Indonesia, EU agree to move forward on trade deal
Indonesian President Prabowo Subianto met with European Commission President Ursula von der Leyen in Brussels on Sunday.
They said they have sealed a political agreement on a Comprehensive Economic Partnership Agreement. The two sides are aiming for a final agreement in September.
Subianto said, "We consider Europe to be a very important for us. That's why we would like to see more European presence and more European participation in our economy."
Von der Leyen added that the new agreement will "open new markets" and create "more opportunities" in key industries. She said, "Businesses active in agriculture and automotive and in services will massively benefit from it."
The United States is a major market for Indonesian and EU exports. But the two are trying to diversify their trade ties amid worries about the economic impact of the Trump administration's tariff policies.
Thailand and Malaysia are also accelerating negotiations with the EU on free-trade agreements.
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The Diplomat
7 hours ago
- The Diplomat
France Refocuses Its Indo-Pacific Strategy Amid a Shifting Global Order
France's updated Indo-Pacific strategy, unveiled shortly after President Emmanuel Macron's May tour of Vietnam, Indonesia, and Singapore, is less about grand announcements than it is about realism. It reflects a France that is recalibrating in the face of mounting geopolitical and economic constraints. The release marks the third iteration of France's Indo-Pacific vision since 2019. The last update, in 2022, came on the heels of the AUKUS shock — which saw Australia abruptly cancel a French submarine contract in favor of U.S.- and U.K.-backed nuclear subs — and coincided with the European Union's own adoption of an Indo-Pacific strategy. France, then presiding over the EU Council, hosted the first EU Indo-Pacific Forum just two days before Russia's invasion of Ukraine. The world has not been the same since. The new Indo-Pacific document, shaped in the wake of the updated French National Strategic Review, should be read as a strategy for times of crisis, reflecting the severe deterioration of the international order in recent years – the war in Ukraine, escalating Middle East tensions, intensifying China-U.S. rivalry, and political unrest in France's overseas territories. In this context, this article seeks to answer this question: how can France sustain its engagement in the Indo-Pacific — a region vital to global economic growth and strategic balance — under such tight economic and geopolitical constraints? Sovereignty First One key answer lies in a sharp refocusing of France's approach around the protection of its own sovereign interests in the Indo-Pacific, namely its overseas territories and the country's vast maritime domain – France holds the second-largest Exclusive Economic Zone (EEZ) in the world, 90 percent of which is in the Indo-Pacific. This point is critical: it is France's overseas territories that underpin its legitimacy as a resident Indo-Pacific nation. In addition, La Réunion, New Caledonia, and French Polynesia host sovereignty forces that play a significant, well-recognized, and valued role in security cooperation within their respective neighborhoods. At the same time, these territories face growing vulnerabilities and mounting threats – from climate insecurity and resource predation to transnational crime, foreign interference, and disinformation. The Indo-Pacific strategy devotes substantial attention to these territories – their challenges, needs, and agency – clearly addressing past criticism that they had been sidelined by a Paris-centric approach. This time, the strategy emphasizes co-construction, implementation coordination, and the tangible benefits that overseas territories can derive in terms of sustainable development and regional engagement. These priorities align with another central pillar of France's approach: the promotion of multilateralism, notably through active participation in and empowerment of regional organizations. That said, the document stays silent on certain sensitive issues – chiefly, the question of decolonization. Uncertainty remains about the future status of New Caledonia, as the recently agreed Bougival Accord that proposes creating a 'State of New Caledonia' within the French Republic still has to be endorsed by the FLNKS, the principal pro-independence coalition. Partnerships and Multidimensional Engagement A second notable feature of the new strategy is its emphasis on partnerships and a comprehensive, multidimensional – rather than purely military – approach, in light of constrained resources. By leveraging strategic partnerships, France seeks to amplify its efforts to uphold international law, ensure freedom of navigation, and respond to transnational risks. Key partners are named: India, Japan, Australia, Indonesia, Singapore, Vietnam, South Korea, and the United Arab Emirates. A full chapter is dedicated to the so-called 'sovereignty