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China's Growing Influence in the Pacific

Cook Islands Prime Minister Mark Brown survived a vote of no confidence in parliament over his deals with China that strained relations with New Zealand. The opposition motion to oust Brown's cabinet was defeated 13-9, with two members abstaining from voting. The government holds 14 seats in the 24-seat unicameral parliament while the opposition holds 10.

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UK Concerned by Chinese Activity in South China Sea, Says Foreign Minister Δ1.75

Britain is concerned by China's "dangerous and destabilising" activity in the South China Sea, with British Foreign Minister David Lammy stating that the UK and world economy depend on these trade routes being safe and secure. The Philippines is particularly at risk, facing frequent challenges to freedom of navigation and international law. The situation has raised tensions in the region, with the US previously condemning a Chinese navy helicopter's manoeuvres that endangered a Philippine government aircraft.

'Impossible' For US to Give Up Indo-Pacific, Taiwan Defence Minister Says Δ1.74

Taiwan's Defence Minister Wellington Koo has emphasized that the United States cannot abandon the Indo-Pacific region, asserting its significance as a "core national interest." Amid rising military pressure from China, Koo expressed concerns regarding U.S. security commitments to Taiwan, highlighting the necessity for deterrence to maintain regional stability. The relationship between Taiwan and the U.S. remains crucial, as Taiwan relies heavily on American support despite the absence of formal diplomatic ties.

Britain, Philippines Committed to Rules-Based Order, UK's Lammy Says Δ1.74

British foreign minister David Lammy reaffirmed Britain's commitment to a rules-based international order, highlighting the importance of cooperation with like-minded partners such as the Philippines. Both countries have stood together in supporting Ukraine and advocating for a free and open Indo-Pacific region. The signing of a joint framework agreement enhances collaboration on defence, regional security, and climate action.

China Tightens Grip on Canada Through Carney's Rise Δ1.74

China will continue to grow bilateral relations with Canada on the basis of mutual respect and equality, the foreign ministry said after Mark Carney won the race to lead Canada's ruling party and become the next prime minister. Carney's victory came just a day after Beijing announced tariffs on over $2.6 billion worth of Canadian agricultural and food products on Saturday, in retaliation against levies Ottawa introduced in October. The move reflects China's growing assertiveness under President Xi Jinping's leadership.

Western Australia Polls to Test Popularity of Albanese's Party Δ1.74

The state of Western Australia will hold its final political contest before Prime Minister Anthony Albanese calls a national election, with the outcome expected to influence his re-election prospects. Albanese's Labor party is widely favored to win, but the conservative opposition Liberal party hopes to weaken their grip on power and pressure the Prime Minister. The ruling party has maintained a strong presence in the state parliament, with Premier Roger Cook likely to secure a third consecutive term.

Philippines Says Acts in National Interest in South China Sea Δ1.72

The Philippines' foreign ministry has asserted its independence and sovereignty in the South China Sea, emphasizing that its actions are driven solely by national interest. Manila's stance is a response to Chinese claims that it is being directed by external forces. The country's transparency initiative aims to shed light on China's actions in the region.

India's Modi to Back Mauritius Sovereignty over Chagos, Upgrade Security Ties Δ1.72

Modi will reiterate Mauritius sovereign rights over Chagos, Trump has indicated support to UK-Mauritius deal over islands. India, Mauritius to sign agreement to enhance maritime security. The move reflects a shift in regional dynamics, as India seeks to bolster its strategic partnerships with island nations against the growing influence of China.

China Will Work to Firmly Advance 'Reunification' With Taiwan, Premier Says Δ1.72

Chinese Premier Li Qiang has reiterated China's commitment to "firmly advance" reunification with Taiwan, opposing any external interference while appealing to the Taiwanese people as "fellow Chinese." The language used in this year's report marks a shift from previous statements, dropping the emphasis on "peaceful" reunification, reflecting China's increasing military pressure on the self-governing island. As tensions escalate, China's stance on Taiwan continues to prioritize economic relations, indicating that while reunification remains a key agenda, it may not be the primary focus amid broader geopolitical challenges.

