Xi Jinping says "no grudges" or conflicts of interest with New Zealand | East Asia Tonight (Jun 20)

Key Concepts

• China-New Zealand relations: Trade, security in the Pacific, "rules-based system."
• Iran-Europe talks: De-escalation, Iran's nuclear program, JCPOA, US involvement.
• Israel-Iran conflict: Strikes, retaliations, civilian targeting, evacuations.
• EU-China trade: Medical device tenders, reciprocal market access, "Made in China 2025," trade tensions.
• South Korea-US trade: Current account surplus, trade negotiations, tariffs.
• SoftBank's tech hub initiative: Robotics, AI, US manufacturing, TSMC, Samsung.
• South Korean equity market: Cosby index, President EJong's policies, "Korea discount," MSCI review.
• Japan's inflation: Core consumer prices, rice prices, Shigto Ishiba, cash handouts.
• China's economy: Retail sales, exports, stimulus measures, "strategic decoupling."
• PopMart: Blind boxes, "willful consumerism," regulations.
• Taiwan recall election: Guam Mindang lawmakers, Democratic Progressive Party, political landscape, cross-strait relations.
• China-Philippines relations: South China Sea, Scar Brochaw, water cannon, maritime drills.
• East Asian monsoon: Extreme rainfall, flooding, evacuations, economic losses.
• Czech Republic: State-sponsored hacking, China, Russia, cyber threats.
• Thailand: Political crisis, leaked phone call, territorial dispute.
• Chinese student: Sexual assault, rape, life imprisonment.
• North Korea: Human rights, COVID era controls, death penalty, hunger situation.
• Hiroshima: Atomic bomb, Emperor Narohito, Hibasha.

China-New Zealand Relations

• President Xi Jinping stated that China has no grudges or conflicts with New Zealand, emphasizing the need for greater respect and common ground.
• Prime Minister Christopher Luxen stressed the importance of a rules-based system during his meeting with Xi.
• China focuses on practical trade and economic cooperation, while New Zealand highlights security in the Pacific.
• Xi called for cooperation in trade, investment, science and tech innovation, climate change, infrastructure, education, culture, and youth exchanges.
• New Zealand suspended funding to the Cook Islands (worth $11 million USD) due to concerns over its deepening ties with China.
• Luxen's visit to Shanghai resulted in over $800 million worth of commercial deals.
• New Zealand depends on China for trade, accounting for more than 20% of its exports.

Iran-Europe Talks

• European and Iranian diplomats met in Geneva for the first face-to-face talks since the Israel-Iran strikes.
• Talks are likely to center on Iran's nuclear program.
• The E3 (Germany, France, UK) and the EU's top diplomat called for all sides to show restraint and emphasized diplomacy as the only path forward.
• Geneva was chosen as the location because it is where the initial framework for the JCPOA (Iran nuclear deal) was agreed upon.
• UK Foreign Minister David Lammy stated that a window exists for diplomacy to prevent regional escalation.
• A major sticking point is direct conversations between the United States and Iran.
• Iran is calling for European nations to pressure Israel to cease bombardments.
• The E3 believes that Iran's nuclear program exceeds what they describe as credible civilian purpose.

Israel-Iran Conflict

• The Israeli military carried out strikes in Tehran, targeting military facilities and a nuclear research site.
• The IDF targeted missile production sites and the organization of defensive innovation and research allegedly used for developing Iran's nuclear weapons project.
• Israel also attacked a key nuclear site in Arak, targeting the reactor's core seal.
• Iran retaliated with strikes on southern Israel, causing damage but no casualties.
• Israel accused Iran of deliberately targeting civilians through the use of cluster munitions.
• Australia, Bulgaria, Czech Republic, New Zealand, Portugal, and Switzerland suspended operations at their embassies in Iran.
• Japan evacuated 21 nationals from Israel to Jordan and 66 nationals from Iran to Azerbaijan.
• South Korea assisted four citizens in reaching Turkmanistan from Iran.
• China evacuated 119 citizens from Israel to Egypt.

EU-China Trade

• The European Union has blocked Chinese companies from participating in public tenders for medical devices worth over 5 million euros.
• The restrictions are the first to be implemented under the EU's international procurement instrument.
• The EU cites unfair practices where European firms face discriminatory barriers under Beijing's "Made in China 2025" policy.
• The EU's medical technology market was worth around 170 billion USD in 2023.
• China describes the restrictions as protectionist and a "typical case of double standards."
• Trade tensions are brewing between Beijing and Brussels after both sides took tit-for-tat measures.
• Brussels is looking to resolve China's tariffs on brandy and export curbs on rare earths ahead of the EU-China summit next month.

