EU Renews Call for Venezuelan Peace Talks

The European Union is pressing Venezuela’s government and opposition groups to resume negotiations toward peacefully resolving the political crisis that has convulsed the country for nearly two months.    

In a statement issued Monday, the EU repeated concerns it had expressed last July seeking “an urgent, constructive and effective dialogue.”

The EU’s current statement calls for “all Venezuelan political actors and institutions to work in a constructive manner” and to “avoid violent acts.” Since early April, at least 38 people have died and many more have been injured in clashes between opponents and backers of President Nicolas Maduro’s government. The EU statement called for investigating “all incidents of violence.”

Dissatisfied Venezuelans have taken to the streets to demand that the socialist Maduro schedule long-delayed elections, release political prisoners and permit the delivery of humanitarian aid. Their demonstrations, and those of Maduro’s backers, have escalated since the government-friendly Venezuelan Supreme Court’s late-March attempt to strip the National Assembly of its legislative powers and since Maduro’s May 1 call for a new constitution.

The EU has a direct stake in the conflict, its statement noted, “with more than 600,000 European citizens” living in Venezuela. The EU said it “reiterates its readiness to cooperate with the Venezuelan authorities” to ensure their safety.

Protests continue

On Monday, responding to a call for a nationwide sit-in, activists again barricaded streets and highways with lawn chairs, tree limbs and garbage.

“I’m here for the full 12 hours” of the sit-in, which started at 7 a.m., human resources worker Anelin Rojas, 30, told Reuters news service while perched cross-legged with a novel in the middle of Caracas’ main highway. “And I’ll be back every day there’s a protest, for as long as is necessary. Unfortunately, we are up against a dictatorship.”

Appeals to troops

Maduro repeatedly has accused the United States of leading an attempt to overthrow his government. He has ordered troops to block opposition marches, using equipment including tear gas, rubber bullets and water cannons.  

On Sunday, Maduro opponents sought to win over the troops to their way of thinking.

Dozens of women in black converged on the National Guard’s headquarters in Caracas, in a Mother’s Day appeal to the country’s armed forces to “listen to your mothers” and set aside weapons.

“Today, Venezuelan mothers have come to talk to the soldiers, to the National Guard, at all the barracks in Venezuela,” said former National Assembly lawmaker Maria Corina Machado, according to Reuters. These women are telling soldiers “not to obey orders from the dictatorship, from the dictator who has robbed food and brought blood to his country. Listen to your mothers!”

Separately, the head of the opposition-led National Assembly also urged security forces toward conversation, not combat.

Maduro “is pushing you as an institution to ignore the constitutional order of Venezuela and you have to stop that situation,” Julio Borges, the lawmaker, said at a news conference Sunday.

VOA Spanish Service correspondent Alvaro Algarra contributed to this report from Caracas.

Global Cyberattacks Appear to Ease, Except in Asia

The worldwide “ransomware” cyberattacks appeared to ease Monday, although thousands more computers, mostly in Asia, were hit as people signed in at work for the first time since the infections spread to 150 countries three days ago.

Health officials in Britain, where surgeries and doctors’ appointments in its national health care system had been severely impacted Friday, were still having problems Monday. But health minister Jeremy Hunt said it was “encouraging” that a second wave of attacks had not materialized.

He said “the level of criminal activity is at the lower end of the range that we had anticipated.”

In the United States, Tom Bossert, a homeland security adviser to President Donald Trump, told the ABC television network the global cybersecurity attack is something that “for right now, we’ve got under control.”

But he described the malware that paralyzed 200,000 computers running factories, banks, government agencies, hospitals and transportation systems across the globe as an “extremely serious threat.”

Cybersecurity experts say the unknown hackers behind the “WannaCry” ransomware attacks, who demanded $300 payments to decrypt files locked by the malware, used a vulnerability that came from U.S. government documents leaked online. The attacks exploited known vulnerabilities in older Microsoft computer operating systems.

During the weekend, Microsoft president Brad Smith said the clandestine U.S. National Security Agency had developed the code used in the attack.

