FILE
PHOTO: With the USS-Wasp in the background, U.S. Marines ride an
amphibious assault vehicle during the amphibious landing exercises of
the U.S.-Philippines war games promoting bilateral ties at a military
camp in Zambales province
By David Lague
HONG
KONG (Reuters) - As Washington and Beijing trade barbs over the
coronavirus pandemic, a longer-term struggle between the two Pacific
powers is at a turning point, as the United States rolls out new weapons
and strategy in a bid to close a wide missile gap with China.
The
United States has largely stood by in recent decades as China
dramatically expanded its military firepower. Now, having shed the
constraints of a Cold War-era arms control treaty, the Trump
administration is planning to deploy long-range, ground-launched cruise
missiles in the Asia-Pacific region.
The Pentagon intends to arm
its Marines with versions of the Tomahawk cruise missile now carried on
U.S. warships, according to the White House budget requests for 2021 and
Congressional testimony in March of senior U.S. military commanders. It
is also accelerating deliveries of its first new long-range anti-ship
missiles in decades.
In a statement to Reuters about the latest
U.S. moves, Beijing urged Washington to "be cautious in word and deed,"
to "stop moving chess pieces around" the region, and to "stop flexing
its military muscles around China."
The U.S. moves are aimed at
countering China's overwhelming advantage in land-based cruise and
ballistic missiles. The Pentagon also intends to dial back China's lead
in what strategists refer to as the "range war." The People's Liberation
Army (PLA), China's military, has built up a huge force of missiles
that mostly outrange those of the U.S. and its regional allies,
according to senior U.S. commanders and strategic advisers to the
Pentagon, who have been warning that China holds a clear advantage in
these weapons.
And, in a radical shift in tactics, the Marines
will join forces with the U.S. Navy in attacking an enemy's warships.
Small and mobile units of U.S. Marines armed with anti-ship missiles
will become ship killers.
In a conflict, these units will be
dispersed at key points in the Western Pacific and along the so-called
first island chain, commanders said. The first island chain is the
string of islands that run from the Japanese archipelago, through
Taiwan, the Philippines and on to Borneo, enclosing China's coastal
seas.
Top U.S. military commanders explained the new tactics to
Congress in March in a series of budget hearings. The commandant of the
U.S. Marine Corps, General David Berger, told the Senate Armed Services
Committee on March 5 that small units of Marines armed with precision
missiles could assist the U.S. Navy to gain control of the seas,
particularly in the Western Pacific. "The Tomahawk missile is one of the
tools that is going to allow us to do that," he said.
The
Tomahawk - which first gained fame when launched in massed strikes
during the 1991 Gulf War - has been carried on U.S. warships and used to
attack land targets in recent decades. The Marines would test fire the
cruise missile through 2022 with the aim of making it operational the
following year, top Pentagon commanders testified.
At first, a
relatively small number of land-based cruise missiles will not change
the balance of power. But such a shift would send a strong political
signal that Washington is preparing to compete with China's massive
arsenal, according to senior U.S. and other Western strategists. Longer
term, bigger numbers of these weapons combined with similar Japanese and
Taiwanese missiles would pose a serious threat to Chinese forces, they
say. The biggest immediate threat to the PLA comes from new, long-range
anti-ship missiles now entering service with U.S. Navy and Air Force
strike aircraft.
"The Americans are coming back strongly," said
Ross Babbage, a former senior Australian government defense official and
now a non-resident fellow at the Washington-based Center for Strategic
and Budgetary Assessments, a security research group. "By 2024 or 2025
there is a serious risk for the PLA that their military developments
will be obsolete."
A Chinese military spokesman, Senior Colonel Wu
Qian, warned last October that Beijing would "not stand by" if
Washington deployed land-based, long-range missiles in the Asia-Pacific
region.
China's foreign ministry accused the United States of
sticking "to its cold war mentality" and "constantly increasing military
deployment" in the region.
"Recently, the United States has
gotten worse, stepping up its pursuit of a so-called 'Indo-Pacific
strategy' that seeks to deploy new weapons, including ground-launched
intermediate-range missiles, in the Asia-Pacific region," the ministry
said in a statement to Reuters. "China firmly opposes that."
Pentagon
spokesman Lieutenant Colonel Dave Eastburn said he would not comment on
statements by the Chinese government or the PLA.
U.S. MILITARY UNSHACKLED
While
the coronavirus pandemic rages, Beijing has increased its military
pressure on Taiwan and exercises in the South China Sea. In a show of
strength, on April 11 the Chinese aircraft carrier Liaoning led a
flotilla of five other warships into the Western Pacific through the
Miyako Strait to the northeast of Taiwan, according to Taiwan's Defense
Ministry. On April 12, the Chinese warships exercised in waters east and
south of Taiwan, the ministry said.
Meanwhile, the U.S. Navy was
forced to tie up the aircraft carrier USS Theodore Roosevelt at Guam
while it battles to contain a coronavirus outbreak among the crew of the
giant warship. However, the U.S. Navy managed to maintain a powerful
presence off the Chinese coast. The guided-missile destroyer USS Barry
passed through the Taiwan Strait twice in April. And the amphibious
assault ship USS America last month exercised in the East China Sea and
South China Sea, the U.S. Indo-Pacific Command said.
In a series
last year, Reuters reported that while the U.S. was distracted by almost
two decades of war in the Middle East and Afghanistan, the PLA had
built a missile force designed to attack the aircraft carriers, other
surface warships and network of bases that form the backbone of American
power in Asia. Over that period, Chinese shipyards built the world's
biggest navy, which is now capable of dominating the country's coastal
waters and keeping U.S. forces at bay.
The series also revealed
that in most categories, China's missiles now rival or outperform
counterparts in the armories of the U.S. alliance.
To read the series, click https://www.reuters.com/investigates/section/china-army
China
derived an advantage because it was not party to a Cold War-era treaty -
the Intermediate-Range Nuclear Forces Treaty (INF) - that banned the
United States and Russia from possessing ground-launched ballistic and
cruise missiles with ranges from 500 kilometers to 5,500 kilometers.
Unrestrained by the INF pact, China has deployed about 2,000 of these
weapons, according to U.S. and other Western estimates.
While
building up its missile forces on land, the PLA also fitted powerful,
long-range anti-ship missiles to its warships and strike aircraft.
This
accumulated firepower has shifted the regional balance of power in
China's favor. The United States, long the dominant military power in
Asia, can no longer be confident of victory in a military clash in
waters off the Chinese coast, according to senior retired U.S. military
officers.
But the decision by President Donald Trump last year to
exit the INF treaty has given American military planners new leeway.
Almost immediately after withdrawing from the pact on August 2, the
administration signaled it would respond to China's missile force. The
next day, U.S. Secretary for Defense Mark Esper said he would like to
see ground-based missiles deployed in Asia within months, but he
acknowledged it would take longer.
Later that month, the Pentagon
tested a ground-launched Tomahawk cruise missile. In December, it tested
a ground-launched ballistic missile. The INF treaty banned such
ground-launched weapons, and thus both tests would have been forbidden.
A
senior Marines commander, Lieutenant General Eric Smith, told the
Senate Armed Services Committee on March 11 that the Pentagon leadership
had instructed the Marines to field a ground-launched cruise missile
"very quickly."
The budget documents show that the Marines have
requested $125 million to buy 48 Tomahawk missiles from next year. The
Tomahawk has a range of 1,600km, according to its manufacturer, Raytheon
Company.
Smith said the cruise missile may not ultimately prove
to be the most suitable weapon for the Marines. "It may be a little too
heavy for us," he told the Senate Armed Services Committee, but
experience gained from the tests could be transferred to the army.
Smith
also said the Marines had successfully tested a new shorter-range
anti-ship weapon, the Naval Strike Missile, from a ground launcher and
would conduct another test in June. He said if that test was successful,
the Marines intended to order 36 of these missiles in 2022. The U.S.
Army is also testing a new long-range, land-based missile that can
target warships. This missile would have been prohibited under the INF
treaty.
The Marine Corps said in a statement it was evaluating the
Naval Strike Missile to target ships and the Tomahawk for attacking
targets on land. Eventually, the Marines aimed to field a system "that
could engage long-range moving targets either on land or sea," the
statement said.
The Defense Department also has research underway
on new, long-range strike weapons, with a budget request of $3.2 billion
for hypersonic technology, mostly for missiles.
China's foreign
ministry drew a distinction between the PLA's arsenal of missiles and
the planned U.S. deployment. It said China's missiles were "located in
its territory, especially short and medium-range missiles, which cannot
reach the mainland of the United States. This is fundamentally different
from the U.S., which is vigorously pushing forward deployment."
BOTTLING UP CHINA'S NAVY
Military
strategists James Holmes and Toshi Yoshihara suggested almost a decade
ago that the first island chain was a natural barrier that could be
exploited by the American military to counter the Chinese naval
build-up. Ground-based anti-ship missiles could command key passages
through the island chain into the Western Pacific as part of a strategy
to keep the rapidly expanding Chinese navy bottled up, they suggested.
In
embracing this strategy, Washington is attempting to turn Chinese
tactics back on the PLA. Senior U.S. commanders have warned that China's
land-based cruise and ballistic missiles would make it difficult for
U.S. and allied navies to operate near China's coastal waters.
But
deploying ground-based U.S. and allied missiles in the island chain
would pose a similar threat to Chinese warships - to vessels operating
in the South China Sea, East China Sea and Yellow Sea, or ships
attempting to break out into the Western Pacific. Japan and Taiwan have
already deployed ground-based anti-ship missiles for this purpose.
"We
need to be able to plug up the straits," said Holmes, a professor at
the U.S. Naval War College. "We can, in effect, ask them if they want
Taiwan or the Senkakus badly enough to see their economy and armed
forces cut off from the Western Pacific and Indian Ocean. In all
likelihood the answer will be no."
Holmes was referring to the
uninhabited group of isles in the East China Sea - known as the Senkaku
islands in Japan and the Diaoyu islands in China - that are claimed by
both Tokyo and Beijing.
The United States faces challenges in
plugging the first island chain. Philippines President Rodrigo Duterte's
decision to distance himself from the United States and forge closer
ties with China is a potential obstacle to American plans. U.S. forces
could face barriers to operating from strategically important islands in
the Philippines archipelago after Duterte in February scrapped a key
security agreement with Washington.
And if U.S. forces do deploy
in the first island chain with anti-ship missiles, some U.S. strategists
believe this won't be decisive, as the Marines would be vulnerable to
strikes from the Chinese military.
The United States has other
counterweights. The firepower of long-range U.S. Air Force bombers could
pose a bigger threat to Chinese forces than the Marines, the
strategists said. Particularly effective, they said, could be the
stealthy B-21 bomber, which is due to enter service in the middle of
this decade, armed with long-range missiles.
The Pentagon is
already moving to boost the firepower of its existing strike aircraft in
Asia. U.S. Navy Super Hornet jets and Air Force B-1 bombers are now
being armed with early deliveries of Lockheed Martin's new Long Range
Anti-Ship Missile, according to the budget request documents. The new
missile is being deployed in response to an "urgent operational need"
for the U.S. Pacific Command, the documents explain.
The new
missile carries a 450 kilogram warhead and is capable of
"semi-autonomous" targeting, giving it some ability to steer itself,
according to the budget request. Details of the stealthy cruise
missile's range are classified. But U.S. and other Western military
officials estimate it can strike targets at distances greater than 800
kilometers.
The budget documents show the Pentagon is seeking $224
million to order another 53 of these missiles in 2021. The U.S. Navy
and Air Force expect to have more than 400 of them in service by 2025,
according to orders projected in the documents.
This new anti-ship
missile is derived from an existing Lockheed long-range, land attack
weapon, the Joint Air-to-Surface Standoff Missile. The Pentagon is
asking for $577 million next year to order another 400 of these
land-attack missiles.
"The U.S. and allied focus on long-range
land-attack and anti-ship cruise missiles was the quickest way to
rebuild long-range conventional firepower in the Western Pacific
region," said Robert Haddick, a former U.S. Marine Corps officer and now
a visiting senior fellow at the Mitchell Institute for Aerospace
Studies based in Arlington, Virginia.
For the U.S. Navy in Asia,
Super Hornet jets operating from aircraft carriers and armed with the
new anti-ship missile would deliver a major boost in firepower while
allowing the expensive warships to operate further away from potential
threats, U.S. and other Western military officials say.
Current
and retired U.S. Navy officers have been urging the Pentagon to equip
American warships with longer-range anti-ship missiles that would allow
them to compete with the latest, heavily armed Chinese cruisers,
destroyers and frigates. Lockheed has said it successfully test-fired
one of the new Long Range Anti-Ship Missiles from the type of launcher
used on U.S. and allied warships.
Haddick, one of the first to
draw attention to China's firepower advantage in his 2014 book, "Fire on
the Water," said the threat from Chinese missiles had galvanized the
Pentagon with new strategic thinking and budgets now directed at
preparing for high-technology conflict with powerful nations like China.
Haddick
said the new missiles were critical to the defensive plans of America
and its allies in the Western Pacific. The gap won't close immediately,
but firepower would gradually improve, Haddick said. "This is especially
true during the next half-decade and more, as successor hypersonic and
other classified munition designs complete their long periods of
development, testing, production, and deployment," he said.
(Additional reporting by the Beijing newsroom. Edited by Peter Hirschberg.)
-----------------------------
World
U.S. Navy destroyer transits Taiwan Strait on same day as Chinese drills
TAIPEI
(Reuters) - A U.S. Navy guided-missile destroyer sailed through the
sensitive Taiwan Strait on Friday, the U.S. and Taiwan militaries said,
the same day that Chinese fighter jets drilled in waters close to the
democratically-ruled island.
China, which considers Taiwan its
own, has been angered by the Trump administration's stepped-up support
for the island, such as more arms sales, U.S. patrols near it and a
visit to Washington by Vice President-elect William Lai in February.
Taiwan
and China are also embroiled in a bitter spat about the former's lack
of membership of the World Health Organization during the coronavirus
outbreak, because of objections by Beijing, which views it as merely a
Chinese province.
The U.S. Pacific Fleet named the ship that sailed through the Taiwan Strait as the Arleigh Burke-class USS Barry.
"Barry
is forward-deployed to the U.S. 7th Fleet area of operations in support
of security and stability in the Indo-Pacific region," it said in a
brief statement on its Facebook page on Saturday.
Taiwan's defense
ministry said its armed forces monitored the ship as it sailed south
through the waterway. It described the U.S. ship as being on an
"ordinary mission".
Also on Friday, Taiwan said Chinese H-6
bombers and J-11 fighters again carried out drills above waters to its
southwest. Taiwan's air force kept close watch, the ministry added.
Taiwan has repeatedly complained of China continuing to apply military pressure during the virus crisis.
Taiwan
is China's most sensitive territorial and diplomatic issue and Beijing
has never ruled out the use of force to bring the island under its
control. The narrow Taiwan Strait that separates the island from China
is a frequent source of tension.
