
CAPS Think Point
Weekly Asia Pacific Monitor
21-25 April 2025
Weekly Asia Pacific Monitor is based on daily screening of 28
newspapers published from different countries of the region. The
document provides a brief summary of interaction among Asia
Pacific countries in security, economy and diplomacy sectors.
Consortium of Asia Pacific Studies (CAPS)
Defence/Security
Australia unveils biggest defense overhaul in decades with wary eye on China. Australia has unveiled a radical shakeup of its defense spending billed as the most significant review of its military preparedness since World War II, shifting its emphasis onto long-range strike capabilities and building munitions at home
‘Absolutely no prospect’: Richard Marles dismisses report Russia seeking Indonesian airbase. Defence Minister Richard Marles confirmed he had received direct reassurance from his Indonesian counterpart that there is “absolutely no prospect” of Russian aircraft operating in the country.
China detonates non-nuclear hydrogen bomb – media. The South China Morning Post has cited researchers as saying the 2kg magnesium hydride device generated a 1,000 degrees Celsius fireball.
China and Egypt have launched their first joint air drill, “Eagles of Civilisation 2025”. signalling a deepening military partnership amid Egypt’s strained ties with the US. This marks a significant geopolitical shift as Cairo moves toward Beijing for advanced defence systems and strategic alternatives to US military support.
China has imposed an export ban on seven critical rare earth elements vital to U.S. defense systems. The move threatens to disrupt the production of F-35 jets, submarines, and advanced weapons. With Beijing controlling up to 90% of global REE refining, the ban exposes a major strategic vulnerability in U.S. military supply chains.
Indonesia weighs US arms purchases to curb tariff threat. Indonesia is reportedly considering buying American weapons to reduce tensions and avoid US tariff escalation amid ongoing trade talks.
US deploys two more B-1B strategic bombers to Japan. Another pair of American B-1B Lancer strategic bombers have arrived at Misawa Air Base in the north of the Japanese island of Honshu, where two such aircraft were already stationed earlier this week.
Japan unveils sea-based railgun. Japan has publicly showcased a close-up of its shipmounted electromagnetic railgun for the first time. It represents a future-forward artillery system that uses electromagnetic energy to launch projectiles.
Japanese ships make historic first port call at Ream Naval Base. Two vessels from Japan’s Maritime Self-Defence Force became the first foreign naval ships to make a port call at Cambodia’s Ream Naval Base, following the base’s official inauguration in early April.
Republic of Korea and UAE sign cooperation agreement on KF-21 fighter jet programme. Commander of the UAE Air Force and Air Defence, visited the Korea Aerospace Industries (KAI) facilities. As part of the agreement, UAE representatives will be allowed to visit KF-21 testing units and observe the aircraft’s trials.
Indonesia to Intensify Frigate Acquisition Talks with Japan. Indonesia is ramping up highlevel talks with Japan over the joint development and production of a customized variant of Japanese Mogami-class frigates for its navy.
North Korea says it tested hypersonic intermediate range missile aimed at remote Pacific targets. North Korea its latest weapons test was a new hypersonic intermediate-range missile designed to strike remote targets in the Pacific.
Seoul launches 4th spy satellite to boost surveillance on North Korea. South Korea’s military launched its fourth domestically developed spy satellite, advancing efforts to build a constellation of reconnaissance satellites aimed at enhancing the nation’s capability to monitor North Korea and detect signs of potential provocations in real time.
Egypt nears deal with South Korea for 100 FA-50 light combat aircraft. Egypt is in the final stages of negotiations with South Korea to acquire approximately 100 FA-50 light combat aircraft. The deal, currently being discussed with Korea Aerospace Industries (KAI), is expected to include a technology transfer component.
Japan’s secret satellite weapon now in Ukraine’s ‘war hands’. Japan announced it would share images produced by synthetic aperture radar [SAR] satellites operated by the Institute for Q-shu Pioneers of Space [iQPS] with Ukraine’s military intelligence agency. This marks the first time Japan has ever shared such geospatial intelligence with any foreign nation.
