Asia Daily: November 4, 2023
News
US, Chinese diplomats meet in Beijing to discuss maritime issues including South China Sea. Ahead of a scheduled meeting between Chinese President Xi Jinping and US President Joe Biden, senior U.S. and Chinese officials convened in Beijing to discuss the South China and East China seas' situations. The talks, described as "substantive, constructive and candid," are part of efforts to maintain communication and manage relations between the two nations responsibly. Issues included "dangerous and unlawful actions" by China in the South China Sea, highlighting the urgency of managing military encounters to avoid escalation. Mark Magnier, South China Morning Post, November 4
Japan, Philippines agree to hold talks on reciprocal troops pact. Japan and the Philippines have agreed to initiate discussions on a reciprocal troop access agreement to bolster military cooperation amid regional tensions and China's assertiveness in maritime areas. Prime Minister Fumio Kishida and President Ferdinand Marcos Jr also emphasized their commitment to working closely with the United States. This potential pact aligns with the Philippines' existing Visiting Forces Agreement with the U.S. and is part of a broader effort by Japan to expand its security assistance, evidenced by a recent grant to the Philippines and the delivery of surveillance equipment. Mikhail Flores and Karen Lema, Reuters, November 3
Myanmar’s army chief vows counterattacks on armed groups that captured northeastern border towns. Myanmar's military, led by Senior General Min Aung Hlaing, is set to launch counterattacks against ethnic armed groups, including the Myanmar National Democratic Alliance Army and the Ta’ang National Liberation Army, which have captured towns near the Chinese border. The military's acknowledgement comes after these groups, as part of the Three Brotherhood Alliance, have intensified their nationwide armed struggle against the central government. The ongoing conflict has led to significant displacement and has drawn China’s attention, urging a ceasefire and dialogue to resolve the disputes. AP News, November 3
Russian envoy to Japan appointed to fill role left vacant for 1 year. Nikolay Nozdrev has been designated to become Russia's next ambassador to Japan, a role that has been unfilled since the departure of Mikhail Galuzin last November. This nomination comes amidst strained relations between the two nations, primarily due to Japan's sanctions against Russia over the invasion of Ukraine, and Russia's subsequent labeling of Japan as an "unfriendly" country. Nozdrev's appointment is pending approval by the Japanese government and may potentially open avenues for renewed dialogue between Tokyo and Moscow. Kyodo News, November 4
European chamber in China criticises upcoming Shanghai trade fair as 'political showcase'. The European Union Chamber of Commerce has voiced criticism of the China International Import Expo (CIIE) in Shanghai, characterizing it as more of a "political showcase" than a substantive event. The Chamber's Vice President Carlo D'Andrea stated that the trade surplus with Europe has increased despite the CIIE's goal to promote China's imports. European businesses seek concrete policy measures to level the playing field, rather than symbolic gestures. Participation in the CIIE by European companies has declined, citing limited policy changes and reduced business value. Brenda Goh, Reuters, November 3
Australia’s Albanese heads to China touting ‘consistent, steady’ engagement. Australian Prime Minister Anthony Albanese is seeking to negotiate the lifting of trade restrictions with Chinese President Xi Jinping, aiming to recalibrate the relationship between Australia and China towards mutual cooperation and national interests. In the backdrop of trade sanctions and the detention of Australians in China, Albanese is expected to reinforce Australia's consistent policy on Taiwan and indicate no support for the economic containment of China. The diplomatic engagement is unfolding amid signs of positive changes in bilateral ties and may take place at the upcoming G20 summit or the Asia-Pacific Economic Cooperation summit in Bangkok. Lyndal Rowlands, Al Jazeera, November 4
Laos, Singapore Seek to Enhance Security Cooperation on Narcotics, Transnational Crime. Laos and Singapore are intensifying their collaborative efforts to combat narcotics trafficking and transnational crime. This commitment was reaffirmed during a meeting between Lao Deputy Prime Minister and Minister of Public Security, General Vilay Lakhamphong, and Singaporean Ambassador to Laos, Sudesh Maniar. Both nations are facing significant challenges with drug trafficking and other crimes, such as cyber fraud, and are looking to strengthen cooperation to address these issues. The rise in cross-border drug trafficking and cyber scams in Laos underscores the urgency of enhanced regional security partnerships. Chono Lapuekou, Laotian Times, November 3
