Asia Daily: September 25

News

US ‘back in force’ in Pacific as Biden hosts regional leaders at summit. President Joe Biden aims to elevate American engagement in the region, with plans to reopen embassies and increase aid. Notably, the Solomon Islands' - which has stepped up cooperation with China - Prime Minister, Manasseh Sogavare, will not attend the summit. The summit will also address the renewal of strategic agreements with the Marshall Islands, Palau, and Micronesia, which grant the US military access in exchange for financial aid. South China Morning Post, September 24

Presidential Office to discuss with China on Xi's possible visit to S. Korea. The office of South Korean President Yoon Suk Yeol is initiating discussions to arrange a visit by Chinese President Xi Jinping to South Korea. Xi expressed interest in visiting Seoul during a meeting with Prime Minister Han Duck-soo at the ongoing Asian Games in Hangzhou. National Security Adviser Cho Tae-yong emphasized that such a visit would be a significant milestone in South Korea-China relations, aligning with the Yoon government's diplomatic objectives. However, he also indicated that the visit might not occur this year. By Woo Jae-yeon for Yonhap News Agency, September 24

US will establish diplomatic ties with the Cook Islands and Niue as Biden hosts Pacific leaders. The United States is set to establish diplomatic relations with the Cook Islands and Niue as President Biden prepares to host Pacific leaders. This strategic move aims to counter China's growing influence in the Pacific region. AP News, September 24

Biden aides in talks with Vietnam for arms deal that could irk China. The Biden administration is discussing a potential arms deal with Vietnam, which may include the sale of American F-16 fighter jets. This move aims to strengthen Vietnam's defenses amidst South China Sea tensions with China. Special financing terms are being considered to help Vietnam diversify from its reliance on Russian arms. By Trevor Hunnicutt and Nandita Bose for Reuters, September 23

Deadly fire at golf ball factory in Taiwan leaves 10 dead. Search teams found the bodies of the last three missing people on Sunday at the site of a golf ball factory fire in southern Taiwan, bringing the death toll to 10. The fire occurred at a factory operated by Launch Technologies, a major global supplier of golf balls. Four of the victims were firefighters. The incident began with an explosion that caused part of the building to collapse, trapping firefighters and workers under the rubble. A second explosion followed 20 minutes later. The fire was not extinguished until the next day, and the cause remains unclear. The factory has been fined in the past for violations found during inspections. AP News, September 24

Philippines condemns Chinese 'floating barrier' in South China Sea. The Philippines has voiced its condemnation over a floating barrier discovered by its Coast Guard and Fisheries Bureau personnel near the shoal known locally as Bajo de Masinloc. This barrier, estimated to be 1,000 feet long, is seen as a potential hindrance to navigation and fishing activities in the region. The discovery and subsequent condemnation come amidst ongoing territorial disputes and tensions in the South China Sea, where multiple nations, including the Philippines and China, have competing claims. Reuters, September 24

South Korea opposition leader ends 24-day hunger strike. South Korea's opposition leader ended a 24-day hunger strike, according to a party spokesperson. The hunger strike came to an end two days after the parliament voted to allow prosecutors to serve an arrest warrant against him for alleged bribery. The opposition leader's actions have sparked a national conversation about political protest and the rule of law in South Korea. Reuters, September 23

Australia seeks separate dialogue on China wine dispute. Australia wants a separate dialogue with China on their dispute over wine, rejecting Beijing's proposal to link wine with other trade issues. The agriculture minister announced this as the two nations slowly seek to improve battered relations. The move comes amidst ongoing tensions between Australia and China, particularly in the trade sector. Reuters, September 24

Thailand expects Tesla, Google, Microsoft to invest $5 billion, Prime Minister Says. Thailand's Prime Minister Srettha Thavisin announced that the country expects to receive at least $5 billion in investments from Tesla, Google, and Microsoft. This comes as Thailand seeks to attract foreign investment to boost its economy, particularly in the technology sector. Reuters, September 24

China, resource-rich East Timor, upgrade bilateral ties. China and East Timor have upgraded their bilateral ties to a comprehensive strategic partnership. This move potentially gives Beijing more influence in the region while satisfying East Timor's desire for stronger ties with major economies. Reuters, September 24

Long Form

Japan's EV Infrastructure is Aging as Market Fails to Take Off. Japan's electric vehicle charging infrastructure is deteriorating, with many charging stations closing down due to low usage. The market for electric vehicles in Japan remains small, making it difficult for charging stations to operate profitably. This has led to a rising number of closures and suspensions of charging stations, further delaying the spread of electric cars in the country. The situation reflects a broader issue in Japan's EV market, where electric vehicles account for only 2% of domestic passenger car sales. By Yukiko Une for Nikkei Asia, September 23

Toyota to Triple EV Output as it Chases Tesla, BYD. Toyota Motor plans to significantly ramp up its electric vehicle production by 2025. The automaker has informed major parts suppliers of its intention to produce 600,000 EVs in 2025, a substantial increase from its 2024 target of 190,000 units. This move is part of Toyota's broader strategy to catch up with competitors like Tesla and BYD in the electric vehicle market. The company aims for EVs to make up 5% to 6% of its total vehicle production by 2025. By Kazuhiro Noguchi and Takayuki Yao for Nikkei Asia, September 23

Will Russia and China Agree to the Power of Siberia 2? The proposed Power of Siberia-2 natural gas pipeline between Russia and China faces significant challenges, both technical and economic. Despite these hurdles, Russian President Vladimir Putin and Chinese leader Xi Jinping may announce an agreement to build the pipeline as early as October. The project aims to satisfy natural gas demand in northern China but will face stiff competition from renewables and heat pumps. Financing the project will also be a major obstacle, especially given Russia's high-interest rates. By Joseph Webster for The Diplomat, September 23

The Slow Militarization of India's Space Sector. Space has become securitized and militarized within the Indian strategic discourse, with technology, assets, and other infrastructure within the domain being used for military purposes. The article highlights the Indian government's focus on the militarization of its space sector, including the creation of specialized institutions and policies. It also discusses the role of the private sector in strengthening India's defensive capabilities in space. By Anuttama Banerji for The Diplomat, September 23

Tricks of the Trade: Strategic Decoupling. Robert Lighthizer, the former United States trade representative, reflects on his decision to launch the trade war with China and initiate the process of "strategic decoupling." The article discusses the motivations and implications of this policy, which aimed to disentangle the U.S. and Chinese economies to some extent. Lighthizer shares insights into the early days of the Trump administration's approach to China, including President Trump's first official visit to Beijing. By Robert Lighthizer for The Wire China, September 24