Bossert said “criminals,” not the U.S. government, are responsible for the attacks. Experts believe Microsoft’s security patch released in March should protect networks if companies and individual users install it.

Russian President Vladimir Putin said his country had nothing to do with the attack and cited the Microsoft statement blaming the NSA for causing the worldwide cyberattack.

“A genie let out of a bottle of this kind, especially created by secret services, can then cause damage to its authors and creators,” Putin said while attending an international summit in Beijing. He said that while there was “no significant damage” to Russian institutions from the cyberattack, the incident was “worrisome.”

“There is nothing good in this and calls for concern,” he said.

Even though there appeared to be a diminished number of attacks Monday, computer outages still affected segments of life across the globe, especially in Asia, where Friday’s attacks occurred after business hours.

China

China said 29,000 institutions had been affected, along with hundreds of thousands of devices. Japan’s computer emergency response team said 2,000 computers at 600 locations were affected there.

Universities and other educational institutions appeared to be the hardest hit in China. China’s Xinhua News Agency said railway stations, mail delivery, gas stations, hospitals, office buildings, shopping malls and government services also were affected.

Elsewhere, Britain said seven of the 47 trusts that run its national health care system were still affected, with some surgeries and outpatient appointments canceled as a result. In France, auto manufacturer Renault said one of its plants that employs 3,500 workers stayed shut Monday as technicians dealt with the aftermath of the Friday attacks.

Security patches

Computer security experts have assured individual computer users who have kept their operating systems updated that they are relatively safe, but urged companies and governments to make sure they apply security patches or upgrade to newer systems.

They advised those whose networks have been effectively shut down by the ransomware attack not to make the payment demanded, the equivalent of $300, paid in the digital currency bitcoin.

However, the authors of the “WannaCry” ransomware attack told their victims the amount they must pay will double if they do not comply within three days of the original infection, by Monday in most cases. The hackers warned that they will delete all files on infected systems if no payment is received within seven days.

 

Gingerly, Deals Start Taking Shape Between Rivals China and Vietnam

Historic rivals China and Vietnam are working on substantive agreements that could cover trade, investment and maritime resource sharing despite a bitter sovereignty dispute that had snarled relations less than a year ago.

The Communist neighbors are inching toward new trade and investment ties that analysts say would help shore up overall relations. Some believe the two might later approach stickier topics such as joint use of disputed waters or humane treatment of each other’s fishermen. The two countries still contest sovereignty over tracts of the vast, resource-rich South China Sea east of Vietnam and southwest of Hong Kong.

Prospects of some kind of agreement came into focus during Vietnamese President Tran Dai Quang’s visit to China, which ends Monday. He suggested the two sides work on complementing each other’s trade and investment advantages with a view toward improving overall relations, state media from Hanoi said.

“President Quang is in China, and China promised a lot,” said Yun Sun, senior associate with the East Asia Program under Washington-based think tank the Stimson Center. “From an economic point of view, it is certainly practical and beneficial for Vietnam to have some sort of deal, but then again I think this still relatively early to tell.”

In a meeting with Quang Thursday, Chinese President Xi Jinping called for more cross-border economic cooperation zones and joint infrastructure building, according to  China’s official Xinhua News Agency reported. China pledged to “mitigate” its trade deficit with Vietnam and increase direct investment, Sun said.

“Talking probably does help lower tensions and improve the odds of things happening,” said Alaistair Chan, an economist covering China for Moody’s Analytics.

The Vietnamese president suggested China finalize rules on opening the Chinese market for farm products, dairy and seafood, media outlet vietnamnet.vn said. He also called on China to make more “preferential loans” and urged a working group to develop renewable energy investment projects that play on China’s strengths and demand in Vietnam, the Vietnamese news report said.

On Friday companies from both countries signed agreements on milk distribution, tourism and rice processing.

China is the largest trade partner of Vietnam, with imports and exports worth about $72 billion last year. Vietnam also calls China one of the top 10 investors in the country.

