China has come under increasing international pressure to change its currency policy, especially from the US, insisting that China is artificially keeping the value of the yuan low to help its exporters at the expense of foreign competitors.

China has effectively pegged the yuan to the US dollar for the last two years. In 2005, it briefly allowed a controlled appreciation of the currency, but ended that policy when the global economic crisis threatened demand for its goods abroad.

Sources:
China Yuan Stability Pledged [BBC News, 20 June 2010]
Rise in Currency to be Slow, China Insists [The New York Times, 21 June 2010]

This announcement comes after Hatoyama held a meeting with DPJ party members where despite calls by his members to resign, he vowed to continue in his post.

Sources:
Japan PM Hatoyama Pledges to Stay On, but Future Uncertain [The Wall Street Journal, 31 May 2010]
Hatoyama Resigns over Base Row [The Wall Street Journal, 2 June 2010]

Gathered pieces of the sunken warship were put together and analysed by investigators from Australia, Britain, Sweden and the United States at the port of Pyongtaek, 65km west of Seoul. This systematic multinational investigation ensured a fair examination, garnering the South enough international support to place effective diplomatic and economic sanctions on the North.

South Korea will formally blame North Korea and appeal to the UN Security Council to take up the issue this week, pressing for a tightening of sanctions on Pyongyang.

Sources:
South Korean to Blame North Korea for Torpedoing Warship [ChannelNewsAsia, 19 May 2010]
S. Korea Wraps Up Warship Probe Amidst U.S. Backing [AFP, 18 May 2010]
South Korea to Accuse North of Torpedo Attack [The New York Times, 18 May 2010]

Photographs and images used on this website are obtained from publicly-accessible resources. No copyright infringement is intended.

Protestors signaled warnings toward Prime Minister Hatoyama by dressing in yellow, reminding him of the promise he made during elections to move the busy base off Okinawa altogether. Hatoyama’s efforts to find a new location for the base have not appeased Washington. The original 2006 deal calls for moving the base from its current location, in the center of the city of Ginowan, to Camp Schwab, an existing Marine base in less-populated northern Okinawa.

Japanese have long been resentful of the massive US base on the island, which is home to more than half the 47,000 American troops based in Japan. Hatoyama has given himself till end May to resolve the issue.

Sources:
90,000 Protest U.S. Base on Okinawa [The New York Times, 25 Apr 2010]
Japanese Islanders Stage Mass Rally Against US Base [ChannelNewsAsia, 25 Apr 2010]
Mass Rally in Japan Against US Base on Okinawa [BBC News 25 Apr 2010]

Photographs and images used on this website are obtained from publicly-accessible resources. No copyright infringement is intended.

The landmark Nuclear Security Summit comprised of representatives from 47 countries, attempting to craft an agreement on keeping nuclear weapons out of terrorist hands by securing stocks of fissile material such as highly enriched uranium and plutonium.

Earlier in the week, Obama approved a new nuclear policy for the US, devising nuclear arsenal cuts, refrainment from nuclear tests and use of nuclear weapons against countries that did not have them. The sessions close on Tuesday with a joint statement on efforts to prevent the transfer of nuclear materials and technology and to keep them locked up.

Sources:
Obama Takes Non-Nuclear Pledge to World Leaders [The Associated Press, 11 Apr 2010]
Obama, Hu, Press on Strong Words for Iran [The New York Times, 12 Apr 2010]
Ukraine, ‘in Uranium Pledge’ at World Summit [BBC News, 12 Apr 2010]
White House Secures China’s Support for Iran’s Sanctions [The New York  Times, 12 Apr 2010]

Photographs and images used on this website are obtained from publicly-accessible resources. No copyright infringement is intended.

Had the report concluded China was manipulating its currency, it likely would have set off a chain of events that resulting in unilateral US sanctions against Chinese products, further aggravating fragile relations between the two countries. Some economists see the delayed report as the administration giving the Chinese some breathing room, propelling them to adjust the yuan accordingly on their own.

Other signs point to a warming relationship between China and the United States. Last weekend, China announced it would consider revising its stance on sanctions against Iran, sanctions that the Obama administration is pushing hard for given its stance on Iran’s nuclear regime.

Sources:
US Treasury Delays China Currency Report [BBC News, 3 Apr 2010]
U.S. to Delay Chinese Currency Report [New York Times, 3 Apr 2010]

Photographs and images used on this website are obtained from publicly-accessible resources. No copyright infringement is intended.

UNITED States President Barack Obama’s decision to postpone his visit to Indonesia and Australia last week was understandable. The health-care Bill, a centrepiece in his legislative agenda, was at a critical juncture and domestic priorities trump international visits. Moreover, the President had visited Asia less than six months ago and has rescheduled for June, not so far off.

Yet while the postponement will be accepted – including by the Indonesians, who had looked forward to welcoming Mr Obama to the land where he spent part of his youth – it is neither insignificant nor without consequence.

This goes beyond the symbolism of the Chinese Premier deciding to visit Indonesia before Mr Obama arrives in June. It points to deeper questions about America’s future in Asia. And it also touches upon the different visions of the regional architecture that have been put forward by Australia, Japan and Asean.

Australian Prime Minister Kevin Rudd has proposed an Asia-Pacific Community while Japanese Prime Minister Yukio Hatoyama has spoken of an East Asian Community. In the meantime, Asean leaders have emphasised the group’s centrality and would prefer to develop existing regional structures instead of creating new ones. Some in Asean propose expanding the East Asian Summit, where Asean hosts the leaders of China, Japan, South Korea, India, Australia and New Zealand. Singapore Senior Minister Goh Chok Tong recently suggested bringing in the US and Russia, to make what might be called an Asean+8. Details have yet to be given. But this is more than just a question of acronyms and numerals.

