Category Archives: NEWS DIGEST

One week after the Lao government confirmed construction would begin on the Don Sahong dam in southern Laos, ripples of rumors are leaking that the Lao government might soon commence the notification process for the Pak Beng dam, 100km north of Luang Prabang. Yet another domino to fall in Mekong hydropower development or if built will Pak Beng be a tipping point for regional governments to react with stronger measure against Laos’s plans to become the battery of Asia with little consideration to downstream impacts. Pak Beng’s developer is China’s Datang Corporation. This will mark China’s first official foray into building dams on the mainstream, although it is likely Sinohydro will be awarded the contract for Don Sahong by year’s end.

EXSE FOCUS

Xi Jinping of China Arriving in U.S. at Moment of Vulnerability-NYT The chill on the Chinese economy has eroded some of the sheen attached to Mr. Xi, and some analysts say he may want to project an especially strong image when holding talks in the United States. China’s economy has slowed more abruptly than policy makers have appeared ready for, alarming investors around the world. The government overestimated its ability to keep stock prices aloft, spending billions to bolster the Chinese markets. Mr. Xi’s ambitious reform agenda, including an effort to revive a bloated state sector, has yielded few concrete results.//With the Pope stealing all the thunder earlier in the week, the Xi visit hardly felt like happened aside from an announcement of China’s carbon cap-and-trade program and a few empty promises on cyber-security.  Where was the pressure on the South China Sea, Obama?

Related: Conflict Flavors Obama’s Meeting With Chinese Leader-NYT

Related: Xi Jinping’s Inner Circle Offers Cold Shoulder to Western Officials-NYT

Related: The Obama-Xi State Visit: Any Room for Human Rights?-The Diplomat

Related: 6 Takeaways from Xi Jinping’s US Visit-The Diplomat

Related: Xi Jinping Hears Tough Complaints of American Business-NYT

Xi Jinping Pledges to Work With U.S. to Stop Cybercrimes-NYT The president faced a crowd concerned over China’s barriers to market access, rampant commercial cybertheft and the imposition of intrusive security measures. President Xi Jinping pledged in a speech here on Tuesday night to work with the United States on fighting cybercrime, saying that the Chinese government was a staunch defender of cybersecurity.“The Chinese government will not in whatever form engage in commercial theft, and hacking against government networks are crimes that must be punished in accordance with the law and relevant international treaties,” Mr. Xi said in an address to American business executives. //According to a Guardian article (Xi Jinping says China is not guilty of cyber attacks as he prepares for US visit), Xi denied that China was responsible for cybercrimes—will be interesting to see, if and when Obama applies related economic sanctions.

Related: The Limits of a US-China Cyber Deal-The Diplomat

REGIONAL RELATIONS

What’s behind Beijing’s drive to control the South China Sea?-The Guardian On 26 May, CNN broadcast an unusual clip of a US navy intelligence flight over the South China Sea. The P-8A Poseidon surveillance plane – one of the newest weapons in the Pentagon’s arsenal – had taken off, with a CNN reporter on board, from Clark airbase in the Philippines, once part of America’s largest overseas base complex during the cold war. After about 45 minutes, the plane reached its first target – which had, until recently, been an obscure, almost entirely submerged feature in the Spratly Island group. Fifteen thousand feet below, dozens of Chinese ships tossed at anchor. Their crews had been working day and night for weeks, dredging sand and rock from the ocean floor to fill in a stunning blue lagoon – turning a 3.7-mile-long reef that had only partially revealed itself to the daylight at low tide into a sizable man-made island nearly 1,000 miles away from the Chinese mainland.

Related: The Truth About US Freedom of Navigation Patrols in the South China Sea-The Diplomat

Why ASEAN Economic Community Can’t Ignore the Environment-The Diplomat While the EU has relied on the unbridled supra-nationalism of the European Court of Justice (ECJ), that unsung hero responsible for ensuring the harmonization of standards for all member states, the ASEAN economic community shies away from such lofty institutions. And unlike the EU, ASEAN emerges in a completely different historical age, one where concern for the environment goes hand-in-hand with growth. Without the strong hand of the ECJ orchestrating the binding common standards that put the word ‘sustainable’ in ‘sustainable development,’ ASEAN risks sending its already embattled ecosystem off a cliff. The Southeast Asian region is home to some of the world’s most magnificent and biodiverse rainforests, but today these countries’ environments are being increasingly threatened with environmental disasters that have yet to be addressed seriously.

China’s ‘Silk Road’ Initiative Is at Risk of Failure-The Diplomat The Silk Road Initiative is the major project for Chinese President Xi Jinping. On every state visit and within every diplomatic forum, he has promoted his idea of “One Belt, One Road” (OBOR). Beijing wants to create China-centered infrastructure networks in order to expand its own economic and political influence in Eurasia. But the time when the country was able to make economically unprofitable investments on the basis of political motives is long gone. Beijing had intended to invest more than $900 billion in infrastructure expansion in Eurasia. However, the money is now needed to stabilize its stagnating economy and nervous financial markets. China‘s currency reserves decreased drastically in August.//China is forgiving debt to poorer developing countries. However, if the Silk Road doesn’t work, how will China find new markets for imports and inputs to keep its economy going? Without new infrastructure development deals how can China export its excess steel capacity? Setting up markets with central Asia is much less risky than doing it in Africa. Are China’s choices narrowing?

Averting a China-Vietnam Military Clash-The Diplomat The risk of a military confrontation between China and Vietnam is rising. Although the two countries have enjoyed close party-to-party ties for decades, since 2011 they have both asserted conflicting claims to the South China Sea. Beijing claims 90 percent of the sea as its exclusive economic zone. China has repeatedly moved oil rigs into disputed areas, dredged and occupied parts of the disputed Paracel Islands, and constructed at least one and potentially multiple airstrips, possibly for military use, in the Spratly Islands.//Chinese think tanks are discussing this possibility more and more frequently.

SUSTAINABILITY AND RESOURCE MANAGEMENT

Fading Coal Industry in China May Offer Chance to Aid Climate-NYT The subject of greenhouse gas emissions will be on the table when President Obama hosts President Xi Jinping of China at the White House. Across China’s grimy coal heartland, mines have fallen silent, reduced production or shut down. Miners, owners and officials here wonder whether boom times will return for the “black gold” that has fed the nation’s craving for cheap but dirty energy. “I think it’s finished,” said Wang Jinwang, a longtime miner whose salary has been cut by one-fifth.

Enacting Cap-and-Trade Will Present Challenges Under China’s System-NYT With its heavy-handed interventions, poor statistics and corruption, China will need years to build a market that substantially cuts emissions, experts said. American officials have applauded President Xi Jinping’s commitment to a national market for greenhouse gas quotas as a breakthrough in environmental cooperation. But to work well, Mr. Xi’s pledge, made at the White House on Friday, will demand big changes from a Chinese government accustomed to heavy-handed intervention and skewed statistics. It will take years of effort to build a substantial market that plays a major role in curbing emissions, and even then, it could founder, like similar initiatives elsewhere, experts said.

Related: What You Need to Know About China’s Cap-and-Trade Announcement-The Diplomat

Related: Why the US-China Climate Deal Matters-The Diplomat

China and US agree on ivory ban in bid to end illegal trade globally-The Guardian The two largest markets for illegal ivory agree to enact a nearly complete ban on the import and export of ivory to help reduce the loss of elephants to poaching. While differences on cyber security and talk of sanctions dominated the headlines for Chinese president Xi Jinping’s visit to the US, the two countries also signed up to a major agreement to end the global trade in ivory. The ban would cover “significant and timely restrictions on the import of ivory as hunting trophies” as well as unspecified “significant and timely steps to halt the domestic commercial trade of ivory.” // Collaboration between China and the U.S. is absolutely necessary to end illegal wildlife trade; however, the details from this agreement appear vague and lack specific action. Stay tuned to see if any action ensues as a result of this agreement.

Related: Pressure to halt Hong Kong ivory trade increases after US-China deal-South China Morning Post

Rethinking Hydropower: Reflections on the Lower Sesan 2 Dam-CGIAR The Cambodian government has collaborated with private companies to build dams in the Sesan River, a lower Mekong River tributary which flows through Central Vietnam and northeast Cambodia. The much-anticipated 400-megawatt dam, also known as the Lower Sesan 2 dam project, has an investment of $816 million and was started in November 2012. Primarily owned by China’s Hydrolancang International Energy and Cambodia’s Royal Group, the dam is being built on a section of the Sesan River in Stueng Treng province in Cambodia’s northeast. Most of the electricity will reportedly be sold to state energy provider Electricite Du Cambodge (EDC) or exported to Vietnam under a 40-year contract.

CHINA

Osborne kicks off China visit vowing to be Beijing’s best friend-The Guardian Despite criticism for ignoring growing human rights crisis, chancellor determined for UK to be ‘best partner in the west’. George Osborne has started a five-day tour of China by vowing to make Britain Beijing’s “best partner in the west” despite accusations that the Tory government is cosying up to the Communist party and ignoring a growing human rights crisis and the fight for democracy in Hong Kong. “Where some people are cautious about getting more involved in China, we say quite the reverse. We want to get more involved with China,” Osborne said during a brief question and answer session in Beijing on Sunday that was moderated by Chinese state media.

Google is returning to China? It never really left-The Guardian Google Analytics has continued to transmit data across the Great Firewall despite other services being blocked. With Google reportedly in talks with Chinese authorities about opening a new Android app store, speculation is rife that an agreement could see government-approved apps would come automatically installed on Google’s Android smartphones designed for the Chinese market. Many interpret this step as Google planting a seed for its eventual return to China after exiting the Chinese market five years ago – yet our research at the University of Pennsylvania shows that Google has never completely left.

China manufacturing index falls to six-year low in September-The Guardian Global investors unsettled as survey shows China’s factories cut output, staffing and prices at a faster pace as both new export orders and overall new orders fall. Chinese manufacturing activity fell to its lowest in more than six years in the latest sign of the slowdown in the world’s second-biggest economy, according to a survey released on Wednesday. The latest data was worse than economists had expected and unsettled global financial markets. Uncertainty about the extent of China’s slowdown has been on the radar of investors, particularly after the Federal Reserve mentioned China as one of its reasons for not raising interest rates last week.

Hong Kong’s Umbrella Movement, One Year Later-The Diplomat It has been a year since Hong Kong’s “Umbrella Movement” first fanned hopes that we were witnessing a people power movement capable of pressuring the Central Peoples’ Government into fulfilling the democratic promise of Article 45 of the Basic Law. The Umbrella movement has now all but fizzled out, of course. Public support for the movement waned as the protests caused economic disruption, and activists were eventually cleared out of the streets by December.

SOUTHEAST ASIA

In Myanmar, Peace for Ethnic Rights-NYT If the government wants its nationwide cease-fire signed before the election, it must grant ethnic minorities more autonomy now. For months, the government of Myanmar has been touting progress on a nationwide cease-fire deal, claiming it is a major step toward ending the country’s long-running armed conflicts. But the latest summit meeting on Sept. 9, attended by President Thein Sein and representatives of more than a dozen ethnic armed groups, ended inconclusively.

Myanmar’s Electoral Landscape: Vibrant, But Uncertain-The Diplomat On September 8, Myanmar entered a two-month election campaign period, the culmination of at least a year of excitement, political intrigue, and wrangling among different players. The United States and other international players have been concerned that the elections, expected to take place on November 8, will not be entirely free and fair. But a closer look reveals a very dynamic and fluid picture.

Thailand Blames Uighur Militants for Bombing at Bangkok Shrine-NYT The national police chief was the first top official to explicitly attribute the attack to members of the aggrieved minority in western China. Nearly a month after the deadliest bombing in recent Thai history, Thailand’s national police chief made his most explicit comments on Tuesday about who carried out the attack here and why. The perpetrators, he said, were linked to Uighur militants, radical members of an aggrieved ethnic minority in western China, who struck to avenge Thailand’s forced repatriation of Uighurs to China and Thailand’s dismantling of a human smuggling ring.

