Asia Pacific News
LAST UPDATE: August 26, 2025
Trump, Lee Hail Agreement on North Korea, Shipbuilding
President Trump and South Korean President Lee Jae Myung celebrated a new agreement on North Korea cooperation and shipbuilding, with Trump expressing interest in Korean ships and Lee noting $150 b in U.S. investments.
Insight
This highlights renewed U.S.–South Korea strategic and economic alignment, with major investment commitments reinforcing their alliance.
Trump says likely to visit China this year or soon after
President Trump stated he expects to visit China “this year or shortly afterwards,” acknowledging improving economic ties while leaving the door open to possible steeper tariffs.
Insight
Trump’s statement suggests a tentative thaw in U.S.–China relations and possible high-level engagement, though tariff uncertainties still loom.
Trade war deepens decline for China’s economic powerhouse province
Guangdong, China’s most powerful economic province, faces factory closures, weakened demand, and slower growth exacerbated by U.S. tariffs and broader structural changes.
Insight
The downturn in Guangdong underscores vulnerabilities in China’s manufacturing hub, with trade tensions accelerating structural economic shifts.
Fitch keeps India rating, flags high debt, US tariff risks
Fitch reaffirmed India’s sovereign rating at ‘BBB–’ with a stable outlook, citing elevated debt (~80.9%) and potential U.S. tariff threats, but recognizing India’s strong growth and external position.
Insight
The maintained rating reflects investor confidence in India’s economic fundamentals, yet highlights external and fiscal vulnerabilities to monitor.
Thai exports beat forecast in July but growth to slow due to tariffs
Thailand’s exports rose 11% year-on-year in July, surpassing forecasts, largely driven by front-loaded shipments ahead of U.S. tariffs, but momentum is expected to slow in the second half.
Insight
The export surge may reflect short-term advantage, but continued tariff pressure could slow growth, posing risks to Thailand’s annual trade.
