Asia Daily: November 28, 2023
News
Vietnam upgrades ties with Japan to highest level. Vietnam and Japan have elevated their relationship to a "comprehensive strategic partnership," a significant development announced during Vietnamese President Vo Van Thuong's visit to Tokyo. This upgrade reflects Vietnam's growing strategic importance in global supply chains and its role in attracting foreign investment amid escalating trade tensions between China and the West. Following a similar enhancement of relations with the United States, Vietnam's strengthened ties with Japan mark an important chapter in its international relations, with Japan being a major source of investment and a key trading partner. Khanh Vu, Reuters, November 27
Japan PM grilled over alleged gifts to IOC for Tokyo's Olympic bid. Prime Minister Fumio Kishida of Japan faced intense questioning in parliament regarding allegations that gifts were provided to International Olympic Committee (IOC) members during Tokyo's Olympic bid. The controversy was sparked by remarks from Ishikawa Governor Hiroshi Hase, a former lawmaker and head of the Tokyo Olympic bidding promotion committee, admitting the use of secretive government funds for these gifts. Despite his subsequent retraction, these revelations have raised ethical concerns and cast a shadow over Prime Minister Kishida's Cabinet, already facing low approval ratings amidst various scandals. Kyodo News, November 27
Malaysia to allow visa-free entry to Chinese, Indian nationals. Starting December 1, Malaysia will offer visa-free entry for up to 30 days to citizens of China and India, as announced by Prime Minister Anwar Ibrahim. This initiative, part of Malaysia's efforts to boost tourism, will be in effect until December 31, 2024. China and India rank as the fourth and fifth largest sources of tourists for Malaysia. The country witnessed 9.16 million tourist arrivals in the first half of this year, including significant numbers from China and India, reflecting a recovery from pandemic-related travel disruptions. Danial Azhar, Reuters, November 27
China’s Fujian aircraft carrier spotted in new position, bringing it a step closer to sea trial, analysts say. China's most advanced aircraft carrier, the Fujian, was recently observed moving dozens of meters from its typical berth at Jiangnan shipyard in Shanghai, a move analysts interpret as a precursor to sea trials. The Fujian, distinctive for being China's first carrier equipped with electromagnetic catapults for launching planes, marks a significant technological leap over its predNaval analyst H.I. Sutton and former PLA instructor Song Zhongping suggest that these movements and testing activities indicate the Fujian is nearing readiness for sea trials, which are essential for evaluating the ship's systems and are expected to extend over a year. Jack Lau, South China Morning Post, November 27
N. Korea says spy satellite took photos of White House, Pentagon, key U.S. naval base. North Korea claims its military spy satellite, Malligyong-1, has successfully photographed the White House, the Pentagon, and key locations at a U.S. naval base, including docked nuclear aircraft carriers. The North Korean leader, Kim Jong-un, reportedly viewed these satellite images, which were captured late Monday. The satellite, launched on the new Chollima-1 rocket, represents North Korea's latest foray into space technology, following two unsuccessful attempts earlier this year. Despite these claims, the actual photographs taken by the satellite have not been released to the public. Kim Soo-yeon, Yonhap News Agency, November 28
Hong Kong October home prices drop to lowest s ince March 2017. In October, Hong Kong's private home prices fell to their lowest level since March 2017, continuing a trend influenced by rising interest rates and subdued buyer sentiment. This decline of 2.2% from the previous month marks the sixth consecutive monthly drop, totaling a 4% decrease in the first ten months of the year. Experts, including Martin Wong of Knight Frank, anticipate further price reductions due to low market confidence. Additionally, UBS forecasts a potential 10% drop in home prices for 2024, citing the city's soaring borrowing costs as a significant factor. Clare Jim, Reuters, November 27
Moderna Begins Work on China mRNA Manufacturing Site. Moderna, the U.S.-based vaccine manufacturer, has initiated the construction of its first facility in China for manufacturing mRNA medicines, as announced on November 28. Although Moderna's COVID-19 vaccine is still awaiting approval in China, the company secured a deal with Shanghai's city government to explore opportunities for research, development, and manufacturing of mRNA medicines. This facility, situated in Shanghai, is poised to produce medicines for China's vast domestic market, the world's second-largest after India. Channel News Asia, November 27
India to remain fastest-growing major economy, but demand uneven: Reuters poll. India's economic growth, although slightly moderated, continues to be robust in the September quarter, underpinned by strong service sector activity and solid urban demand, even as global slowdown affects exports. This growth trajectory is partly driven by increased government capital expenditure, which was significantly higher in the first half of this fiscal year compared to the previous year. However, consumer demand varies across India, with rural areas experiencing a dip due to increased prices for everyday items, in contrast to the strong urban demand. Milounee Purohit and Devayani Sathyan, Reuters, November 27
