Asia Pacific News
LAST UPDATE: June 3, 2025
China’s Grip on Rare Earths Gives Xi Leverage in US Trade Duel
China’s dominance in rare earths is a key factor in US-China trade tensions.
Insight
China’s near-monopoly on processing rare earth elements, crucial for electronics and defense, gives it significant leverage in trade negotiations with the US. Recent delays in export licenses have raised concerns in Washington, prompting the US to seek alternative sources and fast-track domestic mining efforts. However, establishing new supply chains is a long-term endeavor, leaving the US vulnerable in the short term. This situation underscores the strategic importance of rare earths in global trade and national security.
Sri Lanka to boost tax collection and not seek IMF support in future
Sri Lanka aims to enhance tax revenue and avoid future IMF assistance.
Insight
President Anura Kumara Dissanayake launched the “Badu Shakthi – National Tax Week” to strengthen tax compliance and broaden the tax base. Emphasizing transparency and accountability, the initiative seeks to rebuild the nation’s economy without relying on external financial support. The government is committed to ensuring that tax revenues are used effectively and that corruption is eradicated. This move reflects Sri Lanka’s determination to achieve fiscal independence and sustainable economic growth.
South Korea votes for new president after martial law turmoil
South Korea holds a snap presidential election following the impeachment of former President Yoon Suk Yeol.
Insight
The election comes after Yoon’s controversial declaration of martial law, which led to his impeachment and removal from office. Liberal candidate Lee Jae-myung is leading in the polls, advocating for economic reforms and improved relations with North Korea. The political crisis has deeply divided the nation, and the new president will face challenges in uniting the country and addressing economic and security concerns. The outcome will significantly influence South Korea’s domestic and foreign policies.
