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A second U-turn this year by Ford Motor Co. in Mexico has raised the specter of Chinese competition for local carmaking, adding to pressure on the industry after repeated threats by U.S. President Donald Trump to saddle it with punitive tariffs.

Ford announced on Tuesday it would move some production of its Focus small car to China instead of Mexico, a step that follows the U.S. automaker’s January cancellation of a planned $1.8 billion plant in the central state of San Luis Potosi.

The scrapping of the Ford plant was a bitter blow, coming after U.S. President Donald Trump had blamed the country for hollowing out U.S manufacturing on the campaign trail, and threatened to impose hefty tariffs on cars made in Mexico.

Since then, rhetoric from the Trump administration has become more conciliatory, and Mexico and the United States have expressed confidence that the renegotiation of the NAFTA trade deal, expected to begin in August, could benefit both nations.

But the loss of the Focus business is an unwelcome reminder of competition Mexico faces from Asia at a time China’s auto exports and the quality of its cars are rising.

“For a long time, the quality of vehicles coming out of China was not to global standards. There was a gap in quality that [favored] Mexico – but that is closing,” said Philippe Houchois, an analyst covering the auto industry at investment bank Jefferies. “That is probably a threat to Mexico.”

In the past decade, global automakers have invested heavily in Chinese factories to make them capable of building cars at quality levels that make the grade in developed markets.

Ford’s decision to shift Focus production for the United States market to China from Mexico shows automakers have increasing flexibility to choose between the two countries to supply niche vehicles to American consumers or other markets.

‘Very Troubling’

Demand for small cars in the United States is waning and General Motors Co. faces a similar situation to Ford’s with its Chevrolet Cruze compact.

Were GM to go down the same path with the Cruze and shift its production out of U.S. factories, it could give more work to its Mexican plants – but might also bring its Chinese operations in Shenyang or Yantai into play.

GM did not immediately reply to a request for comment on its plans for the Cruze.

Studies show Mexican manufacturing is competitive, and business leaders believe that NAFTA talks between Mexico, the United States and Canada could ultimately yield tougher regional content rules for the region that benefit local investment.

Ford said its decision balanced cheaper Chinese labor rates against pricier shipping, but that in the end an already-planned refit of its Chinese factory saved it some $500 million over retooling both that facility and its Hermosillo plant in Mexico.

The volatile state of U.S.-Mexican trade relations also carries big risks if Trump renews his threats to impose 35-percent tariffs on cars made in Mexico.

To be sure, Trump has also threatened to levy 45-percent tariffs on Chinese goods and his Trade Representative Robert Lighthizer said he found Ford’s China move “very troubling.”

Trump’s threats have battered the peso, ironically making Mexico’s goods cheaper. Uncertainty over the future of NAFTA pushed the currency to a record low in January, although it has since rebounded.

That same month, the Boston Consulting Group published an assessment of manufacturing competitiveness that gave Mexico an 11-percent lead over China.

That advantage has prompted global firms to plow billions of dollars into the Mexican auto industry, pushing output to record highs. Some officials in the automotive sector painted Ford’s move as a one-off decision.

“There’s still very dynamic investment and growth in plants,” said Alfredo Arzola, director of the automotive cluster in Guanajuato state, one of Mexico’s top carmaking hubs.

Still, there have been “significant quality improvements” in Chinese cars, consultancy J.D. Power said in a 2016 study.

Chinese car manufacturing could catch up with international standards in China by 2018 or 2019, said Jacob George, general manager of J.D. Power’s Asia Pacific Operations, citing the consultancy’s gauge of “hard quality”, or failures.

However, when measured in terms of “perceptual” quality, China was probably still some 4 to 6 years behind, he added.
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After starting work in a hotel kitchen, Zhai Meiqin began selling furniture and built a billion-dollar conglomerate, but she took great pride in being recognized this week for driving a new phenomenon in China: philanthropy.

Zhai, one of China’s richest women and president of the privately owned HeungKong Group Ltd., said she never forgot her humble upbringing in Guangzhou in southern China, where her father was an architect and her mother worked in a store.

This made her determined to help others, and she started donating to charity shortly after setting up the business with her husband in 1990.

As their business grew, taking in real estate, financial investment and health care, Zhai broke new ground in 2005 by establishing China’s first nonprofit charitable foundation.

Since then, the HeungKong Charitable Foundation has helped an estimated 2 million people, by funding 1,500 libraries, providing loans for women to start businesses, and funding orphans, single mothers, handicapped children and the elderly.

“I realized there were a lot of poor people in China and this drove me to earn more money so I could help them,” said Zhai, 53, who was one of nine philanthropists named Thursday as winners of the 2017 Carnegie Medal of Philanthropy.

Zhai and her husband, Liu Zhiqiang, whose HeungKong Group with 20,000 staffers has made them worth about $1.4 billion, according to Forbes magazine, are known for being leaders of the culture of philanthropy in China.

Their foundation was listed as number 001 by the Ministry of Civil Affairs. Zhai said at the end of 2015 there were 3,300 registered nonprofit charitable foundations in China.

Next generation

“By setting up the foundation, I wanted to encourage other people, other entrepreneurs, to also donate to charity,” she told the Thomson Reuters Foundation in a phone interview from Guangzhou translated by her daughter.

“Now I want to make sure that the next generation continues this culture of philanthropy in China,” she added, with two of her four children taking an active role in her foundation.

The other philanthropists to win the Carnegie Medal — which was established in 2001 and is awarded every two years — came from around  the globe.