Malaysia’s next king Sultan Ibrahim set to give PM Anwar ‘a tough time’ with his ‘hands-on’ approach. Sultan Ibrahim of Johor, known for his proactive and direct style of governance, is poised to become the next king of Malaysia. His hands-on approach has significantly influenced decision-making in his state, and he has begun to establish a rapport with Prime Minister Anwar Ibrahim. However, Sultan Ibrahim's business involvements, particularly in the Forest City project and other commercial enterprises, have raised concerns about potential conflicts of interest once he ascends the throne. Constitutional experts and activists suggest that he should divest from his business interests to comply with the law, which restricts the king's active engagement in commerce. Hadi Azmi, South China Morning Post, November 4
N. Korea diversifying cybercrimes amid drop in value of cryptocurrency: report. North Korea is reportedly expanding its cybercrime activities to counteract the reduced value of stolen cryptocurrencies, which are a source of funding for its nuclear and missile programs. The nation has pilfered about $340 million in cryptocurrencies in the first three quarters of the year, adapting to the challenges posed by lower cryptocurrency values and heightened global monitoring and sanctions. These cybercrimes include an increase in ransomware attacks, and North Korea is believed to be utilizing Russian exchanges to liquidate its cryptocurrency assets. Lee Haye-ah, Yonhap News Agency, November 4
Chinese Embassy denies China has 'sleeper cells' in Manila. The Chinese Embassy in Manila has refuted claims that China has established 'sleeper cells' in the Philippines for infiltration and intervention activities. The embassy criticized these allegations as groundless and a distortion of an isolated incident, asserting that they are a result of disinformation. These statements were made in response to a National Bureau of Investigation (NBI) report about the arrest of several Chinese nationals in Pasig City and the confiscation of firearms and ammunition. The embassy is collaborating with Philippine authorities to investigate these matters and emphasized that there is no destabilization plot by China in the country. Javier Joe Ismael, The Manila Times, November 4
Long Form
What is behind the 40% drop in China's U.S. Treasury holdings? China's U.S. Treasury holdings have seen a significant reduction, with a 40% drop that has brought the stockpile to its lowest in 14 years. Market analysts suggest this decline is part of China's efforts to support the yuan, which has weakened to its lowest level against the dollar since 2007. The reduction in U.S. debt holdings by China is also speculated to be influencing bond markets in the United States. This move by Chinese monetary authorities reflects broader concerns about currency stability and economic strategies amidst global financial pressures. Yusho Cho, Nikkei Asia, November 4
Bhutan Stands Firm Against China's Aggressive Border Diplomacy In the face of China's assertive tactics, Bhutan remains steadfast, not yielding to pressure during the recent border talks. The discussions concluded with the establishment of a joint technical team tasked with demarcating the disputed frontier. This move comes amidst Beijing's strategy of using diplomatic dialogue to divert attention from its territorial advances. Bhutan, supported by India as its de facto security guarantor, continues to navigate the complex dynamics of regional geopolitics with a firm stance on its territorial integrity. Brahma Chellaney, Nikkei Asia, November 3
Chinese Analysis of Kamikaze Drones in Warfare Chinese strategists are examining the tactical use of kamikaze drones in the Russia-Ukraine conflict, acknowledging their effectiveness in attrition warfare. These drones, used for both reconnaissance and strikes, are part of a broader Chinese military interest in adapting to modern combat techniques and technologies. The analysis delves into their applications, including disabling enemy air defenses and targeting military assets, while also considering defensive strategies against drone threats. Lyle Goldstein and Nathan Waechter, The Diplomat, November 3
China's Paradox in the Israel-Hamas Conflict China's stance during the Israel-Hamas war showcases a contradiction between its Middle Eastern policy and the realities on the ground. While Beijing positions itself as a neutral peacemaker, it has notably refrained from criticizing Hamas's attacks or Iran's involvement. This approach is at odds with the changing attitudes of Middle Eastern states like the UAE and Bahrain, which have condemned Hamas, seeing Iran as a greater destabilizing force. China's failure to denounce Hamas may resonate with some global south nations but ignores the complexities of Middle Eastern geopolitics, including the intra-Palestinian rivalry and the broader implications for regional security and China's own interests. Dale Aluf, The China Project, November 3
The US, Vietnam’s Tendentious Rights Relationship. The US tempers its critique of Vietnam's human rights issues, particularly religious freedoms, to maintain strategic cooperation against China's regional assertiveness. Despite advocacy groups urging a stronger US stance on Vietnam's rights record, strategic considerations have led to a nuanced American approach, balancing the promotion of human rights with geopolitical interests. Nguyễn Vũ, Asia Sentinel, November 3