The U.S. navy has been stepping
up patrols through the Strait, with its last less than a month ago,
prompting China to say the United States was playing a dangerous game
with its support for Taiwan.
The United States, like most
countries, has no official relations with Taiwan, but is the island's
most important international supporter and main source of arms.
In
January another U.S. warship sailed through the Strait less than a week
after President Tsai Ing-wen won a landslide re-election on a platform
of standing up to China.
(Reporting by Ben Blanchard; Editing by Clarence Fernandez)
The U.S. Justice Department and other federal agencies on
Thursday called on the Federal Communications Commission to revoke China
Telecom Corp's authorization to provide international telecommunications
services to and from the United States.
The agencies, including Homeland Security, Defense and
State-- cited "substantial and unacceptable national security and law
enforcement risks associated with China Telecom’s operations."
Chinese foreign ministry spokesman Zhao Lijian told
reporters that the United States must stop politicizing commercial matters.
(SOUNDBITE) (Mandarin) SPOKESMAN OF CHINA FOREIGN MINISTRY,
ZHAO LIJIAN, SAYING:"China has noticed relevant reports, and China is
firmly opposed to it. The Chinese government has always required Chinese
companies to do business based on market principle and to be compliant with the
law. Concurrently, we also require them to abide by the local laws and
regulations. We urge the U.S. to follow market principle, stop generalizing
national security, stop the mistaken action of politicalizing economic issues,
stop oppressing Chinese companies with no reason. And provide a fair, just and
non-discriminative environment for Chinese companies."
China Telecom has rejected the allegations and said it has
"been extremely cooperative and transparent with regulators."
Spread of the coronavirus disease (COVID-19) in Canada
By David Ljunggren
OTTAWA (Reuters) -
China does not appear to understand that Canada's judiciary is
independent, Prime Minister Justin Trudeau said on Thursday, taking a
rare public swipe at Beijing at a time when bilateral ties are poor.
China
says Canada must free Huawei Technologies Co Ltd Chief Financial
Officer Meng Wanzhou, who is fighting extradition to the United States.
She was arrested in the province of British Columbia in December 2018.
Canadian officials have repeatedly said they cannot intervene in the case.
"Canada
has an independent judicial system that functions without interference
or override by politicians," Trudeau told a daily briefing.
"China doesn't work quite the same way and (doesn't) seem to understand that we do have an independent judiciary."
Later
in the day, Foreign Minister Francois-Philippe Champagne said he was
"very concerned" by Chinese plans to impose new national security
legislation on Hong Kong, home to around 300,000 Canadian citizens.
"Canada ... will make its voice heard," he told the Canadian Broadcasting Corp.
The
United States says it believes Meng covered up attempts by
Huawei-linked companies to sell equipment to Iran, breaking U.S.
sanctions against the country.
A decision on a key legal aspect of
the trial over whether Meng can be extradited will be announced next
Wednesday, the British Columbia Supreme Court said on Thursday.
Shortly
after Meng's arrest, Chinese authorities detained two Canadian men in
China on state security charges. Beijing also blocked imports of
Canadian canola seed.
Trudeau said last month that China had suspended consular visits, citing the coronavirus outbreak.
"The
fact that China is still linking an independent judicial system in the
case of Meng Wanzhou with the arbitrary detention of two Canadians is
saddening, but that's a challenge we've been working with for many
months," he said on Thursday.
The Chinese Embassy was not immediately available for comment.
(Reporting by David Ljunggren; Additional reporting by Moira Warburton in Toronto; Editing by Alistair Bell and Peter Cooney)
-----
Business
Senate Passes Bill to Delist Chinese Companies From Exchanges
Senate Passes Bill to Delist Chinese Companies From Exchanges
(Bloomberg)
-- The Senate overwhelmingly approved legislation Wednesday that could
lead to Chinese companies such as Alibaba Group Holding Ltd. and Baidu
Inc. being barred from listing on U.S. stock exchanges amid increasingly
tense relations between the world’s two largest economies.
The
bill, introduced by Senator John Kennedy, a Republican from Louisiana,
and Chris Van Hollen, a Democrat from Maryland, was approved by
unanimous consent and would require companies to certify that they are
not under the control of a foreign government.
U.S. lawmakers have
raised red flags over the billions of dollars flowing into some of
China’s largest corporations, much of it from pension funds and college
endowments in search of fat investment returns. Alarm has grown in
particular that American money is bankrolling efforts by the country’s
technology giants to develop leading positions in everything from
artificial intelligence and autonomous driving to internet data
collection.
Shares in some of the biggest U.S.-listed Chinese
firms, including Baidu and Alibaba, slid Thursday in New York while the
broader market gained.
If a company can’t show that it is not
under such control or the Public Company Accounting Oversight Board, or
PCAOB, isn’t able to audit the company for three consecutive years to
determine that it is not under the control of a foreign government, the
company’s securities would be banned from the exchanges.
“I do not want to get into a new Cold War,” Kennedy said on the Senate floor, adding that he wants “China to play by the rules.”
“Publicly
listed companies should all be held to the same standards, and this
bill makes common sense changes to level the playing field and give
investors the transparency they need to make informed decisions,” Van
Hollen said in a statement. “I’m proud that we were able to pass it
today with overwhelming bipartisan support, and I urge our House
colleagues to act quickly.”
House Bill
Stricter U.S.
oversight could potentially affect the future listing plans of major
private Chinese corporations from Jack Ma’s Ant Financial to
SoftBank-backed ByteDance Ltd. But since discussions on increased
disclosure requirements began last year, many other Chinese companies
have either listed in Hong Kong already or plan to do so, said James
Hull, a Beijing-based analyst and portfolio manager with Hullx.
“All
Chinese U.S.-listed entities are potentially impacted over the coming
years,” he said. “Increased disclosure may hurt some smaller companies,
but there’s been risk disclosures around PCAOB for a while now, so it
shouldn’t be a shock to anyone.”
In a sign of broad support for
the measure, Representative Brad Sherman, a California Democrat on the
House Financial Services Committee, introduced a companion bill in that
chamber. Sherman said in a statement that Nasdaq moved this week to
delist China-based Luckin Coffee after executives at the company
admitted fabricating $310 million in sales between April and December
2019.
“I commend our Senate counterparts for moving to address
this critical issue,” Sherman said. “Had this legislation already been
signed into law, U.S. investors in Luckin Coffee likely would have
avoided billions of dollars in losses.”
House leaders are
discussing the legislation -- and a separate Senate-passed bill to
sanction Chinese officials over human rights abuses against Muslim
minorities -- with lawmakers and members of the relevant committees, a
Democratic aide said.
The Senate measure -- S. 945 -- is an
example of the rising bipartisan pushback against China in Congress that
had been building over trade and other issues. It has been amplified
especially by Republicans as President Donald Trump has sought to blame
China as the main culprit in the coronavirus pandemic.
GOP
lawmakers have in recent weeks unleashed a torrent of legislation aimed
at punishing China for not being more forthcoming with information or
proactive in restricting travel as the coronavirus began to spread from
the city of Wuhan, where it was first detected.
Trump escalated
his rhetoric against China on Wednesday night, suggesting that leader Xi
Jinping is behind a “disinformation and propaganda attack on the United
States and Europe.”
“It all comes from the top,” Trump said in a
series of tweets. He added that China was “desperate” to have former
Vice President Joe Biden win the presidential race.
Kennedy told Fox Business on Tuesday that the bill would apply to U.S. exchanges such as Nasdaq and the New York Stock Exchange.
“I
would not turn my back on the Chinese Communist Party if they were two
days dead,” Kennedy said. “They cheat. And I’ve got a bill to stop them
from cheating.”
At issue is China’s longstanding refusal to allow
the PCAOB to examine audits of firms whose shares trade on the New York
Stock Exchange, Nasdaq and other U.S. platforms. The inspections by the
little-known agency, which Congress stood up in 2002 in response to the
massive Enron Corp. accounting scandal, are meant to prevent fraud and
wrongdoing that could wipe out shareholders.
Clash
Since
then China and the U.S. have been at odds on the issue even as companies
including Alibaba and Baidu have raised billions of dollars selling
shares in American markets. The long-simmering feud came to the
forefront last year as Washington and Beijing clashed over broader trade
and economic issues, and some in the White House have been urging Trump
to take a harder line on the audit inspections.
Last week, Trump
said in an interview on Fox Business that he’s “looking at” Chinese
companies that trade on the NYSE and Nasdaq exchanges but do not follow
U.S. accounting rules. Still, he said that cracking down could backfire
and simply result in the firms moving to exchanges in London or Hong
Kong.
While not technically part of the government, the PCAOB is
overseen by the Securities and Exchange Commission. The ability to
inspect audits of Chinese firms that list in the U.S. is certain to come
up at a roundtable that the SEC is holding July 9 on risks of investing
in China and other emerging markets.
Senators Kevin Cramer, Tom
Cotton, Bob Menendez, Marco Rubio and Rick Scott are also sponsors of
the bill. Rubio applauded the passage of the Kennedy-Van Hollen bill and
said it incorporated aspects of a similar bill he introduced last year.
“I
was proud to work with Senator Kennedy on this important legislation
that would protect American retail investors and pensioners from risky
investments in fraudulent, opaque Chinese companies that are listed on
U.S. exchanges and trade on over-the-counter markets,” Rubio said in a
statement. “If Chinese companies want access to the U.S. capital
markets, they must comply with American laws and regulations for
financial transparency and accountability.”
According to the SEC,
224 U.S.-listed companies representing more than $1.8 trillion in
combined market capitalization are located in countries where there are
obstacles to PCAOB inspections of the kind this legislation mandates.
(Updates
with analyst voice in eighth paragraph. An earlier version corrected
that Wuhan is a city, not a province, in 12th paragraph)
For more articles like this, please visit us at bloomberg.com
Subscribe now to stay ahead with the most trusted business news source.
(Bloomberg)
-- The Senate overwhelmingly approved legislation Wednesday that could
lead to Chinese companies such as Alibaba Group Holding Ltd. and Baidu
Inc. being barred from listing on U.S. stock exchanges amid increasingly
tense relations between the world’s two largest economies.
The
bill, introduced by Senator John Kennedy, a Republican from Louisiana,
and Chris Van Hollen, a Democrat from Maryland, was approved by
unanimous consent and would require companies to certify that they are
not under the control of a foreign government.
U.S. lawmakers have
raised red flags over the billions of dollars flowing into some of
China’s largest corporations, much of it from pension funds and college
endowments in search of fat investment returns. Alarm has grown in
particular that American money is bankrolling efforts by the country’s
technology giants to develop leading positions in everything from
artificial intelligence and autonomous driving to internet data
collection.
Shares in some of the biggest U.S.-listed Chinese
firms, including Baidu and Alibaba, slid Thursday in New York while the
broader market gained.
If a company can’t show that it is not
under such control or the Public Company Accounting Oversight Board, or
PCAOB, isn’t able to audit the company for three consecutive years to
determine that it is not under the control of a foreign government, the
company’s securities would be banned from the exchanges.
“I do not want to get into a new Cold War,” Kennedy said on the Senate floor, adding that he wants “China to play by the rules.”
“Publicly
listed companies should all be held to the same standards, and this
bill makes common sense changes to level the playing field and give
investors the transparency they need to make informed decisions,” Van
Hollen said in a statement. “I’m proud that we were able to pass it
today with overwhelming bipartisan support, and I urge our House
colleagues to act quickly.”
House Bill
Stricter U.S.
oversight could potentially affect the future listing plans of major
private Chinese corporations from Jack Ma’s Ant Financial to
SoftBank-backed ByteDance Ltd. But since discussions on increased
disclosure requirements began last year, many other Chinese companies
have either listed in Hong Kong already or plan to do so, said James
Hull, a Beijing-based analyst and portfolio manager with Hullx.
“All
Chinese U.S.-listed entities are potentially impacted over the coming
years,” he said. “Increased disclosure may hurt some smaller companies,
but there’s been risk disclosures around PCAOB for a while now, so it
shouldn’t be a shock to anyone.”
In a sign of broad support for
the measure, Representative Brad Sherman, a California Democrat on the
House Financial Services Committee, introduced a companion bill in that
chamber. Sherman said in a statement that Nasdaq moved this week to
delist China-based Luckin Coffee after executives at the company
admitted fabricating $310 million in sales between April and December
2019.
“I commend our Senate counterparts for moving to address
this critical issue,” Sherman said. “Had this legislation already been
signed into law, U.S. investors in Luckin Coffee likely would have
avoided billions of dollars in losses.”
House leaders are
discussing the legislation -- and a separate Senate-passed bill to
sanction Chinese officials over human rights abuses against Muslim
minorities -- with lawmakers and members of the relevant committees, a
Democratic aide said.
The Senate measure -- S. 945 -- is an
example of the rising bipartisan pushback against China in Congress that
had been building over trade and other issues. It has been amplified
especially by Republicans as President Donald Trump has sought to blame
China as the main culprit in the coronavirus pandemic.
GOP
lawmakers have in recent weeks unleashed a torrent of legislation aimed
at punishing China for not being more forthcoming with information or
proactive in restricting travel as the coronavirus began to spread from
the city of Wuhan, where it was first detected.
Trump escalated
his rhetoric against China on Wednesday night, suggesting that leader Xi
Jinping is behind a “disinformation and propaganda attack on the United
States and Europe.”
“It all comes from the top,” Trump said in a
series of tweets. He added that China was “desperate” to have former
Vice President Joe Biden win the presidential race.
Kennedy told Fox Business on Tuesday that the bill would apply to U.S. exchanges such as Nasdaq and the New York Stock Exchange.
“I
would not turn my back on the Chinese Communist Party if they were two
days dead,” Kennedy said. “They cheat. And I’ve got a bill to stop them
from cheating.”
At issue is China’s longstanding refusal to allow
the PCAOB to examine audits of firms whose shares trade on the New York
Stock Exchange, Nasdaq and other U.S. platforms. The inspections by the
little-known agency, which Congress stood up in 2002 in response to the
massive Enron Corp. accounting scandal, are meant to prevent fraud and
wrongdoing that could wipe out shareholders.
Clash
Since
then China and the U.S. have been at odds on the issue even as companies
including Alibaba and Baidu have raised billions of dollars selling
shares in American markets. The long-simmering feud came to the
forefront last year as Washington and Beijing clashed over broader trade
and economic issues, and some in the White House have been urging Trump
to take a harder line on the audit inspections.
Last week, Trump
said in an interview on Fox Business that he’s “looking at” Chinese
companies that trade on the NYSE and Nasdaq exchanges but do not follow
U.S. accounting rules. Still, he said that cracking down could backfire
and simply result in the firms moving to exchanges in London or Hong
Kong.
While not technically part of the government, the PCAOB is
overseen by the Securities and Exchange Commission. The ability to
inspect audits of Chinese firms that list in the U.S. is certain to come
up at a roundtable that the SEC is holding July 9 on risks of investing
in China and other emerging markets.
