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🇯🇵 Speculation grows over Jan. dissolution of Japan's lower house

Speculation has emerged within the Japanese government that Prime Minister Sanae Takaichi may dissolve the House of Representatives at the outset of the ordinary parliamentary session scheduled to begin on Jan. 23.

Ruling Liberal Democratic Party policy chief Takayuki Kobayashi stressed that "it is a constant battlefield. It is fundamental to constantly hone ourselves so we are prepared whenever an election may come."

Some lawmakers within the LDP are calling for a dissolution while public approval ratings for the Takaichi Cabinet remain high at around 70% in media polls. If the lower chamber is dissolved, official campaigning for a general election may start on either Jan. 27 or Feb. 3, with voting set for Feb. 8 or Feb. 15, respectively.

#Japan

@asianomics
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🇲🇾🇮🇩 Malaysia and Indonesia blocked Musk’s Grok

Malaysia and Indonesia have become the first countries to block Grok, the artificial intelligence chatbot developed by Elon Musk's company xAI, as concerns grow among global authorities that it is being misused to generate sexually explicit and nonconsensual images.

Regulators in the two Southeast Asian nations said existing controls weren't preventing the creation and spread of fake pornographic content, particularly involving women and minors. Indonesia’s government temporarily blocked access to Grok on Saturday, followed by Malaysia on Sunday.

Initial findings showed Grok lacks effective safeguards to stop users from creating and distributing pornographic content based on real photos of Indonesian residents, Alexander Sabar, director-general of digital space supervision, said in a statement.

#Malaysia #Indonesia

@asianomics
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🇺🇸🇹🇼 US, Taiwan near deal to lower tariffs, boost TSMC investment

The US and Taiwan have reached a broad consensus on their trade deal and further details would be announced after a final wrap-up meeting, Taiwanese Executive Yuan’s Office of Trade Negotiations said.

There were also reports that the two nations are nearing a trade deal to reduce Taiwan’s tariff rate to 15% and commit Taiwan Semiconductor Manufacturing Co (TSMC) to building at least five more facilities in the US.

The reduced tariff rate is in line with those applied to Japan and South Korea, which struck trade deals last year, it said. The timeline for TSMC’s further investment in the US remains unclear.

#USA #Taiwan

@asianomics
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🇯🇵🇰🇷 Leaders of Japan and South Korea meet as China flexes muscles

Japanese Prime Minister Sanae Takaichi met South Korea’s President Lee Jae Myung for talks on Jan 13 aimed at demonstrating their cordial ties as Beijing pressures Tokyo over its stance on Taiwan.

The two leaders are in Takaichi’s picturesque home region of Nara in western Japan, days after Lee visited Chinese leader Xi Jinping in Beijing.

The two US allies have already agreed to strengthen cooperation on economic security, regional and global issues, and artificial intelligence, according to South Korea’s presidential office.

Behind closed doors, the leaders will certainly discuss the current Japan-China crisis, as Beijing’s retaliatory measures, including export controls, will have an impact on South Korea as well.

#Japan #SouthKorea

@asianomics
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🇨🇳🇺🇸 China taps export controls veteran for senior trade post ahead of Trump visit

China on Jan 12 appointed Jiang Chenghua as deputy representative for International Trade Negotiations, a veteran negotiator with experience in export controls and in managing the country’s investment ties with the US.

Jiang replaces Li Yongjie, who in October was named as China’s representative to the World Trade Organisation, as Beijing prepares for an April visit by US President Donald Trump.

At the same time, Beijing is turning its attention to pressuring Japan over remarks by Prime Minister Sanae Takaichi regarding Taiwan, by leveraging its export control frameworks.

A trade lawyer by training, Jiang previously headed up the Commerce Ministry’s import-export control division and worked on negotiations for a China-US bilateral investment treaty, launched in 2008 but shelved in 2017 after Trump took office.

#China #USA

@asianomics
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🇨🇳🇺🇸🇻🇪 Supertankers sailing to pick up Venezuelan oil for China make U-turn

Two China-flagged supertankers that were sailing to Venezuela to pick up debt-paying crude cargoes made U-turns and were headed back to Asia, LSEG shipping data showed, a sign that the US-blocked South American country might not be directly exporting oil ⁠to its main buyer any time soon.

Following the US announcement last week of a deal to export up to 50 million barrels of Venezuelan oil stuck in storage, US President Donald Trump said China would not be deprived of Venezuela’s crude. He did not elaborate on the supply mechanism.

But China, the biggest market for ‍Venezuela’s oil, has not received any cargoes from state-run PDVSA since last month as Washington says the oil embargo ‍remains in force.

Global trading houses Vitol and Trafigura are instead readying the first cargoes of the announced US$2 billion deal, to be sent to the US and other destinations, including ‌India and China, a negotiation that can ultimately benefit China’s refiners if the traders negotiate cargoes with them.

