Asia Pacific News
LAST UPDATE: September 9, 2025
China pushing ASEAN to seal trade pact upgrade as US tariffs bite
China is urging the Association of Southeast Asian Nations to finalize an upgraded free trade agreement before the end of the year to enhance access in areas like agriculture, digital economy and pharmaceuticals.
Insight
The push highlights China’s pivot to strengthen regional economic ties amid U.S. tariffs, aiming to reinforce its role as a more stable and open trade partner.
New Indonesia finance minister seeks quick boost for economy, says 8% growth ‘not impossible’
Newly appointed Finance Minister Purbaya Yudhi Sadewa said achieving 8% economic growth is “not impossible,” promising rapid economic stimulation without introducing new taxes.
Insight
This appointment signals President Prabowo Subianto’s shift towards aggressive growth strategies amid economic anxiety, balancing investor skepticism with political urgency.
Indonesia’s President Prabowo Subianto fires finance minister in wake of protests
President Prabowo Subianto dismissed Finance Minister Sri Mulyani Indrawati amid deadly protests over lawmakers’ housing benefits, appointing Purbaya Yudhi Sadewa in a wider cabinet reshuffle.
Insight
The move represents a government attempt to appease public unrest, yet raises concerns about Indonesia’s fiscal credibility and the new minister’s alignment with expansive spending.
Bank Indonesia, government seek to allay concerns ‘burden sharing’ deal will reduce independence
Bank Indonesia and the Indonesian government emphasized that their burden-sharing arrangement, financing large public projects, will be handled transparently and with governance to protect the central bank’s autonomy.
Insight
The pact reveals tension between funding development priorities and preserving monetary independence—a balance critical for maintaining investor confidence.
China reviews trade law update as tariff barriers rise
China’s legislature is reviewing its first revision of foreign trade law since 2004, which would broaden countermeasure tools including trade bans, assistance systems, and supply chain stabilization mechanisms.
Insight
The overhaul underscores China’s strategic drive to legalize stronger defense mechanisms amidst growing global protectionism and trade friction.
China’s PBOC extends currency swap pacts with ECB, Swiss, Hungarian central banks
The People’s Bank of China and the European Central Bank extended their euro–renminbi swap line until October 2028, with the swap remaining at €45 billion, alongside similar arrangements extended with Switzerland and Hungary.
Insight
These extensions reinforce financial stability and cross-border liquidity preparedness, reassuring markets amid heightened global volatility.
India Treads With Caution After Trump Softens His Rhetoric
India is cautiously reacting after U.S. President Trump softened his tone, calling Prime Minister Narendra Modi a “great prime minister,” amid ongoing tensions and 50% tariffs.
Insight
While the diplomatic thaw offers a fleeting positive signal, India remains watchful, seeking more concrete commitments before recalibrating bilateral ties.
Thailand Vows to Curb Baht Swings as Currency Hits 4-Year High
The Bank of Thailand pledged to address heightened volatility in the baht, which recently reached a four-year peak, aiming to reduce its sensitivity to gold price fluctuations.
Insight
This step reflects Thailand’s proactive efforts to maintain export competitiveness and tame inflationary pressures amidst global financial shifts.
South Korea wants workers detained in immigration raid to be able to re-enter US
South Korea is in talks with the U.S. to allow reentry for around 300 of its citizens detained in the largest-ever immigration raid at a Hyundai–LG battery plant in Georgia.
Insight
The raid jeopardizes U.S.–South Korea business ties and highlights urgent diplomatic efforts to balance immigration enforcement with preserving critical industrial cooperation.
South Korea says to finalise US trade deal by learning from Japan agreement
South Korea intends to model its U.S. trade negotiations on Japan’s recent pact, aiming for a $350 billion investment package but avoiding certain unfavorable terms such as auto tariffs.
Insight
Leveraging Japan’s trade framework allows South Korea to streamline talks while protecting key domestic industries from uneven concessions.
Japan’s Ruling Party Faces Choice of Wooing Right or Rebranding
Japan’s Liberal Democratic Party is debating whether to pivot further right or rebrand entirely as part of its leadership selection, with candidates ranging from hawkish to reformist.
Insight
This internal contest reflects broader uncertainty over the party’s future direction amid shifting public expectations and regional pressures.
Nineteen killed in Nepal in ‘Gen Z’ protest over social media ban
At least 19 people were killed and over 100 injured in Nepal during “Gen Z”-led protests against a government ban on major social media platforms.
Insight
The violent crackdown signals deepening generational discontent and resistance to authoritarian digital control, raising concerns over civil liberties.
