Asia Daily: May 27, 2024
News
North Korea says its attempt to put another spy satellite into orbit has failed. North Korea's attempt to launch a second spy satellite failed when the rocket exploded midair shortly after liftoff, as reported by state media. The rocket experienced an engine problem during the first-stage flight, scattering fragments in the sea. Japan had been notified of the launch, prompting a brief missile alert. This failure follows previous unsuccessful attempts, with North Korea persisting in its efforts to establish a space-based surveillance network. Hyung-Jin Kim, Mari Yamaguchi, and Kim Tong-Hyung, AP News, May 27
PNG landslide: More than 2,000 killed, government says. A landslide in Papua New Guinea has buried over 2,000 people alive, according to a government official, a figure significantly higher than the U.N.'s estimate of 670. The disaster occurred in Yambali village, Enga province, causing extensive destruction. The remains of only five people have been recovered, with challenging conditions hampering rescue efforts. The government has formally requested international aid. The landslide also disrupted the province's main highway, complicating relief efforts. Rod McGuirk, AP News, May 27
Cyclone Remal makes landfall, floods coastal villages. The weakening tropical storm Remal caused severe flooding in coastal villages and left nearly 30 million people without power in southern Bangladesh and eastern India. At least 10 people died in Bangladesh, with 3.7 million affected and significant property damage reported. The storm, which had sustained winds of 111 km/h, prompted large-scale evacuations and disrupted transportation and port operations. Aid agencies are providing emergency support in affected areas, including Rohingya refugee camps. Julhas Alam, AP News, May 27
China doubles down on semiconductor self-sufficiency drive with US$47.5 billion Big Fund III. China has intensified its efforts towards semiconductor self-sufficiency by creating its largest-ever chip investment fund, the third phase of the China Integrated Circuit Industry Investment Fund (Big Fund III), with a registered capital of US$47.5 billion. This initiative aims to bolster the domestic semiconductor industry amidst US tech sanctions. The fund is supported by 19 equity investors, led by the Ministry of Finance. Despite sanctions, China continues to strengthen its semiconductor capabilities, particularly in producing older-generation chips. Che Pan, South China Morning Post, May 27
China, Japan, South Korea vow to work together to keep supply chains stable. China, Japan, and South Korea have pledged to enhance cooperation to maintain stable supply chains and collaborate on denuclearization of the Korean peninsula during their first trilateral summit since 2019. The leaders discussed various issues including the economy, trade, public health, and regional stability. They emphasized the importance of a free and predictable trade environment and agreed to continue communication on export controls. The summit resumed amid increasing geopolitical tensions and efforts to counteract US-led trade protectionism. Alyssa Chen, South China Morning Post, May 27
Opposition-backed Yasutomo Suzuki wins Shizuoka gubernatorial vote. Yasutomo Suzuki, the former mayor of Hamamatsu, won the Shizuoka gubernatorial election, defeating Liberal Democratic Party-backed Shinichi Omura by a 5% margin. Suzuki's victory could revive the delayed maglev train line project, opposed by his predecessor. Suzuki, endorsed by the Constitutional Democratic Party of Japan and the Democratic Party for the People, received significant support from LDP voters. He pledged to address environmental concerns and advance the maglev project. Francis Tang, The Japan Times, May 27
Megawati’s party stays mum on supporting incoming Indonesian President Prabowo. The Indonesian Democratic Party of Struggle (PDI-P) remained silent on its support for the incoming administration of Prabowo Subianto at its annual leadership meeting. Chairwoman Megawati Soekarnoputri suggested that the party's position would be decided at the 2025 congress. Although PDI-P won the most seats in the legislative election, its presidential candidate Ganjar Pranowo lost to Prabowo. Megawati emphasized preparations for upcoming local elections and hinted at maintaining the party's opposition stance. Wahyudi Soeriaatmadja, Straits Times, May 27
Thai courts hand jail terms to lawmaker and musician for royal insults. Courts in Thailand sentenced Chonthicha Jangrew, a parliamentarian with the Move Forward Party, to two years in jail for insulting the monarchy during a 2021 protest speech. Additionally, musician Chaiamorn Kaewwiboonpan received a four-year sentence for burning a portrait of King Maha Vajiralongkorn. Both individuals denied the charges and were granted bail pending appeal. The lese majeste law, which protects the monarchy from criticism, carries severe penalties. Over 272 people have been charged under this law since 2020. Straits Times, May 27
Long Form
How Japan became an LNG juggernaut. Japan has been the world’s largest importer of liquefied natural gas (LNG) since the 1980s, a position it maintained until early 2023. The country's strategy included diversifying LNG import sources, investing in upstream LNG projects, creating a flexible LNG market in Asia, and re-selling LNG to South and Southeast Asia. These measures stemmed from Japan's need to ensure energy security following the oil crises of the 1970s. Recent shifts focus on commercial motives to strengthen Japan's dominance in the global LNG market. Walter James,