Russian Infrastructure Plays Crucial Role in North Korean Cybercrime Operations. Trend Research has identified multiple IP address ranges in Russia that are being used for cybercrime activities aligned with North Korea.
Vietnam agrees to buy US F-16 fighters, defense website says. Vietnam has reached an agreement with the United States to buy F-16 fighter jets, a defense website said. Hanoi will acquire at least 24 of the Lockheed Martin single-engine fighters.
India Delivers BrahMos Missiles To Philippines Amid Regional Tensions. This shipment is part of a $375 million defense deal signed in January 2022 and follows the initial delivery in April 2024.
U.S. Navy Seeks Large Storage Facility in the Philippines by 2026. The US is looking to lease a climate-controlled facility between 19,000 and 33,000 square meters near Subic Bay and Clark for the storage of equipment in the Philippines by 2026 under a ten-year-long lease which could mark the largest prepositioning effort to date between Washington and Manila since 1992.
United States approves sale of F-16 fighters to Philippines to enhance country’s defence capabilities. The F-16 Block 70 is a modernised version of the renowned multirole fighter jet, equipped with advanced mission systems such as the Automatic Ground Collision Avoidance System (Auto GCAS).
Vietnam to Sign $700-Million BrahMos Missile Deal With India. Vietnam is finalizing an agreement with India to acquire BrahMos supersonic cruise missiles amounting to $700 million.
First Joint US-South Korea Simulation of Nuclear Response to North Korean WMD Threat. For the first time, a US military unit specialized in responding to nuclear and weapons of mass destruction (WMD) scenarios conducted a training exercise in South Korea.
Japan, Philippines likely to sign military information agreement. The Japanese and Philippine governments have entered the final phase in coordinating the early signing of a bilateral general security of military information agreement (GSOMIA).
South Korea, Japan announce sanctions over alleged Russia-North Korea arms trade. South Korea and Japan declared a series of sanctions targeting individuals, organizations, and vessels connected to Russia’s alleged procurement of weapons from North Korea.
Russian strike that hit residential building in Kyiv used North Korean missile. Russia used a North Korean ballistic missile for the deadly overnight strike that hit a residential building and killed 12 in Kyiv, Ukraine’s President Volodymyr Zelenskiy said.
China rebuts Ukrainian weapons claim. Zelensky has accused Beijing of secretly supplying arms to Russia. Chinese Foreign Ministry spokesperson stated his country “has never provided lethal weapons to any party to the [Ukraine] conflict, and has kept its dual-use exports under strict control.”
Russia dismisses Ukrainian claims it attacked Indian warehouse in Kiev. The facility was likely destroyed by “inept” air defenses, according to the Russian embassy in New Delhi.
Russian spy chief hints at meeting with CIA boss. Sergey Naryshkin confirmed that he had spoken with his US counterpart again and hinted at the possibility of a direct meeting.
Fully import-substituted Russian Superjet makes first test flight. The program to replace all Western-made parts on the regional passenger aircraft was launched in response to the sweeping sanctions-imposed Russia’s aviation industry by the US and EU after the escalation of the Ukraine conflict in 2022.
Ukrainian troops kill platoon of North Korean soldiers in close combat in Russia’s Kursk Oblast. Ukrainian soldiers from the 6th Ranger Regiment of the Special Operations Forces (SOF) have engaged in close combat with a larger unit of North Korean troops fighting for Russia, wiping out an entire platoon.
South Korea seeks growing arms deals with Iraq. With negotiations to provide more military equipment, such as fighter jets, helicopters, and air defense systems, South Korea is stepping up its attempts to increase its military sales to Iraq.
UK, New Zealand to Send Drones to Ukrainian Military. The UK has partnered with New Zealand to deliver unmanned military systems for the Ukrainian Armed Forces.The initiative is part of bilateral cooperation between London and Wellington
Economy
A delegation from China Mobile, met Pakistan’s IT Minister to enhance digital cooperation under CPEC. Talks focused on AI-driven, energy-efficient data centres, 5G rollout, and improving connectivity.
