China
Chinese vice-premier stresses shared duty in Hong Kong’s executive-led governance. Vice-Premier Ding Xuexiang told Hong Kong and Macau CPPCC members that executive-led governance requires support from the legislature, judiciary, and society. He urged the chief executive and government to strengthen leadership and coordination so Hong Kong aligns with China’s 15th five-year plan and deepens mainland integration. Beijing also wants higher governance efficiency, confidence amid economic challenges, and vigilance on national security risks. Matthew Cheng, South China Morning Post, March 6.
China targets lowest growth range since 1991 in realistic move as pressures rise. China set a 2026 GDP growth target of 4.5% to 5%, its lowest range since 1991, as domestic headwinds and external pressure persist. Premier Li Qiang said stronger growth remains the aim, where conditions allow, and linked policy to doubling 2020 per capita GDP. The target leaves room for structural reforms, risk control, and high-quality development over stimulus in the 15th plan period. Jane Cai, South China Morning Post, March 5
China boosts diplomatic budget by 9.3% as US leaves “fiscal void”. China proposed a 9.3% rise in its 2026 diplomatic budget to 70.975 billion yuan, the largest increase in three years. The budget, submitted to the National People’s Congress, funds expanded international financial and economic cooperation and work on Beijing’s global development, security, and governance initiatives, including Belt and Road projects. The increase is higher than the 7% rise in defence spending as instability spreads. Dewey Sim, South China Morning Post, March 5
Nvidia halts China-bound H200 output, shifts TSMC capacity to Vera Rubin, FT reports. Nvidia has stopped production of H200 chips meant for China and shifted TSMC capacity to its next-generation Vera Rubin hardware, the Financial Times reported, citing two people with knowledge of the matter. Nvidia said it received U.S. licenses to ship small amounts of H200 chips, while a Commerce Department official said none had been sold to Chinese customers. Shivani Tanna, Reuters, March 5
China boosts defence spending 7% in drive to modernise by 2035. China will raise defence spending 7% in 2026 to 1.91 trillion yuan, the slowest rise since 2021, above its 4.5% to 5% growth goal. Premier Li Qiang called for improved combat readiness and advanced capabilities under Xi Jinping’s command. Analysts linked the pace to a graft purge that has thinned top ranks. Beijing vowed to oppose Taiwan independence and external interference. Greg Torode and Ben Blanchard, Reuters, March 5
Japan
Tokyo stocks rise, Nikkei up 4%, on news of U.S.-Iran cease-fire efforts. Tokyo shares gained after reports that Iran sought a cease-fire with the United States eased risk aversion tied to strikes on Iran. The Nikkei closed up 1.90% at 55,278.06, while Topix rose 1.90% to 3,702.67. The dollar traded near 157 yen as safe-haven demand eased. Ten-year JGB yields rose to 2.155% as bonds sold off, while mining, oil and banks led gains. Kyodo News, March 5.
LDP drops proposal to conduct fiscal 2026 budget deliberations on Saturday. Japan’s Liberal Democratic Party withdrew a plan to hold a Saturday question-and-answer session on the fiscal 2026 budget after opposition parties criticised the weekend debate. The LDP aims for a Lower House vote on March 13. The Budget Committee will hold intensive talks on Monday with Prime Minister Sanae Takaichi present. Regional public hearings will take place on Sunday in Iwate and Kagoshima, a first for Sunday. The Japan Times, March 5.