Senators Kevin Cramer, Tom
Cotton, Bob Menendez, Marco Rubio and Rick Scott are also sponsors of
the bill. Rubio applauded the passage of the Kennedy-Van Hollen bill and
said it incorporated aspects of a similar bill he introduced last year.
“I
was proud to work with Senator Kennedy on this important legislation
that would protect American retail investors and pensioners from risky
investments in fraudulent, opaque Chinese companies that are listed on
U.S. exchanges and trade on over-the-counter markets,” Rubio said in a
statement. “If Chinese companies want access to the U.S. capital
markets, they must comply with American laws and regulations for
financial transparency and accountability.”
According to the SEC,
224 U.S.-listed companies representing more than $1.8 trillion in
combined market capitalization are located in countries where there are
obstacles to PCAOB inspections of the kind this legislation mandates.
(Updates
with analyst voice in eighth paragraph. An earlier version corrected
that Wuhan is a city, not a province, in 12th paragraph)
For more articles like this, please visit us at bloomberg.com
Subscribe now to stay ahead with the most trusted business news source.
FILE - In this June 28, 2019, file
photo, President Donald Trump and Russian President Vladimir Putin walk
to participate in a group photo at the G20 summit in Osaka, Japan. The
Trump administration is notifying international partners that it is
pulling out of a treaty that permits 30-plus nations to conduct unarmed,
observation flights over each other’s territory — overflights set up
decades ago to promote trust and avert conflict. The administration says
it wants out of the Open Skies Treaty because Russia is violating the
pact and imagery collected during the flights can be obtained quickly at
less cost from U.S. or commercial satellites. (AP Photo/Susan Walsh,
File)
WASHINGTON (AP) — The Trump administration
notified international partners on Thursday that it is pulling out of a
treaty that permits 30-plus nations to conduct unarmed, observation
flights over each other’s territory — overflights set up decades ago to
promote trust and avert conflict.
The administration says it wants
out of the Open Skies Treaty because Russia is violating the pact, and
imagery collected during the flights can be obtained quickly at less
cost from U.S. or commercial satellites. Exiting the treaty, however, is
expected to strain relations with Moscow and upset European allies and
some members of Congress.
President Dwight Eisenhower first
proposed that the United States and the former Soviet Union allow aerial
reconnaissance flights over each other’s territory in July 1955. At
first, Moscow rejected the idea, but President George H.W. Bush revived
it in May 1989, and the treaty entered into force in January 2002.
Currently, 34 nations have signed it; Kyrgyzstan has signed but not
ratified it yet.
More than 1,500 flights have been conducted under
the treaty, aimed at fostering transparency about military activity and
helping monitor arms control and other agreements. Each nation in the
treaty agrees to make all its territory available for surveillance
flights, yet Russia has restricted flights over certain areas.
Last
month, top Democrats on the Foreign Affairs and Armed Services
committees in both the House and the Senate wrote to Trump accusing the
president of “ramming” a withdrawal from the treaty as the entire world
grapples with COVID-19. They said it would undermine U.S. alliances with
European allies who rely on the treaty to keep Russia accountable for
its military activities in the region.
“The administration’s
effort to make a major change to our national security policy in the
midst of a global health crisis is not only shortsighted, but also
unconscionable,” wrote Rep. Adam Smith, D-Wash., Rep. Eliot Engel,
D-N.Y., and Sens. Jack Reed, D-R.I., and Bob Menendez, D-N.J.
“This effort appears intended to limit appropriate congressional consultation on, and scrutiny of, the decision,” they wrote.
They
said they weren’t moved by the defense secretary’s argument that $125
million to replace aging aircraft used for treaty verification, which
was already appropriated by Congress, is too costly. “The total cost of
replacing the aircraft is a tiny portion of the overall defense budget,”
they said.
Earlier this month, 16 former senior European military
and defense officials signed a statement supporting the treaty, saying
that a U.S. withdrawal from the treaty would be a blow to global
security and further undermine the international arms control
agreements.
The officials asked the U.S. to reconsider its exit.
But if the U.S. leaves, they called for European states to stay in the
treaty, fulfill obligations under the treaty and refrain from
restricting the length of observation flights or banning flights over
certain territories.
Senior administration officials said Trump
last fall ordered a comprehensive review of the costs and benefits of
U.S. participation in the Open Skies Treaty. At the end of an
eight-month review, which included extensive input from allies, it
became clear that it was no longer in America’s interest to remain party
to the treaty, the officials said. The U.S. notified other members of
the treaty on Thursday, and the United States will formally pull out in
six months.
The senior administration officials said Russian
violations of the treaty were the main reason for exiting the treaty.
They said Russia has restricted flights over Moscow and Chechnya and
near Abkhazia and South Ossetia. Russian restrictions also make it
difficult to conduct observation in the Kaliningrad, a Russian enclave
sandwiched between Lithuania and Poland that is home to Russia’s Baltic
fleet, they said.
Russia uses illegal overflight restrictions
along the Georgian border in support of its propaganda narrative that
the Russian-occupied enclaves of Georgia are independent countries. The
senior administration officials said that amounted to an illegal
restriction, under the treaty, coupled with a narrative that justifies
Russia’s regional aggression.
The U.S. has been working on a
proposal to backfill partners and allies with imagery that the U.S.
would have shared from its open skies flights.
___
Associated Press Diplomatic Writer Matthew Lee contributed to this report.
Trump threatens to cut off federal money for Michigan over mail-in voting
FILE PHOTO: U.S. President Trump holds cabinet meeting at the White House in Washington
WASHINGTON
(Reuters) - U.S. President Donald Trump on Wednesday called Michigan's
plan to send mail-in voting applications to all voters in the state
illegal, without citing a specific law, and threatened to withhold
funding to the state.
"This
was done illegally and without authorization by a rogue Secretary of
State. I will ask to hold up funding to Michigan if they want to go down
this Voter Fraud path!" Trump wrote in a tweet.
Trump addressed his tweet to Treasury Secretary Steven Mnuchin, his chief of staff, and the acting U.S. budget director.
Michigan
Secretary of State Jocelyn Benson on Tuesday said all 7.7 million
Michigan voters would receive absentee ballot applications before the
state's Aug. 4 primary and the Nov. 3 general election, so that no one
"has to choose between their health and their right to vote."
Michigan
does not reliably line up with one political party. Republican Trump
won the state in 2016 but in 2012 it went to former President Barack
Obama, a Democrat. The Democrats' presumptive nominee this year, Joe
Biden, served as Obama's vice president.
Republicans
say mail-in voting leads to fraud and favors Democrats, while Democrats
say it allows a wider group of people to participate in elections.
Cutting
off federal aid to the state, led by a Democratic governor who is on
Biden's short list of possible running mates, could be disastrous.
In
the past two months a massive outbreak of the novel coronavirus
prompted a rigorous state-wide lockdown, which then brought armed
protesters to the state capital. Then on Tuesday night, Michigan
Governor Gretchen Whitmer declared a state of emergency for part of the
state after heavy rains broke two dams and displaced thousands of
residents.
(Reporting by Lisa Lambert; Editing by Andrew Heavens and Chizu Nomiyama)
-----------------
World
Defeat, riots and recriminations: China football's darkest day
Hong Kong fans hold up signs that read "Boo" in 2015 during China's
national anthem before a qualifying match for the 2018 World Cup at Mong
Kok stadium in Hong Kong (AFP Photo/Isaac LAWRENCE)
It is known as the "May 19 Incident" and by some estimations it haunts China's national football team 35 years on.
On
May 19, 1985, China were stunned 2-1 at home by neighbours Hong Kong,
then still under British rule, on one of the most infamous nights in
Chinese football history.
It is notorious not just because China's hopes of qualifying for the World Cup for the first time ended in calamity.
After the match fans in Beijing rioted, smashing cars, attacking buses and threatening foreign journalists and diplomatic staff.
It
began an intense rivalry between the two teams which has continued to
this day, despite the UK handing back Hong Kong to China in 1997.
Recent
World Cup qualifying matches between the two sides have been
bad-tempered affairs with Hong Kong fans jeering the Chinese national
anthem, which their team shares, since pro-democracy protests broke out
in the city in 2014.
- The match -
It was a Sunday night and China needed only a draw to reach the next stage of qualifying for the Mexico 1986 World Cup.
They
were expected to beat the minnows from Hong Kong easily, but in front
of 80,000 fans at the Workers' Stadium a complacent China's hopes of
reaching the World Cup collapsed.
With a line-up regarded as one
of China's strongest in the last 40 years, they were level 1-1 at
half-time but conceded in the 60th minute when Hong Kong defender Ku
Kam-fai smashed in the winner.
As their World Cup hopes faded in
the drizzle, Chinese supporters became frustrated by what they saw as
Hong Kong's play-acting and reluctance to attack.
Cries of "Hong
Kong cowards" rang out and the full-time whistle was greeted with
stunned silence, followed by the stamping of feet, then fury.
Kwok
Ka-ming, Hong Kong's coach at the time, told AFP ahead of the 35th
anniversary of his team's momentous victory: "In 1984 then British Prime
Minister Margaret Thatcher visited Beijing and the Joint Declaration
was signed (agreeing to return Hong Kong to China).
"So the victory we had in the qualifiers not only meant a lot for football, but also in history."
- The riot -
Losing was one thing but doing so to "little brother" Hong Kong made it even worse.
"After
we won and wanted to return to the changing room, the spectators began
to hurl stuff onto the field so we couldn't make it back to the changing
room and had to shelter," Kwok recalls.
Outside the stadium hundreds of fans, some drunk, rioted.
Some
were armed with stones, bricks and bottles, according to reports at the
time, and the atmosphere took on a distinctly anti-foreign flavour.
"An
AFP correspondent taking photos was accosted by a hostile crowd of more
than a hundred people, the police making no effort to intervene," said
an AFP report.
"The crowd, apparently acting on the orders of
plainclothes police, did not allow the correspondent to leave until they
grabbed his film."
Other foreign reporters were spat at,
threatened and had their cars attacked, while a staff member of the
French embassy also saw his car targeted.
The hooliganism lasted
about two hours with "several dozen cars" and buses were damaged. A taxi
driver attempting to protect his vehicle was beaten up.
About 30 police officers were injured and 127 people were arrested.
- The repercussions -
The official Xinhua news agency called it the most serious incident in Beijing since the founding of communist China in 1949.
AFP
noted that foreign residents and diplomatic circles were concerned
about "a surge" in xenophobia and police failure to protect the victims.
The fallout was no less ugly for the Chinese team, who went into hiding for several days and made a public apology.
Coach
Zeng Xuelin quit and later recalled the episode as "a nightmare". The
Chinese Football Association chairman resigned six months later.
Lee
Chun-wing, a lecturer at Hong Kong's College of Professional and
Continuing Education, says there are two theories why fans reacted like
they did.
Hong Kong media critical of China blamed xenophobia but
Lee -- whose research interests include Hong Kong's football history --
points out that buses carrying locals were also targeted.
China in
the 1980s was undergoing vast economic changes so another explanation
is that fans took the opportunity to protest against price reform which
had led to inflation.
China reached the World Cup in 2002, but
today stand 76th in the FIFA rankings, a long way from President Xi
Jinping's ambition to become a football super power.
"Probably the
players and fans have always been haunted by the defeat whenever China
plays a do-or-die match since then (1985)," Lee said.
-----
Associated Press
U.S. restriction on chipmakers deals critical blow to Huawei
A
man wearing a face mask to protect against the coronavirus walks past a
Huawei retail store in Beijing on Monday, May 18, 2020. China's
commerce ministry says it will take "all necessary measures" in response
to new U.S. restrictions on Chinese tech giant Huawei's ability to use
American technology, calling the measures an abuse of state power and a
violation of market principles. (AP Photo/Ng Han Guan)
HONG
KONG (AP) — The latest U.S. sanctions on tech giant Huawei threaten to
devastate the company and escalate a feud with China that could disrupt
technology industries worldwide.
Huawei Technologies Ltd. is one
of the biggest makers of smartphones and network equipment, but that
$123 billion-a-year business is in jeopardy after Washington announced
further restrictions on use of American technology by foreign companies
that make its processor chips.
Huawei spent the past year
scrambling to preserve its business after an earlier round of U.S.
restrictions imposed last May cut off access to American components and
software.
“Our business will inevitably be impacted,” Huawei’s chairman, Guo Ping, said at a conference Monday with industry analysts.
“In
spite of that, the challenges over the past year have helped us develop
a thicker skin, and we are confident about finding solutions soon,” Guo
said.
The company said Monday that it would need some time to “understand the impact” of the latest restrictions.
The
conflict is politically explosive because Huawei is more than just
China’s most successful private company. It is a national champion among
industries the ruling Communist Party is promoting in hopes of
transforming China into a global competitor in profitable technologies.
On
Monday, China’s Ministry of Commerce warned it will protect “the
legitimate rights and interests of Chinese enterprises,” but gave no
details of potential retaliation. Beijing has threatened in the past to
issue an “unreliable entities list” that might restrict operations of
American companies in China.
Friction over Huawei adds to a broader deterioration of U.S.-Chinese relations.
The
two sides have declared a truce in a trade war, but arguments over the
origin of the coronavirus pandemic that is roiling the global economy
have raised worries that agreement might fall apart.
Huawei is at
the center of the U.S.-Chinese conflict over Beijing’s technology
ambitions, which Washington worries might erode American industrial
leadership.
Huawei has few alternatives if Washington refuses to
allow its suppliers to use U.S. technology. The company has developed
some of its own chips but even the biggest non-U.S. manufacturers such
as Taiwanese giant TSMC need American components or production
equipment.
“Every electronics system that Huawei produces could be
negatively impacted,” Jim Handy, semiconductor analyst for Objective
Analysis, said in an email. “Most China-based alternatives haven’t yet
been established.”
New curbs announced Friday are the third round of sanctions aimed at cutting off Huawei’s access to U.S. technology and markets.
In
a statement, Huawei criticized the U.S. decision as “arbitrary and
pernicious” and warned it will affect operation and maintenance of
networks installed by the company in more than 170 countries.
“The U.S. government has intentionally turned its back on the interests of Huawei’s customers and consumers,” it said.
The
statement said the decision “will damage the trust and collaboration
within the global semiconductor industry,” harming other industries that
depend on it.
The Trump administration says Huawei is a security
risk, which the company denies, and is trying to persuade European and
other allies to shun its technology for next-generation telecom
networks.
Chinese officials accuse Washington of raising phony security concerns to hurt a rising competitor to American tech companies.
The
potential impact extends far beyond Huawei. The company spends tens of
billions of dollars a year on components and technology from U.S. and
other suppliers, purchases that might be disrupted if output of
smartphones and other products is blocked.
U.S. suppliers already
have complained to Washington that restrictions imposed last May on
Huawei’s access to American components and other technology will cost
them billions of dollars in lost potential sales.
