Asia Day: May 30, 2024
News
14 pro-democracy activists convicted, 2 acquitted in Hong Kong’s biggest national security case. Fourteen pro-democracy activists were convicted of conspiracy to commit subversion in Hong Kong for their involvement in an unofficial primary election aimed at challenging the government. Among those convicted were former lawmakers Leung Kwok-hung and Lam Cheuk-ting. Two defendants, Lee Yue-shun and Lawrence Lau, were acquitted. The case, stemming from the 2019 protests, highlights the impact of the Beijing-imposed security law on political dissent in Hong Kong. Kanis Leung and Zen Soo, AP News, May 30
China's defence ministry condemns US missile deployment in Philippines. China's defence ministry condemned the deployment of a U.S. intermediate-range missile system in the northern Philippines during military drills in April, calling it a significant risk to regional peace. Defence Ministry spokesperson Wu Qian stated that the deployment brought "huge risks of war" and criticized the move as a Cold War tactic. The U.S. had deployed the Typhon missile system as part of the Balikatan military exercises with the Philippines to test transportation feasibility. Laurie Chen and Mikhail Flores, Reuters, May 30
India's gruelling, acrimonious election campaign comes to an end. India's lengthy general election campaign concluded, with final polling on June 1. Prime Minister Narendra Modi, seeking a third term, shifted focus from his achievements to targeting the opposition. Modi and Congress party's Rahul Gandhi held final rallies in Punjab and Odisha. Critics accused Modi of violating election rules with his plans to conduct televised meditation. Votes will be counted on June 4, with exit polls projecting results post-voting. Shilpa Jamkhandikar, Reuters, May 30
Turkmenistan officials in Georgia to prepare for WTO application. A delegation from Turkmenistan is in Tbilisi, Georgia, to study best practices for WTO accession and promote national trade policy. The visit, organized by the OSCE Centre in Ashgabat, includes meetings with Georgia’s Ministry of Economy and Sustainable Development, Ministry of Foreign Affairs, Tax Service, and Customs Department. The delegation comprises representatives from Turkmenistan’s Ministry of Finance and Economy, Ministry of Justice, Central Bank, and State Customs Service. The Times of Central Asia, May 30
Losses in Rakhine State will deal devastating economic blow to Myanmar junta. The Arakan Army's capture of nine townships in Rakhine State threatens billions in revenue for Myanmar's junta. The conflict jeopardizes critical economic assets, including tourism, border trade, and foreign investments. Control over the coastline and border with Bangladesh is pivotal, potentially cutting off significant customs and tax income. This loss of territory could severely impact the junta's financial stability and strategic positions in the region. Aung Kham and Aung Naing, Myanmar Now, May 30
Foreign Ministries of Kyrgyzstan and Pakistan discuss safety amid more raids on foreign citizens. Kyrgyzstan's Deputy Foreign Minister Almaz Imangaziev and Pakistan's Additional Secretary Muhammad Saleem discussed the safety of foreign medical students following recent attacks. Kyrgyz authorities assured that protective measures are being implemented. This meeting comes as numerous raids have targeted foreign nationals, resulting in significant deportations of Pakistanis and Bangladeshis. The focus remains on ensuring the security and well-being of foreign citizens in Kyrgyzstan. The Times of Central Asia, May 30
Shangri-La Dialogue: China’s new defence chief Dong Jun expected to take tough stance in security summit debut. Admiral Dong Jun, China's first naval officer to become defence minister, will debut at the Shangri-La Dialogue in Singapore. With tensions in the Taiwan Strait and South China Sea, Dong is expected to adopt a firm stance in his meetings, including with US Secretary of Defense Lloyd Austin. This participation follows large-scale military drills around Taiwan and ongoing confrontations in the South China Sea. Amber Wang, South China Morning Post, May 30
48 African countries to attend S. Korea-Africa summit. Forty-eight African nations will participate in the inaugural South Korea-Africa summit next week. President Yoon Suk Yeol is set to meet with leaders from 25 of these countries. The summit, the largest multilateral event since Yoon's administration began, aims to strengthen cooperation with Africa. The two-day event will include a business summit on the second day, with leaders from Sierra Leone, Tanzania, Ethiopia, and Mauritania making official visits. Lee Haye-ah, Yonhap News, May 30,
Deputy PM hosts Lao Finance Minister. Vietnamese Deputy Prime Minister Lê Minh Khái met with Lao Finance Minister Santiphab Phomevihane to discuss enhancing bilateral cooperation. They emphasized the priority of consolidating their friendship and implementing high-level agreements, including those from the Việt Nam-Laos Intergovernmental Committee. Khái highlighted the importance of efficient use of capital assistance and removing cooperation obstacles. Phomevihane noted that 80% of their cooperation plan is complete and committed to further strengthening ties. Vietnam News, May 30
