China
China hopes 2026 will be a ‘landmark year’ for its relationship with the US. China’s Foreign Minister Wang Yi said Beijing wants 2026 to become a landmark year in U.S. ties ahead of a Trump-Xi summit in March. He urged both sides to prepare, manage disputes, and remove distractions, calling on Washington to meet China halfway. Wang cited tariff conflict and an October trade truce. He said China will uphold the United Nations and urged an end to fighting in Iran and renewed negotiations. Huizhong Wu, Associated Press, March 8
China's Xi says the military must be politically loyal, root out corruption. Xi Jinping said the armed forces must stay loyal to the Communist Party and continue rooting out corruption. He said there is no place for corruption to hide and called for the fight to move forward. The remarks came during the annual political meetings, days after two senior officials were absent from the opening session as a purge continued. Engen Tham, Reuters, March 7
China says US talks vital as Trump targets Beijing's key partners. Foreign Minister Wang Yi said dialogue with the United States is vital to prevent dangerous misjudgments ahead of an expected Xi Jinping-Donald Trump summit this month. He said the agenda for high-level exchanges is on the table and called for conditions that can manage differences. Wang also urged an immediate halt to military operations against Iran and said force cannot resolve disputes. Liz Lee and Xiuhao Chen, Reuters, March 8
China to promote use of AI in creating new jobs, empowering traditional ones: minister of human resources and social security. China’s human resources ministry is studying measures to use artificial intelligence to create new jobs and strengthen traditional work as part of the 2026 to 2030 plan. Minister Wang Xiaoping said officials will pair technology with livelihood goals, support labor-intensive sectors, expand jobs in digital and advanced industries, adjust minimum wage rules, and provide targeted training and employment help for older workers, migrants, and vulnerable groups. Zhang Weilan, Global Times, March 7
China warns of fresh chip crisis as Nexperia dispute flares up. China’s commerce ministry warned the Netherlands could bear responsibility if the Nexperia dispute triggers another chip supply shock. The warning followed claims by Nexperia’s China unit that Dutch headquarters disabled office accounts for all employees in China, disrupting operations. The dispute is the latest flare-up in a months-long conflict that had at one point affected the global automotive chip supply chain. Ben Jiang, South China Morning Post, March 8
Beijing signals high hopes for South China Sea ‘golden rules’ by end of year. China said negotiations with Asean on a South China Sea Code of Conduct have entered a critical phase and could conclude this year. Foreign Minister Wang Yi said the code could become “golden rules” for managing differences, building trust, and promoting cooperation. Beijing claims most of the sea and remains in disputes with the Philippines, Malaysia, Vietnam, and Brunei over islands, rocks, and nearby waters. Alyssa Chen, South China Morning Post, March 8
Japan
Japan asks U.S. not to impose higher tariffs before Takaichi’s visit. Industry minister Ryosei Akazawa urged Washington not to raise tariffs above the terms agreed upon last July before Prime Minister Sanae Takaichi’s March 19 White House visit. After meeting Commerce Secretary Howard Lutnick, he said both sides discussed new projects under Japan’s $550 billion U.S. investment pledge, including energy, critical minerals, and artificial intelligence. Tokyo wants Japanese imports treated under the bilateral deal. Kyodo News, March 7
Tokyo told national oil reserve site to prepare for release amid Iran crisis, Japan lawmaker says. Opposition lawmaker Akira Nagatsuma said the government told the Shibushi national oil storage base to prepare for a possible crude release after the Iran crisis disrupted Middle East supply. He said the directive came on Friday from the Agency for Natural Resources and Energy. Japan gets about 95% of its crude from the Middle East, with roughly 70% shipped through the Strait of Hormuz. The Japan Times, March 8
