Asia backpedals on two-child policies and China joins whisky-making party

Nikkei Asia News Roundup - January 2026: Detailed Summary

Key Concepts:

Nepal Political Shift: Emergence of new political forces challenging established parties.
Japanese Stock Market: Record highs driven by investor confidence and potential snap election.
India’s Quick Delivery Services: Rollback of 10-minute delivery due to labor concerns.
Thailand Elections: Upcoming snap general election with a crowded field of candidates.
China-Airbus Deal: Significant aircraft order indicating shifting dynamics in the aviation industry.
Japan-Southeast Asia Data Cable: New infrastructure project to meet growing data demands.
Delhi Smog Crisis: Severe air pollution and its impact on public health and daily life.
Vietnam Metro Line: First metro rail line’s impact on commuting and urban development.
China’s Demographic Shift: Transition from one-child to evolving policies and resulting fertility rate challenges.
India’s Traditional Sandals: Collaboration between Indian artisans and Prada, addressing cultural appropriation concerns.
China’s Whiskey Industry: Emerging market with potential for growth, mirroring Japan’s success.

1. Political Developments in Asia

The episode highlights significant political shifts across several Asian nations. In Nepal, a coalition of an ex-rapper turned mayor, a TV host turned politician, and a former state power utility head are challenging the established political order ahead of March 5th elections. This represents a disruption of the traditional power structure.

Thailand is preparing for a snap general election on February 8th, with 57 parties competing for seats, following a period of political instability with three prime ministers in the last two and a half years.

2. Economic & Market Trends

Japan’s stock market reached a new record high, fueled by investor enthusiasm for the “Takichi trade” – a surge in investment linked to Prime Minister Sana Takichi’s plans for a snap election. This indicates a positive market response to potential policy changes.

A major development in the aviation industry involves China’s five airlines purchasing 148 A320 planes from Airbus. This signals a strengthening relationship between China and the European manufacturer, particularly as Boeing faces challenges related to trade tensions.

3. Infrastructure & Technology

To address the increasing demand for international data capacity driven by the expansion of Artificial Intelligence (AI), three Japanese corporations are collaborating to build a major submarine cable connecting Japan with Malaysia and Singapore. This project, supported by a 200 billion yen (approximately $1.26 billion) loan from the Japanese government, demonstrates a commitment to bolstering digital infrastructure.

4. Environmental Concerns: Delhi’s Smog Crisis

The visit of soccer superstar Lionel Messi to Delhi, India, brought renewed attention to the city’s severe smog crisis. Residents greeted Messi with chants of “AQI, AQI” (Air Quality Index) as a protest against the persistent air pollution.

Data & Statistics: Over 100,000 fatalities in Delhi were linked to ambient air pollution between 2018 and 2023.
Contributing Factors: The pollution is caused by vehicular and industrial emissions, construction dust, solid waste burning, and agricultural stubble burning.
Government Response: Authorities activated the highest level of a graded response action plan, including shifting younger students to online learning, implementing hybrid work models, banning construction, and restricting the use of coal/firewood ovens in restaurants.
Comparative Analysis: The situation in Delhi is compared to Beijing’s air pollution crisis in the early 2000s, highlighting Beijing’s success in reducing PM2.5 levels by 60% since 2013, resulting in a nearly 5-year increase in life expectancy. (PM2.5 refers to particulate matter with a diameter of 2.5 micrometers or less, a key indicator of air pollution.)

5. Urban Development: Vietnam’s First Metro Line

Vietnam’s first metro rail line, launched in December 2024, has significantly improved commutes for residents of Ho Chi Minh City, reducing travel time by 10-20 minutes.

Route Details: The line connects Benton Station in the city center to Soyen station in the suburbs, covering approximately 20 km.
Financial Support: The project received approximately 200 billion yen ($1.26 billion) in loans from the Japanese government, with Japanese companies like Hitachi involved in construction. However, some contractors are reportedly still awaiting payment.
Impact on Real Estate: The metro line is driving up property values along its route and reshaping the cityscape.

6. Geopolitical & Business News Highlights

Nikkei Asia’s most-read stories included an explainer on the impact of US strikes on Venezuela and its implications for oil supplies to China, as well as developments surrounding Donald Trump and Iran, including tariffs and protests.

7. Demographic Trends & Cultural Preservation

A collaborative report from Nikkei Asia’s reporters in Hanoi, Jakarta, and New Delhi examined the impact of population policies across Asia, particularly in comparison to China’s former one-child policy.

Policy Variations: While China’s policy was strictly enforced, other countries like Vietnam and India have implemented less stringent measures.
Negative Consequences: These policies have been linked to the deterioration of women’s rights, including instances of forced abortions and discrimination based on family size.
Fertility Rates: Total fertility rates are declining across the region, with Pakistan being the only country with a rate above the replacement level of two children per woman.

The episode also highlighted a collaboration between Indian artisans and Prada to create limited-edition traditional sandals ( copi). This partnership addresses past criticism of Prada for appropriating Indian cultural heritage without proper attribution. The original Prada sandals were priced upwards of $1,000, contrasting with the more affordable traditional versions.

8. Emerging Industries: China’s Whiskey Market

A growing interest in whiskey is emerging in China, despite baijiu dominating the spirits market (currently accounting for 98.5% of the market). New distilleries are being established, importing equipment like pot stills from Scotland, and adopting Scotch whiskey production methods. However, maturation requirements (minimum 3 years) mean it will take time to see the full impact of this trend.

Conclusion:

The Nikkei Asia News Roundup provides a comprehensive overview of key developments across Asia, spanning political shifts, economic trends, environmental challenges, and emerging industries. The episode underscores the interconnectedness of these issues and highlights the dynamic nature of the region. The focus on specific details, data, and comparative analyses offers valuable insights into the complexities of Asia’s evolving landscape.