But both countries are likely to hedge on letting outsiders invest in infrastructure, a possible source of direct investment, Chan said. “If they can get there purely on trade and stay away from investment, a touchy subject in both countries, I think that’s probably where they can get their quickest gain,” he said.

China and Vietnam stepped up dialogue after July 2016, when a world arbitration court ruled that Beijing lacked a legal basis to claim more than 90 percent of the sea, a boon to rival claimants in Southeast Asia: Vietnam, Brunei, Malaysia and the Philippines. China responded to the ruling by seeking one-on-one dialogue with each country. Vietnam was one of the most hostile toward China before the court ruling.

Beijing and Hanoi dispute sovereignty over much of the 3.5 million-square-kilometer sea, including two chains of tiny islets. Beijing’s go-ahead for a Chinese oil rig in contested waters set off a clash in 2014. The two countries also still face distrust fanned by centuries of political rivalry as well as a border war in 1979.

Both countries stake their fast-growing economies on export manufacturing. Vietnamese companies resent China for using their larger production scales to sell goods in bulk at relatively low prices.

Relations got a lift in September when the Chinese premier and Vietnamese prime minister agreed to manage maritime differences. Vietnamese Communist Party General Secretary Nguyen Phu Trong visited China in January to help smooth relations.

Another boost came as China emerged last year as the top single-country source of tourism for Vietnam. About 2.2 million Chinese visited Vietnam from January to October. Chinese tourists have reshaped the economies of Hong Kong and Taiwan over the past decade.

Agreements on managing disputed tracts of the South China Sea may come later if the two sides keep getting along, experts say.

Vietnam and China have agreed to an “informal” median line in the tract of sea where their claims overlap, said Carl Thayer, Southeast Asia-specialized emeritus professor of politics at The University of New South Wales in Australia. They might eventually work on expanding joint exploration for oil under the seabed and a way to ensure “humane” treatment of fishermen, he said.

“It’s to stop the ramming, boarding, seizing fish catches and radio equipment and in the old days taking them hostages for money,” Thayer said. Under a human treatment agreement, he said, “If you find them, you report them to the other side and return them rather than bash them up and take everything.”

Austrian Party Picks New Leader, Early Elections Likely

Austria’s junior government coalition partner chose a new leader Sunday and gave him the unprecedented authority he demanded as a condition for leading his party into expected early elections this fall.

Foreign Minister Sebastian Kurz told reporters that senior officials of his People’s Party agreed to let him choose all ministers of any government he would head, as well as to nominate candidates for parliament that would include party outsiders.

Speaking after a closed meeting, Kurz said that the gathering also agreed to contest at least the next elections under a name change. Instead of the People’s Party, Kurz and other candidates would now run under the “List Sebastian Kurz – the new People’s Party.”

“We have decided to start a movement,” Kurz told reporters.  “We’re going to rely on proven forces from within the People’s Party, but at the same time we’re going to bring new people on board.”

The power grab is significant in a party where provincial governors have historically had an outsize say in running federal affairs, including pushing through ministerial appointments and overriding major policy decisions by the federal leader.

With few exceptions, that has led party heads to resign in frustration in recent decades. The latest, Reinhold Mitterlehner, threw in the towel Wednesday after less than three years as party leader and vice chancellor.

The center-right People’s Party is now a distant third among voters. But Kurz, a telegenic 30-year old, regularly tops political popularity polls.

That is due in part for his embrace of a harder line on immigrants and other positions of the right-wing Freedom Party, which leads in voter support. But he avoids that party’s xenophobic polemics, as he walks the line between keeping People’s Party supporters and attracting Freedom Party backers.

Acceptance of Kurz’s demands reflects recognition by the party’s power-brokers that refusal would mean an almost certain slide in voter support.

The often cantankerous People’s Party-Social Democratic coalition has shown increased signs of fraying over the past months. Still, Social Democratic Chancellor Christian Kern had resisted People’s Party calls to move up elections from next year.

But as People’s Party officials gathered Sunday he told state broadcaster ORF: “I assume that there will certainly be an election this fall.”