Related: Thai police say Uighur trafficking ring behind Bangkok bombing-The Guardian

Related: Thai police say first arrested suspect is the Bangkok bomber-The Guardian

Cambodia activists pin hopes on apps to turn tide of violence against women-The Guardian Women’s groups in Cambodia are using the youth obsession with technology to try to change attitudes in a society where many think domestic violence is normal In Phnom Penh’s bustling cafes, hip-looking young people hunch over their mobile devices. According to Dany Sun, a women’s rights activist likewise armed with a smartphone, this relatively new trend is representative of modern Cambodia. But the technological progress, Sun observes, has not been accompanied by advances on gender equality. Traditional attitudes and cultural norms, which portray women as subservient and inferior to men, continue to underlie the country’s harrowing statistics on violence against women.

Phnom Penh, City Interrupted-The Diplomat Few cities have a more troubled past than Phnom Penh. Once known as the Paris of the East, it was thrown into chaos near the end of the Cambodian civil war, and in 1975 lost its entire population (over 2 million) during one of history’s most atrociously sadistic social experiments. Four years later, Vietnamese troops chased the murderous regime out of Phnom Penh and into isolation, and Cambodia began the seemingly insurmountable task of rebuilding. This included re-populating a ghost city, the once-vibrant capital where only a few foragers and scofflaws remained to survive on what the exodus left behind.

Lao Officials Fail to Enforce Government Ban on Timber Exports-Radio Free Asia A recent ban on the export of raw logs imposed by the Lao government to increase the value of processed wood products is not being enforced in the country’s southern provinces because some national leaders are involved in timber smuggling, a civil society official with knowledge of the situation said. Although Vientiane imposed the export ban on Aug. 18, hundreds of trucks in Champasak, Salavan, Sekong and Attapue provinces, which have more timber than do the northern provinces, are continuing to transport wood to neighboring Vietnam around the clock, the official, who requested anonymity, and locals told RFA’s Lao Service.

YUNNAN

Yunnan’s place in Xi Jinping’s United States trip-GoKunming Chinese President Xi Jinping is in the middle of his first state visit to the United States this week. While the subject of Yunnan was most likely not high on the list of priorities during the president’s first major stop, a small gesture signaled good news for growing business links between the US and his country’s southwestern-most province. On the eve of Xi’s arrival, a Starbucks press release and announced the company hopes to “connect our cultures and people across China and the US”. While a press release and the drinking of a single cup of joe may seem small gestures, coffee has come to have great significance in one of China’s poorest provinces. According to news service Xinhua, Yunnan produces 99 percent of all coffee grown in the country. The industry is expected to generate at least US$5.6 billion in annual revenue by 2020, to a great extent based on Starbucks’ projected store growth.

Animal traffickers busted with 1.4 million yuan in contraband-GoKunming Police in western Yunnan have taken three people into custody suspected of trafficking and selling endangered animal products. The arrests took place in Dehong Prefecture (德宏) following a month-long investigation. More than 200 items were seized, including tiger pelts, rhinoceros horns and ivory. Investigators opened the case in late July after receiving an anonymous tip. The haul of confiscated goods included tiger claws and teeth, tiger skins, red deer antlers, rhino horns, snake skins and jewelry believed to have been carved out ofelephant ivory. Police estimated the seized items to be worth a combined 1.39 million yuan (US$218,000).

This week’s digest was compiled by Brooke Rose with analysis by Brooke Rose and Brian Eyler.

EXSE FOCUS

Solving Southeast Asia’s drug problem – East by Southeast The Obama administration has once again named Myanmar and Laos to its list of twenty-two countries determined to be major drug trafficking countries or major drug transit countries. The White House memo, issued on Monday, noted that Myanmar “failed demonstrably during the last twelve months to make sufficient or meaningful efforts to adhere to their obligations under international counternarcotics agreements.” The United States, however, did extend Myanmar a National Interest Waiver to promote democracy and avoid reduction of aid to Burma as a result of the designation.

Why Beijing isn’t using the Erawan Shrine bombing to its advantage – East by Southeast A connection between Uyghur militants from China’s northwest and the August 17th bombing of Bangkok’s Erawan Shrine has been confirmed. Thailand’s police chief made the link explicit during a news conference Tuesday. While the geopolitical consequences of the connection remain to be seen, Beijing could still stand to benefit from the Erawan bombing. However, fears over domestic implications may keep China from using the attack to their advantage.

Related: Bangkok Bombing: Uighur human trafficker revenge motive – The Bangkok Post

China building third airstrip on disputed East Vietnam Sea islets: expert – Tuoi Tre News China appears to be building a third airstrip in contested territory in the East Vietnam Sea, a U.S. expert said on Monday, citing satellite photographs taken last week. The photographs taken for Washington’s Center for Strategic and International Studies (CSIS) think tank on Sept. 8 show construction on Da Vanh Khan (Mischief Reef) – one of several artificial islands China has created in Vietnam’s Truong Sa (Spratly) archipelago. The images show a rectangular area with a retaining wall, 3,000 meters (3,280 yards) long, matching similar work by China on two other reefs, Da Xu Bi (Subi Reef) and Da Chu Thap (Fiery Cross Reef), said Greg Poling, director of CSIS’s Asia Maritime Transparency Initiative (AMTI). Looks like China’s pledge to stop building and expanding in the SCS hasn’t resulted in anything substantial. PS: congrats to Greg Poling, one of most knowledgeable on SCS issue and new director of CSIS AMTI.

REGIONAL RELATIONS

An unelected dictatorship, Thailand’s government finds China more amenable than America – The Economist PRAYUTH CHAN-OCHA, Thailand’s prime minister, sometimes resembles a ham actor ad-libbing his way through an audition for a role as an unhinged dictator. “You cannot oppose me. No one will let you do that!” he told reporters this month, before threatening to deal with critics by taping their mouths shut. His junta then briefly detained a well-known journalist for publishing articles that “could cause confusion” (on release, he promptly quit his job). Thailand’s lurch back into autocracy complicates its relations with its long-standing ally, America, which has repeatedly called for the restoration of democracy. China, however, has no such qualms. Its relations with Thailand have never been better. China likes to play the “friendly to the dictator” card in SE Asia. Something the U.S. should watch out for: if things turn sour with the U.S., countries can always turn to good ol’ China for support, so the U.S. has only so much wiggle room in its pivot.

Vietnam Cozies Up to Japan in South China Sea Strategy – The Wall Street Journal Vietnam is again building up ties with other countries to help its territorial claim in the South China Sea, this time dispatching the chief of its ruling Communist Party for talks in Japan this week. General Secretary Nguyen Phu Trong, who arrives in Tokyo on Tuesday [article date: September 14], in recent months has played a noticeably more visible role in Vietnam’s efforts to broaden the dispute in the contested waters, where China last year towed an oil-exploration rig into an area claimed by both Beijing and Hanoi.

Japan pledges patrol vessels, loans to Vietnam – Thanh Nien News Japan pledges to provide Vietnam with 200 million yen (US$1.6 million) in non-refundable aid to buy Japanese used patrol ships for its maritime safety in the 2015 fiscal year, according to a joint statement issued Tuesday following Communist Party General Secretary Nguyen Phu Trong’s visit to Japan. Trong arrived in Tokyo on Tuesday for a four-day official visit at the invitation of Japanese Prime Minister Shinzo Abe. The two sides issued the statement on a “joint vision” for their relations after the talks between Trong and Abe, Vietnam News Agency reported. This deal is very similar to Japan’s June deal with the Philippines, when Philippines Pres. Aquino visited Japan, compared Xi to Hitler in the Diet, and then got patrol boats and possibly surveillance aircraft. The Japan – VN – Phils anti-China axis conveniently complements U.S. interests in the SCS.

Balancing act: Vietnam may find itself hosting Barack Obama and Xi Jinping within days of each other – South China Morning Post Vietnam may be forced to perform a delicate balancing act should President Xi Jinping and his US counterpart, Barack Obama, visit within the same timeframe, as expected, later this year. No exact dates have been fixed for Xi’s visit – which will be the first in 10 years by a Chinese president. Hanoi’s invitation for Xi to visit was accepted last year but sources say Beijing only recently confirmed that Xi would come by the end of this year. Vietnam might find itself the prettiest girl in the ballroom as she’s courted by China and the U.S.

Premiers of Vietnam, Laos pledge priority for bilateral rapport development – TuoiTre News Vietnamese Prime Minister Nguyen Tan Dung and his Laotian counterpart Thongsing Thammavong have agreed that the governments of the two countries will keep giving top priority to the promotion of their countries’ special relations. They reached the agreement during their talks in Vientiane on September 14 to discuss measures to beef up comprehensive cooperation between Vietnam and Laos, according to the Vietnam News Agency.

Marine police claim ‘self defence’ in firing on Vietnamese fishermen – The Bangkok Post Thai maritime police said they opened fire on a Vietnamese fishing boat while trying to intercept another vessel in waters near Malaysia last week, a clash Vietnamese state media said killed a fisherman and wounded two others. Officials from the two countries were quoted on Wednesday giving starkly different accounts of the incident and Vietnamese Communist Party media said it could eventually be addressed at the diplomatic level.

Party line on border? Unity – The Phnom Penh Post Opposition leader Sam Rainsy yesterday told his lawmakers to consult with the party and get their facts together before speaking out on the sensitive Vietnam border issue, according to a spokesman. Addressing his troops after almost a month abroad, the Cambodia National Rescue Party president stressed that work would continue on determining whether Cambodia had lost land to Vietnam but called for a more unified and considered approach, said CNRP spokesman Yem Ponhearith.

SUSTAINABILITY AND RESOURCE MANAGEMENT

Kunming-based think tank fighting Myanmar forest loss – GoKunming via ExSE A new project promoting agroforestry as a sustainable alternative to current farming practices in the uplands of Myanmar is underway. Led by the World Agroforestry Centre‘s East and Central Asia regional program, and approved by the country’s Minister of Environmental Conservation and Forestry (MECF), the undertaking aims to reforest mountainous landscapes prone to degradation.

CHINA

Xi Jinping, Chinese Leader, Has Weighty Agenda and Busy Schedule for U.S. Visit – NY Times President and Communist Party Chief Xi Jinping will arrive next week for his first state visit, with meetings with tech leaders in Seattle, with President Obama in Washington, and an address to the United Nations in New York. For China, a priority will be bolstering Mr. Xi’s stature at home, and the events planned should play well on Chinese television. These include meetings in Seattle with American business executives, a 21-gun salute on the White House lawn and a state dinner, followed by Mr. Xi’s first speech before the United Nations in New York.

Obama Hints at Sanctions Against China Over Cyberattacks – NY Times Remarks by President Obama seemed to represent a ratcheting up of what has until now been a quiet effort to warn the Chinese that the United States will not tolerate recent breaches. President Obama warned on Wednesday that his administration was ready to take action against China over online attacks carried out by Beijing or its proxies, publicly raising the specter of sanctions a week before President Xi Jinping arrives in the United States for a state visit.

Despite Crackdown, Chinese Lawyers Vow to Press for Human Rights – NY Times “Braving the wind and rain, we will travel together,” read a statement signed by 276 lawyers across China. The lawyers said they would continue to work for legal rights in China, using a phrase from Shi Jing, or Book of Odes, a collection of poetry from around 3,000 years ago, to express their feelings about the current situation: “The wind and rain are dark, the cocks crow incessantly.” The crackdown on lawyers prompted Zeid Ra’ad al-Hussein, the United Nations high commissioner for human rights, to say in Geneva on Monday that he was “concerned about the detention and interrogation in recent months of more than 100 lawyers in China, in connection with their professional activities, and by the adoption of new laws with far-reaching implications for N.G.O.s.”