The list included India’s education-focused Azim Premji, Canadian-born social enterprise pioneer Jeff Skoll and American-Australian lawyer and former World Bank Group President James Wolfensohn.

The winners were chosen by a committee made up of seven people representing some of the 22 Carnegie institutions in the United States and Europe.
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Cambodian activists fighting plans to transform Phnom Penh’s largest lake into a luxury development made a tactical decision when they took to the streets: put women on the frontline to show a “gentle” face and prevent violence.

But it was wishful thinking.

The women of Boeung Kak Lake, once home to a thriving community, have been kicked, manhandled, threatened and jailed, one of many land battles globally where women are bearing the brunt of the crackdown on protesters.

“We are mostly women because we are more gentle so we face less violence. This is our strategy,” said Im Srey Touch, a 42-year-old activist from Boeung Kak Lake.

“If we let men participate in our protests, we let them stand behind us or outside, and we stand in the front to reduce the likelihood of violence.”

​Evictions began in 2007

In fact, as the number of people killed in land conflicts around the world soars, more than half of the dead have been women, rights watchdogs say.

In Phnom Penh the conflict began in 2007 when nearly 4,000 families were stripped of their housing rights after the Cambodian government leased the Boeung Kak Lake area in the nation’s capital to make way for an upmarket mini city.

Since then, the lake has been filled with sand and most of the 4,000 families evicted, with little to no compensation, amid complaints about the social and environmental impact.

Over the years, more than a dozen activists protesting the evictions have been arrested, most of them women through whom land is passed down in many parts of Cambodia.

Whose courts?

In February, a court sentenced Tep Vanny, the most high-profile lake activist, to two and a half years in jail for inciting violence and assaulting security guards.

Rights observers say the government is using the courts and jails to muzzle activists, including those defending their land rights against government officials and their business cronies.

“It is a signal to civil society that ‘We can come after you whenever we want. The courts are ours. We can make anything we say about you stick,’“ said Phil Robertson, deputy director of Asia for New York-based nonprofit Human Rights Watch.

The government of Minister Hun Sen’s ruling Cambodian People’s Party (CPP) rejects such criticism and says it respects due process.

“The court makes decisions based on the constitution and, like every open society, the court provides justice to everyone no matter who they are,” said government spokesman Phay Siphan.

​Long history of land disputes

Amnesty International has criticized the Cambodian government for “bending the law to their will” to crack down on dissent. It said 42 criminal cases have been brought against the Boeung Kak Lake activists since 2011.

“Nobody believes Tep Vanny was assaulting these security guards,” said Robertson, who accused the judges of being “stooges” of the CPP.

Home to 15 million people, impoverished Cambodia has a long history of disputes over land rights, many dating back to the 1970s when the communist Khmer Rouge regime destroyed property records, and all housing and land became state property.

Cambodia began to privatize land after 1989, when Hun Sen’s CPP-led government shed its communist past and courted foreign investment, paving the way for economic land concessions.

“After privatization, land prices started going up, and people were at risk of land grabbing by companies, the state and well-connected individuals,” said Naly Pilorge, director of the nonprofit Cambodian League for the Promotion and Defense of Human Rights (LICADHO).

LICADHO says the lack of a publicly available land register detailing boundaries means authorities could confiscate land, claiming that affected families were living on state property.

Between 2000 and 2014, about 770,000 Cambodians were affected by land conflicts, according to charges presented by lawyers at the International Criminal Court in the Hague.

“Because Cambodia is lawless … with close ties between companies, government, the military and police, it’s a recipe for violence,” Pilorge said by phone from Phnom Penh.

A broken family

Despite the court cases and jail time, the Boeung Kak Lake women persist. They protest loudly and lie on the ground when ringed and roughed up by authorities. They are arrested in groups, sometimes just two, and, once, 13 of them.

Pilorge says authorities now appear to be trying a new tack, turning their energies onto Vanny on whom it is taking its toll.

During a brief recess before her guilty verdict Feb. 23, the 37-year-old divorcee who was arrested last August described the impact of her detention on her son, 11, and daughter, 13.

“I lost my role as a mother. I have a broken family. My child is sick,” she said, adding that she could not be there for her daughter’s surgery to remove her appendix.

“During the last hearing, my daughter cried until she fainted … I am a mother but I’m in prison. I can’t take care of her,” she said.

Activists suspect authorities are using her in a bid to silence other activists ahead of local elections this month and next year’s national vote.

A lake activist who was arrested with Vanny last year, Sophea Bov, was convicted for insulting authorities and fined $20. So far Bov has refused to pay the fine, Pilorge said, but no one has come for yet although the judge could imprison her.

“She was hoping that if she refused to pay the fine, she could go to prison to be with Vanny. Imagine where they are now, to think like that,” Pilorge said. “As human beings, we grow and we become stronger with challenges … these women have been tested, and they’ve overcome a lot of obstacles.”

 
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China is probing the loan practices of a group of big private sector conglomerates who have been on a high-profile global spending spree over the past few years.

And although the review targets only a few of the country’s most politically-connected companies, some analysts see an attempt to increase government control over the role played by the private sector in foreign markets.

“I think this is an attempt to change the direction (of) the role these Chinese companies play in the Chinese economy,” says Paul Gillis, a professor at Peking University’s Guanghua School of Management. “To align them more closely with the policies of the government and to reduce the risks that actions of these private companies could end up having a shock effect on the economy as a whole.”

Chinese authorities say they launched the probe because of worries that highly leveraged overseas deals pose risks to China’s financial system. Officials have already expressed worries over mounting debt among Chinese lenders, some of which may remain hidden by China’s opaque lending networks.

