Asia Daily: November 8, 2023
News
Military-ruled Myanmar hosts joint naval exercise with Russia, its close ally and top arms supplier. Myanmar's military government, in partnership with Russia, has commenced a three-day joint naval exercise focused on defending against air, sea, and land threats, highlighting maritime security. This event marks a significant step in military cooperation between the two countries and reflects Russia's expanding influence in Southeast Asia and its strategic military diplomacy in the region. The exercise underscores the deepening ties post-coup between Myanmar and Russia, who is a key arms supplier. Grant Peck, AP News, November 7
Xi Jinping expected to speak at dinner for US business executives while in San Francisco for Apec. The event, set for November 15, is anticipated to attract numerous CEOs from significant US firms, with an entry cost of $2,000 per person. Amidst rising apprehensions among foreign investors about China's business environment, Xi's address is aimed at reassurance. Although not officially confirmed by Beijing, the White House expects a leaders' meeting. Discussions have recently taken place at high levels regarding climate, nuclear disarmament, and maritime issues, as part of efforts to mend US-China relations. Igor Patrick, South China Morning Post, November 8
Biden expected to meet with Indonesia president as soon as Monday -source. U.S. President Joe Biden is anticipated to meet Indonesian President Joko Widodo at the White House as early as Monday, according to a source. The meeting agenda includes discussions on continuing the clean energy transition, advancing economic prosperity, and promoting regional peace and stability. This engagement reaffirms the long-standing partnership between the United States and Indonesia, the world's second and third largest democracies. The meeting precedes Biden's visit to the Asia-Pacific Economic Cooperation summit in San Francisco, highlighting the significance of U.S.-Indonesia relations in broader regional diplomacy. Trevor Hunnicut and Paul Grant, Reuters, November 7
India votes in key local polls gauging support for opposition, PM Modi. Elections have started in Chhattisgarh and Mizoram, signaling public sentiment prior to India's general elections next year. The Congress party is squaring off against PM Narendra Modi's BJP, with further voting in Madhya Pradesh, Rajasthan, and Telangana scheduled. Results will be compiled on December 3. Amid national issues like unemployment and inflation, these polls are crucial for Modi's BJP, which remains popular but faces tough challenges. The Congress aims to regain strength through the INDIA alliance and capitalize on recent state victories. Al Jazeera, November 7
Blinken to arrive in S. Korea for talks on N. Korea, alliance. Antony Blinken is scheduled for discussions in South Korea focused on North Korea's military cooperation with Russia and regional stability. He will engage in bilateral talks and address concerns about Pyongyang's satellite launch efforts and arms transactions with Russia. Blinken's visit aims to reinforce the U.S. commitment to Indo-Pacific security and could also broach China-related topics ahead of the APEC summit. His Asia tour will conclude with a visit to India after leaving Seoul on Thursday. Kim Seung-yeon, Yonhap News Agency, November 8
Party official highlights relationship with China in Việt Nam's foreign policy. During talks in Beijing, a senior Vietnamese Party official emphasized the importance of Việt Nam's relationship with China, viewing it as a cornerstone of their foreign policy. Discussions included Vietnam's socio-economic development, Party building, and anti-corruption efforts. The official praised the progress in Party leadership and bilateral relations. Both nations recognized the value of diplomatic exchanges and agreed to strengthen legislative and regional cooperation. Vietnam News, November 7
Court panel removes Indonesia’s chief justice for ethical breach that benefited president’s son. Indonesia's judicial panel ousted Chief Justice Anwar Usman for an ethics breach linked to a ruling that enabled President Joko Widodo's son to run for vice president. Usman, Widodo's brother-in-law, was part of the decision that revised candidacy rules before the elections, raising concerns over a potential political dynasty. Though dismissed as chief justice, Usman remains a court justice but is barred from presiding over election-related cases with possible conflicts of interest. Fadlan Syam and Niniek Karmini, AP News, November 7
Japan, U.S. agree on joint efforts to calm Middle East situation. Japanese and U.S. officials, including Prime Minister Fumio Kishida and Secretary of State Antony Blinken, have agreed to collaborate on stabilizing the conflict in the Middle East, specifically addressing the war between Israel and Hamas. Japan, which has historically maintained a balanced approach due to its oil interests in the region, strongly condemns the attacks by Hamas. The discussions also focused on Japan's support for U.S. diplomatic efforts and their unified stance against unilateral attempts to change the status quo forcefully, as well as Russia's threats with nuclear power. Both countries underscored the importance of their alliance amid rising geopolitical tensions. Kyodo News, November 7