China Defence Minister to meet PM Wong, visit Changi Naval Base. Chinese Defence Minister Dong Jun will meet Singapore Prime Minister Lawrence Wong and attend the Shangri-La Dialogue. Dong and Singapore Defence Minister Ng Eng Hen discussed bilateral defense cooperation, including joint military exercises. Dong will also visit Changi Naval Base and deliver a speech on global security issues during the Dialogue. This visit includes important meetings and activities aimed at strengthening defense ties. Ng Hong Siang, Channel News Asia, May 30
Việt Nam, Poland convene deputy ministerial-level political consultation. Deputy Minister of Foreign Affairs Lê Thị Thu Hằng and Polish Undersecretary of State Anna Krystyna Radwan-Röhrenschef co-chaired political consultations in Hà Nội, focusing on enhancing multifaceted cooperation. Hằng urged Poland to ratify the EU-Việt Nam Investment Protection Agreement (EVIPA) and support lifting the European Commission’s "yellow card" on Vietnamese seafood exports. Both sides committed to strengthening ties in various sectors and enhancing cooperation at multilateral forums. Vietnam News, May 30
Sri Lanka tightens controls to stop men being duped into Ukraine fighting. Sri Lanka will implement stricter measures to prevent its citizens from being misled into fighting in Ukraine under false promises of salaries and benefits. A delegation will be sent to Moscow in June to bring back Sri Lankans wanting to return. The Russian embassy will cooperate with these efforts. Men applying for tourist visas to Russia must now provide a "no-objection" document from Sri Lanka's defense ministry. Reports indicate financial and safety hardships for those already in Ukraine. Uditha Jayasinghe, Reuters, May 30
China restricts exports of military-related materials, from bulletproof vests to plane parts. China announced export controls on materials used in military and aerospace applications, effective July 1. The restricted items include components for bulletproof vests, gas turbines, and aerospace parts. These measures aim to safeguard national security and comply with international obligations amid rising U.S-China tensions and concerns over Chinese support for Russia. Exporters must obtain authorization and provide detailed information on the products and recipients. Ji Siqi, South China Morning Post, May 30
PM recruits Wissanu amid ethics woes. Prime Minister Srettha Thavisin has recruited veteran legal expert Wissanu Krea-ngam as a legal adviser amidst an ethics case regarding the controversial appointment of Pichit Chuenban. Wissanu, who declined a deputy prime minister position due to health reasons, agreed to provide legal advice. The case could potentially lead to Srettha's removal if found guilty of ethics violations. Wissanu has previously assisted former PM Prayut Chan-o-cha in similar legal matters. Mongkol Bangprapa and Aekarach Sattaburuth, Bangkok Post, May 30
Long Form
China’s Local Government Financing Vehicles Face Debt Repayment Challenges, Impacting Broader Economic Stability. China’s local government financing vehicles (LGFVs) face debt repayment challenges due to the country’s economic slowdown and declining property sales. LGFVs, responsible for major infrastructure projects, have accumulated $9.2 trillion in debt. The central government's measures, including easing restrictions for homebuyers and introducing a $42 billion facility to fund bank loans for state companies, aim to stabilize the real estate market but may not be sufficient. The economic pressures on LGFVs could impact broader economic stability and investor confidence. Kristina Honour,
, May 29Solomon Islands’ New Government: A Chance to Reset Australia’s Pacific Diplomacy. The meeting between Solomon Islands’ new Prime Minister Jeremiah Manale and Australia’s Deputy Prime Minister Richard Marles in Honiara on May 21 indicates a potential reset in bilateral relations. Under Manale’s predecessor, Manasseh Sogavare, ties were strained, especially after Solomon Islands entered a comprehensive security deal with China in early 2022, causing concern in Canberra. The new leadership offers Australia an opportunity to strengthen its diplomatic presence and address the factors driving Pacific nations towards China. Corey Lee Bell, The Diplomat, May 30
Uzbekistan, Russia to Start Construction of Small Nuclear Power Plants. Uzbekistan and Russia have agreed to begin construction of Central Asia's first nuclear power plant at a smaller scale than initially planned. During Russian President Vladimir Putin’s state visit to Uzbekistan, he and Uzbek President Shavkat Mirziyoyev finalized the agreement, marking a new phase in their strategic partnership. This development follows Mirziyoyev's recent inauguration for an unprecedented fifth term. The construction is set to start this summer, reflecting renewed nuclear cooperation between the two countries. Catherine Putz, The Diplomat, May 30