South Korea-US Trade

• South Korea's current account surplus with the US reached an all-time high of nearly $120 billion USD in 2024, marking an rise of about 30%.
• This could add friction in trade negotiations with Washington.
• South Korea is among the top 10 on US President Donald Trump's list of economies with significant trade deficits with America.
• President EJ Mong is seeking to get a trade deal with Mr trump.
• South Korea's shipments to the US are under threat of being hit with a 25% so-called reciprocal levy.
• South Korea's economy is heavily reliant on trade, with exports accounting for more than 40% of its GDP.
• Analysts estimate that Trump's tariffs could shrink total shipments by 2% and shave off by as much as 0.7 percentage points off of South Korea's GDP.

SoftBank's Tech Hub Initiative

• SoftBank founder Masayoshi Son is reportedly spearheading a trillion-dollar tech hub initiative in Arizona.
• The mega-scale industrial complex will focus on robotics and AI, similar to China's Shenzhen project.
• The project aims to bring high-tech manufacturing back to the US, create jobs, and cut America's reliance on overseas factories.
• Mr. Son is in talks with potential venture partners including Taiwan's chip giant TSMC and also South Korea's Samsung.
• He is also working with US authorities on tax breaks.
• If it goes through, it could be the biggest investment of its kind, twice the size of SoftBank's existing Stargate project.

South Korean Equity Market

• South Korea's equity benchmark, the Cosby, has ended above the psychological 30,000 level for the first time in more than 3 years.
• The Cosby last reached this milestone in early January 2021.
• Analysts attribute this upward trend to the expectation that President EJong's government policies will help boost the economy.
• This includes the recently proposed 14.7 billion USD extra budget to boost domestic demand.
• Mr. le's election promise is to bring the costby to a 5,000 point era and end the so-called Korea discount.
• Global index provider MSEI has lauded the efforts the South Korean authorities took to improve financial market access to foreigners.
• MSse reported that the progress is needed in areas such as capital and information flow as well as market structure.
• MSCI will be releasing its first annual market classification next week, and observers say the possibility for South Korea to get a reclassification is pretty low.

Japan's Inflation

• Japan's core consumer prices have jumped 3.7% in May from a year earlier, the fastest pace in more than two years.
• This comes amid soaring food costs, especially rice.
• The price of rice has more than doubled from a year ago.
• The government has tapped into its emergency rice stockpile.
• Surging cost of living is putting pressure on Prime Minister Shigto Ishiba ahead of a crucial upper house election expected next month.
• His approval ratings have plunged partially due to frustration over rising food prices.
• He has pledged cash handouts of 20,000 yen (roughly 139 USD) per person and double that for children.
• The inflation spike has put more pressure on the central bank to raise interest rates.

China's Economy

• China kept its benchmark lending rates unchanged at its monthly fixing.
• The one-year and 5-year loan prime rates left steady after those were lowered last month.
• Retail sales growth from May was over 6%, stronger than expected.
• Exports have picked up and are doing pretty well.
• A lot of the strength in China right now is borrowed from the future because exports have been frontloaded.
• Consumers who are buying fridges now won't be buying another fridge in the second half of the year.
• Growth in the first half of the year is probably around 5%, and in the second half of the year, it is expected to be 4%.
• Beijing may be saving some policy ammunition right now and ready to use it later in the year when growth slows again.
• US-China relations around trade and economics have improved a bit after the London talks.
• There is still strategic decoupling between the US and China.

PopMart

• Shares of Chinese toy maker PopMart tumbled as much as 6.6% in Hong Kong after a Chinese state media called out the "willful consumerism" of blind boxes.
• The world's largest toy maker ended the day trading more than 4% down, with rival Bloxs Group tanking by more than 9%.
• The People's Daily Media called for tighter regulations against blind boxes, adding that they induce minors to become addicted to purchasing them.
• China currently bans the sale of blind boxes to children under 8 years old.
• A humansized Labu doll fetched more than $150,000 USD at an auction in Beijing earlier this month.
• Despite PopMart's drop this week, shares are up by more than 160% this year, and the company still has a market cap of 40 billion USD.

Taiwan Recall Election

• Taiwan is bracing for its largest ever recall election, set for 26th of July.
• Petitions against 24 out of 31 Guam Mindang lawmakers have been approved.
• The remaining seven are still awaiting sufficient signatures to be submitted.
• The process has three stages: initial petition (1% of registered voters), second round (10%), and public vote (25% of eligible voters).
• Activists and civic groups supporting the ruling Democratic Progressive Party (DPP) are accusing the opposition KMT of blocking key legislations and cutting the budget.
• If any lawmaker is removed, a bi-election must be held within 3 months, and the Austin politician cannot run again in the same district for four years.
• President William Lie and his party are pinning their hopes on the mass recall campaign to regain control of parliament.
• At least six lawmakers need to be removed, and the DPP must win back all six seats in the bi-elections.
• Analysts warned that even if the DPP takes back control of parliament, the deepening partisan divide and political gridlock are likely to continue.
• Nearly 60% of the Taiwanese think that this vote has actually gone too far.
• If the DPP regains control of parliament, it's going to reshape Taiwan's policies towards China going forward.
• This could trigger a more aggressive response from Beijing because China considers William Lie a separatist and a troublemaker for his hardline pro-independence position.