Pakistan’s salt exports to China grew by 40% in Q1 2025. It has reached $1.83 million, driven by rising demand and stronger trade ties under the China-Pakistan Economic Corridor (CPEC). The increase is attributed to improved logistics, competitive pricing, and quality controls.
Pakistan engaged in high-level talks with China and Saudi Arabia to secure debt rescheduling, expand currency swap limits, and boost economic cooperation under the IMF program. China assured rollover of a $4B deposit.
The fourth China-Pakistan Joint Working Group on Agriculture meeting was held in Beijing. It reviewed progress on initial CPEC agricultural projects and approved a second batch of initiatives. Both countries agreed to establish joint labs and form an Agricultural Technology Working Group.
China launched an action plan to expand the international use of the yuan and its own Cross-Border Interbank Payment System (CIPS), aiming to reduce reliance on the US dollar amid intensifying trade tensions.
US appreciates Indonesia’s proposal on bilateral trade. Washington welcomed Indonesia’s suggestions during recent tariff discussions, signaling openness to collaborative economic solutions.
Govt turns down Malaysian request to buy Indonesian rice. Indonesia rejected a Malaysian proposal to import rice, citing the need to secure domestic food supplies amid uncertainty.
Apple aims to source all US iPhones from India in a pivot away from China. The tech giant plans to shift assembly as soon as next year in response to Donald Trump’s trade war.
China has warned that it will retaliate against countries that cooperate with the U.S. in ways that compromise Beijing’s interests. According to a statement from the Chinese Ministry of Commerce, China.
Taiwan-Japan chip alliance gets a boost with Fukuoka trade outpost. Taiwan’s Ministry of Economic Affairs (MOEA) inaugurated a new Taiwan Trade and Investment Centre in Fukuoka, marking a key step in deepening Taiwan-Japan industrial ties.
China asks South Korea not to export rare earth products to US defense, warns companies could be sanctioned. Beijing has asked South Korean companies to cease exporting products containing Chinese-originated heavy rare earth metals to U.S. defense firms, warning that Seoul could face sanctions.
China asks Japan for ‘coordinated action’ against Trump tariffs. China has asked Japan in a letter from Chinese Prime Minister Li Qiang to his Japanese counterpart to coordinate efforts against tariffs imposed by US President Donald Trump amid ongoing trade tensions between Washington and Beijing.
IMF Cuts 2025 Growth Forecast for China and Japan. The International Monetary Fund (IMF) has slashed its 2025 GDP projections for China and Japan to 4% and 0.6%, respectively, down from its January forecasts of 4.6% and 1.1%.
Japan unveils sea-based railgun. Prime Minister Anwar’s trip to Thailand concluded with trade deals and investment opportunities estimated at RM10.7 billion.
Vietnam solar exports hit with US duties of up to 54.26%. The US imposed steep tariffs on solar imports from Vietnam, citing concerns over Chinese component sourcing, affecting Southeast Asian trade dynamics.
US finalizes tariffs on Southeast Asian solar imports. Final decisions by the US Department of Commerce to impose duties on solar panel imports are expected to hit key ASEAN exporters.
China set to import more Malaysian durians. China will expand its durian imports from Malaysia, offering a significant boost to Malaysian agricultural exports and bilateral trade.
PM to discuss tariff response with Pakistan, Maldives and Kosovo leaders soon. Malaysia plans to engage with key partners to discuss responses to international tariff developments affecting regional trade.
N. Korea launches AI tech venture with Chinese firm to bypass sanctions. North Korea has partnered with a small Chinese IT company in Shenyang, Liaoning province, to establish a start up focused on AI security technology development.
Japan grants $3 billion loan to Ukraine using profits from frozen Russian assets. Japan has pledged approximately $3 billion in financial support to Ukraine through the G7’s ERA (Extraordinary Revenue Acceleration) mechanism, which utilizes profits from frozen Russian sovereign assets.