With Macron, Paris 2024 Olympic Bid Is ‘Ready Right Now’

Paris bid leaders want to capitalize on the sense of optimism surrounding new President Emmanuel Macron to beat Los Angeles and secure the Olympic Games in 2024 — not 2028.

With the IOC currently assessing a proposal to award the next two Olympics — one to each city — Paris officials insist the French capital city is the right choice for 2024.

The 39-year-old Macron, France’s youngest-ever president, officially took office on Sunday as the IOC evaluation commission started a three-day visit to Paris.

“Our team has a new member, the new President of France, Emmanuel Macron,” bid leader Tony Estanguet said on Sunday. “He’s been a fantastic supporter of our bid from the beginning. He will be with us all the way to Lima and hopefully beyond.”

Los Angeles and Paris are the only two bidders left for the 2024 Games, which will be awarded in September at a meeting of Olympic leaders in Peru. The race began with five cities, but Rome, Hamburg, Germany, and Budapest, Hungary, all pulled out.

The IOC has four vice presidents looking into the prospect of awarding the 2024 and 2028 Games at the same time in September.

“We have one goal during these few days: to convince you that Paris is the right city, with the right vision, at the right moment,” Paris mayor Anne Hidalgo said. “The right city with world-class venues and accommodation, and the best public transport in the world, ready right now.”

International Olympic Committee members were in Los Angeles earlier this week to meet with the U.S. bid leaders and inspect their planned venues. While Los Angeles Mayor Eric Garcetti appeared at least willing to consider hosting the 2028 Olympics if the city isn’t awarded its first choice of 2024, Hidalgo said Paris is set for the earlier edition.

“With financial and political stability and support, we are ready right now,” Hidalgo said. “At the right moment, as the no risk option.”

Patrick Baumann, the chair of the IOC evaluation commission, said Sunday’s discussions with Paris leaders focused solely on their project for 2024.

“Right now we are still in a process where we assess a potential candidacy for 2024,” Baumann told a press conference. “2024-2028 was not a matter of discussion.” 

The French government has pledged one billion euros ($1.1 billion) of support for the Paris bid and Macron is expected to confirm that amount. If Paris is awarded the 2024 Games, the infrastructure budget is expected to total 3 billion euros, with operational costs of 3.2 billion euros.

Paris is also betting on the compactness of its plans to make the difference. According to the bid dossier, 84 percent of the athletes will be able to reach their competition venues in less than 25 minutes, and more than 70 percent of the proposed venues are existing facilities, with a further 25 percent relying on temporary structures.

Paris, which last staged the Olympics in 1924, failed in bids for the 1992, 2008, and 2012 Games.

With the pro-business and pro-EU Macron, Paris bid leaders have a strong supporter. The new president has already thrown his weight behind Paris’ bid, telling IOC President Thomas Bach over the phone of its “expected benefits for all French people.”    

Macron did not attend Sunday’s night gala dinner with IOC members in Paris but invited the evaluation commission on Tuesday to the Elysee Palace before they leave.

Meanwhile, the Paris team added another high-profile figure to their list of backers on Sunday as it unveiled France soccer great Zinedine Zidane as their latest ambassador.

“I was involved in several bids, but this one is really close to our hearts,” said Zidane, who also supported the Qatar bid to host soccer’s 2022 World Cup and was involved in Paris’s 2008 and 2012 failed bids.  

IOC members started their visit with a full day of discussions on Paris’ proposals that will be followed by venue visits on Monday and further meetings on the final day.

“Our friends of Paris 2024 presented us with an exceptional and well detailed bid presentation,” Baumann said. “We have two cities with a wonderful Olympic spirit. It’s difficult to give them less than 10 out of 10.”

Merkel’s Conservatives Win German State Election

German Chancellor Angela Merkel’s conservatives defeated their center-left rivals in a key state election Sunday in the country’s most populous region.

Exit polls showed Merkel’s Christian Democratic Union with a strong surge of support in North Rhine-Westphalia, the home state and traditional stronghold of her chief rival, Social Democrat Martin Schulz, who is challenging the German leader in the national election in late September.

