Asia Daily: November 7, 2024
China, Solomon Islands agree to mutual visa-free arrangement. China and the Solomon Islands have officially signed a visa exemption agreement allowing citizens of both countries to travel without a visa. This move, signed by Foreign Minister Peter Shanel Agovaka and Chinese Ambassador Cai Weiming, aims to strengthen diplomatic and cultural ties, enhancing tourism and people-to-people exchanges. The agreement builds on a prior pact for diplomatic and official passports, further deepening the strategic partnership between the two nations. PINA, November 7
Japan’s defense chief steps aboard visiting South Korean warship as the two nations strengthen ties. Japanese Defense Minister Gen Nakatani boarded a South Korean warship for the first time, marking a significant step in defense cooperation amid rising regional tensions. During the visit at the Yokosuka base, Nakatani emphasized the importance of Japan-South Korea collaboration, especially after recent North Korean missile launches. Mari Yamaguchi, AP News, November 7
Japan PM Ishiba seeks meeting with Trump this month, following Abe example. Japanese Prime Minister Shigeru Ishiba aims to meet U.S. President-elect Donald Trump after the G20 summit in Brazil, mirroring former PM Shinzo Abe's approach in 2016 to strengthen ties with the U.S. Trump and Ishiba held a brief call, agreeing on an early meeting. Japan is eager to fortify its alliance with the U.S., especially amid concerns Trump may revisit demands for Japan to increase its financial contribution to hosting U.S. troops. Yoshifumi Takemoto, Yukiko Toyoda, and Tim Kelly, Reuters, November 7
High-speed rail plan to be presented to National Assembly within ongoing plenary session. Vietnam’s National Assembly is reviewing a $67 billion proposal to build a 1,541 km high-speed rail line connecting Hanoi and Ho Chi Minh City. The project, which aims to modernize the country’s transport infrastructure, could reshape short-haul travel and freight logistics. Concerns have been raised about the project’s costs, projected revenue, and station locations. Lawmakers are urging thorough fiscal assessments to avoid potential debt risks, with the project targeted for completion by 2035. Vietnam News, November 8
Nippon Steel hopes to finish U.S. Steel buyout by year-end. Nippon Steel Corp. aims to finalize its acquisition of United States Steel Corp. before President-elect Donald Trump's January inauguration. Vice Chairman Takahiro Mori expressed confidence in closing the deal by December, despite concerns that both Trump and outgoing President Joe Biden might block the transaction. The acquisition is currently under review by the U.S. Committee on Foreign Investment, with a decision expected by late December. Kyodo News, November 8
South Korea’s president denies wrongdoing in a growing scandal. President Yoon Suk Yeol refuted accusations of influence-peddling involving him and his wife, amid claims they influenced the ruling party's candidate selection in 2022. Leaked audio suggests Yoon’s alleged involvement, which he denied, insisting he never meddled in party nominations. This controversy unfolds as South Korea faces critical diplomatic challenges, including Trump’s recent U.S. election victory and North Korea's support for Russia. The scandal has dented Yoon's approval ratings, while opposition figures call for an independent investigation. Hyung-jin Kim and Kim Tong-hyung, AP News, November 7
Uzbekistan and EU look to new areas of cooperation. Uzbekistan and the European Union held a meeting in Tashkent to explore enhanced collaboration in sectors like transport, digitalization, and raw materials. The discussions included ongoing EU-funded projects that focus on improving public services, combating corruption, and supporting agriculture in Uzbekistan. The EU plans to allocate over €70 million to bilateral and regional programs, with a focus on sustainable growth and digital advancements. Sergey Kwan, The Times of Central Asia, November 7
Prabowo’s China visit to focus on economic cooperation, not maritime issues: analysts. Indonesian President Prabowo Subianto’s visit to China, his first overseas trip since taking office, prioritizes economic collaboration over maritime disputes. Meetings with President Xi Jinping and Premier Li Qiang will address partnerships in food, energy, and infrastructure. Despite recent tensions over the Natuna Sea, analysts expect both sides to keep a low profile on sensitive issues. Prabowo aims to strengthen ties while maintaining Indonesia’s non-aligned foreign policy stance. Meredith Chen, South China Morning Post, November 7
