Asia Daily: November 1, 2023
News
Singapore defense minister calls on China to take the lead in reducing regional tensions. Singapore's defense minister Ng Eng Hen has urged China to take a leadership role in easing tensions and promoting stability within the region. This appeal emphasizes the significance of collaborative efforts and responsible actions in maintaining peace and security in the Asia-Pacific. The call also underscores Singapore’s advocacy for constructive dialogue and cooperation in addressing regional challenges and disputes. Ken Moritsugu, AP News, October 31
Two killed in anti-government protest in Bangladesh. In Bangladesh, two individuals have been killed during an anti-government protest. The demonstrations have intensified, revealing the deepening political unrest and discontent among the population. This incident adds to the ongoing challenges that the government faces in maintaining order and addressing the grievances of its citizens. Ruma Paul, Reuters, October 31
Japan "on standby" to take all possible steps amid yen decline. Japan is preparing to take comprehensive measures in response to the declining yen. Officials have signaled their readiness to act decisively to manage the economic impact of currency fluctuations, indicating a proactive approach to stabilize the market and mitigate potential financial risks. Kyodo News, October 31
Senior Chinese official meets Myanmar leader for security talks as fighting rages in frontier area. Chinese State Council member and Minister of Public Security Wang Xiaohong has met with the Myanmar leader to engage in security discussions amidst ongoing conflict in the frontier areas. The talks reflect China’s active role and interest in the stabilization of the border regions, which have been affected by violent clashes and instability. These diplomatic efforts underscore the complexities of the security situation and the importance of bilateral cooperation in seeking resolutions. Grant Peck, AP News, October 31
Xi Jinping says preventing, resolving China's financial risks are 'eternal theme' for Beijing. Chinese President Xi Jinping has emphasized that preventing and resolving financial risks remains an everlasting priority for Beijing. This assertion reflects the government's continuous focus on securing economic stability and sustainability. Xi's remarks underscore the leadership’s vigilance towards potential financial vulnerabilities and their commitment to proactive risk management and economic governance. Ji Siqi and Frank Tang, South China Morning Post, October 31
Myanmar seeking to repatriate Rohingya refugees from Bangladesh. Myanmar is making efforts to repatriate Rohingya refugees currently residing in Bangladesh. This initiative indicates a move towards resolving the humanitarian crisis involving the Rohingya, a persecuted minority in Myanmar. However, the success of these repatriation efforts will depend on various factors, including the assurance of safety and rights for the returning refugees. Al Jazeera, October 31
PH, China wrangle over shoal 'incursion'. The Philippines and China are engaged in a diplomatic disagreement over alleged territorial incursions near the Scarborough Shoal in the South China Sea. This dispute underscores the ongoing territorial contentions between the two nations in the contested waters. Such incidents contribute to the complexities of navigating peace, stability, and cooperative relations within the region. Franco Jose C. Baroña, The Manila Times, November 1
Thailand to waive visas for Taiwan and India to boost tourism. Thailand plans to waive visa requirements for visitors from Taiwan and India as part of a strategy to boost its tourism industry. The initiative aims to encourage more travelers from these countries to visit Thailand, fostering economic activity and recovery in the tourism sector, which has been adversely impacted by the Covid-19 pandemic. Panarat Thepgumpanat and Chayut Setboonsarng, Reuters, October 31
Seoul's budget to decrease for 1st time in 13 years in 2024. South Korea’s government budget is expected to decrease for the first time in 13 years next year. This projection is aligned with the government's fiscal strategy and considerations of economic conditions. The reduction in budget allocation reflects the government’s approach towards maintaining fiscal soundness amidst broader economic uncertainties and challenges. Yoo Cheong-mo, Yonhap News Agency, November 1
New Fund Allocated to Education Improvement in Laos. Laos has received a new fund dedicated to enhancing the quality of education in the country. The fund aims to improve educational facilities and resources, fostering a better learning environment for students. This investment illustrates a commitment to educational development, seen as a crucial aspect of national growth and societal advancement. Namfon Chanthavong, The Laotian Times, October 31
Long Form
China-U.S. Tech Rivalry Is Making It Harder to Contain AI Risks. The intense competition between the U.S. and China in artificial intelligence (AI) is exacerbating the challenge of mitigating potential AI risks. Despite significant investments in AI, both countries have allocated few resources toward ensuring AI safety. Policymakers are warned that ignoring the potentially catastrophic risks of AI could be a grave mistake. The U.S. has recently tightened export restrictions on AI chips and equipment to China, while China is focusing on technological self-sufficiency. This rivalry is leading to a regulatory "race to the bottom," making international collaboration on AI safety more difficult. By Angela Huyue Zhang for Nikkei Asia, October 31
Deciphering the Changing Contours of the China-U.S. Chip War. The U.S. has tightened export controls on China's semiconductor industry, targeting chips that power high-end AI systems and semiconductor equipment machinery. The new rules aim to plug loopholes in previous sanctions, which failed to curb domestic manufacturing in Chinese foundries. The restrictions now focus on total processing performance rather than bandwidth, affecting a variety of graphics processing units and application-specific integrated circuits. These changes have serious implications for China's ability to produce high computing machinery and could lead to a regulatory "race to the bottom." By Megha Shrivastava for The Diplomat, October 31.
