Asian Insider, Aug 5: US-China tussle; Kashmir under curfew; Abe’s rating drops

Asian Insider brings you insights into a fast-changing region from our network of correspondents and commentators.

Hi all,

In today's bulletin: China's top diplomat in the US makes conciliatory remarks as Beijing's rift with Washington widens; Prime Minister Narendra Modi lays foundation for temple at a disputed site in Ayodhya as Kashmir goes under curfew; talks of a post-Abe era as the prime minister's rating slides, Indonesian economy contracts for the first time in nearly two decades, and more.

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CHINA'S AMBASSADOR TO US STRIKES CONCILIATORY TONE AS US-CHINA DIFFERENCES WIDEN

China's top diplomat in the United States Cui Tiankai struck a conciliatory tone at the Aspen Security Forum when asked about deteriorating ties, maintaining that China did not wish to see relations with Washington deteriorate any further.

"I don't think a new Cold War would serve anybody's interest," Cui said. "Why should we allow history to repeat... when we are faced with so many new challenges?" he told the Forum, while rejecting US allegations of Chinese spying in the Houston consulate shut down by Washington last month.

The ambassador's remarks coincided with reports that senior US and Chinese officials are set to hold a video conference on Aug 15 to review the implementation of a Phase 1 trade deal during which they could take up mutual grievances as well.

Overnight, however, the US Secretary of State Mike Pompeo offered protection for Hong Kong's pro-democracy campaigners in reaction to a crackdown in Hong Kong that has seen city police ordering the arrest of six activists living in exile on suspicion of violating a tough new security law.

In another development that could further widen the rift between US and China, Washington's de facto embassy in Taipei announced that US Health Secretary Alex Azar would lead a delegation to the self-ruled island. The visit, when it happens, would be the highest level visit by a US official in four decades.

China has strongly objected, saying it would endanger "peace and security".

Read also:

Australia PM Scott Morrison says building Indo-Pacific alliance will be 'critical priority'

KASHMIR BACK UNDER CURFEW AS MODI LAYS FOUNDATION FOR TEMPLE IN AYODHYA

Thousands of Indian troops fanned out across Kashmir and surrounding villages to maintain law and order as a curfew was imposed just ahead of the one-year anniversary of federal rule.

With the administration at a standstill, the Indian territory of Jammu & Kashmir is in an economic mess, writes India Correspondent Rohini Mohan. And the pandemic has made things worse.

Meanwhile, India witnessed another historic moment today as Indian Prime Minister Narendra Modi laid the foundation stone for a temple at a holy site in Ayodhya, in the state of Uttar Pradesh, that has been at the center of one of the country's most politically and culturally divisive issues.

Read also:

India Bureau Chief Nirmala Ganapathy: Many Kashmir politicians remain in detention, one year after region is stripped of autonomy

GROWING INFECTIONS TALLY HIT SHINZO ABE'S APPROVAL RATING

Growing number of coronavirus infections and deaths seem to be hitting approval ratings for Prime Minister Shinzo Abe.

A poll published by JNN on Monday showed that public approval for his performance had slid to a record low of 35.4 per cent. More than 60 per cent of the respondents felt he should declare a second state of emergency to bring cases under control, but this is something his ministers have rejected.

Observers point to another concern - that the prime minister seems to be letting go and is allowing potential successors to vie for attention before his term as party leader ends in Sept 2021.

Also read:

Japan Correspondent Walter Sim: Japan's daily case tally worse than during state of emergency

INDONESIAN ECONOMY SHRINKS FOR THE FIRST TIME SINCE '99

South-east Asia's largest economy contracted for the first time in nearly two decades with the pandemic hitting consumer demand as well as businesses.

The country's gross domestic product shrank by a bigger than expected 5.32 per cent in the April-June period from a year ago, according to data from Statistics Indonesia, the first contraction since 1999. The economy had been expected to shrink 4.61 per cent, according to a Reuters poll of economists, after growing by 2.97 per cent year-on-year in the first quarter.

Meanwhile, coronavirus infections continued to spread with the total number of cases at 116,871, the highest in the region.

Read also:

Indonesia's State Palace vows compliance with coronavirus protocol after Jokowi, ministers seen sans masks

HONG KONG'S RICHEST FAMILY, THE KWOKS, SEE FORTUNES SHRINK US$8 BILLION IN ONE YEAR

The Kwoks, the family behind Hong Kong's largest property empire - Sun Hung Kai Properties - saw their fortune shrink by almost US$8 billion (S$10.97 billion) in the past year. Shares of the Kwoks' company are now trading at less than half the value of the company's net assets. The group owns office towers, hotels, shopping blocks and apartment blocks and the stock's new low also reflects investor concerns about the city as China tightens its grip.

IN OTHER NEWS

SRI LANKA VOTES AMID PANDEMIC: Sri Lankans lined up before polling stations opened on Wednesday, wearing masks and social distancing, to elect a new parliament that President Gotabaya Rajapaksa hopes will clear the way for him to boost his powers. He is seeking a two-thirds majority for his party in the 225-member parliament to enable constitutional reforms that would enable him to implement his economic and national security agenda.

MANY INDONESIANS ARE FED UP WITH POLITICAL DYNASTIES: Many Indonesians are fed up with Indonesia's thriving political dynasties, a recent survey by the Research and Development Department of Kompas newspaper has revealed. Nearly 61 per cent of the total 553 polled respondents said they did not like the idea of family members of political leaders running for regional head posts.

INDIA WIDENS CHINA APP BAN: India has banned 47 more mobile apps of Chinese companies, reports said, in New Delhi's latest move to hit Chinese companies following a border clash between the neighbours. India in June outlawed 59 Chinese apps for threatening the country's "sovereignty and integrity", including ByteDance's video-sharing app TikTok, Alibaba's UC Browser and Xiaomi's Mi Community app.

That's it for today. Thanks for reading. We'll be back with you tomorrow.

Shefali

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