Asia Daily: November 16, 2023
News
Biden, Xi to agree on steps to calm fraught U.S.-China relationship. In their first in-person meeting in a year, U.S. President Joe Biden and Chinese President Xi Jinping are poised to agree on measures to improve communication and reduce tensions between Washington and Beijing. The dialogue, focusing on preventing competition from escalating into conflict, underscores the importance both leaders place on mutual understanding to avoid misconceptions. Xi emphasized the global significance of the U.S.-China relationship and expressed confidence in overcoming bilateral differences for the benefit of both nations and the international community. This meeting signals a critical effort to stabilize a key geopolitical relationship. Takuya Karube, Kyodo News, November 15
Taiwan's opposition to unite on presidential ticket challenging frontrunner. Taiwan's two main opposition parties, the Kuomintang (KMT) and the Taiwan People's Party (TPP), have agreed to form a joint presidential ticket for the upcoming January elections. This decision comes amidst heightened tensions with China, which claims Taiwan as its territory. The current Vice President, Lai Ching-te, from the ruling Democratic Progressive Party, leads in opinion polls, prompting the opposition parties to unite. The KMT and TPP plan to use recent opinion polls to determine their presidential and vice presidential candidates. This united front reflects the strategic efforts of Taiwan's opposition to challenge the ruling party's stance against China's sovereignty claims. Ben Blanchard and Yimou Lee, Reuters, November 15
China, South Korea boast new economic exchanges to deepen collaboration in a time of geopolitical strife. China and South Korea recently convened a ministerial-level meeting to discuss bolstering economic cooperation. This inaugural meeting, led by China's National Development and Reform Commission and attended by South Korea's finance ministry officials, was held in Changchun, Jilin province. The focus was on strengthening the resilience and cohesion of industrial and supply chains between the two nations. Amid challenges like U.S. chip sanctions on China and the rapid growth of China's automobile industry, South Korea is reevaluating its competitive landscape and potential collaborative avenues. This meeting represents a significant step in rebalancing economic ties between these two major Asian economies. Mia Nulimaimaiti, South China Morning Post, November 16
North Korea vows more offensive response to US 'threats': State media. North Korea has escalated its rhetoric in response to recent U.S. defense activities in South Korea, vowing to intensify its offensive capabilities against perceived military threats. The statement, issued after a visit by U.S. Secretary of Defense Lloyd Austin to Seoul, criticizes the United States for increasing regional tensions. North Korea's armed forces have pledged to enhance their strategic deterrent capabilities in response to the U.S. and its allies' military maneuvers and the presence of U.S. strategic assets in the region. This development underscores the ongoing security challenges on the Korean Peninsula and the complex dynamics of U.S.-North Korea relations. Channel News Asia, November 15
Sri Lanka top court finds Rajapaksa brothers guilty of economic crisis. Sri Lanka's Supreme Court delivered a symbolic verdict finding the Rajapaksa brothers, including two former presidents, guilty of causing the nation's severe financial crisis. The ruling, based on petitions from academics and civil rights activists, concluded that the respondents, who have since resigned or were dismissed, violated public trust by mismanaging the economy. This landmark decision underscores the judiciary's stance on accountability in governance and marks a significant moment in Sri Lanka's ongoing struggle with economic challenges. Al Jazeera, November 15
After battle with junta, Myanmar rebels take control of border point with India. Following a confrontation with Myanmar's junta forces, rebel groups in Chin State have seized control of a key border crossing into India, located in the Indian state of Mizoram. This development occurred after the rebels overran two of the junta’s military bases near the border. As a result, nearly 5,000 Myanmar nationals who had fled to India to escape the intense conflict have now returned home, indicating a temporary easing of tensions in the area. This event marks a significant shift in the ongoing conflict between Myanmar's military junta and various rebel factions. Chanchinmawia, Reuters, November 15
Prosecutor summons Duterte over 'threats'. The Quezon City Prosecutor's Office in the Philippines has summoned former President Rodrigo Duterte to appear on Dec. 4 and 11, 2023. Duterte is required to respond to a complaint filed by ACT Teachers party-list Representative France Castro. Senior Assistant City Prosecutor Ulric Badiola has directed the former president to participate in the preliminary investigation of the case. This development marks a significant judicial action involving a high-profile political figure in the Philippines. Arlie O. Calalo, The Manila Times, November 16
CBDCs can replace cash, improve cross-border payments: IMF chief at Singapore fintech event. Kristalina Georgieva, the managing director of the International Monetary Fund (IMF), advocated for the accelerated adoption of central bank digital currencies (CBDCs) during her keynote address at the Singapore FinTech Festival. She emphasized the potential of CBDCs to replace cash, especially in island economies where distributing physical currency is costly, and to enhance financial inclusion in regions with low bank account ownership. Georgieva highlighted the need for faster progress towards implementing CBDCs, which could significantly improve the efficiency, cost, and accessibility of cross-border payments. Su-Lin Tan, South China Morning Post, November 15
