June 4:
The harsh economic climate, coupled with increasing U.S. debt, is causing countries to second guess conducting bilateral trade using American dollars. The Wall Street Journal reports that the Chinese leadership has been in talks with Malaysia and Brazil about solely using the Chinese yuan for business transactions. It is no secret that Chinese premier Wen Jiabao is concerned about the large U.S. deficit and Chinese experts believe there is less fiscal risk if the global currency consists of a group of currencies, rather than simply the U.S. dollar. Reportedly, there has been further talk of initially using Chinese yuan as the regional trade currency in Asia, and then expanding the idea around the world.
June 8:
A new East Asia summit may be materializing as China, Japan and the U.S. consider coming together to discuss shared concerns. The China Daily reports that the first trilateral dialogue between Beijing, Tokyo and Washington could be held as early as this July, with an agenda that reportedly includes regional security, energy and climate change in Asia. Chinese scholars note that, aside from the obvious benefits of closer dialogue, the talks could assuage Japan’s fears of expanding Sino-U.S. relations and moderate China’s worries about close Japan-U.S. ties. The talks could also significantly bolster the ability of all three nations to conduct long-term strategic planning with regard to the global financial crisis and the nuclear standoff with North Korea. As envisioned, future such talks could also include the South Korea, China and the U.S.
June 9:
An attack on a mosque in southern Thailand has brought that nation’s simmering five-year Islamist insurgency back in the forefront. Twelve people were reportedly killed in the shooting, which the Christian Science Monitor reports took place just hours after Thai Prime Minister Abhisit Vejjajiva held discussions with Malaysian leader Najim Raznak on the issue of Islamic radicalism. Although it is unclear who perpetrated the act, the Thai government has blamed Muslim insurgents, while locals in Thailand's unstable south speculate that Thai security forces were actually involved. According to BBC, the attack does not fit the typical profile of violence carried out by Muslim insurgents, while China's Xinhua news agency claims the attack was likely an attempt to spark conflict between the Buddhists and Muslims in the region.
June 13:
India has said that it plans to move its troops out of towns and cities in the disputed region of Kashmir. The announcement by Home Minister Palaniappan Chidambaram coincided with a visit to India by U.S. Under Secretary of State William Burns. But the decision reportedly had a distinctly domestic objective as well, according to the Times of London; to quell anger over the rape of two Muslim women by security forces. Kashmir currently houses 500,000 Indian soldiers and paramilitary troops, who henceforth will be used strictly for “conventional defense,” leaving local law and order the state police.
June 15:
Japan is contemplating major revisions to its defense policy and military posture. Defense News reports that the East Asian nation is considering relaxing a ban on arms exports which has been in place since 1967. Surprisingly, the decision to deregulate does not appear to be based on North Korean aggression, but on Japan’s business lobby. According to the trade weekly, Japan's indigenous defense sector is in jeopardy, with some 55 defense contractors forced out of business in the last five years alone. Some believe reducing the restrictions on arms exports and increasing co-development defense projects with other countries could revive the country's ailing industry. The relaxation of restrictions, however, is dependent on the outcome of the country's upcoming elections.