Asia Daily: November 3, 2023
News
When Xi and Biden talk at Apec, managing Taiwan will top the agenda. The upcoming meeting between Chinese President Xi Jinping and US President Joe Biden at the Asia-Pacific Economic Cooperation forum in San Francisco is expected to focus significantly on the complex issue of Taiwan. Amidst various geopolitical risks and the backdrop of both US and Taiwanese elections, both nations have expressed a vested interest in reducing tensions across the Taiwan Strait. However, entrenched doubts persist on both sides regarding policies and intentions, with Beijing particularly wary of Washington's support for Taiwan's defense capabilities and its role in international organizations—stances that China opposes. Mark Magnier, South China Morning Post, November 3
China cremates 'people's' premier, lowers national flag amidst outpouring of grief. China has honored the late former Premier Li Keqiang, widely regarded as the "people's premier," with a national day of mourning marked by the lowering of flags and a state cremation ceremony. Li, who passed away from a heart attack at the age of 68, was remembered for his pragmatic and reform-oriented leadership. President Xi Jinping, along with other top political figures, paid their respects in a solemn ceremony. The public mourning was widespread on social media, with Li's contributions during his tenure and in the recent pandemic being particularly highlighted by citizens. Liz Lee and Xiaoyu Yin, Reuters, November 2
North Korea has likely sent missiles as well as ammunition and shells to Russia, Seoul says. South Korea's military has indicated that North Korea has likely provided Russia with various missiles and munitions, including short-range ballistic missiles, anti-tank missiles, and portable anti-air missiles, as well as a substantial number of artillery shells, amidst the ongoing war in Ukraine. This comes as North Korea faces economic difficulties, leading to the closure of some overseas diplomatic missions. Both Russia and North Korea have rejected claims of such weapons transfers, which would contravene U.N. Security Council resolutions. The North's cooperation with Russia is seen as part of its efforts to navigate international sanctions and domestic economic challenges. Hyung-jin Kim and Kim Tong-hyung, AP News, November 2
3rd release of Fukushima treated radioactive water begins. The third discharge of treated radioactive water from the Fukushima Daiichi nuclear power plant into the ocean has commenced, Tokyo Electric Power Company Holdings Inc. reports, amidst persistent objections from China and Russia. Approximately 460 tons of treated water per day are being pumped into the sea via an underwater tunnel, with the process expected to continue until November 20. This phase is part of a broader plan to release a total of about 31,200 tons of stored water by next March, despite concerns from neighboring countries and local communities. Kyodo News, November 2
Pentagon chief to visit S. Korea this month for annual defense ministerial talks. U.S. Secretary of Defense Lloyd Austin is scheduled to visit Seoul for the annual bilateral defense ministerial talks. During his visit, he is expected to reaffirm the United States' unwavering security commitment to South Korea. The discussions will cover a range of pressing topics, including the transfer of wartime operational control (OPCON), responses to North Korean threats, and cybersecurity issues, among others. This visit underscores the ongoing defense and security collaboration between the two nations. Song Sang-ho, Yonhap News Agency, November 2
China wants direct air link with French Polynesia - Tahiti-based Consul. China's Consul in French Polynesia, Tian Lixiao, has expressed support for a direct air link between China and Tahiti, suggesting it as a step towards deeper cooperation with Pacific nations. Despite an agreement in principle from 2014, practical matters such as visa issuance and flight logistics remain to be resolved. The consul's remarks come amid broader discussions on China's role in the Pacific, including accusations of overfishing and involvement in regional geopolitics, which he has denied. The pursuit of a direct flight connection underscores China's interest in promoting shared development and tourism with French Polynesia. Patrick Decloitre, Radio New Zealand, November 2
Malaysian lawyer embroiled in 1MDB saga and MYAirline probe alleges political persecution by PM Anwar. Malaysian lawyer Rosli Dahlan, embroiled in legal disputes related to the 1MDB scandal and a probe into the failed budget carrier MYAirline, alleges he is facing political persecution. Rosli, representing the opposition party and its leader Muhyiddin Yassin, claims the enforcement actions by the Malaysian Anti-Corruption Commission (MACC) are politically motivated by current Prime Minister Anwar Ibrahim. The controversy includes Rosli's role in 1MDB settlements and recent police investigations into MYAirline's collapse and its connections to i-Serve Online Mall. A court hearing concerning the 1MDB and Goldman Sachs settlement is imminent. Leslie Lopez, Channel News Asia, November 2
PAD's acquittal in parliament blockade upheld. The Thai Court of Appeal has confirmed the acquittal of 21 members of the now-defunct People's Alliance for Democracy (PAD), including former media mogul Sondhi Limthongkul. They were cleared of charges stemming from the 2008 parliament building siege intended to prevent then-Prime Minister Somchai Wongsawat from delivering a policy statement. The Criminal Court had previously ruled that the protests were peaceful, and the police's use of tear gas was an overreaction. The clash that ensued resulted in two deaths and numerous injuries. This decision follows a 2017 Supreme Court ruling that acquitted Mr. Somchai and others in relation to the incident. No author, Bangkok Post, November 2