India’s Puzzled Military Industrial Complex. India’s diversification of arms partners has resulted in a trust deficit with major suppliers, potentially hindering the technology transfer needed for India to fully indigenize its defense industry. According to the Stockholm International Peace Research Institute’s (SIPRI) 2023 report, India's arms exports reached 210.8 billion rupees ($2.5 billion) in fiscal year 2023-24, a 32.5% increase from the previous year. Despite this success, India's efforts to cut foreign dependence and promote domestic arms production face challenges due to reluctance from suppliers to share critical technologies. Mukesh Kumar, The Diplomat, May 29
India's central bank must be revamped for the economy's sake. The Reserve Bank of India (RBI) should be regionalized and support the corporate bond market to enhance economic growth and stability. Prime Minister Narendra Modi emphasized the need for the RBI to focus on "stability and trust" while supporting economic growth. The RBI's current centralized structure and limited balance sheet restrict its ability to manage liquidity effectively. Regionalizing the RBI, similar to the U.S. Federal Reserve, and encouraging commercial banks to invest in corporate bonds could improve liquidity and reduce reliance on bank loans. Additionally, the RBI's focus on bank supervision should be shifted to a separate agency. Karan Mehrishi, Nikkei Asia, May 30
West must come to terms with Myanmar's fragmentation. Recent victories by Myanmar's resistance groups have raised hopes of defeating the military regime, but the path to a federal democracy remains fraught with challenges. These groups are creating parallel state structures and delivering public services in liberated areas, which are crucial for sustaining the fight and protecting communities. Western governments should support these local governance structures rather than focusing solely on sanctions or military aid, as this approach aligns with the realities on the ground and the need for decentralized governance. Morten B. Pedersen, Nikkei Asia, May 30
Two cheers for the end of free money in Japan. The end of Japan’s ultralow interest rates may be less disruptive than expected. Corporations are better prepared with strong balance sheets, and households will benefit from higher savings income. Since the Bank of Japan ended its negative rate policy in March, the yield on Japan's 10-year government bond has risen, signaling a shift towards a more hawkish monetary policy. This change may encourage investment in IT and efficiency, though small and midsized enterprises might struggle. Higher rates could also exacerbate wealth disparities. The government must improve fiscal discipline to manage rising debt costs.
Kazuaki Nagata, The Japan Times, May 30
Why India shouldn’t try to shut the door on Chinese EV makers. India's rising demand for electric vehicles (EVs) contrasts with geopolitical tensions limiting Chinese EV makers’ access. Despite these challenges, the entry of firms like Leapmotor and existing players MG Motor India and BYD showcases significant growth potential in the Indian EV market. Government incentives and infrastructure development support this growth, yet restrictions on Chinese investment pose hurdles. Historical precedents in the smartphone and port equipment industries demonstrate that valuable Chinese technology can still penetrate the market, suggesting a collaborative approach could benefit India's EV landscape. Charu Bahri, South China Morning Post, May 30
India’s National Education Policy attempts to address poor learning outcomes. India’s National Education Policy (NEP), launched in 2020, aims to improve learning outcomes by integrating different stages of schooling and enhancing teacher support. Despite progress in universal education, learning outcomes remain poor, with significant disparities between government and private schools. The NEP introduces a more coherent schooling structure, emphasizing the importance of early education and high-quality teaching across all levels. However, its implementation faces challenges, including resistance from some states and operational gaps in policy execution. Addressing these issues is crucial for the NEP to fulfill its goal of transforming India into a global knowledge superpower. Yifei Yan, East Asia Forum, May 30
Whose business is it to shape the Mekong’s geopolitical landscape? The Mekong subregion, comprising Thailand, Cambodia, Laos, Vietnam, and Myanmar, is becoming a geoeconomic battleground with multinational corporations and major powers vying for influence. China, Japan, and South Korea have long invested in the region, with initiatives like China's Belt and Road Initiative and Japan's Mekong–Japan Partnership. Chinese companies dominate sectors such as hydropower, telecommunications, and electric vehicles, while Japanese and Korean firms also expand their presence. The Mekong's strategic location and resources make it a critical area for economic and geopolitical maneuvering. Effective management and strategic cooperation are essential for navigating this complex landscape. Yunkang Liu, East Asia Forum, May 30