Powerful quake rocks Myanmar, Thailand; China warns the US & Philippines | East Asia Tonight Mar 28

Key Concepts

• Earthquake in Myanmar and Thailand
• South Korea Wildfires
• South China Sea tensions (US vs. China)
• China's Open Door Policy and Foreign Investment
• Hong Kong Derivatives Trading Surge
• Korea Zinc Shareholder Battle
• Nippon Steel's US Steel Takeover Bid
• Toyota's Global Production and Sales
• Taiwan's Probe into SMIC
• Tokyo Inflation
• Bangladesh-China Relations
• Australian National Elections
• Hong Kong Rugby Sevens and Tourism

Earthquake in Myanmar and Thailand

• A 7.7 magnitude earthquake struck Central Myanmar, causing damage in the capital, Naypyidaw, and Bangkok, Thailand.
• Tremors were felt as far away as Yunnan, China. The epicenter was 17 km from Mandalay, Myanmar's second-largest city.
• States of emergency were declared in half a dozen areas in Myanmar. Army Chief Min Aung Hlaing appealed for global aid.
• Bangkok was declared a disaster area.
• A 35-story skyscraper under construction, intended to be the headquarters of the state audit office, collapsed in Bangkok. At least 50 construction workers were believed to be inside. Three bodies were retrieved.
• Structural damage to buildings and disrupted streets were reported in Bangkok.
• The Thai Prime Minister declared a state of emergency for Bangkok.
• Criticism arose due to the lack of a unified emergency messaging system (cell broadcast) in Thailand.

South Korea Wildfires

• Deadly wildfires that raged across South Korea's Southeast for a week were mostly contained.
• Major blazes in North Gyeongsang Province were put out, while those in South Gyeongsang were largely under control.
• Overnight rain and slowed down strong winds helped improve visibility and firefighting efforts.
• More than 120 helicopters were used to extinguish the flames.
• The fires damaged land, homes, and cultural assets, including the ancient Gyeongsa Temple in Uiseong County, where only nine out of 30 buildings remained standing, including two National Treasures were charred.
• Some treasures, including a stone Buddha statue, were relocated to other temples.
• The Gyeongsa Temple had about 120,000 visitors annually before the fires.

South China Sea Tensions (US vs. China)

• China issued a strong warning against stirring up conflict in the South China Sea, responding to remarks by US Defense Secretary Pete Hegseth in Manila.
• China stated there are no issues with freedom of navigation and overflight in the disputed waters and called on Washington to stop "instigations."
• Mr. Hegseth vowed to strengthen military ties with the Philippines to counter threats from China and reaffirmed Washington's "ironclad defense commitment" to Manila.
• Mr. Hegseth emphasized the need for deterrence and free navigation in the Indo-Pacific region, citing the "overreach of the Communist Party of China" as a common threat.
• Plans were unveiled for advanced bilateral combat operations training between elite forces of the US and the Philippines in Batanes, strategically located near Taiwan.
• Previous drills focused on humanitarian assistance; the new training will focus on targeted combat operations in the Indo-Pacific.
• The joint statement focused on the Indo-Pacific (mentioned seven times) more than the South China Sea (mentioned once).
• Philippine President Ferdinand Marcos Jr. called the United States the "greatest force for peace in the region."
• The US waived the suspension of foreign military aid to the Philippines and committed to assisting in local defense manufacturing.
• The Philippines is planning to incentivize defense manufacturing through a bill creating a special defense economic zone in Bataan.
• The United States also committed to providing the Philippines with an anti-ship missile system.

