China says the US is “politicising education” with Harvard ban | East Asia Tonight (May 23)

Key Concepts

• US-China relations: Politicization of education, trade war, tariffs, competition.
• International students: Impact of US policies on Chinese students at Harvard, alternative study plans.
• East Asian economies: Japan's inflation, China's economic strategy, BYD's EV sales, Hong Kong's capital markets.
• Regional security: US troop presence in South Korea, China's influence, ASEAN's role.
• Low-altitude economy: China's focus on drone technology and related industries.

US-China Education Dispute

• Harvard Ban: The US administration barred Harvard University from enrolling international students, alleging links to the Chinese Communist Party (CCP) and an unsafe campus environment.
• Homeland Security Order: The Department of Homeland Security gave Harvard 72 hours to comply with federal requests for information about foreign student visa holders or face a ban from the student and exchange visitor program.
• Harvard's Response: Harvard called the move a retaliation that could harm the country, affecting nearly 7,000 international students (27% of its enrollment).
• China's Reaction: China's Foreign Affairs Ministry opposed the politicization of educational collaboration and vowed to safeguard the rights of overseas students. Analysts believe China's options for retaliation are limited, possibly restricting US students from studying in China, but existing research collaboration restrictions already exist.
• Analyst Perspective: Analysts are wary of the CCP coordination claims, suggesting the move might be a broader regulatory effort targeting equity, diversity, and inclusion practices, not specifically China.
• Student Impact: Approximately 1,800-2,300 Chinese students study at Harvard. A study abroad consulting agency advised students to consider alternative study plans, including domestic options like Westlake University and Fuya University of Science and Tech, which are private universities funded by top entrepreneurs.
• Vince's Story: Vince, a student accepted to Harvard for public health research, faces uncertainty about his visa status. His alternative plan is to return to his residency training.
• Alex Usha's Perspective: Alex Usha, president of Higher Education Strategy Associates, believes the administration wants "obedience" from universities and is attacking Harvard for pushing back on policies related to minority student support. He suggests work visas are canceled and international students may have to transfer schools, potentially outside the US.

East Asian Economic Updates

• Japan's Inflation: Core inflation in Japan rose to 3.5% in April, the fastest in over two years, driven by a 7% surge in food prices. This puts pressure on Prime Minister Shagaru Ishiba ahead of July's elections and complicates the Bank of Japan's policy path. Super long government bond yields have spiked to record highs.
• Bank of Japan's Response: Bank of Japan Governor Kazua UEA said the central bank will closely monitor the bond market but gave no indication of any immediate action.
• Expert Opinion: An expert noted that rising debt-to-GDP ratios in developed markets like the US and Japan might signal that emerging markets are a better place to commit capital due to fiscal discipline and faster economic growth.
• BYD vs. Tesla in Europe: Chinese automaker BYD sold more electric vehicles (EVs) in Europe than Tesla for the first time. BYD registered over 7,200 new EVs in April, up 169% year-over-year, while Tesla registered 7,165, down 49%. BYD's European shipments are up 385% this year.
• BYD's Success Factors: City Bank analysts attribute BYD's growth to competitive pricing and advanced tech. Tesla's production halts and Elon Musk's political involvement have also impacted its performance.
• Hong Kong's Capital Markets: Hong Kong's capital markets are showing signs of revival with strong IPOs. Tiangu Hungre Pharmaceutical and Singapore Biotech Maraxis saw their shares skyrocket on their first trading day. Battery Giant CL's $5.2 billion IPO was the world's biggest this year.
• Xiaomi's Chip Development: Xiaomi introduced its first self-developed smartphone chipset, the X-ring01, built using TSMC's 3 nanometer technology. Xiaomi has invested over $2.4 billion in its X-ring chip since 2021, with plans to spend another $7 billion over the next 10 years.
• Apple's Expansion in India: Apple is expanding manufacturing in India, with Foxcon moving ahead with a $1.5 billion component plant near Chennai. Apple currently produces nearly 15% of all iPhones in India, with plans to increase that to 25%.
• US-EU Trade Tensions: The US is pressuring the EU to unilaterally cut tariffs on American goods, warning that without concessions, trade talks will not progress.

Regional Security and Diplomacy

• US Troop Presence in South Korea: South Korea clarified that there have been no discussions with the US about withdrawing troops. This follows a Wall Street Journal report that the Trump administration is considering redeploying over 4,000 troops.
• South Korean Perspectives: Candidate Kim Munsu voiced concerns about troop reductions, while front runner Lee Jong emphasized military cooperation as deterrence against North Korea.
• John Deluri's Analysis: John Deluri, visiting professor at John Kat University, noted that the Trump administration is skeptical of alliances and seeks increased financial contributions from South Korea. The China factor is also influencing US strategy, shifting focus from North Korea to managing China.
• Mutual Defense Agreement: The US-South Korea mutual defense agreement, dating back to 1953, has been tested through various troop drawdowns.
• South Korea's Position on Taiwan: South Korea has wiggle room in deciding its involvement in a potential conflict in the Taiwan Straits.
• US-Japan Alliance: South Korea closely watches the US-Japan alliance, fearing it might be left out.
• Chinese Premier's Southeast Asia Visit: Chinese Premier Liang is visiting Indonesia and Malaysia to rally support for Beijing's trade policies.
• Indonesia's Importance: Indonesia is an attractive market for Chinese businesses due to its young population and growing labor force.
• ASEAN's Role: ASEAN has become China's top export destination, driven by increases to Indonesia, Thailand, and Vietnam. Tariff dodging is occurring through Southeast Asia.

Other News

• China Landslides: Landslides in southwest China killed at least four people.
• China's Low-Altitude Economy: China is focusing on the low-altitude economy, including drone technology. The industry expects the market to hit US $220 billion this year and expand nearly three times in 10 years.
• Singapore's New Prime Minister: Singapore's Prime Minister Lawrence Wong is set to take office.

Synthesis/Conclusion

The news covers a range of critical issues in East Asia, highlighting the complex interplay of economic competition, political tensions, and security concerns. The US-China relationship remains a central theme, impacting education, trade, and regional alliances. Japan's economic challenges and China's strategic moves in Southeast Asia further shape the regional landscape. The focus on emerging technologies like EVs and drone technology underscores the drive for innovation and economic growth in the region.