Asia Daily: November 18, 2023
News
US, Philippines sign landmark nuclear deal. The United States and the Philippines have signed a landmark agreement that will allow Washington to export nuclear technology and materials to Manila, as part of efforts to decarbonize and enhance Philippine energy independence. Initiated in November 2022, the agreement focuses on developing small modular reactors and other civilian nuclear energy infrastructure. It is a strategic move in the U.S.-Philippines partnership, aimed at integrating nuclear energy into the Philippines' power mix by 2032, while addressing climate goals and energy security concerns. Neil Jerome Morales, Reuters, November 17
Myanmar cybercrime kingpin dead, family handed over to China. Ming Xuechang, the suspected leader of a Myanmar-based cybercrime syndicate, died of a self-inflicted gunshot wound as Myanmar authorities closed in on him. His death follows China's intensified efforts to dismantle the sprawling cybercrime industry in Myanmar, which has victimized many Chinese citizens. Ming, along with three relatives, was wanted in China for crimes including fraud and detention of Chinese citizens. Following Ming's death, his son, daughter, and granddaughter were arrested in Myanmar and extradited to China. These events mark a significant development in the joint crackdown on cross-border cybercrime by China and Myanmar. Josephine Ma, South China Morning Post, November 17
New Maldives president is sworn in and vows to remove Indian troops. Mohamed Muizzu was inaugurated as the Maldives’ fifth democratically elected president, pledging to end the foreign military presence, notably Indian troops, in the archipelago. Regarded as pro-China, Muizzu's campaign focused on evicting Indian military personnel and addressing trade imbalances favoring India under his predecessor. His ascension, marked by an oath administered by Chief Justice Us Ahmed Muthasim Adnan, follows a surprise win in a presidential election considered a de facto referendum on the regional influence of China versus India in the Maldives. The extent of Indian military presence, operating under a secretive agreement, has been a source of rumors and controversy. This political change signals a potential shift in the Maldives' international relations and strategic alliances. Mohamed Sharuhan, AP News, November 17
Central Asia: Prosecutors probe for ways to improve authoritarian justice. In Xian, China, prosecutors from Shanghai Cooperation Organization member states, including most Central Asian countries, Russia, Belarus, India, and Iran, gathered to discuss enhancing authoritarian legal systems' efficiency. This forum focused on extradition improvements, state asset recovery from corruption, and joint training initiatives, particularly targeting cybercrimes, terrorism, and drug trafficking. Uzbekistan's Prosecutor General emphasized their commitment to strengthening the rule of law and crime prevention, reflecting a broader regional effort to refine legal mechanisms within authoritarian contexts. Eurasianet, November 17
Japan, China seek mutually beneficial ties through talks amid strains. Japanese Prime Minister Fumio Kishida and Chinese President Xi Jinping have agreed to foster "mutually beneficial" bilateral relations, despite existing tensions including Japan's concerns over China's import ban on its seafood. In their first face-to-face meeting in a year, discussions included Japan's release of treated radioactive water from the Fukushima Daiichi nuclear plant, a major point of contention. While Japan seeks immediate lifting of the seafood ban, China emphasizes addressing the discharge of nuclear-contaminated water. These talks highlight ongoing complexities in Japan-China relations, including unresolved issues like the detention of Japanese nationals and military activities in the Taiwan Strait. Kyodo News, November 17
Việt Nam supports reform of UN Security Council. Việt Nam is advocating for the acceleration of intergovernmental negotiations on United Nations Security Council (UNSC) reform, emphasizing the need for innovative changes to enhance representation and effectiveness. Addressing the General Assembly, Minister Counsellor Nguyễn Hoàng Nguyên of Việt Nam highlighted the urgency of expanding both permanent and non-permanent memberships, particularly for underrepresented regions like Africa and the Asia-Pacific. The proposed reforms also include conducting more public meetings and limiting the use of veto power, reflecting a global push for a more dynamic and inclusive UNSC that can better address increasing global tensions and conflicts. Vietnam News, November 17
China, Japan reaffirm 'strategic relationship' in rare leader talks. In their first face-to-face meeting in a year, Chinese President Xi Jinping and Japanese Prime Minister Fumio Kishida agreed to pursue mutually beneficial relations, focusing on shared economic interests despite existing diplomatic disputes. Key topics discussed included China's ban on Japanese seafood and the detention of a Japanese businessman in China on espionage suspicions. Xi emphasized the importance of focusing on common interests to reaffirm and redefine the strategic mutual relationship between the two countries. Channel News Asia, November 17