, May 27'The firm' leads US efforts to ease blowback for countries targeted by China. An eight-person team at the US State Department, known as "the firm," is helping countries targeted by China's economic coercion. The team emerged during a dispute between Lithuania and China over Taiwan in 2021. Since then, over a dozen countries have sought assistance. The team's efforts include finding new markets, providing export credits, and coordinating with other US agencies. China denies using economic pressure, claiming the US is the aggressor. The team's work aims to offer quick relief and reorient global supply chains. Didi Tang, AP News, May 27
The language of opportunity: Bilingual education is on the rise in Japan. Japan is pushing for bilingualism among its next generation, with privately run schools leading the way. Recent survey results show an improvement in English proficiency among junior and senior high school students, with more than 50% achieving higher grades on Eiken proficiency tests. The government aims for this number to surpass 60% by 2027. Despite Japan's low global ranking in English proficiency, the country is seeing a surge in bilingual education, with schools dedicated to nurturing international citizens fluent in both Japanese and English. Eric Margolis, The Japan Times, May 27
Germany’s Zeitenwende: Turning Toward Central Asia? Since Russia's invasion of Ukraine in 2022, Germany has intensified its diplomatic and economic engagement with Central Asia. Bilateral contacts have increased, with high-ranking Western officials visiting the region to establish new ties. This highlights the geopolitical importance of Central Asia for Germany, especially in the context of its proximity to Russia and China. Despite these efforts, significant challenges remain in deepening these relationships. Timon Ostermeier and Eldaniz Gusseinov, The Diplomat, May 27
In the Hot Seat: To Lam’s Rise to the Vietnamese Presidency. To Lam, formerly Vietnam’s minister of public security, has been appointed as the country's president after the resignation of several top leaders due to corruption allegations. This promotion places him in a largely ceremonial role, reducing his ability to wield direct power. Lam's previous position allowed him to target rivals while avoiding repercussions, but as president, his influence will rely on his network within the Ministry of Public Security. Ian Hollinger, The Diplomat, May 27
China stock rally fuels hopes for more deals for Western banks. A recent stock market rally in China, driven by a large rescue package for the property market, has renewed optimism among Western banks for increased investment activity. Major indexes like the CSI 300, Hang Seng Index, and MSCI China have risen significantly since mid-April. Banks like UBS and Goldman Sachs have revised their market forecasts upward. Despite this positive trend, challenges remain, such as restrictions on new listings and the need for global investors to return to the market. Echo Wong, Nikkei Asia, May 27
Japan should play part in protecting Red Sea shipping. Japan faces increasing challenges as military power becomes a common tool of coercion in the Indo-Pacific. The Red Sea, a critical maritime route, has seen disruptions and threats to global shipping, impacting supply chains and creating security vulnerabilities. Japan, heavily reliant on maritime trade, must contribute to safeguarding this route to prevent the normalization of threats to the global maritime order. Alessio Patalano, Nikkei Asia, May 27
Cambodia's waterway project will deliver prosperity. The Funan Techo Integrated Water Resources Management project, launched in May 2023, will modernize Cambodia's waterways, stretching 180 kilometers from Phnom Penh to Kep province. This canal aims to boost economic prosperity and sustainable development by providing a direct trade route and reducing reliance on foreign ports. The project is expected to promote commerce and cooperation in the region. Sun Chanthol, Nikkei Asia, May 25
Taiwan's Lai should value engagement with regional partners. Taiwan President Lai Ching-te's inaugural address signaled a tougher stance towards China, calling for an end to political and military intimidation. Despite this, Lai hinted at a willingness to resume limited exchanges with China in education and tourism. He also neglected to mention the New Southbound Policy, raising concerns about Taiwan's engagement with Southeast Asia. Lai should continue public diplomacy with Southeast Asia to bolster Taiwan's economic security and resilience. Broader regional engagement is crucial for Taiwan's international prominence and security. Chiew-Ping Hoo, Nikkei Asia, May 27
Indonesia strategically shaping international cooperation through foreign aid. Indonesia is enhancing its global influence through its Indonesian AID program, which focuses on providing technical assistance and promoting economic diplomacy. Driven by economic performance and the need to navigate global challenges, the program aligns with Indonesia's financial reforms and aims to reduce transaction costs, improve resource allocation, and promote foreign direct investment. Indonesia's dual role as both a provider and recipient of aid reflects its evolving status in the global economy. Strategic management and branding, prudent funding, and careful fund distribution are essential for maximizing the program's impact. Eko Sumando, East Asia Forum, May 27
The China-US clean energy subsidy race. The US and China are engaged in a subsidy battle to support clean energy, raising concerns about global productivity. The US has deployed massive subsidies through the Inflation Reduction Act and CHIPS and Science Act, while China has challenged their legality in the WTO. Both countries' subsidies aim to enhance domestic industries, but this competition has led to market distortions and increased global economic risks. Effective subsidies should focus on positive spillovers like research, while avoiding protectionist measures that harm global trade. East Asia Forum, May 27