CAPS Think Point
Weekly Asia Pacific Monitor
07 April-11 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
AUKUS safe despite Musk scrutiny: PM Albanese. Australia’s PM affirmed AUKUS’s stability despite Elon Musk’s criticisms, calling character attacks a diversion.
New Zealand boosts defence spending to US$6.6 billion. The budget nearly doubles defence spending to 2% of GDP, with vows for closer integration with Australia.
Philippine Navy receives first guided-missile corvette. The South Korean-built corvette will bolster Manila’s capabilities amid China’s aggression in the South China Sea.
Singapore confirms purchase of eight more F-35A fighter jets. This complements earlier F35B acquisitions, solidifying Singapore’s fifth-generation fighter fleet.
India deploys S-400 air defence system to Siliguri Corridor. The move aims to protect India’s vulnerable northeastern link amid rising China-Bangladesh military ties.
Vietnam proposes six cities as national air defense priority areas. Hanoi, Ho Chi Minh City, and others are designated due to strategic infrastructure and political importance.
China dismisses Zelensky’s claim of Chinese nationals fighting for Russia Beijing warned against “irresponsible remarks” and reaffirmed neutrality, urging recognition of its peace efforts.
China-Vietnam to hold border defense friendship exchange. The 9th annual event will take place in Guangxi and Lang Son Province, reinforcing bilateral ties.
Russia transfers North Korean heavy artillery to Crimea. Reports suggest Pyongyang’s deeper involvement in Ukraine, with troops potentially deploying to Crimea.
India equips Russian helicopters with indigenous EW suites. A ₹2.4 billion contract enhances Mi-17 V5 survivability with radar warning and countermeasure systems.
Australia donates drones to Philippines for maritime awareness. The 20 drones aim to bolster Manila’s capabilities amid South China Sea tensions.
Russian Foreign Ministry threatens Japan over military aid to Ukraine. Moscow warned of “tough measures” if Tokyo participates in NATO’s Ukraine training mission, citing damage to Japan’s “sensitive interests.”
U.S. to deploy MQ-4 Triton drones indefinitely in Okinawa. The move, criticized by Okinawa’s governor, aims to expand surveillance near Japan. Defense Minister Nakatani acknowledged deterrence benefits.
Japan’s GSDF plans first domestic Type 88 missile drills. Training in Hokkaido (using nonexplosive rounds) aims to counter China’s maritime expansion; previously conducted overseas.
Japan reports 704 ASDF scrambles in FY2024, mostly against Chinese aircraft. Chinese drone scrambles tripled, with naval activity disclosures 5.5× higher than 2014 levels.
China’s PLA Army will join Pakistan’s PATS-2025 international military skills competition. The event focuses on night reconnaissance, ambush tactics, and combat swimming, aiming to boost combat readiness and deepen military cooperation among participating nations.
Economy
Pakistan’s debt reliance on China hits record levels. Continuous loan rollovers from Beijing are sustaining Pakistan’s economy while raising concerns about long-term sovereignty.
China-Pakistan set to hold 14th JCC meeting to push CPEC 2.0. The July 2025 meeting aims to address delays in Gwadar’s grid connection and desalination plant, critical for CPEC’s next phase.
Indonesia’s new coal pricing rule sparks uncertainty, resistance from Chinese firms. The move has unsettled some Chinese firms, which make for Indonesia’s largest buyers. Significantly increased prices could cut down trade profits and discourage purchases from Chinese buyers.
Malaysia Seeks New Palm Oil Markets Amid U.S. Tariff Concerns. In response to recent U.S. tariffs, Malaysia is actively exploring alternative markets for its palm oil exports. This strategic move aims to mitigate potential economic impacts resulting from the trade tensions.
ASEAN Strengthens Regional Trade & Digital Partnerships Amid U.S. Tariffs. PM Anwar praised ASEAN’s unity in responding to U.S. tariffs and regional challenges.
South Korea-Malaysia hold 8th FTA negotiations. Four-day talks in Seoul aim to advance 10 trade sectors amid global protectionism trends.
Vietnam-US agree to negotiate bilateral trade deal. Talks begin after Trump’s 90-day tariff pause, with Hanoi seeking stable trade relations.
Russian agriculture exports to North Korea surge. Wheat flour and sugar lead growth, creating new Far East logistics opportunities.
China retaliates with 84% tariffs on US goods. Beijing matches Trump’s 125% duties, escalating superpower trade war with no de-escalation in sight.
Trump announces 90-day tariff pause for all except China. Import duties lowered to 10% baseline during negotiations, maintaining pressure solely on Beijing.