Hong Kong’s Roman Catholic Cardinal says he dreams of bishops from greater China praying together. Hong Kong's newly appointed Roman Catholic Cardinal, Stephen Chow, expressed his hope for bishops and faithfuls from across greater China, including Hong Kong, Macao, mainland China, and Taiwan, to pray together one day. This sentiment was shared during the historic visit of Joseph Li, the archbishop installed by China's state-controlled Catholic church, marking the first official visit by a Beijing bishop to Hong Kong. Li's visit reciprocates Chow's groundbreaking trip to Beijing earlier this year, the first by Hong Kong's bishop in nearly 30 years. The exchanges between Li and Chow are seen as symbolic gestures potentially strengthening the fragile China-Vatican relationship. Kanis Leung, AP News, November 17
European Nations Join Myanmar Genocide Case. Five European countries, including Denmark, France, Germany, the Netherlands, and Britain, along with Canada, have come together to intervene in a genocide case against Myanmar at the International Court of Justice (ICJ). This case, initiated by The Gambia in 2019, accuses Myanmar of committing genocide against the Rohingya community. The joint declaration of intervention by these countries represents a significant international collaboration in addressing the alleged genocide. Al Jazeera, November 17
Yoon Highlights Threat Posed by Russia-N. Korea Military Cooperation. South Korean President Yoon Suk Yeol emphasized the dangers of military cooperation between Russia and North Korea during meetings at the Asia-Pacific Economic Cooperation summit. According to Principal Deputy National Security Adviser Kim Tae-hyo, Yoon discussed the threat this poses to global security and explored ways to counteract such cooperation. This concern arises amid suspicions that North Korea is supplying Russia with arms for the Ukraine conflict in return for support with Pyongyang's weapons programs. Yoon's discussions also included defense industry cooperation and South Korea's bid to host the 2030 World Expo. Lee Haye-ah, Yonhap News Agency, November 17
Long Form
What Do US Indo-Pacific Allies Think of the Biden-Xi Summit? The recent summit between Chinese President Xi Jinping and U.S. President Joe Biden, held on the sidelines of the APEC Economic Leaders’ Meeting in San Francisco, has garnered significant attention from governments worldwide, particularly U.S. allies in the Indo-Pacific region. This meeting, marking their first in-person interaction since November 2022, aimed to reframe the U.S.-China relationship to avoid escalation and manage competition responsibly. Biden described the four-hour meeting as "constructive and productive," while China's foreign minister termed the talks as "strategic" and "historic." The perspectives of key U.S. allies such as Australia, Japan, the Philippines, South Korea, and Taiwan are crucial in understanding the regional implications of this high-stakes summit. Shannon Tiezzi, The Diplomat, November 17
China’s Heavy Economic Legacy of State Ownership and Central Planning. China's stagnating economic growth, characterized by waning productivity and declining growth rates, cannot be solely attributed to the pandemic or demographic shifts. It also stems from an unfinished reform agenda, deeply rooted in its history as a centrally planned economy with widespread state ownership. This situation draws a parallel with the transition from communism to capitalism in Eastern Europe and the former Soviet Union. The ongoing tensions between China and the United States further highlight the need to understand the causes of China's economic slowdown, especially considering its unique economic history compared to other market economies in East Asia. Itzhak Goldberg, The Diplomat, November 17
Innovation Justifies Optimism in China's Long-term Economic Outlook. Despite the current negative sentiment towards China's economic model, there is a strong case for optimism based on the country's dedication to innovation. Over the past decade, China has transformed from a laggard in technology to a leader in several advanced fields, including electric vehicles, artificial intelligence, and semiconductors. This shift is evident in China's rapid rise in the Global Innovation Index and its growing international competitiveness. The focus on innovation is central to China's strategy to sustain its economic trajectory and avoid the middle-income trap. This approach, emphasizing productivity and efficiency, is expected to support China's transformation into a more sustainable, productivity-led economy. For investors, China's innovation-driven growth presents numerous dynamic and high-growth opportunities, making it a relevant market despite current challenges. William Bratton, Nikkei Asia, November 17
Japan Brings Bangladesh into the Folds of New Security Framework. Japan's recent inclusion of Bangladesh in its 'Official Security Assistance (OSA)' framework marks a significant shift in regional security dynamics. Announced by Japanese Ambassador to Bangladesh, Iwama Kiminori, this move aligns Dhaka within a group of 'like-minded' countries receiving military aid from Japan. The OSA, effective since April 2023, also includes Malaysia, the Philippines, and Fiji, reflecting Tokyo's ambition to be a more active geopolitical actor in the region. This strategic decision by Japan is seen as a balancing act in the face of China's growing influence in Asia, particularly considering Bangladesh's warm relations and significant arms purchases from China. The move underscores Japan's broader geopolitical interests, aligning with the concerns of the United States and the Quad about China’s influence in the Pacific Islands. Additionally, it reflects Japan's commitment to establishing a regional hold in South Asia, particularly in light of the rising tensions between the United States and Bangladesh. Asif Muztaba Hassan, East Asia Forum, November 18