China’s energy giant Sinopec to sell off hotels and ditch cars in graft crackdown – Reuters Chinese state-owned energy giant Sinopec Group will sell off most of its hotels by the end of 2017 and get rid of more than 4,000 company cars as part of efforts to root out corruption and waste, it said on Monday. Since President Xi Jinping’s appointment in 2013, the government has cracked down on official corruption and extravagance in China, where the flaunting of personal and often illicit wealth and wasteful public spending have led to widespread criticism of the party. Part of general shift away from SOEs, hopefully this move will improve efficiency in Sinopec. But are SOEs really what’s wrong with China’s economy? 

Home Prices Rise in China for Fourth Consecutive Month – Reuters Average new home prices inched up 0.3 percent in August from the previous month, the fourth consecutive month they had gains, offering hope that the ailing property sector is becoming less of a drag on the slowing economy. Let’s hope this has to do with increasing demand for houses and not some sort of meddling… 

SOUTHEAST ASIA

FBI Probes Malaysia Development Fund – WSJ The FBI has opened an investigation into allegations of money-laundering related to a Malaysian sovereign wealth fund, a person familiar with the matter said. The scope of the investigation wasn’t known. It is the latest in a series of international investigations related to the fund that have been revealed in the past several weeks. The international investigations center on entities related to 1Malaysia Development Bhd., which was set up by Prime Minister Najib Razak in 2009 to help drive the economy. The fund is having difficulty repaying more than $11 billion of debt and is at the center of investigations that are destabilizing the government. Wow! Bad news for Najib. Though a Malaysian government probe found that WSJ’s July allegation that $700m from 1MBD ended up in Najib’s bank account wasn’t true, this problem isn’t going away. Malaysia’s Attorney General got fired after trying to investigate Najib; expect more heads to roll in the coming months as the investigation goes up the power hierarchy… Najib can’t fire the FBI.

It’s Not 1997: Southeast Asian Currencies Slump Isn’t a Crisis – Bloomberg Southeast Asian currencies are tumbling, and that may be a good thing. Indonesia’s rupiah and Malaysia’s ringgit have fallen to levels hit during the Asian financial crisis of 1997-98, leading a decline in the region’s currencies. The drop won’t spark the same economic meltdown this time around, according to analysts who watched the disaster unfold almost two decades ago. In fact, it could be a healthy realignment that helps boost exports.

Grace Poe: I offer myself as your president – Rappler Senator Grace Poe, in the past months the front runner in presidential preference surveys, announced on Wednesday night, September 16, her bid for the highest post in the 2016 elections. Before thousands of supporters and her family and friends at the University of the Philippines Bahay ng Alumni, she said: “Kayong lahat ang pinaghuhugutan ko ng inspirasyon. Kayo ang nagbibigay sa akin ng lakas na i-alay ang aking sarili sa mas mataas na paninilbihan sa bansa.” (I draw inspiration from each and every one of you. You give me the strength to pursue a higher calling for our country.) Poe is riding on popular support from her father, who many Filipinos believe had the presidency stolen from him by former President Arroyo in 2004. But current and extremely popular president Aquino wants current Interior Secretary Mar Roxas, whose popularity is low, to win. Will the Filipino tradition of personality politics carry through the 2016 elections?

Malaysian police fire water cannons at Malay protesters – AP via Yahoo News Police fired water cannons at ethnic Malays who turned unruly Wednesday at a pro-government rally that many fear has the potential to provoke racial trouble in this multiethnic nation with large Chinese and Indian minorities. The rally — a collection of several marches that converged on a central field near Parliament — was ostensibly called to emphasize the dominance of Malays in Malaysia, as well as to support the government of Prime Minister Najib Razak, who is under pressure to resign over a $700 million financial scandal. But the rally is also being seen as a challenge to the country’s Chinese- and Indian-origin residents, who participated in large numbers in an anti-Najib rally on Aug. 29 and 30.

TPP Trade Talks Appeal, Says Somkid – The Bangkok Post Thailand is interested in joining the controversial Trans-Pacific Partnership (TPP) trade pact being touted by the United States, but needs to study the terms and conditions of the new trade bloc first, Deputy Prime Minister Somkid Jatusripitak says. “We are very interested but we must weight ht eadvantages and disadvantages carefully,” Mr Somkid told the Bangkok Post. The 12-member trade bloc’s economic activities represent around 40% of the global economy. Expressing interest put Thailand “on their radar screen,” he said. Let’s see if they get the TPP signed and implemented before other countries start joining …

More than 100 scrubbed from final candidate list – The Myanmar Times November’s election, promised to be the most free and fair in over half a century, prompted a deluge of applicants; 6189 potential candidates representing 92 political parties as well as independent pollsters submitted their credentials to the UEC. After an application and scrutiny period complicated by devastating floods, the UEC’s delayed list enumerated 6065 candidates, with the ruling party one of just a few to have escaped the district commission’s inspection unscathed.
Related: Principle over Detail in NLD Election Manifesto – The Irrawaddy
Related: Myanmar’s Electoral Landscape Vibrant, but Fraught with Uncertainties – cogitASIA

National scene: Indonesia, UAE sign deal on weapon production –The Jakarta Post Indonesia has agreed to grant licensing of SS2 assault rifles to the United Arab Emirates (UAE) to enable the latter to produce and market the weapons. Under an agreement between Indonesian state-owned arms maker PT Pindad and the UAE’s Continental Aviation Services, the UAE becomes the official distributor of the Indonesian weapons in the Middle East.

Speaker vows to pass BBL before end of the month – The Philippine Star Leaders of the House of Representatives said yesterday they would exert all efforts to pass the proposed Bangsamoro Basic Law (BBL), which seeks to create a new autonomous region in Mindanao, before the end of the month. Speaker Feliciano Belmonte Jr. and Cagayan de Oro Rep. Rufus Rodriguez, chairman of the ad hoc committee that drafted the proposed law, issued the statement during the opening of the exhibit of the Office of the Presidential Adviser on the Peace Process in the House of Representatives. The BBL would do much to develop Mindanao, which as of now lags behind the rest of the Philippines. Anti-Muslim sentiment, incited after a January massacre of over 40 police officers, continues to hamper the BBL’s chances of passing.

This week’s news digest was compiled by John Juenemann, who also added analysis. 

EXSE FOCUS

China Is Recreating the American ‘Hub-and-Spoke’ System in Asia – The Diplomat Participants discussed topics including Asia’s financial future, development and security, the postwar international order, China’s “One Belt, One Road” initiative, energy security, counter-terrorism, and the role of NGOs in developing Asia’s identity, as well as the role of the media in building trust.

Related: Is the Czech Republic China’s New ‘Bridge to Europe’? – The Diplomat

Related: Understanding China’s Eurasian Pivot – The Diplomat

Related: China’s ‘One Belt, One Road’ looks to take construction binge offshore – Thanh Nien Daily 

Setback for Sino-Thai Rail Projects – Bangkok Post The Sino-Thai railway project with routes from the Northeast to Bangkok and the East will be delayed for about nine months because of questions about construction costs and unfinished surveys. Transport Minister Arkhom Termpittayapaisith conceded that hurdles remained after a meeting on the project with Chinese authorities at a Bangkok hotel on Friday.//Evidence that the “sign first, ask questions later” approach is alive and well in the Xi Jinping era. There are fewer nuts harder to crack in Southeast Asia than the rivalries among Thailand’s ministries. China underestimated the difficulty level of this task. Insight into the flavor of One Belt One Road projects.

Suspected mastermind of Bangkok bombing believed to be in China – The Guardian Abu Dustar Abdulrahman, known as Izan, travelled to Bangladesh the day before attack and later left for Beijing, police say.//Look for exclusive analysis from Will Feinberg on the unraveling Erawan case and connections to China. We can imagine rail project delays above being linked to Sino-Thai tensions evolving out of Erawan case.

Related: India, Thailand Pledge to Deepen Defense Ties – The Diplomat

Related: Bangkok bomb linked to East Turkestan Islamic Movement, as Chinese media stops downplaying issue due to sensitivities over Uygurs – SCMP

Related: Somyot orders strengthening of immigration rules – The Nation

Related: Bomb plotters’ money trail detailed.

Lao National Assembly Approves Don Sahong Dam – East by Southeast Regional media and NGOs in Southeast Asia are calling the controversial Don Sahong dam on the Mekong River a “time bomb,” and the project’s recent approval by the Lao PDR government has initiated a ticking countdown.//Dams on the Mekong’s main stem are not a good idea.  Wait wait wait, until research shows this is an effective project for Laos.

Related: NGOs, Cambodia Voice Alarm at Lao Decision to Proceed with Don Sahong Dam – Radio Free Asia

Related: Laos Dam a Black Eye for Mekong Cooperation

Chinese Citizen Held by ISIS Poses Test for Beijing – NYT Some foreign policy experts hope Fan Jinghui’s capture will prompt Beijing to consider sending military resources to the Middle East to help reclaim territory held by Islamic militants.//China needs to step up participation in collective security efforts and cut its teeth abroad in conflicts like this especially if it wants to defend the Middle East/Strait of Hormuz in the future as the US considers military scaledown in the region. Time for China’s foreign policy to evolve.

Related: ISIS Says It Has Foreign Hostages – NYT

Related: Islamic State Threatens Chinese Hostage – The Diplomat

Myanmar: Shan Villagers and the Salween Dam Fight – The Diplomat The increasing army presence to defend the construction of a controversial Salween river dam in southeastern Myanmar’s Shan state has sparked heightened concerns among rural villagers, who are determined to fight the development that threatens their livelihoods.

Related: What is it about No that SMEC doesn’t understand? – East by Southeast

ASEAN’s Dirtiest Challenge Makes an Unwanted Return – The Diplomat Can the region successfully tackle its haze problem?//No.

Related: Hazing rituals – The Economist: Asia

Related: Air quality at ‘unhealthy’ levels in Singapore and Malaysia as haze from Indonesia forest fires blankets the region – SCMP

Related: Airport in Riau paralyzed as haze grows thicker – The Jakarta Post

REGIONAL RELATIONS

China to hold live-fire drills in Taiwan Strait – The Guardian Chinese military will carry out three days of exercises close to disputed territory, as Taiwan practises its own response to submarine attack.

Related: Taiwan Practices Repelling PLA Invasion as China Conducts Firing Drills in Taiwan Strait – The Diplomat

Explaining China’s New ‘Commitments’ on the South China Sea – The Diplomat Wang Yi, China’s foreign minister, made the biggest impression on August 3, just before the meetings proper. He called a press conference to announce that China would keep five commitments on the South China Sea issue.

Related: Watch Out China: Vietnam’s Coast Guard Will Fight Back – The Diplomat

Related: A New Indonesia Military Boost Near the South China Sea? – The Diplomat

Related: South China Sea: Satellite Imagery Makes Clear China’s Runway Work at Subi Reef – The Diplomat

Related: Philippines, Australia to Hold Joint Military Exercises – The Diplomat

China Flexes Tech Muscles Before a State Visit – NYT As President Xi Jinping of China prepares for his first state visit to the United States this month, Washington has warned that it could hit Chinese companies with sanctions over digital attacks for trade secrets.

Related: Cyberattacks are ‘not acceptable’, Obama warns ahead of Xi Jinping’s state visit – SCMP

Related: US prosecutors drop fraud charges against professor accused of offering secret technology to China – SCMP

Related: Obama cancels traditional Waldorf Astoria hotel stay after Chinese takeover – The Guardian

Deportation dilemma: Is Beijing deliberately hindering expulsion of 39,000 Chinese from the US? – SCMP In early June, in cities across America, US immigration agents arrested more than two dozen Chinese nationals with unfulfilled deportation orders, telling them that after years of delay, China was finally taking steps to provide the paperwork needed to expel them…//Once again, a double standard defines the US-China relationship. 

Malaysia Likely to Pass TPP Despite Najib Troubles: Expert – The Diplomat Support deemed sufficient for country to get mammoth free trade pact through.//Evidence needed on how the US is backing Malaysia and Najib to help pass TPP there.  Anyone looking into this past the TIP upgrade?