partnerships' by which France aims to strengthen the capacity, autonomy, and resilience of its regional partners, enabling them to better withstand hegemonic pressures and make sovereign decisions. It resonates with the 'coalition of independents' suggested by Macron in his landmark speech at the Shangri-La Dialogue in May. Interestingly, and somewhat surprisingly, if the text mentions the frequent military deployments in the region – building trust with partners is key to secure a stronghold and enable French long-distance military dispatch – there is no reference to industrial defense cooperation, actually a cornerstone of France's Indo-Pacific engagement. This omission may reflect a deliberate effort to downplay the military dimension within this whole-of-government strategy – an aspect that has, until now, been the most visible and widely recognized feature of France's Indo-Pacific posture. A dedicated defense strategy for the region is expected to be developed separately at the ministerial level. The Indo-Pacific document underscores France's broad and multifaceted engagement in the region. It promotes cooperation in sustainable development, climate adaptation, connectivity, and health, while highlighting the mutual benefits of partnerships to advance digital and green transitions, trade, and the security, resilience, and de-risking of supply chains. The message is clear: France's presence in the Indo-Pacific serves regional stability but also its own economic interests, to mobilize the private sector. In this light, the updated strategy underscores synergy with the broader European strategy – crucial given the EU's exclusive competence over trade policy – and highlights that the EU and its member states are the leading providers of development aid, foreign direct investment, and trade in the Indo-Pacific. References to instruments such as the Global Gateway and efforts to deepen ties with the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) reinforce the notion that France's Indo-Pacific approach is aligned with, and strengthened by, collective European initiatives. Sharper Tone Toward China – But Strategic Autonomy Remains Perhaps the most notable shift in the new strategy is France's more explicit criticism of China, mentioning Beijing's 'growing assertiveness,' the rapid buildup of the People's Liberation Army, and its advancing nuclear capabilities. It warns that a high-intensity conflict in the Taiwan Strait would carry major global consequences – marking the first time France's Indo-Pacific strategy has so clearly and directly addressed the Taiwan issue. The document also implicitly targets China in its references to unilateral reinterpretations of the United Nations Convention on the Law of the Sea (UNCLOS) and to 'certain arbitration decisions not being respected,' a clear allusion to Beijing's rejection of the 2016 South China Sea ruling. Beyond the region, the document explicitly acknowledges China's role as a facilitator of Russian aggression since 2022. For the first time, France's Indo-Pacific strategy also refers to NATO, calling on 'regional powers to act responsibly by not supporting Russia's war effort or undermining European security.' While France has consistently opposed a greater NATO role in the Indo-Pacific, this reference marks a shift in tone. The rhetoric echoes Macron's recent speech in Singapore, where he reaffirmed and warned that China's inaction – especially on North Korean participation in the Ukraine war – could invite greater NATO involvement. At the same time, the strategy reaffirms France's key position of strategic autonomy, advocating for a 'close and rigorous' dialogue with China at the highest level, while seeking convergence on global challenges 'when possible.' Vis-à-vis the United States, France reaffirms its posture as 'allied but not aligned.' The strategy expresses concerns over U.S. President Donald Trump's 'peace through strength' approach, his containment-driven China policy, and a transactional diplomacy that risks disrupting regional alliances and economic stability. A Realist Strategy for Turbulent Times Strictly speaking, the document does not constitute a full-fledged strategy, as it lacks a clear articulation of objectives, means, and a dedicated budget. It reflects a conservative posture shaped by tighter geopolitical and fiscal constraints, with a clear intention to showcase France's concrete engagement – though at times this approach makes it resemble a catalogue of ongoing initiatives. This sober, pragmatic approach is welcome, reflecting an effort to make France's Indo-Pacific presence more coherent, credible, and realistically aligned with its actual resources. Ultimately, the strategy aims to build lasting legitimacy by grounding rhetoric in tangible national priorities and constraints, while avoiding overpromising that could lead to disappointment. More grounded and restrained than earlier versions, it embodies hard lessons learned and seeks a careful balance between ambition and limitations.