Western Australia's Centre-Left Labor Party Re-Elected at State Poll Δ1.71

The Australian center-left Labor party has secured re-election in Western Australia, a significant victory that bolsters its stronghold on the state. Premier Roger Cook's re-election marks a third consecutive win for Labor in Western Australia, with the party winning 40 seats compared to the Liberal opposition's four. The strong showing of Labor in the crucial Western Australian election is seen as an extraordinary result.

New Zealand's Economic Missteps Hasten Exodus to Sunnier Shores. Δ1.71

New Zealand faces its worst economic downturn since 1991, with unemployment at a more than four-year high and companies going bust at the fastest pace in over a decade. The country's economy was the worst performing in the developed world last year, according to HSBC, and Australia has become a hot choice for kiwi jobseekers due to its better job prospects. Flawed data and policy missteps have worsened New Zealand's economic woes, leading many to seek opportunities elsewhere.

China Manufacturing Hits 3-Month High but Us Tariff War Clouds Outlook Δ1.71

China's manufacturing activity expanded at the fastest pace in three months in February as new orders and higher purchase volumes led to a solid rise in production. The official purchasing managers' index (PMI) rose to 50.2 in February, beating analysts' forecasts, but doubts remain about whether this upturn can be sustained amid a trade war with the US. Chinese policymakers are expected to announce economic targets and fresh policy support next week, which investors will watch closely for signs of further support for the struggling property sector.

China Monitored Philippine Supply Run to Grounded Warship on Disputed Shoal Δ1.71

China monitored a Philippine civilian boat delivering daily provisions to the "illegally grounded" warship at the disputed Second Thomas Shoal on Tuesday, marking a resumption of tensions in the region. The move by China's coast guard signals a lack of progress in the countries' efforts to manage maritime disputes through cooperation and diplomacy. The Philippines has maintained its presence at the shoal, despite calls from China for it to leave.

China's Countermeasures Spark Market Uncertainty. Δ1.70

China has swiftly retaliated against fresh U.S. tariffs, announcing 10%-15% hikes to import levies covering a range of American agricultural and food products, and placing twenty-five U.S. firms under export and investment restrictions. The move aims to deescalate tensions by limiting the impact on its domestic market, but raises concerns about the potential for a prolonged trade war. As the situation unfolds, market participants are left wondering how long China will resist further escalation.

Panama to Request Legal, Financial Documents on CK Hutchison-BlackRock Port Deal Δ1.70

The Panama Maritime Authority will analyze the key transaction between CK Hutchison and a consortium backed by BlackRock to ensure protection of public interest in two ports strategically located near the Panama Canal. The deal has raised concerns about China's influence in the region amid pressure from U.S. President Donald Trump. The Panamanian government aims to safeguard the interests of its citizens amidst the changing ownership landscape.

UK's Starmer Gets Poll Boost as He Steps up Ukraine Diplomacy Δ1.70

The number of Britons who think Prime Minister Keir Starmer is doing a good job has risen as he steps up his role in diplomacy over the war in Ukraine, an opinion poll showed. The recent diplomatic efforts have boosted Starmer's image, but concerns about government spending and debt remain. A majority of respondents also support increasing defence spending, even if it means higher taxes or reduced funding for other public services.

China Ramps Up Stimulus to Guard Economy From Changes 'Unseen in a Century' Δ1.70

China has introduced additional fiscal stimulus measures aimed at bolstering consumption and mitigating the adverse effects of an escalating trade war with the United States, with a growth target set at around 5%. Premier Li Qiang highlighted the urgency of addressing the "unseen" global changes and the impact on China's trade, technology, and household demand, emphasizing the need for a shift from an export-driven model to one that prioritizes internal consumption. Despite increased government spending plans, analysts express skepticism about the effectiveness of these measures in generating significant consumer demand.

Philippines to Scrutinize Donations by Suspected Chinese Spies Δ1.70

The Philippine government will scrutinize donations made by Chinese Communist Party-affiliated groups led by four Chinese nationals accused of espionage to determine if they were done in good faith, amid concerns about foreign influence and ulterior motives. The government has already arrested at least eight suspected Chinese spies, including the four accused of espionage, which has strained relations between the two countries. Presidential Communications Undersecretary Claire Castro emphasized the need for transparency and accountability in receiving donations from foreign sources.

