Asia-Europe leaders meeting comes after inconclusive Brexit talks – Nikkei Asian Review

JAKARTA — A spokesperson for the EU stated that the bloc “wants to continue to negotiate ambitious and balanced trade agreements with key partners in the region — this is what we have been doing with Japan, Korea, Singapore and Vietnam.” A “no deal” Brexit could work in one of two ways. While it would risk sidetracking the EU from tricky trade talks with Asia, Brexit could also make the bloc “more interested” in international agreements,” according to Joergen Oerstroem Moeller, a senior visiting fellow at the ISEAS-Yusof Ishak Institute, a think tank at the National University of Singapore. The EU “will not want to appear paralyzed or inward-looking after Brexit,” Moeller said.

Vietnam edges toward China’s model of centralized rule – Nikkei Asian Review

SINGAPORE — The decision by Vietnam’s ruling Communist Party to endorse General Secretary Nguyen Pho Trong as the country’s next president is akin to China’s shift to centralized rule under Xi Jinping — albeit with more limitations. The presidency has been vacant since last month’s death of Tran Dai Quang, and Vietnam’s National Assembly is expected to rubber-stamp Trong as the replacement during a monthlong session starting on Oct. 22. “The central committee has discussed about the merging for quite a long time, therefore the recent move — though it might seem accidental due to Mr. Quang’s death — it should be seen as deliberate,” said Nguyen Khac Giang, Senior Political Researcher at the Vietnam Institute for Economic and Political Research in Hanoi. “It will be the new normal of Vietnamese politics.”

How Beijing is winning control of the South China Sea – Nikkei Asian Review

SINGAPORE — It was tame enough weighed against his usual invective, but by itself Philippine President Rodrigo Duterte’s account of a conversation he had with his Chinese counterpart, Xi Jinping, was startling. During a meeting between the two leaders in Beijing in May 2017, the subject turned to whether the Philippines would drill for oil in a part of the South China Sea claimed by both countries. Duterte said he was given a blunt warning by China’s president. “[Xi’s] response to me [was], ‘We’re friends, we don’t want to quarrel with you, we want to maintain the presence of warm relationship, but if you force the issue, we’ll go to war,” Duterte recounted.

US and China trade barbs, again, over the South China Sea – Nikkei Asian Review

SINGAPORE– After U.S. Defense Secretary Jim Mattis accused China of “intimidation” and “coercion” in the disputed South China Sea on Saturday, a Chinese general responded by saying that “countries accusing China” are the ones causing tension in the region. In an early morning speech in Singapore, Mattis said that “China’s policy in the South China Sea stands in stark contrast to the openness our strategy promises, it calls into question China’s broader goals.” Mattis was speaking at the Shangri-La Dialogue, an annual military conference staged by the International Institute for Strategic Studies, a British research organization. Responding later the same day, Lt. Gen. He Lei, head of the Chinese delegation attending the conference, said “China has resolve and capability to defend its sovereignty.”

Big Tea takes aim at coffee’s crafted cool – Nikkei Asian Review

JAKARTA — Businessmen clad in batik shirts tap on laptops and smartphones, while women in designer Muslim garb chat over pots of hot chai and browse menus listing hundreds of teas, from the exotic (Yellow Gold Tea Buds from China) to the commonplace (English Breakfast). This crowd, a mix of old and young and mostly well-to-do, has made the TWG shop in the Pacific Place mall in Jakarta a lively meeting point in the city. With dozens of these boutique tea shops across Asia offering fine dining and veneered furnishings, Singapore’s The Wellbeing Group, known as TWG, is trying “to bring a new era of tea appreciation” in the region, said Trixie Anindita, the group’s communication and operation manager in Indonesia.

Pods vie to tempt Southeast Asia’s coffee drinkers – Nikkei Asian Review

JAKARTA — Southeast Asia hosts some of the world’s leading coffee growers and exporters, such as Indonesia and Vietnam, the world’s fourth- and second-biggest producers respectively. Neighbors such as East Timor, Laos, Myanmar, the Philippines and Thailand are home to smaller coffee-growing regions. Their beans have typically been for export. Many end up in cups in countries such as the U.S., the biggest importing country, and Italy, the third-biggest importer, according to the United Nations Food and Agriculture Organization. Italy is also the home of espresso, the strong and sometimes bitter caffeine shot that for many drinkers is the quintessential coffee pour. Now, coffee consumption is on the rise in what were mainly exporting countries of the region, and the race is on to see which kind of coffee will lure would-be local drinkers.

