Archive for ‘Trump administration’

20/05/2020

Taiwan president rejects Beijing rule; China says ‘reunification’ inevitable

TAIPEI (Reuters) – Taiwan cannot accept becoming part of China under its “one country, two systems” offer of autonomy , President Tsai Ing-wen said on Wednesday, strongly rejecting China’s sovereignty claims and likely setting the stage for an ever worsening of ties.

China responded that “reunification” was inevitable and that it would never tolerate Taiwan’s independence.

In a speech after being sworn in for her second and final term in office, Tsai said relations between Taiwan and China had reached an historical turning point.

“Both sides have a duty to find a way to coexist over the long term and prevent the intensification of antagonism and differences,” she said.

Tsai and her Democratic Progressive Party won January’s presidential and parliamentary elections by a landslide, vowing to stand up to China, which claims Taiwan as its own and says it would be brought under Beijing’s control by force if needed.

“Here, I want to reiterate the words ‘peace, parity, democracy, and dialogue’. We will not accept the Beijing authorities’ use of ‘one country, two systems’ to downgrade Taiwan and undermine the cross-strait status quo. We stand fast by this principle,” Tsai said.

China uses the “one country, two systems” policy, which is supposed to guarantee a high degree of autonomy, to run the former British colony of Hong Kong, which returned to Chinese rule in 1997. It has offered it to Taiwan, though all major Taiwanese parties have rejected it.

China’s Taiwan Affairs Office, responding to Tsai, said Beijing would stick to “one country, two systems” – a central tenet of Chinese President Xi Jinping’s Taiwan policy – and “not leave any space for Taiwan independence separatist activities”.

“Reunification is a historical inevitability of the great rejuvenation of the Chinese nation,” it said. “We have the firm will, full confidence, and sufficient ability to defend national sovereignty and territorial integrity.”

China views Tsai as a separatist bent on formal independence for Taiwan. Tsai says Taiwan is an independent state called the Republic of China, its official name, and does not want to be part of the People’s Republic of China governed by Beijing.

TAIWAN OPEN TO DIALOGUE

China has stepped up its military drills near Taiwan since Tsai’s re-election, flying fighter jets into the island’s air space and sailing warships around Taiwan.

Tsai said Taiwan has made the greatest effort to maintain peace and stability in the narrow Taiwan Strait that separates the democratic island from its autocratic neighbour China.

“We will continue these efforts, and we are willing to engage in dialogue with China and make more concrete contributions to regional security,” she added, speaking in the garden of the old Japanese governor’s house in Taipei, in front of a socially-distanced audience of officials and diplomats.

Taiwan has become a rising source of friction between China and the United States, with the Trump administration strongly backing Taiwan even in the absence of formal diplomatic ties.

U.S. Secretary of State Mike Pompeo sent his congratulations to Tsai on Tuesday, praising her “courage and vision in leading Taiwan’s vibrant democracy”, in a rare high-level message from Washington direct to Taiwan’s government.

China’s Foreign Ministry condemned Pompeo’s remarks, and said the government would take “necessary countermeasures”, though did not elaborate.

China cut off a formal talks mechanism with Taiwan in 2016 after Tsai first won election.

Yao Chia-wen, a senior adviser to Tsai, told Reuters the chance of talks with China were small given ongoing tensions.

“We are ready to engage with them any time, but China is unlikely to make concessions to Taiwan,” he said. “In the next four years there’s little chance for the cross-strait relationship to improve.”

Source: Reuters

30/04/2020

Exclusive: Trump says China wants him to lose his bid for re-election

WASHINGTON (Reuters) – President Donald Trump said on Wednesday he believes China’s handling of the coronavirus is proof that Beijing “will do anything they can” to make him lose his re-election bid in November.

In an interview with Reuters in the Oval Office, Trump talked tough on China and said he was looking at different options in terms of consequences for Beijing over the virus. “I can do a lot,” he said.

Trump has been heaping blame on China for a global pandemic that has killed at least 60,000 people in the United States according to a Reuters tally, and thrown the U.S. economy into a deep recession, putting in jeopardy his hopes for another four-year term.

The Republican president, often accused of not acting early enough to prepare the United States for the spread of the virus, said he believed China should have been more active in letting the world know about the coronavirus much sooner.

Asked whether he was considering the use of tariffs or even debt write-offs for China, Trump would not offer specifics. “There are many things I can do,” he said. “We’re looking for what happened.”

“China will do anything they can to have me lose this race,” said Trump. He said he believes Beijing wants his Democratic opponent, Joe Biden, to win the race to ease the pressure Trump has placed on China over trade and other issues.

“They’re constantly using public relations to try to make it like they’re innocent parties,” he said of Chinese officials.

He said the trade deal that he concluded with Chinese President Xi Jinping aimed at reducing chronic U.S. trade deficits with China had been “upset very badly” by the economic fallout from the virus.

A senior Trump administration official, speaking on condition of anonymity, said on Wednesday that an informal “truce” in the war of words that Trump and Xi essentially agreed to in a phone call in late March now appeared to be over.

The two leaders had promised that their governments would do everything possible to cooperate to contain the coronavirus. In recent days, Washington and Beijing have traded increasingly bitter recriminations over the origin of the virus and the response to it.

However, Trump and his top aides, while stepping up their anti-China rhetoric, have stopped short of directly criticizing Xi, who the U.S. president has repeatedly called his “friend.”

Trump also said South Korea has agreed to pay the United States more money for a defense cooperation agreement but would not be drawn out on how much.

“We can make a deal. They want to make a deal,” Trump said. “They’ve agreed to pay a lot of money. They’re paying a lot more money than they did when I got here” in January 2017.

The United States stations roughly 28,500 troops in South Korea, a legacy of the 1950-53 Korean War that ended in an armistice, rather than a peace treaty.

Trump is leading a triage effort to try to keep the U.S. economy afloat through stimulus payments to individuals and companies while nudging state governors to carefully reopen their states as new infections decline.

Trump sounded wistful about the strong economy that he had enjoyed compared with now, when millions of people have lost their jobs and GDP is faltering.

“We were rocking before this happened. We had the greatest economy in history,” he said.

He said he is happy with the way many governors are operating under the strain of the virus but said some need to improve. He would not name names.