China's Open Door Policy and Foreign Investment

• President Xi Jinping promised China's doors would open wider to foreign businesses amid intensifying trade tensions with the US.
• Xi Jinping hosted Bangladesh's Chief Advisor Muhammad Yunus, pledging to deepen cooperation and push bilateral relations to a new level.
• Xi Jinping met with Global Business Leaders in Beijing, hailing the role foreign businesses played in China's modernization.
• Executives from firms including FedEx, Standard Chartered, and AstraZeneca attended.
• Xi Jinping stated that international companies have a key responsibility in restoring Global Order.
• The meeting took place before US tariffs on imported cars and after the Boao Forum and China Development Forum.
• China aims to cast itself as a supporter of private enterprise, contrasting with Washington's "America First" policies.
• China's pledge for greater Market access follows data showing a drop in inbound investment to its lowest in over three decades.
• Xi Jinping called on CEOs to avoid behaviors that would interfere with the safety and stability of Global Supply chains and to work with China to maintain those chains.
• Xi Jinping reminded Business Leaders of the money to be made in China, highlighting its position as the world's second-largest consumer market.
• Xi Jinping critiqued protectionist moves by other countries, stating, "If you blow out other people's life bikes, it doesn't make you illuminated any better" and "Blocking other people's paths will not allow you to go any further."
• Foreign direct Investments in China dropped by nearly a quarter year-on-year last year, the biggest drop since the 2008 Global financial crisis.
• Foreign Business Leaders want China to create a fair and favorable business environment for foreign Enterprises.
• Concerns remain about unfair practices, opaque regulations, Force technology transfers, and preferential treatments for state-owned Enterprises.
• Surveys by groups such as the EU Chamber of Commerce in China reveal a significant percentage of foreign companies feel they face unfair competition and Market access barriers.
• Xi Jinping stated China will ensure foreign companies will enjoy equal treatment and his government will uphold fair market competition.

Hong Kong Derivatives Trading Surge

• Hong Kong's derivative trading for the year surpassed 2024's record high in less than three months.
• The number of outstanding Futures and options contracts reached $22 million so far this year.
• Analysts attribute the increase to the frenzy surrounding Chinese Tech firms and the growing use of hedging tools to navigate escalating global economic uncertainties.
• Hong Kong Exchanges and Clearing boosted its derivatives offerings to meet growing market demand for ways to invest in Chinese assets that reduce portfolio risks.

Korea Zinc Shareholder Battle

• The chief of Korea Zinc maintained his grip on power after defeating the firm's largest investors in a shareholder meeting.
• Yang Poong Corporation and MBK Partners launched a takeover bid for the company half a year ago.
• The two stakeholders sought to add directors after getting support equivalent to 41.3% Holdings in the metal giant.
• Korea Zinc utilized a technical maneuver that prevented Yang Poong from voting its 25.4% stake.
• Shareholders approved Korea Zinc's proposal to cap the board at 19 members, preventing the Yun MBK Alliance from expanding their own slate of directors.

Nippon Steel's US Steel Takeover Bid

• Shares of Nippon Steel dipped following a report that it would pump in billions more into US Steel if the Takeover deal goes through.
• Nippon Steel offered to boost its investments in revamping aging assets of US Steel to $7 billion, higher than the initial $2.7 billion promised in late 2023.
• The two companies are in active fors to salvage the $14 billion deal.
• Executives from Nippon Steel are said to meet with White House officials in Washington to secure approval for the acquisition.
• US President Trump said he was opposed to a takeover but did not mind if Nippon Steel took a minority stake in US Steel.

Toyota's Global Production and Sales

• Toyota Motor says its Global Production and sales are up for the second straight month, driven by higher output and strong domestic demand.
• Uncertainty looms as US President Trump's 25% Auto tariffs are due to take effect next week.
• Global Productions up 5.8% on year, driven by production domestically and in China, while production in Europe and North America are down.
• Overseas sales of the Japanese automaker increase by 2.1% on year, with the Chinese market expanding 15%, while sales in North America declined 6 and a half% due to a lack of supply of hybrid cars.
• In Japan, sales are up nearly 30%, partly boosted by the launch of new models and the company recovering from a certification Scandal last year.

