PHNOM PENH – Cambodia appears to be the latest beneficiary of the US-China trade war, joining the already exhaustively profiled Vietnam among the countries enjoying increased exports to the US as tariffed Chinese goods open the door for other cheap suppliers. Latest US government data show annual imports from Cambodia rising significantly since the start of the year, with the US$1.8 billion registered from January-May a roughly 20% increase on the same period last year. Like Vietnam, Cambodia has duty-free access to American markets under the Generalized System of Preferences, a trade program designed to promote economic growth in the developing world. Trade represented 125% of Cambodia’s gross domestic product (GDP) in 2017, according to the World Bank. In 2018, the bulk of Cambodia’s goods exports to the US were clothing and footwear, with the Office of the US Trade Representative listing the top four sectors as knit apparel ($1.8 billion), woven apparel ($628 million), leather products ($390 million), and footwear ($329 million). Cambodia’s 2018 trade surplus with the US was $3.4 billion — which, though relatively-small compared with Vietnam’s near-$40 billion for the same year — will continue to rise this year as Cambodia’s exports to the US surge. Parsing the numbers for a direct trade war link is not as clear-cut as it may seem, however, with both Vietnam – where trade represented 188% of GDP in 2018 – and Cambodia expanding their commerce with the US since before the start of the tariff war.
SINGAPORE — Just over a year ago the United States moved its embassy in Israel from Tel Aviv to Jerusalem, sparking protests in Muslim-majority countries and drawing official condemnation at the United Nations. An estimated 30,000 people demonstrated in Jakarta as Indonesian President Joko Widodo said his country “rejects” the American move as it “may disrupt the peace process in Israel and Palestine.” In late 2017, when US President Donald Trump announced he would live up to his campaign promise to move the embassy, the Malaysian government endorsed a huge protest at the US embassy in Kuala Lumpur, while Asia’s Muslim UN representatives lined up in New York to excoriate the US.
SINGAPORE — U.S. President Donald Trump announced that he would hold a second summit with North Korean leader Kim Jong Un in Vietnam on Feb. 27-28. “Our hostages have come home, nuclear testing has stopped, and there has not been a missile launch in more than 15 months. If I had not been elected president of the United States, we would right now, in my opinion, be in a major war with North Korea,” Trump said in his State of the Union address in Washington late Tuesday. “Much work remains to be done, but my relationship with Kim Jong Un is a good one.” Vietnam, which opened up its economy under Doi Moi reforms in the 1980s, has also been touted by the U.S. as a possible model for Pyongyang to follow. The country emerged as a likely host after Secretary of State Mike Pompeo visited last July, shortly after the first Trump-Kim summit in Singapore. Pompeo lauded the “once-unimaginable prosperity and partnership” between Vietnam and the U.S., before turning to North Korea.
SINGAPORE — China has long bristled at the U.S. Navy’s “freedom of navigation operations” in the South China Sea, which challenge Beijing’s territorial claims in the disputed waters. So when Zhao Xiaozhuo, a senior colonel in the Chinese army, found himself with a chance to complain about them directly to U.S. Secretary of Defense James Mattis recently, he took it. The U.S. operations are a “violation of the law of the People’s Republic of China, of territorial waters,” Zhao told Mattis during a conference in Singapore on June 2. Mattis defended the naval operations by citing a 2016 international tribunal decision that dismissed China’s expansive “nine-dash line” claim to much of the sea.
SINGAPORE — With the US and China squaring up over trade, getting the 16-country Regional Comprehensive Economic Partnership (RCEP) signed by the end of the year seems increasingly important for the 10 member states of the Association of Southeast Asian Nations (ASEAN). That urgency has been sharpened by US withdrawal from the Trans-Pacific Partnership (TPP), now an 11-country deal rebranded as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) after being signed in Chile in March. Singapore’s prime minister clearly wanted to get a message across when hosting the ASEAN summit at the weekend. “The fact is that we do not have a TPP,” Lee Hsien Loong told journalists after the meeting. “We have a Comprehensive and Progressive Agreement for Trans-Pacific Partnership, which has made it more urgent that we proceed with this [RCEP].”