Notable companies targeted

According to media reports, the list of companies under review is a relative who’s who of Chinese enterprises.

Among those reportedly targeted are Dalian Wanda, which owns the AMC Theaters chain in the United States and has been actively courting deals in Hollywood. High-flying insurance company Anbang, which owns New York’s Waldorf Astoria and Essex House hotels. Also on the list is Hainan Airlines, which bought a 25 percent stake in Hilton Hotels last year and another insurance company Fosun, which owns Cirque de Soleil and Club Med.

Over the past few years, China has seen massive amounts of capital moving overseas with companies and wealthy individuals buying assets abroad. Authorities began taking steps late last year to tighten controls. But many big conglomerates view foreign investment as a golden opportunity – given the low global interest rate environment – and worth the risk of highly-leveraged investments.

Peking University’s Gillis says it appears the Chinese government is coming to terms with how to effectively regulate private enterprises, companies that behave more aggressively than their state-owned counterparts. But he also sees the move as a further consolidation of power by President Xi Jinping, bringing companies more under the control of the central government.

“I think many of the companies had a pretty favorable treatment from prior administrations, and I think Xi Jinping is less enamored of these large private companies than some of his predecessors were.”

Expensive acquisitions by companies like Wanda and Anbang have thrust China into the global spotlight. But the news and commentary that followed the companies’ mega-deals has not always been positive.

In some cases, the deals have given China a black eye, says Fraser Howie, author of the Red Capitalism: The Fragile Financial Foundation of China’s Extraordinary Rise. Anbang’s attempt last year to purchase Starwood Hotels is one example, he says.

“This is high profile, global Bloomberg headline, Chinese company buys Starwood Group, next week it’s all off because the funding was never there, the due diligence could never be completed there, it made all Chinese bidders look horrible,” said Howie. “It looks dreadful for the party and for the leadership that these private entrepreneurs are running out there and yet China as a country is being impacted by it.”

Earlier this month, the head of Anbang was the latest to be swept up in the ongoing financial crackdown.

Regulating private spending?

Authorities so far have not said specifically what the targeted companies may have done wrong, if anything. Some analysts argue that the probe is just a part of a process that began six month ago to curtail the flight of capital from China.

“If cross-border M&A deals make sense, if they deliver strong returns, then there should be no problem either for bankers or those doing the buying. But, if Chinese groups overpay and get the money to do so from Chinese banks providing risky or underpriced loans, then Chinese regulators have an obligation to step in,” Peter Fuhrman, Chairman and Chief Executive Officer of China First Capital tells VOA in an emailed response.

Others see a deeper message about Xi Jinping’s view on the role that private companies should serve broader national goals.

Howie says the probe challenges assumptions about the role of private enterprises in China.

“If anyone ever thought these companies were truly private in the sense of being independent or beyond government reach. Clearly that was never true,” he says. “Everyone operates at the discretion of the Communist Party, even if you’ve done nothing wrong and clearly even if you are wealthy.”
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China let through the first shipments of beef from the United States in 14 years on Friday, after the two nations agreed to resume the trade in May, state media reported.

The imports were brought in by Cofco Meat Holdings Ltd from U.S. meat processor Tyson Foods Inc., China National Radio (CNR) reported on Friday, citing Beijing Entry-Exit Inspection and Quarantine Bureau.

China officially allowed U.S. beef imports from Tuesday this week after the two sides settled the conditions for exports last week.

Under the new rule, boneless and bone-in beef from cattle under 30 months of age will be eligible for imports. Beef destined for China must also be from cattle that can be traced to its birth farm, according to the rule.

Chinese importers are racing to bring in American beef to meet increasing demand for premium meat in the $2.6 billion beef import market.

Cofco’s imports, the first to have landed in China, will be sold on Cofco’s e-commerce platform Womai.com, according to CNR.

Arrivals of U.S. beef could erode sales of Australian beef in China’s lucrative premium meat market, as U.S. beef is expected to be cheaper because of low grain prices in the nation.
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Demeaning images in advertising of women doing domestic chores or scantily clad act as stubborn obstacles to gender equality, the head of U.N. Women said Thursday, urging the global ad industry to become a weapon for good.

Advertising has the power to create positive portrayals of women and eliminate stereotypes, Phumzile Mlambo-Ngcuka, executive director of the United Nations’ agency on women, told the Thomson Reuters Foundation.

Mlambo-Ngcuka spoke from France, where she is calling on advertising leaders who are attending the industry’s annual Cannes Lions Festival of Creativity to eliminate stereotypes and commit to gender equality.

“People are more likely to see adverts in their lives than read books,” she said. “It’s a waste if we are not using this opportunity for good.”

​Stereotypes everywhere

Stereotypes of women permeate the globe, she said, be it in nations such as Iceland with high gender equality or those with very little in the way of equal rights, like Yemen.

“Of the many things that we’ve tried to do to obtain gender equality, we are not getting the kind of traction and success that we are looking for, because of the underlying stereotypes and social norms in existence in society,” she said.

“Adverts create a role model that people look up to, even mimic and try to be like,” said the veteran South African politician.

“If they see men in powerful positions most of the time and do not see women and people who look like them … then they think this is not for them.”

Research illustrates issue

Research by the Geena Davis Institute on Gender in Media illustrates the issue, said Philip Thomas, chief executive of the annual advertising event in Cannes, who also participated in the interview with the Thomson Reuters Foundation.

One in 10 female characters in advertising is shown in sexually revealing clothing, six times the number of male characters, he said.