United we stagger – Nikkei Asian Review/FT

JAKARTA – Unlike the imposing and often inaccessible buildings of the European Union in Brussels, ASEAN’s low-rise offices sit in the shadow of a partly constructed overhead railway in the southern part of Indonesia’s traffic-clogged capital. Nine months after the group’s 10 members established the ASEAN Economic Community, which aims to promote the free movement of goods, services, capital and labor, the headquarters symbolizes both ASEAN’s aspirations and its limitations. The EU was previously known as the European Economic Community, but ASEAN’s adoption of the “community” moniker does not mean it will emulate Europe’s radical, sovereignty-pooling measures, such as a common currency, central bank and free movement of labor. “The appetite to surrender sovereignty simply is not there,” said Jayant Menon, lead economist at the Asian Development Bank in Manila. “I don’t see a single currency coming into play in ASEAN, and I don’t see that as a bad thing.”

Despite tarnished image, coal remains key to Asia’s energy plans – Nikkei Asian Review

KUALA LUMPUR — For environmentalists, coal is a bad word. But for some of Asia’s biggest economies, the same fuel that was the bedrock of the Industrial Revolution in Great Britain in the 19th century is key to economic development plans two centuries later. While China, the world’s biggest coal producer and consumer, is slowly cutting back on its use of coal for fuel, both Japan, a coal importer, and Indonesia, the world’s biggest coal exporter by weight, plan to expand their coal-fired supplies in the coming years. Other developing economies are turning to coal as they expand their electricity grids. Vietnam is likely to double coal consumption in the coming years, as will India — which recently overtook Japan as the world’s third-biggest oil importer and where roughly 250-300 million people do not have electricity. “China’s expected energy mix points to decreased use of coal, with the share of coal-fired power generation expected to fall to 61% by 2020 from the current 72%,” said Deepak Kannan, S&P Global Platts editor for thermal coal in Asia.

Despite retraction row, Asean tests waters with strong South China Sea statement – Nikkei Asian Review

KUALA LUMPUR — It was a meeting to mark the 25th anniversary of relations between the Association of Southeast Asian Nations and China, held in the the southwestern Chinese city of Kunming, in a region known for historically close trading links with the Southeast Asian countries to the south, including Myanmar, Laos and Thailand. Surprisingly, given the location and the commemoration, ASEAN member state Malaysia issued a statement on behalf of the bloc criticizing China over its territorial claims in the contested South China Sea. The statement noted that recent developments in the disputed sea — where China has been building artificial islands and constructing what it calls “defensive facilities” while the U.S., an ally of the Philippines, has been conducting naval patrols and reconnaissance flights in the name of freedom of navigation — had raised concerns about a spillover clash with China. Those fears, the statement added, had “the potential to undermine peace”. “We stressed the importance of maintaining peace, security, stability, safety and freedom of navigation in and overflight above the South China Sea,” the ASEAN foreign ministers said. But in an about-turn more startling than the earlier statement, Malaysia, which chaired the bloc in 2015 before passing the leadership to Laos, a Communist-ruled country with close ties to China, led the way in issuing a sudden retraction, saying there were “urgent amendments to be made.”

Despite priest’s release, questions remain over Vietnam’s human rights record – National Catholic Register

KUALA LUMPUR — U.S. President Barack Obama has just wound up a visit to Vietnam that saw two former antagonists, who for two decades have been growing trade partners, draw even closer, with the dropping of a U.S. arms embargo against the communist-ruled country. “He himself said the welcome of Vietnamese people has touched his heart. [He was] very moved and very thankful,” said Vietnam’s new prime minister, Nguyen Xuan Phuc, in an interview with foreign media given on Wednesday. Obama was greeted by thousands of well-wishers on the streets of Hanoi, the capital, and Ho Chi Minh City, the biggest city and economic hub of the country, which was previously known as Saigon. However, the visit was marred by signals that Vietnam, a one-party state, remains unwilling to cede ground on freedom of speech, with several noted advocates of democratic reforms prevented from meeting with Obama as scheduled and with the government staging a sham election to the country’s communist-run parliament on the day of Obama’s arrival. One positive note prefaced Obama’s arrival in Vietnam last Sunday, with the release from jail of one of the country’s most determined dissidents, Father Nguyen Van Ly. The Catholic priest was first imprisoned by the communist regime in 1977, two years after the end of the Vietnam War, and had spent much of the intervening 38 years in jail or under house arrest.