Asia Daily: November 29, 2023
News
China not targeting Australia’s Pacific Island ties, says senior Communist Party official. Senior Chinese official Liu Jianchao, in charge of Communist Party diplomacy, stated in Sydney that China does not aim to challenge Australia's influence in the Pacific Islands. Emphasizing a desire for mutual respect and cooperation in regional economic development, Liu's visit marks a renewed effort to improve Sino-Australian relations. This visit, the first by a top-level Chinese official to Australia since the Covid-19 pandemic, follows Australian Prime Minister Anthony Albanese's recent trip to China, aiming to normalize relations disrupted in 2020. Despite declaring a "comprehensive strategic partnership," recent incidents like the alleged unsafe conduct of a Chinese warship towards an Australian navy vessel have caused some tensions. Kandy Wong, South China Morning Post, November 28
N. Korean soldiers in truce village armed with pistols: sources. North Korean soldiers in the Joint Security Area (JSA) of the Demilitarized Zone (DMZ) have been armed with pistols, marking a departure from a 2018 inter-Korean military tension reduction agreement. This development, which includes the restoration of guard posts and introduction of heavy firearms along the border, has been met with close surveillance by South Korean and U.S. intelligence. South Korea is considering countermeasures, including restoring guard posts along the inter-Korean border. The heightened tensions have led to calls for robust military readiness by South Korea's Defense Minister Shin Won-sik. Kim Eun-jung, Yonhap News Agency, November 28
Govt, NDF to hold peace talks anew. The Philippine government and the National Democratic Front of the Philippines (NDFP) have agreed to recommence peace talks, aiming to end a conflict that has lasted over five decades. These talks are set to address socio-economic and political issues fueling the armed struggle by the Communist Party of the Philippines and the New People's Army. The agreement to restart talks involves creating a new framework, expected to be drafted in early 2023, to facilitate socio-economic and political reforms. Philippine military chief Gen. Romeo Brawner expressed optimism about the resumption, noting its potential to allow the military to focus on external defense. The talks were agreed upon following the death of insurgency leader Jose Maria Sison and are significant under the administration of President Marcos Jr. Kristina Maralit, The Manila Times, November 29
China has eased ‘economic pressure’ on Lithuania, says Baltic foreign minister amid ‘ongoing’ talks. Lithuania's Foreign Minister Gabrielius Landsbergis revealed that China has reduced its economic pressure on the Baltic nation, a positive step towards resolving their diplomatic feud that began with Lithuania's decision to allow a Taiwanese office in Vilnius. While bilateral trade hasn't fully resumed, Lithuania has largely compensated through increased trade with other Indo-Pacific countries. Despite this improvement, contentious issues remain, including the naming of the Taiwanese office and Lithuania's diplomatic mission in Beijing. This dispute has been a significant point of tension in EU-China relations and has led to reputational damage for Beijing. Finbarr Bermingham, South China Morning Post, November 29
Japan ambassador meets citizen detained in China over spying for 1st time. Japanese Ambassador to China, Hideo Tarumi, met with a detained senior Astellas Pharma Inc. employee in China, suspected of espionage. This meeting, the first since the employee's arrest last month, comes as Ambassador Tarumi's tenure in China concludes. The detainee, who has been in custody since March, reportedly has no health issues. Japanese authorities, including Prime Minister Fumio Kishida, have consistently urged Beijing for his release, especially given the detainee's prior role as a senior official of the Japanese Chamber of Commerce and Industry in China. Since the enforcement of China's counterespionage law in 2014, 17 Japanese citizens have been detained, with five still in custody. Kyodo News, November 28
Exclusive: China's Alipay to sell its stake in India's Zomato for nearly $400 million. Alipay, a Chinese payments group owned by Ant Group, intends to sell its entire 3.44% stake in Indian food delivery service Zomato for nearly $400 million. The sale, advised by Bank of America and Morgan Stanley, is planned through block deals on Indian stock exchanges. This decision aligns with Alipay's strategy to capitalize on the recent surge in Zomato's share value, selling at 111.28 rupees per share, a slight discount to its recent closing price. Alipay's move follows a trend of Chinese investors reducing their holdings in Indian firms, as seen with Antfin's sale of its stake in Paytm. M. Sriram, Reuters, November 28
Chinese official warns Australia on navy movements in East, South China Seas. China has requested Australia to provide advance notification of its naval activities in the contentious South China Sea and East China Sea. This follows a recent incident involving a Chinese warship and an Australian navy vessel in disputed waters, which escalated tensions. The Chinese official, Liu Jianchao, emphasized the need for pre-consultations to avoid misunderstandings between militaries. Meanwhile, Australia asserts its right to freedom of navigation and overflight in international law, noting that a significant portion of its trade traverses the South China Sea. This development comes amidst ongoing efforts to stabilize Sino-Australian relations. CNA, Channel News Asia, November 28
ASEAN, China Officials Discuss Enhancing Connectivity Under ‘Belt and Road Initiative’. Officials from China and ASEAN met in Vientiane, Laos, to discuss bolstering connectivity under the Belt and Road Initiative (BRI). This one-day forum, themed on aligning BRI with the Master Plan on ASEAN Connectivity 2025, highlighted the BRI's role in improving regional infrastructure, economic development, and technological adoption. Laos' Deputy Prime Minister Saleumxay Kommasith and China's Shen Yueyue both praised the BRI for its contributions to regional growth and integration. The discussions also involved the ASEAN-China Center's role in promoting regional connectivity. Chono Lapuekou, Laotian Times, November 28
