Asia Pacific News
LAST UPDATE: August 25, 2025
China says ‘rampant’ US protectionism threatens agricultural ties
Chinese Ambassador Xie Feng criticized widespread US protectionism, noting a 53% drop in US agricultural exports to China in H1 2025, including a 51% fall in soybean exports. He argued that US restrictions are politically motivated and emphasized agriculture as a vital area for cooperation.
Insight
This highlights an escalating economic and political divide between the US and China, where agricultural trade becomes a battleground. The drop in exports reflects the real-world consequences for US farmers, while China’s framing underscores a broader narrative of resisting politicization of trade. The situation suggests increasing volatility ahead if diplomatic and trade negotiations remain unresolved, posing risks not just to agriculture but also to wider economic stability and supply chains.
Bubble Risks Grow as China’s Bull Run Defies Economy Angst
Despite ongoing economic headwinds including property sector issues and U.S. tariffs, China’s stock market continues to rally, raising fears of a market bubble detached from underlying fundamentals.
Insight
The disconnect between asset prices and the country’s economic reality highlights potential systemic risks. Investor optimism amid a weakening economy may result in future volatility or correction, affecting domestic stability and global markets.
South Korea tells China it wants to normalise ties, upgrade economic relations
A South Korean envoy conveyed a message from President Lee Jae Myung to China, expressing intent to restore strategic ties and inviting Xi Jinping to APEC in October. Both countries agreed to strengthen economic and supply chain cooperation.
Insight
This move signals South Korea’s diplomacy pivot, aiming to recalibrate its regional relations amid US-China tensions. By engaging proactively with China, South Korea seeks both economic stability and strategic balance, especially with its proximity to major powers. The balancing act underscores the precarious position of middle powers navigating great-power rivalry.
South Korea, Japan Agree to Boost Ties as Challenges Mount
South Korean President Lee Jae Myung and Japanese Prime Minister Shigeru Ishiba met to reaffirm commitments to closer bilateral cooperation, focusing on regional security and economic collaboration amid North Korean threats.
Insight
This renewed diplomatic engagement indicates a strategic realignment in Northeast Asia, suggesting both countries are prioritizing regional unity in response to shared geopolitical challenges, including North Korea and China’s assertiveness.
Japan PM Ishiba’s Ratings Jump Ahead of Key Election Verdict
Ahead of a key election ruling, Prime Minister Shigeru Ishiba’s approval ratings rose significantly, reflecting public support following recent policy successes and foreign engagement.
Insight
Ishiba’s rebound in popularity underscores the public’s responsiveness to economic and diplomatic progress. The timing suggests he may gain leverage in shaping the political landscape, reinforcing his leadership amid internal party challenges.
BOJ’s Ueda expects tightening job market to push up wages
BOJ Governor Kazuo Ueda stated that Japan’s tight labor market is driving wage increases across businesses, which may prompt additional interest rate hikes later this year.
Insight
This signals a shift in Japan’s economic trajectory toward sustained wage growth, suggesting the central bank may adopt a more assertive monetary policy in contrast to its historically accommodative stance.
US, India Trade Talks Are Moving Forward, Minister Says
India’s Trade Minister Piyush Goyal announced that trade negotiations with the U.S. are progressing positively, with both sides engaged in discussions on tariffs and market access.
Insight
This indicates a continued commitment by both nations to strengthen economic ties, reflecting India’s broader strategy to enhance global trade partnerships amid rising protectionist sentiments.
India Central Bank Chief Says RBI Hasn’t ‘Lost Sight’ of Growth
RBI Governor Sanjay Malhotra emphasized that the Reserve Bank of India remains focused on growth while ensuring financial and price stability, hinting at policy flexibility.
Insight
The central bank’s dual commitment suggests India is preparing to sustain its economic momentum despite external headwinds, reassuring markets of a balanced approach to monetary policy.
Singapore’s Consumer Inflation Eased in July
In July 2025, Singapore’s core inflation rose by 0.5% year-on-year, slightly below the 0.6% forecast. Headline inflation also eased to 0.6%, underperforming expectations.
Insight
The moderation of both core and headline inflation suggests reduced price pressures in Singapore’s economy, potentially easing constraints on monetary policy and signaling stability for consumers and businesses.
NZ PM Says RBNZ Should Have Cut More in Rare Comments
Prime Minister Christopher Luxon admitted he agrees with calls for a larger monetary easing, suggesting the Reserve Bank should have reduced the Official Cash Rate by 50 basis points.
Insight
The PM’s public critique of the central bank reflects urgency in spurring economic recovery, potentially raising questions about central bank independence and influencing future monetary policy.
New Zealand Retail Sales Unexpectedly Rise in Sign of Recovery
Retail sales in New Zealand rose more than expected in Q2, indicating early signs that lower interest rates are supporting consumer activity.
Insight
This increase points to improving domestic demand, signaling the possible effectiveness of monetary easing and optimism for sustained economic rebound.