South Korea
Supreme Court to rule on ruling party lawmaker’s possible loss of seat Thursday. South Korea’s Supreme Court will hold a sentencing hearing next Thursday at 11:15 a.m. for Democratic Party lawmaker Yang Moon-seok on fraud and election law violations. An appeals court upheld an 18-month prison term suspended for three years and a 1.5 million won election law fine. A final fine of at least 1 million won would strip his seat. Yang is accused of a fraudulent 2021 loan and underreporting his apartment value in 2024 filings. Yoo Cheong-mo, Yonhap News Agency, March 6
Rival parties agree to set up new state-run entity specialized in implementing U.S. investment pledge. The Democratic Party and People Power Party agreed to create a new state-run corporation to implement South Korea’s $350 billion U.S. investment pledge under a bilateral trade deal. Lawmakers said the government will provide the paid-in capital of 2 trillion won and fund operations. The entity will have up to 50 employees and a three-member board, with directors required to have 10 years of experience in finance or strategic industries. The move follows tariff pressure from Washington. Yi Wonju, Yonhap News Agency, March 5
Thailand
Anutin collects MP certificate, pledges urgent action on all fronts. Anutin Charnvirakul led Bhumjaithai party-list MPs to the Election Commission to collect certificates confirming their election to the House. He tapped his certificate against his head three times to mark duty and public trust. He said MPs will register together at parliament and urged calm amid political tensions. He said every issue is urgent, with Middle East unrest requiring plans to protect Thais and limit impacts. The Nation, March 5
Thaksin’s family prepares to discuss parole arrangements. Paetongtarn Shinawatra said Thaksin Shinawatra is in good health after a visit to Klongprem Central Prison with her husband and lawyer Winyat Chatmontri. The family plans talks on parole arrangements, including guarantor details and where he would stay. Winyat said the legal team is following the Corrections Act rules and expects a review this month, with May 9 cited as the release date. Bangkok Post, March 5
EC answers police ballot probe queries. Thailand’s Election Commission submitted written replies to 30 police questions tied to claims that observers photographed ballots and tried to decode QR codes and barcodes during the Feb 22 re-poll in Bangkok’s Khan Na Yao district. EC deputy secretary-general Kanchit Charoenin filed a complaint against six named individuals. Civil groups warned ballot codes could allow vote tracing. Former EC member Somchai Srisutthiyakorn urged a court review. Bangkok Post, March 6
Laos
Fuel prices surge in Laos as Middle East conflict pushes up global oil costs. Retail fuel prices in Laos rose on March 6 after oil-market turmoil tied to the Iran conflict. Special gasoline increased LAK 3,150 per litre, regular gasoline LAK 3,810, and diesel LAK 7,380, far above normal adjustments. Queues formed in Vientiane as drivers sought tanks. Officials warned against hoarding and ordered daily import and supply reports. The Strait of Hormuz handles one-fifth of oil shipments. Laos imports most fuel from Thailand. Namfon Chanthavong, The Laotian Times, March 6
Cambodia
Cambodia, Singapore set $10 billion trade target. Senate President Hun Sen and Singapore ambassador Teo Lay Cheng agreed to raise annual bilateral trade to $10 billion. Trade reached $1.4 billion in 2025, up 56% from the prior year, making Singapore Cambodia’s sixth-largest partner. Hun Sen urged deeper political and economic ties. Teo met Prime Minister Hun Manet, who cited investment, education, and training sectors. Imports from Singapore rose to $1.3 billion, while exports fell to $65 million. Meng Seavmey, Cambodianess, March 5
Philippines
Philippine resupply mission data leaked to Chinese intelligence, security official says. The Philippine National Security Council said information on resupply missions in the South China Sea was compromised and passed to Chinese intelligence. Spokesperson Cornelio Valencia called the breach alarming and said transmission channels were shut. Three Filipinos were apprehended, with more suspects possible, officials said. One suspect described obtaining deployment and rotation details through a Philippine Coast Guard contact. China rejected the accusation. Karen Lema, Reuters, March 5
House panel orders VP Duterte to answer impeach complaints. The House Committee on Justice served Vice President Sara Duterte notice to answer two impeachment complaints deemed sufficient in form and substance. She must file a verified answer within 10 days or face a general denial. Lawyer Michael Poa confirmed receipt. The panel has not ruled on the grounds for hearings. Four complaints were filed last month. One was barred by the one-year rule, one was withdrawn, and two cite confidential funds. Reina C. Tolentino, The Manila Times, March 5
Indonesia
Prabowo, Pakistan PM plan Tehran visit to curb Middle East tensions. President Prabowo Subianto and Pakistan Prime Minister Shehbaz Sharif discussed a joint visit to Tehran to urge restraint after U.S.-Israeli attacks on Iran. Jimly Asshiddiqie said Prabowo raised the plan during a meeting with Islamic clerics at the presidential palace. The aim is to prevent escalation, not to seek Iranian acceptance of Ayatollah Ali Khamenei’s killing. Sharif called the call productive and agreed on coordination for peace and stability. ANTARA News, March 6.