Confirmed: Indonesia to Rejoin OPEC in December – The Diplomat Jakarta is set to return to the Organization of Petroleum Exporting Countries later this year.

        Related: Is Jokowi Turning His Back on ASEAN? – The Diplomat

3 Men Laundered Over $5 Billion for Drug Cartels, U.S. Says – NYT Using the Chinese counterfeit market, a group of Colombians “provided the lifeline for drug cartels to operate and push illegal drugs into the United States,” the Drug Enforcement Administration said.

Australia’s treaty-making process is broken. The China free trade deal is a case in point | Peter Whish-Wilson – The Guardian Australia’s treaty-making process is so flawed it is hard to have any confidence in the claimed benefits of deals like the China-Australia Free Trade Agreement (Chafta).

Related: China free trade agreement should be renegotiated or blocked, say unions – The Guardian

SUSTAINABILITY AND RESOURCE MANAGEMENT

Satellites to show the way forward for Mekong region – The Nation EFFICIENT NATURAL resource management, disaster warning and a reduction in the effects of climate change on the Lower Mekong region will be enhanced thanks to the SERVIR – Mekong project.//Effective programs outcomes from the US-led Lower Mekong Initiative are slowly trickling out. The US could and should increase its touch on the LMI. 

Related: Climate Change and Migration Across the Bay of Bengal – The Diplomat

Related: Tun Lwin: ‘Each Year There is Drought in the Dry Zone, Flooding in the Delta’ – The Irrawaddy

President ‘did not discuss’ Myitsone dam in China, says Ye Htut – DVB President Thein Sein did not engage in discussion about the Myitsone dam project when he met with China Power Investment Corporation (CPI) during his visit to China, says Information Minister and Presidential Spokesman Ye Htut.

Tianjin blasts: plans to turn site into ‘eco park’ mocked on Chinese social media – The Guardian Netizens describe proposal to rehabilitate explosion crater into lake as ‘disgusting’ with many concerned the blast site will remain a toxic mess for years.//See article below from China Dialogue on how China needs to take its time with soil pollution cleanup.

Related: Mainland Chinese authorities end search for missing from massive Tianjin warehouse explosion – SCMP

Related: China issues guidelines on handling dangerous industrial dust in wake of fatal explosion – SCMP

Related: Explosion at chemical plant in China’s eastern Zhejiang province; no casualties reported – SCMP

Related: Report on Toll From Shandong Blast Is Called ‘Coldblooded’ – NYT

China: Quantitative Easing and the Pollution Problem – The Diplomat Beijing could give new life to market-oriented reforms with a decisive program of cleaning up the environment as a quantitative easing measure, accompanied by efforts to steer consumer businesses to some of the cleaned sites, as a flagship program of the new five-year plan.

Related: Beijing approves masterplan to protect environment after decades of breakneck economic development – SCMP

Related: Something in the air: mysterious black belt of filth appears over Chinese city – SCMP

Related: Beijing Slams Henan Capital for Using Scarce Fresh Water to Combat Smog – ChinaFile

Related: China ‘should avoid rush job’ on cleaning up soil pollution – Chinadialogue

Mongolia’s Mega Coal Mine Deal Likely to Stall, Again – The Diplomat The Tavan Tolgoi coal mine in southern Mongolia is one of the world’s largest undeveloped coal deposits…Mongolia is being dug up and sold to China.

Related: China’s Energy Security Achilles Heel: Middle Eastern Oil – The Diplomat

Related: International Energy Agency’s new chief calls for China ‘partnership’ during first official trip – SCMP

Related: China helps Pakistan build world’s largest solar farm – The Third Pole

The ugly truth about Vietnam’s floating markets – Thanh Nien Daily While inhabitants of a market on the Mekong dump rubbish and relieve themselves in the waters, authorities still ponder what needs to be done.//Another example of a good thing growing too fast, lacking regulation, and ultimately facing prohibition. These markets would likely be labeled as “dirty, messy, substandard” in China and wiped from the waters despite important cultural and social networks created (not considering tourism dollars). Taxing and regulating the waters will be challenge for vein of market, traditionally known for avoiding state control.

Related: Pollution forces thousands of fish to surface for air on Saigon canal – Thanh Nien Daily

NCPO orders removal of fishing traps – The Nation FISHERMEN LAMENT LOSS OF TRADITIONAL LIVELIHOOD AS ALL EQUIPMENT REMOVED.

Related: Cambodian NGOs, Provincial Officials Applaud Interior Minister’s Warning Against Illegal Fishing – Radio Free Asia

Related: Rights body to hear SEZ land seizure concerns – The Nation

CHINA

China’s Response to Stock Plunge Rattles Traders – NYT In addition to imposing extraordinary restrictions on the sale of stocks, the authorities have harnessed a security apparatus usually more focused on political dissent.

Related: Global recession in next two years is ‘most likely’ scenario, says economist – The Guardian

Related: China’s Controversial Circuit Breaker Proposal – The Diplomat

Related: South Africa’s Inexplicable Love Affair with China – ChinaFile

Related: Modi asks billionaires if China’s pain can be India’s gain – Thanh Nien Daily 

China’s central bank governor says yuan has stabilised against the dollar – The Guardian Zhou Xiaochuan tells G20 meeting in Turkey the exchange rate ‘tends to be stable’ in the wake of the yuan’s devaluation and stock market chaos.

Related: London property developers eye Chinese buyers disillusioned with stock markets and devalued yuan – SCMP

Related: China’s Forex Follies – Project Syndicate

Overhaul of Chinese state-owned firms splits them into commercial and not-for-profit operations – SCMP Beijing has issued new guidelines for state-owned enterprises, splitting them into two main groups – those that are commercially orientated, and others that are focused on not-for-profit operations, sources said.

Iran’s Foreign Minister to Visit China – The Diplomat China and Iran will discuss their relationship under the “new circumstances” of the nuclear deal.

Related: China or Iran: Who Is the Bigger Threat to U.S. Airpower? – The Diplomat

Related: How China and India’s Noisy Nuclear Subs Contribute to Instability in Asia – The Diplomat

Related: Russia and China in the Arctic: Is the US Facing an Icebreaker Gap? – The Diplomat

China’s Military Cutbacks – NYT China announced that it would cut 300,000 troops, its largest reduction in nearly two decades.

Related: Foreign Investors and China’s Naval Buildup – The Diplomat

Related: Amnesty As a Stepping Stone to Rule of Law – ChinaFile

How Foreign Analysis of China’s Military Parade Missed the Point – The Diplomat Most outside analysis of China’s parade was surprisingly sensationalized, superficial, and over-interpreted.

Related: China, Egypt Consolidate Ties After Sisi’s Attendance at Military Parade – The Diplomat

Related: Remembering Yunnan’s Role in World War Two – GoKunming

Ex-chairman of state-owned China Resources to face bribery, embezzlement, adultery charges – SCMP Song Lin’s expulsion from Communist Party paves way for former head of conglomerate with five Hong Kong listed subsidiaries to be charged, China’s graft watchdog says.

Related: Two Chinese state firm officials face bribery charges in Kenya – SCMP

Related: China’s anti-graft watchdog again warns against dark side of the mooncakes – The Guardian

China Vows to ‘Intensify’ Fight Against Tibetan Separatists – The Diplomat Plus, new railways, military reform, and China in Southeast Asia.

Related: China marks 50th anniversary of Tibetan government with huge rally in Lhasa – SCMP

Related: Two More Tibetans Are Detained Following Solo Protests in Ngaba – Radio Free Asia

Related: I’m with the banned: China blocks Bon Jovi gigs – The Guardian

Will China’s growing box office dominance change Hollywood forever? – The Guardian China will overtake North America within three years to become the world’s largest film audience – which is great news for fans of Transformers and endless Terminator sequels.

Related: China accused of fraud over patriotic epic which shot down Terminator – The Guardian 

SOUTHEAST ASIA

In Myanmar, a Soft Coup Ahead of an Election – NYT The army is manipulating the political scene again to ensure that it remains in charge, election or not.

Related: Myanmar’s Suu Kyi calls for free and fair elections as campaign starts – SCMP

Related: Election 2015: Soe Thein spends big in campaign bid – DVB

KIA, govt troops clash as peace talks proceed – DVB Burmese government forces have clashed with the Kachin Independence Army (KIA) in northern Burma, as President Thein Sein meets with leaders of the five major ethnic armed groups (EAOs) in Naypyidaw today to negotiate and finalise a date for the signing of a Nationwide Ceasefire Agreement.

ADB, Myanmar Sign Framework Agreement to Expand Trade Finance – ADB The Government of Myanmar and ADB signed a framework agreement today that will allow ADB to expand its Trade Finance Program into Myanmar.

Related: GMS Ministers to Meet in Myanmar on Infrastructure Development – ADB

DNA on weapon does not match men accused of killing British tourists in Thailand – The Guardian Forensic expert says DNA found on bloodied garden hoe does not belong to two men standing trial for deaths of Hannah Witheridge and David Miller.

Related: Thailand frees UK academic Wyn Ellis – The Guardian

Related: British academic detained at Bangkok airport for four days – The Guardian

Thailand’s Military Junta Rejects Draft Constitution – NYT Thailand’s military junta extended its rule by at least seven months when its reform council voted against a constitution written by its own drafting committee.

Related: Curiouser and curiouser – The Economist: Asia

Related: How to Save the Thai Economy – NYT

Related: ‘Don’t oppose me’: Thai Junta leader warns critics will be prosecuted – SCMP

Related: No peace soon in Thailand’s Deep South – New Mandala

Peter Dutton holds ‘productive’ talks in Cambodia over refugee resettlement – The Guardian Immigration minister’s visit comes after Cambodian government official said there were ‘no plans’ for the country to accept any more refugees from Nauru.

Related: Cambodia’s Montagnard Problem – The Diplomat

Related: Australian refugee deal with Cambodia dealt another blow after Rohingya man requests to go home – SCMP

Related: For China, Migrant Crisis Is Someone Else’s Fault, and Responsibility – NYT

Related: Police smash people-smuggling ring which brought more than 200 illegal Vietnamese workers to Hong Kong – SCMP

Cambodia’s Hun Sen Orders Arrest of Map Detractors Amid Vietnam Border Dispute – Radio Free Asia Cambodia’s Prime Minister Hun Sen on Tuesday ordered police to arrest anyone who accuses the government of using “fake” maps and ceding national territory amid an ongoing political dispute over the demarcation of the Southeast Asian nation’s border with neighboring Vietnam.

The Challenge of Sustaining Asia’s Progress – ADB The launch of the SDGs later this month and the possibility of a global climate change deal by the end of the year will be two crucial pieces in the framework needed to drive continued economic success in Asia, says Independent Evaluation.

Related: Urbanization and Migration in Developing Asia – The Diplomat

Related: Asean bid to draw tourists from India – The Jakarta Post

Related: Proposed Lao Curbs on NGOs Seen as Choking Development Projects – Radio Free Asia

Singapore votes in snap election as opposition seeks end of one-party dominance – SCMP Singaporeans began casting their votes today in a snap parliamentary election after a heated campaign that boosted opposition hopes of further eroding half a century of dominance by the ruling party.

Related: What to Expect From the Next Government in Singapore – Asia Unbound

Related: Malay Pride Rally Stokes Race Politics in Malaysia – The Diplomat

This week’s new digest was compiled by Julia Zielinski with comments by Brian Eyler.

A huge week for Asia. An epic stock market tumble in China had repercussions for markets globally and has raised questions over China’s economic strength, while a 3% devaluation of the yuan has stoked fears of a possible trade war. Much for Xi and Obama to talk about next month. In Thailand, a key suspect, thought to be a foreigner,  in the Erawan shrine bombing has been arrested. In the apartment he was found in, Thai authorities recovered bomb making materials and a stack of fake Turkish passports. Theories linking the bombing to the repatriation of scores of Uyghur refugees ealrier this summer seem to be correct. Stay with ExSE as the investigation digs further. 