China Trade Surge Pposes Challenge for Trump's South America Influence Δ1.70

China's huge and growing trade lead dulled the impact of Trump's measures, a warning sign of the potential limits more broadly of a punitive approach in a world where the United States has a growing number of economic rivals. South America's exports to China have more than doubled in the past decade, driven by booming commerce in recent years that boosted China's influence. The pragmatic U-turn by a natural U.S. ally underscores the challenge for President Trump in resource-rich South America, where booming trade with China has undermined his efforts to promote U.S. interests.

China Imposes New Curbs on U.S. Firms as Trade Row Grows Δ1.69

China has imposed retaliatory tariffs and placed export and investment restrictions on 25 U.S. firms on national security grounds, targeting companies involved in advanced technologies and surveillance systems, amidst growing tensions between the two nations over trade and human rights issues. The move aims to restrict access to sensitive technology and limit U.S. influence in strategic sectors. China's actions reflect a broader effort to assert its sovereignty and protect domestic industries from foreign competition.

India Opposition Unites Against Modi's Plan to Redefine Constituencies Δ1.69

The southern states' protest highlights the ongoing tensions between central government control and regional autonomy in India, with M.K. Stalin's proposal aiming to maintain a status quo that favors representation of densely populated northern states over less populous southern regions. The Modi government's plan is seen as an attempt to undermine regional interests and create a north-south divide. By supporting the 1971 boundaries until 2056, southern states aim to ensure equal representation in parliament despite population growth.

U.S. Withdrawal From International Alliances Undermines Trump's Leverage Over Beijing, Δ1.69

President Donald Trump's increasingly hostile stance toward traditional US allies will eventually benefit China, undermining what had been his own top priority coming into his second term, according to Evercore Vice Chairman Krishna Guha. President Donald Trump's increasingly hostile stance toward traditional allies puts China in a "sweet spot," as the U.S. abandons its allies in North America, Europe, and Asia, leaving Beijing without major leverage. This shift in focus allows China to concentrate on expanding its influence globally, rather than facing opposition from its largest trading partners.

Philippine, US Defence Pacts to Stay Intact. Δ1.69

The Philippines and the United States will continue to maintain their existing defence agreements under U.S. President Donald Trump, with Manila's ambassador to the United States expressing confidence in Washington's continued support for his country and the Indo-Pacific region. The Philippines is exploring alternative funding sources due to a freeze on US aid, but Romualdez remains optimistic about the future of the US-Philippines relationship. The Philippines needs to become a "real partner" to its ally, with Romualdez citing investments in the military and coast guard as key to achieving this goal.

China Consumption Slump Deepens as February Prices Drop Δ1.69

Consumer prices in China have fallen for the first time in a year, with authorities struggling to revive spending amid intensifying trade headwinds. The country's exports are expected to be impacted by US tariffs, which could limit economic growth this year. A prolonged trade war would likely keep inflation at bay, but also mean that consumers cannot rely on exports for strong economic recovery.

Trump Says Japan, China Cannot Keep Reducing Value of Their Currencies Δ1.69

U.S. President Donald Trump has warned Japan and China against continuing to devalue their currencies, claiming that such actions are unfair to American manufacturers. This statement comes amidst escalating trade tensions and the implementation of new tariffs on imports from these countries, which have already caused market fluctuations. Japan's finance officials have denied any intention to weaken the yen, emphasizing their commitment to stable currency policies amidst the pressures from U.S. trade actions.

Mainland Chinese Investors Buy Record Amount of Hong Kong Stocks Δ1.69

Mainland Chinese investors snapped up an unprecedented amount of Hong Kong stocks on Monday, further boosting their holdings amid a tech-driven rally this year, and surpassing the previous record seen in early 2021. The inflows from Chinese buyers came as the Hang Seng China Enterprises Index slid 2.1% following a 5.9% rally last week, but are expected to continue driving market momentum. As the influence of mainland investors grows in Hong Kong's financial hub, concerns about geopolitical risks and market volatility for foreign investors may be offset by speculation over favorable policy toward the AI industry.