Asia Communique
Taiwan to Procure Up to 1,200 More U.S. Attack Drones | Hyundai-LG Georgia Plant Raid Sparks Diplomatic Ripples | Beijing-Linked Hackers Target U.S. Trade Talks | Pacific Islands Forum This Week
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Today’s Asia Communique newsletter follows below.
Beijing-Linked Hackers Impersonated U.S. Lawmaker During Trade Talks
A suspected Chinese cyber-espionage campaign targeted U.S. trade policy discussions last July, as the Trump administration prepared for high-stakes negotiations with Beijing in Sweden, The Wall Street Journal reported. Hackers impersonated Rep. John Moolenaar (R-Mich.), chair of the House committee on U.S.-China competition, in emails sent to trade groups, law firms, and government agencies.
The emails, sent from a non-government address, requested “input” on draft sanctions legislation and contained malware traced to APT41, a hacking group believed to operate on behalf of China’s Ministry of State Security. Cybersecurity firm Mandiant said the spyware would have allowed hackers deep access to targeted networks if recipients had opened the attachments.
The FBI and Capitol Police are investigating the incident, part of a broader wave of China-linked intrusions aimed at gaining insight into U.S. strategy. It remains unclear whether any breaches were successful. In a statement, Moolenaar called the impersonation “another example of China’s offensive cyber operations designed to steal American strategy,” adding, “We will not be intimidated.”
The campaign coincided with July’s U.S.-China trade talks in Stockholm, where officials sought to avert a tariff escalation. Analysts believe the hackers were seeking to understand the recommendations President Trump was receiving from outside groups ahead of negotiations.
APT41, one of China’s most prolific hacking groups, has been tied to both state-directed espionage and financially motivated cybercrime. U.S. officials previously charged members of the group in 2020 for stealing trade secrets, personal data, and even digital video game currency.
The incident comes amid a surge in AI-driven impersonation attacks. The State Department recently warned diplomats that impostors were using AI-generated voice deepfakes of Secretary of State Marco Rubio, while federal authorities are investigating similar impersonation attempts targeting other senior officials.
High-Stakes Diplomacy at the Pacific Islands Forum
This week, Pacific leaders, diplomats, and officials are converging on Honiara, the capital of the Solomon Islands, for the Pacific Islands Forum (PIF) — the region’s most important political gathering. The meeting comes amid intensifying China-Australia competition, as both countries ramp up aid, hand over police vehicles, and jostle for influence across the Pacific. One analyst described the rivalry as “almost comical,” with Beijing and Canberra locked in a tit-for-tat contest on the ground.
Before the summit, Australian Prime Minister Anthony Albanese will stop in Vanuatu on Tuesday, where he is expected to sign the landmark Nakamal Agreement — a US$500 million, decade-long development and security pact. The deal, aimed at strengthening infrastructure, climate resilience, and economic ties, also signals Canberra’s intent to counter Beijing’s growing security footprint, including Chinese police training programs in Vanuatu.
The PIF meeting itself has already stirred controversy. Solomon Islands Prime Minister Jeremiah Manele has barred two dozen “dialogue partner” nations — including the U.S., Japan, and the U.K. — from attending official sessions, a move widely seen as an attempt to sidestep disputes over Taiwan’s participation. However, those excluded are expected to seek bilateral meetings on the sidelines, setting the stage for intense behind-the-scenes diplomacy.
Security will also dominate discussions, as China’s expanding role in police training and regional security continues to unsettle traditional players, particularly Australia. With Papua New Guinea’s 50th independence anniversary celebrations next week, Albanese and other Pacific leaders will move from Honiara to Port Moresby, marking what observers see as a pivotal moment in the Pacific’s geopolitical trajectory.
Georgia Hyundai-LG Plant Raid
The massive ICE raid at a Hyundai-LG car and battery plant in Georgia — the largest single-site immigration enforcement operation in U.S. history — has left deep ripples across communities, industries, and diplomatic circles.
On Thursday morning, 475 workers were detained — including 300 South Korean nationals — as federal agents, armored vehicles, and Homeland Security investigators stormed the $7.6 billion facility near Savannah. Many detainees were contractors installing EV production lines, with several attempting to flee into nearby water.
