defense budget to 3% of GDP. Prime Minister Shigeru Ishiba rejected calls from U.S. defense nominee Elbridge Colby for Japan to increase military spending to 3% of GDP, stating that defense budgets are determined independently. Japan remains committed to its current plan of reaching 2% by 2027. Colby argued that Japan should spend more given regional threats, aligning with Trump’s broader push for higher allied defense contributions. Kyodo News, March 5
Yield on 10-yr Japan gov't bond hits 1.5%, highest since June 2009. The yield on Japan’s benchmark 10-year government bond rose to 1.5% amid speculation that the Bank of Japan will tighten monetary policy further. The increase follows comments from BOJ Deputy Governor Shinichi Uchida signaling potential rate hikes if economic conditions align with projections. In January, the BOJ raised its policy rate to 0.5%, the highest in 17 years, as inflation and wage growth trends remain in focus. Kyodo News, March 6
South Korea
South Korea and the US will begin annual military drills next week. South Korean and U.S. forces will launch the Freedom Shield exercise from March 11-20, focusing on simulated command post training and field exercises to enhance readiness against North Korea. The drills will address threats, including Pyongyang’s military ties with Russia. North Korea, which views such exercises as invasion rehearsals, has threatened escalatory measures. Analysts warn of possible missile tests in response. Hyung-jin Kim, AP News, March 5
Top diplomats of S. Korea, Poland reaffirm steadfast commitment to advancing defense cooperation. South Korean Foreign Minister Cho Tae-yul and Polish Foreign Minister Radoslaw Sikorski pledged to strengthen defense ties, including finalizing a $7 billion deal for 820 K2 tanks. The agreement follows a 2022 $12.4 billion arms deal. The ministers also condemned North Korea’s military cooperation with Russia and reiterated support for Ukraine’s reconstruction. Kim Seung-yeon, Yonhap News Agency, March 6
Top S. Korean security official expects 'good' outcome from tariff talks between Seoul, Washington. National Security Adviser Shin Won-sik expressed optimism about ongoing trade negotiations between South Korea and the U.S., emphasizing a shared commitment to a "win-win" outcome. His visit to Washington follows President Trump’s claim that South Korea imposes disproportionately high tariffs on U.S. goods. Song Sang-ho and Park Sung-min, Yonhap News Agency, March 6
Vietnam
Vietnam posts rare trade deficit in February; concerns about U.S. tariffs remain. Vietnam recorded a $1.55 billion trade deficit in February as imports surged 40%, outpacing a 25.7% export increase. Despite the monthly shortfall, Vietnam maintained a $1.47 billion surplus for January-February. Its trade surplus with the U.S. rose 16.3% to $17 billion, while its deficit with China widened 36.9% to $15.4 billion. Officials remain concerned about potential U.S. tariffs on Vietnamese exports. Phuong Nguyen, Reuters, March 6
Vietnamese PM hosts welcome ceremony for Kyrgyz counterpart. Prime Minister Phạm Minh Chính welcomed Kyrgyz Prime Minister Adylbek Kasimalyev in Hà Nội, marking the first such visit since diplomatic relations began in 1992. Both leaders discussed strengthening political and economic ties, with a focus on trade and investment. Despite growing cooperation, bilateral trade remains modest at $13.5 million in 2024. Talks also covered transport, agriculture, education, and cultural exchanges to expand future collaboration. Vietnam News, March 6
Thailand
Election Commission to skip meeting on Senate vote probe. Thailand’s Election Commission (EC) declined to attend a meeting by the Department of Special Investigation (DSI) regarding alleged collusion in the 2024 Senate election, insisting it has sole authority over the investigation. The probe follows complaints from unsuccessful candidates accusing "blue bloc" senators of vote-fixing. Deputy Prime Minister Phumtham Wechayachai withheld comment, while critics warned of political consequences if the DSI is sidelined. Mongkol Bangprapa and Aekarach Sattaburuth, Bangkok Post, March 6
Supreme admin court to rule on Yingluck’s 35bn baht appeal this year. Thailand’s Supreme Administrative Court is expected to rule on former Prime Minister Yingluck Shinawatra’s appeal against a Finance Ministry order demanding she pay 35 billion baht in compensation for damages from fraudulent rice contracts. The Central Administrative Court previously ruled the order invalid, stating Yingluck was not solely responsible. The case, under review since 2021, is set to conclude this year. The Nation, March 5
Thai business group urges action from government amid panic over U.S. trade policy. The Thai Chamber of Commerce called on the government to establish a "war room" to address concerns over potential U.S. tariffs. Officials urged Thailand to review import taxes on U.S. goods and boost imports of energy, agricultural products, and aircraft to reduce its $35.4 billion trade surplus with the U.S. The appeal follows a trade review ordered by President Trump, raising fears of economic fallout. Thanadech Staporncharnchai and Orathai Sriring, Reuters, March 6
Philippines
Philippine defense chief warns allies will fight if China restricts flights over South China Sea. Defense Secretary Gilberto Teodoro warned that the Philippines and its allies would respond if China imposed an air defense zone over the South China Sea. He cited increasing Chinese aggression as the nation’s top security threat. Recent confrontations include Chinese aircraft firing flares and flying dangerously close to Philippine, U.S., and Australian patrol planes. Teodoro emphasized regional alliances to counter China’s actions. Joeal Calupitan and Aaron Favila, AP News, March 5
Myanmar
