Asia-Pacific - East Asia and Oceania RegionalPULSE: 22 MAY 2025

Report Summary

• China–ASEAN FTA 3.0 signals deepened economic integration amid Beijing’s simultaneous push for assertive national security and global peace-oriented diplomacy. The China–U.S. 90-day tariff pause lifts short-term trade optimism but remains politically fragile ahead of the U.S. election cycle.
• South Korea’s fragmented presidential race underscores rising public disaffection and institutional uncertainty, complicating policy direction. The country announced a 4.6 trillion won support package for SMEs affected by U.S. tariffs, demonstrating proactive economic stabilization.
• Australia’s Labor Party secures a second term, reinforcing domestic stability and regional engagement capacity, while opposition fragmentation adds policy unpredictability.
• North Korea escalates its defense posture with a new destroyer and revised military doctrine, reinforcing its shift toward militarization and arms export ambitions.
• Taiwan faces heightened defense concerns and energy stress following the full shutdown of its nuclear program, coinciding with increased PLA naval activity. The country’s industrial energy demand, driven by AI and semiconductor sectors, exposes vulnerabilities in its energy transition and grid reliability.
• Japan’s extension of work permits for Myanmar nationals aims to address labor gaps and reduce migration-related bottlenecks. The new cyber legislation enhances surveillance authority, raising concerns over civil liberties despite its national security framing.
• Mongolia unveils a tourism-led growth strategy targeting a $4B impact by 2030 and increased economic diversification.
• Hong Kong enacts six new security offenses under Article 23, expanding restricted zones and legal risks for international actors.