Asahi Shimbun
18 hours ago
- Asahi Shimbun
Europe and China agree to take action on climate change and nothing else in tense Beijing summit
Left to right, European Commission President Ursula von der Leyen, European Council President António Costa, and European Union's foreign policy chief, Kaja Kallas walk at the Great Hall of the People before the European Union-China Summit in Beijing, China, July 24, 2025. (Pool Photo via AP) BEIJING--China and the European Union have issued a joint call to action on climate change during an otherwise tense bilateral summit in Beijing on Thursday riven with major disagreements over trade and the war in Ukraine. The two economic juggernauts issued a joint statement on climate change, urging more emission cuts and greater use of green technology and affirming their support for the Paris Climate Agreement as well as calling for strong action at the upcoming COP30 climate summit in Brazil. 'In the fluid and turbulent international situation today, it is crucial that all countries, notably the major economies, maintain policy continuity and stability and step up efforts to address climate change,' the joint statement said. Their climate agreement was a silver lining on a stormy day where European leaders demanded a more balanced relationship with China in talks with President Xi Jinping. They highlighted trade in their opening remarks, calling for concrete progress to address Europe's yawning trade deficit with China. 'As our cooperation has deepened, so have the imbalances,' European Commission President Ursula von der Leyen said. 'We have reached an inflection point. Rebalancing our bilateral relation is essential. Because to be sustainable, relations need to be mutually beneficial.' Expectations were low ahead of the talks, initially supposed to last two days but scaled back to one. They come amid financial uncertainty around the world, wars in the Middle East and Ukraine, and the threat of U.S. tariffs. Neither the EU nor China is likely to budge on key issues. European Council President António Costa called on China to use its influence over Russia to bring an end to the war in Ukraine — a long-running plea from European leaders that is likely to fall again on deaf ears. Xi called for deeper cooperation between China and Europe to provide stability in an increasingly complex world. Both sides should set aside differences and seek common ground, he said, a phrase he often uses in relationships like the one with the EU. China is willing to strengthen coordination on climate and make greater contributions to addressing climate change, he said, but he pushed back against EU restrictions on Chinese exports. 'We hope the EU will keep its trade and investment markets open, refrain from using restrictive economic and trade tools and provide a good business environment for Chinese companies to invest and develop in Europe,' he said, according to a readout posted online by state broadcaster CCTV. Besides trade and the Ukraine war, von der Leyen and Costa were expected to raise concerns about Chinese cyberattacks and espionage, its restrictions on the export of rare earth minerals and its human rights record in Tibet, Hong Kong and Xinjiang. The EU, meanwhile, has concerns about a looming trade battle with the United States. 'Europe is being very careful not to antagonize President Trump even further by looking maybe too close to China, so all of that doesn't make this summit easier,' said Fabian Zuleeg, chief economist of the European Policy Center. 'It will be very hard to achieve something concrete.' China's stance has hardened on the EU, despite a few olive branches, like the suspension of sanctions on European lawmakers who criticized Beijing's human rights record in Xinjiang province, where it is accused of a widespread campaign of repression against the Uyghurs. The summit ended with almost no movement on the major issues of trade, electric vehicles, or Russia, said Noah Barkin, an analyst at the Rhodium Group think tank. Rather, frustration from the EU was glaringly obvious 'after years in which its concerns have been largely ignored by Beijing.' He said the Europeans will likely use more 'trade defense tools in the months ahead, including a debate over expanding safeguards and new cases under the bloc's foreign subsidies regulation.' Like the U.S., the 27-nation EU bloc runs a massive trade deficit with China — around 300 billion euros ($350 billion) last year. It relies heavily on China for critical minerals and the magnets made from them for cars and appliances. When China curtailed the export of those products in response to Trump's tariffs, European automakers cried foul. China agreed during the summit to start 'an upgraded export supply mechanism' to fast-track exports of critical minerals, von der Leyen said. Details of the arrangement were not immediately made public. Barkin said he doubted the mechanism would be 'a miracle solution for what may become a go-to coercion tool for Beijing in the years ahead.' The EU has imposed tariffs on Chinese electric vehicles to support its carmakers by balancing out Beijing's heavy auto subsidies. China would like those tariffs revoked. The rapid growth in China's market share in Europe has sparked concern that Chinese cars will eventually threaten the EU's ability to produce its own green technology to combat climate change. Business groups and unions also fear that the jobs of 2.5 million auto industry workers could be put in jeopardy, as well those of 10.3 million more people whose employment depends indirectly on EV production. China has launched investigations into European pork and dairy products and placed tariffs on French cognac and armagnac. It has criticized new EU regulations of medical equipment sales and fears upcoming legislation that could further target Chinese industries, said Alicia García-Herrero, a China analyst at the Bruegel think tank. The EU has leverage because China needs to sell goods to the bloc, García-Herrero said. 'The EU remains China's largest export market, so China has every intention to keep it this way, especially given the pressure coming from the U.S.,' she said. China bristles at EU sanctions over Russia's war against Ukraine. The latest package included two Chinese banks that the EU accused of links to Russia's war industry. China's Commerce Ministry protested the listing and vowed to respond with 'necessary measures to resolutely safeguard the legitimate rights and interests of Chinese enterprises and financial institutions.' Buffeted between a combative Washington and a hardline Beijing, the EU has more publicly sought new alliances elsewhere, inking a trade pact with Indonesia and drafting trade deals with South America and Mexico. Costa and von der Leyen visited Tokyo the day before their meetings in Beijing, launching an alliance with Japan to boost economic cooperation, defend free trade and counter unfair trade practices. 'Both Europe and Japan see a world around us where protectionist instincts grow, weaknesses get weaponized, and every dependency exploited,' von der Leyen said. So it is normal that two like-minded partners come together to make each other stronger.'