Taiwan's Probe into SMIC

• Taiwan has opened a probe into a major Chinese chipmaker, SMIC, on allegations that illegally approached Taiwanese workers.
• It is part of a wider operation into 11 Tech firms on the island suspected of illegal Talent acquisition.
• SMIC allegedly opened a branch on the island as a company based in Samoa and attempted to hire local talents.
• The firm operated near Hsinchu City, Taiwan's main semiconductor Hub and headquarters of TSMC.
• Taiwan does not allow Chinese firms to conduct business activities on the island without formal government approval, including hiring local workers.
• Taiwanese authorities report that there are many cas of Chinese firms trying to poach local talent by disguising themselves as Taiwan or foreign companies.
• The Island's investigation Bureau has opened more than 100 probes into such firms since it established a dedicated task force in 2020.

Tokyo Inflation

• Consumer prices in Tokyo have climbed more than 2% for the fifth straight month, keeping alive expectations that the bank of Japan will maintain its rate hike path.
• Overall inflation is at 2.9%.
• The price of fresh food is up more than 12%, and non-fresh food is up more than 5%.
• Services are up 0.8% on year, the fastest climb since December.
• Rise prices are nearly 90% higher on year, despite the government releasing its stock piles earlier this month.
• The spike followed a poor summer harvest in 2023 due to high temperatures and a rise in foreign tourists driving up consumption in restaurants.

Bangladesh-China Relations

• Chinese President Xi Jinping vowed to deepen cooperation with Bangladesh following a meeting with Bangladesh's Chief Advisor Muhammad Yunus in Beijing.
• Xi Jinping added that China will remain a good neighbor, good friend, and good partner to Bangladesh based on Mutual trust.
• He emphasized that Beijing and Dhaka should firmly support each other on core interests and backed Bangladesh on issues including safeguarding National sovereignty, Independence, and territorial Integrity.
• Mr. Yunus's trip to China marks his first state visit since taking over as interim leader.
• Dhaka is attempting to court new friends amid Frosty ties with neighboring India.
• The meeting with Mr. Xi was lauded as a great success.
• China reaffirmed their commitment on economic broadening economic cooperation, tra opening up trade talks, and supporting Bangladesh more on infrastructure projects.
• Professor Yunus is looking at strengthening bilateral ties because after the 5th of August Uprising, there have been lot of discussions about strategic relations with the neighbors and the key Partners for the development infrastructure and economic cooperation intensifying trade relations.
• China made very strong commitment on especially Trista River projects, they wanted to move forward with the river projects, they wanted to start free trade talks, wanted to initiate a new strategic dialogue with Bangladesh along with the belon road initiative.
• There are lot of strain between the Rel of India and Bangladesh and though Bangladesh have been trying to improve the relations.
• On the Independence Day of Bangladesh, Indian Prime Minister Narendra Modi issued a later to professor Yunus and he also highlighted the importance of improving relations.
• Bangladesh is maintaining a very logical foreign policy that friendship to all Mal is to none.
• Bangladesh is also looking at India to improve relations at the same time they're also focusing their on China to strategically bolster on and and and move forward with the relations ranging from trade economy and infrastructure development and also there are some other issues like Thea River projects and there are also some discussions related to military acquisition as well.