China-Philippines Relations

• The Chinese Coast Guard confirms it has expelled a Philippine vessel around Scar Brochaw in the South China Sea.
• Necessary measures such as firing water cannon were taken after the Philippine ship insisted on intruding into the area.
• The Chinese Coast Guard says their actions were standardized and legitimate, calling Manila's actions a serious infringement on Chinese sovereignty.
• Beijing said it responded to what it called illegal activities from several Philippine vessels between 15th and 18th of June.
• The US, Japan, and the Philippines are holding joint maritime drills.
• Beijing is also conducting maritime drills in the waters between central Vietnam and the Parasel Islands.

East Asian Monsoon

• East Asian monsoon is gathering pace and threatening extreme rainfall in central and southern China.
• Flood waters rose more than 5 m above warning levels in a city of Chaoing in Guangdong province this week, breaking historical records.
• Tens of thousands of people had to be evacuated.
• Officials also issued red alerts late yesterday for several other provinces including Hunan and Guangi.
• China's rainy season came earlier than usual this year.
• Economic losses from natural disasters crossed the 10 billion dollar mark last July.
• Heavy rain is also expected in most of South Korea today, including the capital.
• Officials have issued heat stroke alerts in multiple parts of Japan.
• At least four people have died of suspected heat stroke so far, and more than 200 others in Tokyo were taken to hospital this week.

Czech Republic

• The president of the Czech Republic says China capabilities is on par with Russia when it comes to state sponsored hacking and spying.
• Beijing and Russia pose similar cyber threats to Europe.
• The Czech foreign ministry had been the target of what it called a malicious cyber campaign by a hacking group linked to the Chinese state security ministry.
• The same group known as APT31 also faces similar accusations from the US and UK.
• Beijing has denied the allegations.
• Prague under Mr pavl is a vocal supporter of Taiwan and has come under China's criticism for developing closer and unofficial ties with Taipei.

Thailand

• Thai Prime Minister Pongan Shinowat has arrived at the border province of Uban Ratatani, where a recent clash between Thai and Cambodian troops took place.
• A leaked phone call with Cambodia's former leader Hunen has triggered a political crisis that threatens to topple her government.
• Miss Pedong Dan has since apologized to the Thai people, saying her comments in the call were part of a negotiation tactic.
• The Bumjay Thai party pulling out of the government.
• The Democratic Party and the Chhattai Patana have decided to remain in the coalition.
• The most damaging impact from that league phone call is that it has damaged the trust in her leadership.

Chinese Student

• A Chinese student who was convicted of drugging and raping 10 women in London and in China has been sentenced to life in prison with a minimum term of 24 years.
• chunhao was convicted in March of 28th of offenses including 11 counts of rape against 10 women.
• Investigators say they had identified 50 further potential victims.
• The judge said he would be a danger for life and that he was a sexual predator.
• 24 more women have now come forward.
• He is believed to have lived in the UK since 2017.
• He was a PhD student when he was arrested after a woman reported she had been raped at his flat after he pied her with alcohol and drugs.
• Prosecutors presented evidence that Joe was a serial rapist who met women using online platforms and dating apps and invited them to his home under the guise of studying or to have drinks.
• He relied on drugs such as ecstasy and an industrial chemical the human body turns into the date rape drug GHB to incapacitate his victims before carrying out his attacks which he would secretly film using his phone and hidden cameras.
• Officers found nearly 1,300 videos.

North Korea

• The United Nations says that North Korea has continued to commit crimes against humanity, an issue made worse by COVID era controls that have yet to be lifted.
• It has been more than a decade since a landmark UN report concluded that the authoritarian state abused human rights.
• The use of the death penalty and continued use of executions.
• The hunger situation.
• During the depths of CO we saw not just hunger but we had credible reports of starvation.
• His team spoke to more than 300 North Koreans who fled the country in recent years.

Hiroshima

• Japan's emperor has paid respects to atomic bomb victims in Hiroshima ahead of the 80th anniversary of the tragedy.
• Emperor Narohito and Emperor Masako offered flowers at a memorial in the Hiroshima Peace Memorial Park yesterday.
• They also met with survivors of the bombing known as Hibasha.
• A US atomic bomb hit Hiroshima in August 1945 killing 140,000 people.
• A second bomb dropped 3 days later on Nagasaki killing 70,000 more.
• Japan surrendered shortly after ending World War II.

Synthesis/Conclusion

The news segment covers a wide array of topics impacting East Asia and beyond. Key takeaways include the complex diplomatic relationships between China and other nations like New Zealand, the ongoing tensions in the Middle East with potential for wider conflict, trade disputes between the EU and China, and economic challenges faced by countries like South Korea and Japan. The segment also highlights internal political issues such as the recall election in Taiwan and the political crisis in Thailand, as well as human rights concerns in North Korea and the lasting impact of historical events like the atomic bombing of Hiroshima. The overall picture is one of a region grappling with economic, political, and security challenges, both internal and external.