Japan, Canada sign strategic agreement in defense and energy as war in Mideast fuels oil concerns. Japan and Canada signed a strategic pact to deepen cooperation in defense, economic security, energy, cyber policy, and arms industry ties as the Middle East conflict raised concerns about oil supplies through the Strait of Hormuz. Sanae Takaichi and Mark Carney agreed to diversify energy resources, expand trade and investment, and start talks on a defense pact to ease military visits and joint exercises. Mari Yamaguchi, Associated Press, March 6
South Korea
U.S. unlikely to increase tariffs on South Korea, Seoul official says. South Korea’s industry minister said Washington is unlikely to raise tariffs if parliament passes legislation next week to carry out Seoul’s $350 billion U.S. investment pledge. The comment followed talks with U.S. Commerce Secretary Howard Lutnick. Donald Trump had threatened tariffs of 25% over delays in implementing the deal. South Korea’s ruling party is set to vote on the investment bill on March 12. Cynthia Kim, Reuters, March 8
Korea secures 6 mil. barrels of crude from UAE as fuel prices surge amid Iran conflict. South Korea will import more than 6 million barrels of crude from the United Arab Emirates to ease fuel-price pressure after the Iran conflict disrupted global energy markets. Presidential chief of staff Kang Hoon-sik said the move followed consultations directed by President Lee Jae Myung. Officials linked the purchase to wider efforts to stabilize domestic supply, curb price gouging, and protect households and businesses from rising gasoline and diesel costs. Kim Hyun-bin, The Korea Times, March 6
S. Korea mulls adopting oil price cap system for 1st time in 30 yrs: sources. South Korea is considering an oil price cap for the first time in nearly 30 years after the Middle East conflict pushed domestic fuel prices higher. Officials are reviewing Article 23 of the Petroleum and Alternative Fuel Business Act, which allows maximum sales prices during sharp fluctuations. President Lee Jae Myung also ordered plans by region and fuel type if a nationwide cap proves difficult. Kim Han-joo, Yonhap News Agency, March 8
Industry minister, trade chief visit U.S. to discuss Seoul-Washington tariff issues. South Korea’s industry minister and trade chief visited Washington to address tariff disputes and other pending trade issues with the United States. Industry Minister Kim Jung-kwan met Commerce Secretary Howard Lutnick and urged previously agreed tariff arrangements to be maintained. Trade Minister Yeo Han-koo met USTR Jamieson Greer and discussed non-tariff measures, a free trade agreement committee meeting, and a Section 301 petition involving Coupang. Chang Dong-woo, Yonhap News Agency, March 7
Vietnam
Vietnam fuel prices hit highest since 2022 as Middle East conflict chokes oil supply. Vietnam raised retail fuel prices on March 7 after oil-market turmoil linked to the U.S., Israeli, and Iranian conflict pushed up import costs and disrupted shipping through the Strait of Hormuz. RON 95 reached VND27,040 per liter, diesel topped VND30,000, and kerosene saw the sharpest increase. The government activated a new emergency pricing mechanism and said the March supply remains secured through reserves, local output, and imports. Phuong Dung, VnExpress, March 7
Thailand
Experts urge swift new “crisis” government. Thai economists and industry leaders urged quick cabinet formation as global conflict, climate pressure, technology shifts, low growth, ageing, and corruption strain the economy. Somkiat Tangkitvanich said public trust will depend on credible ministers and clean governance. NESDC chief Danucha Pichayanan warned growth could slip from 2% to 1.6% or 1.3% if the Iran conflict drags on, while tourism may miss its visitor target. Chairith Yonpiam, Bangkok Post, March 7
People's Party outlines nine legislative plans. The People’s Party said it will push nine legislative packages when the new House convenes, focusing on economic reform, anti-corruption, decentralization, lower electricity prices, environmental protection, education reform, civil liberties, and political change. Proposed measures include opening the power market to competition, passing climate and waste laws, improving school quality and safety, and pursuing constitutional and election law reform with support from other parties and the public. Bangkok Post, March 8
Klatham, Democrat excluded from coalition. A Bhumjaithai-led coalition is expected to control about 292 seats and include Pheu Thai, Palang Pracharath, Prachachat, and smaller parties, leaving Klatham, the Democrat Party, and Thai Ruamphalang outside government. Bhumjaithai is set to dominate the cabinet with 26 posts across 14 ministries. Anutin Charnvirakul is expected to remain the interior minister while serving as prime minister. Apinya Wipatayotin, Bangkok Post, March 8