#China #USA #Venezuela

@asianomics
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🇰🇵🇰🇷 North Korea’s Kim Yo Jong says South’s hopes for better relations are an illusion

The sister of North Korea’s leader Kim Jong Un, Kim Yo Jong, said on that South Korea’s hope for an improvement in relations is an illusion that cannot be realized.

The leader’s powerful sister criticized a comment attributed to a South Korean government official on Jan 13 that Seoul saw a chance of talks resuming with Pyongyang based on her recent reaction to an alleged drone incursion into her country.

“As far as Seoul’s various hope-filled wild dreams called ‘repair of (North-South) relations’ are concerned, they all can never come true,” Kim said.

#NorthKorea #SouthKorea

@asianomics
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🇯🇵 Japan’s Takaichi set to call February snap election

Japanese Prime Minister Sanae Takaichi has conveyed to a ruling party executive her intention to dissolve parliament's lower house at the outset of its regular session, Kyodo news agency said, setting the stage for a snap election.

The Yomiuri Shimbun newspaper reported on Friday that Takaichi was considering dissolving the lower chamber at the start of the regular session scheduled to be convened on January 23 for a snap election on February 8 or 15.

Takaichi reportedly hopes a bigger majority of the ruling party will help her implement her agenda of more “proactive” fiscal spending, and may also help her break the deadlock in a spat with China.

#Japan #China

@asianomics
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🇹🇭🇰🇭 Cambodia says Thai troops still occupy civilian areas

Thailand's military continues to occupy civilian areas in Cambodia, having barricaded some with barbed wire and shipping containers, posing a risk to a truce between the neighbors who clashed twice last year, the Cambodian foreign minister said.

Up to 4,000 Cambodian families are unable to return to homes along the disputed frontier because of the Thai incursions, Prak Sokhonn said.

"The situation remains calm, but there are some risks as well. So we hope that Thailand will remain committed to the full implementation of the ceasefire."

#Thailand #Cambodia

@asianomics
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🇯🇵🇺🇸 Japan defense chief, US Indo-Pacific commander share security concerns

Japanese Defense Minister Shinjiro Koizumi and Adm. Samuel Paparo, commander of the US Indo-Pacific Command, agreed that the regional security environment has grown more severe and discussed further enhancing cooperation between their countries' forces.

Koizumi visited the command's headquarters in Hawaii on the first day of his weeklong U.S. trip aimed at strengthening the bilateral alliance amid mounting security challenges from China and North Korea.

The two joined the Honolulu Defense Forum on the day, with Koizumi becoming the first Japanese defense minister to attend the event. In a speech, he focused on the realization of a free and open Indo-Pacific, a vision conceived by the late Prime Minister Shinzo Abe.

#Japan #USA

@asianomics
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🇵🇭🇯🇵 Japan, Philippines sign new security pacts as regional tensions rise

The Philippines and Japan signed two defense pacts, including a deal allowing their forces to exchange supplies and services, with both countries seeking to strengthen security cooperation in response to rising regional tensions.

The Acquisition and Cross-Servicing Agreement, designed to enable the swift provision of supplies and services between their militaries, comes months after a landmark Reciprocal Access Agreement between two of Washington's closest Asian allies took effect.

Japanese Foreign Minister Toshimitsu Motegi and his Philippine counterpart Theresa Lazaro, also announced a $6 million Official Security Assistance from Tokyo to fund the building of facilities to house rigid‑hulled inflatable boats donated by Japan to boost Manila's naval capabilities.

#ThePhilippines #Japan

@asianomics
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🇨🇳 China's trade ends 2025 with record $1.2 trillion surplus

China reported a record trade surplus of nearly $1.2 trillion in 2025, led by booming exports to non-US markets as producers ​looked to build global scale to fend off sustained pressure from the Trump administration.

A push by policymakers for Chinese firms to diversify beyond the world's top consumer market by shifting ‌focus to Southeast Asia, Africa and Latin America paid dividends, cushioning the economy against US tariffs and intensifying trade, technology and geopolitical frictions.

Heading into 2026, the challenges for Beijing are aplenty, including deflecting concerns from an increasing number of global capitals about China's trade practices and overcapacity, as well as their overreliance on key Chinese products.

#China

@asianomics
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🇺🇸🇹🇼 Taiwan says more US arms sales are in the pipeline

More US arms sales to Taiwan are in the pipeline with four deals yet to be notified to Congress, a senior Taiwanese defense official said on Thursday, following the announcement of an $11 billion package last month, the largest ever for the island.

Speaking to reporters in Taipei following a weekly cabinet meeting, Vice Defense Minister Hsu Szu-chien said that four additional packages for Taiwan had yet to be formally notified to the US Congress, the usual process for approval of such sales.

Hsu said Taiwan had to spend more given the threat. "Everyone knows the threat we are facing is growing and growing," he said.

#USA #Taiwan

@asianomics
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🇯🇵 2 Japan opposition forces eye new party to coordinate lower house election

Japan's main opposition force and a former junior partner of the ruling Liberal Democratic Party are eyeing the formation of a new political party to coordinate cooperation in a possible general election.