SINGAPORE — If China and the United States continue their charge into a full-on trade war, few regions will be as vulnerable to the resulting economic turbulence as Southeast Asia. That’s why the 10 governments of the Assn. of Southeast Asian Nations meeting in Singapore this week are hashing out ideas about how the region can duck any shrapnel if the world’s two biggest economies keep firing protectionist salvos at each other. “Considering that China and the U.S. are ASEAN’s first and third trading partner respectively, the early exchange of blows between Washington and Beijing would be watched nervously across all ASEAN capitals,” said Tang Siew Mun, head of the ASEAN Studies Centre at the ISEAS-Yusof Ishak Institute, a Singapore-based research organization.
JAKARTA — While there is no clear threat from the U.S. to loosen its long-standing ties with Australia, some observers say the country may one day face a choice between its main security ally and its biggest trade partner. Graham Allison, author of Destined for War: Can America and China Escape Thucydides’s Trap?, said that China’s rise is forcing Asian countries with close ties to the U.S. to reconsider. “Largesse, economic imperialism — call it what you will: The fact is that China’s economic network is spreading across the globe, altering the international balance of power in a way that causes even longtime U.S. allies in Asia to tilt from the U.S. toward China,” Allison said.
JAKARTA — A week after announcing tariffs on washing machine and solar panel imports, U.S. President Donald Trump claimed that “the era of [U.S.] economic surrender is totally over” during his maiden state of the union address. But the speech did not go into detail on trade with Asia or about the Trans Pacific Partnership, an American-led Asia-Pacific free trade deal that Trump withdrew from one year ago. During his hour and half address, which came Wednesday in Asia, Trump briefly recycled some of his previous trade rhetoric, saying he expects it to be “fair” and “reciprocal.” Pledging to “fix bad trade deals,” Trump promised to “protect American workers and American intellectual property, through strong enforcement of our trade rules.” Trump lauded Japanese carmakers Toyota and Mazda for announcing new production plants in the U.S. He also suggested that his recently announced tax cuts could spur inward investment
MANILA — A din of giggles, whispers and squeals greeted Canadian Prime Minister Justin Trudeau as he strode into the hall where most journalists were confined during the recent Association of Southeast Asian Nations summits. With media garrisoned about 2km from the Philippine International Convention Center where the main summit action was taking place, the photogenic 45-year-old Trudeau’s entrance around noon on Tuesday was a rare chance for the reporters to hear from one of the summit leaders in the flesh. Around an hour later, after fielding questions mostly from Canadian news people, and delivering answers in English and French, Canada’s official languages, Trudeau made his way from the podium to the exit. Mobbed by a mix of officials and journalists, some yelling, “Justin, Justin,” as they jostled to intercept the prime minister as he left the hall, anyone listening outside might have thought the Justin in question was Bieber, and that the audience a crowd of star-struck teenagers rather than hard-bitten reporters.
JAKARTA — After Philippine President Rodrigo Duterte’s succession of tirades against the country’s Catholic Church leaders, bishops hardly expected a presidential climb down, even after their entreaty asking the government to ease up on a violent anti-drugs campaign. In less than eight months, more than 7,600 people, mostly drug traffickers and drug users, have been executed extrajudicially, often by a gunshot to the head, their bodies left on the blood-strewn street as a warning. Some have been killed in police operations and some have been murdered by unidentified paramilitary squads. The bloodshed prompted a February pastoral letter signed by Archbishop Socrates Villegas of Lingayen-Dagupan, the president of the Catholic Bishops’ Conference of the Philippines, which said, “This traffic in illegal drugs needs to be stopped and overcome. But the solution does not lie in the killing of suspected drug users and pushers.”