Yellen says the US economic relationship with China must consider human rights and national security. U.S. Treasury Secretary Janet Yellen has emphasized the importance of considering human rights and national security in the economic relationship between the U.S. and China. In a speech, Yellen outlined the Biden administration's vision for the Indo-Pacific region, stressing that while the U.S. seeks to diversify its economic relationships, it does not intend to decouple from China. Upcoming talks between President Joe Biden and Chinese leader Xi Jinping alongside the Asia-Pacific Economic Cooperation forum aim to address multiple issues straining the bilateral relationship. Yellen asserts that the U.S. is committed to a "serious and clear-eyed" approach, engaging with China to clarify agreements and disagreements without forcing regional countries to choose sides. Didi Tang, AP News, November 2
Mongolian President Set for State Visit to Laos to Foster Friendship, Cooperation. Mongolian President Khurelsukh Ukhnaa is set to visit Laos on November 5-6 to meet with Lao President Thongloun Sisoulith in Vientiane, aiming to reinforce the longstanding friendly ties between the two nations. This visit is a continuation of robust diplomatic engagement, including recent memorandums for parliamentary and foreign affairs cooperation, signaling a deepening relationship. President Ukhnaa's tenure, which began in 2021 following his service as Deputy Prime Minister and Prime Minister, marks a period of active Mongolian diplomacy in the region. Chono Lapuekou, The Laotian Times, November 2
Long Form
China Continues to Win Trade Contest. The decision by the US to withdraw from the Trans-Pacific Partnership (TPP) and the subsequent launch of the Indo-Pacific Economic Framework for Prosperity (IPEF) has not diminished China's trade dominance. Despite the IPEF's aim to counter China's economic influence, the 14 member countries have actually increased their trade dependency on China. Data from the Peterson International Institute for Economics shows a significant rise in both imports from and exports to China among these nations since 2010. This trend underscores the challenges facing US trade policy and the growing economic clout of China in the Indo-Pacific region. By John Berthelsen for Asia Sentinel, November 2
Chinese Gather Despite Heavy Security as Former Premier Li Keqiang Is Laid to Rest. In a rare public display of grief, hundreds, possibly thousands, gathered in Beijing and Hefei to pay respects to former Chinese Premier Li Keqiang. Despite heavy security, mourners in Hefei were allowed to lay flowers at Li's childhood home, while in Beijing, traffic was blocked as Li's cortege passed. Li, known for advocating market-oriented reforms and navigating China through economic challenges and the COVID-19 pandemic, was sidelined in recent years by President Xi Jinping's consolidation of power. His death and the public's response highlight the complex interplay between state authority and popular sentiment in China. By Christopher Bodeen and Ken Moritsugu for The Diplomat, November 2
US Efforts to Control Rare Earths Appear Doomed Amid China’s Dominance.
The United States' strategy to secure its own supply chains for critical minerals essential for the electric vehicle (EV) industry seems to be faltering against China's entrenched dominance. Despite legislative efforts like the Rare Earth Magnet Manufacturing Production Tax Credit Act aimed at incentivizing domestic production, the US faces significant challenges. These include high infrastructure costs and lower ore grades, which pale in comparison to China's vast reserves and advanced processing capabilities. China's command over 80% of the global capacity for rare earth processing and its strategic import-export capabilities further solidify its position as the global leader in this sector. By Dr. Imran Khalid for South China Morning Post, November 2
US Should Join China in Building a Better Global South, Not Hinder It
The United States' approach to counter China's influence in the Global South is seen as anachronistic and counterproductive. China, through initiatives like the Belt and Road, has been actively involved in the economic development of these regions, focusing on infrastructure and trade rather than ideological exportation. The US, on the other hand, is perceived to be continuing a Cold War mentality, attempting to undermine China's efforts which have been largely welcomed by developing nations. The recent Belt and Road Forum in Beijing, which saw a significant number of agreements signed, underscores the initiative's acceptance and the counter-narrative to US claims of a "debt trap." The article suggests that the US should collaborate with China for the betterment of the Global South, rather than hindering progress. By Zhou Xiaoming for South China Morning Post, November 2
China’s Local Government Credit Dilemma. Local government debts in China, now exceeding 35 trillion RMB, pose a serious threat to the country's economic stability and public confidence. The dependency on land sales for revenue and the aftermath of the 2008 financial crisis have exposed the fragility of local fiscal systems. With local governments responsible for the lion's share of public spending, the debt burden is affecting essential services and investment, as seen in Guangxi's declining social and health expenditures. The banking sector's entanglement with local debts could also jeopardize consumer confidence and long-term economic prospects. By Di Lu for East Asia Forum, November 3