Asia ponders whether Trump will walk the talk – Nikkei Asian Review/FT

JAKARTA — After the most divisive election campaign in decades, tens of thousands of Americans have protested and rioted against the winner in cities across the country, prompting international concerns about an increasingly divided superpower. During his campaign, Trump called Mexicans “rapists,” appeared to mock a disabled reporter, threatened to ban Muslims from entering the U.S., and faced accusations of sexually assaulting women. Clinton was subject to an FBI investigation over her use of a private email account while working as secretary of state, while a foundation run with her husband, former President Bill Clinton, was suspected of soliciting cash from foreign governments in return for contacts in the U.S. government. China crowed over the debacle. “The innumerable scandals, rumors, conspiracy theories and obscenities make it impossible for a person to look away,” said state media outlet Xinhua News Agency. Alongside its unrivalled economic and military strength, the U.S. has relied on intangible “soft power” to influence other countries. Joseph Nye, the Harvard University scholar who coined the term, calls it “the ability to get what one wants through attraction rather than coercion or payments.” But Nye noted that American prestige in Asia has been undermined. “The lack of civility in the presidential debate and the nativist, xenophobic nature of a number of Trump’s statements have already had a negative effect on American soft power in Asia and elsewhere,” he told the Nikkei Asian Review.

Asia takes in The Donald’s ascent – Nikkei Asian Review

JAKARTA — As Donald Trump spoke to a raucous, cheering crowd of supporters in New York after winning the US presidential election, Asia reacted to his unforeseen triumph over frontrunner Hillary Clinton with a mixture of surprise and optimism. “We just don’t know how a Trump presidency would be with regard to Asia, with regard to security issues such as the South China Sea,” said Richard Heydarian, a Philippine political scientist, referring to the Republican candidate’s perceived isolationism and threats to force U.S. allies in Asia to fend for themselves. Trump pledged again to put “America first,” echoing one of his campaign mantras, but in remarks aimed at “the rest of the world, the president-elect said “we will deal fairly with everyone.” That pledge includes another loud-mouthed septuagenarian president, the Philippines’ Rodrigo Duterte, who has repeatedly insulted President Barack Obama since taking office in mid-2016. The prospect of the two aging chest thumpers facing off could lead to trouble, Heydarian said. “Obama was very calm and rational in the face of Duterte’s comments [calling the US president “a son of a whore”]. How will Trump react if Duterte says the same?”

As US votes, Europe and Asia ponder fate of trade deals – Nikkei Asian Review

JAKARTA — Stalled efforts by the U.S. and European Union to forge a trans-Atlantic trade pact will remain on ice for the foreseeable future — regardless of the outcome of the Nov. 8 U.S. presidential election, according to the EU’s agriculture commissioner. Failure to finalize the proposed Transatlantic Trade and Investment Partnership pact reflects growing protectionist sentiment in both the U.S. and Europe, and mirrors problems besetting its U.S.-Asian counterpart, the Trans-Pacific Partnership agreement. Negotiations on the TTIP will not resume until the new U.S. administration — led by Democrat Hillary Clinton or her Republican rival Donald Trump — settles into office, said Phil Hogan, the European Commissioner for Agriculture and Rural Development. “These are on hold at the moment until we know what the new policy position of the U.S. will be,” Hogan said on Tuesday in Jakarta, on the final leg of an EU trade mission to Asia. “We have had a lot of political rhetoric from both candidates, probably to a greater extent from Mr. Trump who has expressed himself as anti-trade, Mrs. Clinton has said less than positive things about trade as well.”

Choking on growth – Nikkei Asian Review

PHNOM PENH — The skyline of Phnom Penh is changing as fast as that of any Asian city. Yellow cranes gleam in the sun after late-afternoon squalls, towering alongside green-netted scaffolding wrapped around dozens of new high-rise apartment blocks going up across the city. These are, literally, the green shoots of a building boom that made up a sixth of Cambodia’s economic growth last year. They are a sign of a transformation underway in the capital as Cambodia tries to catch up with its more prosperous neighbors. But the rapid changes also highlight a challenge that has faced many cities across Asia in recent decades: with 200 million people having moved from countryside to city in East and Southeast Asia since 2010, how can cities manage large-scale urban growth in a way that facilitates economic growth without increasing pollution and traffic jams. In BKK1, an upmarket part of the city, “the roads are too narrow, the area is not ready for so much construction, many small builders don’t talk to the municipality, there is no coordination,” said Sebastian Uy, co-owner of real estate agency Le Grand Mekong Property.