Trump’s handling of the virus has come under scrutiny. Forty-three percent of Americans approved of Trump’s handling of the coronavirus, according to the Reuters/Ipsos poll from April 27-28.

But there was some good coronavirus news, as Gilead Sciences Inc said its experimental antiviral drug remdesivir was showing progress in treating virus victims.

Trump has also seeking an accelerated timetable on development of a vaccine.

“I think things are moving along very nicely,” he said.

At the end of the half-hour interview, Trump offered lighthearted remarks about a newly released Navy video purportedly showing an unidentified flying object.

“I just wonder if it’s real,” he said. “That’s a hell of a video.”

Source: Reuters

29/04/2020

Exclusive: Amazon turns to Chinese firm on U.S. blacklist to meet thermal camera needs

NEW YORK/SAN FRANCISCO (Reuters) – Amazon.com Inc (AMZN.O) has bought cameras to take temperatures of workers during the coronavirus pandemic from a firm the United States blacklisted over allegations it helped China detain and monitor the Uighurs and other Muslim minorities, three people familiar with the matter told Reuters.

China’s Zhejiang Dahua Technology Co Ltd (002236.SZ) shipped 1,500 cameras to Amazon this month in a deal valued close to $10 million, one of the people said. At least 500 systems from Dahua – the blacklisted firm – are for Amazon’s use in the United States, another person said.

The Amazon procurement, which has not been previously reported, is legal because the rules control U.S. government contract awards and exports to blacklisted firms, but they do not stop sales to the private sector.

However, the United States “considers that transactions of any nature with listed entities carry a ‘red flag’ and recommends that U.S. companies proceed with caution,” according to the Bureau of Industry and Security’s website. Dahua has disputed the designation.

The deal comes as the U.S. Food and Drug Administration warned of a shortage of temperature-reading devices and said it wouldn’t halt certain pandemic uses of thermal cameras that lack the agency’s regulatory approval. Top U.S.-based maker FLIR Systems Inc (FLIR.O) has faced an up to weeks-long order backlog, forcing it to prioritize products for hospitals and other critical facilities.

Amazon declined to confirm its purchase from Dahua, but said its hardware complied with national, state and local law, and its temperature checks were to “support the health and safety of our employees, who continue to provide a critical service in our communities.”

The company added it was implementing thermal imagers from “multiple” manufacturers, which it declined to name. These vendors include Infrared Cameras Inc, which Reuters previously reported, and FLIR, according to employees at Amazon-owned Whole Foods who saw the deployment. FLIR declined to comment on its customers.

Dahua, one of the biggest surveillance camera manufacturers globally, said it does not discuss customer engagements and it adheres to applicable laws. Dahua is committed “to mitigate the spread of the COVID-19” through technology that detects “abnormal elevated skin temperature — with high accuracy,” it said in a statement.

The U.S. Department of Commerce, which maintains the blacklist, declined comment. The FDA said it would use discretion when enforcing regulations during the public health crisis as long as thermal systems lacking compliance posed no “undue risk” and secondary evaluations confirmed fevers.

Dahua’s thermal cameras have been used in hospitals, airports, train stations, government offices and factories during the pandemic. International Business Machines Corp (IBM.N) placed an order for 100 units, and the automaker Chrysler placed an order for 10, one of the sources said. In addition to selling thermal technology, Dahua makes white-label security cameras resold under dozens of other brands such as Honeywell, according to research and reporting firm IPVM.

Honeywell said some but not all its cameras are manufactured by Dahua, and it holds products to its cybersecurity and compliance standards. IBM and Chrysler’s parent Fiat Chrysler Automobiles NV (FCHA.MI) did not comment.

The Trump Administration added Dahua and seven other tech firms last year to the blacklist for acting against U.S. foreign policy interests, saying they were “implicated” in “China’s campaign of repression, mass arbitrary detention, and high-technology surveillance against Uighurs, Kazakhs, and other members of Muslim minority groups.”

More than one million people have been sent to camps in the Xinjiang region as part of China’s campaign to root out terrorism, the United Nations has estimated.

Dahua has said the U.S. decision lacked “any factual basis.” Beijing has denied mistreatment of minorities in Xinjiang and urged the United States to remove the companies from the list.

A provision of U.S. law, which is scheduled to take effect in August, will also bar the federal government from starting or renewing contracts with a company using “any equipment, system, or service” from firms including Dahua “as a substantial or essential component of any system.”

Amazon’s cloud unit is a major contractor with the U.S. intelligence community, and it has been battling Microsoft Corp (MSFT.O) for an up to $10 billion deal with the Pentagon.

Top industry associations have asked Congress for a year-long delay because they say the law would reduce supplies to the government dramatically, and U.S. Secretary of State Mike Pompeo said last week that policies clarifying the implementation of the law were forthcoming.

FACE DETECTION & PRIVACY

The coronavirus has infected staff from dozens of Amazon warehouses, ignited small protests over allegedly unsafe conditions and prompted unions to demand site closures. Temperature checks help Amazon stay operational, and the cameras – a faster, socially distant alternative to forehead thermometers – can speed up lines to enter its buildings. Amazon said the type of temperature reader it uses varies by building.

To see if someone has a fever, Dahua’s camera compares a person’s radiation to a separate infrared calibration device. It uses face detection technology to track subjects walking by and make sure it is looking for heat in the right place.

An additional recording device keeps snapshots of faces the camera has spotted and their temperatures, according to a demonstration of the technology in San Francisco. Optional facial recognition software can fetch images of the same subject across time to determine, for instance, who a virus patient may have been near in a line for temperature checks.

Amazon said it is not using facial recognition on any of its thermal cameras. Civil liberties groups have warned the software could strip people of privacy and lead to arbitrary apprehensions if relied on by police. U.S. authorities have also worried that equipment makers like Dahua could hide a technical “back door” to Chinese government agents seeking intelligence.

In response to questions about the thermal systems, Amazon said in a statement, “None of this equipment has network connectivity, and no personal identifiable information will be visible, collected, or stored.”

Dahua made the decision to market its technology in the United States before the FDA issued the guidance on thermal cameras in the pandemic. Its supply is attracting many U.S. customers not deterred by the blacklist, according to Evan Steiner, who sells surveillance equipment from a range of manufacturers in California through his firm EnterActive Networks LLC.

