Hong Kong’s Not the Only Asian Hot Spot

(Bloomberg) --

There are two new political hot spots in Asia, and they’re a long way from the tear gas-shrouded streets of downtown Hong Kong.

In India, Prime Minister Narendra Modi’s embrace of hardline Hindu nationalism at the expense of the country’s secular roots has brought thousands to the streets. The army has sent troops in to restore order.

Sparked by a new law that prevents undocumented Muslim migrants from neighboring countries receiving citizenship, the demonstrations have reached the capital, New Delhi, as well as other major cities and threaten to spill over into worsening communal violence.

It’s a far cry from the investor-friendly, open-for-business image Modi projects during his frequent international visits.

In Thailand, the government’s efforts to break up the highest-profile opposition party prompted a rare display of defiance against Prime Minister Prayuth Chan-Ocha’s military-backed administration.

The protests in Bangkok Saturday follow a sustained effort by the courts and the Election Commission to break up the Future Forward Party and drive its charismatic leader Thanathorn Juangroongruangkit out of politics.

With unemployment at a more than four-decade high in India and growth slowing, and Thailand still recovering from four years of military rule, neither government can afford to take its focus off the economy — especially not for crises of their own making.

Global Headlines

Impeachment vote | Donald Trump’s likely impeachment this week adds a stain to a presidency plagued by turmoil and partisan rancor. The House is all but certain to deliver the formal rebuke in a vote on Wednesday, marking the political climax of three years of Democratic furor and the end of a frenetic three-month investigation into whether Trump abused the power of his office. The fight is already casting a cloud over the 2020 election.

Brexit choices | British Prime Minister Boris Johnson is due to appoint new ministers to his cabinet today as he forges ahead with the divorce from the European Union after his election victory. But as Alan Crawford and Dara Doyle report, Brexit’s likely to increase tensions with Scotland and Northern Ireland — both oppose it — and could even threaten the unity of the U.K.

End of an era | After a dozen years as speaker of Iran’s parliament, Ali Larijani is bowing out. Larijani is among those who backed President Hassan Rouhani when Iran negotiated the 2015 nuclear deal with world powers and now stands weakened as the accord crumbles under Trump’s sanctions and Tehran’s tit-for-tat reprisals. Larijani decision is emblematic of how arch-conservatives are on the rise ahead of Feb. 21 national assembly elections.

Enduring support | Embattled Hong Kong leader Carrie Lam got a fresh boost from her backers in China during a visit to Beijing, with President Xi Jinping saying his government would “firmly support” her. It comes after another weekend of protests suggested six months of unrest in the Asian financial hub would continue in the new year.

• Hong Kong’s government has an ad in editions of the Wall Street Journal, Financial Times and the Australian with the message the city remains free and stable. “It’s been tough, but we will soldier on,” the ad reads.

Perceived enemies | Eleven former senior executives of Turkish non-state banks say were fired over the past two years on orders from banking regulators who are now overseen by Berat Albayrak, the president’s son-in-law who has been treasury and finance minister since July 2018. Two senior government officials say the stewards of the economy are looking to eliminate what they call economic “traitors” in both the public and private sector, especially after the lira collapsed in 2018. The banking regulator called the claims unfounded.

What to Watch This Week

• Mexico’s top trade negotiator is expected to meet with his counterpart Robert Lighthizer and U.S. lawmakers in Washington today after objecting to the congressional proposal to create multiple U.S. labor attaches to monitor implementation of a trade deal with the U.S. and Canada.
• China is threatening Berlin with retaliation if it excludes tech giant Huawei as a supplier of 5G wireless equipment, citing the millions of German vehicles sold in China.
• U.S. Secretary of State Michael Pompeo and Defense Secretary Mark Esper meet Wednesday with Indian Foreign Minister Subrahmanyam Jaishankar and Defense Minister Rajnath Singh.
• Zambian President Edgar Lungu says he wants the U.S. ambassador to leave the country after the diplomat criticized the sentencing of a gay couple to 15 years jail for having a consensual relationship.

Thanks to all who responded to our pop quiz Saturday and congratulations to reader Marc Koffman, who was the first to name India as the nation where the parliament approved legislation last week preventing undocumented Muslim migrants from neighboring countries from receiving citizenship? Tell us how we’re doing or what we’re missing at balancepower@bloomberg.net.

And finally ... Chinese nationalism knows no bounds when it comes to sports franchises. London soccer club Arsenal was the latest to run afoul of Chinese fans, after Turkish-German midfielder Mesut Ozil took to social media to criticize Islamic nations for failing to challenge China’s mass detentions of its Uighur Muslim minority. The remarks sparked a similar fury to Houston Rockets executive Daryl Morey’s brief support for Hong Kong protesters in October, with Chinese state-run television suspending broadcasts of the team’s matches. The bright side for Chinese Arsenal fans? They missed a 3-0 defeat to Manchester City.

--With assistance from Karl Maier, Karen Leigh and Brendan Scott.

To contact the editor responsible for this story: Kathleen Hunter at khunter9@bloomberg.net

©2019 Bloomberg L.P.