SINGAPORE — In a highly-anticipated policy address in Singapore, acting US Defense Secretary Patrick Shanahan warned today (June 1) China that “behavior that erodes other nations’ sovereignty and sows distrust of China’s intentions must end.”At the same time, America’s top defense official stopped short of demanding countries take sides in the US-China economic and military face-off and said that there is still a chance for the two superpowers to come to terms.“The United States does not want any country in this region to have to choose or forgo positive economic relations with any partner,” Shanahan said, adding in a veiled reference to China that “some in our region are choosing to act contrary to the principles and norms that have benefitted us all.”
KUALA LUMPUR — On April 7, Taiwan’s foreign ministry posted a short video clip on Twitter that it said showed the razing of a Catholic Church building in Shaanxi in central China. The tweet tagged Sam Brownback, the U.S. ambassador-at-large for religious freedom, who had said in a March 8 speech in Hong Kong that “the Chinese government’s abuse of members of Catholic communities has continued” — despite a September 2018 deal between the Catholic Church and Beijing ostensibly covering the appointing of bishops in China. Questions sent to the Taiwanese foreign ministry about the source and date of the video had gone unanswered at the time of this writing, but leveling of the building was reported on websites such as AsiaNews.it, which publishes articles from Catholic sources inside China and which dated the razing to March 31. Asia News reported April 9 that local Catholics in the diocese also had rallied to protect a Marian shrine from police and government officials who were seeking to destroy it. An estimated 12 million Chinese Catholics are split between the so-called “underground” Church, the faithful who follow the Pope, and the government’s Chinese Patriotic Catholic Association. The Vatican has expressed hope that the September deal could lead to better relations between its faithful and those Chinese subject to the state-run version. But the clip, if authentic, is but the latest indication that China’s Catholics continue to be oppressed.
DUBLIN — Business deals worth more than US$60 billion were arguably the least significant aspects of Chinese President Xi Jinping’s visit to Italy and France during the past five days. The key moment arrived in Paris on Tuesday when German Chancellor Angela Merkel admitted that the European Union wants “to play an active part” in Xi’s signature Belt and Road Initiative (BRI). “We, as Europeans, want to play an active part [in the project] and that must lead to a certain reciprocity and we are still wrangling over that a bit,” she said at a media briefing after talks with Xi, French President Emmanuel Macro and EU Commission President Jean-Claude Juncker. Her comments came despite pressure from the United States to block BRI deals and a recent statement by the EU branding China a “systemic rival.”
KUALA LUMPUR — U.S. President Donald Trump is seeking to rein in China’s technological ambitions. Last week Washington took the unprecedented step of threatening to suspend intelligence-sharing with an ally — in this case Germany — should Berlin allow Huawei to supply equipment for 5G networks. At a U.S. Senate Finance Committee hearing last Tuesday, Democrat Ron Wyden cited intellectual property theft, forced tech transfers and the firewall in blasting China for using “schemes and entities to strong-arm American businesses, steal American innovations and rip off American jobs.” But despite the hostility from Washington, Huawei has over half a million followers on Twitter and 1.3 million on Facebook. “5G gaming beats the 4G experience every time with even lower latency and ultrahigh bandwidth,” Huawei wrote on its Facebook page during the Mobile World Congress in Spain in late February. A tweet posted a day earlier said: “Huawei’s playing its part too to bringing [sic] safer, faster and smarter 5G experiences.”
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.
Government debt in emerging Asian economies hit 50% of gross domestic product in the third quarter of last year, according to estimates by the Institute of International Finance, in a trend that suggests a regional shift away from fiscal conservatism. “Entering a financial crisis with a weak fiscal position worsens the depth and duration of the ensuing recession, particularly in emerging-market economies, because fiscal policy tends to be procyclical in these cases,” said Vitor Gaspar, director of the International Monetary Fund’s Fiscal Affairs Department. While government debt in emerging Asia is creeping up, it remains low compared with Japan’s 223.1% of GDP and 100.8% in the U.S. “The relatively low public debt gives the region more buffer against a potential global downturn, enabling policymakers to use expansionary fiscal policy to support demand,” said Frederic Neumann, co-head of Asian economic research at HSBC.
JAKARTA — Governments across Asia are seeking to bring millions of informal workers into regulated employment, and stem a major economic drag on the world’s fastest-growing region. Bangladesh, Indonesia and China have taken steps this month that could help formalize employment for a vast pool of workers that are struggling on the margins of their economies, many as self-employed merchants or agricultural laborers. The World Bank estimates that informal workers make up 47% of jobs in the East Asia and Pacific region, with the figure rising to between 60% and 80% in lower income countries such as Myanmar and Laos. The government in Dhaka last week signed a $250 million deal with the institution aimed at supporting efforts “to create large-scale, better-paid and inclusive jobs.”
JAKARTA — Myanmar attracted the most foreign direct investment of any of the world’s so-called “least developed countries” in 2017, even as the nation’s reputation plummeted over its forced expulsion of tens of thousands of Rohingya Muslims. The $4.3 billion worth of realized FDI that went into the resource-rich Southeast Asian country put it on top of the global economy’s bottom division of 47 nations, according to a report by the United Nations Conference on Trade and Development. Myanmar edged out second-place Ethiopia, with Asian neighbors Cambodia and Bangladesh taking third and fifth spots. Even so the nations remain far behind Association of Southeast Asian Nations peers such as Indonesia and Vietnam.
JAKARTA — China is starting to build its largest offshore wind-power facility in the latest move in an accelerating shift in Asia away from solar to wind and other renewable energy sources. Work began in late October on the facility off Nanpeng Isle in China’s southern Guangdong Province. The project has a planned capacity of 400,000 kilowatts, and its developer, China General Nuclear Power Corporation, expects it to generate about 1.46 billion kilowatt hours of power annually when it goes on stream in 2020 Wood Mackenzie, an energy consultancy, sees wind-generated capacity in the region growing by a factor of 20 over the next decade, powered by Beijing’s plans for a 15-fold expansion. Guangdong plans to build 23 offshore wind farms by 2030, according to China’s official Xinhua News Agency. Meanwhile, Asia’s solar-powered electricity capacity is set to fall this year for the first time since 2001, as countries such as China cut subsidies.
NUSA DUA — U.S. Treasury Secretary Steven T. Mnuchin said Saturday that he was sticking with plans to attend a government-sponsored investment conference in Saudi Arabia this month despite the uproar over the disappearance of a prominent Saudi journalist, although he said he would reconsider that decision “if more information comes out.” Mnuchin said he was concerned about the fate of Saudi-born journalist Jamal Khashoggi, who entered the Saudi consulate in Istanbul, Turkey, last week and has not been seen since. Turkish investigators say Khashoggi, a well-connected Washington Post columnist who had become a critic of the powerful Saudi crown prince, was killed and his body dismembered by an elite Saudi security team. Saudi officials say Khashoggi left the consulate freely, but have not substantiated their claim.