“You’re seeing a lot of companies doing everything that they possibly can preemptively to prepare for their workforce coming back,” he said.

Source: Reuters

13/04/2020

Coronavirus: China’s export showroom Yiwu grinds to a near halt as global pandemic restrictions bite

  • China’s famed Yiwu International Trade Market, a barometer for the health of the nation’s exports, has been hammered by the economic fallout from Covid-19
  • Export orders have dried up amid sweeping containment measures in the US and Europe and restrictions on foreigners entering China have shut out international buyers
The coronavirus pandemic has severely dented wholesale trade at the Yiwu International Trade Market in China. Photo: SCMP
The coronavirus pandemic has severely dented wholesale trade at the Yiwu International Trade Market in China. Photo: SCMP

The Yiwu International Trade Market has always been renowned as a window into the vitality of Chinese manufacturing, crammed with stalls showcasing everything from flashlights to machine parts.

But today, as the coronavirus pandemic rips through the global economy, it offers a strikingly different picture – the dismal effect Covid-19 is having on the nation’s exports.

The usually bustling wholesale market, home to some 70,000 vendors supplying 1,700 different types of manufactured goods, is a shadow of its former self.

Only a handful of foreign buyers traipse through aisles of the sprawling 4-million-square-metre (43 million square feet) complex, while store owners – with no customers to tend to – sit hunched over their phones or talking in small groups.

A foreign buyer visits a stall selling face masks. Photo: Ren Wei
A foreign buyer visits a stall selling face masks. Photo: Ren Wei
“We try to convince ourselves that the deep slump will not last long,” said the owner of Wetell Razor, Tong Ciying, at her empty store. “We cannot let complacency creep in, although the coronavirus has sharply hampered exports of Chinese products.”
Chinese exports plunged by 17.2 per cent in January and February combined compared to the same period a year earlier, according to the General Administration of Customs. The figure was a sharp drop from 7.9 per cent growth in December.
After riding out a supply shock that shut down most of its factories, China is now facing a second wave demand shock, as overseas export orders vanish amid sweeping containment measures to contain the outbreak around the globe.

Nowhere is that clearer to see than in Yiwu. The city of 1.2 million, which lies in the prosperous coastal province of Zhejiang, was catapulted into the international limelight as a showroom for Chinese manufacturing when the country joined the World Trade Organisation in 2001.

Coronavirus: Is the gig economy dead, and should the self-employed worry?
Before the pandemic, thousands of foreign buyers would flock to the mammoth trade market each day to source all manner of products before sending them home.

But the outbreak, which has claimed the lives of more than 113,000 people and infected more than 1.9 million around the world, is proving a major test for the market and the health of the trade dependent city.

Imports and exports via Yiwu last year were valued at 296.7 billion yuan (US$42.2 billion) – nearly double the city’s economic output.

Businesses, however, are facing a very different picture in 2020. Most traders at the market say they have lost at least half their business amid the pandemic, which was first detected in the central Chinese city of Wuhan last year.

Just take a look at the situation in Yiwu and you will understand the extent of the virus’ effect on China’s trade with foreign countries – Tianqing

“Yiwu is the barometer for China’s exports,” said Jiang Tianqing, the owner of Beauty Shine Industry, a manufacturer of hair brushes. “Just take a look at the situation in Yiwu and you will understand the extent of the virus’ effect on China’s trade with foreign countries.”

Jiang said his business was only just hanging on thanks to a handful of loyal customers placing orders via WeChat.

“I assume it will be a drawn-out battle against the coronavirus,” he said. “We are aware of the fact that developed economies like the US and Europe have been severely affected.”

The Yiwu market reopened on February 18 after a one-month long hiatus following the Lunar New Year holiday and the government’s order to halt commercial activities to contain the spread of the outbreak.

Jiang Tianqing, owner of hair brush company Beauty Shine Industry. Photo: Ren Wei
Jiang Tianqing, owner of hair brush company Beauty Shine Industry. Photo: Ren Wei
But facing the threat of a spike in imported cases, Beijing banned foreigners from entering the country in late March – shutting out potential overseas buyers.
Despite the lack of business, local authorities have urged stall owners to keep their spaces open to display Yiwu’s pro-business attitude, owners said.
“For those bosses who just set up their shops here, it would be a do-or-die moment now since their revenue over the next few months will probably be zero,” said Tong. “I am lucky that my old customers are still making orders for my razors.”
The impact of the coronavirus is just the latest challenge for local merchants, who normally pay 200,000 yuan (US$28,000) per year for a 10-square-metre (108 square feet) stall at the market.
Traders were hard hit by the trade war between China and the United States when the Trump administration imposed a 25 per cent tariff on US$200 billion of Chinese imports last year.
At the time, some Chinese companies agreed to slash their prices to help American buyers digest the additional costs.
“But it is different this time,” said Jiang. “Pricing does not matter. Both buyers and sellers are eager to seal deals, but we are not able to overcome the barriers [to demand caused by the virus].”
Even when businesses can secure orders, it is a struggle to deliver them
.

Ma Jun, a manager with a LED light bulb trading company, said the only export destination for her company’s products was war-torn Yemen because it was the only country with ports still open.

It is a public health crisis that ravages not just our businesses, but the whole world economy – Dong Xin

Dong Xin, an entrepreneur selling stationery products, said he could not ship the few orders he had because “ocean carriers have stopped operations”.
“It is a public health crisis that ravages not just our businesses, but the whole world economy,” he said. “The only thing can do is to pray for an early end to the pandemic.”

Most wholesale traders in the Yiwu market run manufacturing businesses based outside the city, so a sharp fall in sales has a ripple effect on their factories, potentially resulting in massive job cuts.