New Chinese stealth fighter to take centre stage at China's biggest air show. China's J-35A stealth fighter will make its public debut next week at the Zhuhai Air Show, showcasing China's growing aerospace capabilities amid regional tensions. The People's Liberation Army Air Force plans to display the new jet as part of its expanded carrier program. The show will also feature commercial aerospace developments, with manufacturers like Airbus and Embraer attending. The event highlights Beijing’s focus on reducing dependence on foreign technology, especially in light of U.S.-China trade tensions. Lisa Barrington and Sophie Yu, Reuters, November 7
Kyrgyzstan: Chinese firm scores a sweetheart deal to turn Bishkek’s garbage into profits. Chinese company JunXin has secured a 35-year contract to build and operate a waste-to-energy plant in Bishkek, converting the city’s garbage into electricity. The $95 million plant, set to start operations by 2025, will process up to 1,000 tons of trash daily, with potential expansion. Bishkek will pay $17,000 daily for waste processing, while JunXin retains all profits from electricity sales. Though officials claim environmental benefits, concerns remain over pollution from waste incineration byproducts. Erlan Mashanlo, Eurasianet, November 7
Chinese premier backs Myanmar’s ‘political transformation’ in talks with junta chief. During talks with Myanmar’s junta leader Min Aung Hlaing in Kunming, Chinese Premier Li Qiang expressed support for Myanmar’s proposed political transition and reconciliation efforts, which include holding an election next year. Li also pushed for advancing infrastructure projects like the Muse-Mandalay-Kyaukpyu railway under the China-Myanmar Economic Corridor. The visit comes amid ongoing conflict between the Myanmar military and insurgent groups, with China advocating for stability to protect its investments in the region. Josephine Ma, South China Morning Post, November 7
Putin notes possibility of joint military exercises between N. Korea, Russia: TASS. Russian President Vladimir Putin hinted at potential joint military drills with North Korea under the strategic partnership treaty signed with Kim Jong-un in June, which includes a mutual defense clause. This would deepen the military ties between the two nations, which have strengthened since the signing. Reports indicate that up to 10,000 North Korean troops are already deployed to Russia’s front line in the Kursk region, potentially engaging in combat against Ukrainian forces. Song Sang-ho, Yonhap News Agency, November 8
Thai PM meets Myanmar junta chief on sidelines of summit in China. Thai Prime Minister Paetongtarn Shinawatra held a private meeting with Myanmar's junta leader Min Aung Hlaing during a regional summit in China. The talks focused on promoting peace, with Paetongtarn reaffirming Thailand’s stance that there is no military solution to Myanmar’s ongoing civil conflict. The meeting coincided with summits focused on Mekong regional cooperation. While ASEAN has been hesitant to endorse Myanmar’s planned elections, Paetongtarn indicated support for dialogue. Panarat Thepgumpanat and Chayut Setboonsarng, Reuters, November 7
Laos-China Railway hits 3 million passengers in first 10 months of 2024. The Laos-China Railway transported 3 million passengers from January to October 2024, reflecting a 44% increase compared to the previous year. The railway, part of China’s Belt and Road Initiative, has been pivotal in boosting tourism and regional connectivity. The operator plans to introduce additional trains to accommodate growing demand, especially during events like ASEAN summits. This milestone highlights the success of the railway in enhancing Laos’s transport infrastructure and economic growth. Souliyasone Ngotsyoudom, The Laotian Times, November 7
Mirziyoyev calls for independent Palestinian state with East Jerusalem as capital. During the Organization of Turkic States summit, Uzbekistan’s President Shavkat Mirziyoyev reiterated his support for establishing a Palestinian state based on 1967 borders with East Jerusalem as its capital. He condemned the ongoing humanitarian crisis in Gaza and urged international efforts for a political resolution. Additionally, Mirziyoyev emphasized the need for stability in Afghanistan, advocating for dialogue and regional integration to address security and economic challenges. Sadokat Jalolova, The Times of Central Asia, November 7
China tariffs on the table, Trump’s ex-Treasury chief says. Steven Mnuchin, former Treasury Secretary, indicated that President-elect Donald Trump may revisit tariffs on China to pressure it into fulfilling trade agreements. Mnuchin emphasized using tariffs strategically to avoid inflation and highlighted the need for energy price cuts. Additionally, sanctions on countries like Iran could intensify. Meanwhile, companies like Steve Madden are accelerating plans to shift production out of China to reduce exposure to potential new tariffs under Trump's administration. South China Morning Post, November 7