Of characters portrayed as intelligent, such as doctors or scientists, men are 62 percent more likely than women to play those roles, he said. Women are 48 percent more likely to be shown in the kitchen, he said.

Creative teams at advertising agencies are predominantly male, and just 11 percent of creative directors around the world are female, he said.

The industry can make an effort to mentor women, employ and promote more female creative teams and reward work that promotes positive images, he said.

Mlambo-Ngcuka said she welcomed efforts such as one in Berlin, where the city’s ruling coalition has agreed on a ban on degrading or sexist advertising.

An expert committee will examine and prevent discriminatory advertising on both privately and publicly owned advertising billboards and hoardings.

Opposition parties in Berlin say such a ban infringes on free speech.

“When it’s so much that is against us, I think we are allowed sometimes to make some extreme measures even if there’s a controversy,” she said. “Let’s have the discussion.”
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Minnesota’s government and businesses will continue to engage with Cuba in the areas they can, like agricultural trade, despite U.S. President Donald Trump’s partial rollback of the detente, Lieutenant Governor Tina Smith said on Thursday.

The first U.S. state representative to make an official visit to Communist-run Cuba since Trump’s announcement on Friday, Smith said authorities there were worried about the setback to bilateral relations.

Leading a bipartisan trade delegation from Minnesota, she said she was therefore glad to carry the message that there was still plenty of support for continuing to normalize relations.

“There is no denying the actions Trump took last Friday are a real setback,” Smith, a Democrat, said in an interview in the gardens of Havana’s iconic Hotel Nacional. “But the important thing to me is that there is bipartisan support at the federal level for normalizing and modernizing our relationship.”

U.S. Sen. Amy Klobuchar, a Minnesota Democrat, in May led a bipartisan coalition of lawmakers, including Republican Sen. Jeff Flake of Arizona, to introduce legislation to lift the U.S. trade embargo on Cuba.

Minnesota is one of the largest U.S. farming states, and Smith’s delegation included its agriculture commissioner and the head of its corn growers association. The delegation hopes to improve ties with and promote exports to Cuba.

U.S. farm groups have been particularly critical of the decision by Trump, a Republican, to retreat from Democratic predecessor Barack Obama’s opening toward Cuba, saying it could derail huge growth in agricultural exports that totaled $221 million last year.

U.S. law exempts food from a decades-old embargo on U.S. trade with Cuba, although cumbersome rules on executing transactions have made deals difficult and costly.

While Trump’s new Cuba policy does not directly target agriculture, it damages improved relations, the farm groups say.

Trump ordered tighter restrictions on Americans traveling to Cuba and a clampdown on U.S. business dealings with the island’s military, which manages much of the economy.

The Minnesota delegation met this week with officials of the Cuban ministries of foreign affairs and agriculture, while also visiting a cooperative and local food markets.

But the tour did not include the usual trip to the Mariel port and special development zone, which Cuba hopes will attract foreign investment and become a major shipping hub in the Caribbean. It is controlled by a military-affiliated company.

“In Minnesota we don’t have a lot of cocoa or coffee or pineapples, but we do have a lot of corn and beans,” Smith said. “We need each others’ products.”

Cuba invited the Minnesota delegation to a trade show later in the year, Smith said, while Minnesota invited Cuban officials to visit.

“I am very hopeful all of those things will lead us to a place where we can move forward.”
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JetSmart, a low-cost airline set to launch this year in Chile, said on Thursday it will offer one-way tickets for less than $2, as the nation’s passenger air market becomes increasingly competitive.

“We will have 30,000 tickets for 1,000 pesos ($1.50) per one-way trip plus taxes, to fly within Chile … in 2017,” JetSmart, owned by Indigo Partners, an airline-focused U.S. investment fund Indigo Partners, said on its website.

Indigo Partners has already carved out a niche in ultra-low-cost airlines and owns Mexican low-cost carrier Volaris and part of Denver-based Frontier Airlines.

Indigo is known for unbundled, or a la carte, fares that carry cheap base prices but charge additional fees for extras, such as carry-on bags too big to fit under the seat and advance seat assignments.

In February, Indigo announced that JetSmart would operate three Airbus A320s in Chile in 2017, and another six in 2018.

While the company will focus on domestic routes, it will eye opportunities for regional expansion once established in Chile, Indigo managing partner Bill Franke said at the time.

Chile’s airline market is dominated by LATAM Airlines, Latin America’s largest carrier, with a smaller share taken by established low-cost carrier Sky.

LATAM, which has been facing increasing pressure from low-cost airlines throughout the region, is rolling out a partial low-cost model this year.

Low-cost carrier Viva Air launched in Peru in May, low-cost airline Flybondi is set to launch later this year in Argentina, and Norwegian Air is set to launch long-haul, low-cost routes from Europe to Buenos Aires early next year.
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A booming plastics and packaging industry in Asia – including China – is being driven by rising incomes and consumption, with analysts saying a growing middle class will add to the rise in plastics demand across the region. But it comes along with a rising environmental alarm over plastic pollution in rivers and oceans.

Online plastics industry websites paint a picture of growth and trade and investment worth billions of dollars to Asian economies.

Robust plastics industry

China has been a regional leader in plastics production rising over the past six decades to capture more than a 20 percent share of global plastics production. Southeast Asia accounts for a further 20 percent of global output.

Economists at Australia’s ANZ Bank say global plastics consumption has roughly tripled over the past 20 years.

“In developing markets, population growth, rising disposable incomes, urbanization, and changing lifestyles will drive this demand even further, particularly for plastic packaging, building and construction, automotive and health care industries,” they said in a recent report.