China tightens grip on Myanmar’s Belt & Road corridor after rescuing junta. Following its role in brokering a ceasefire in Shan State, China is pushing forward with Belt and Road Initiative projects in Myanmar. Chinese Ambassador Ma Jia met with junta officials in Mandalay to discuss security for Chinese personnel and investments. The junta enacted a new law allowing Chinese security firms to protect Beijing-linked projects, including the China-Myanmar oil and gas pipelines and the Kyaukphyu deep-sea port. The Irrawaddy, March 5
Junta warplanes target civilians in Tanintharyi Region, injuring children. Myanmar’s military launched airstrikes on two villages in Tanintharyi Region, wounding seven civilians, including children. Bombs hit Kawtaw Village in Myeik Township and Winkahpaw Village in Thayetchaung Township, damaging homes but causing no fatalities. Resistance fighters from the Peacock Brothers Column confirmed the attacks and reported that victims included a 60-year-old woman and a 10-year-old boy. Ko Cho, Myanmar Now, March 5
Laos
Vientiane, St. Petersburg eye stronger trade and investment ties. Vientiane Mayor Dr. Atsaphangthong Siphandone and St. Petersburg Governor Alexander Beglov signed an MoU to enhance economic cooperation, including trade, transport, and investment. Key proposals include a new shopping mall in Laos for financial transactions, reviving air routes, and increasing Russian investments in hotels. Dr. Atsaphangthong also sought tariff exemptions for Lao exports and greater support for Lao students in Russia. Vientiane Times, March 6
Laos and UK strengthen trade ties through training on preferential trade system. The Lao Ministry of Industry and Commerce and the British Embassy co-hosted a training session on the UK’s Developing Countries Trading Scheme, aimed at maximizing Laos’ trade benefits. Officials discussed trade facilitation, tax regulations, and market access. Bilateral trade reached $38.27 million in 2024, with key Lao exports including footwear and sugar, while the UK exported whiskey and vehicles. Lao News Agency, March 5
Cambodia
Cambodia-ASEAN Business Summit 2025 kicks off with some 500 participants. Prime Minister Hun Manet opened the summit in Phnom Penh, emphasizing infrastructure, digital connectivity, and trade facilitation as key to ASEAN’s economic integration. Cambodia Chamber of Commerce President Kith Meng highlighted ASEAN’s projected $10 trillion GDP by 2030 and urged investors to consider Cambodia’s strategic position. The event attracted 191 international companies and 124 local firms. Khmer Times, March 6
Japanese delegation seeks investment opportunities in Cambodia. A Japanese business delegation representing 40 companies met with Cambodian officials to explore investment opportunities. CDC Vice President Sun Chanthol highlighted Cambodia’s political stability, investment-friendly laws, and strategic location. Key sectors for investment include infrastructure, green energy, and manufacturing. The delegation also participated in a business-matching event with local investors. Hin Pisei, The Phnom Penh Post, March 5
Malaysia
Malaysia discusses absorbing U.S. chip tariffs with companies. Malaysia is consulting semiconductor firms on how to handle potential U.S. tariffs on chip exports. Trade Minister Tengku Zafrul Aziz stated that the government has not decided on financial support but is assessing whether costs will be absorbed by companies or passed to consumers. Malaysia, home to major chipmakers like Intel and GlobalFoundries, supplied $16.2 billion worth of chips to the U.S. in 2024. Danial Azhar, Reuters, March 6
Indonesia
RI, Japan expand cooperation in startups, green industry. Indonesia and Japan are strengthening collaboration in the digital economy, AI development, and the green industry. The Japan-Indonesia Fast Track Pitch program will support startups, while Japan’s Asia Zero Emission Community initiative aims to assist Indonesia’s energy transition. Workforce capacity building will focus on manufacturing through the New MIDEC initiative, providing internships and skills certification. ANTARA News, March 5
Taiwan
Taiwan turns to companies in Ukraine for China contingency planning. Taiwan is studying how businesses in Ukraine maintained operations during war to strengthen its own resilience against potential Chinese aggression. Officials are exploring ways to integrate supermarkets into emergency supply chains and use taxi services for medical transport. A closed-door workshop in Taipei gathered security officials and diplomats to discuss stockpiling, cyber defenses, and civil preparedness. Yimou Lee, Reuters, March 5
KMT caucus to propose referendums countering DPP. The Chinese Nationalist Party (KMT) is preparing referendum proposals to challenge those introduced by the ruling Democratic Progressive Party (DPP). KMT caucus whip Fu Kun-chi stated that the party's initiatives would focus on public welfare. Discussions include a possible referendum on retaining the death penalty, though no consensus has been reached. The KMT aims to finalize proposals before the May 23 deadline. Liu Wan-lin and Jake Chung, The Taipei Times, March 6
Kazakhstan
Kazakhstan seeks cooperation with South Korea in lithium production. Kazakhstan aims to strengthen collaboration with South Korea in lithium exploration, extraction, and processing, highlighting its strategic importance for high-tech industries. Ambassador Nurgali Arystanov emphasized investment opportunities at a Seoul forum attended by major Korean firms and researchers. The Bakennoye lithium deposit in East Kazakhstan, valued at $15.7 billion, was identified as a key resource for potential joint projects. Sergey Kwan, The Times of Central Asia, March 5
Uzbekistan
Uzbekistan ratchets up drive against ‘evil’ of corruption. President Shavkat Mirziyoyev dismissed the heads of anti-corruption units in 117 ministries, accusing them of failing to ensure clean governance. He called for greater transparency and public involvement in combating corruption, which he labeled a threat to national security. Uzbekistan has made progress but still faces challenges in enforcing anti-graft measures, with whistleblower protections and high-level prosecutions remaining weak. The Times of Central Asia, March 5