Moscow slams Japan’s Ukraine loan as ‘treachery’. Russia has sharply criticised Japan over its decision to lend Ukraine more than $3bn, calling the move “treacherous” and accusing Tokyo of participating in what it described as the theft of Russian sovereign assets.
U.S. Urges Japan and South Korea to Commit to $44 Billion Alaska Gas Project. Officials in the United States are urging Japan and South Korea to make a formal commitment within the next few weeks to a $44 billion natural gas project in Alaska.
North Korean cyber spies created U.S. firms to dupe crypto developers. North Korean cyber spies created two businesses in the U.S., in violation of Treasury sanctions, to infect developers working in the cryptocurrency industry with malicious software.
PH allows trade officials to visit Taiwan. The Philippine government has eased the regulations on the visit of government officials to Taiwan “for economic, trade, and investment” as well as receiving Taiwanese officials visiting the country.
US slaps tariffs of up to 3,521% on China-linked solar imports. Washington has set tariffs of up to 3,521% on solar imports from Southeast Asia, according to information published by the US Department of Commerce.
Diplomacy
Japan hands over modern sewerage machinery to Multan in major infrastructure boost. The Japan International Cooperation Agency (JICA) officially handed over advanced machinery to the Water and Sanitation Authority (WASA) Multan on Thursday under the ‘Project for Upgrading Sewerage and Drainage Services in Multan’.
U.S and China ambassadors clash in Fiji over Trump’s tariff policies. The embassies of the United States and China in Fiji’s capital Suva have begun a diplomatic war of words in reaction to Donald Trump’s tariff policies.
China’s first detailed assessment of coral reefs near Sandy Cay blames the ecosystem’s degradation on both natural causes and Philippine construction on nearby Thitu Island. China highlighted tropical cyclones, human activity, and a crown-of-thorns starfish outbreak as key drivers of reef decline.
Russia–Pakistan Joint Meeting: Counterterrorism Tops the Agenda. Pakistan’s Ministry of Foreign Affairs announced that during the 11th session of the Joint Working Group with Russia, both countries emphasized strengthening cooperation in combating terrorism in the region, especially in Afghanistan.
A resource-rich area in the South China Sea, may become a flashpoint between China and the Philippines if Manila pursues solo energy exploration. Despite its vast untapped reserves, joint development has stalled amid rising tensions, limited Philippine capacity, and geopolitical complexities.
Japan to provide support to Afghan refugees. In light of humanitarian challenges in host communities, the Government of Japan has decided to provide $3 million to UNHCR to support Afghan refugees and host communities in Pakistan.
Prabowo launches diplomatic offensive in Islamic world. Defence Minister Prabowo is expanding Indonesia’s presence in Muslim-majority nations, seeking broader strategic partnerships.
Indonesian embassy in Cambodia sees surge in online scam victims, fatalities. The embassy reports a worrying rise in cases involving human trafficking and scams targeting Indonesian nationals in Cambodia.
Indonesia food plan risks world’s largest deforestation. A controversial government proposal for food estate expansion could lead to massive forest loss, sparking international concern.
Japan imports grain from South Korea for first time in more than 25 years. Japan has imported rice from South Korea for the first time in a quarter of a century in an attempt to address soaring prices and growing consumer anger.
Chinese nationals to enjoy visa-free access for another five years. Malaysia extended its visa-free policy for Chinese citizens, aiming to bolster tourism and bilateral ties.
Kremlin praises Trump’s view on Crimea. US President Donald Trump’s statement that Ukraine lost Crimea many years ago aligns entirely with Moscow’s position, Kremlin spokesman Dmitry Peskov has said.
US to propose recognizing Crimea as Russian under Ukraine peace deal – WaPo. The US will propose a peace deal that involves the recognition of Russian sovereignty over Crimea and freezing the Ukrainian conflict front lines, at a meeting with officials from Kiev and Western Europe this week, the Washington Post has reported, citing sources.