Workers pack containers at Yiwu Port, an inland port home to dozens of warehouses. Photo: Ren Wei
Workers pack containers at Yiwu Port, an inland port home to dozens of warehouses. Photo: Ren Wei
At Yiwu Port, an inland logistics hub full of warehouses where goods from the factories are unpacked and repacked for shipping abroad, container truck drivers joke about their job prospects.
“We used to commute between Shaoxing and here five times a week, and now it is down to twice a week,” said a driver surnamed Wang, describing the trip from his home to the shipping port, just over 100km away.
“At the end of the day, we may not be infected with the coronavirus, but our jobs will still be part of the cost of the fight against it.”
Source: SCMP
05/04/2020

As Trump administration debated travel restrictions, thousands streamed in from China

(Reuters) – In defending his strategy against the deadly coronavirus, President Donald Trump repeatedly has said he slowed its spread into the United States by acting decisively to bar travelers from China on Jan. 31.

“I was criticized by the Democrats when I closed the Country down to China many weeks ahead of what almost everyone recommended. Saved many lives,” he tweeted, for instance, on March 2.

But Reuters has found that the administration took a month from the time it learned of the outbreak in late December to impose the initial travel restrictions amid furious infighting.

During that time, the National Security Council staff, the state department and other federal agencies argued about everything from how best to screen for sick travelers to the economic impact of any restrictions, according to two government officials familiar with the deliberations.

The NSC staff ultimately proposed aggressive travel restrictions to high-level administration officials – but it took at least a week more for the president to adopt them, one of the government officials said.

In meetings, Matthew Pottinger, deputy national security adviser and a China expert, met opposition from Treasury Secretary Steven Mnuchin and National Economic Council director Larry Kudlow, said two former NSC officials and one of the government officials involved in the deliberations. The two top aides were concerned about economic fallout from barring travelers from China, the sources said.

Each day that the administration debated the travel measures, roughly 14,000 travelers arrived in the United States from China, according to figures cited by the Trump administration. Among them was a traveler who came from Wuhan to Seattle in mid-January, who turned out to be the first confirmed case in the United States.

On Jan. 22, Trump downplayed the threat posed by the virus, telling CNBC from the World Economic Forum in Davos, Switzerland, “We have it totally under control.”

The battle within the White House over whether and how to stop infected travelers from China lasted nine more days.

On Jan. 31, Trump issued a proclamation barring entry of non-U.S. citizens, other than the immediate family of citizens and permanent residents, who had traveled to China within the last two weeks. The restrictions have since been expanded to many other countries.

It is unclear when the president was made aware of the NSC’s proposal and what prompted his decision to act, but the decision followed the World Health Organization’s declaration the day before that the epidemic was a “public health emergency of international concern.”

U.S. Centers for Disease Control and Prevention officials told Reuters that they contributed to the decision as part of the administration’s newly convened coronavirus task force.

A Treasury Department spokesperson said that Mnuchin “never objected to the decision to restrict flights from China.”

A White House spokesman, Judd P Deere, said: “Any suggestion that Larry Kudlow objected to restricting flights from China to contain COVID-19 and protect the health of the American people is completely false. Larry fully supported the President’s bold decision.”

In a statement, NSC spokesman John Ullyot said that the council’s early meetings about the coronavirus involved great expertise and robust discussion and were professional.

As of April 4, the coronavirus has infected more than 300,000 people in the United States, and killed over 8,000, according to the Reuters coronavirus tracker. The country has more cases than anywhere else in the world.

The sources for this story, former NSC members, public health officials and others involved in, or briefed on, the administration’s response, spoke on condition of anonymity because they were not authorized to comment on the record.

POPPING A FLARE

The NSC, which operates within the White House to coordinate policies and recommendations involving national security across agencies, was at the center of the effort to formulate the early response to the outbreak.

The council was first notified of the outbreak on the morning of Dec. 31, according to one of the government officials involved, when an NSC official was forwarded an email from a Department of Health and Human Services (HHS) attache in Beijing that had been sent to senior HHS officials the night before.

The “pop-a-flare” notice, as it is known, described strange cases of pneumonia that could not be definitively traced to seasonal flu, said the government official, who saw the message. The email said the Chinese would soon be notifying the World Health Organization, the official said.

On Jan. 3, Dr. Gao Fu, head of China’s disease control agency, informed his U.S. counterpart, Dr. Robert Redfield, director of the CDC, in an emotional telephone call that the outbreak was growing out of control, according to the same federal official and a former NSC official. Both said they had been informed of the details.

Gao’s agency did not respond to a request for comment.

Ullyot, the NSC spokesman, disputed the timeline, saying the council did not learn of the coronavirus outbreak until Jan. 3. The CDC, a part of HHS, confirmed to Reuters that it learned of an outbreak in late December and that the call with Gao occurred Jan. 3.

Health agencies were scrambling to gather information, the two government officials involved in the deliberations said. Questions went back to the U.S. Embassy in Beijing, and experts across the government: How many travelers arrive daily from Wuhan, China, the initial site of the outbreak? What U.S. airports do they fly into? What would be the pros and cons, including costs, of any travel restriction?

In discussions with the NSC, public health officials, including from HHS and CDC, initially argued for the targeted approach of medically screening travelers from Wuhan, as they sifted through information about where and how quickly the virus was spreading, one of the government officials involved said. Public health officials tend not to favor border closures because they can restrict medical response and divert limited resources.

The NSC’s Pottinger was pushing hard for strict travel restrictions – expressing doubt about the truth of the data China was releasing, according to the official.

There was “a lot of yelling, a sign of frustration,” said a former NSC staffer who was not in the meetings but got messages from colleagues in attendance expressing dismay. The person described the messages but did not share them with Reuters. The two current federal officials confirmed the acrimony.

The NSC struggled to reconcile conflicting viewpoints, the two government officials involved said.

The debate delayed the screening of travelers from China by at least a week, one of the officials said. CDC officials ultimately announced enhanced medical screenings for travelers from Wuhan at three international airports, in Los Angeles, San Francisco and New York’s John F. Kennedy, on Jan. 17, expanding them to 20 U.S. airports by Jan. 28.

At one point, during a meeting, Pottinger snapped at health officials that their approach “really has to take a step back,” so that national security interests could shape the response, the official said.

The CDC declined to comment on the debate.

Some former NSC officials who spoke to Reuters traced what they saw as an ineffective response by the council in part to structural changes in 2018 in which former National Security adviser John Bolton had folded the council’s Global Health Security and Biodefense directorate into a larger operation, with the result that pandemic planning was not as great a priority. Others said that, under Bolton, the NSC worked effectively on biopreparedness, but after he departed it lost a number of important experts.