Laos
International Monetary Fund says Laos economy stabilizing but risks remain. The IMF said Laos has stabilized after high inflation and exchange-rate pressure, helped by tighter monetary and fiscal policy since late 2024. Inflation fell from above 30% in 2023 to about 7.7% in 2025, while growth is projected near 4.5% through 2026. The fund warned that high debt, weak reserves, and financial-sector weaknesses still leave Laos exposed to external shocks. Phoudasack Vongsay, The Laotian Times, March 6
Philippines
4-day work schedule to ease oil crisis impact. Senate President Francis Escudero urged private firms to adopt a four-day onsite workweek or staggered hours to reduce fuel use and ease pressure from rising oil prices linked to the Middle East war. He said flexible work can cut transport demand, lower operating costs, and reduce traffic losses in Metro Manila. The Palace already ordered temporary compressed schedules in some executive offices starting March 9. Bernadette E. Tamayo, The Manila Times, March 8
Marcos off to U.S. for working visit. President Ferdinand Marcos Jr. left for New York for a four-day working visit that includes addressing a special UN General Assembly session and attending the opening of the 70th Commission on the Status of Women. He will seek support for the Philippines’ bid for a UN Security Council seat for 2027 to 2028 and meet UN Secretary-General António Guterres to discuss the Middle East crisis and civilian protection. Kristina Maralit, The Manila Times, March 8
Indonesia
Indonesia stock market loses $68 billion in value amid global turmoil. The Indonesia Stock Exchange lost Rp1,160 trillion, or $68.6 billion, in market value from March 2 to 6 as the Jakarta Composite Index fell 7.85% amid volatility linked to U.S. and Israeli strikes on Iran. Trading activity weakened, with declines in transaction frequency, value, and volume. Foreign investors remained net sellers and have posted Rp7.29 trillion in outflows this year. Erta Darwati, Jakarta Globe, March 7
Fuel price hike in the cards if budget ‘can’t bear’ oil subsidy. Indonesia’s finance ministry said it could cut fuel subsidies and raise prices if the budget cannot absorb pressure from higher oil costs caused by the Middle East conflict. Finance Minister Purbaya Yudhi Sadewa said officials have mapped scenarios but made no decision. The worst-case assumption is domestic crude at $92 a barrel, above the $70 benchmark in the 2026 budget. Deni Ghifari, The Jakarta Post, March 7
Malaysia
Malaysia PM, police chief sued over calling out alleged plot. The family of former finance minister Daim Zainuddin filed suit against Prime Minister Anwar Ibrahim, the police chief, and the government over claims of a plot to topple the government. The family said the investigation targets Daim’s widow and sons and amounts to abuse of power. Police are investigating under laws against undermining parliamentary democracy, an offense punishable by up to 20 years in prison. Danial Azhar, Reuters, March 6
Taiwan
Wang Yi warns Japan on Taiwan ‘red line’, dashing hopes of ending diplomatic row. China’s foreign minister Wang Yi warned Japan not to interfere in Taiwan, calling the issue a core interest and a red line. He rejected any Japanese claim of self-defence in a Taiwan conflict and blamed Taipei’s ruling party for cross-strait tensions. The remarks kept pressure on Tokyo after Prime Minister Sanae Takaichi’s November comments on possible military intervention. Laura Zhou, South China Morning Post, March 8
Defense budget reasonable, Lai says. President William Lai defended the Executive Yuan’s NT$1.25 trillion eight-year defense budget, saying the annual cost would be about NT$156 billion and would remain lower than Japan’s and South Korea’s yearly defense spending. He said stronger defenses are needed against China. The Legislative Yuan’s Foreign Affairs and National Defense Committee is set for a tighter balance as lawmakers prepare to review the plan. Huang Cheng-chia, Li Wen-hsin and William Hetherington, Taipei Times, March 9
Sri Lanka