Prabowo vows Indonesia will quit BoP if Palestine goal ignored. President Prabowo Subianto told more than 160 Islamic clerics that Indonesia will withdraw from the U.S.-initiated Gaza Board of Peace if it stops pursuing an independent Palestinian state. MUI deputy chair Cholil Nafis said Prabowo intends to use Indonesia’s role to advance Palestinian independence. Nafis said the meeting did not address the Iran war, and he called the BoP ineffective, urging focus on the OIC and the UN. ANTARA News, March 6
Malaysia
Partner in Malaysia’s ruling bloc says it is reviewing ties as rifts deepen over graft scandal. Democratic Action Party disciplinary chief Tony Pua said the party may reassess coalition arrangements before the next election as anger grows over alleged misconduct at the Malaysian Anti-Corruption Commission. The government formed a committee to probe claims involving chief commissioner Azam Baki, while DAP calls for a royal commission of inquiry. Lawmakers warned the issue could hurt the bloc, with snap polls discussed for July. Danial Azhar, Reuters, March 6
Malaysia posts record RM426.7b approved investments in 2025, Anwar hails global confidence in reform agenda. Prime Minister Anwar Ibrahim said Malaysia recorded RM426.7 billion in approved investments in 2025, up 11% from 2024, across 8,390 projects that could create 244,902 jobs. Domestic investment totalled RM219.6 billion, or 51.5% of the total. Foreign investment rose 20.9% to RM207.1 billion. Anwar said MITI and MIDA will focus on realisation, jobs, and technology transfer. Malay Mail, March 6
Taiwan
Chinese military flights around Taiwan fall, Trump-Xi meeting may be factor. Taiwan data showed a steep drop in Chinese air force activity around the island, with no flights reported since Feb. 27. Officials and researchers said the pause departs from the near-daily pattern used to pressure Taipei. Two Taiwan officials said Beijing may be seeking a calmer atmosphere before an anticipated Trump-Xi meeting. Analysts pointed to China’s military corruption purge and command changes, while naval and coast guard activity continued. Yimou Lee, Reuters, March 5
U.S. Senate committee approves U.S.-Taiwan space assistance bill. A U.S. Senate committee approved the Taiwan and American Space Assistance Act to expand cooperation between Taiwan’s space agency and NASA. The bill creates a channel for NASA personnel exchanges with TASA and supports joint work on satellite development, space exploration, and atmospheric and weather programs. The measure moves to the full Senate, with a House companion bill in process, before it can take effect. Chung Yu-chen and James Thompson, Focus Taiwan, March 5
KMT proposes NT$350 billion special budget to fund U.S. arms sales. Taiwan’s KMT caucus will sponsor a NT$350 billion special defence budget to fund eight U.S. arms sales announced in December, worth US$11.1 billion. Items include HIMARS, Javelin and TOW missiles, Altius drones, M109A7 howitzers, C5ISR systems, Harpoon support, and helicopter parts. The caucus rejected the Cabinet’s NT$1.25 trillion package and called for phased procurement. It would require a budget for follow-on packages. Sean Lin, Focus Taiwan, March 5
Nepal
Polls close in Nepal’s general election as voters seek change after youth-led protests. Nepal’s general election closed with counting set to begin at many booths after voting ended. The poll follows September protests and a crackdown that killed 77 people and forced the prime minister to resign. Turnout passed 50% by mid-afternoon. Voters focused on jobs, corruption, and governance, as Rastriya Swatantra Party candidate Balendra Shah challenged long-dominant parties under a mixed-seat system. Gopal Sharma, Reuters, March 5
Sri Lanka
Sri Lanka offloads 208 crew members from second Iranian ship a day after U.S. strike sinks frigate. Sri Lanka began offloading 208 crew members from a second Iranian vessel near Colombo after securing access to the ship. President Anura Kumara Dissanayake framed the move as a humanitarian duty and said some crew will stay aboard to help sail it to Trincomalee. The action followed a U.S. submarine strike that sank the Iranian frigate IRIS Dena, leaving 87 dead and 10 missing. Uditha Jayasinghe, Reuters, March 5
Sri Lanka says it is trying to safeguard lives on another Iranian ship off its coast. Sri Lanka said it is working to safeguard lives aboard another Iranian vessel located in its economic zone beyond territorial waters, cabinet spokesperson Nalinda Jayatissa said. The statement came as Colombo faced fallout from the Iran war in nearby seas. Sri Lanka has dealt with Iranian ships off its coast since a U.S. submarine attack sank an Iranian warship near the island. Uditha Jayasinghe and Sakshi Dayal, Reuters, March 5
Tajikistan
Government report paints bleak picture for Tajik households. Key Indicators of the Household Budget Survey, based on 3,000 households, show Tajik households near poverty. Average household size fell to 5.7 members in 2024 from 6.4 in 2017, with about one in seven members working abroad. Only one in seven members holds a paid job in Tajikistan. Per-member income averaged 1,082 somoni per month, while spending averaged 1,110, with over half spent on food. Eurasianet, March 5
East Asia