NSC spokesman Ullyot rejected as false the suggestion that the council lacked expertise. The council is staffed by officials with “extensive experience in virology, infectious disease epidemiology, global health security, public health, and emergency response,” he said.

The NSC’s own public health experts were involved in the discussions from the beginning, advocating “early and often” for traveler screening and raising the issue of banning flights from Wuhan, he said.

While the conflict soured the interactions, one of the government officials involved said, data soon emerged that led the health agency officials to agree with Pottinger: A travel restriction for all of China was needed. They saw that there were thousands of travelers arriving daily from Wuhan’s Hubei province to the United States, as well as a rising number of Covid-19 cases reported by the Chinese government beginning in mid-January, the source said.

In its statement to Reuters, the CDC did not directly address what led to its ultimate decision to support the travel restrictions.

By Jan. 24, the staff of the NSC had proposed restricting flights from China, said the government official involved in the deliberations. But as Pottinger met with deputies from other cabinet-level agencies, the recommendation met with resistance because of concerns about spooking the markets and scaring the public, three sources with knowledge of the deliberations told Reuters.

STILL DIVIDED

With opinions still divided, the matter went to top White House aides, at which point Treasury Secretary Mnuchin and National Economic Council director Kudlow argued strongly against the travel restrictions, said two former NSC officials and the government official involved in the deliberations.

In addition to the impact on the stock market, the two top aides expressed concern about the supply chain for everything from semiconductors to ingredients for pharmaceuticals, said one of the government officials involved in the deliberations.

Pottinger was “pleading with Mnuchin and others” to stop travelers from coming, the former NSC official said.

By then, the first known patient in the United States – a man in his 30s who had traveled from Wuhan to Seattle on Jan. 15 – tested positive for the coronavirus disease, COVID-19.

He had slipped through travel screenings because his trip had been broken up, so the Wuhan origin of his trip had not been obvious to customs agents, said the government official with knowledge of the deliberations.

At the World Economic Forum in Davos, Switzerland, President Trump told CNBC on Jan. 22: “It’s one person coming in from China, and we have it under control. It’s going to be just fine.”

On Jan. 29, the Council of Economic Advisers, which advises the president on economic policy, presented an analysis describing a worst-case scenario of what a pandemic and travel restrictions could do to the economy, according to one of the government officials involved in the deliberations, who read it. The report supported Kudlow and Mnuchin’s arguments against such restrictions and “scared everyone,” the source said.

The next day, at an afternoon meeting of the White House’s newly formed coronavirus task force, as well as other attendees, travel restrictions were still being debated, according to the government official involved in the deliberations and a former NSC official who learned of the meeting from former colleagues.

During the meeting, Mick Mulvaney, then President Trump’s chief of staff, entered the room, telling a smaller group, including Pottinger: “The president wants to see you now,” according to the official involved in the deliberations and the former NSC officials.

Mulvaney referred questions to the White House, which did not respond.

Trump issued the order the next day. By then, the novel coronavirus was already carving a lethal path through a Seattle nursing home.

Source: Reuters

18/03/2020

China to restrict US journalists from three major newspapers

US newspapersImage copyright GETTY IMAGES

China has effectively expelled journalists from three US newspapers in retaliation for restrictions on its news outlets in the US.

Its foreign ministry ordered reporters from the New York Times, the Washington Post and the Wall Street Journal to return media passes within 10 days.

The ministry also demanded information about their operations in China.

The measures were in response to “unwarranted restrictions on Chinese media agencies” in the US, it said.

China’s action also prohibits the newspapers’ journalists from working in the semi-autonomous regions of Hong Kong and Macau, where there is greater press freedom than on the mainland.

Earlier this month, the Trump administration imposed limits on the number of Chinese citizens who could work as journalists in the US – the latest move in a tit-for-tat row over press freedoms.

“What the US has done is exclusively targeting Chinese media organisations, and hence driven by a Cold War mentality and ideological bias,” China’s foreign ministry said in a statement on Tuesday.

US Secretary of State Mike Pompeo urged Beijing to reconsider its decision, calling the move “unfortunate”.

“I regret China’s decision today to further foreclose the world’s ability to conduct the free press operations that, frankly, would be really good for the Chinese people in these incredibly challenging global times, where more information, more transparency are what will save lives,” Mr Pompeo said.

Presentational grey line

Great loss for Chinese journalism

Zhaoyin Feng, BBC Chinese

All foreign correspondents in China are required to renew their press credentials annually, which usually happens at the year end.

This means most American reporters of the three US major publications have an expiring visa and will need to leave China under the new rules. We don’t know the exact number of affected journalists yet, but it’s believed to be close to a dozen.

The expulsions will lead to a major personnel loss in these three media organisations’ China operation, especially for the Wall Street Journal, which had already seen three reporters expelled from China last month.

Critics say it’s an even greater loss for China, as the draconian measures come at a time when the country and the rest of the world need high-quality journalism on China more than ever.

It’s still unclear whether the US publications can send new correspondents, American citizens or not, to fill in the positions in China.

In the midst of a dangerous pandemic, the world’s two superpowers are locked in an escalating war with multiple fronts. By fighting over media, the origin of the coronavirus, and technology and trade, the US and China are competing to prove the superiority of their own political model.

Presentational grey line

At the beginning of March, the US state department said five media outlets, including China’s official news agency Xinhua, would be required to reduce their total number of staff to 100 from 160.

The move was seen as retaliation for China’s expulsion of two US journalists for the Wall Street Journal over a coronavirus editorial in February.

The row over media access is the latest episode in an increasingly acrimonious dispute between China and the US.

Disagreements over trade, intellectual property rights and 5G networks have damaged relations in recent years.

The coronavirus pandemic has been a source of tension too, with Washington and Beijing both accusing each other of spreading misinformation.

On Tuesday, US President Donald Trump angered China by referring to the coronavirus as “Chinese”.

A foreign ministry spokesman accused the US of stigmatising China, where the first cases of Covid-19 were recorded in the city of Wuhan in late 2019.

However, last week a Chinese foreign ministry spokesman shared a conspiracy theory, alleging the US Army had brought it to the region.

