Asia Pacific News
LAST UPDATE: September 30, 2025
China Inc.’s Already Low Profit Margins at Risk From US Tariffs
Chinese exporters, already operating with thin margins, are increasingly vulnerable to tariff pressures as U.S. trade barriers sap demand and force price adjustments.
Insight
Sustained tariff escalation could squeeze smaller or less diversified firms, accelerating consolidation or pushing more firms to lower-value goods or non-U.S. markets.
Xi Pushes Trump to ‘Oppose’ Taiwan Independence in Major Shift
Beijing has asked the Trump administration to formally declare that it “opposes” Taiwan independence—shifting from Washington’s previous stance of “not supporting” it.
Insight
If Washington yields, it would be a major diplomatic win for Beijing, potentially altering U.S. deterrence posture and pressure on Taiwan.
China urges Japan to stop putting Chinese firms on export control list
China’s commerce ministry criticized Japan’s practice of adding Chinese firms to its export control “end-user list,” calling it harmful and urging reversal.
Insight
The dispute underlines rising tensions in high-tech export controls and could complicate bilateral cooperation in advanced industries.
Japan says economy recovering but US tariff impact seen in auto sector
Japan’s government reported moderate recovery in consumer spending and investment, but warned that U.S. tariffs are exerting pressure—especially in the auto sector.
Insight
The auto industry may act as an early bellwether: if it faces sustained losses, broader corporate investment and wage growth could be constrained.
Japan’s Ruling Party Gears Up to Select Next Prime Minister
The Liberal Democratic Party is preparing its leadership race to choose a successor after Prime Minister Ishiba’s announced resignation, with several high-profile contenders emerging.
Insight
The new leader’s stance on trade, defense, and U.S. relations will be crucial especially under tariff pressures and regional tensions.
Moody’s affirms India’s sovereign ratings, retains ‘stable’ outlook
Moody’s has affirmed India’s long-term sovereign ratings at Baa3 and kept the outlook stable, citing a robust economy, strong reserves, and reliable domestic financing.
Insight
The affirmation signals confidence in India’s external resilience, but the agency noted that revenue erosion could constrain fiscal flexibility.
North Korea tells UN: We will never give up nuclear program
At the UN General Assembly, North Korea declared it will never abandon its nuclear program, framing denuclearization demands as an assault on sovereignty.
Insight
The statement hardens Pyongyang’s negotiating stance and emphasizes that denuclearization will remain a major diplomatic hurdle for the region.