The company’s
telecoms market in the U.S. evaporated after a congressional panel in
2012 labeled Huawei and its Chinese competitor ZTE Corp. security risks
and told phone carriers to avoid them.
Last year’s sanctions
require U.S. companies to obtain government permission to sell chips and
other technology to Huawei. The company can keep using Google’s Android
operating system on its smartphones but lost the ability to pre-install
music, maps and other Google services customers expect on phones.
Huawei
has launched its own smartphone operating system and is paying
developers to create apps to run on it. But the company says sales have
suffered.
Despite that, Huawei reported a 2019 profit of 62.7
billion yuan ($8.8 billion) and said total sales rose 19% over a year
earlier.
The sanctions highlight Huawei’s reliance on technology
suppliers despite having one of the world’s biggest corporate research
and development budgets.
Huawei has its own semiconductor unit, HiSilicon, but needs manufacturers including TSMC to make the most advanced chips.
Beijing
has spent the past two decades and billions of dollars to create a
Chinese semiconductor industry. But its biggest producer, SMIC, can only
make chips that are two generations behind TSMC.
“Huawei had
already begun to shift some production from TSMC to SMIC, although SMIC
cannot yet produce Huawei’s latest Kirin 980 chipset,” said Neil Thomas,
a research associate at U.S. think tank Paulson Institute. “But SMIC
can probably manufacture earlier-generation Huawei chipsets.”
Then-chairman
Eric Xu warned in March that more U.S. pressure on Huawei might provoke
Chinese retaliation that could disrupt its global industry.
Beijing
will not “just stand by and watch Huawei be slaughtered,” Xu said. “The
impact on the global industry would be astonishing.”
----
World
Huawei says 'survival' at stake after US chip restrictions
Shenzhen (China) (AFP) - Huawei on Monday
assailed the latest US move to cut it off from semiconductor suppliers
as a "pernicious" attack that will put the Chinese technology giant in
"survival" mode and sow chaos in the global technology sector.
The
Commerce Department said on Friday it was tightening sanctions on
Huawei -- seen by Washington as a security risk -- to include denying it
access to semiconductor designs developed using US software and
technology.
"The decision was arbitrary and pernicious and
threatens to undermine the entire (technology) industry worldwide,"
Huawei said in a statement.
Huawei has largely weathered an escalating 18-month campaign by the Trump administration to isolate it internationally.
But
it "will inevitably be affected" by the new American salvo, rotating
chairman Guo Ping said at an annual summit of technology analysts that
Huawei organises at its headquarters in the southern Chinese city of
Shenzhen.
- Survival mode -
"Survival is the key for us now," Guo said, issuing an appeal to Huawei's suppliers and customers worldwide to stand with it.
He declined to give a detailed forecast of the impact when asked by journalists.
But
the Huawei statement said the US decision "will have a serious impact
on a wide number of global industries" by creating uncertainty in the
chip sector and technology supply chains.
US officials said Huawei
had been circumventing sanctions by obtaining chips and components that
are produced around the world based on American technology.
Washington
last year said it would blacklist Huawei from the US market and from
buying crucial American components, though it has extended a series of
reprieves to allow US businesses that work with Huawei time to adjust.
On Friday it extended this reprieve by another 90 days but said these exceptions are not likely to be extended further.
Commerce
Secretary Wilbur Ross had said that even as Huawei seeks to develop its
own components in response to US sanctions, "that effort is still
dependent on US technologies."
US officials accuse Huawei, the
world's biggest supplier of telecom network equipment and number two
smartphone manufacturer, of stealing American trade secrets and say it
could allow Beijing to spy on global telecoms traffic.
Huawei strenuously denies the charges, saying the United States has never provided any proof of a security threat.
The sanctions against the company have been a key driver of heightened US-China trade tensions.
China's Ministry of Commerce on Sunday warned it would take unspecified "necessary measures" to protect Huawei.
US officials said the new rules would have a 120-day grace period.
A
senior State Department official said the move would not necessarily
deny Huawei access to these products but require a license allowing
Washington to keep track of the technology.
- US trying to 'crush' rivals -
Huawei
is poised to become a global leader in the coming advent of
fifth-generation, or 5G, wireless networks and Washington has lobbied
other countries to shun Huawei gear over potential security risks.
China's
government has poured money into developing home-grown semiconductors
-- the building blocks of tech -- but it still lags behind the US, Japan
and South Korea, which analysts say is a glaring Achilles heel for
Chinese companies like Huawei.
Huawei said the US was "leveraging its own technological strengths to crush" foreign companies.
The resulting disruptions to supply chains will ultimately harm US interests, it added.
Declaring
Huawei was "taking the lead" in global tech, Guo suggested that
Washington's pressure was fuelled by fear that the United States was
falling behind technologically.
"Any other country or company with more advanced technologies may put US supremacy at risk," he told the industry conference.
-----
Reuters
China says opposed to latest U.S. rules against Huawei
BEIJING
(Reuters) - China's commerce ministry said on Sunday it is firmly
opposed to the latest rules by the United States against Huawei and will
take all necessary measures to safeguard Chinese firms' rights and
interests.
The ministry said in a statement that it urges the United States to immediately stop the wrong actions.
The
Trump administration on Friday moved to block global chip supplies to
blacklisted telecoms equipment company Huawei Technologies, spurring
fears of Chinese retaliation and hammering shares of U.S. producers of
chipmaking equipment. The new rule went into effect on Friday but would
have a 120-day grace period.
China's state-run newspaper Global
Times, citing an unidentified source, reported that Beijing, in response
to the new limits on Huawei, was ready to put U.S. companies on an
"unreliable entity list" as part of the countermeasures.
Those countermeasures include launching investigations and imposing restrictions on U.S. companies such as Apple Inc , Cisco Systems Inc and Qualcomm Inc .
"The
U.S. has utilized national power and used the so-called national
security concern as an excuse, and abused export controls to continue to
suppress some particular companies in other countries," China's
commerce ministry said in today's statement.
(Reporting by Yilei Sun, Yingzhi Yang and Se Young Lee; Editing by Christian Schmollinger and Emelia Sithole-Matarise)
-----
World
Huge fentanyl haul seized in Asia's biggest-ever drugs bust
Our Foreign Staff
Myanmar police say they have seized a huge haul of liquid fentanyl - the first time the dangerous synthetic opioid that is ravaging North America has been found in Asia’s Golden Triangle drug-producing region.
In
a sign that Asia’s drug syndicates have moved into the lucrative opioid
market, more than 3,700 litres of methylfentanyl was discovered by
anti-narcotics police near Loikan village in Shan State in northeast Myanmar.
The
seizure of the fentanyl derivative was part of Asia’s biggest-ever
interception of illicit drugs, precursors and drug-making equipment,
including 193 million methamphetamine tablets known as yaba. At 17.5
tonnes, that is almost as much yaba as has been seized during the
previous two years in Myanmar.
The UN Office on Drugs and Crime
(UNODC) said the scale of the bust was unprecedented and Myanmar’s
anti-drug authorities had “dismantled a significant network” during a
two-month operation involving police and military. Also seized were
almost 163,000 litres and 35.5 tonnes of drug precursors - substances
that can be used to produce drugs - as well as weapons. There were more
than 130 arrests.
The methylfentanyl discovery was an ominous indicator for the
region’s illicit drug market, the U.N. agency and a Western official
based in Myanmar told Reuters news agency.
“It could be a
game-changer because fentanyl is so potent that its widespread use would
cause a major health concern for Myanmar and the region,” said the
Western official, who declined to be identified.
The head of law
enforcement for Myanmar’s counter-narcotics agency, Colonel Zaw Lin,
said the methylfentanyl had been verified using state-of-the-art
equipment.
The seizure showed the drug syndicates' methods were changing, he said.
Fentanyl
and its derivatives have caused more than 130,000 overdose deaths in
the United States and Canada in the past five years, according to
government agencies.
The opioid epidemic has not yet swept Asia, Europe or Australasia but there have been signs it is an emerging threat.
“We
have repeatedly warned the region [that] fentanyl could become a
problem but this is off the charts,” said UNODC’s Southeast Asia and the
Pacific representative Jeremy Douglas.
“It is the shift in the market we have been anticipating, and fearing.”
While
Myanmar police did not disclose the purity and exact make-up of the
methylfentanyl found, it comes in two main variants, both more potent
than fentanyl, according to the European Union’s drug monitoring agency.
Fentanyl itself is 25 to 50 times stronger than heroin.
Increasingly,
drug traffickers have been mixing fentanyl and its derivatives with
heroin, meth and cocaine, adding to their potency and lethality.
-----
Reuters
Trump says doesn't want to talk to Xi, could even cut China ties
Doina Chiacu and David Brunnstrom
Trump says doesn't want to talk to Xi, could even cut China ties
Pictures of the Year: U.S. Politics
By Doina Chiacu and David Brunnstrom
WASHINGTON
(Reuters) - U.S. President Donald Trump signaled a further
deterioration of his relationship with China over the coronavirus
outbreak, saying he has no interest in speaking to President Xi Jinping
right now and going so far as to suggest he could even cut ties with the
world's second largest economy.
In an interview with Fox Business
Network broadcast on Thursday, Trump said he was very disappointed with
China's failure to contain the disease and that the pandemic had cast a
pall over his January trade deal with Beijing, which he has previously
hailed as a major achievement.
"They should have never let this
happen," Trump said. "So I make a great trade deal and now I say this
doesn't feel the same to me. The ink was barely dry and the plague came
over. And it doesn't feel the same to me."
Trump's pique extended to Xi, with whom the U.S. president has said repeatedly he has a good relationship.
"But I just – right now I don't want to speak to him," Trump said in the interview, which was taped on Wednesday.
Trump
was asked about a Republican senator's suggestion that U.S. visas be
denied to Chinese students applying to study in fields related to
national security, such as quantum computing and artificial
intelligence.
"There are many things we could do. We could do things. We could cut off the whole relationship," he replied.
"Now,
if you did, what would happen? You'd save $500 billion," Trump said,
referring to estimated U.S. annual imports from China, which he often
refers to as lost money.
Chinese foreign ministry spokesman Zhao
Lijian told reporters in Beijing on Friday that maintaining a steady
bilateral relationship served the interests of both peoples and would be
beneficial for world peace and stability.
"Both China and the
U.S. should now be cooperating more on fighting the virus together, to
cure patients and resume economic production, but this requires the U.S.
to want to work with us on this," Zhao said.
Trump's remarks drew
ridicule from Hu Xijin, editor in chief of China's influential Global
Times tabloid, who referred to the president's much-criticized comments
last month about how COVID-19, the disease caused by the coronavirus,
might be treated.
"This president once suggested COVID-19 patients
inject disinfectants," Hu said on Twitter. "Remember this and you won't
be surprised when he said he could cut off the whole relationship with
China."
CONCERNED, REVIEWING OPTIONS
U.S. Treasury Secretary
Steven Mnuchin told Fox Business Network China needed to provide a lot
more information about the coronavirus and Trump was reviewing his
options.
"The president is concerned. He's reviewing all his
options. Obviously, we're very concerned about the impact of this virus
on the economy, on American jobs, the health of the American public and
the president is going to do everything to protect the economy and
protect American workers," Mnuchin said.
"It's a difficult and
complex matter and the president has made very clear, he wants more
information. They didn't let us in, they didn't let us understand what
was going on."
Trump and his Republican backers have accused
Beijing of failing to alert the world to the severity and scope of the
coronavirus outbreak and of withholding data about the earliest cases.
The pandemic has sparked a sharp global recession and threatened Trump's
November re-election chances.
The United States has been hardest hit by the pandemic, according to official data.
China
insists it has been transparent, and, amid increasingly bitter
exchanges, both sides have questioned the future of the trade deal.
Opponents
of Trump have said that while China has much to answer for over the
outbreak, he appears to be seeking to deflect attention from criticism
over his response to the crisis.
Scott Kennedy of Washington's
Center for Strategic and International Studies think tank called Trump's
remarks "dangerous bravado."
"Avoiding communication is not an
effective strategy for solving a crisis that requires global
cooperation. And cutting off the economic relationship would badly
damage the American economy," he said.
Michael Pillsbury, a China
analyst who has worked as an outside adviser to Trump, told Reuters he
believed the president was concerned that China not only wanted to
re-negotiate the Phase 1 deal, but also had not been meeting goals in
purchasing from United States.
He said that according to figures
cited by the China Daily, China's purchases of U.S. products in the
first four months of this year were 3% less than during the same period
last year.
"It's not good news for reducing the trade deficit or helping our economy recover from the coronavirus crisis," he said.
China
took some additional steps towards the Phase 1 goals on Thursday,
buying U.S. soybean oil for the first time in nearly two years and
issued customs notices allowing imports of U.S. barley and blueberries.
An
executive from Chinese state agriculture trading house COFCO said China
was set to speed up purchases of U.S. farm goods to implement the Phase
1 deal.
While U.S. intelligence agencies have said the
coronavirus does not appear manmade or genetically modified, Trump said
in his interview that China should have stopped it at its source.
"Whether it came from the lab or came from the bats, it all came from China, and they should have stopped it," he said.
"It got out of control."
(Reporting
by Doina Chiacu and David Brunnstrom and David Lawder; additional
reporting by Yew Lun Tian in Beijing; Editing by Paul Simao, Bernadette
Baum Daniel Wallis, Raju Gopalakrishnan)
------
World
More than 100 countries are calling for an independent investigation into the coronavirus crisis
The two-day, virtual World Health Assembly meeting has begun as more
than 100 countries back a resolution calling for a probe into the
response to the COVID-19 pandemic.
A resolution at the annual
assembly calls for an investigation into the global response coordinated
by the World Health Organization to the coronavirus crisis, per NBC News.
A draft mentioning the need for an "impartial, independent and
comprehensive evaluation" of the response to COVID-19 is being supported
by 116 countries out of 194, including Australia, Britain, Russia, and
members of the European Union, Reuters reports. The European Union is presenting the resolution, which also mentions identifying "the zoonotic source of the virus and the route of introduction to the human population."
Chinese
President Xi Jinping in a remote speech at the assembly on Monday
claimed the country has acted "with openness and transparency" during
the crisis, saying any investigation should only occur after the virus
is under control, BBC News reports.
President Trump last month announced
funding to the World Health Organization would be put on hold "while
its mismanagement of the coronavirus pandemic is investigated," accusing
the organization of having a "dangerous bias towards the Chinese
government." When Australian Prime Minister Scott Morrison called for a
coronavirus inquiry last month, Axios notes
that China "accused Australia of doing the United States' political
bidding." The resolution that has the support of more than 100
countries, though, doesn't actually name China, The Washington Post notes.
The United States, Reuters reports,
appears likely to back the resolution at the World Health Assembly,
with U.S. Ambassador Andrew Bremberg saying, "My hope is that we will be
able to join consensus."