Regional civil aviation organization established for the first time in Central Asia. Central Asian countries, including Kazakhstan, Kyrgyzstan, and Uzbekistan, have launched the Eurasian Civil Aviation Conference (EACAC) to enhance cooperation in aviation safety, unmanned aviation, and personnel training. The organization, headquartered in Almaty, aims to coordinate regional aviation policies and collaborate with international bodies like ICAO and the European Commission. Vagit Ismailov, The Times of Central Asia, November 7
Prime Minister Ishiba’s Asian NATO Proposal and Korea-Japan Defense Ties in Korean Peninsula Contingencies. Newly elected Japanese Prime Minister Ishiba Shigeru has proposed creating an "Asian NATO" to counterbalance regional security threats, citing the lack of a unified defense organization in Asia as a potential trigger for conflict. This proposal aligns with recent trilateral security cooperation between the U.S., Japan, and South Korea. However, South Korea responded cautiously, with Foreign Minister Cho Tae-yul stating that such discussions may be premature, and China strongly opposed the idea, accusing Japan of destabilizing actions. While the concept of an Asian NATO draws on historic attempts to establish a regional security framework, distrust between South Korea and Japan remains a significant barrier. Terrence Matsuo, Korea Economic Institute of America, November 7
All-in on the U.S.-Korea Relationship: More Jobs, More Investment, More Prosperity. Korean companies have invested $114 billion in the United States over the past three years, generating tens of thousands of American jobs and contributing to the growth of the U.S. manufacturing sector. This robust investment is part of South Korea’s strategic economic alignment with the United States, which aims to strengthen bilateral ties and counterbalance influence from other regions like Europe and China. These investments bolster local economies across multiple U.S. states, showcasing the economic and diplomatic benefits of the U.S.-Korea partnership. Henry Haggard, CSIS, November 7
Trump Wins—Can the Indo-Pacific Region Withstand? Following Donald Trump's return to the U.S. presidency, Indo-Pacific allies face uncertainty as his "America First" approach reshapes regional dynamics. While the Biden administration had fostered close coalitions among U.S. allies, Trump's policies signal potential changes in defense and trade commitments. Key allies like Japan, South Korea, and Australia may need to increase their own regional security measures and reassess trade strategies amid changing U.S. support. Yuki Tatsumi, Stimson Center, November 6
India-China Border Agreement: A Tactical Step, No Strategic Reset. In October 2024, India and China agreed to pull back troops from contested areas along the Line of Actual Control (LAC) in regions like Depsang and Demchok. This agreement, which restores pre-2020 patrol rights, aims to de-escalate tensions without addressing the deeper strategic competition between the two nations. The accord appears motivated by pragmatic considerations, with China seeking economic stability amid a slowing domestic economy and India prioritizing economic growth over military conflict. However, the underlying mistrust remains, as both countries continue to fortify their positions along the LAC. Paulo Aguiar, Geopolitical Monitor, November 7
What Does Trump’s Victory Mean for Japan? The recent U.S. election result, with Donald Trump returning to the presidency, raises concerns for Japan and other allies who may need to recalibrate their policies to adjust to a potentially reduced U.S. commitment in the Indo-Pacific. Japan may face increased pressure to strengthen its own defense capabilities and form a more autonomous foreign policy. Trump's "America First" stance could shift the dynamics of regional cooperation and impact Japan's economic and security planning. Kuni Miyake, The Japan Times, November 7
Targeting Malaysia’s “T15”: An Easier Way to Tax the Rich. Malaysia’s Prime Minister Anwar Ibrahim has introduced measures aimed at reducing subsidies for the wealthiest 15% of households (known as the “T15”) to increase tax revenue and reallocate resources. This includes the elimination of certain school and fuel subsidies, but analysts argue these methods are overly complex and could be replaced by more direct taxation. Proposals suggest raising income taxes for the top earners instead, which could generate large revenues without administrative complications. Malaysia’s tax revenues remain low compared to its neighbors, highlighting the need for reform. Lee Hwok-Aun, Fulcrum, November 7