Iran war set to test the limits of Asia's energy resilience. Strikes on Iran on Feb. 28 have left tanker traffic through the Strait of Hormuz near a halt, threatening an energy shock after days of disruption. Asia takes close to 80 percent of the 19 million barrels per day of Persian Gulf crude that moves through the strait, while missiles and drones raise navigational risk and shrink marine insurance capacity. QatarEnergy has suspended LNG production, and Iraq has begun shutting in crude as storage fills. Qatar and the United Arab Emirates together hold more than one-fifth of global LNG capacity, with three-quarters tied to Asian contracts. Strategic reserves exist in Japan, South Korea, Australia, New Zealand, and China, but most Asian economies rely on four to six weeks of commercial stocks. These tools fit short shocks, not a long cutoff. Vandana Hari, Nikkei Asia, March 5
Why China Won’t Help Iran. China is watching U.S. and Israeli strikes on Iran but seeks distance from the conflict despite energy ties. Middle East oil supplied over 55 percent of China’s imports in 2025, with about 13 percent from Iran, and shipments pass through the Strait of Hormuz. Beijing has grown disillusioned with Tehran since Oct. 7, 2023, citing weak deterrence, proxy losses, poor governance, and a pattern of negotiation with Washington. The 2021 25 year cooperation pact produced few projects, and China shows openness to leadership change if oil flows and trade interests hold. Beijing pressures Iran to keep Hormuz open, leans on reserves and alternative suppliers such as Russia, and weighs support under a prolonged war that threatens energy shipments and China’s credibility. Yun Sun, Foreign Affairs, March 5
On Iran, China Cares About the Region More Than the Regime. China’s Middle East strategy centers on protecting economic, energy, and technology interests over preserving Iran’s Islamic Republic. China buys discounted Iranian oil and trades with Tehran, yet Iran supplies a small share of China’s oil imports, while China depends on Gulf producers and sea lanes such as the Strait of Hormuz and Bab el-Mandeb. Beijing avoids military risk, relies on evacuations, supply diversification, and bilateral deals, and uses diplomacy to contrast itself with the United States and Israel. China works with governments across ideologies, as shown by its approach to Syria and Egypt after the leadership change. The main trigger for sharp pushback would be U.S. pressure designed to push China out of regional oil, trade routes, or technology markets, with economic retaliation favored over force. Aaron Glasserman, Foreign Policy, March 5
China’s first railway project in the EU is open at last. The final stretch of the 350km Budapest to Belgrade rail link opened on Feb. 27, marking the first China-backed railway in use inside the European Union. Announced in 2013 as a Belt and Road showcase, the upgrade aimed to speed freight and signal benefits for China-friendly partners, yet years of delay and EU procurement concerns dulled the message. A freight departure from Budapest drew little ceremony, while passenger service could cut the trip from eight hours to three or four if tests pass. Hungary financed its section with a $1.9bn 20-year Chinese loan kept secret, feeding corruption claims ahead of April 12 elections. In Serbia, a station canopy collapsed in Novi Sad killed 16 and fueled protests. Links to the Piraeus corridor remain uneven, limiting trade impact. The Economist, March 5
Peace as a Technology of War: Taiwan and the Politics of Threat. Peace and war operate as a binary that narrows debate while enabling escalation around Taiwan. A triangular structure of victim, protector, and aggressor sustains this dynamic because each role gains legitimacy and material benefit from ongoing threat. The victim role can convert governance weakness into national security urgency and cast dissent as disloyalty. The protector role turns fear into leverage through arms transfers, economic conditions, technology alignment, and investment changes, treating peace as an industry that manages insecurity. Think tanks, media, and academia help convert ambiguity into imminence, which pressures the alleged aggressor toward the assigned role and deepens uncertainty that fuels further escalation. Chih-yu Shih, U.S.-China Perception Monitor, March 5
Southeast Asia
Enlarging the “Gong” for a Bigger Boom: Vietnam and Strategic Autonomy. Vietnam declared foreign affairs a “core and regular task” and elevated adaptive diplomacy alongside defence and security ahead of the 14th Communist Party of Vietnam National Congress. Leaders frame policy around strategic autonomy, built on integration, multilateralism, and diversified ties, with comprehensive strategic partnerships doubling under General Secretary To Lam. Autonomy depends on domestic capacity in energy security, infrastructure finance, and private firms that can compete in global value chains. PDP8 targets 150 GW by 2030 and 900 GW by 2050, but EVN subsidy strain has slowed private renewable investment and nuclear plans face delays. Domestic funding has backed airports and expressways, yet financing for a $67 billion high-speed rail line remains unsettled. Nicholas Chapman, FULCRUM, March 5
South Asia
A landslide election victory is only the first test for Bangladesh’s BNP. Bangladesh’s February 2026 election gave the Bangladesh Nationalist Party 209 of 297 seats after Sheikh Hasina’s 2024 ouster and an interim government led by Muhammad Yunus. Voters placed Tarique Rahman at the center of power after his 2025 return from exile and linked his leadership to the legacies of Ziaur Rahman and Khaleda Zia. Jamaat-e-Islami gained youth traction in campus politics yet struggled with broader voters amid shrine attacks and minority violence that strengthened demand for pluralism. The BNP now faces pressure to deliver reforms, manage justice processes without politicizing courts, resolve constitutional design disputes, address a fragile economy, and balance China, India, and the United States. Shafi Md Mostofa, East Asia Forum, March 5