FILE PHOTO: U.S. President Donald Trump tours face mask production facility in Phoenix, Arizona
By Andrea Shalal, Alexandra Alper and Patricia Zengerle
WASHINGTON
(Reuters) - U.S. lawmakers and officials are crafting proposals to push
American companies to move operations or key suppliers out of China
that include tax breaks, new rules, and carefully structured subsidies.
Interviews
with a dozen current and former government officials, industry
executives and members of Congress show widespread discussions underway -
including the idea of a "reshoring fund" originally stocked with $25
billion - to encourage U.S. companies to drastically revamp their
relationship with China.
President
Donald Trump has long pledged to bring manufacturing back from
overseas, but the recent spread of the coronavirus and related concerns
about U.S. medical and food supply chains dependency on China are
"turbocharging" new enthusiasm for the idea in the White House.
On
Thursday, Trump signed an executive order that gave a U.S. overseas
investment agency new powers to help manufacturers in the United States.
The goal, Trump said, is to "produce everything America needs for
ourselves and then export to the world, and that includes medicines."
But
the Trump administration itself remains divided over how best to
proceed, and the issue is unlikely to be addressed in the next fiscal
stimulus to offset the coronavirus downturn. Congress has begun work on
another fiscal stimulus package but it remains unclear when it might
pass.
The
push takes on special resonance in an election year. While anti-China,
pro-American job proposals could play well with voters, giving taxpayer
money or tax breaks to companies that moved supply chains to China at a
time when small business is flailing may not.
BIPARTISAN APPEAL
Both
Republicans and Democrats are crafting bills to decrease U.S. reliance
on China-made products, which accounted for some 18% of overall imports
in 2019.
"The
whole subject of supply chains and integrity of supply chains... does
have a greater place in members' minds," Representative Mac Thornberry,
the top Republican on the House of Representatives Armed Services
Committee, told reporters May 7.
The medical supply chain and defense-related goods are top of the list.
"Coronavirus
has been a painful wakeup call that we are too reliant on nations like
China for critical medical supplies," said U.S. Senator Lindsey Graham
in a press release on Friday. He is expected to issue a new bill this
week.
Republican
Senator Josh Hawley is pushing for local content rules for medical
supply chains, and "generous investment subsidies" to encourage
increased domestic production of a range of goods and components.
Republican Senator Marco Rubio introduced a bill May 10 that would bar
sale of some sensitive goods to China, and raise taxes on U.S.
companies' income from China.
A
bipartisan bill introduced by Democratic Representative Anna Eschoo and
Republican Representative Susan Brooks would commission a panel to
recommend ways to cut drug supply reliance on China.
Republican
Representative Mark Green's "SOS Act" proposes funding takeovers of
vulnerable U.S. companies that are critical to our national security.
Lawmakers
also hope to include reshoring provisions in the National Defense
Authorization Act, or NDAA, a $740 billion bill setting policy for the
Pentagon that Congress passes every year.
PAY TO STAY
A
controversial idea being floated in Washington would allocate as much
as $25 billion to companies that make essential goods to move production
home, ensuring that even products far down the supply chain were
sourced domestically, according to two administration officials.
No
lawmaker has publicly embraced it, but several congressional aides
acknowledged it is part of the broader discussion in Congress. One of
the administration officials said states could administer the funds
through their separate economic development organizations.
That
would be a boon for states that are struggling to pay their own bills
after widespread lockdowns, plummeting tax revenues, and a huge surge in
COVID-related costs, one state official said.
But
given longstanding concerns about the government setting "industrial
policy", the notion of subsidizing industry directly is polarizing, even
among Trump's top advisers.
Outright
subsidies are a non-starter, said one of the two administrative
sources. "Internally some are questioning why we should be providing
funds to companies that have left in recent years."
“There’s
a silly notion that failure’s not an option at NASA,” he told the
magazine. “Failure is an option here. If things are not failing, you are
not innovating enough.”
In fact, one significant failure -- one
that eventually led him to found SpaceX -- was when he was ousted from
his position as the CEO of PayPal.
In 1999, Musk started an online financial services
company called X.com. The company eventually merged with a competing
financial company co-founded by Peter Thiel to create PayPal in 2000,
according to Business Insider.
Though Musk was named as the CEO of merged companies, his time in the role was short-lived.
Business
Insider reported that in October 2000, Musk wanted to switch the PayPal
servers from a Unix platform to a Microsoft Windows platform, but the
other cofounders didn’t like the idea.
While he was on his way to Australia for a vacation, Musk was fired by PayPal’s board.
He remained the majority shareholder in the company and when eBay bought PayPal in 2002 for $1.5 billion, Musk ended up with $180 million, FOX Business previously reported.
Even more significant than the money, though, was how Musk was inspired to move on.
“Going
from PayPal, I thought, ‘Well, what are some of the other problems that
are likely to most affect the future of humanity?’” he told graduates
during his 2012 commencement speech at the California Institute of Technology. “It really wasn’t from the perspective of what’s the ... best way to make money.”
It
was during that time that he was inspired to found SpaceX and Tesla. He
founded Tesla in 2003 because it would solve the problem of sustainable
energy and he founded SpaceX in 2002 because it would help “make life
multi-planetary,” he told the Caltech graduates.
However, even in those ventures Musk has had failures.
Now, however, SpaceX is valued at more than $20 billion and Tesla makes $26 billion in sales annually, according to Forbes.
Musk himself is estimated to be worth $36.1 billion and is ranked 31 on Forbes’ list of billionaires.
“Anything which is significantly innovative is going to come with a significant risk of failure,” Musk said in 2015 at the International Space Station Research and Development Conference.
“But, you know, you’ve got to take big chances in order for the
potential for a big, positive outcome. If the outcome is exciting
enough, then taking a big risk is worthwhile.”
Why the new X-37 space plane mission is a big deal
Peter Garretson
Air Force Secretary Barbara Barrett’s announcement
that Saturday's mission of the X-37B military space plane will be to
demonstrate how to use satellites or other space systems to generate
solar power marks a major milestone -- and one that deserves to be
celebrated as a turning point for space development.
It sends a
powerful signal of our intention to remain preeminent in space, and to
contest leadership on grand world-changing ideas like space solar power. It provides the first tangible evidence that the new U.S. Space Force and its leadership grasp the broader significance of its role in building long-term comprehensive security beyond simply protecting America’s critical military satellites.
China has hit upon
space-based solar power as an arena of great power competition,
necessitating a serious response. To this end, the U.S.-China Economic
and Security Review Commission has recommended
that the National Space Council “develop a strategy to ensure the
United States remains the preeminent space power in the face of growing
competition from China.”
That approach, the Commission makes
clear, should include a “long-term economic space resource policy
strategy, including an assessment of the viability of extraction of
space-based precious minerals, onsite exploitation of space-based
natural resources, and space-based solar power.”
Various estimates forecast the overall space economy to exceed a trillion dollars in the next couple of decades. But the potential of space solar power vastly exceeds that paltry sum.
Of
all the potential new markets in space – such as tourism and asteroid
mining – none offers the potential revenues or societal return of space
solar power. None addresses as colossal a market as world energy demand.
None offers the impact of an entirely green energy source which can
scale to global demand. That’s why accessing the vast energy resources
of space are a central component of the ambitious visions put forward by
groups like the United Launch Alliance and visionaries like Jeff Bezos.
Its benefits have been known for some time; in 2008, the Pentagon’s SBSP Study Group concluded
that “space-based solar power does present a strategic opportunity that
could significantly advance U.S. and partner security, capability, and
freedom of action and merits significant further attention on the part
of both the US Government and the private sector.” More recently, in
2016, when the Defense Department, the U.S. Agency for International
Development, and the State Department held a contest for the biggest
ideas that could simultaneously advance diplomacy, development and
defense, space solar power swept the awards.
But
energy security is national security. Over the past several decades,
the U.S. has expended vast sums to purchase and protect foreign sources
of oil and gas, and to guard their transit through contested waters.
Today, America enjoys renewed geopolitical power because of the energy self-sufficiency that has been enabled by fracking and vast domestic sources of coal.
Yet as large as those resources are, they will not last forever. We are wise to diversify. And space is a logical place to do so.
The
upcoming experiment on the X-37B is the first tangible step in the
direction of realizing the promise of space solar. It prominently sets
the Space Force, which falls under the Air Force, on a path to develop
the next global utility, which will be critical to U.S. leadership.
One
way solar power satellites could be constructed would be from thousands
of identical "sandwich" modules each of which converts sunlight to
radio frequency (RF) for wireless beaming of the energy to Earth. The
unique environment in space -- brighter sunlight, radiation, vacuum --
can only be simulated on Earth. To design full systems to operate at
peak thermal efficiency requires in-space testing.
Now,
at last, the quest for the next major global utility has found an ally
in Secretary Barrett and the U.S. Space Force. Maintaining this focus –
and empowering the development of space solar – is essential to keeping
America’s global lead.
Peter Garretson, a retired Air Force
lieutenant colonel, is Senior Fellow for Defense Studies at the American
Foreign Policy Council in Washington
----
NBC News
Symbolism behind Space Force flag revealed as Trump touts 'super duper missile'
President Donald Trump said Friday that a
planned U.S. "super duper missile" could outpace those in the nuclear
arsenals of foreign nations as he was presented with the official flag of the newly created military branch, Space Force, in the Oval Office.
"I
call it the super duper missile and I heard the other night, 17 times
faster than what they have right now," Trump said in reference to Russia
and China's nuclear weapons at the beginning of the ceremony. "Space is
going to be the future, both in terms of defense and offense and so
many other things and already what I'm hearing and based on reports,
we're now the leader on space."
Trump was presented with the flag
by senior military officials, including chief master sergeant in the
U.S. Space Force, Roger Towberman, and Gen. Jay Raymond, head of U.S.
Space Command and the Space Force, who explained the significance behind
the flag's design. He then signed the 2020 Armed Forces Day
Proclamation.
"The delta in the middle, that's the symbol that
space communities use for years and years and years. The North Star
signifies our core value, our guiding light, if you will," Raymond said.
"And the orbit around the globe signifies the space cape colors that
fuel our American way of life."
The Space Force flag is first
official flag for a U.S. military service in 72 years. It was produced
by the Defense Logistics Agency's "Flag Room" in Philadelphia, the same
operation that designs the president's personal flags.
Trump, who signed into law a measure creating the Space Force in December, called the flag "beautiful." Before the sixth branch of the U.S. military was established, the Air Force oversaw operations in space.
----------------
Associated Press
Cuomo: Wear a mask to respect nurses who died to save us
KAREN MATTHEWS, MARINA VILLENEUVE and MICHAEL HILL
A
cyclist wears a protective mask as they pass Madison Square Park,
Tuesday, May 12, 2020, in New York. (AP Photo/Frank Franklin II)
NEW
YORK (AP) — New York Gov. Andrew Cuomo called face masks a sign of
respect for others on a day the state reported 195 new deaths. Other
data released Tuesday shows that nine out of 10 people arrested for
coronavirus-related offenses in New York City have been black or
Hispanic.
Here are the latest coronavirus-related developments in New York:
COVER UP
Warning
that the state isn’t out of danger yet, Cuomo on Tuesday urged New
Yorkers to wear masks out of respect for the nurses and doctors who have
died to protect people from the pandemic, which he said had killed
another 195 people.
During his daily briefing, Cuomo recounted a
tense conversation about masks he had with a man while on a recent walk
with his daughter. He said people should be aware that masks, which are
worn to reduce the wearer’s chance of infecting others, are a sign of
respect to everyone they walk past, as well as to workers pulling
society through the outbreak.
“This mask says, ‘I respect the
nurses and doctors who killed themselves through this virus to save
other people. And I respect the nurses and the doctors, so I’m not going
to infect anyone or allow anyone else to be infected unnecessarily so I
don't cause more stress on the nurses and the doctors,’” Cuomo said.
New
York requires people to wear face coverings when in close proximity to
others in public. As people grow wearier of the extended lockdown, some
complain that requirement infringes on individual liberty.
Cuomo
instead stressed “reciprocal responsibility” as some upstate areas
prepare to start phasing in economic activity this week.
The 195
deaths recorded in New York are a jump from 161 the previous day, but
still about a quarter of the highest daily tallies just over a month
ago. Hospitalization rates also continue to decline.
____
ARREST NUMBERS SHOW RACIAL DISPARITY
Nine
out of 10 people arrested for coronavirus-related offenses in New York
City have been black or Hispanic, police department data released
Tuesday shows.
Of 125 arrested between March 16 and Sunday, 83 were black, 30 were Hispanic, 9 were white and 3 were Asian.
The
New York Police Department says the pandemic-related arrests fall into
broad categories such as hate crimes, domestic violence and resisting
arrest. They include fights that broke out over cutting supermarket
lines and a bank robbery suspect who gave a note to a teller saying,
“this is a bank robbery, I have COVID.”
“These are not social
distancing arrests,” the department said in a statement. “Many were
responses to calls for service where there was a clear victim and police
took necessary action.”
Data released Friday showed that of the
374 summonses issued through May 5 for violating social distancing
orders, 52% were given to black people and 30% to Hispanic people.
The
Legal Aid Society, a public defender group, called on the NYPD to
release a “full and transparent accounting of all police encounters
related to social distancing enforcement” including locations of each
encounter and demographic details for people stopped, given summonses or
arrested.
The organization also wants the department to make public the guidance it’s providing officers on social distancing enforcement.
___
SIGN LANGUAGE INTERPRETER
A
federal judge has ordered Cuomo to include an American Sign Language
interpreter on the screen alongside him as he delivers his daily press
briefings.
U.S. District Judge Valerie Caproni issued the order
Monday as she considers a lawsuit filed by a disability rights group
that claims Cuomo is the only governor who has failed to do.
The
governor has argued that the state has provided “reasonable
accommodations” to deaf New Yorkers through a separate online ASL stream
and closed captioning.
But the lawsuit filed May 7 by Disability
Rights New York included several examples of deaf New Yorkers who lack
internet access or who don’t read or write in fluent English. Four
individuals named in the lawsuit said they could access Cuomo’s widely
watched briefings on television if he offered an additional
accommodation of including an interpreter in the frame of his main
stream.
___
SALES TAX DROP
New York’s cities and
counties saw a 24.4% drop in local sales tax collections in April
compared to April 2019, according to state Comptroller Thomas DiNapoli.
Local
governments are grappling with shortfalls as plummeting sales tax
collections have left them short about $327 million compared to last
year, DiNapoli said Tuesday.
New York City saw a 23.1% decline — or $141.8 million — in lost revenues in April.
“The
coronavirus has hurt household finances, and the April sales tax
figures show how deep it is cutting into municipal finances,” DiNapoli
said.
___
OTHER CORONAVIRUS DEVELOPMENTS
-New York is now investigating
about 100 cases of a syndrome in children that’s thought to be related
to the coronavirus. It affects blood vessels and organs and has symptoms
similar to Kawasaki disease and toxic shock. Three children in the
state have died.
