Asia Pacific News
LAST UPDATE: May 29, 2025
China says it has maintained communication with US since Geneva talks
China has stated that it continues to maintain “normal communication” with the United States on trade matters, following recent talks in Geneva. This comes amid ongoing tensions and efforts to de-escalate the trade war between the two nations.
Insight
The continuation of dialogue suggests both countries are seeking ways to manage their economic relationship despite underlying frictions. This could pave the way for future negotiations and potential easing of trade tensions.
China vows to open markets to Pacific Island nations as US retreats
At the Third China-Pacific Island Countries Foreign Ministers’ Meeting in Xiamen, China pledged to open its markets to Pacific Island exports, increase aid, and accelerate trade negotiations, positioning itself as a reliable partner amid the US’s reduced engagement in the region.
Insight
China’s strategic outreach to Pacific Island nations underscores its intent to fill the void left by the US, enhancing its influence through economic and diplomatic means without imposing political conditions. This approach reflects China’s broader ambition to expand its global footprint and secure alliances in geopolitically significant regions.
China Defense Minister Skips Singapore Forum Attended by Hegseth
Chinese Defence Minister Dong Jun will not attend the Shangri-La Dialogue in Singapore, marking a departure from past participation. Instead, a lower-level delegation will represent China. US Defense Secretary Pete Hegseth is set to attend and deliver a key speech on Indo-Pacific defense policy.
Insight
The absence of China’s top defense official may signal strained military relations with the US and a cautious approach to regional security dialogues, potentially impacting the dynamics of Indo-Pacific security discussions. This move could be interpreted as China’s reluctance to engage in forums where it anticipates criticism or pressure, thereby affecting multilateral efforts to address regional security challenges.
Japan’s Akazawa Heads to US for Latest Round of Tariff Talks
Japan’s chief tariff negotiator, Ryosei Akazawa, is visiting the US for a fourth round of trade talks, aiming to prevent the imposition of a 24% tariff on Japanese goods. Discussions include potential purchases of US defense equipment and cooperation in shipbuilding and agriculture.
Insight
Japan is leveraging strategic economic and defense collaborations to negotiate favorable trade terms, highlighting the interconnectedness of security and trade in international relations. By proposing purchases of US defense equipment and increased cooperation in key industries, Japan aims to present a comprehensive package that addresses US concerns while protecting its own economic interests.
Japan PM Ishiba arranging to speak with Trump by phone on Thursday, FNN reports
Japanese Prime Minister Shigeru Ishiba is arranging a phone call with US President Donald Trump to discuss tariffs, economic cooperation, and security. This follows ongoing trade negotiations led by Japan’s tariff envoy, Ryosei Akazawa.
Insight
Direct communication between national leaders indicates the high stakes of the trade discussions and the importance of top-level engagement in resolving complex economic issues. Such interactions can expedite negotiations and signal mutual commitment to finding common ground, potentially leading to breakthroughs in areas where lower-level talks have stalled.
Bank of Korea Cuts Rates, Slashes 2025 Growth Outlook
The Bank of Korea reduced its benchmark interest rate by 0.25 percentage points to 2.5% and lowered its 2025 GDP growth forecast from 1.5% to 0.8%.
Insight
The Bank of Korea’s decision to cut interest rates and downgrade growth projections reflects mounting economic pressures from U.S. tariffs and internal political instability. The move aims to stimulate the economy but also raises concerns about potential asset bubbles and increased household debt. The central bank’s cautious approach indicates a delicate balance between fostering growth and maintaining financial stability.
South Koreans turn out in record numbers for early voting in presidential election
A record 7% of South Korea’s 44.39 million eligible voters participated in early voting ahead of the June 3 snap presidential election.
Insight
The unprecedented early voter turnout signifies a highly engaged electorate responding to recent political upheavals, including the ousting of former President Yoon Suk Yeol. This heightened participation may lead to significant shifts in the political landscape, reflecting public demand for stability and effective governance amidst economic challenges.
Taiwan central bank will take ‘timely’ steps to ensure financial stability
Taiwan’s central bank announced it would implement timely measures to maintain financial stability amid global uncertainties, including potential U.S. tariffs and market volatility.
Insight
The central bank’s proactive stance underscores Taiwan’s vulnerability to external economic shocks, particularly given its export-driven economy. By signaling readiness to act, the bank aims to bolster investor confidence and mitigate potential disruptions. This approach reflects a broader trend among central banks in the region to navigate an increasingly complex global financial environment.
RBNZ Governor Hawkesby Says July Rate Cut ‘Is Not a Done Deal’
Reserve Bank of New Zealand Governor Christian Hawkesby stated that a rate cut in July is not guaranteed, emphasizing a data-dependent approach to monetary policy.
Insight
The RBNZ’s cautious outlook reflects a commitment to balancing economic support with inflation control. By avoiding a predetermined path, the bank maintains flexibility to respond to evolving economic indicators. This stance may influence market expectations and underscores the importance of adaptive policy-making in uncertain times.
