IMF heads to Sri Lanka, Japan’s upper house election campaign and G-7 summit


Welcome to your week in Asia.

China will sponsor two events this week: a peace conference with several African countries in Ethiopia’s capital Addis Ababa and a BRICS leaders’ summit to be hosted online by President Xi Jinping from Beijing.

On the other side of the globe, leaders of wealthy Group of Seven democracies will meet in Germany from Sunday to continue their discussions on the Russian-Ukrainian war and other pressing issues.

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IMF arrives in Sri Lanka for talks

A team from the International Monetary Fund is due to arrive in Colombo for talks on the country’s economic crisis, the worst since independence from Britain in 1948.

Sri Lanka defaulted on its external debt for the first time in its history last month and is in talks with the IMF for a bailout.

Horn of Africa Conference in China

China is hosting the first Horn of Africa peace conference in the Ethiopian capital, Addis Ababa. Beijing has appointed a special envoy for the region – which includes Ethiopia, Eritrea, Djibouti, Somalia, Sudan, South Sudan and Kenya – and wants to help reduce conflict and instability there. . Beijing sees East Africa as a gateway to the rest of the continent, with the desire to promote stability there marking a break with its usual policy of non-interference.


Australian Minister of Defense visit to India

Australian Defense Minister Richard Marles is visiting India for talks with his counterpart Rajnath Singh on ways to strengthen bilateral defense and security ties. It is the first high-level visit to New Delhi from the Australian side since Prime Minister Anthony Albanese took office last month and underlines that relations between the two nations remain strong despite the change in leadership in Canberra.

Australia, India, Japan and the United States form the Quadrilateral Security Dialogue, or Quad, which works for a “free and open Indo-Pacific”, a euphemism for containing Chinese influence in the strategic region.

US Uyghur Forced Labor Prevention Act comes into force

US legislation banning the import of goods from China’s Xinjiang region comes into effect, impacting billions of dollars worth of shipments and causing confusion and uncertainty for many businesses. The Uyghur Forced Labor Prevention Act, signed by President Joe Biden in December, will assume that all products from the region were made with forced labor.

China revises competition law

The Standing Committee of the National People’s Congress of China is meeting until Friday to consider several bills. Among them will be a draft amendment to an anti-monopoly law that was used in last year’s crackdowns on tech companies including Alibaba Group Holding.


Launch of the campaign for the election of the upper house in Japan

Launch of the campaign for the upper house elections on July 10 in Japan. Prime Minister Fumio Kishida’s Liberal Democratic Party will face tough questions about its defense and economic policies, especially as rising inflation hits voters’ pockets. Legislators in Japan’s House of Councilors serve six-year terms, with elections held every three years for half the seats.


Chinese President Xi hosts BRICS video summit

Chinese President Xi Jinping is expected to host the annual BRICS summit online, joined by his counterparts from Brazil, India, Russia and South Africa. The group’s foreign ministers met last month, when they discussed expanding their membership, as well as the COVID-19 pandemic and global economic uncertainty due to the war in Ukraine.

Nanya Tech inaugurates a $10 billion DRAM factory

Taiwan’s largest DRAM maker Nanya Technology holds a ceremony in New Taipei as it inaugurates a $10 billion factory – the biggest new Taiwanese investment in years in the memory chip sector, which has been dominated by South Korea. However, the project has been delayed for several quarters and production will not start until 2025 due to a shortage of materials, equipment and construction workers. The move also comes amid signs of a slowdown in electronics sectors ranging from TVs to smartphones.

Monetary Policy Announcements: Philippines, Indonesia


SoftBank Group AG

Falling tech valuations and rising interest rates are expected to be front and center once again at SoftBank Group’s annual shareholder meeting. The Japanese technology group racked up record losses in the financial year that ended in March, with its billionaire chairman and CEO, Masayoshi Son, betting on Arm’s upcoming IPO to revive its fortunes. Arm is a British chip designer belonging to the group.

GoGoX listings in Hong Kong

Logistics platform operator GoGoX is listed on the Hong Kong Stock Exchange, aiming to raise up to HK$567.3 million ($72 million) after fees and expenses. This target is lower than expected, suggesting that supply has been reduced in the face of lackluster markets.

GoGoX co-CEO Steven Lam said the company has not been deterred by the economic uncertainty and market volatility. The company, split roughly 50-50 between mainland China and the rest of Asia, is looking to expand into Southeast Asia. Founded in 2013, GoGoX connects 27.6 million shippers with 5.2 million registered drivers.

Inflation data in Japan

Japan releases its consumer price index for May, the result of which is expected to be a key factor in shaping the country’s central bank monetary policy. The benchmark index rose 2.1% in April from a year earlier to mark its largest increase in seven years, hit by global inflation and a weaker yen.


G-7 Summit

Leaders of wealthy Group of Seven democracies are meeting at Schloss Elmau, Germany, from Sunday to Tuesday. The Russian invasion of Ukraine has set the agenda for G-7 countries for months, as well as its implications for energy and food security. Climate action is also a major focus for this year’s summit host, Germany. Indonesia, India, Argentina, Senegal and South Africa have been invited to participate in this year’s event as partner countries.


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