- The shutdown on Broadway has been extended
again — until at least early September. Although an exact date for
performances to resume has yet to be determined, Broadway producers are now offering refunds and exchanges for tickets purchased for shows through Sept. 6.
- Two New England hospital systems tried the latest twist in internet matchmaking: online swap meets.
As the coronavirus pandemic stretches on, online platforms have popped
up to match hospitals that need masks, gowns, ventilators and even
doctors with those that have extras.
- Even as President Donald Trump urges getting people back to work and reopening the economy, an Associated Press analysis shows thousands of people are getting sick from COVID-19 on the job.
-
One is a Roman Catholic church in Queens; the other, a Lutheran church
in Manhattan. But the COVID-19 pandemic has united the two Hispanic
congregations in grief. Between them, they have lost more than 100 members to the coronavirus, and because of lockdown rules, they lack even the ability to mourn together in person.
___
Hill and Villeneuve reported from Albany, N.Y. Michael R. Sisak contributed from New York.
The government on Monday unsealed a wire fraud charge against a
University of Arkansas professor and NASA researcher with ties to the
Chinese government.
Simon Saw-Teong Ang allegedly failed to
disclose ties with the Chinese government and Chinese companies while
also being employed as a professor at the University of Arkansas and
accepting NASA research grant money.
A lawyer for Ang has not responded to an ABC News request for comment.
According
to court documents, "Ang had close ties with the Chinese government and
Chinese companies, and failed to disclose those ties when required to
do so in order to receive grant money from NASA."
Emails
in the court documents show that Ang had conversations with a
researcher in China about concealing his relationship to the Thousand
Talents Program, a Chinese run initiative aimed at increasing Chinese
presence around the world.
"Not many people here know I am [a
Thousand talents program scholar] but if this leaks out, my job here
will be in deep troubles," Ang wrote. "I have to be very careful or else
I may be out of my job from this university."
"Please keep this to yourself as I trust you," he wrote.
The
FBI was alerted to Ang’s activity after he was mentioned in a Chinese
news article highlighting some of the accomplishments of Thousand Talent
Program scholars.
Court documents say that Ang held positions in China while also being employed by the University of Arkansas.
This
is just the latest in a string of Department of Justice charges related
to ties to China. The Justice Department recently convicted and
sentenced a former Emory University professor on similar charges.
The
Justice Department and Department of Homeland Security also released
guidance that China is targeting COVID-19 related cyber research through
the cyber intrusions.
Trump Senate ally seeks China sanctions over COVID-19 probe
David Brunnstrom
FILE
PHOTO: U.S. Senator Lindsey Graham (R-SC) wears a face mask during a
break in a Senate Health Education Labor and Pensions Committee hearing
on the coronavirus disease (COVID-19) outbreak on Capitol Hill
By David Brunnstrom
WASHINGTON
(Reuters) - A leading U.S. Republican senator proposed legislation on
Tuesday that would authorize the U.S. president to impose far-reaching
sanctions on China if it fails to give a full account of events leading
to the outbreak of the novel coronavirus.
Senator Lindsey Graham, a
close ally of President Donald Trump, said he was convinced that had it
not been for "deception" by China's ruling Communist Party, the virus
would not be in the United States, where it has now killed more than
80,000 Americans.
Graham said China had refused to allow
investigators to study how the outbreak started and added in a
statement: "I’m convinced China will never cooperate with a serious
investigation unless they are made to do so."
Trump critics,
including some former officials, academics and columnists, have said
that while China has much to answer for, the U.S. administration appears
to be seeking to deflect attention from what they see as a slow U.S.
response to the crisis.
Graham said his "COVID-19 Accountability
Act" would require the president to make a certification to Congress
within 60 days that China had "provided a full and complete accounting
to any COVID-19 investigation led by the United States, its allies or
U.N. affiliate such as the World Health Organization."
It would
also require certification that China had closed all "wet markets" that
can expose humans to health risks, and released all Hong Kong
pro-democracy advocates arrested in post-pandemic crack-downs.
The
bill would authorize the president to impose a range of sanctions,
including asset freezes, travel bans and visa revocations, as well as
restrictions on loans to Chinese businesses by U.S. institutions and
banning Chinese firms from listing on U.S. exchanges.
The legislation was co-sponsored by eight other Republican senators.
China's
Washington embassy did not respond to a request for comment, but
Beijing has insisted it has been transparent about the outbreak, which
began in the Chinese city of Wuhan.
Trump and his Republican
backers have repeatedly accused Beijing of failing to alert the world to
the severity and scope of the outbreak, which has sparked a worldwide
economic contraction and threatened his November re-election chances.
Democratic
Senator Tim Kaine, whose party controls the House, said things
"definitely went wrong in China" but there was a need to look at the
full story and the Trump administration should not escape scrutiny.
"Let's
get the story out on the table first and see what everybody's part of
this problem was, to fix it going forward, and then we can decide about
accountability," he told an event hosted by Washington's Meridien
Center.
A Democratic House aide said China continued to hide the
facts about the pandemic and there should be a full-scale international
effort to account for what has happened.
But the source, who spoke
on condition of anonymity, charged that the U.S. State Department had
ignored multiple deadlines to share with Congress information on the
virus’ origins.
"If the administration wants Congress to act, they
should stop stonewalling and show us the ‘evidence’ they claim to
have," the aide said.
The U.S. national security adviser, Robert
O'Brien, and Larry Kudlow, the national economic adviser, warned on
Monday against investment of federal retirement dollars in Chinese firms
given "the possibility of future sanctions will result from the
culpable actions of the Chinese government" over the coronavirus.U.S.
Secretary of State Mike Pompeo has also hinted at future sanctions on
China for the devastation caused to the global economy and human life.
(Reporting
by David Brunnstrom; additional reporting by Alexandra Alper; Editing
by Bernadette Baum, Dan Grebler and Cynthia Osterman)
----------------
Business
White House Cuts Off Savings Fund’s Investment in China Stocks
Justin Sink and Jenny Leonard
(Bloomberg) -- The Trump administration moved
on Monday night to block investments in Chinese stocks by a government
retirement savings fund.
National Economic Council Director Larry
Kudlow and National Security Adviser Robert O’Brien made the
administration’s wishes known in a letter to Labor Secretary Eugene
Scalia, according to a person familiar with the matter.
Scalia
sent a letter to Michael Kennedy, the chairman of the Federal Retirement
Thrift Investment Board, telling him to “halt all steps” associated
with putting government employees’ money in a fund that includes stakes
in Chinese companies, according to a copy of the letter obtained by
Bloomberg News.
President Donald Trump has faulted China over the
spread of the coronavirus, and questions have arisen over how faithfully
the Beijing government will adhere to a recent trade agreement between
the two countries. Trump has mused about punishing China for the
outbreak, and the move to curtail retirement investments appears to be
the first tangible step.
The Thrift Savings Plan -- the federal
government’s retirement savings fund -- was scheduled to transfer
roughly $50 billion of its international fund to mirror an MSCI All
Country World Index, which captures emerging markets including China.
“There’s
a security angle here,” O’Brien said Tuesday in an interview on Fox
Business Network. He said about $5 billion of the fund would have been
invested in Chinese firms. “A number of the companies they were going to
be invested in were Chinese military companies or surveillance state
companies. We thought that was risky for U.S. national security, but we
also thought it was risky for the investors.”
O’Brien said the
administration did not want to potentially fund aircraft manufacturers
who do work for the Chinese military or surveillance firms that support
what he called “concentration camps” for Uighur Muslims, an oppressed
group in China. He also cited telecommunications firm ZTE Corp. as a
company the U.S. does not want to support. “So it just wasn’t a good
situation for us,” he said.
He downplayed the risk of Chinese
retaliation when asked whether the measure may dampen Chinese demand for
U.S. debt. “This is the safest place for anyone to put their money
including the Chinese, so I’m not too concerned about that issue,”
O’Brien said.
The Federal Retirement Thrift Investment Board
oversees the fund and made a decision in 2017 that the money should be
moved by mid-2020. Opponents of the transfer in recent weeks have
engaged in a last-minute effort to stop it.
In the letter, Scalia
said that O’Brien and Kudlow had “expressed grave concerns with the
planned investment on grounds of both investment risk and national
security.”
“As you know, the concerns expressed in this letter
have been voiced by both Republican and Democratic members of Congress,”
Scalia wrote in his letter to Kennedy.
The letter to Scalia was reported earlier by Fox Business Network.
(Updates with O’Brien interview starting in sixth paragraph.)
For more articles like this, please visit us at bloomberg.com
Subscribe now to stay ahead with the most trusted business news source.
The scenery of Yongxing Island in Sansha City, south China's Hainan Province. Photo: Xinhua
Following
approval of the State Council, the city of Sansha in South China's
Hainan Province has announced the establishment of two new districts to
administer waters in the South China Sea. Experts said this is normal
new city planning for better scientific management and to safeguard
territorial sovereignty, and should not be over-interpreted.
Xisha
District is set to administer the Xisha and Zhongsha islands and
surrounding waters with government located in Yongxing Island; Nansha
District has jurisdiction over the Nansha Islands and its waters with
government located in the Yongshu Isles.
The city of Sansha was
established on July 24, 2012 to manage the Xisha, Zhongsha and Nansha
islands, isles and waters. It is the city located at the most southern
point of China with the smallest land area and population, but has the
largest territory of any Chinese city. Sansha city has more than 280
islands, isles, submerged reefs and waters. Its land and water area is
about 2 million square kilometers.
"Eight years after China set
Sansha as a city-level administrative unit, it is now time to subdivide
it with different districts to further fulfill the responsibility of
safeguarding our national sovereignty," Zhang Junshe, a senior research
fellow at the People's Liberation Army Naval Military Studies Research
Institute, told the Global Times.
The new city planning will also
bring convenience to residents on the islands and fishermen's lives,
Zhang said, noting that the move should not be over-interpreted.
Song
Zhongping, a Chinese military expert and commentator, told the Global
Times that "Sansha has continued infrastructure construction since 2012.
As a city that administers the largest territory among Chinese cities,
it is also responsible for managing islands, isles and waters - work
that is complicated and sensitive. The newly established districts will
help detail the current administrative work in the area and build Sansha
into a better city."
Sansha will become a key tourist city in
China. The city's scientific and detailed management work will help
mobilize resources to develop tourism and energy resources, Song said.
China's
move is a legitimate one as the territory within the nine-dash line
historically belongs to China. Sansha's latest planning is in accordance
with international and domestic laws, Song said.
Chen
Xiangmiao, an assistant research fellow at the National Institute for
South China Sea Studies, told the Global Times that the establishment of
the Xisha and Nansha districts will improve the management of its
juridical area, including improving ecological protection and conducting
maritime humanitarian rescues.
New Zealand still supports Taiwan at WHO despite Chinese rebuke
WELLINGTON
(Reuters) - New Zealand's foreign minister on Tuesday said the country
has to stand up for itself after China warned its backing of Taiwan's
participation at the World Health Organization (WHO) could damage
bilateral ties.
Taiwan, with the strong support of the United
States, has stepped up its lobbying to be allowed to take part as an
observer at next week's World Health Assembly (WHA), the WHO's
decision-making body - a move which has angered China.
Taiwan is excluded from the WHO due to the objections of China, which views the island as one of its provinces.
Senior
ministers in New Zealand last week said Taiwan should be allowed to
join the WHO as an observer given its success in limiting the spread of
the novel coronavirus, drawing China's ire which asked the Pacific
country to "stop making wrong statements".
"We have got to stand
up for ourselves," Winston Peters, New Zealand's foreign minister, said
at a news conference when asked about China's response to New Zealand's
position on Taiwan.
"And true friendship is based on equality. It's based on the ability in this friendship to nevertheless disagree."
Peters said he did not think the issue would harm diplomatic ties with China, which is New Zealand's biggest trading partner.
Taiwan
has reported only 440 coronavirus cases and seven related deaths,
relatively low figures attributed to early and effective disease
prevention and control work.
Peters praised Taiwan's response to
COVID-19, the disease caused by the novel coronavirus, and said there
was a lot for other countries to learn from.
"New Zealand's position on Taiwan is about its tremendous success against COVID-19," Peters said.
When
asked about China's response later in the day, Prime Minister Jacinda
Ardern said New Zealand's position on Taiwan was only related to its
health response to COVID-19.
"We have always taken a 'One China' policy, and that continues to be the case," Ardern said.
Speaking
in Taipei, Taiwan Foreign Ministry spokeswoman Joanne Ou expressed
thanks for New Zealand's support, saying both countries were staunch
supporters of freedom, democracy and human rights and that Taiwan would
deepen ties with New Zealand.
Taiwan expresses regret at China's
threats against New Zealand, Ou said, adding the response from China's
foreign ministry was "hysterical".
Ties between neighbouring
Australia and China have frayed in recent months after Canberra called
for an international investigation into the origins and spread of the
coronavirus that was first reported in the Chinese city of Wuhan late
last year.
China has dismissed such a probe as groundless, saying the country has been open and transparent about the outbreak.
(Reporting
by Praveen Menon; Additional reporting by Ben Blanchard in Taipei;
Editing by Christopher Cushing & Simon Cameron-Moore)
Trump 'not interested' in reopening U.S.-China trade deal after report of Beijing discontent
Andrea Shalal and Ryan Woo
By Andrea Shalal and Ryan Woo
Trump 'not interested' in reopening U.S.-China trade deal after report of Beijing discontent
BEIJING/WASHINGTON
(Reuters) - U.S. President Donald Trump said on Monday he opposed
renegotiating the U.S.-China "Phase 1" trade deal after a Chinese
state-run newspaper reported some government advisers in Beijing were
urging fresh talks and possibly invalidating the agreement.
Trump,
who himself has considered abandoning the pact signed in January, told a
White House press briefing he wanted to see if Beijing lived up to the
deal to massively increase purchases of U.S. goods.
"No, not at
all. Not even a little bit," Trump said when asked if he would entertain
the idea of reworking Phase 1. "I'm not interested. We signed a deal. I
had heard that too, they'd like to reopen the trade talk, to make it a
better deal for them."
The Global Times tabloid reported on Monday
that unidentified advisers close to the talks have suggested that
Chinese officials revive the possibility of invalidating the trade pact
and negotiate a new one to tilt the scales more to the Chinese side.
The
Global Times is published by the People's Daily, the official newspaper
of China's ruling Communist Party. While not an official party
mouthpiece, the Global Times' views are believed at times to reflect
those of its leaders.
NEW SOYBEAN PURCHASES
Hours after the
report was published, Chinese importers on Monday bought at least four
cargoes, or about 240,000 tonnes, of U.S. soybeans on Monday for
shipment beginning in July, and additional sales are possible, two
traders familiar with the deals said on Monday.
The purchases were
the latest in a recent string by China, which U.S. officials say has
also begun implementing other parts of the trade deal regarding
intellectual property protections.
The U.S. Trade Representative's office did not respond to repeated queries on the Global Times article.