Asia may propose, but much will depend on US attitudes. Its willingness to engage Asia cannot be taken for granted. The postponement of Mr Obama’s visit to Indonesia is another sign of how the mood is changing in the US.

The Obama administration began with considerable ambitions in Asia. It showed its commitment in the first Asean-US Summit, with the President personally declaring himself the first Pacific President. But at the end of last year, when Mr Obama journeyed to Singapore for the Apec summit, he was pilloried at home.

Concurrently, frustration about joblessness grew and the President’s approval ratings fell. The US economy remains fragile now and domestic issues continue to take precedence over international ones. The consequence may well be drift in America’s relations with East Asia.

Consider trade: When President Obama attended the Apec summit, he won kudos for showing interest in the Trans-Pacific Partnership. But the truth is that a number of free trade agreements that the US has already negotiated – with South Korea, for instance – remain mired in Congress, unratified.

When American attention does turn to Asia, its agenda can be worrying. It is now filled with complaints about China, including its undervalued currency. This signals a growing belief among Americans that trade with Asia is not always to their benefit. Given this mood, it is possible the US will either be largely absent from Asia, or engage with it acrimoniously.

In the past, Asians would have sought to accommodate America’s demands. Not so now. China for one sees no need to bend to US pressure. Even Japan is openly debating the value of US military bases in the country. Asians are growing more confident and self-assertive, and not without justification.

But Asian triumphalism must be avoided. So too must the belief that Asians can go it alone, without America. There are security threats and rivalries in the region that continue to require US involvement. Moreover, the US is still by far the largest economy, and a critical market for Asia.

Instead of simply waiting for Mr Obama, Asians should seek to engage America in new and more sustainable ways. One forum can be Apec. But Apec is focused on economics and its membership goes beyond just Asia and the US.

Another forum can be the summit that Mr Obama began with Asean. This is important as a complement to the active ties that Asean has with China, Japan, India and other key players.

Another initiative by Asians may be useful. Hence the various proposals. While these differ, some key principles can be aligned. First, any new arrangement should aim to ensure a regular dialogue among strategic partners, especially the US. However, we must accept that these dialogues cannot occur too often. The political reality is that while America continues to be important to Asia, its leadership may not always be present.

Second, any new arrangement cannot be seen as trumping intra-Asian frameworks, in which Asean has been central. No major power, including the US, can be allowed to dominate these arrangements.

Third, any new arrangement should be inclusive and based on principles of equality. Asia cannot be run by a small directorate of major powers. Medium- and small-sized states must be included.

The Australian, Japanese and various Asean proposals will be debated. Whatever emerges, one hopes it will embody these principles – to the benefit of all those who wish Asia to continue to engage America and vice versa.

The writer is chairman of the Singapore Institute of International Affairs. Think-Tank is a weekly column rotated among eight leading figures in Singapore’s tertiary and research institutions.

Google plunged into the Chinese market in 2006, promising to comply with strict Chinese censorship laws. It is no secret China operates one of the most sophisticated and wide-reaching censorship systems in the world, stressing the importance of foreign companies to abide by their legislation. Google’s move represents a powerful rejection of Beijing’s censorship but also a risky ploy in which Google, a global technology powerhouse, will essentially turn its back on the world’s largest Internet market, with nearly 400 million Web users.

Accounting for 1 – 2% of Google’s total revenue of $24 billion, it is unlikely the closure of Google China would affect their growth prospects in the near future. Google also states that it plans to continue its research and development work there as well as maintain their sales staff there.

Photographs and images used on this website are obtained from publicly-accessible resources. No copyright infringement is intended.

Sources:

China Shuts China Site in Dispute Over Censorship [The New York Times, 22 Mar 2010]
Google Stops Censoring Search Results in China [BBC News Online, 23 Mar 2010]
China Says Google “Totally Wrong” to Stop Web Censorship [Channel News Asia, 23 Mar 2010]

Photographs and images used on this website are obtained from publicly-accessible resources. No copyright infringement is intended.

President Barack Obama invited Singh on the first full-fledged state visit since he entered the White House in January, a sign of the rapidly warming ties between the world’s two largest democracies.

Singh was due to head on Tuesday to the White House for the pomp of a state visit, including a red-carpet welcome on the South Lawn and a black-tie dinner that is one of Washington’s most coveted invitations.

As US and Indian flags flew across Pennsylvania Avenue connecting the White House and the Capitol, Singh started his visit by meeting with business leaders – who he said were crucial to building the two countries’ ties.

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Source: AFP (through Channel NewsAsia), “Indian PM pitches for growing US ties,” November 24, 2009, http://www.channelnewsasia.com/stories/afp_asiapacific/view/1020116/1/.html

Obama and Wen hailed efforts by both sides to build a new, in-depth partnership as they sat down for discussions before a working lunch in Beijing.

“Dialogue is better than confrontation and partnership is better than rivalry,” Wen said in his opening remarks.

“I sincerely hope that by making this visit to China, Mr President, we will be able to take the comprehensive, cooperative relationship between the two countries to a new level.”

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Source: Agence France Presse (through Channel NewsAsia), “Obama meets Wen as trip winds down,” November 18, 2009, http://www.channelnewsasia.com/stories/afp_asiapacific/view/1018965/1/.html