Zika poses a threat to Asian economies – Nikkei Asian Review

The Diabetes and Metabolism Center at Singapore General Hospital (Simon Roughneen)

SINGAPORE — More than 300 people have been diagnosed with the Zika virus in Singapore this year, while the figure for Thailand has reached 200. Though the numbers of Zika cases in other Asian countries remain in the single digits, outbreaks in these two trade and tourism hubs could take a heavy economic toll. Such impacts are already being felt in Latin America. The spread of Zika there has resulted in around 1,800 cases of microcephaly, and the World Bank estimates that Zika could result in losses of around $3.5 billion to Latin American economies, or 1% of gross domestic product in tourism-dependent ones. In Asia, the main impact is likely to be felt in Singapore, which will host a Formula One Grand Prix race from Sept. 16-18. The event attracts not only regional motor sports fans but also corporate guests attending business meetings during the race week. The current Zika outbreak is the first ever in the city-state. Though it has not sparked any panic yet, the rapid spread of infection has reminded many residents of the SARS crisis of 2003, which saw economic activity contract 4.2% in the second quarter of that year. China, Singapore’s biggest source of tourists, issued an alert on Sept. 7 urging visitors to Zika-affected countries to take precautions against mosquito bites.

Concern grows about Zika spreading in Asia – Nikkei Asian Review

Mount Elizabeth Medical Center in Singapore, destination for medical tourists from around Asia (Photo: Simon Roughneen)

JAKARTA — Concern is growing in Asia about the spread of the Zika virus, with a recent outbreak in Singapore followed by cases in Malaysia, the Philippines, Thailand and Vietnam. There is no vaccine or treatment for the virus, which usually causes only mild fever, rashes and red eyes in infected adults but can lead to a birth defect called microcephaly if a pregnant woman is infected. The spread of Zika in Latin America has led to about 1,800 cases of microcephaly and resulted in several prominent athletes refusing to participate in the recent Olympic Games held in Brazil. In February, the World Health Organization declared Zika, which can be spread sexually but is mostly mosquito-borne, a global public health emergency. In Asia, the threat of the virus spreading around the region is causing concern for hundreds of millions of people already on guard against dengue, malaria and other conditions spread by the same mosquitoes that carry Zika. With almost 300 Zika cases reported in recent weeks in Singapore, a trade hub and city-state that is home to significant migrant worker populations from across Asia, the fear is that Zika will spread rapidly throughout the densely populated region.

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.”

South China Sea arbitration ruling brings no closure to regional disputes – Nikkei Asian Review

JAKARTA — The international tribunal decision against Beijing’s claims to much of the South China Sea has provoked a mixed response in the region, with indications that it may tone down some rivalries while sharpening others. Most revealingly, after years of acrimony with China over rival claims in the disputed waters, the Philippines initially took a conciliatory tone, inviting China to bilateral talks over the matter. Despite a jubilant reaction from his countrymen following the July 12 ruling, which was overwhelmingly in favor of Manila, the normally strident new President Rodrigo Duterte said he would not “flaunt” the decision. Instead, he reiterated his desire to improve relations with China, his country’s biggest source of imports. “War is not an option,” Duterte said. “So, what is the other side? Peaceful talk.” Despite Duterte’s muted response, China has refused to compromise — insisting that any talks must exclude mention of the tribunal’s verdict. The tribunal, convened at the Permanent Court of Arbitration in The Hague, suggested that Chinese naval maneuvers in waters around islands near the Philippines are illegal. Yet Beijing has continued to block Filipino fishermen from working around Scarborough Shoal, 190km off the Philippine coast and 800km from mainland China.

Tribunal’s blunt ruling against China fuels South China Sea tensions – Nikkei Asian Review

TOKYO/JAKARTA — China’s claims to historical rights in the South China Sea have no legal basis, an international tribunal at The Hague ruled on Tuesday. In the first international ruling on artificial islands and military facilities built by Beijing in the disputed waters, the tribunal sided with the Philippines, flatly denying China’s historic claim to the “nine-dash” line, which encompasses most of the sea. A panel of five judges at the Permanent Court of Arbitration in The Hague in the Netherlands also noted that no maritime feature claimed by China along the Spratly Islands constitute a fully entitled island, and therefore cannot generate an exclusive economic zone or a continental shelf. The tribunal, established under the United Nations Convention on the Law of the Sea, said there was “no evidence” China had historically exercised exclusive control over the waters in the South China Sea or its resources. Moreover, the tribunal said any historical rights “were extinguished” when the U.N. convention established EEZs.

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.”