The unfounded accusation led Mr Pompeo to demand China stop spreading “disinformation” as it tried “to shift blame” for the outbreak.

Source: The BBC

19/02/2020

Mike Pompeo takes aim at corruption and Chinese investment in Angola

  • US secretary of state is eager to promote US investment as an alternative to China, which holds the lion’s share of Angola’s foreign debt
  • Isabel dos Santos, the former president’s daughter, became Africa’s richest woman but now stands accused of massive fraud
US Secretary of State Mike Pompeo in Luanda, Angola. Photo: Reuters
US Secretary of State Mike Pompeo in Luanda, Angola. Photo: Reuters

US Secretary of State Mike Pompeo denounced corruption and touted American business on Monday during the second leg of an African tour in Angola, where the government is seeking to claw back billions of dollars looted from state coffers.

Pompeo is aiming to promote US investment as an alternative to Chinese loans while assuaging concerns over a planned US military withdrawal and the expansion of visa restrictions targeting four African countries.

In Angola’s capital Luanda, Pompeo met with President Joao Lourenco, who took office in 2017 promising wide-ranging economic reforms and a crackdown on the endemic corruption that marked his predecessor Jose Eduardo dos Santos’ four-decade rule.

“Here in Angola, damage from corruption is pretty clear,” he told a group of businessmen following that meeting. “This reform agenda that the president put in place has to stick.”

Here in Angola, damage from corruption is pretty clear Mike Pompeo
Portugal’s public prosecutor has ordered the seizure of bank accounts belonging to

Isabel dos Santos

, the former president’s billionaire daughter, who is a suspect in an Angolan fraud investigation. Reputedly the richest woman in Africa, she has repeatedly denied any wrongdoing.

Angola, with Sub-Saharan Africa’s third-largest economy and its second-largest oil producer is ranked as one of the world’s most corrupt nations, in 165th place on a list of 180 countries, according to anti-corruption group Transparency International.

US oil majors ExxonMobil and Chevron have significant stakes in Angolan oilfields.

Last year, Chevron signed onto a consortium to develop Angola’s natural gas assets alongside Italy’s Eni, France’s Total, BP and Angolan state oil company Sonangol.

Mike Pompeo and his wife Susan greet Angola Foreign Minister Manuel Domingos Augusto in Luanda on Monday. Pool photo: AFP
Mike Pompeo and his wife Susan greet Angola Foreign Minister Manuel Domingos Augusto in Luanda on Monday. Pool photo: AFP
“We’ve got a group of energy companies that have put more than US$2 billion in a natural gas project. That will rebound to the benefit of the American businesses for sure, but to the Angolan people for sure as well,” Pompeo said.

Despite US investments, the bulk of Angola’s oil production is destined for China, which holds the lion’s share of Angolan foreign debt.

The Trump administration has accused China of predatory lending in Africa, where Beijing has loaned governments billions of dollars for infrastructure projects in exchange for access to natural resources as part of its Belt and Road project. China rejects the criticism.

With a revamped International Development Finance Corporation and its new Prosper Africa trade and investment strategy, the administration is seeking to combat Chinese influence on the continent.

But the push comes as some governments are questioning US President Donald Trump’s commitment to Africa.

Do Africa’s emerging nations know the secret of China’s economic miracle?

13 Oct 2019

The White House last month tightened visa restrictions on nationals from Sudan, Tanzania, Eritrea and Nigeria.

West African governments are also worried about a proposed US troop withdrawal from the region just as Islamist groups with links to Islamic State and al-Qaeda are gaining ground.

During the first leg of his African trip in Senegal on Sunday, Pompeo sought to put some of those fears to rest.

“We have an obligation to get security right here, in the region. It’s what will permit economic growth, and we’re determined to do that,” he told reporters.

Source: SCMP

31/07/2019

China and US court Asean members to strengthen Indo-Pacific ties as trade war enters second year

  • China’s Wang Yi and US’ Mike Pompeo at summit in Thailand to sell their visions of future for Southeast Asia
  • Analysts expect pragmatism from Asean as world’s two biggest economic powers play diplomatic game
Chinese Foreign Minister Wang Yi (right) greets his Philippine counterpart Teodoro Locsin at the Asean meeting in Bangkok, Thailand. Photo: Xinhua
Chinese Foreign Minister Wang Yi (right) greets his Philippine counterpart Teodoro Locsin at the Asean meeting in Bangkok, Thailand. Photo: Xinhua
China and the United States are on a mission to strengthen ties with allies and expand their influence in Southeast Asia this week as their trade war enters a second year.
US Secretary of State Mike Pompeo arrived for a meeting of the Association of Southeast Asian Nations (Asean) in Bangkok on Wednesday to promote the US-led Indo-Pacific strategy, while Chinese Foreign Minister Wang Yi touched down a day earlier to advance Beijing’s Belt and Road Initiative.
The US Department of State said Pompeo’s trip was aimed at deepening Washington’s “long-standing alliances and vibrant bilateral relations with these countries, and [to] reaffirm our commitment to Asean, which is central to our vision for the Indo-Pacific region”.
In Beijing on Wednesday, Chinese foreign ministry spokeswoman Hua Chunying said that while their meeting was yet to be set, Wang and Pompeo were expected to meet and talk “frankly” about bilateral relations.
“I think that it is indeed necessary for China and the United States to maintain communication, as the two countries face many situations,” Hua said. “The issues would be communicated frankly”.

The Indo-Pacific strategy is a military and economic framework to contain China’s expansion into the Pacific and Indian oceans, and give an alternative to Beijing’s flagship belt and road development programme.

En route to Thailand, Pompeo said that after a stalled start to US Indo-Pacific policy during the Barack Obama administration, Washington’s strategy was well on its way to bearing fruit for the US and its allies.

South China Sea tensions, US-China trade war loom over Asean summit

“We have watched these coalitions build out,” he said.

Pompeo dismissed claims that China’s sphere of influence among Asean members was growing, saying such speculation was “not factually accurate”.

“[Asean countries] are looking for partners that are going to help them build out their economies and to take good care of their people,” he said, pledging greater engagement from President Donald Trump’s administration.

Pompeo was expected to sit down on Friday with his South Korean and Japanese counterparts to consolidate their trilateral alliance in the region.