Vietnam has reported an average growth of 18 percent in the plastics industry, with bags a leading export.

Within the 10 member Association of South East Asian Nations (ASEAN) plastics and plastic products netted the region almost $40 billion in export revenues in 2013.

Thailand is a regional leader in plastics per capita consumption of plastics at 40 kilograms. Malaysia reports 35 kilograms per person and Indonesia is at 17 kilograms per person.

Bad for environment

But the plastics and food packaging industries have a dark side. Plastic pollution in rivers and oceans has at times creating floating islands, and with floating debris and micro-plastics ingested by marine life.

In February, United Nations Environment “declared war on plastics pollution”, launching an “unprecedented” campaign targeting sources of marine litter, micro-plastics in cosmetics and excessive waste of single-use plastics by 2022.

A research paper published in the Nature Communications journal by the Ocean Cleanup – a Dutch Foundation, said between 1.15 and 2.41 million metric tons of plastic waste entered the oceans each year. “The top 20 polluting rivers, mostly in Asia, account for 67 percent of the global total,” the journal read.

China’s Yangtze River reported “considerably higher plastic concentrations” than any other sampled river worldwide” dumping 330,000 metric tons of plastic into the East China Sea. India’s Ganges river is also of major concern to environmentalists.

The U.N. Secretary General Antonio Guterres recently warned unless steps are taken to curb the pollution, plastics could outweigh fish by 2050.

Environmentalists estimate more than eight million tons of plastic ends up in the ocean, impacting ecosystems, killing around one million sea birds, some 100,000 sea mammals and millions of fish.

A U.N. Oceans Conference in early June called on nations to take steps on plastics consumption with China, Thailand, and Indonesia and the Philippines committing to reduce plastics consumption.

Thailand’s difficult task

Penchom Saetang, director of Thai–based Ecological Alert and Recovery Thailand (EARTH), said reducing Thai consumption of plastics will be a challenge.

“In my opinion, it’s very difficult because the Thai people are very familiar with the easy going way, easy to use plastics because in Thailand, Thailand is a country that consumers – we have a lot of food and we need plastic bags in every aspect of consumption. So to decrease the plastic is very, very difficult”, Penchom told VOA.

The government in Bangkok has sent out a 20 year strategy for tackling the problem.

But Greenpeace Thailand director, Tara Buakamsri, said although the Thai government has set out a plastic debris management plan, they should now focus on specific goals.

“On the one hand they are looking at a very holistic approach on how to deal with plastic waste. In the other hand they are missing something that is very important – they don’t have a specific target for reduction. It has to set a very ambitious target for this but they maybe it’s something I see missing from the plan,” Tara said.

 Food industry

New Zealand based environmental activist Anna Dawson spent three months in the Philippines in 2016. She cycled 2,000 kilometers on a bamboo bike scouring and cleaning beaches of plastics and supporting local communities to reduce plastics use.

Dawson says the food industry should be a target to reduce plastics use.

“The change has to start with food and how we go about eating food – that was probably from the beach cleanups the most clear statistic that came through whether it be compostable packaging or just encouraging people to eat more fresh fruit and veggies – market shopping instead of supermarket shopping,” Dawson told VOA.

Dawson said government policies should focus on reducing plastics production.
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Every 45 seconds or so, a neatly wrapped VanHeusen dress shirt destined for a J.C. Penney store in the United States drops off a new production line at a factory north of Vietnam’s capital.

Next door, rice paddies the size of 40 football fields have been filled for the $320 million textile mill which Hong Kong based TAL Group plans to build so it won’t need to import cloth for the shirts.

As elsewhere in Vietnam, there has been no sign of an impact on investment plans since U.S. President Donald Trump abandoned the proposed Trans Pacific Partnership (TPP) trade deal which had been expected to benefit Vietnam more than any country.

In fact, foreign direct investment rose 6 percent year-on-year to $6.15 billion in the first five months of 2017.

Cheap labor is an obvious lure for foreign investors. TAL’s chief executive, Roger Lee, said Vietnam also scores highly on middle management, work ethic and government policy.

Though the removal of U.S. import tariffs under a TPP pact would have been a bonus, Lee said he had no second thoughts about investment plans after Trump pulled out of the deal soon after taking office.

“Vietnam is a very compelling proposition,” said Lee.

The wage for garment workers is $250 a month in Vietnam, compared to $700 in China, where TAL recently shut a factory for cost reasons.

The removal of tariffs of up to about 30 percent would have made clothing firms particular beneficiaries of the TPP deal, which had been forecast to add 28 percent to Vietnam’s exports and 11 percent to its gross domestic product over a decade.

Other clothing firms were also not discouraged by the scrapping of the deal. Lawsgroup’s chief executive, Bosco Law, told Reuters it was now seeking to expand from its three factories with 10,000 workers.

Vietnam’s trade surplus over the United States – the sixth biggest last year – has come under scrutiny as a result of Trump’s “America First” policy to bring manufacturing jobs back to America. But it hasn’t discouraged investment.

“We have started working for a couple of American manufacturing companies that contacted us after the TPP’s demise and that are willing to relocate part of their operations from China,” said Oscar Mussons, Senior Associate at Dezan Shira and Associates professional services firm.

Cheaper than China

Vietnam has been a big winner as Chinese manufacturing costs have risen and China itself is now one of the three biggest investors in Vietnam.

The TPP deal would have further improved access to U.S. and other markets for manufacturers based there, but also bound Vietnam to reforms meaning everything from opening up food import markets to strengthening labour rights.