Asian markets collapse after Trump tariffs. Nikkei plunged 6.5%, KOSPI dropped 5% as $41 billion wiped off Australian shares in one day.
JPMorgan raises global recession risk to 60%. “Blood” warning issued as tariff turmoil disrupts supply chains and financial markets.
India may allow rupee depreciation if yuan weakens. RBI monitors potential export impacts from currency shifts triggered by US-China trade war.
Indian exports to US face $5.76B setback. Marine, gold, and electronics sectors hit hardest by new American tariffs.
Australia-Fiji partnership boosts solar adoption. Joint initiative reduces regulatory barriers for renewable energy licensing.
Moscow jumps to #2 in global billionaire rankings. Russian capital adds ultra-wealthy residents, with combined $409B fortune.
Indonesia Will Not Retaliate Against Trump Tariff: Airlangga. Instead, the country will seek diplomatic solutions and consider increasing imports from the US to balance trade relations.
The Asian Development Bank forecasts Asia-Pacific growth to slow to 4.9% in 2025 due to US tariff policies and trade uncertainty. Southeast Asia is expected to be hit hardest.
Govt Seeks to Import More US Goods to Avoid Retaliation on Tariffs. The Indonesian government is considering increasing imports of US goods as a strategy to prevent further trade tensions.
Brunei-Philippine Companies Partner for Cash Secure Solutions. Brunei’s Aegis Secure Solutions Corp and the Philippines’ Eagle Corinthians Integrated Security have entered into a joint venture to offer advanced cash security services in the Philippine
Diplomacy
Pakistan-China Collaborate on Technical Training Centers. Both sides discussed the establishment of technical training centers in Pakistan, supporting CPEC-related workforce needs.
Vietnam Envoy, PAL Chief Discuss Literary Cooperation. Ambassador of Vietnam to Pakistan visited the Pakistan Academy of Letters. An agreement was signed to translate works of Vietnamese leader Ho Chi Minh into Urdu and Pakistani poetry into Vietnamese, strengthening cultural ties.
Russia-Iran Sign 20-Year Strategic Partnership. Russia’s State Duma ratified a 20-year strategic partnership treaty with Iran, deepening military and political ties amid Western sanctions. The pact covers defense, trade, and nuclear energy, reinforcing solidarity against U.S.-led pressure.
Russia Denies Involving China in Ukraine Conflict. Kremlin spokesman rejected claims that Russia is drawing China into the Ukraine war, calling Beijing a “balanced” partner. The statement followed Ukrainian President Zelensky’s allegations of Chinese involvement.
Japan’s 2025 Diplomatic Bluebook expresses serious concern over Russia-North Korea military cooperation impacting Ukraine and Japan’s security. It stresses deeper Japan-US ties (Ishiba-Trump summit), G7 cooperation, and notes China concerns while pursuing mutually beneficial relations.
Japanese PM Ishiba met NATO Sec-Gen Rutte; both sides agreed to strengthen Indo PacificEuropean security cooperation. They criticized Russia-North Korea ties, stressed peace efforts, and opposed unilateral status quo changes, hinting at China. A joint statement was issued.
US President Trump criticized the Japan-US Security Treaty as unfair. He reiterated concerns, saying “we protect them, and they don’t have to protect us.” Japan’s Chief Cabinet Sec Hayashi expressed confidence in the US defense commitment.
South Korea protests Japan’s territorial claims to Dokdo in Japan’s 2025 Diplomatic Bluebook. Seoul summoned a Japanese envoy and vowed stern responses to what it called provocative and unjust claims.
South Korea establishes diplomatic ties with Syria, now connected to all UN members except North Korea. FM Cho Tae-yul finalized the process in Damascus, discussing potential cooperation and reconstruction efforts.
Govt to appoint envoy for United States soon amid tariff concerns. In light of the recent US tariffs, Indonesia plans to appoint a special envoy to the United States. The envoy will engage in diplomatic efforts to address trade issues and strengthen bilateral relations.
Australia Rebuffs China’s appeal to join hands in trade. Australia has declined China’s proposal for a joint trade initiative. The decision reflects Australia’s cautious approach to aligning with China’s trade strategies amid global economic tensions.
Xi Jinping to visit South-East Asia amid tariff tensions. Chinese President Xi Jinping is scheduled to visit Vietnam, Malaysia, and Cambodia, marking his first foreign trips of the year. This visit aims to strengthen ties with Southeast Asian nations in light of the ongoing U.S.-China tariff disputes.