U.S. pressing Sri Lanka not to repatriate Iranian crew and survivors from sunken ship, memo says. The United States is urging Sri Lanka not to send back survivors from the sunk Iranian frigate Dena or crew from the auxiliary vessel Booshehr, according to an internal State Department cable. Washington said Sri Lanka should limit the use of the detainees in Iranian propaganda. Colombo said it has a humanitarian duty to assist the sailors, while the cable said Booshehr would remain in Sri Lankan custody during the conflict. Humeyra Pamuk, Reuters, March 6
Nepal
A new Nepali party led by an ex-rapper is set for a landslide win in parliamentary election. Preliminary results showed the Rastriya Swatantra Party winning 117 of 165 directly elected seats and leading in eight more after Nepal’s first parliamentary vote since last year’s uprising. Rapper-turned-politician Balendra Shah, the party’s prime ministerial candidate, helped unseat long-dominant parties and looked set to form a single-party government built on promises of development, education, healthcare, and anti-corruption. Binaj Gurubacharya, Associated Press, March 8
Kazakhstan
Shell signs new exploration deal in Kazakhstan amid legal disputes. Shell signed a geological exploration contract in Kazakhstan’s Aktobe region despite earlier saying it would pause new investment during legal disputes with the government. The Zhanaturmys site covers 1,377 square kilometers and the agreement runs through 2032. The project adds to Shell’s existing stakes in major Kazakh energy ventures as court and arbitration fights over costs, contracts, and environmental claims continue. Aliya Haidar, The Times of Central Asia, March 6
Kyrgyzstan
Middle East conflict disrupts logistics routes for deliveries to Kyrgyzstan. Fighting in the Middle East has halted cargo transit through Iran, disrupting a main route for goods to Kyrgyzstan via Bandar Abbas. Auto parts, equipment, perfumes, and other imports from the Gulf, Europe, and the United States are delayed. Exports to Turkey and Europe have also stopped. More than 30 Kyrgyz trucks are stranded in northern Iran while officials seek alternate routes with China. The Times of Central Asia, March 6
East Asia
The Iran war has put Asia on the brink of an energy panic. War between the United States, Israel, and Iran has halted Gulf energy exports and sent Brent above $100 a barrel. Asia faces the sharpest shock because Gulf producers supply much of its crude and liquefied natural gas, and the Strait of Hormuz carries most of the region’s imports in 2025. Refiners are chasing Omani and American crude, freight costs have jumped, and plants in India and other countries have cut output. LNG shortages look severe after Qatar’s main export facility went offline. China has larger stockpiles, but poorer importers such as Bangladesh, India, and Pakistan face failed tenders, fuel switching, power cuts, and lower industrial output. The Economist, March 8
China Won’t Play Security Patron for Iran. China’s refusal to aid Iran with military force reflects a view of power shaped by domestic priorities, memory of invasion, and limits on force projection in the Middle East. Beijing values Gulf stability and buys Iranian crude, but those interests do not create alliance duties on the U.S. model. Chinese influence rests on trade, finance, infrastructure, and diplomacy, not treaty guarantees. That approach gives flexibility and avoids overstretch, yet it leaves Beijing with less control when violence starts. Treating that restraint as weakness could lead Washington to target Chinese commercial interests outside China and make the rivalry wider and more dangerous. Zichen Wang, Foreign Policy, March 6
Will China Overplay Its Hand? Donald Trump and Xi Jinping are set to meet after a 2025 Busan truce that paused parts of the trade fight, but key disputes remain. Many Chinese elites read the outcome as proof that Beijing can face Washington as an equal great power. That reading overstates China’s position. The United States retains stronger alliances, wider military reach, leverage through export markets, and the central role of the dollar. Confidence in Beijing could feed pressure on Taiwan, the South China Sea, Japan, and South Korea, while clashes tied to Russia, Iran, and Latin America could deepen the strain. Rare earths, fentanyl, semiconductors, and transshipment tariffs threaten a fresh cycle of escalation. Thomas J. Christensen, Foreign Affairs, March 6