Indo-Pacific Bidenomics: The Emergence of a New Economic Order. The Biden administration is intensifying its economic engagement in the Indo-Pacific, shifting focus from solely military and diplomatic strategies. Upcoming initiatives include a new economic standards framework and infrastructure projects. The Asia-Pacific Economic Cooperation (APEC) summit in San Francisco will serve as a milestone, aiming to demonstrate tangible outcomes from these efforts. The administration faces the challenge of ensuring the durability of these commitments beyond its first term. By Erin Murphy for The Diplomat, November 1
China's Crackdown on Data Ensnares 'Foreign-Related' Weather Stations. China's Ministry of State Security (MSS) has conducted investigations on over 3,000 meteorological stations across more than 20 provinces, finding hundreds transmitting data overseas in real-time. Some projects were directly funded by foreign governments and were located near sensitive areas like military bases and major grain-producing regions. The illegal collection and cross-border transmission of this data are said to endanger China's sovereignty, security, and development interests. By Nadya Yeh for The China Project, October 31
The Yield of Japan's Bad Policies. The Bank of Japan's Governor Kazuo Ueda announced a shift in the yield-curve-control policy that has been in place since 2016. The maximum "reference point" for the yield on 10-year Japanese government bonds will now be 1%, although the official target remains zero. This marks a change from previous caps and suggests a response to market signals indicating that the Bank's policies are not aligned with current economic conditions, such as rising inflation. The devaluation of the yen following the announcement indicates that markets remain skeptical of the Bank's approach. Wall Street Journal, October 31
If China Hopes to Grow Its Regional Influence, It Must Stop Blaming and Start Listening. China's aggressive posturing in the South China Sea and its confrontational rhetoric toward the Philippines are undermining its regional influence. The recent maritime incidents and near mid-air encounters between Chinese and American warplanes have escalated tensions, despite an upcoming summit between Presidents Xi Jinping and Joe Biden. China's refusal to acknowledge its role in creating these tensions has led to growing anti-Chinese sentiment in the region. Its pressure tactics have only pushed its neighbors further away, raising questions about China's proclaimed "peaceful intentions." South China Morning Post, October 31
What China Can and Should Do for Peace in the Middle East. China's unique position in the Middle East, coupled with its relationships with both Israel and Palestine, places it in a pivotal role for peacekeeping and diplomacy. The country has recently brokered a historic rapprochement between Saudi Arabia and Iran and has been trying to initiate peace talks between Israelis and Palestinians. China's influence has grown in the region, with four Middle Eastern countries—Egypt, Iran, the UAE, and Saudi Arabia—joining the China-centered BRICS grouping. China could use its influence to prevent a regional conflagration and lead peacekeeping efforts, especially given its status as the largest provider of UN peacekeeping troops among the permanent members of the UN Security Council. By Senior Colonel Zhou Bo (ret) for South China Morning Post, November 1