The Constitutional Democratic Party of Japan and the Komeito party aim to unite as a centrist force to challenge the conservative ruling camp led by Prime Minister Sanae Takaichi, who plans to dissolve the House of Representatives in the near future.

With media polls showing strong support for Takaichi's Cabinet, the CDPJ and Komeito are bracing for a tough lower house election and seeking to broaden support through closer cooperation.

#Japan

@asianomics
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🇮🇩🇺🇸 Indonesia asked to buy US-made drones for surveillance

The United States is demanding that Indonesia purchase US-made maritime surveillance drones for use in waters near the South China Sea as a condition for lowering tariffs.

The US has offered to reduce the tariff on Indonesia to 19%, down from a threatened 32%.

#Indonesia #USA

@asianomics
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🇵🇭 Philippines seeks to block access to Grok on child safety concerns

The Philippines is moving to block Elon Musk's AI chatbot Grok amid ​concerns about its ability to generate sexualized images, ‌including content that could pose child safety risks, the secretary of information ‌and communications technology said

Henry Aguda said Grok's footprint in the country remains relatively small compared ​to more widely used platforms like ChatGPT and ‌Claude.

Governments and regulators from Europe to Asia have been cracking down on sexually explicit content generated by Grok on the social media platform X, launching probes, imposing bans ⁠and demanding safeguards.

#ThePhilippines

@asianomics
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🇺🇸🇹🇼 US and Taiwan reach trade deal, with semiconductor chips and China in focus

The US and Taiwan clinched a trade deal on Thursday that cuts tariffs on many of the semiconductor powerhouse's exports, directs new investments in the US technology industry.

Taiwanese chipmakers like TSMC that expand US production will be charged a lower tariff on semiconductors or related manufacturing equipment and products they import into the US and can import some duty-free. Broad tariffs that apply to most other Taiwanese exports to the US will fall from 20% to 15%.

Generic pharmaceuticals, aircraft components and "unavailable natural resources" will face a 0% tariff. The US also committed that Taiwan will be treated no worse than anyone else should chips tariffs be increased later, according to Taiwan.

In exchange, Taiwanese companies will invest $250 billion to increase production of semiconductors, energy and artificial intelligence in the US That includes $100 billion already committed by TSMC in 2025, with more to come, according to US Commerce Secretary Howard Lutnick.

#USA #Taiwan

@asianomics
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🇨🇳🇹🇼🇺🇸 China's military 'monitors' US vessels transiting the Taiwan Strait

China's military said it had followed and monitored the transit of guided-missile destroyer USS Finn and oceanographic survey ship USNS Mary Sears through the Taiwan Strait on January 16 and 17.

A spokesman for the Eastern Theatre Command of the People's Liberation Army said in the statement that it remains "on high alert at all times" to "resolutely defend national sovereignty and security".

U.S. 7th Fleet confirmed the transit in a statement. This Taiwan Strait transit is the first conducted by the U.S. in 2026. The presence of the American naval vessels also comes after a period of high-intensity PLA and China Coast Guard “Justice Mission” exercises around Taiwan at the end of 2025.

#China #Taiwan #USA

@asianomics
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🇵🇭 Lawyer files impeachment complaint against Philippine President Marcos

A lawyer filed an impeachment complaint against Philippine President Ferdinand Marcos Jr, accusing him of betraying public trust by allowing his predecessor Rodrigo Duterte to be arrested and taken to The Hague to face trial.

Duterte, president from 2016 to 2022, was arrested and taken to the International Criminal Court in the Hague in March over the thousands of killings that took place during his controversial war on drugs.

Although the lower house of Congress is no longer led by Marcos' cousin, Martin Romualdez, who resigned as House Speaker after being linked to the flood control corruption scandal, it remains dominated by the president's allies, raising doubts about whether the complaint against him can gain traction.

#ThePhilippines

@asianomics
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🇯🇵🇺🇸 Japan PM Takaichi's 1st US visit being eyed for around March 20

Japanese Prime Minister Sanae Takaichi may visit the United States around March 20 for talks with President Donald Trump as she aims to reaffirm the solid bilateral alliance ahead of Trump's trip to China.

Japan and the United States have already begun arrangements for Takaichi's first visit since she became premier last October, with her itinerary likely to be finalized after an expected general election next month.

She can also coordinate the longtime allies' policy stances on China with Trump, who is expected to hold a summit with Chinese President Xi Jinping in April.

#Japan #USA

@asianomics
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🇰🇷🇰🇵 Former Yoon administration staff linked to alleged North Korea drone intrusion

Two civilians suspected of involvement in sending a drone into North Korea were found to have previously worked at the presidential office under the former Yoon Suk-yeol administration.

According to local reports, a suspect believed to have made the drone, whom the police identified only as being in his 30s, previously served as a news monitoring staff member at the presidential spokesperson’s office.

He is believed to have worked at the presidential office in Yongsan-gu at a similar time as another suspect in his 30s, who has publicly claimed in an interview with a local broadcaster that he personally flew the drone into North Korea.

#SouthKorea #NorthKorea

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