As US universities retreat from China partnerships, who is filling the academic void? Academic ties between China and the United States date to a 1978 visit by Shanghai Jiao Tong University professors that led to sister school agreements with four leading US universities, including the University of Michigan. That relationship later produced a joint institute in 2006 with degree programs in mechanical, electrical and computer engineering. Michigan ended the partnership in early 2025, citing funding, political, and security concerns. Shanghai Jiao Tong University then turned the institute into SJTU Global College and moved to build new partnerships. It also plans to launch Zhangjiang International College of Technology with international partners including Singapore’s Nanyang Technological University. Alyssa Chen, South China Morning Post, March 7
China enters the 4% growth era: Stability over speed. China set its 2026 growth target at 4.5% to 5%, the first target below 5% in more than 30 years. Li Qiang framed the change as room for structural adjustment, risk control, and reform in the first year of the 15th Five-Year Plan. Lower targets ease pressure on local governments that face property stress, debt, weak youth employment, and soft consumption. The change also signals that Beijing will not chase growth through broad stimulus. Foreign investors remain cautious as profit prospects weaken and regulation stays hard to read. Foreign direct investment has fallen for three straight years, and the government puts domestic demand, social support, and technological self-sufficiency ahead of speed. Han Yong Hong, ThinkChina, March 6
How the Iran War Could Consolidate China’s Energy Dominance. War has raised oil and gas prices and exposed China’s dependence on Gulf crude and LNG moving through the Strait of Hormuz. Yet Beijing has spent two decades cutting that risk through electrification, domestic power generation, and large oil storage. More than 30 percent of final energy use comes from electricity, over half of cars sold are electric, and coal, renewables, and nuclear power give China room to absorb fuel shocks. The crisis can also push other importers to accept deeper reliance on Chinese solar, wind, batteries, and critical minerals as the hydrocarbon supply looks less secure. Jason Bordoff and Erica Downs, Foreign Policy, March 6
Navigating uncertainty in US-ROK economic ties. The Supreme Court ruling against tariffs imposed under the International Emergency Economic Powers Act has not removed uncertainty from US South Korea economic ties. Seoul will resist reopening the trade and investment framework tied to lower tariffs, shipbuilding, nuclear submarine cooperation, and a $350 billion investment pledge. Donald Trump can use Section 122, Section 301, or Section 232 to impose new tariffs, which keeps markets and governments uncertain. The discussion frames collective resilience against Chinese coercion as a core task, with critical minerals at the center. A Trump-Xi bargain could ease pressure on US firms while leaving South Korea open to Chinese coercion over shipbuilding, submarines, or mineral supply. Dukgeun Ahn, Victor Cha, and Andrew Yeo, Brookings, March 6
US strategy pushes South Korea beyond the peninsula. The 2026 US National Defense Strategy marks a change in the South Korea-US alliance from peninsula defense toward a broader Indo-Pacific role tied to competition with China. The strategy treats South Korea as able to carry primary responsibility for deterring North Korea and casts US Forces Korea as a regional asset. It also folds South Korean industry into a collective defense industrial base through ship repair, naval maintenance, and munitions production. That opens commercial gains but binds Seoul to US regional aims and can narrow room with Beijing. South Korea now faces pressure to define how far it will support operations beyond the peninsula, including a Taiwan crisis. Donggak Heo, East Asia Forum, March 6
Southeast Asia
From Iran to Jakarta: ASEAN has to rethink dependence on foreign capital. Conflict in the Gulf has exposed a bigger risk for ASEAN markets as US law, compliance systems, and tax policy reshape global capital flows. The COINS Act and other measures do not block investment in Southeast Asia, but they raise scrutiny and pull money toward US-aligned markets and supply chains. ASEAN economies that depended on neutral foreign liquidity now face uncertainty as a structural constraint. The response is to build domestic depth through regional fund passporting, payment links, sustainable finance rules, and a broader retail investor base. India shows how domestic flows can absorb foreign selling, while Indonesia, Malaysia, and Thailand have begun reforms that can strengthen resilience. Steven Dean, Nikkei Asia, March 8