Under
the Phase 1 deal signed in January, Beijing pledged to buy at least
$200 billion in additional U.S. goods and services over two years while
Washington agreed to roll back tariffs in stages on Chinese goods.
Trump,
who has blamed China's early handling of the new coronavirus outbreak
in its central city of Wuhan for thousands of U.S. deaths and millions
of job losses, said last week he was "very torn" about whether to end
the Phase 1 trade deal. Those comments came just hours after top trade
officials from both countries pledged to press ahead with implementing
the agreement.
'TSUNAMI OF ANGER'
Rising U.S.-China tensions
over the coronavirus outbreak have cast the trade deal and proposed
talks on a Phase 2 deal into doubt.
The Trump administration
asserted there was evidence the new coronavirus came from a Wuhan
laboratory, an allegation that China has rejected. On Monday, a new
source of tension opened up, with reports that the administration is
planning to issue a warning that computer hackers tied to the Chinese
government are attempting to steal information from U.S. researchers.
U.S. intelligence and law enforcement officials did not immediately respond to requests for comment.
The
Global Times said malicious attacks by the United States have ignited a
"tsunami of anger" among Chinese trade insiders after China made
compromises in the Phase 1 pact.
"It's in fact in China's
interests to terminate the current Phase 1 deal," a trade adviser to the
Chinese government told the Global Times, citing the weakening U.S.
economy and upcoming U.S. presidential elections. "The U.S. now cannot
afford to restart the trade war with China if everything goes back to
the starting point."
Clete Willems, a former White House trade
adviser who took an active role in the U.S.-China negotiations, said
China had followed through on the majority of the structural provisions
in the Phase 1 deal, including new rules to protect intellectual
property.
"I don't think we're at the point where we should give
up on the deal. It has yielded positive results thus far," said Willems,
who is now with the Akin Gump law firm in Washington.
(Additional reporting by David Brunnstrom, writing by David Lawder, Editing by William Maclean and Richard Chang)
U.S. to Accuse China of Trying to Hack Vaccine Data, as Virus Redirects Cyberattacks
David E. Sanger and Nicole Perlroth
Chad Wolf,
acting secretary of Homeland Security, with President Donald Trump and
members of the Coronavirus task force, speaks during a press briefing at
the White House in Washington, on March 20, 2020. (Erin Schaff/The New
York Times)
WASHINGTON — The FBI and the Department of
Homeland Security are preparing to issue a warning that China’s most
skilled hackers and spies are working to steal American research in the
crash effort to develop vaccines and treatments for the coronavirus. The
efforts are part of a surge in cybertheft and attacks by nations
seeking advantage in the pandemic.
The warning comes as Israeli
officials accuse Iran of mounting an effort in late April to cripple
water supplies as Israelis were confined to their houses, though the
government has offered no evidence to back its claim. More than a dozen
countries have redeployed military and intelligence hackers to glean
whatever they can about other nations’ virus responses. Even U.S. allies
like South Korea and nations that do not typically stand out for their
cyber abilities, like Vietnam, have suddenly redirected their state-run
hackers to focus on virus-related information, according to private
security firms.
A draft of the forthcoming public warning, which
officials say is likely to be issued in the days to come, says China is
seeking “valuable intellectual property and public health data through
illicit means related to vaccines, treatments and testing.” It focuses
on cybertheft and action by “nontraditional actors,” a euphemism for
researchers and students the Trump administration says are being
activated to steal data from inside academic and private laboratories.
The
decision to issue a specific accusation against China’s state-run
hacking teams, current and former officials said, is part of a broader
deterrent strategy that also involves U.S. Cyber Command and the
National Security Agency. Under legal authorities that President Donald
Trump issued nearly two years ago, they have the power to bore deeply
into Chinese and other networks to mount proportional counterattacks.
This would be similar to their effort 18 months ago to strike at Russian
intelligence groups seeking to interfere in the 2018 midterm elections
and to put malware in the Russian power grid as a warning to Moscow for
its attacks on U.S. utilities.
But it is unclear exactly what the
U.S. has done, if anything, to send a similar shot across the bow to the
Chinese hacking groups, including those most closely tied to China’s
new Strategic Support Force, its equivalent of Cyber Command, the
Ministry of State Security and other intelligence units.
The
forthcoming warning is also the latest iteration of a series of efforts
by the Trump administration to blame China for being the source of the
pandemic and exploiting its aftermath.
Secretary of State Mike
Pompeo claimed this month that there was “enormous evidence” that the
virus had come from a Chinese lab before backing off to say it had come
from the “vicinity” of the lab in Wuhan. U.S. intelligence agencies say
they have reached no conclusion on the issue, but public evidence points
to a link between the outbreak’s origins at a market in Wuhan and
China’s illegal wildlife trafficking.
The State Department on
Friday described a Chinese Twitter campaign to push false narratives and
propaganda about the virus. Twitter executives have pushed back on the
agency, noting that some of the Twitter accounts that the State
Department cited were actually critical of Chinese state narratives.
But it is the search for vaccines that has been a particular focus, federal officials say.
“China’s long history of bad behavior in cyberspace is well documented, so it
shouldn’t surprise anyone they are going after the critical
organizations involved in the nation’s response to the COVID-19
pandemic,” said Christopher Krebs, director of the Cybersecurity and
Infrastructure Security Agency. He added that the agency would “defend
our interests aggressively."
Last week, the U.S. and Britain
issued a joint warning that “health care bodies, pharmaceutical
companies, academia, medical research organizations and local
governments” had been targeted. While it named no specific countries —
or targets — the wording was the kind used to describe the most active
cyberoperators: Russia, China, Iran and North Korea.
The hunt for
spies seeking intellectual property has also accelerated. For months,
FBI officials have been visiting major universities and presenting
largely unclassified briefings about their vulnerabilities.
But
some of those academic leaders and student groups have pushed back,
comparing the rising paranoia about stolen research to the worst days of
the Red Scare era. They particularly objected when Sen. Tom Cotton,
R-Ark., declared last month on Fox News that it was “a scandal” that the
U.S. had “trained so many of the Chinese Communist Party’s brightest
minds to go back to China.”
Security experts say that while there
is a surge of attacks by Chinese hackers seeking an edge in the race for
a COVID-19 vaccine, or even effective treatment, the Chinese are hardly
alone in seeking to exploit the virus.
Iranian hackers were also
caught trying to get inside Gilead Sciences, the maker of remdesivir,
the therapeutic drug approved 10 days ago by the Food and Drug
Administration for clinical trials. Government officials and Gilead have
refused to say if any element of the attack, which was first reported
by Reuters, was successful.
Israel’s security advisers met last
week for a classified session on a cyberattack on April 24 and 25, which
authorities were calling an attempt to cut off water supplies to rural
parts of the country. The Israeli news media has widely blamed the
attack on Iran, though they have offered no evidence in public. The
effort was detected fairly quickly and did no damage, authorities said.
The
rush to attribute the attack to Iran could be faulty. When a Saudi
petrochemical plant was similarly attacked in 2017, Iran was presumed as
the source of the effort to cause an industrial accident. It turned out
to be coordinated from a Russian scientific institute.
The
coronavirus has created whole new classes of targets. In recent weeks,
Vietnamese hackers have directed their campaigns against Chinese
government officials running point on the virus, according to
cybersecurity experts.
South Korean hackers have taken aim at the
World Health Organization and officials in North Korea, Japan and the
U.S. The attacks appeared to be attempts to compromise email accounts,
most likely as part of a broad effort to gather intelligence on virus
containment and treatment, according to two security experts for private
firms who said they were not authorized to speak publicly. If so, the
moves suggest that even allies are suspicious of official government
accounting of cases and deaths around the world.
In interviews
with a dozen current and former government officials and cybersecurity
experts over the past month, many described a “free-for-all” that has
spread even to countries with only rudimentary cyber ability.
“This
is a global pandemic, but unfortunately countries are not treating it
as a global problem,” said Justin Fier, a former national security
intelligence analyst who is now the director of cyberintelligence at
Darktrace, a cybersecurity firm. “Everyone is conducting widespread
intelligence gathering — on pharmaceutical research, PPE orders,
response — to see who is making progress.”
The frequency of cyberattacks and the spectrum of targets are “astronomical, off the charts,” Fier said.
Even
before the pandemic, the U.S. was becoming far more aggressive in
pursuing cases that involved suspected Chinese efforts to steal
intellectual property related to biological research. The Justice
Department announced in January that it had charged Charles M. Lieber,
the chairman of Harvard’s Department of Chemistry and Chemical Biology,
with making false statements related to his participation in China’s
Thousand Talents program to recruit scientific talent to the country.
But
Harvard also has a joint study program underway with a Chinese
institute on coronavirus treatments and vaccines. And researchers have
said that international cooperation will be vital if there is hope for a
global vaccine, putting the expected national competitions to be first
in tension with the need for a cooperative effort.
At Google,
security researchers identified more than a dozen nation-state hacking
groups using virus-related emails to break into corporate networks,
including some sent to U.S. government employees. Google did not
identify the specific countries involved, but over the past eight weeks,
several nation states — some familiar, like Iran and China, and others
not so familiar, like Vietnam and South Korea — have taken advantage of
softer security as millions of workers have suddenly been forced to work
from home.
“The nature of the vulnerabilities and attacks has
altered pretty radically with shelter-in-place,” said Casey Ellis,
founder of Bugcrowd, a security firm. In some cases, Ellis said, hackers
were just “kicking a baby,” hacking hospitals that were already
overstretched and simply lacked the resources to prioritize
cybersecurity.
In other cases, they were targeting the tools that
workers used to remotely access internal networks and encrypted virtual
private networks, or VPNs, that allow employees to tunnel into corporate
networks, to gain access to proprietary information.
“Governments
that might otherwise be reluctant to target international public health
organizations, hospitals and commercial organizations are crossing that
line because there is such a thirst for knowledge and information,”
said John Hultquist, director of intelligence analysis at FireEye, a
cybersecurity firm.
Even Nigerian cybercriminals are getting in on
the game: They recently started targeting businesses with
coronavirus-themed email attacks to try to convince targets to wire them
money, or to steal personal data that could fetch money on the dark
web.
“These are not complex, but clever social engineering is
getting them through,” said Jen Miller-Osborn, deputy director of threat
intelligence at Palo Alto Networks, a cybersecurity company. Because
Nigerian hackers are less skilled, they lack the “opsec,” or operational
security, to cover their tracks.
U.S. next week to start purchasing $3 billion worth of farm goods: Trump
WASHINGTON (Reuters) - President Donald Trump
on Saturday said the United States will next week begin purchasing $3
billion worth of dairy, meat and produce from farmers as unemployment
soars and people are forced to food lines.
"Starting early next
week, at my order, the USA will be purchasing, from our Farmers,
Ranchers & Specialty Crop Growers, 3 Billion Dollars worth of Dairy,
Meat & Produce for Food Lines & Kitchens," Trump wrote in a
post on Twitter.
It was unclear whether his statement referred to a
$19 billion relief plan announced by the U.S. Department of Agriculture
in April. The agency said it would buy $3 billion worth of agricultural
commodities as part of that program.
The White House did not respond immediately to a request for comment.
The
U.S. economy lost a staggering 20.5 million jobs in April and the
unemployment rate rose to 14.7%, government data showed on Friday.
Food
banks have been running short on staples as hunger soars. The
coronavirus pandemic has disrupted supply chains, with farmers saying
they have had to destroy their produce and euthanize pigs because
processing facilities have shuttered.
(Reporting by Makini Brice and Chris Prentice; Editing by Chris Reese and Dan Grebler)
--------------------
Associated Press
Trump administration tightens visas for Chinese reporters
WASHINGTON (AP) — The Trump administration is tightening visa guidelines for Chinese journalists in response to the treatment of U.S. journalists in China, as tensions flare between the two nations over the coronavirus.
The
Department of Homeland Security has issued new regulations, set to take
effect Monday, that will limit visas for Chinese reporters to 90 days.
There is a potential to extend the visa. Those visas previously didn't
have to be extended unless the employee switched companies, and they
were considered open-ended.
The regulations don't apply to
journalists from Hong Kong or Macau, two territories considered
semiautonomous, according to the regulations published Friday in the
Federal Register.
The agency noted what it called China’s “suppression of independent journalism , " including “an increasing lack of transparency."
It
was the latest strike in a tit-for-tat over media rights between the
countries. In March, China said it would revoke credentials of all
American journalists at three major U.S. news organizations, in effect
expelling them from the country, in response to U.S. restrictions on Chinese state-controlled media.
Tensions
between the two nations have only increased in recent months as leaders
trade barbs over handling of the pandemic that has crippled economies
worldwide and killed more than 275,000 people, according to a tally kept
by Johns Hopkins University.
President Donald Trump has said
the Chinese government's response was slow and inadequate. His
administration has lashed out at its geopolitical foe and critical U.S.
trade partner, pushing beyond the bounds of established evidence.
Trump and allies repeat and express confidence in an unsubstantiated theory
linking the origin of the outbreak to a possible accident at a Chinese
virology laboratory. U.S. officials say they are still exploring the
subject and describe the evidence as purely circumstantial. But Trump,
aides say, has embraced the notion to further highlight China’s lack of
transparency.
U.S. officials also believe China covered up the
extent of the coronavirus outbreak — and how contagious the disease is —
to stock up on medical supplies needed to respond to it, according to
U.S. intelligence documents.
China strongly rejects the U.S. version of events.
China’s
official Global Times newspaper has said leaders were making groundless
accusations against Beijing by suggesting the coronavirus was released
from a Chinese laboratory.
The populist tabloid published by the
ruling Communist Party mouthpiece People’s Daily said the claims were a
politically motivated attempt to preserve Trump’s presidency and divert
attention from the U.S. administration’s own failures in dealing with
the outbreak.
While the virus is believed to have originated in
the central Chinese city of Wuhan, most scientists say it was most
likely transmitted from bats to humans via an intermediary animal such
as the armadillo-like pangolin. That has placed the focus on a wet
market in the city where wildlife was sold for food.
Chinese Foreign Ministry
spokesman Geng Shuang speaks during a daily briefing at the Ministry of
Foreign Affairs office in Beijing, Wednesday, March 18, 2020. At least
13 American journalists stand to be expelled from China in retaliation
for a new limit imposed by the Trump administration on visas for Chinese
state-owned media operating in the U.S. (AP Photo/Andy Wong)
China 'shocked' by U.S. reversal on U.N. coronavirus action: diplomat
Michelle Nichols
By Michelle Nichols
NEW
YORK (Reuters) - China and the United States both supported a draft
United Nations Security Council resolution confronting the coronavirus
pandemic on Thursday and it was "shocking and regretful" that Washington
changed its mind on Friday, a Chinese diplomat said.
A U.S. diplomat refuted the Chinese comment, saying there was no U.S. agreement on the text.
For
more than six weeks the 15-member council has been trying to agree on a
text that ultimately aims to back a March 23 call by U.N. chief Antonio
Guterres for a ceasefire in global conflicts so the world can focus on
the pandemic.
