27 May, 2013
Trade & Investment

Sixty key products spread across various sectors including food, medicine, construction materials, agricultural products and plastics were highlighted at the China-ASEAN Expo, showcasing the strong trade links between China and ASEAN. ASEAN is now considered China’s third largest trade partner with bilateral trade from January to April of this year reaching US$138.97 billion, an 18.1% year-on-year increase. Malaysia is China’s largest single trade partner from within the ASEAN bloc with trade volume reaching US$33.88 billion during the first quarter of the year.

25 May, 2013
Political Security

As coordinator for ASEAN-China relations for 2013, Thailand proposed that ASEAN ministers meet sometime in August to firm up its position on the protracted South China Sea disputes before meeting with Beijing in September later this year to discuss the sea disputes, including how to move forward a proposed regional code of conduct aimed at reducing territorial and maritime conflicts in the South China Sea.

25 May, 2013
Trade & Investment

Industrial and Commercial Bank of China’s Singapore branch will start providing yuan-clearing services in Singapore to participating banks beginning Monday, 27 May 2013. The new system is expected to divert some yuan flows from Hong Kong, and whilst Hong Kong have much more experience dealing with yuan, the availability of competitive yuan clearing, the increase in volume of yuan-denominated trades through Singapore would deepen the overall pool of yuan liquidity outside China, which would in turn accelerate the development of new offshore yuan products and services, according to HSBC Chief Executive Guy Harvey-Samuel.

22 May, 2013
Political Security

The Arctic Council, which traditionally has served as a watchdog for the rights of the region’s indigenous people and protector of its fragile ecosystem, has granted observer status to six Asian states. Being the sole ASEAN representative, Singapore is joined by China, India, Italy, Japan, and Korea in observing the ministers’ short meeting, which is held only every two years. According to Norwegian Foreign Minister Espen Barth Eide, “by becoming an observer you’re also signing up to the principles embodied by this organization.”

22 May, 2013
Political Security

The recent ASEAN+3 Airport Interdiction Task Force Workshop held in Badung, Indonesia has seen the ASEAN drug law-enforcement agency, together with China, Japan and South Korea, reaffirm their joint commitment to combat the growing concern of narcotics trafficking in the region. Through strengthening airport interdiction cooperation, the countries hope to prevent and cut off international drug trafficking and narcotics precursors in the region; this is in line with the region’s commitment to realise Drug Free ASEAN 2015, as stipulated in the ASEAN Leaders’ Declaration on Drug Free ASEAN 2015.

22 May, 2013
Trade and Investment

ASEAN rice exporters Vietnam and Thailand, the world’s second- and third-largest exporters of rice, stand to be in line for a significant opportunity to increase their exports to China should further testing reveal cadmium contamination of Chinese rice to continue to be a problem; the Chinese government reported that nearly half the samples of rice showed cadmium above permissible levels with the rice originating from nearby Hunan province, China’s largest rice-producing province. India, the world’s largest rice exporter, will not be in a position to take advantage of this as China limits imports due to quality concerns.

22 May, 2013
Trade and Investment

The Philippine tourism industry has taken a significant hit with travel agencies from Taiwan cancelling nearly all tour packages involving approximately 9,500 tourists. Officials forecast that the Philippines will lose between 40,000-50,000 tourists from Taiwan within the next 6 months; with a total of only 216,511 tourists from Taiwan in 2012, a shortfall of 50,000 tourists represents a significant loss. This follows the 9 May 2013 shooting of a Taiwanese fisherman by the Philippine Coast Guard in the disputed South China Sea in the midst of a territorial dispute.

7 May, 2013
Political Security

• A fleet of at least 30 Chinese fishing vessels set off for the disputed Spratly Islands on Monday, and are expected to stay in the area for about 40 days, China’s Xinhua news agency reported
• The fleet departed from China’s Hainan province, with each ship having a capacity of more than 100 tons
• Huang Wenhui, who heads the fishing office in the Department of Ocean and Fisheries of Hainan Province, said the fleet is to explore opportunities of sustained and regular fishing around the islands
• The Philippines responded by sending Navy ships to closely monitor the latest developments in the Spratlys, and will be ready to assert the country’s sovereignty over the Spratlys
• Armed Forces of the Philippines (AFP) spokesman Brig. Gen. Domingo Tutaan Jr. said actions to be taken against the Chinese fishermen will depend on the ground situation

7 May, 2013
Political Security

• Officials from China, Laos, Thailand, Cambodia and Vietnam have gathered in Myanmar for several days of talks on a deepening drugs crisis, which the United Nations has warned poses a threat to public security
• A rebound in poppy cultivation over the last six years in Myanmar, the world’s second-largest opium producer, has raised grave concerns among officials, while amphetamine-type stimulants (ATS) are also surging
• While the previous target was to eliminate drug production by 2014, Myanmar deputy police chief Zaw Win has announced during the opening of the six nations talk to extend efforts to 2019
• Concluding the six nations talk on Thursday, China and the five ASEAN countries pledged to boost cooperation in fighting against illegal drugs in the region, step up alternative development programmes and share experience in drug use prevention, treatment and public awareness raising exercises

6 May, 2013
Trade and Investment

• Availability of cheaper coal imports and an increase in hydro power output has affected China’s domestic demand for coal, resulting in an abundance in stocks throughout the industry and forcing producers to slash output quantity
• Slowing growth in China further affected demand for the commodity, and the domestic market struggles to absorb the excessive supplies, pushing down domestic coal prices to 613 yuan (US$ 99.95) a tonne
• 32 of the 43 coal companies listed on China’s stock markets seeing earnings decline from a year earlier
• Industry wide revenues and profits have gone down 0.8% and 51.4% on average respectively
• Introduction of a coal tax is also anticipated in China’s energy tax reforms, and could hit the industry severely
• Coal mine safety has improved but is still a concern in China, with accidents killing a total of 1,384 people in the year 2012