Thailand’s reform hopes washed away by the ‘blue wave’. Bhumjaithai won 193 seats in Thailand’s 500-member lower house and formed a coalition with Pheu Thai, giving Prime Minister Anutin Charnvirakul a strong base and control of key ministries. The result reflected nationalist gains from the Cambodia border crisis more than a settled conservative realignment. Constituency victories outpaced Bhumjaithai’s party list vote, while the reformist People’s Party led the party list, showing split preferences between patronage politics and national reform. A referendum result backed a constitutional amendment, but major reform goals face limits. The new government now faces weak growth, debt, ageing, industrial decline, and a likely soft line toward Myanmar’s junta within ASEAN. EAF editors, East Asia Forum, March 8
Thai election’s illusion of stability. Thailand’s new Bhumjaithai-led coalition projects order, but its base rests on provincial patronage networks rather than a restored conservative bloc. The party won 191 seats and joined with Pheu Thai and smaller parties for a House majority, yet its weak party-list result and loss of all Bangkok seats to the People’s Party show a split between local machines and national reform support. Traditional elites use electoral accommodation in place of open control, binding parties through office, patronage, and access to state resources. Legal cases against reformists, election fraud claims, slow growth, and cabinet bargaining leave the settlement exposed to new conflict. Prajak Kongkirati, East Asia Forum, March 8
As snap poll rumblings grow, Malaysia PM Anwar hobbled by internal strife and widening anti-graft controversy. Anwar Ibrahim faces strain from several fronts that could push Malaysia toward an early election. A Bangkok meeting between UMNO leaders and opposition figures raised doubts over coalition trust. DAP faces anger from its Chinese voter base and demands a decision on election timing and future coalition terms, while some leaders want a review of party roles in government. Anwar also faces backlash over his defence of MACC chief Azam Baki amid misconduct claims and calls for a royal inquiry. PKR has split after Rafizi Ramli turned into a public critic. Despite economic gains and hopes for a second term, coalition math remains fragile. Leslie Lopez, CNA, March 8
Vietnam’s Semiconductor Strategy: Between Opportunity and Strategic Constraint. Vietnam is trying to move from assembly and testing into chip design and fabrication as Hanoi backs a national plan through 2030 and 2050. Viettel has begun work on a domestic fabrication plant at Hoa Lac Hi-Tech Park, with trial operations due in 2027 and full operations near 2030. Tax cuts, research support, and a goal of 50,000 semiconductor engineers by 2030 aim to speed the transition. Vietnam brings strong electronics exports, foreign investment, and gains from China Plus One supply chains. Power shortages, weak research spending, high capital costs, and pressure from US China rivalry could block progress. Léane Noirot, Sino-Southeast Initiative, March 7
Myanmar’s “Election” Reveals Hairline Cracks in Military Rule. Myanmar’s junta used a controlled election to give the Union Solidarity and Development Party a large parliamentary majority, but the result exposed weak public consent and strains within military rule. Official figures put the party at 44 percent of ballots cast, while conflict cut the voter roll to 24.26 million and left 5.8 million votes for the USDP, or 11 percent of the population. Future bargaining over the presidency, a weak economy, armed resistance, and reliance on China leave the regime brittle and in need of constant maintenance. Ben Dunant, FULCRUM, March 6
Oceania
Leverage in the Australia-China iron ore trade. China’s Simandou mine in Guinea has stirred fears that Beijing can use new iron ore supply to pressure Canberra, but the project does not overturn Australia’s position. Guinea may lift exports by 40 to 50 million tonnes by 2027, while Australia is set to supply 934 million tonnes and China will need vast imports. Costs at Simandou remain above Pilbara levels, and lower prices would hurt Chinese domestic producers. The larger risks for Australia sit in weak productivity, limits on Chinese investment in critical minerals, and strain on the rules-based trading system. James Laurenceson, East Asia Forum, March 7