But talks have been stymied by a stand-off between
China and the United States over whether to mention the World Health
Organization. The United States does not want a reference, China has
insisted it be included, while some other members see the mention - or
not - of WHO as a marginal issue, diplomats said.
Washington has
halted funding for the WHO, a U.N. agency, after President Donald Trump
accused it of being "China-centric" and promoting China's
"disinformation" about the outbreak, assertions the WHO denies.
It
appeared the Security Council had reached a compromise late on
Thursday, diplomats said and according to the latest version of a
French- and Tunisian drafted-resolution.
Instead of naming the
WHO, the draft referenced "specialized health agencies." The WHO is the
only such agency. But the United States rejected that language on
Friday, diplomats said, because it was an obvious reference to the
Geneva-based WHO.
"The United States had agreed to the compromise
text and it's shocking and regretful that the U.S. changed its
position," said the Chinese diplomat, speaking on condition of
anonymity, on Saturday, adding that China supported the draft.
The
U.S. diplomat, also speaking on condition of anonymity, said there was
no U.S. agreement on the text, which the U.S. mission to the United
Nations had sent to Washington for review on Thursday.
Diplomats
said that during negotiations both China and the United States had
raised the prospect of a veto on the issue of whether WHO is mentioned
or not. A resolution needs nine votes in favor and no vetoes by France,
Russia, Britain, the United States or China to pass.
A State
Department spokesperson said on Friday the United States had worked
constructively and accused China of repeatedly blocking compromises
during negotiations.
While the Security Council - charged with
maintaining international peace and security - cannot do much to deal
with the coronavirus itself, diplomats and analysts say it could have
projected global unity by backing Guterres' ceasefire call.
French
U.N. Ambassador Nicolas de Rivière on Friday said "we are still trying
to achieve a positive result and trying to see if there is a possible
compromise."
(Reporting by Michelle Nichols; Editing by Chris Reese)
-----
CBS News
2020 Daily Trail Markers: Every California voter to be mailed a ballot for November election
Caitlin Conant
California Governor Gavin Newsom signed an
executive order on Friday to ensure every registered voter in the state
is automatically mailed a ballot ahead of the November general election.
"Mail-in-ballot is important," Newsom said. But he added that the executive order "is not an exclusive substitute to physical locations." Secretary of State Alex Padilla, who is pushing for a 50-state vote-by-mail plan
ahead of the general election, said this order makes California "the
first state in the nation to respond to COVID-19 by taking this action
of sending every voter a ballot in the mail in advance of the November
election." Padilla said the state will "not force voters to choose
between protecting their health and exercising their right to vote."
Padilla also said postage for those mail-in ballots will be prepaid, so
voters don't have to scramble last minute for a stamp. "I think that is
huge," Padilla said. "There is no safer, physically healthier way to
exercise your right to vote than from the safety and convenience of your
own home," he added. Padilla also insisted this "is not a vote-by-mail
only election."
But the Republican National Committee issued a
statement highlighting what it described as voter fraud that could
result from vote-by-mail. "While we have always supported absentee
voting, California is a case study in why automatically sending this
many ballots is a problem," the RNC statement said. "Just last year, a
court found that L.A. county had 1.5 million ineligible voters on their
registration lists, meaning there were 112% more registered voters than
adults living in the county. We are weighing our legal options to ensure
the integrity of the election." Trump campaign communications director
Tim Murtaugh made a similar argument, calling it a "thinly-veiled
political tactic" by Newsom to "undermine election security." "There's a
vast difference between people voting absentee by mail because they
can't be at the polls on Election Day versus mailing everyone a ballot,"
Murtaugh said. "Sending everyone a ballot - even those who didn't
request one - is a wide open opportunity for fraud."
CBS News
campaign reporter Musadiq Bidar reports local counties have until the
end of this month to provide the state with clarity on their plans for
in-person voting requirements. Newsom said if those plans are not in by
May 30, a second executive order might be needed to resolve issues.
California already allows vote-by mail but voters have to specifically
make a request for the ballot. This executive order makes it so that
every voter is automatically mailed a ballot without having to make that
request.
During the March 3, 2020, presidential primary, more
than 75% of California voters received a vote-by-mail ballot. Under this
executive order every registered voter who is currently living in
California will receive a ballot 29 days prior to Election Day. Military
and voters living abroad will be mailed their ballots 45 days before
Election Day. Padilla is now urging voters to make sure their
registration information is up to date.
FROM THE CANDIDATES
JOE BIDEN
On
Friday afternoon, Joe Biden delivered an "economic address" responding
to the newest unemployment stats via the progressive news platform
NowThis. He started by wearing a face mask,
seemingly a symbolic gesture as he was inside his Delaware home, CBS
News campaign reporter Bo Erickson reports. At the top of the speech,
Biden proceeded to take off the mask off and criticized President
Trump's handling of both the public health and economic response to the
pandemic. Biden said the economy is "all made worse because it didn't
have to be this way. Donald Trump utterly failed to prepare us for this
pandemic and delayed taking the necessary steps to safeguard us from the
near worse-case economic scenario we are now living." Biden also
inserted some barbs toward Mr. Trump, saying that after the pandemic,
the economy will need to work for everyone and ensure "everyone gets a
fair shot, not just the Mar-a-Lago crowd." Biden also said
"Trump-onomics" means "no strings" and "no oversight" during the
pandemic financial assistance. The presumptive Democratic nominee said
he would be releasing in a few weeks a full plan to revive the economy,
and on Friday, he repeated stump speech objectives about the middle
class being the "backbone of America."
PRESIDENT TRUMP
Vice President Mike Pence's press secretary Katie Miller tested positive
for the coronavirus on Friday morning, just as the vice president was
getting ready to fly to Des Moines, Iowa. Air Force Two was delayed an
hour, according to pool reports, and six other staffers were asked to
deplane and get tested out of an abundance of caution. Miller was not
initially identified as the staffer but shortly after the news broke,
Mr. Trump told reporters during a meeting with Republican members of
Congress that "a young woman, Katie," tested positive. "It is a press
person," the president added. Soon after, CBS News confirmed Katie
Miller, press secretary to the vice president, and wife of White House
adviser Stephen Miller, as the staffer in question. CBS News campaign
reporter Musadiq Bidar says this leads to the possibility that the
entire West Wing of the White House has now been directly or indirectly
exposed to the coronavirus. Mr. Trump said "she hasn't come into contact
with me," but added that she "spent time with the vice president."
Earlier in the day, a senior administration official told pool reporters
"the person was not on the plane and not scheduled to be on the trip"
to Des Moines. According to the print pool reports, the senior
administration official said "the vice president and the president have
not had contact with this person recently." The official added that
about 10 people in Pence's circle are tested regularly. In Iowa, Pence
met with faith leaders to encourage churches to reopen responsibly.
Pence told faith leaders in Des Moines he's "grateful" they are
"thoughtfully and carefully" stepping back into the exercise of beliefs
on the basis of "faith and not fear." The vice president also held a
roundtable on securing the food supply with Hy-Vee supermarket
employees.
Mr. Trump told reporters during a GOP Conference Friday
he thinks COVID-19 will "go away" without a vaccine. "I feel about
vaccines like I feel about tests," the president said. "This is going to
go away without a vaccine. It's going to go away and we're not going to
see it hopefully after a period of time. You may have some flare-ups, I
guess." Trump campaign officials met at the White House with the
president on Thursday ahead of an eight-figure ad blitz targeting Biden,
the presumptive Democratic nominee. Senior campaign officials confirm
to CBS News campaign reporter Nicole Sganga the Trump campaign is
exploring ways for the president to return to the campaign trail as
states reopen amid the coronavirus pandemic. No campaign events have
been formally announced. Mr. Trump has made clear he misses large rallies
and hopes to return to the trail ahead of the November election,
telling Fox News on Sunday, "I would hope that within maybe the last
couple of months, we'll be able to do rallies in various states." Trump
campaign manager Brad Parscale announced on Twtter
that new campaign branded masks will be available to supporters soon.
On Friday, Mr. Trump said he does not know if a sexual allegation made
against Biden is true. "That's a battle he has to fight," Mr. Trump told
Fox News. "I've had many false accusations made. I can tell you that
many – and maybe it is a false accusation, frankly, I hope it is for his
sake."
Mr. Trump said Friday he has seen the tape of Ahmaud Arbery,
a 25-year-old black man who was shot while jogging in Brunswick,
Georgia. The Georgia Bureau of Investigation arrested a father and son
on Thursday, charging them with Arbery's murder and aggravated assault.
Mr. Trump called the tape "heartbreaking," adding that he has seen
pictures of Arbery. "You know, my heart goes out to the parents and the
family and friends," Mr. Trump said. "Yet we have to take it – law
enforcement is going to look at it and they have a good governor in the
state." The president did not indicate federal law enforcement are
involved in the case at this time.
AD WARS
PAC ATTACK
The
pro-Biden Super PAC Unite the Country launched a new ad today called
"Deserve." CBS News political unit associate producer Sarah Ewall-Wice
says it kicked off their $10 million investment ahead of the Democratic
National Convention that is scheduled to take place in Milwaukee in
August. In the one-minute spot, Biden's voice can be heard under a
montage of old family pictures recalling how when he was a kid, his dad
had to tell him he would have to leave the family in Pennsylvania to
find work in Delaware. Biden has shared many times on the campaign trail
the story of his dad losing his job. "For the rest of our life, my dad
never failed to remind us that a job is about a lot more than a
paycheck. It's about your dignity. It's about respect. It's about your
place in the community. It's about being able to look your child in the
eye and say, 'honey, it's going to be ok,' and know it's true," Biden
can be heard saying. The ad also highlights Biden's role in leading the
2009 Recovery Act. According to Kantar Media tracking, Unite the Country
has spent more than $10.5 million on ads since mid-December through
late April.
CONGRESSIONAL COVERAGE
IN THE HOUSE
A poll
by the Democratic Congressional Campaign Committee in battleground
districts showed more approval for how House Democrats have been
handling the pandemic reports CBS News political unit broadcast
associate Aaron Navarro. In the internal poll, for districts with
incumbent Democrats 45% of respondents said they approve of the job of
their Member of Congress, 25% disapprove and 30% didn't know enough to
give a rating. The poll was conducted in 41 districts Trump won in 2016
and 16 districts Clinton won, where the battle for the House in November
could play out.
The poll also gauged what issues and messages
mattered most to voters, and found that the message of Republicans
trying to take away healthcare resonated the most. Earlier this week,
Mr. Trump said during a briefing that they want to "terminate health
care under Obamacare." The Supreme Court is set to hear a case led by
Republican states this fall on whether to repeal parts or all of the
Affordable Care Act. The DCCC poll found that 62% of respondents in
districts with Republican incumbents had raised doubts about their
lawmaker's handling of COVID-19, due to the ongoing battle against the
ACA.
STATE-BY-STATE
ARIZONA
Years before Biden was the
Democratic Party's presumptive nominee and Mark Kelly was the
best-funded Senate candidate in the country, Republicans say they were
already ramping up their operation to defend Arizona. The state is now a key battleground
where Democrats, citing promising polls and a recent Senate victory,
hope to score a win in a state that last elected a Democrat to the White
House nearly three decades ago. Arizona Democrats claim they are
planning their largest ever ground operation this cycle. But Mr. Trump's
team already has more than 30 staff on the ground, with thousands more
Arizonans trained through their volunteer program. "The RNC understands,
and the president understands, that Arizona is a top priority state and
the resources are following," Greg Safsten, executive director of
Arizona's Republican Party, told CBS News campaign reporter Alex Tin
this week as Mr. Trump made his second visit to the state in under three months.
NEVADA
Clark
County, which includes Las Vegas and is by far Nevada's most populous
county, announced changes to expand access to their upcoming primary.
This led Democrats to declare victory and abandon their motion against the Nevada Secretary of State over the June contest. But now Republicans have accused them of a "power grab" and a "shady deal" and a GOP official told the Las Vegas Review Journal
that they could sue the county "into oblivion if we have to" over the
changes. "Americans deserve to have confidence in their elections, and
we will not stand idly by while Democrats try to sue their way to
victory in November," GOP Chairwoman Ronna McDaniel said in a statement.
The threat came as Republicans have touted doubling their litigation
budget to $20 million, waging court battles over a raft of
coronavirus-related election changes around the country. "Republican
threats will never break our commitment to fighting on behalf of Nevada
voters," Molly Forgey, spokesperson for the Nevada State Democratic
party, tells CBS News campaign reporter Alex Tin in a statement. Coronavirus in Navajo Nation The search for the "world's greatest mom" 2 Americans charged in plot to overthrow Venezuelan leader
Residents wearing masks against the coronavirus walk past
lantern sculptures at a park in Wuhan in central China's Hubei province on
Thursday, April 9, 2020. Chinese authorities ended the lockdown of Wuhan on
Wednesday, allowing people to move about and leave the city for the first time
in 76 days. (AP Photo/Ng Han Guan)
WASHINGTON (AP) — The White House on Friday launched an
unusual attack on the congressionally funded Voice of America, the U.S.
broadcaster that for decades has provided independent news reporting around the
world.
In a broadside directed against VOA’s coverage of the
pandemic and China on Friday, an official White House publication accused it of
using taxpayer money “to speak for authoritarian regimes” because it covered
the lifting of the lockdown in the Chinese city of Wuhan, where the new
coronavirus first emerged. VOA promptly fired back, defending its coverage.
“Voice of America spends your money to speak for
authoritarian regimes,” the White House said in its “1600 Daily” email summary
of news and events. It said VOA's roughly $200 million annual budget should be
spent on its mission to “tell America’s story” and “present the policies of the
United States clearly and effectively” to global audiences.
But, citing a VOA report from earlier this week on the
lifting of travel restrictions and easing of the lockdown in Wuhan, the White
House said that “VOA too often speaks for America’s adversaries — not its
citizens.” It noted that VOA had also recently pointed out comments by Iran's
foreign minister critical of the U.S.
Friday’s attack followed another barb directed at VOA on
Thursday by White House social media director Dan Scavino, who branded VOA a
“disgrace” in a tweet.
VOA fired back at both attacks, responding to Scavino on
Twitter and defending its coverage as unbiased. It noted that it is required by
law to present all sides of an issue.
“One of the big differences between publicly-funded
independent media, like the Voice of America, and state-controlled media is
that we are free to show all sides of an issue and are actually mandated to do
so by law as stated in the VOA Charter,” director Amanda Bennett said in a
lengthy statement that included links to numerous VOA stories highlighting
shortcomings in China's response to the virus.
Bennett noted that VOA, along with several other U.S. news
outlets, has been effectively barred from working in China but that it continues
to report and broadcast news from inside the country. VOA is run by the U.S.
Agency for Global Media, which also oversees other government-funded
broadcasters like Radio Free Europe/Radio Liberty and Radio Free Asia.