Australian National Elections

• Australia's Prime Minister Anthony Albanese has called for national elections to take place on third May, setting a five-week campaign period in motion.
• Observers are expecting cost of living pressures to dominate the rallies amid surging housing prices and energy costs.
• Australia adheres to three-year term limits, which means the country must go to the polls by May 17th at the latest to select their new Parliament.
• Mr. Albanese, who heads the labor party, is seeking to secure a second term in office.
• He will face off with former policeman Peter Dutton, who leads the opposition Coalition.
• Mr. Dutton says the election is a choice on who can better manage the Australian economy, promising to bring the cost of living down in his pitch to voters.
• He also criticized the incumbent leader blaming Mr. Albanese and the labor party for the problems the country currently faces.
• Labor is focusing on three main areas to achieve this health education and child care they said they would offer a modest income tax cut cheaper doctor visits and lower cost medicines and student debt relief they've also said they will put $1 billion into building new child care services that's a huge issue and cost for young Australian families.
• The opposition have rejected proposed income tax cuts and said they will lower costs by making fuel cheaper and decreasing power bills one main strategy they have is that they will force gas giants in the country to set aside supply for domestic use that would otherwise be exported which they believe will cut wholesale prices by 40%.
• Opposition leader Peter Dutton also said he'd contribute to more money for youth Mental Health Services and support local businesses and interestingly he also plans to remove 41,000 public service jobs to reduce what he calls bureaucratic waste much like the government efficiency messaging of President trump.
• Nuclear power is a key policy difference between the two parties the opposition says building a nuclear energy network will help the transition away from coal but labor is focusing on Renewables.
• Surveys have shown the Coalition labor maintained a steady lead from the start of the year but the Gap has since narrowed and most analysis of the polls actually suggest a hung Parliament is likely which has only ever happened twice in Australia's history.

Hong Kong Rugby Sevens and Tourism

• Hong Kong's so-call super March tourism Blitz is paying dividends.
• The territory has welcome nearly 900,000 foreign visitors since the beginning of the month, a 133% increase from last year.
• Arts culture and sports events are all part of the campaign, and the government is targeting 49 million visitors this year, a 10% increase from 2024.
• That's down from the pre-co peak of 65 million visitors in 18.
• Hong Kong is hoping its new kitak Sports Park a billion doll 50,000 seater Stadium can bring in those numbers.
• Kitak is expecting more than 40,000 fans at the 3-day Hong Kong 7s rugby tournament.
• The Hong Kong rugby 7ev is an iconic event and the seventh is synonymous with Hong Kong.
• Last year about 30% of the people attending this event were from overseas and they contributed more than $60 million us to this particular event.
• This is very special because for the very first time it's held here in kitak stadium which actually was previously held in the Hong Kong stadium for about 30 years.
• This event has been happening in Hong Kong since 1976 and at that time when the first Hong Kong rugby sevs happened it only attracted 3,000 people and it was only for one day but today it has grown to a three-day event attracting some 50,000 people on a daily basis.
• Organizers say it is the biggest event that they've ever sold in terms of more than 90% of the tickets have been snapped up and you expect over 3 days 130,000 people to be here coming in and out of this Stadium.
• This is the first time that they actually hosting it in this stadium with a retractable roof.
• When the first officially open on March the 1st there were obviously some teething problems for example when they first forced a world snooker gr pre event that happened over here organizers had the people vacate the place before the competition was even over and that left many people very confused as to what was happening yet another incident was allegedly that some ticket TOS offered money to bring people into the back door and that reached security protocols and that also got the organizers as well as the Hong Kong Administration really angry as well.
• Hong Kong is definitely hoping that this Flagship event is really going to leave a memorable impression for a lot of people traveling into Hong Kong and also for the local residents as well because they're very proud of this particular stadium and more importantly they really want to keep the cash register ringing because Hong Kong wants to reboot the economy.
• Last year they received about 45 million visitors to Hong Kong but obviously that felt short of what they used to see in terms of Tourism figures back in 2018 with about 65 million visitors so they're hoping that this particular event for the future will be able to attract topnotch Mega international events.

Synthesis/Conclusion

The news program "East Asia Tonight" covered a range of significant events across the region. These included natural disasters like the earthquake in Myanmar and the wildfires in South Korea, geopolitical tensions in the South China Sea, economic developments such as China's efforts to attract foreign investment and the surge in Hong Kong's derivatives trading, and political events like the upcoming Australian elections and the evolving relationship between Bangladesh and China. The program also highlighted cultural and sporting events, such as the Hong Kong Rugby Sevens, as part of efforts to boost tourism. The overall picture is one of a dynamic and complex region facing a variety of challenges and opportunities.