While U.S. officials maintain that those detained were “illegally present” — citing expired visas, wrong visacategories, or unauthorized employment — the raid has raised complex questions about America’s workforce, foreign investment, and global supply chains. One worker told the BBC he was “shocked but not surprised,” pointing to a business culture where companies cut corners on visas to meet aggressive project deadlines.
Hyundai and LG Energy have stressed full cooperation with U.S. authorities and noted that none of the detained workers were directly employed by Hyundai. However, the fallout could extend beyond the site. Local Korean-American leaders voiced concern about the image of South Korean firms and potential strain on U.S.–Korea economic ties, given the project’s role as Georgia’s largest-ever foreign investment and a cornerstone of the U.S. electric vehicle supply chain.
As one witness put it: “After this happened, many companies will think again about investing in the United States… setting up a new project might take much longer than before.”
Taiwan to Buy Up to 1,200 More Attack Drones
Taiwan’s Ministry of National Defense is expanding its drone arsenal under “Project Hunter Owl,” seeking to procure 800 to 1,200 additional attack drones from the U.S.
Taiwan has already purchased 685 Switchblade 300 loitering munitions and 291 Altius 600M-V anti-armor drones, but a recent assessment found current stockpiles insufficient. Defense Minister Wellington Koo said the military is considering the Altius-700 series as part of the new phase.
The move comes ahead of next week’s Taipei Aerospace & Defense Technology Exhibition (TADTE), where Taiwan will showcase newly acquired M1A2T Abrams tanks, HIMARS rocket systems, and domestically developed explosive, kamikaze, and surveillance drones for the first time.
Anutin Charnvirakul Sworn In as Thailand’s New Prime Minister
Thai tycoon Anutin Charnvirakul took office on Sept. 7, ousting the Shinawatra political dynasty after parliament backed his coalition government. Best known for leading Thailand’s 2022 cannabis decriminalisation, Anutin has pledged to govern “tirelessly” but must call fresh elections within four months under the terms of his coalition deal.
Japan Prime Minister Shigeru Ishiba Resigns After Election Defeats
Japanese Prime Minister Shigeru Ishiba announced his resignation on Sunday, ending a brief and turbulent term marked by major electoral losses and growing political instability. Despite securing a crucial trade deal with the U.S., his Liberal Democratic Party (LDP) lost its majority in both houses of parliament, prompting mounting pressure and a revolt within party ranks .
Ishiba said he was stepping down to prevent a further deepening rift within his party. Meanwhile, financial markets responded with a sell-off of the yen and long-term bonds, reflecting concerns over the power vacuum and leadership uncertainty . Potential successors include Sanae Takaichi, known for advocating looser fiscal policy, and Shinjiro Koizumi, seen as a continuity candidate .
Japan now faces a period of uncertainty as the LDP organizes an emergency leadership race, and the public awaits whether a fresh election will follow to affirm the new leadership’s mandate.
Upcoming Events This Week
Monday, September 8
Marcos in Cambodia — Philippine President Ferdinand Marcos Jr. continues his state visit, focusing on trade, agriculture, education, and tourism cooperation.
APPEC 2025 — Singapore hosts the Asia Pacific Petroleum Conference, with energy executives and officials discussing financing, tech disruptions, and market trends.
Pacific Islands Forum — Leaders meet in Honiara to address climate change, crime, and regional tensions. External partners, including the U.S. and China, are excluded this year.
CITIC Investor Forum — A four-day Hong Kong event on cryptocurrencies, Chinese tech, and macroeconomic trends.
Trade Data — Vietnam and China release fresh figures.
Tuesday, September 9
Thaksin Ruling — Thailand’s top court decides if former PM Thaksin’s hospital stay violated sentencing; jail time is possible.
Apple Launch — Apple unveils its latest iPhones, Apple Watches, and AirPods, with possible updates to AirTags and Apple TV.
Wednesday, September 10
Semicon Taiwan 2025 — Taipei hosts Asia’s biggest chip conference, drawing 1,200 companies and 100,000 visitors.
Philippines Jobs Data — Latest employment figures released.
Thursday, September 11
Japan–Philippines Defense Pact — Reciprocal access agreement takes effect, enabling joint military exercises.
Lee’s 100 Days — South Korean President Lee Jae Myung marks his first 100 days with a policy-focused news conference.