Investment and Planning Minister Nguyen Chi Dung told Reuters that Vietnam planned to go ahead with its commitments under TPP anyway – both to strengthen the economy and because of other trade deals, such as one with the European Union. The 11 remaining TPP members are also still trying to keep it alive.

Dung said Vietnam had a target of $10 billion a year in foreign direct investment over the next five years — compared to nearly $16 billion in 2016 alone — as it sought a change in the type of investment it wants to draw.

“Before we focused on quantity, now we switch to quality,” Dung said. “Higher technology, higher added value, less use of energy, less use of raw materials, less cheap labor.”

That is where Vietnam has a greater challenge. It lags competitors for top skills. The proportion of secondary school leavers going on to further studies is a third higher in China and over three times higher in South Korea.

“Vietnam is still a very attractive country, but companies might not invest as much as expected because they find the employees lack the skills for that added value,” Mussons said. “Companies have been too focused on reducing costs and not enough on training.”
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Military conflicts and growing threats around the world continue to underpin demand for weapons, but industry and government leaders from the United States, Europe, Russia and the Middle East say they don’t see a huge near-term spike in arms orders.

Executives report being busier than ever at this year’s Paris Airshow, the oldest and biggest aerospace expo in the world, which featured aerial acrobatics by Lockheed Martin Corp.’s F-35 fighter jet.

But they caution that foreign arms sales take years to complete, and NATO governments must get through lengthy budget and bureaucratic processes before they can raise military spending to meet a NATO target for members to spend 2 percent of gross domestic product (GDP) on defense.

No big spurt seen

“We’re seeing some growth, but I like to be pragmatic. I’m not seeing a big tick up in defense spending across the board,” Leanne Caret, who heads Boeing’s defense business, told Reuters in an interview. Her division generates about 40 percent of its revenues overseas, a big change from just several years ago.

Boeing officials expect steady gains in weapons sales, but warn against expectations for any kind of “gold rush” despite U.S. President Donald Trump’s pledge to boost military spending, saying there may be more of a shift in what platforms and weapons programs are in demand.

Recent increases in tensions between Russia and the United States have raised concerns about another arms race, but top officials in both countries agree that there will not be a mad rush to bulk up on weapons.

Moscow’s top arms trade official, Dmitry Shugaev, told reporters at the show that Russian weapon makers remained competitive despite Western sanctions, but the cyclical nature of the business and budget constraints are dampening prospects for a big surge in global arms sales.

He also expressed skepticism that NATO members would rapidly increase their military budgets, despite pledging to move toward the 2 percent goal.

Trump position

Trump’s public declarations that NATO members are not pulling their weight may have had some impact. Lockheed Martin’s Aeronautics business leader, Orlando Carvalho, said national security budgets and military systems’ demand outside the United States are beginning to increase, “especially with the focus that the president has put on NATO.”

In 2016, total world military expenditure rose 0.4 percent to $1.69 trillion, according the Stockholm International Peace Research Institute (SIPRI).

The European Union’s economic and financial affairs commissioner, Pierre Moscovici, also cited that risk, warning that European countries needed to match political pledges to boost military spending with actual resource commitments.

“There is now a window of opportunity for investing more in European defense … but as with all windows, a window closes if you don’t go through it,” he said.

Gradual increases in Europe

Germany and other European countries are boosting military spending, concerned about terrorism and Russia’s increasingly assertive military stance after its annexation of Crimea and its support for separatists in eastern Ukraine, but the increases are likely to be more gradual than dramatic.

In the missile defense arena, Western concerns about rapid advances in technology by North Korea, China and Iran, as well as Russia’s increased military activities, are driving orders for a range of defensive systems, according to U.S. and European executives.

“The threat is absolutely increasing and it’s increasing rapidly,” said Tim Cahill, vice president of air and missile defense systems at Lockheed. “In every region around the world, the level of interest in integrated air and missile defense has been going up in the last few months.”

Wes Kremer, president of Raytheon’s Integrated Defense Systems, said he was meeting with officials from countries that had not shown any interest in missile defense systems just four or five years ago.

“Back then, they didn’t see a ballistic missile threat, or they didn’t see Russia as a threat, but now that has changed,” he said.
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Webster Allen Two Hawk Jr. had not had a drink in six weeks – one of the conditions for getting a bed at the Rapid City, South Dakota rescue mission. But the 55-year-old Sicangu Lakota artist had received some bad news that cold day in March: All of his artwork had been stolen.

In his distress, Two Hawk got drunk with friends in a downtown park. When he returned to the mission to sleep, he was turned away.

“So, my brother sat down by some of those big electrical boxes near Memorial Park, probably to get a break from the wind,” said Castle LaCroix Kelly. “And that’s where they found him the next morning. Frozen to death in the snow,” she said.

South Dakota is home to nine federally recognized tribes, and its reservations are among the poorest in the country. Tribal members flock to Rapid City in search of jobs, but often end up on the streets.

The Black Hills Regional Homeless Coalition makes annual counts of Rapid City’s homeless population to gauge funding needs. This year, it counted more than 240, most of them Native American. But the numbers likely are much higher.

“We are unable to count those who are in jail, detox, living in hotels, doubled up, or ‘couch surfing.’ All of those situations are still situations of homelessness, and those individuals are living in situations that are far from appropriate, safe or ‘housed,’” said Anna Quinn, executive director of the HOPE Center, a faith-based group serving Rapid City’s homeless.

Mean streets

Shane Boudreaux, Sigangu Lakota, has been homeless several times, and knows firsthand how rough the streets can be.