China, Australia to restart annual meetings as trade resumes. China and Australia are set to resume annual ministerial meetings, signaling a warming in relations after years of tension. The resumption of dialogues, including a free trade agreement joint committee, was agreed upon during the 16th China-Australia Joint Ministerial Economic Commission. Trade Minister Don Farrell of Australia and his Chinese counterpart expressed a commitment to addressing mutual concerns, enhancing cooperation on multilateral and regional platforms, and advancing green and digital trade. Bilateral trade has shown growth, with a 10.9% increase in the first quarter of 2023, demonstrating the economic interdependence of the two nations. Channel News Asia, November 7
Senate to allot funds to build facilities in WPS. The Philippine Senate has pledged to allocate funds for the construction of new facilities on Ayungin Shoal and Kalayaan Island to bolster the country's frontline posts in the West Philippine Sea. This move, described as a "done deal" by Senator Francis Joseph "Chiz" Escudero, aims to enhance the welfare of stationed soldiers rather than act as a form of aggression. Debates on the 2024 national budget, which will include these allocations, are set to commence. The planned infrastructure improvements include the Rancudo Airfield and the Liwanag Naval Station, with a call for an increased budget for the 37-hectare Kalayaan Island. Escudero criticized the executive's minimal budget allocation for Kalayaan Island and underscored the need for substantial appropriations over rhetoric. Bernadette E. Tamayo and Red Mendoza, The Manila Times, November 8
Long Form
How China's BYD went from bargain battery maker to Tesla's biggest rival. BYD has swiftly ascended from a humble battery manufacturer to a formidable adversary of Tesla in the electric vehicle arena. The company's adeptness at in-house production and cost management, coupled with aggressive global market expansion, echoes the historical rise of Japanese auto brands in the 1970s. As it nears Tesla's sales volumes and plans for a European factory unfold, BYD's trajectory signals a potential shift in the EV industry's power balance. Despite facing trade barriers in the West, BYD's global strategy is clear: to cement its status as a leading electric vehicle powerhouse. Cheng Ting-Fang and Lauly Li, Nikkei Asia, October 8
Freezing out short sellers will not fire up South Korean growth. South Korea's decision to limit short selling in its stock markets is critiqued as a move that could hinder, rather than help, its economic growth and aspirations for developed market status. The KOSPI's volatility in 2023, contrasted with more stable indexes like Japan's Nikkei, reflects investor concerns. MSCI's continued classification of South Korea as an emerging market, rather than a developed one, is seen as justified by such regulatory actions that may deter global investors seeking transparent and open markets. William Pesek, Nikkei Asia, November 8
Where China’s Lithium Monopoly Comes From. China has established a significant lead in the lithium industry, not through raw material reserves but via its expansive processing capabilities. This control over processing is crucial as global demand for lithium rises, given its essential role in battery production. The situation highlights the strategic need for diversifying processing capacities to mitigate risks associated with dependency on a single nation's industrial framework. By Tim Worstall for The Diplomat, November 8
Could Russia provide an end to North Korea’s strategic solitude? North Korea's strategic partnership with Russia, particularly in military and technological aspects, is poised to end its strategic solitude. This alliance is driven by mutual geopolitical interests, with North Korea supporting Russia's territorial claims and Russia viewing North Korea as a counterbalance to South Korean support for Ukraine. The potential for North Korea to supply labor and munitions in exchange for Russian commodities hints at deeper economic ties, while the military collaboration could significantly alter the regional security dynamics. Artyom Lukin, East Asia Forum, November 8
Which way will China-EU relations go: more cooperation or increased confrontation? China-EU relations are at a pivotal juncture, with potential paths towards either enhanced cooperation or increased confrontation. The EU's dual view of China as a partner and systemic rival reflects in their complex interactions, balancing economic interdependence with strategic competition. As both sides navigate this 'conflictual interdependence,' the direction of their relationship will significantly impact global geopolitics and economic landscapes. Sebastian Contin Trillo-Figueroa, South China Morning Post, November 8
Russia’s memory diplomacy is paying dividends in Southeast Asia. Russia's engagement with Southeast Asia is leveraging 'memory diplomacy' to maintain influence, despite a minimal current economic footprint. By invoking shared historical narratives, particularly from the Cold War era, Russia fosters a sense of historical camaraderie with nations like Vietnam, Laos, and Indonesia. This strategy has yielded diplomatic restraint from these countries regarding Russia's actions in Ukraine, showcasing the enduring power of historical ties in international relations. Ian Storey, Channel NewsAsia, November 8