He was also expected to hold talks with Thai Foreign Minister Don Pramudwinai that day.

US Secretary of State Mike Pompeo is expected to meet Chinese Foreign Minister Wang Yi at Asean in Thailand. Photo: EPA-EFE
US Secretary of State Mike Pompeo is expected to meet Chinese Foreign Minister Wang Yi at Asean in Thailand. Photo: EPA-EFE

Meanwhile, Wang launched his belt and road pitch to his Cambodian, Philippine and Indonesian counterparts after he arrived in Thailand for the gathering, which ends on Saturday.

The belt and road projects are largely commercial and aimed at strengthening land and sea infrastructure linking Asia, Europe and Africa. But they raised suspicion in the West that they are aimed at eroding the US-led world order.

During his meeting with Philippine Foreign Affairs Secretary Teodoro Locsin, Wang said: “China is willing to have high-level exchanges with the Philippines, to deepen the mutual trust, and promote the Belt and Road Initiative [in the Philippines] … to accelerate the development of regional infrastructure.”

Can China’s trade boost with Asean help get the Regional Comprehensive Economic Partnership over the line?

This year’s Asean forum was taking place as countries were more receptive to Chinese initiatives, in part due to the unpredictability of the US administration, according to Rajeev Ranjan Charturvedy, a visiting fellow at the S. Rajaratnam School of International Studies at Nanyang Technological University in Singapore.

“Policy uncertainties under the Trump administration have already pushed some Asean countries towards China in ways that would have seemed unlikely a few years ago,” Charturvedy said.

Analysts said Trump’s “America first” approach shaped his Asean policy. The president had vowed to apply “punishments” to countries – including Asean member states – for contributing to the US trade deficit.

Chinese Foreign Minister Wang Yi is talking to Asean counterparts at a time when they are receptive to China’s proposals, an analyst says. Photo: AFP
Chinese Foreign Minister Wang Yi is talking to Asean counterparts at a time when they are receptive to China’s proposals, an analyst says. Photo: AFP

Trump was absent at the Asean summit in Singapore last year, leading to concerns that Washington’s commitment to Asia was declining.

Charturvedy said the Asean forum’s focus was about building constructive regionalism, but China’s attitudes to security could pose a challenge.

“[However] Asean countries clearly hope not to be forced to choose between the US and Chinese offers. Rather, they would like more freedom of choice while accommodating for a larger role for China in the region,” he said.

Clarita Carlos, a professor of political science at the University of the Philippines, suggested that Asean members would be pragmatic during the forum.

Robert Lighthizer warns Vietnam over trade deficit with US

They would try to find their own balance between the two major powers – as countries rather than a bloc – to try to maximise each state’s interests and advantages, Carlos said.

“Vietnam has a love-hate relationship with China, especially as a winner in the ongoing US-China trade war,” she said. “Singapore has close relations with China. There are also ups and downs in the relationship with China for Brunei, Malaysia and Indonesia.”

Source: SCMP

08/07/2019

World cannot shut China out, vice president says, in jab at U.S.

BEIJING (Reuters) – China and the rest of the world must co-exist, Vice President Wang Qishan said on Monday, in an indirect jab at the United States, with which Beijing is trying to resolve a bitter trade war.

Top representatives of the world’s two biggest economies are trying to resume talks this week to try and resolve their year-long trade dispute, which has seen the two countries place increasingly harsh tariffs on each other’s imports.

The Trump administration has accused China of engaging in unfair trade practices that discriminate against U.S. firms, forced technology transfers and intellectual property rights theft. Beijing has denied all the charges.

“China’s development can’t shut out the rest of the world. The world’s development can’t shut out China,” Wang told the World Peace Forum at Beijing’s elite Tsinghua University.

He also warned against “protectionism in the name of national security”, but without mentioning the United States, and urged major powers to make greater contributions to world peace.

China has also been angered by U.S. sanctions against tech giant Huawei Technologies Co Ltd over national security concerns, and U.S. visa curbs on its students and academics.

In his speech, Wang, who is extremely close to Chinese President Xi Jinping and rarely speaks in public, reiterated China’s commitment to opening up.

“Large countries must assume their responsibilities and set an example, make more contributions to global peace and stability, and broaden the path of joint development,” he added.

“Development is the key to resolving all issues,” Wang, who became vice president last year, after having led Xi’s fight to root out corruption, told an audience that included Western diplomats based in Beijing and former European Council President Herman Van Rompuy.

“NOT A RATIONAL ACTION”

The United States should not blame China for the problems it is facing, Vice Foreign Minister Le Yucheng told the forum later.

“Viewing China as the enemy is not a rational action,” the foreign ministry quoted him as saying, adding that China would not put up “high walls” or “decouple itself from any country”.

China has been nervous that the United States is seeking to sever, or at least severely curb, economic links, in what has been called a “decoupling”.

Tariff, trade, finance and science and technology wars are “turning back the clock on history,” Le said. “The consequences will be extremely dangerous.”

The two sides have communicated by telephone since last month’s summit of leaders of Group of 20 major nations in Japan, at which U.S. President Donald Trump and Xi agreed to relaunch stalled talks.

Talks broke down in May, after U.S. officials accused China of pulling back from commitments previously made in the text of an agreement negotiators said was nearly finished.

The countries have also been at loggerheads over issues ranging from human rights to the disputed South China Sea and U.S. support of self-ruled Taiwan, which China claims as its own.

No matter how the international situation or China developed, Vice President Wang said, the country would follow the path of peace, and not seek spheres of influence or expansion.

“If there is no peaceful, stable international environment, there will be no development to talk of.”

Source: Reuters

15/06/2019

Lessons from an old trade war: China can learn from the Japan experience

  • In the last half of the 20th century US worries about a rising Japan led to tariffs and technology mistrust
  • Differences in the Chinese experience may predict a different outcome
Toshiba was one of the companies affected by US actions to prevent the rise of Japan in a trade war that echoes in today’s tensions between the US and China. Photo: Reuters
Toshiba was one of the companies affected by US actions to prevent the rise of Japan in a trade war that echoes in today’s tensions between the US and China. Photo: Reuters
If history is a mirror to the future, the similarities between the spiralling technology stand-off between China and the US and the economic wars waged by the US with Japan – which peaked in the 1980s and 1990s – may be instructive. But there are differences between the two which may predict a different outcome.
The US-Japan economic tensions started in the 1950s over textiles, extended to synthetic fibres and steel in the 1960s, and escalated – from the 1970s to 1990s – to colour televisions, cars and semiconductors, as Japan’s adjusted industrial policy and technology development moved it up the industrial chain.
Boosted by government support, Japan’s semiconductor industry surpassed the US as the world’s largest chip supplier in the early 1980s, causing wariness and discontent in the US over national security risks and its loss of competitiveness in core technologies.