In 2002, the National Coalition of the Homeless rated Rapid City the third most dangerous U.S. city for the homeless—especially Native Americans. Cut off from family and culture, they are vulnerable to alcohol, drugs and violence. Sometimes they are harassed by the locals. And sometimes their lives are cut short.

“One of my friends died here just a few weeks ago,” said Boudreaux. “They found him floating in Rapid Creek. Police said he was riding his bike and must have hit a railing and fallen off the bridge into the water.”

Homeless women are particularly at risk, said one Lakota woman who asked not to be named.

“I’ve been raped. I’ve had things thrown at me. I’ve had my purse ripped off my shoulder. I’ve been left behind by my boyfriend after getting beaten. I’ve been called names.”

She said she doesn’t believe authorities take these crimes seriously, and said local police are harder on Native Americans than other groups.

A 2015 study on race disparities in Rapid City policing showed more Native Americans are arrested than other group in the city, and that police were more likely to use force against Native Americans than any other race.

Rapid City Police Chief Karl Jegeris admitted to age-old tensions between Native Americans and the city’s population, but denied that his officers are heavy-handed.

“I think that in comparison to other cities that I’ve been to, I would say we’re a much safer city for our homeless population. We have a specialized street crimes unit that patrols downtown and park areas. We get to know the homeless on a first name basis and get along very well with them generally,” he said. “But there are certainly exceptions.”

When Native American homeless are arrested, Jegeris said, it is usually for low-level crimes, such as drinking in public or disorderly conduct. But more serious conflicts sometimes arise.

“Due to historic and generational trauma issues, there is a lot of distrust in the Native American community, especially toward authority figures,” he said. “And unfortunately, law enforcement is the most visible sign of government authority. So, we run into conflict somewhat regularly when we are just trying to help ensure general safety for that person.”

Investing in tribes

Rapid City is looking to expand services and shelters for the homeless. But the National American Indian Housing Council (NAIHC) believes the fundamental problem is the shortage of suitable housing on reservations.

“It’s a lot harder to get capital investment in these communities,” said NAIHC executive director Tony Waters. “Building homes on reservations is more expensive because of the lack of infrastructure in these areas. So, the budget cuts we’ve seen proposed by the administration this year certainly would be bad news for Indian Country.”

The Department of Housing and Urban Development (HUD) provides tribes with $650 million in housing grants, under obligation by historic treaties. President Donald Trump has proposed cutting that amount by $50 million, which Waters said would devastate communities already living in poverty.

Back in Rapid City, Anna Quinn worries about the fate of programs like the HOPE Center.

“Any reduction in budget would also be detrimental to those who are working so hard to help the homeless get out of their situations,” she said.
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Although Afghan businesses have long wanted to exploit the potential of India’s huge market, trade between the two countries has been hampered due to their tense relations with Pakistan.

But a plane loaded in Kabul with 60 tons of medicinal plants landed in New Delhi this week, raising hopes of giving a major boost to commerce between landlocked Afghanistan and India.

The flight flagged off the establishment of a new air cargo corridor between the two countries. Along with another, more long-term initiative to develop the Iranian port of Chabahar, India hopes to ease access to conflict-ridden Afghanistan and eventually to Central Asian countries.

Pakistan is a barrier

Pakistan allows Afghanistan to send a limited amount of perishable goods over its territory to India, through which the shortest and most cost effective land routes lie. However, India is not allowed to send any imports through Pakistani territory.

Indian Prime Minister Narendra Modi and Afghan President Ashraf Ghani decided to establish the air corridor last September after Pakistan rejected fresh calls by the Afghan leader to allow his country to engage in direct trade with India over its territory.

Although India is the second largest destination for exports from Afghanistan, this lack of easy access has been a dampener.

Air corridor trade

In New Delhi, officials hope the new corridor will boost annual trade between the two countries from $700 million to $1 billion in three years and give a lift to exports of Afghanistan’s agricultural and carpet industries.

A second flight is scheduled to land in New Delhi next week, bringing 40 tons of dried fruit from Kandahar.

At a ceremony marking the inaugural flight in Kabul on Monday, Afghan President Ashraf Ghani said he wants to make Afghanistan an exporter country.

“As long as we are not an exporter country, then poverty and instability will not be eliminated,” he said.

Indian foreign ministry officials say the connectivity will allow Afghan businessmen to leverage India’s economic growth and trade networks for its benefit and give farmers quick access to sell perishable products.

Does the air corridor trade have a viable future?

A prominent trader in New Delhi, Shyam Sunder Bansal, said he stopped trading with Afghan businesses several years ago due to the challenges such as transit routes, banking and currency facilities.

India is hoping to eventually extend air cargo flights to other cities. 

But Bansal is skeptical whether it will be commercially viable to sustain imports via air. “They cannot continue it forever because that will be unconventional, uneconomical,” he said.

However, a South Asia expert with the Indian Institute of Defense Studies and Analyses in New Delhi, Sukh Deo Muni, said since the distance involved is not too long, the air freight corridor could be viable.

He said New Delhi is committed to the project as it will open up access for India to not just Afghanistan but also Central Asian markets. According to Muni, “broader significance is to give two messages. We are committed to Afghanistan and we want to tell Pakistan, you cannot obstruct our access to Afghanistan and Central Asia. This is the long term view.”

Afghanistan mainly sends fresh and dried fruits, vegetables and oilseeds to India. It also takes a host of products from India — a flight from New Delhi has carried pharmaceuticals, water purifiers and medical equipment to Kabul as part of the initiative.

Indian foreign ministry spokesperson Gopal Baglay said the frequency of the air service would depend on demand. “It is, at the end of the day, a commercial venture which is supported very heavily, very strongly and very purposefully by both the governments.”