Laos Plans Crackdown on Non-Compliant Crypto Firms. The Lao government has announced stringent measures against cryptocurrency firms that are not adhering to agreements and failing to make progress. This crackdown follows the approval of 15 companies for digital asset businesses, including cryptocurrency mining and trading. However, issues with fee payments have arisen, totaling $20 million. To mitigate this, the government has halved the outstanding fees, prompting companies to begin settling their dues. Prime Minister Sonexay Siphandone has warned of suspending, fining, and revoking licenses of non-compliant firms, while Electricite du Laos has ceased supplying electricity to cryptocurrency mining operations due to accumulating debts. Chono Lapuekou, Laotian Times, November 15
S. Korea, U.S. stage joint air drills with B-52H bombers over Yellow Sea. South Korea and the United States conducted joint air drills over the Yellow Sea, involving U.S. B-52H strategic bombers, according to Seoul's defense ministry. The drills, part of a broader effort to strengthen security cooperation against North Korea's military threats, saw the participation of South Korean and U.S. fighter jets. This exercise marks a continued demonstration of U.S. commitment to South Korea's defense, aligning with Secretary of Defense Lloyd Austin's recent reaffirmation of America's extended deterrence pledge. The drills are part of ongoing efforts to deploy U.S. strategic assets in the region. Chae Yun-hwan, Yonhap News Agency, November 15
Long Form
China’s Bid to Construct a ‘Maritime Community With a Shared Future’ in the South China Sea. China's strategy to extend its influence in the South China Sea encompasses security, economic, and cultural dimensions, indicating a multi-faceted approach to regional dominance. This move reflects China's ambition to establish a comprehensive maritime community, aiming to integrate various aspects of cooperation and development within the disputed waters. The initiative illustrates China's commitment to expanding its influence beyond traditional security concerns, incorporating economic and cultural ties to strengthen its position in the region. Luc Minh Tuan, The Diplomat, November 15
The Long Evolution of India-US Space Relations. India and the United States have transitioned from initial apprehension to deep collaboration in space technology. India's early space program, shaped by visionaries like Vikram Sarabhai and Homi J. Bhabha, initially sought global partnerships, including with the U.S. The U.S. supported India's ambitions, notably helping establish the Thumba Equatorial Rocket Launching Station. However, Cold War dynamics and India's non-alignment stance strained relations, especially after India's refusal to sign the NPT and its nuclear test in 1974. Recent years have seen a revival in collaboration, driven by shared interests against rising global threats and China's expansion. The U.S. now actively supports India's space endeavors in civilian, military, and economic sectors, including collaborative projects like the NISAR satellite mission with NASA and defense agreements ensuring space security and data sharing. Noiranjana Kashyap, The Diplomat, November 15
Indonesia’s new military commander faces a host of challenges. As Indonesia's military, Tentara Nasional Indonesia (TNI), prepares for a leadership transition with Admiral Yudo Margono's retirement, Lieutenant General Agus Subiyanto is set to take command after confirmation by the House of Representatives. This change has sparked public debate and calls for a review of military laws, particularly regarding service age. Challenges facing Subiyanto include the 2024 general election, budget constraints with defense spending at just 0.7% of GDP, and regional security issues, especially in Papua and the South China Sea. The DPR's scrutiny of Subiyanto's approach to these issues will be crucial in navigating the complex domestic and regional landscape. Yokie Rahmad Isjchwansyah, East Asia Forum, November 15
South Korea's retail stock trading boom is outlasting COVID. The trend of increased retail stock trading in South Korea, which gained significant momentum during the COVID-19 pandemic, shows no signs of abating post-pandemic. This enduring trend reflects a larger shift in the investment landscape, with more South Korean individuals actively participating in stock trading. The phenomenon mirrors a global pattern where retail investors are playing an increasingly influential role in stock markets, underscoring a new dynamic in financial participation and market trends. Peter S. Kim, Nikkei Asia, November 15
A Murder Case Reawakens in Malaysia. Seventeen years after the unresolved murder of Altantuya Shaariibuu, a case that has continually captivated and stirred controversy in Malaysia, is back in the public eye. The reemergence of the case, marked by a verbatim confession, underscores the persisting issues in the pursuit of justice in this high-profile matter. The lingering doubts and unresolved questions around the murder reflect broader concerns regarding the efficacy and transparency of the Malaysian justice system, especially in handling cases that attract significant public and media scrutiny. John Berthelsen, Asia Sentinel, November 15