The Reagan administration regarded Japan as the biggest economic threat to the US. Washington accused Tokyo of state-sponsored industrial policies, intellectual property theft from US companies, and of dumping products on the American market.

The US punished Japanese companies for allegedly stealing US technology and illegally selling military sensitive products to the Soviet Union. It also forced Japan to sign deals to share its semiconductor technologies and increase its purchases of US semiconductor products.

“The Trump administration is using similar tactics against China that were used against Japan in the 1980s and 1990s,” said an adviser to the Chinese government, on condition of anonymity, adding that the US was continuing its hegemony to curtail China’s tech development and was trying to mobilise its allies to follow suit.

After talks to end the US-China trade faltered last month, Huawei – a global leader in the 5G market – is now standing at centre stage of a protracted technology stand-off between Beijing and Washington, which has grown increasingly wary of the rising competitiveness of Chinese tech companies.

Zhang Monan, a researcher with the Beijing-based China Centre for International Economic Exchanges, does not foresee an easing of the rivalry between the US and China.

“The current US-China conflicts are more complicated than those between the US and Japan,” she said.

“The US will only get more intense in its containment of China and the tech rivalry won’t ease, even if China and the US could reach a deal to de-escalate the trade tensions.”

Huawei is at the centre of a technology stand-off between Beijing and Washington. Photo: AP
Huawei is at the centre of a technology stand-off between Beijing and Washington. Photo: AP

Back in 1982, the US justice department charged senior officials at Hitachi with conspiracy to steal confidential computer information from IBM and take it back to Japan. IBM also sued Hitachi. The two companies settled the case out of court and Hitachi paid 10 billion yen (US$92.3 million) to IBM in royalties in 1983, while accepting IBM inspections of its new software products for the next five years.

Toshiba, a major electronics producer in Japan, and Norway’s Kongsberg Vaapenfabrikk secretly sold sophisticated milling machines to the Soviet Union from 1982 to 1984, helping to make its submarines quieter and harder to detect. This transfer of sensitive military technology in the middle of an arms race between the US and the Soviet Union was not revealed until 1986.

The US issued a three-year ban on Toshiba products in 1987 and the company ran full-page advertisements in more than 90 American newspapers apologising for its actions.

In 1985, the US imposed 100 per cent tariffs on Japanese semiconductors. A year later, in its five-year semiconductor deal with the US, Japan agreed to monitor its export prices, increase imports from the US, and submit to inspections by the Office of the United States Trade Representative.

A display of chips designed by Huawei for 5G base stations on show at the China International Big Data Industry Expo. Photo: AP
A display of chips designed by Huawei for 5G base stations on show at the China International Big Data Industry Expo. Photo: AP

This was followed by a second five-year semiconductor deal in 1991, in which Japan agreed to double the US market share in Japan to 20 per cent. In yet another bilateral semiconductor deal in 1989 Japan was required to open its semiconductor patents to the US.

Meanwhile, the US government boosted its efforts to help American businesses cement their industrial leverage in the chip sector and unveiled rules to protect its domestic chip industry.

The two countries were irreconcilable in 1996 on how to measure their respective market share. Overall market circumstances had also changed by then, with the US becoming competitive in microprocessing, and South Korea and Taiwan emerging as strong rivals to Japan.

Its dominance in semiconductors lost, Japan reached out to Europe for a range of cooperative technology deals.

Cooperate, don’t confront: academic advises Beijing on trade war tactics

“History can tell that high technology matters greatly to national security strategies. It is not a process of mere market competition. It follows the law of the jungle,” Zhang said.

The US has intensified its investment scrutiny by rolling out the Foreign Investment Risk Review Modernisation Act last year, which extends the regulation to key industrial technology sectors.

Zhang predicted the US would continue to contain China’s technological development in key sectors such as AI, aerospace, robots and nanotechnology – all of which are of great importance to Beijing.

The US has said Chinese tech giants Huawei and ZTE present a national security risk. Last April it cut US supplies to ZTE, citing violations of sanctions against Iran and North Korea. The ban was removed three months later after ZTE paid US$1.4 billion in fines.

It was a wake-up call for China to develop its own core technologies. The subsequent US ban on Huawei added to the urgency to do so, observers said.

Wang Yiwei, a professor in international relations with Renmin University, said China had to develop its own hi-tech know-how while continuing the opening up process.

“China has paid a price to learn whose globalisation it is,” he said.

“We may see some extent of disengagement with the US in technology and dual-use sectors, but China can speed up cooperation with European countries, and other countries such as Israel, to offset the risks from the US.”

In December, the US filed criminal charges against Huawei and its chief financial officer Sabrina Meng Wanzhou, alleging bank fraud, obstruction of justice and technology theft.

The squeeze continued last month with the US blacklisting Huawei, restricting its access to American hi-tech supplies and putting pressure on its allies to freeze the company out of the 5G market. So far, those allies, including Germany and Japan, have remained hesitant about meeting the US request and refrained from siding with either country.

Chinese foreign ministry spokesman Geng Shuang said on Monday that Huawei had obtained 46 commercial contracts in 30 countries as of June 6, “including some US allies and some European countries that the US has been working hard to persuade out of the contracts”.

For Zhang, the differences between Japan’s experience of US concerns of technological advancement and China’s may offer some hope for Chinese ambitions.

“Dependent on US for security protection, Japan was limited in [its ability to] push back and was already a developed country,” she said.

“But China has huge domestic market potential to address the imbalance [between] economic and technology development. This remains a big attraction to multinational companies, which would enable China to integrate into global innovation and technology cooperation, but China has to figure out how to dispel the doubts on its growth model.”

Source: SCMP

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