EXSE FOCUS

Wall St. Slips Lower After a Wild Week – NYT Investors were calmed by strong growth figures from the United States, while China continued to take measures to shore up stocks and the renminbi. // The government announced earlier this year its plan to freeze annual GDP growth at 7%.  Recent stock slips could cause problems with this carefully calculated maneuver.

Related: Zombie Factories Stalk the Sputtering Chinese Economy – NYT

Related: Political Risks May Foil Economic Reform in China – NYT

Related: Press freedom watchdog calls for release of Chinese business reporter – The Guardian

Related: The US Still Runs the World – Project Syndicate

How to Solve China’s Currency Parity Puzzle? – ChinaFile The yuan lost about 3 percent of its value against the U.S. dollar between August 11 and 13, roiling global equity markets and stoking fears that China had pushed a trade war button.

Related: What does China’s Shock Yuan Devaluation mean for Africa? – China in Africa: The Real Story

Chinese Media Jumps on Tragic Virginia Shooting – ChinaFile Within China, the high rate of gun violence in the United States is widely known and often seen as a flaw in the U.S. political system, a criticism repeated after the Virginia shooting.

Thai Police Announce Arrest in Bangkok Shrine Bombing – NYT The Thai police on Saturday arrested a foreign man who they said was likely to have been involved in the Aug. 17 blast, which killed 20 people.//Look for ExSE’s analysis of the Erawan bombing, the search for the culprit and its connection to Uyghur and Pan-Turkic nationalism in SE Asia this week. 

Related: Bangkok Bombing Spotlights Uyghur Woes in Southeast Asia – The Diplomat

Related: Hongkongers allowed to cancel Bangkok trips dated up to September 10 after shrine blast – SCMP

National Security Adviser Meets With Chinese President Before His U.S. Visit – NYT Susan E. Rice met with President Xi Jinping and other officials and discussed a number of issues that included areas of tension between the two nations.

Related: China’s Vulnerability Is a Test for U.S. Presidential Candidates – NYT

Related: Can President Xi’s September Visit Save US-China Relations? – The Diplomat

Related: US-China Strategic Rivalry: Balancing the Rebalance – The Diplomat

Sit-In Leaders Are Charged in Hong Kong – NYT Three students who led last year’s pro-democracy Umbrella Movement in Hong Kong were charged over their roles in setting off the massive rallies and sit-ins.

Related: Hong Kong Christian Groups Feel New Scrutiny From Mainland – NYT

Related: ‘Secret’ meeting between Democratic Party members and Beijing official a step on the right path – SCMP

REGIONAL RELATIONS 

A Military Game of Chicken in the South China Sea? – The Diplomat Amid criticisms of China’s island-reclamation activities, the U.S. and China continued to trade accusations that the other is militarizing the South China Sea.

Related: Taiwan and Its South China Sea Peace Initiative – The Diplomat

Related: Philippine Nationalism and the South China Sea – The Diplomat

Human rights groups face global crackdown ‘not seen in a generation’ – The Guardian Laws affecting funding, requiring registration and prohibiting protest are among controls that are making it difficult for NGOs and other campaign groups.

Related: British rights activist charged with defamation in Thailand – The Guardian

Related: Lao Migrants To Be Witnesses in Thai Human Trafficking Case – Radio Free Asia

China, Japan battle to build Indonesia’s first bullet train – The Jakarta Post China and Japan are locked in an increasingly heated contest to build Indonesia’s first high-speed railway, with the Asian giants sweetening deals and turning up the charm as time runs out to woo Jakarta.//Add high-speed rail to the growing list of projects where the Japanese and Chinese. Look for an ExSE report on Chinese, Thai and Japanese cooperation and competition on Myanmar’s Dawei Deep Sea Port project coming soon. 

Chinese oil rig to continue drilling near Vietnamese coast – SCMP A Chinese oil rig at the centre of last year’s standoff between China and Vietnam will continue drilling not far from Vietnam’s coast, China’s maritime safety authorities said on Tuesday.

US visa programme popular with Chinese derided as ‘immigration reform for 1pc’ – SCMP With immigration a hot topic on the presidential campaign trail, unions and immigrant advocates are targeting a federal visa programme popular with Chinese that they deride as “immigration reform for the 1 per cent.”//Tied up in this are discussions about job creation and China pursuing corruption and graft suspects abroad. 

Related: US regulator freezes assets of immigration consultant accused of defrauding 250 Chinese investors – SCMP

US Admiral: China ‘Very Interested’ in RIMPAC 2016 – The Diplomat China was invited to participate in RIMPAC for the first time in 2014, but some have already argued that the People’s Liberation Army Navy (PLAN) should not be invited back in 2016.

Related: Should the Pentagon Fear China’s Newest Weapon? – The Diplomat

SUSTAINABILITY AND RESOURCE MANAGEMENT

China, US to cooperate in developing ‘clean coal’ technologies to help combat climate change – SCMP Officials from China and the United States have taken a major step towards an agreement to advance “clean coal” technologies that claim to reduce the fuel’s contribution to climate change.//Climate change mitigation continues to be a great point of cooperation between the US and China. Good to see that stress in other areas of the bilateral relationship haven’t prevented building upon past achievements in climate change research. 

Dams ‘destroying Mekong fish stock’ – The Nation Fishermen in delta and Northeast Thailand say dams in China and Laos have hit breeding and yields, forcing many to quit.//ExSE has been personally observing fish stock depletion in Chiang Rai province for the past three years. There is little doubt in our minds that hydro projects on the upper Mekong are indeed causing fish population decline.  

Related: Large dams are not the answer to climate change in the Mekong Region – Mekong Commons

Related: Black Markets in China Still Driving World’s Tiniest Porpoise to Extinction – NYT

Adapting to air pollution with clean air stands in China – The Guardian To adapt or mitigate? As with climate change, both mitigation and adaptation are needed to tackle air pollution in China.

Related: Air quality rule changes put heat on local authorities – SCMP

Related: A Small Chinese Experiment With Large Environmental Implications – The Diplomat

Thai Locals Incensed over Krabi Coal Power Plan – The Irrawaddy Many residents of Krabi, a popular tourism province in southern Thailand, are opposing the government’s plan to build a coal plant close to their homes.

Work starts on Vietnam’s first solar power plant – Thanh Nien News Potential is huge as Vietnam records around 2,000-2,500 hours of sunlight annually.

Edinburgh zoo says giant panda Tian Tian lost cub during pregnancy – The Guardian Giant panda had been expected to give birth last week, but experts now suspect she absorbed the foetus into the womb.

Thailand destroys 2-tonne ivory stockpile amid junta crackdown – SCMP Thailand destroyed more than two tonnes of ivory Wednesday – a victory for animal rights groups fighting against the trade in a country renowned for being a hub for illegal tusks.

Related: US praises Thailand for crushing 2.1 tonnes of illegal ivory –The Nation

Related: Vietnam seizes elephant tusks, pangolin scales in large shipment from Malaysia – Thanh Nien News

CHINA

China Holds 23 Linked to Fatal Blasts in Tianjin – NYT Chinese leaders have moved vigorously in recent days to quell outrage over the blasts, which rattled top leaders and raised questions about the safety of China’s industrial zones.// It was never in doubt that officials’ heads would roll over the Tianjin blast – of course many of them are being investigated for corrutpion.

Related: China’s Disaster Management – NYT

Related: Plans submitted to move, upgrade about 1,000 chemical plants in China after Tianjin explosions disaster – SCMP

Explosion at China chemical plant leaves one dead and nine injured – The Guardian One person has been killed and nine injured in an explosion at a chemical plant in eastern China, state media has said.

A Fake Goldman Sachs Underlines a Real Chinese Strength – NYT The investment bank joins a long list of counterfeits that includes Apple stores and British villages.

Related: Fake iWatches, salt, marijuana and Starbucks: A look at China’s counterfeits – SCMP

China arrests Christians who opposed removals of crosses – The Guardian Human rights lawyer and church activists understood to be among people detained after Communist party campaign to take down religious symbols.

Human Rights Lawyer Prevented From Flying Out of Beijing – NYT Liang Xiaojun is part of a large circle of rights lawyers in China, hundreds of whom have been questioned or detained since early July in a crackdown.

Related: The death penalty is in its final throes, but too many are still being executed – The Guardian

Top bosses at website of Communist Party newspaper People’s Daily detained for suspected graft – SCMP The president and a vice-president of People.cn – the website of People’s Daily – have been taken away by Henan prosecutors for alleged bribery, state media reported yesterday.//It appears that with the arrests of journalists for reporting ‘fake information’ on China’s stock market crash, and now this, that Xi’s anti-corruption drive has switched gears. As an acquaintance said, “We always knew you couldn’t talk about politics, but now it seems you can’t talk about anything.”

Related: China’s Communist Party silences former critic, the liberal Nanfang news group – SCMP

China Denies Sending Additional Troops to North Korean Border – The Diplomat China’s state media stayed away from the story – in fact it appeared that censors were actively deleting the relevant social media posts – and on Thursday, China’s Defense Ministry officially denied the reports.

Related: Assessing North Korea’s ‘Ground Game’ with China – The Diplomat

The leading power: China to take charge in Iran’s nuclear plant revamp – SCMP Iranian Vice-President Ali Akbar Salehi, who is also head of the country’s Atomic Energy Organisation, on Friday said China would play “a leading role” in redesigning the Arak heavy-water reactor to significantly reduce its plutonium output.//With the world watching Iran’s post-deal nuclear program, this is a good opportunity for China to positively involve itself in a very significant project. Good to see China taking Great Power responsibility.

Related: China to the rescue? Mugabe banks on Beijing for Zimbabwe’s revival, as opponents jeer – SCMP

Related: Chinese Investment in Africa: Surprisingly Small, but Growing Fast – ChinaFile

Chinese military on charm offensive as it announces joint drills with Malaysia, US and Australia – SCMP The military will hold joint drills with Malaysian forces in the strategic Strait of Malacca next month, the defence ministry said yesterday, as a training exercise launched featuring Chinese, Australian and American troops.

Related: A Swift proposal: US wants coastguard agreement with China to help keep peace at sea – SCMP

Related: Russia and China Kick Off Naval Exercise in Sea of Japan – The Diplomat

Related: Philippines, Malaysia Hold Joint Naval Exercises Amid Security Concerns – The Diplomat // Although the listed reasons for     cooperation do not include protection against China’s militarization in the South China Sea, could this be some early signs of Southeast Asian military alliance against China’s efforts to dominate the territory?

SOUTHEAST ASIA

ASEAN members discuss effective border security – The Jakarta Post Representatives of ASEAN member countries highlighted the importance of effective border security amid rapidly increasing connectivity in Asia during a regional meeting in Bangkok, Thailand, on Monday.//With the ASEAN Economic Community’s implementation happening sometime in the next century, border security will be a priority for ASEAN members. 

UN warns of fresh wave of boatpeople in Asia as monsoon season ends – SCMP A fresh surge of refugees and migrants from Myanmar and Bangladesh is expected to set out in smugglers’ rickety boats for southeast Asia when the monsoon season ends in about a month, the United Nations said.//After a disastrous spring, all eyes should be on the Andaman Sea and Thailand, Malaysia and Indonesia’s handling of the refugee crisis.

Related: A break for the border: Mae Sot – Southeast Asia Globe Magazine

Related: Koh Kong zone ‘will reduce illegal migrants’ – NationMultimedia.com

Myanmar Democracy Icon Finds Herself Assailed as Authoritarian – NYT As landmark elections approach, Daw Aung San Suu Kyi, the Nobel laureate, is being openly criticized by activists, commentators and intellectuals.//ASSK should be a more outspoken proponent of minority rights in Myanmar. Of course, that doesn’t necessarily win you votes with the people who forms her party’s base.