North Korea cites rare dissent in elections even as 99% back candidates. North Korea reported a rare occurrence of dissenting votes in its recent elections, with state media acknowledging 0.09% and 0.13% dissent for provincial and city council candidates, respectively. Despite this, analysts view it more as an attempt to mimic a democratic society rather than a genuine increase in rights. The North's parliament and regional councils typically act as a rubber stamp for the ruling party, with voter turnout consistently above 99%. This is the first acknowledgment of dissent in local polls since the 1960s. Soo-Hyang Choi, Reuters, November 28
PM hopes for stronger science-technology cooperation with Brazil. Vietnamese Prime Minister Phạm Minh Chính met with Brazilian Minister of Science and Technology Luciana Santos in Hà Nội, discussing the enhancement of science and technology cooperation. The visit is expected to bolster comprehensive cooperation between Brazil and Vietnam, particularly in science, technology, and innovation. Chính also expressed a desire for Brazil to recognize Vietnam's market economy status, potentially deepening economic and trade ties. The leaders discussed collaboration in emerging technologies such as quantum technology, AI, biotechnology, and the semiconductor industry, aiming for more practical and effective bilateral relations. Vietnam News Service, Vietnam News, November 28
Long Form
China's Slowdown Will Not Stop Growth in Southeast Asia. Southeast Asia's growth remains resilient amidst China's economic slowdown, thanks to its ability to attract supply chains relocating from China. Despite increasing dependence on Chinese imports, the region's strengths in manufacturing, education, and low labor costs offer a strategic advantage. This positions Southeast Asia well for integrating into global value chains and attracting foreign investment, ensuring sustained economic growth in the face of China's diminishing economic dominance. By Priyanka Kishore, Nikkei Asia, November 28
Thailand PM Srettha Faces Hard Sell in E-Wallet Plan to Stoke Economy. Thai Prime Minister Srettha Thavisin is confronting challenges in implementing his ambitious e-wallet scheme aimed at boosting the economy. The plan involves a 10,000 baht handout of digital money to citizens, intended to spur spending and address an economic crisis. However, the scheme faces parliamentary, fiscal, and judicial hurdles, with implementation delayed until at least May. Despite these challenges, Srettha has achieved some domestic policy successes and has been active internationally, enhancing Thailand's foreign relations and securing investment pledges. The e-wallet initiative, central to Srettha's economic strategy, remains a contentious issue, reflecting the complexities of stimulating an economy while managing public debt and inflation concerns. By Francesca Regalado, Nikkei Asia, November 28
From Green to Blue: The Political History of Ko Wen-je. Ko Wen-je, the former Taipei mayor and current presidential candidate, is a significant figure in Taiwan's 2024 presidential race. Known for his unique brand of populism, Ko has recently gained widespread media attention due to the possibility of forming an alliance with the Kuomintang (KMT). This potential coalition could challenge the Democratic Progressive Party (DPP) candidate William Lai in the upcoming election. Ko's political journey, marked by a shift from supporting the DPP (Green) to aligning more closely with the KMT (Blue), reflects the dynamic and complex nature of Taiwan's political landscape. His candidacy and possible KMT alliance underscore the evolving political affiliations and strategies within Taiwan's electoral politics. By Brian Hioe and Lev Nachman, The Diplomat, November 28
Erasing Tibet: Chinese Boarding Schools and the Indoctrination of a Generation. The Chinese government's campaign in Tibet, focusing on state-run boarding schools, is a critical issue in the suppression of Tibetan identity. Nearly a million Tibetan children are enrolled in these schools, where they undergo a politicized curriculum aimed at erasing their Tibetan identity and replacing it with a Chinese one. This strategy includes the suppression of the Tibetan language and culture, with children as young as four being separated from their families. The international community, including the United States and the United Nations, has raised concerns about this large-scale program intended to assimilate Tibetans into the majority Han culture. This approach mirrors the historical colonial-era practices in North America and Australia, where indigenous children were forcibly separated from their cultures and families. The situation in Tibet represents a significant violation of international law and the promises made by the Chinese government regarding Tibetan autonomy. By Tenzin Dorjee and Gyal Lo, Foreign Affairs, November 28
Don't Count on Economic Woes to Deter China. China's economic challenges are unlikely to prevent a conflict over Taiwan, as President Xi Jinping maintains a strong focus on military development and the potential reclaiming of Taiwan. Historical precedents, such as Russia under Putin and Imperial Japan, demonstrate that economic difficulties do not necessarily deter authoritarian regimes from engaging in military actions. Economic hardships might even be strategically utilized by China to foster national unity or distract from domestic issues. The recent escalation in Chinese military activities near Taiwan and in the South China Sea, in spite of economic slowdowns, indicates that economic troubles alone may not dissuade China from potential military actions regarding Taiwan. Proactive deterrence and conflict prevention measures by the U.S. are essential, rather than relying on China's economic situation. By Michael Gallagher, The Wall Street Journal, November 28
Companies Pricing in Forest Fires to Make Way for Palm Oil in Indonesia. In Indonesia, environmental penalties for plantation companies illegally destroying protected primary forests are proving ineffective. Companies like PT Kallista Alam (KA) face minimal consequences for activities such as burning the Tripa peat swamp in the Leuser ecosystem, a biodiversity hotspot. Despite a substantial fine imposed in 2013, KA only began paying in small amounts a decade later. This leniency has led to significant environmental damage, including the drastic reduction of the Sumatran orangutan population in the area. The current system of delayed and fractional penalties serves more as a minor inconvenience than a real deterrent, allowing continued environmental degradation for palm oil production. By Gregory McCann, Asia Sentinel, November 28