Chinese academics tout alternative path to modernisation at forum. At a state-sponsored conference, Chinese academics promoted an alternative to the Western model of development, arguing it doesn't represent the future of 'political civilisation'. They advocated for China's more sustainable approach, which contrasts with the West's material-focused development. Su Changhe from Fudan University highlighted that trying to emulate the Western development path has caused global turmoil. Zhang Zhiqiang and Zhang Guanzi, both directors at the Chinese Academy of Social Sciences, emphasized that China's model ensures both economic growth and social stability, unlike the Western model which has led to conflict and polarization. Vanessa Cai, South China Morning Post, November 27
Indonesia’s 3 presidential contenders vow peaceful campaigns ahead of next year election. Indonesia's three presidential hopefuls pledged to conduct a peaceful race, focusing on avoiding religious and ethnic divisiveness in the upcoming February election. The contest, which will determine President Joko Widodo's successor, features defense minister Prabowo Subianto and former governors Anies Baswedan and Ganjar Pranowo. A runoff will occur on June 26 if no candidate achieves over 50% votes initially. Alongside the presidential election, legislative elections with 18 political parties will also take place on Feb. 14. Fadlan Syam and Niniek Karmini, AP News, November 27
Long Form
China’s Path to Power Runs Through the World's Cities. Simon Curtis and Ian Klaus analyze China's Belt and Road Initiative (BRI) as a significant urbanization project. They argue that BRI's focus on creating infrastructure and urban forms around the world is a strategic move by China to extend its influence. The authors highlight the historical role of cities in great powers' influence and suggest that the BRI could reshape the global order, emphasizing China's distinctive approach to urban development. They stress the need for Western powers to recognize the strategic importance of cities and infrastructure in international relations. Simon Curtis and Ian Klaus, Foreign Affairs, November 27
Want to Reset China-US Relations? Bring Back Fulbright China. The Fulbright China Program, terminated in 2020 by the U.S., could be a key to resetting strained China-U.S. relations. The recent APEC summit saw Presidents Biden and Xi showing interest in educational exchanges. China aims to host 50,000 U.S. students in five years, a significant increase from the current 211. The decline in American students in China has created an expertise gap, affecting the U.S.'s capacity to navigate the complex geopolitical landscape. The Fulbright Program, initiated in 1946, has facilitated cultural and educational exchanges, providing a nuanced understanding between the two nations. Reinstating the program could bridge this gap, offering an avenue for cooperation, competition, and scholarly exchange. Colleen O’Connor and Elizabeth M. Lynch, The Diplomat, November 29
Erasing Tibet. China's aggressive campaign against the cultural and linguistic identity of Tibetans, using state-run residential schools, is the subject of grave concern. Nearly a million Tibetan children are subjected to a politicized curriculum in these schools, aimed at replacing their Tibetan identity with a Chinese one. This has led to international attention and condemnation, with the United Nations and countries like the United States and Canada raising concerns over the violation of human rights standards. The practice mirrors the dark history of residential schools in North America and Australia, where indigenous children were forcibly assimilated into the dominant culture. This current situation in Tibet is a stark reminder of the consequences of cultural and linguistic suppression. Tenzin Dorjee and Gyal Lo, Foreign Affairs, November 28
Kishida’s cabinet carousel. In September 2023, Japan's Prime Minister Fumio Kishida reshuffled his cabinet and key positions within the Liberal Democratic Party (LDP), a move that had limited impact on his overall support rate. This reshuffle favored major LDP factions like the Seiwakai, Heisei Kenkyukai, and Shikokai, with leaders of the latter two reappointed to high positions. The strategy was seen as a bid by Kishida to strengthen his control over the party. However, allies of former Prime Minister Yoshihide Suga, including Taro Kono, secured fewer significant positions. Kishida's actions suggest his ambition to continue as LDP president and Prime Minister, sidelining potential rivals like Toshihiro Nikai and Shigeru Ishiba. The weak opposition in Japan, notably the Constitutional Democratic Party, has failed to capitalize on Kishida's stagnant support rate. Kishida's approach to governance, influenced by internal party dynamics and factional politics, is seen as pivotal to understanding the current trajectory of Japanese politics. Masahiro Mogaki, East Asia Forum, November 28