Related: 2 More Opposition Candidates Disqualified by Election Commission – The Irrawaddy Magazine

The Truth About Myanmar’s New Discriminatory Laws – The Diplomat The euphemistically-termed “Protection of Race and Religion” bills raise serious questions about the country’s future.

Related: Rohingya IDPs Detained in Rangoon: Police – The Irrawaddy Magazine

Related: Myanmar Striking Rohingya From Voter Rolls, Activists Say – NYT

Ceasefire date will follow next meeting: govt – DVB Multimedia Group A date will be announced for the signing of a nationwide ceasefire agreement (NCA) after next month’s meeting between ethnic leaders and President Thein Sein, according to the Burmese government’s chief negotiator at the peace talks, Union Minister Aung Min.

Related: Arakan Army Calls for Calm After Bangladesh Border Clash – The Irrawaddy Magazine

Thai soldiers helping Myanmar flood victims – NationMultimedia.com The Royal Thai Armed Forces yesterday dispatched 51 soldiers on a C130 aircraft to help flood victims in Myanmar.

Related: Chin Govt Requests $15.5m Flood Rehabilitation Grant – The Irrawaddy Magzine

Related: ADB to Provide $3 Million For Myanmar Flood Relief – ADB.org News Release

Disputes Continue Over Cambodian Government’s Official Map – Radio Free Asia A Cambodian official in charge of the country’s borders denounced an opposition lawmaker who accused him of lying about a map of the Southeast Asian nation he found in the U.S. Library of Congress, amid ongoing debate over the charts that the government uses to demarcate its border with Vietnam.

That’s a lot of dope: Cambodia seizes US$7 million worth of marijuana hidden in coffee bags – SCMP Cambodian police on Tuesday showed off a seizure of nearly 1.5 tonnes of marijuana worth more than $7 million packed into coffee bags, part of an ongoing drug crackdown in the country.

‘First Lady’ of Cambodia’s Khmer Rouge dies at 83 – Thanh Nien Daily “Her body will be cremated on Monday evening,” her son Ieng Vuth told AFP by telephone from Pailin.

Vietnam to free 18,200 prisoners in amnesty, but no political activists – The Guardian Country’s second biggest-ever amnesty to mark independence celebrations includes release of 34 foreigners.

Related: Hanoi to close 40 streets for National Day parade – Thanh Nien Daily

Malaysia finds mass graves of 24 suspected human trafficking victims – The Guardian Malaysian authorities have found mass graves containing the remains of more than 20 people believed to be human trafficking victims near the border with Thailand, police said on Sunday.

No more Mr Nice Guy – The Economist: Asia DOWN a quiet lane in Kuala Lumpur, Malaysia’s capital, campaigners at trestle tables are doing a roaring trade in yellow T-shirts. The volunteers have already flogged more than 30,000 of the garments, which are becoming de rigueur for Malaysians planning to attend protests on August 29th-30th to demand the resignation of the country’s prime minister, Najib Razak.//Protests ongoing, former PM of Malaysia Mahathir Mohamad has called for Najib’s resignation as well. 

Related: Malaysia blocks website calling for anti-Najib protest over 1MDB scandal – SCMP

Singapore Gears Up for its September 11 Election – The Diplomat The city-state’s next general election will be a key test for its ruling party.

YUNNAN

Yunnan poverty rate drops dramatically – GoKunming Recently released statistics from the Yunnan Office of Poverty Alleviation and Development show Yunnan’s poorest are significantly better off than they were four years ago. While millions continue to live at bare minimum levels, a dramatic decrease in what is termed ‘absolute poverty’ over the past four years is sign for optimism.

Yunnan’s Dulong minority, isolated no more – GoKunming The survey team from Yunnan University found state-funded housing and road projects are transforming the culture of the Dulong people (独龙族), who have for centuries inhabited the Dulong River area largely undisturbed. Now, with the opening of a tunnel and road in 2014, their traditional way of life has been changed and sometimes disrupted by a permanent link to the outside world. // Does the end of isolation in a globalizing world mean the end of zomia?

This week’s news digest was compiled by Julia Zielinski with analysis by Will Feinberg.

EXSE FOCUS

Bangkok Bomb Attack at Popular Shrine Kills at Least 20-NYT A bomb placed inside a Bangkok religious shrine frequented by tourists exploded Monday evening, killing at least 20 people, hurling body parts onto the pavement, shattering windows and creating panic in one of the city’s most popular districts. At least 123 people were reported wounded in what Thailand’s top police official and others called a vicious act meant to target civilians. The explosion came at a particularly busy time of day at the Erawan Shrine, an important tourist attraction in Bangkok’s main shopping area.//Although suspects related to the case have been apprehended, police fear bomber has left the country. Watching CCTV clips of the bomber getting away reminds us of the high levels of video surveillance on every corner in developing Southeast Asia.  

Related: Thai Police Seek ‘Foreign Man’ in Bombing of Bangkok Shrine-NYT

Related: Bangkok Bombing Not Likely to Be Tied to Foreign Terrorism, Thailand Says-NYT

Related: China fears its tourists were target for Bangkok bombers-The Guardian 

Related: Bangkok bomb: Thai capital reeling after deadliest attack in years-The Guardian

Game of thrones: The Economist RESIDENTS of Bangkok, which has seen more than its share of political unrest, sometimes seem hard to shock. But the bomb which exploded at the Erawan shrine in Thailand’s capital on August 17th, killing more than 20 people and injuring about 100, has unnerved and bewildered in equal measure. It was timed to explode at a packed intersection during the evening rush hour. Grainy video footage just before the blast shows a young man slipping off a rucksack near the site. Some blame Muslim separatists in Thailand’s deep south. Others say it is “red-shirt” supporters of the populist government driven out in a coup last year.

Obama Administration Warns Beijing about Covert Agents Operating in U.S.-NYT The Obama administration has warned Beijing about the presence of Chinese government agents operating secretly in the United States to pressure prominent expatriates to return home immediately, according to American officials. The American officials said that Chinese law enforcement agents covertly in this country are part of Beijing’s global campaign to hunt down and repatriate Chinese fugitives and, in some cases, recover allegedly ill-gotten gains. The Chinese government has officially named the effort Operation Fox Hunt.//The Sino-US relationship is a game of tennis where the balls grow spikes with every volley.  

Related: China lashes out at US after claims Beijing is deploying ‘covert agents’-The Guardian

Pentagon to Increase Drone Flights Over South China Sea-The Diplomat The U.S. Department of Defense is planning to step up the number of drone surveillance flights by 50 percent over the next four years the Wall Street Journal reports. A senior defense official told the Wall Street Journal that the Pentagon in particular seeks to improve its intelligence collection capabilities in places such as Ukraine, Iraq, Syria, North Africa, and the South China Sea.

Related: Diplomacy and the South China Sea-The Diplomat

Vietnam Warns of Coming Economic Bombshell for Mainland Southeast Asia-The Diplomat Cambodia, Laos, Vietnam and Myanmar are the poorest, least well-run countries within ASEAN. They are also notoriously publicity-shy. Anything negative that needs to be shared is usually served-up amid a flurry of bureaucratic dogma that tends to bury the bad news. The messages are still there, but one needs to pay attention.

Will China Take Over US Military Facility in Djibouti?-The Diplomat Citing Global Times and Counter Punch, Want China Times says that “Djibouti reportedly ordered the U.S. to vacate the Obock military base so that it can be turned over the People’s Liberation Army.” The United States’ actual permanent base in Djibouti is at Camp Lemonnier; Obock is a port city with an existing airport and naval pier. Washington is reportedly deeply concerned about the move, which would give China its first-ever overseas base — one that incorporates U.S.-built facilities.//China has been monitoring pirates off the north-east African coast in joint missions with the US for nearly a decade. This port if realized fits nicely into China’s plan to defend the 21st Century Maritime trade route with its navy. As mentioned would be a big step in a new direction for the principles of China’s foreign policy – although Xi signaled this step when he took power.   

Vietnamese plea to Thailand: Don’t divert the Mekong-The Nation PEOPLE in Vietnam hope Thailand will reconsider its plan to divert water from the Mekong – because it would seriously affect their ability to produce food. The Mekong Delta is Vietnam’s most important agricultural area. Each year, the area produces the most rice and fruit in the country. This region also nurtures many freshwater fish species, which are an important source of protein for local people. However, this key food production could be jeopardised by large water management projects upriver, Vietnamese experts have warned.//Future dam operators to future everyone else in Southeast Asia: Don’t divert the Mekong. How can a watershed that’s being used for so many other purposes handle/manage/coordinate a cascade of large dams? 

REGIONAL RELATIONS

Towards A Real Solution to Southeast Asia’s Refugee Crisis-The Diplomat It took the foreign ministers of Malaysia, Indonesia and Thailand more than ten days to sign a joint agreement that would allow the rescue of thousands of dehydrated and starving Rohingya and Bangladeshis who had been drifting in the Andaman Sea for weeks. Under enormous international pressure, these three countries offered to help 7,000 people at sea. In fact, their gesture is far less meaningful than it seems.

The Strategic Costs of TPP Failure-The Diplomat The Trans-Pacific Partnership is in trouble. Trade ministers failed last month to conclude the massive 12-nation trade deal by their hoped-for summer deadline, putting negotiations in danger of collapse. This is a problem. Trade advocates argue that letting the TPP die would be a significant lost opportunity for the global economy. But there’s a potentially bigger problem here – one that may have serious consequences for both U.S. national security and regional stability in the Asia-Pacific.

Everybody needs good neighbours-SEA Globe Magazine Australia has been accused of bribing human traffickers, paying off the Cambodian government to take in refugees and spying on East Timorese officials. With geopolitical tensions at boiling point, Australia’s actions could have damaging repercussions for its relationship with Southeast Asia

SUSTAINABILITY AND RESOURCE MANAGEMENT

China’s Carbon Dioxide Emissions May Have Been Overstated by More Than 10%-NYT Scientists may have been overestimating China’s emissions of carbon dioxide, the main greenhouse gas driving global warming, by more than 10 percent, because of inaccurate assumptions about the country’s coal-burning, according to a study published on Wednesday. //Study calls into question studies conducted on U.S. (and other big emitters) carbon emissions. Do these estimates overstate or understate the carbon emitted by other countries? Highlights the importance of continual questioning where scientific predictions/estimation are concerned 

Related: China’s carbon emissions from fossil fuels may be 14% lower than thought-The Guardian

 Red Pandas Are Adorable and in Trouble-NYT The International Union for the Conservation of Nature, which assesses the status of wild populations of animals (red pandas), estimates that about 10,000 live in the wild, in two subspecies, all on mountain slopes in a narrow band running from western China to Nepal. Deforestation and disease threaten them now, and climate change looms. //Part of China’s larger decline in total biodiversity, a trend often made known through the publicized decline of an exceptionally well-known, charismatic species, such as the red panda.

 Chinese mock claims Beijing is most liveable city despite smog lifting-The Guardian Social media users express incredulity that the capital was ranked the country’s best city to live in while disaster-hit Tianjin was ranked the second best. Chinese internet users have mocked a report claiming that Beijing is the country’s most liveable city even as they enjoy unusually blue skies in the lead-up to a major military parade. China’s capital city ranked 69th out of the world’s 140 most liveable cities in the Economist Intelligence Unit’s (EIU) semi-annual survey, released this week.

What Made Chinese Mayors Step Up Pollution Fight?-The Diplomat With demands for swift and decisive action ringing in their ears, municipal leaders have responded by ordering drastic measures, such as tough curbs on sectors including vehicle use, construction, and the burning of coal, all of which produce tiny particulate matter deemed extremely harmful to human health. The Henan city of Zhengzhou saw a miraculous improvement in July, after suffering awful air quality for the first half of the year. More than three weeks ago, air quality reached a “good” level, and almost vaulted the city into the “excellent” category.