Yomiuri Shimbun
18 hours ago
- Yomiuri Shimbun
Zelenskyy Moves to Restore Independence of Ukraine Anti-Graft Agencies after Protests, EU Criticism
KYIV, Ukraine (AP) — President Volodymyr Zelenskyy on Thursday submitted a new bill that would restore the independence of Ukraine's anti-corruption agencies in an effort to defuse tensions following his approval earlier this week of a controversial law that weakened their autonomy. The previous bill was seen as undermining the agencies' independence and sparked a public outcry and protests, the first major demonstrations since the war began, as well as sharp criticism from the European Union. Zelenskyy said parliament would review the new bill, which 'guarantees real strengthening of Ukraine's law enforcement system, the independence of anti-corruption bodies, and reliable protection of the legal system from any Russian interference.' First reactions Ukraine's two main anti-graft agencies — the National Anti-Corruption Bureau of Ukraine and the Specialized Anti-Corruption Prosecutor's Office — quickly welcomed Zelenskyy's new proposal, saying it restores all their procedural powers and guarantees their independence. The agencies said they helped draft the new bill, and urged lawmakers to adopt it 'as soon as possible' to prevent threats to ongoing criminal cases. The bill would replace the contentious law passed by lawmakers and approved by Zelenskyy earlier this week. Critics said it stripped Ukraine's anti-corruption agencies of their independence by granting the government more oversight of their work. A controversial law Zelenskyy initially argued the law was needed to speed up investigations, ensure more convictions and remove Russian meddling. After Thursday's U-turn, Zelenskyy said the new bill reverses the earlier changes and also introduced additional measures aimed at 'combating Russian influence,' including mandatory polygraph tests for law enforcement officers. 'The text is balanced,' Zelenskyy said. 'The most important thing is real tools, no Russian ties and the independence' of the anti-graft agencies. The new draft underlines that the prosecutor general and his deputies cannot give orders to anti-graft agencies or interfere in their work. Bowing to pressure and protests The controversy surrounding the initial bill has threatened to undermine public trust in Ukraine's leadership after more than three years of fighting Russia's full-scale invasion. The protests haven't called for Zelenskyy's ouster, but they are the first major anti-government demonstrations since the war started in February 2022. 'It is important that we maintain unity,' Zelenskyy said in his post. It was not immediately clear when the new bill will be voted on in the parliament, and the protests are likely to continue until the law is passed. At the protests on Thursday evening, the crowd was smaller than on previous days. The unrest has come at a difficult time in the all-out war. Russia's bigger army is accelerating its efforts to pierce Ukraine's front-line defenses and is escalating its bombardment of Ukrainian cities. The bigger picture Ukraine is also facing a question mark over whether the United States will provide more military aid and whether European commitments can take up the slack, with no end in sight to the war. Delegations from Russia and Ukraine met in Istanbul for a third round of talks in as many months Wednesday. But once again, the talks were brief and delivered no major breakthrough. Fighting entrenched corruption is crucial for Ukraine's aspirations to join the EU and maintain access to billions of dollars in Western aid in the war. It is also an effort that enjoys broad public support. EU Enlargement Commissioner Marta Kos expressed concern Wednesday over the law approved earlier this week, calling it 'a serious step back.' The Ukrainian branch of Transparency International criticized parliament's decision, saying it undermines one of the most significant reforms since what Ukraine calls its Revolution of Dignity in 2014 and damages trust with international partners. Deadly fighting grinds on On Thursday, two women, aged 48 and 59, were killed and 14 other people were injured when Russian forces dropped four powerful glide bombs on Kostiantynivka, an industrial city in eastern Ukraine, and shelled it with artillery, Donetsk regional Gov. Vadym Filashkin said. Russian planes also dropped two glide bombs on the center of Kharkiv, Ukraine's second-largest city, on Thursday morning, regional Gov. Oleh Syniehubov said. At least 42 people were wounded, including two babies, a 10-year-old girl and two 17 year olds, authorities said. The southern city of Odesa, and Cherkasy in central Ukraine, were also hit overnight, authorities said. The drone and missile strikes on the cities wounded 11 people, including a 9-year-old, and damaged historic landmarks and residential buildings, officials said. Ukraine has sought to step up its own long-range drone attacks on Russia, using domestic technology and manufacturing. An overnight Ukrainian drone attack on the Russian Black Sea resort of Sochi killed two women and wounded 11 other people, local authorities said Thursday. An oil depot was hit, officials said, without offering details.