Land corridor through Iran

India has also initiated another key project to develop the Iranian port of Chabahar and open a direct transport corridor to Central Asia and Afghanistan bypassing Pakistan. This would also give Kabul an alternate route to the Indian Ocean, which currently uses the Pakistani port of Karachi for sea trade.

There was optimism last year that the project would take off, but it is barely making headway amid fresh worries that the U.S. administration under President Donald Trump may reimpose sanctions on Iran. 
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Travis Kalanick, the combative and troubled CEO of ride-hailing giant Uber, resigned Tuesday under pressure from investors.

The company’s board confirmed the move early Tuesday, saying in a statement that Kalanick is taking time to heal from the death of his mother in a boating accident -while giving the company room to fully embrace this new chapter in Uber’s history.” He will remain on the Uber Technologies Inc. board.

In a statement, Kalanick said his resignation would help Uber go back to building -rather than be distracted with another fight.”

The resignation came after a series of costly missteps by Kalanick and the fast-growing company that he helped found eight years ago. Uber on Monday embarked on a 180-day program to change its image by allowing riders to give drivers tips through the Uber app, something the company had resisted under Kalanick.

The San Francisco-based company is trying to reverse damage done to its reputation by revelations of sexual harassment in its offices, allegations of trade secrets theft and an investigation into efforts to mislead government regulators.

Uber’s board said in a statement that Kalanick had -always put Uber first.”

While building the world’s biggest ride-hailing service, Uber developed a reputation for ruthless tactics that have occasionally outraged government regulators, drivers, riders and its employees.

The company’s hard-charging style has led to legal trouble. The U.S. Justice Department is investigating Uber’s past usage of phony software designed to thwart regulators.

Uber also is fighting allegations that it relies on a key piece of technology stolen from Google spin-off Waymo to build self-driving cars.
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The United States Treasury Department announced additional sanctions Tuesday against Russia, pro-Russian separatists in eastern Ukraine, and individuals and companies associated with them.

The move comes on the heels of a White House meeting Tuesday between President Donald Trump and Ukrainian President Petro Poroshenko.

The increased sanctions is in response to continued Russian support for pro-Russian rebels in eastern Ukraine. Prior to his meeting with Trump, Poroshenko stressed the importance of taking such action before the U.S. president’s meeting with Russian leader Vladimir Putin.

The sanctions will target 38 individuals and business entities linked to the continuing conflict in eastern Ukraine. The penalties will remain in place until Russia meets the terms of 2014 and 2015 peace accords reached in Minsk, Belarus.

“These designations will maintain pressure on Russia to work toward a diplomatic process that guarantees Ukrainian sovereignty,” U.S. Treasury Secretary Steve Mnuchin said in a statement. “There should be no sanctions relief until Russia meets its obligations under the Minsk agreement.”

Among those sanctioned are two high-level Russian officials, Deputy Economy Minister Sergey Nazarov and Russian MP Alexander Babakov.

Nazarov, who oversees Russia’s humanitarian aid programs in separatist-controlled areas of Ukraine’s Donetsk and Luhansk regions, has been designated for materially assisting and sponsoring the separatist campaigns and advocating international investment in Crimea.

Babakov, Putin’s special liaison for expatriates, voted in favor of annexing Crimea in 2014 on the grounds that Moscow is obligated to represent ethnic Russians living abroad.

Russia’s largest arms producer, Kalashnikov Concern, has been designated along with a number of small Russian-owned banks for operating in Crimea, along with Oboronlogistyka, a Russian Defense Ministry subsidiary in charge of procurement and provisioning for the annexed Black Sea peninsula.

KPSK, one of Russia’s top corporate property underwriters, has been designated for insuring the Kerch Bridge project, which, if completed, would link Crimea and mainland Russia.

The action follows moves by lawmakers last week to pass a bill to limit the White House’s authority to lift sanctions against Russia without congressional approval. The bill passed with 98 votes in the Senate and now moves on to the House of Representatives.

The Trump administration had pushed back against the Senate bill.

“I would urge Congress to ensure any legislation allows the president to have the flexibility to adjust sanctions,” Secretary of State Rex Tillerson told lawmakers last week.

Ukrainian President Poroshenko said he received strong assurances of U.S. support for his country from Trump during Tuesday’s meeting.

Trump is expected to meet with Putin at the upcoming Group of 20 (G-20) summit slated for July 7-8 in Hamburg, Germany, under the theme “Shaping an Interconnected World.”

Oksana Bedratenko and Oleksiy Kuzmenko of VOA’s Ukrainian Service contributed to this article.
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It’s so hot in the southwestern United States that flights out of Phoenix, Arizona are being cancelled because of the extreme heat.

Temperatures on Tuesday were expected to reach 49C, which is too hot for some planes to operate.

American Airlines said it was going to cancel 38 flights leaving from Phoenix’s Sky Harbor airport during the hottest part of the day from 3 p.m. to 6 p.m.

Most of the cancelled flights were shorter distance, regional flights because of the smaller planes they utilize. One commonly used smaller jet, the Bombardier CRJ, has a maximum operating temperature of 48C.

The reason is that hot air is thinner than cold air and requires more speed in order to provide an airplane enough lift to take off. High-altitude airports face similar problems due to the thinner air.

According to a 2016 report from the International Civil Aviation Organization, high temperatures “have severe consequences for aircraft take-off performance, where high altitudes or short runways limit the payload or even the fuel-carrying capacity.”

Larger Boeing and Airbus jets can fly in temperatures as high as 53C.
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