Floods cause clean water shortages across Burma-DVB Multimedia Group Flooding has affected 12 out of 14 states and regions since early this month, with western and central Burma suffering the most severe inundation. According to the United Nations, by 11 August about 1.1 million people were affected and 240,000 displaced, while about 700,000 acres of farmland were destroyed, raising fears of food security problems and rising food prices.

Lao Loggers Backed by Corrupt Officials Pillaged Champassak Forests in July-Radio Free Asia Illegal logging in southern Laos’ Champassak province was particularly devastating on forests in July, according to a local police officer, who said businessmen working in tandem with high-ranking officials raced to cut timber in the region ahead of the start of the rainy season.

The Mekong region’s urban future: Why learning from a rural lifestyle could build sustainable cities-Mekong Commons Urbanization in the Mekong Region is transforming societies that were once dependent upon agricultural production, as they become predominantly industrialized and market-based. As this urban expansion unfolds, it is bringing new challenges to urban and rural communities who are changing their lifestyle and livelihoods in order to adapt. Some inhabitants in the Mekong’s emerging cities haven’t fully let go of their rural traditions and habits, raising the question is it bringing a more sustainable lifestyle to established urban communities?

CHINA

Tianjin and China’s Industrial Calamities-NYT The lax enforcement of safety regulations and endemic corruption make for a dysfunctional government.  Tianjin is an important industrial port in northern China, about a half-hour ride from Beijing on the new high-speed rail line. Tianjin is seen as the shape of things to come in the new China. Then on the night of Aug. 12, a series of huge blasts at a hazardous-materials warehouse owned by Rui Hai International Logistics killed more than 100 people and shattered that dream. The explosions reduced the surrounding area to ruins, displacing thousands of local residents, many of whom remain angry at the government’s poor handling of the disaster.

Related: New Concerns in Tianjin Blast After Dead Fish Are Found-NYT

Related: Chinese Report Details Role of Political Connections in Tianjin Blasts-NYT 

Related: Fear of Toxic Air and Distrust of Government Follow Tianjin Blasts-NYT 

Related: Tianjin explosions: sodium cyanide on site may have been 70 times allowed amount-The Guardian

Related: Tianjin blasts: Communist party insists there will be no cover-up as anger grows-The Guardian

China Woes Send Stocks Into Tailspin-NYT Plummeting stock markets worldwide signal that investors have not gotten over the shock of China’s devaluation last week. The selling began in Asia, punishing Chinese stocks once again. It then moved to Europe, walloping markets in Germany and Italy, and ended with a rush for the exits in the United States. Along the way, the price of oil traded near six-year lows and currencies of developing countries suffered further pain. Astonishingly, the currency of Kazakhstan lost a fourth of its value against the dollar after the country’s government let it trade freely in the markets.

Related: Stocks Plunge Sharply for a Second Day on Wall Street-NYT

Related: New China stock market plunge prompts global jitters-The Guardian

 China’s Currency Again Left Out of I.M.F. Basket-NYT China must wait until at least next year for the renminbi to join an exclusive club of the world’s top currencies, the International Monetary Fund said on Wednesday. The fund’s board voted to leave unchanged until Sept. 30, 2016, a basket of currencies used in its operations. China, the world’s second-biggest economy, had wanted the I.M.F. to include the renminbi in the basket along with the United States dollar, the euro, the British pound and the Japanese yen starting Jan. 1.

Chinese police arrest 15,000 for cybercrimes-The Guardian Public security ministry says police have investigated 66,000 websites and 7,400 cases of cybercrime over unspecified period Police in China say they have arrested about 15,000 people for crimes that “jeopardised internet security”, as the government moves to tighten controls on the internet.

China Tests New Missile Capable of Hitting Entire United States-The Diplomat On August 6, China has tested its newest intercontinental ballistic missile (ICBM) with two guided simulated nuclear warheads, according to information obtained by The Washington Free Beacon. The August 6 flight test was the fourth time a DF-41 (CSS-X-20) long-range missile has been tested in the last three years and allegedly confirmed that the ICBM is capable of carrying multiple warheads.

A Chinese Rights Revolution Reversed?-The Diplomat The recent roundup of over 200 rights lawyers in China was greeted with shock in the U.S. But to us, it is not surprising. For all its exhortations for citizens to “use the law as your weapon,” our research indicates that the Communist Party never meant to foster a bona fide rights movement. For years many China watchers saw signs that China was moving in the direction of political liberalization, if slowly. While political reforms have been less dramatic than the better-known story of economic reform, these changes raised hopes that China would pursue a path of gradual political reform that would soften its autocracy and perhaps lead to real democracy.

Tibetan Youth is Detained After Staging Solo Protest in Lithang-Radio Free Asia Police in southwestern China’s Sichuan province detained a young Tibetan man this week after he launched a brief protest in a public square, calling out for Tibetan freedom and the return of exiled spiritual leader the Dalai Lama, sources said. The protest by the still-unidentified youth took place at about 9:40 a.m. on Aug. 18 in Lithang (in Chinese, Litang) county in the Kardze (Ganzi) Tibetan Autonomous Prefecture, a Tibetan monk now living in India and originally from Lithang told RFA’s Tibetan Service.

SOUTHEAST ASIA

Conservatives in Myanmar Force Out Leader of Ruling Party-NYT The party’s leadership did not explain the underlying reasons for the change, but the ouster appeared to be part of a struggle for power. The head of Myanmar’s governing party has been removed from his post in what one aide described as a “coup,” the most visible sign yet of splintering within the country’s military elite and the resurgence of conservative forces that dominated under decades of military rule. //Ongoing  implications of Shwe Mann’s ousting.  Check out ExSE’s analysis here.  

Related: Aung San Suu Kyi Calls Ex-Leader of Myanmar Governing Party an ‘Ally’-NYT

Related: Turmoil in Burma’s military-backed ruling party as leaders are deposed-The Guardian

Related: Burma’s parliament resumes as tensions simmer in military-backed ruling party-The Guardian

 Myanmar’s Best Hope for Peace-NYT Myanmar is one step away from a historic deal that could end seven decades of internal armed conflict. On Aug. 6-7 representatives of the Myanmar government, including from the armed forces, met with leaders of the country’s ethnic armed groups and finalized the text of the Nationwide Cease-Fire Agreement. An adviser to the Myanmar government argues that the nationwide cease-fire agreement is a major step toward ending one of the most intractable conflicts in Asia.

Myanmar’s Elections: Jostling for Power-The Diplomat Myanmar is soon to hold elections for regional/state assemblies, the national parliament, and the president. Voting for the first two, scheduled for November 8, will influence the third – the election of the president, which may take place in February 2016. Much is at stake, not only for political forces within the country but also for powers elsewhere in the region. The process of conducting free and fair elections and their eventual outcome will very likely influence regional politics.

Related: 6,000 candidates registered for November election-DVB Multimedia Group

 Cambodian court jails 11 opposition activists for ‘insurrection’-The Guardian Draconian penalties include 20-year sentences for three of the activists convicted over 2014 protests in Phnom Penh. Eleven Cambodian opposition members and activists have been jailed on insurrection charges, including three who received 20-year sentences, a defence lawyer has said. Rights groups said the draconian penalties, for taking part in clashes in July 2014 over the closure of a key protest site in the capital, were imposed as leader Hun Sen intensifies efforts to smother dissent in a kingdom he has led for more than three decades.

Ruling Party Official Writes Off Sam Rainsy’s Commitment to Cambodia’s ‘Culture of Dialogue’A senior official with Cambodia’s ruling party on Wednesday dismissed opposition leader Sam Rainsy as insincere after he pledged his Cambodia National Rescue Party (CNRP) would scale back criticism of the government for its handling of a border dispute with neighboring Vietnam.

Vietnam jails Australian man for trying to send drug precursor chemicals home-The Guardian Nguyen Ly Toan, 39, gets 20 years after customs agents found contraband disguised as cooking ingredients in a package bound for his wife in Australia. Vietnamese authorities have sentenced an Australian man to 20 years in jail for trying to send drug precursor chemicals through the post. Nguyen Ly Toan, 39, was arrested in July 2013 after Vietnamese customs agents discovered the chemicals in a package bound for Australia.

Why Vietnam is the most investor-friendly country in Southeast Asia-Thanh Nien Daily Vietnam is the most investment worthy place in ASEAN – this is a common response of many foreign investors when being asked about their investment plan in the upcoming years. This is not an exaggeration about Vietnam’s current investment environment as well as its potentiality but is in fact based on valid and practical grounds, where improved economic diversification, international integration, reformed investment legislation and good economic policy must be counted.

This week’s news digest was compiled by Brooke Rose with analysis by Brooke Rose and Brian Eyler.

The big news this week came from Myanmar, where 153 Chinese nationals were sentenced to life imprisonment as punishment for illegal logging in the country’s Kachin state. ExSE will delve into the story and its implications for Sino-Burmese relations later this week. In other news, Cambodia’s senate passed a strict NGO law that threatens to change the way more than 5,000 organizations operate. The law will allow the government to de-register NGO’s if they’re not ‘politically neutral’. 

EXSE FOCUS

Burma sentences 153 Chinese workers to life imprisonment for illegal logging–The Guardian China has lodged a diplomatic protest with Burma after a court sentenced 153 Chinese nationals to life imprisonment for illegal logging. China’s voracious demand for raw materials has fuelled resentment in Burma towards its giant northern neighbour. Regions along Burma’s porous border with China have long been hotbeds for an illegal trade in timber to feed Chinese demand. A court in Myitkyina, capital of Kachin state in the north of Myanmar, handed down sentences to 155 Chinese citizens on Wednesday. Two of those convicted got 10-year prison terms, the rest life sentences. Rule of law suddenly making its way to Myanmar?Another jab at China as Myanmar moves further away from its old patron? Look for ExSE to explore the implications of this case later this week. 

Related: The Dangers of Chinese Interference in Illegal Logging Case-The Irrawaddy Magazine

 Cambodia’s Senate Passes NGO Law, Despite Ongoing Protests Against It–Radio Free Asia Ruling-party Senators in Cambodia’s parliament on Friday predictably approved a controversial law that lets the government regulate the roughly 5,000 nongovernmental organizations that operate in the developing country. A majority of Senators — 44 from the Cambodian people’s party (CPP) — passed the Law on Associations and Non-Governmental Organizations (LANGO), while 11 from the opposition Sam Rainsy Party boycotted the session in protest against the bill that places restrictions on NGOs and associations. The law requires all NGO’s to register activities and finances with government. Government can ‘de-register’ an NGO if it is not ‘politically neutral’. This is a strong move by the the Hun Sen government against those who most often oppose him – activists are right to worry about their future in the country. 

Reopening of US naval base in Philippines could fuel South China Sea row–Investvine The Philippine government on July 16 announced that it will revive a US-built deep-water naval base in Subic Bay, marking the return of military presence there for the first time since George H.W. Bush was in the White House. China’s expansionist ambition in Southeast Asian waters is seen as the main instigator to the military base’s rebirth. Increasingly discordant exchanges between China and the Philippines have, according to security analysts, demanded action beyond the tub-thumping of President Aquino’s anti-China speech making. Another escalation of tensions in the SCS with no end in sight. Quite possible that US troops could be stationed at new Subic Bay base. It would be prudent for the US to avoid a military presence so close to Scarborough Shoal, situation is combustible enough. 

Daniel Russel: Remarks at the 5th Annual South China Sea Conference–East by Southeast On July 21, 2015 at the 5th Annual South China Sea Conference at the Center for Strategic and International Studies (CSIS), Daniel R. Russel, Assistant Secretary, Bureau of East Asian and Pacific Affairs for the US State Department delivered a keynote speech clearly outlining the US position on China’s recent land reclamation action in the South China Sea and its implications for US-China relations.

REGIONAL RELATIONS

Obama to Push U.S. Trade in Kenya as China’s Role Grows–NYTimes Central agreements may help shape a major deal for private investment in Kenya’s infrastructure, while also helping mend relations between governments. Trade between China and Africa, valued at $222 billion in 2014, has been rising swiftly and is now about three times the amount of trade between the United States and the African continent, according to figures from the World Bank and the American government.

