Asia Pacific News
LAST UPDATE: August 26, 2025
Chinese Negotiator Is Heading to U.S. — WSJ
Senior Chinese trade negotiator Li Chenggang will travel to Washington this week to resume trade talks with U.S. officials, marking renewed dialogue during an extended tariff truce.
Insight
The visit signals a thaw in U.S.–China trade tensions, potentially laying groundwork for dialogue on tariffs, soybean purchases, and high-tech export restrictions.
China to Expand Carbon Market With Major Industries by 2027
The Chinese government plans to broaden its carbon trading market to include major industrial sectors by 2027, as part of efforts to peak emissions by decade-end.
Insight
This expansion represents a pivotal shift toward comprehensive emissions regulation, aligning China’s climate policy with international standards.
South Korea Kicks Off US Deals Bonanza After Trump, Lee Meet
Following a summit between President Trump and President Lee, South Korean firms struck multiple deals with U.S. businesses, including $50 billion in agreements with Boeing and GE Aerospace.
Insight
The flurry of deals reflects strong economic alignment and mutual interest in sustaining South Korea–U.S. industrial ties amid tariff negotiations.
Korea’s Consumer Sentiment Rises to Seven-Year High Ahead of BOK
South Korea’s composite consumer sentiment index rose to 111.4 in August—the highest since early 2018—boosted by optimism around exports and government stimulus.
Insight
Elevated consumer confidence may support domestic demand and validate the central bank’s cautious outlook ahead of policy decisions.
Lutnick says update on Japan’s $550 billion US investment coming this week
U.S. Commerce Secretary Lutnick announced that an update on Japan’s planned $550 billion investment in the U.S. will be revealed this week, with a Japanese trade envoy visiting Washington to formalize details.
Insight
This massive investment proposal could signal deepening economic integration between the two countries across strategic sectors like chips and rare earths.
Japan ministry to request record sum for debt-servicing costs, draft shows
Japan’s finance ministry plans to request a record ¥32.4 trillion (~$220 billion) for debt servicing in next fiscal year’s budget, driven by higher interest rates—projected at 2.6%, the highest in 17 years.
Insight
The rising debt burden underscores Japan’s fiscal strain amid its record-high debt-to-GDP ratio, raising concerns about sustainability and investor confidence.
Quad important for critical minerals for India and Japan, Indian foreign ministry says
India’s foreign ministry stated that the Quad is a crucial framework for cooperation on critical minerals, ahead of PM Modi’s visit to Japan later this week.
Insight
Emphasizing resource security, the initiative reinforces Quad’s role in reducing dependency on China for critical minerals.
India braces for export hit as steep new US tariffs loom
India is preparing for U.S. tariffs of up to 50% on Indian-origin goods starting Wednesday, significantly pressuring exports and complicating trade dynamics.
Insight
The move highlights escalating trade tensions and could prompt India to reassess export markets and domestic policy levers.
Sri Lanka rolls the dice on casinos to power post-crisis tourism boom
Sri Lanka unveiled “City of Dreams,” a $1.2 billion integrated casino resort in Colombo, aiming to boost tourism from 4% to 10% of GDP and attract 3 million visitors in 2025.
Insight
The initiative reflects Sri Lanka’s pivot to luxury-led tourism to drive economic recovery, while raising governance and regulatory challenges.
Indonesia says US agrees tariff exemption for its palm oil, cocoa, rubber
The U.S. has agreed in principle to exempt Indonesian palm oil, cocoa, and rubber from 19% tariffs introduced earlier this month.
Insight
This provides key relief for Indonesia’s commodity exporters and shows Jakarta’s trade leverage with Washington.
Australia’s RBA signals more rate cuts ahead, pace undecided
The Reserve Bank of Australia signaled further interest rate cuts are likely in the coming year, though the pace will depend on economic data.
Insight
The cautious tone reflects efforts to balance easing inflation with maintaining labor market strength.