U.S. Fears Data Stolen by Chinese Hacker Could Identify Spies–NYTimes The potential exposure of the American intelligence officers could prevent a large number of them from being posted abroad again. American officials are concerned that the Chinese government could use the stolen records of millions of federal workers and contractors to piece together the identities of intelligence officers secretly posted in China over the years.

 Laos and China to Build Bridge to Thailand as Part of Railway Project–Radio Free Asia Laos and China will jointly build a bridge linking the Southeast Asian nation with northeastern Thailand as part of a U.S. $7.2 billion high-speed railway project that has been delayed by numerous setbacks for more than four years, a Lao government official said. Officials from both sides agreed to construct the bridge over the Mekong River to link Laos with Thailand’s Nong Khai province during a meeting in which they resolved to build the much-delayed rail line from Kunming in south China’s Yunnan province to the Lao capital Vientiane, a high-ranking official in the Ministry of Public Works and Transport told RFA’s Lao Service. The cost of this rail line is about equal to Lao PDR’s annual GDP. Laos badly needs infrastructure improvements but vanity projects like this are not the way to go. 

Chinese ship accused of attacking Vietnamese fishing boats off central coast–Thanh Nien News Fisherfolk in Binh Dinh Province have said their boats were attacked by a Chinese ship while they were fishing in Vietnamese waters this week.Nguyen Nhat Ngoc, a 53-year-old captain, told local coast guards on Friday that his boat with three people aboard was at more than 15 nautical miles from the Spratly Islands on Tuesday when an armored Chinese ship chased after them.

SUSTAINABILITY AND RESOURCE MANAGEMENT

Locals worried about plans to divert water from Mekong–The Nation A NETWORK of Thais living along the Mekong River yesterday voiced their concern about a plan to divert water from the river to special economic zones. Beung Kan is one of the provinces on the banks of the Mekong River, which also runs through China, Laos, Cambodia and Vietnam. Jintana pointed out that local farmers and fishermen were already suffering from dams built upstream of the river, and hence they have a reason to worry about impacts from other big projects.

Thai Court Holds Hope for Transboundary Justice in the Mekong–International Rivers The closely-watched lawsuit filed by Thai Mekong communities against the Xayaburi Dam’s power purchase agreement (PPA) reaches a critical juncture Friday, as it is the final day that the Administrative Court will accept evidence into the case. Should the court overturn the agreement, construction on the dam would likely be suspended. 

Silence of the Dammed–Mekong Commons In the ongoing controversy over the costs and benefits of hydropower in the Mekong River basin, there is much debate among governments, private business and civil society especially in Thailand and internationally. But one voice seems to be always silent in this debate: that of the local communities of Laos in whose country at least two mainstream Mekong dams are being built or planned and who will face the brunt of the projects’ impacts.

Cash-strapped farmers forced to watch crops wither away–The Nation AS THE Chao Phraya River Basin runs out of water for farmland, rice farmers are running out of cash. Without water, farmers can do nothing but leave their plants to wither. Without crops, they have no source of certain income. As a result, many farmers have turned to loan sharks to get money to fill their family members’ hungry stomachs. This means the longer the drought crisis, the deeper they will plunge into debt. Based on the grim weather forecasts, there is a risk the drought may drag on for years.

Government water projects set in motion–The Nation THE GOVERNMENT will revive 12 water resource management projects worth more than Bt30 |billion for implementation in 2015-16 to ensure that the country will not face another water shortage over the next decade. Prime Minister Prayut Chan-o-cha said these projects include construction of more water reservoirs and irrigation systems using the annual investment budget plus some state borrowing. In the longer term, he said, the government needs to conduct a feasibility study on water usage resources in neighbouring countries.

Dawei’s coastal calm disrupted by Thailand’s industrial plans–Mekong Commons The Dawei Special Economic Zone (DSEZ) in the Dawei district of Tanintharyi Region is a planned massive multi-billion-dollar project that includes a deep-sea port, heavy industries and extensive transport links. The project has met resistance due to its right violations, land grabbing and potentially enormous ecological impacts on coastal livelihoods. Hundreds of farmers have already lost land to the project, but tens of thousands more would be required to give up farmland if the project continues.

Will China ‘export’ GHG emissions through overseas investment?–China Dialogue Climate change is now firmly at the top of the agenda, especially in China. The world’s largest polluter wants to become an example of a less carbon-intensive economy, one which embraces renewable energy, makes the transition away from coal and has the capacity to capture carbon instead of emit it. But can China ‘decarbonise’ its economy, and what does cutting carbon domestically mean for the rest of the world? Besides being the world’s leading carbon emitter, China is also responsible for major emissions outside its own borders, many of which result from infrastructure projects in Latin America.

Pollution From Copper Mining in Northern Laos Destroying Local Livelihoods–Radio Free Asia A company operating a copper mine in northern Laos’ Oudomxay province is polluting the local environment and destroying the livelihoods of residents, according to villagers, who have called for officials to investigate the firm. A resident of Sawang village, in Oudomxay’s Namo district, told RFA’s Lao Service that domestic firm CNP Exploration Mining and Import-Exports Company had been digging for copper in the area, ruining the local water.

CHINA

Top Chinese Official Is Ousted From Communist Party–NYTimes Ling Jihua, a top aide to China’s former president, was also removed from public office and will be prosecuted on corruption charges. The charges against the official, Ling Jihua, 58, are the result of an internal investigation begun last December by the party’s Politburo, which found evidence that he took bribes, committed adultery and improperly hoarded a large amount of state and party “core secrets,” according to a report by the state-run Xinhua news agency. Ling first entered the hot seat when his son was notoriously killed in a car crash racing Ferraris around Beijing in 2012. Ling reportedly denied his son was invovled and tried to cover up the incident, paying off two women who were involved in the crash to keep silent. The downfall of Ling Jihua, former top aide to Hu Jintao, further proves that no one is safe from Xi’s anti-graft force. Prosecution of such high officials only causing the Chinese rumour mill to churn more – is Xi aiming for a higher target like Ling’s old boss? 

China’s Global Ambitions, With Loans and Strings Attached–NYTimes The country has invested billions in Ecuador and elsewhere, using its economic clout to win diplomatic allies and secure natural resources around the world. Where the Andean foothills dip into the Amazon jungle, nearly 1,000 Chinese engineers and workers have been pouring concrete for a dam and a 15-mile underground tunnel. The $2.2 billion project will feed river water to eight giant Chinese turbines designed to produce enough electricity to light more than a third of Ecuador.

 Trial of Chinese Rights Campaigners on Subversion Charges Continues–NYTimes The proceedings in the southern city of Guangzhou against the three defendants, who have been held for over a year, resumed after a monthlong halt. The trial of three prominent rights campaigners, including a lawyer, on charges of inciting subversion continued on Friday in the southern Chinese city of Guangzhou, amid a sweeping crackdown on human rights lawyers that has drawn international condemnation.

Asia stocks down as China manufacturing weakens–The Associated Press Asian stock markets were rattled Friday by cautious earnings outlooks from U.S. companies and a further deterioration in Chinese manufacturing.

SOUTHEAST ASIA

 Thai officials among more than 100 charged with human trafficking–The Guardian Army general, politicians and police among those charged after dozens of bodies, believed to be of migrants, exhumed from abandoned camps. Thailand’s state prosecutors are pressing charges against more than 100 people, including an army general, in a multinational human trafficking scandal that came to light after dozens of bodies were discovered in the south of the country earlier this year. The sweeping investigation, in which 15 Thai state officials were implicated, began after 36 bodies, believed to be those of migrants from Burma and Bangladesh, were exhumed from abandoned jungle camps near the Thai-Malay border in May. The Thai army has long been rumored to be involved in human trafficking related to sex and fishing trades. 

Related: Thailand Charges 72 With Human Trafficking Crimes Ahead of U.S. Report–NYTimes

Thailand’s Junta Pushes Back Election Date Again–The Diplomat Despite protestations, the coup leader appears to be settling into power. Since taking power in a coup in May 2014, the junta has repeatedly delayed planned elections, claiming that the country needs greater stability before a poll will be held or that the new constitution is not yet finished. After vowing elections in 2016, the deputy chairman of the junta-created legislature now reportedly has declared that elections will not be possible until 2017, since it will take so long to print the new charter and deliver written copies of it across Thailand.

A Thai House Divided–NYTimes Tensions within the military-royalist establishment will complicate the royal succession in Thailand. A rift is growing within Thailand’s military-royalist establishment, threatening the country’s stability and undermining prospects that the upcoming royal succession will unfold smoothly. On one side is an old guard of senior officers who gradually consolidated power during the long reign of King Bhumibol Adulyadej. On the other is a new guard from a semi-autonomous elite military unit at the service of Queen Sirikit, which includes the leaders of last year’s coup against the elected government of Prime Minister Yingluck Shinawatra. Many believe that the 2014 coup was carried out for the express reason of keeping order during the transition period following the King’s death. That Gen. Prayuth’s junta government is causing instability is neither ideal nor surprising. 

Political implications of Thailand’s royal succession–New Mandala The imminent passing of the 87-year Thai monarch, Bhumibol Adulyadej, will send tectonic shock waves through Thailand’s body politic. Bhumibol, the world’s longest-serving monarch, is a pillar of Thai politics. During his reign Thailand emerged as a $390 billion economy, a middle income state. If nothing else, his passing creates an enormous vacuum in Thai politics and there is palpable fear about Thailand’s future without him. The uncertainty is real because the succession has the potential to upend Thai politics.

The ‘boat people’ crisis won’t end until Burma stops persecuting the Rohingya–The Guardian Boat departures have slowed for now, but are expected to resume as the regime steps up its relentless ethnic cleansing. Ebadullah can barely stand. Twenty-six years old and from Burma, he’s weak and weathered, but wants to talk. “If someone tried to move in the boat, they would beat us,” he said. “Those who didn’t move were beaten, too.” Armed gangs have promised jobs and lump-sum payments to families left behind, and have crammed approximately 150,000 men, women, and children — mostly Rohingya Muslims like Ebadullah — into modern-day slave ships. Where is the international pressure against Myanmar for the Rohingya crisis? Nowhere to be found as long as there’s money to be made. 

Related: 155 boatpeople returned to Bangladesh–DVB

Cambodian court jails 11 opposition activists for ‘insurrection’–The Guardian Eleven Cambodian opposition members and activists have been jailed on insurrection charges, including three who received 20-year sentences, a defence lawyer has said. Rights groups said the draconian penalties, for taking part in clashes in July 2014 over the closure of a key protest site in the capital, were imposed as leader Hun Sen intensifies efforts to smother dissent in a kingdom he has led for more than three decades.

YUNNAN

World’s largest solar maker invests in Yunnan–GoKunming Solar power is shining a renewed spotlight on Yunnan. Last week, Trina Solar announced an agreement with Yunnan Electric Power Design Institute to supply solar cells capable of producing 51 megawatts of electricity. These panels will be the first installment of a larger plan to populate some tea-growing areas in Xishuangbanna with photovoltaic generators.The proposed solar farm will eventually reach a capacity of 100 megawatts (MW), enough to power roughly 36,000 homes annually. Despite its tremendous size, all of the electricity has been reserved exclusively for large tea plantations within the prefecture. The power will be utilized to run well-water pumps and irrigation systems already in place within the farms.

Extreme summer weather wreaks havoc around Yunnan–GoKunming Walking through Kunming on a warm sunny day, a casual observer would find little trace of the drought that parched much of the province for half a decade. Running water and frequent rains stand in stark contrast to the water shortages once a constant nuisance for residents of the Spring City. Other parts of Yunnan, however, are not so lucky, experiencing wildly juxtaposed weather, including flash floods and scorching droughts.

This week’s news digest was compiled by Brooke Rose with commentary by William Feinberg.