Schulz conceded Sunday’s loss, saying, “This is a difficult day for the Social Democrats, a difficult day for me personally as well.  I come from the state in which we took a really stinging defeat today.”

He urged his party to focus on the September 24 vote, saying, “We will sharpen our profile further.  We have to as well.”

The exit polls showed the Christian Democrats winning 34.5 percent of the vote in North Rhine-Westphalia, home to 17.9 million people, nearly a quarter of the German population, with the Social Democrats at 30.5 percent.  Other parties trailed far behind the two leaders.

The conservatives’ general-secretary, Peter Tauber, said the Christian Democratic Union “has won the heartland of the Social Democrats.”

 

 

 

 

 

 

 

 

 

 

 

 

 

Xi Pledges Billions for New Silk Road Infrastructure

Chinese President Xi Jinping pledged $124 billion Sunday for his ambitious new Silk Road plan to forge a path of peace, inclusiveness and free trade, and called for the abandonment of old models based on rivalry and diplomatic power games.

China has touted what it formally calls the Belt and Road initiative as a new way to boost global development since Xi unveiled the plan in 2013, aiming to expand links between Asia, Africa, Europe and beyond underpinned by billions of dollars in infrastructure investment.

China’s most important diplomatic event of the year, the two-day summit offers Xi another chance to bolster China’s global leadership ambitions as U.S. President Donald Trump promotes “America First” and questions existing global free trade initiatives like NAFTA.

Trade and economic development

“We should build an open platform of cooperation and uphold and grow an open world economy,” Xi told the opening of the summit.

Xi said the world must create conditions that promote open development and encourage the building of systems of “fair, reasonable and transparent global trade and investment rules.”

 “Trade is the important engine of economic development,” Xi said.

He said the world must promote the multilateral trade system, the establishment of free trade regions, and the facilitation of free trade.

Big funding boost

Xi pledged a massive funding boost to the new Silk Road, including an extra 100 billion yuan ($14.50 billion) into the existing Silk Road Fund, 380 billion in loans from two policy banks and 60 billion yuan in aid to developing countries and international institutions in new Silk Road countries.

In addition, Xi said China would encourage financial institutions to expand their overseas yuan fund businesses to the tune of 300 billion yuan.

Xi did not give a timeframe for the new loans, aid and funding pledged Sunday. Leaders from 29 countries are attending the forum, which ends Monday.

Western unease

Some Western diplomats have expressed unease about both the summit and the plan as a whole, seeing it as an attempt to promote Chinese influence globally.

China has rejected criticism of the plan and the summit, saying the scheme is open to all, is a win-win, and aimed only at promoting prosperity.

“What we hope to create is a big family of harmonious co-existence,” Xi said, adding pursuit of the initiative will not resort to outdated geopolitical maneuvering.

“China is willing to share its development experience with all countries. We will not interfere in other countries’ internal affairs. We will not export our system of society and development model, and even more will not impose our views on others,” Xi said.

“In advancing the Belt and Road, we will not retread the old path of games between foes,” he said. “Instead we will create a new model of cooperation and mutual benefit.”

Xi: Road open to all

Xi said the new Silk Road would be open to all, including Africa and the Americas, which are not situated on the traditional Silk Road.

“No matter if they are from Asia and Europe, or Africa or the Americas, they are all cooperative partners in building the Belt and Road,” he said.

Some of China’s most reliable allies and partners are at the forum, including Russian President Vladimir Putin, Pakistani Prime Minister Nawaz Sharif, Cambodian Prime Minister Hun Sen and Kazakh President Nursultan Nazarbayev.

There are also several European leaders attending, including the prime ministers of Spain, Italy, Greece and Hungary.

Mauno Koivisto, Former Finnish President, Dies at 93

Former President Mauno Koivisto, who in the 1980s and 1990s guided Finland from the shadow of the crumbling Soviet Union and into the European Union, has died at a hospital in Helsinki. He was 93.

The office of the Finnish presidency announced the death early Saturday. Koivisto’s wife, Tellervo, said earlier this year that he suffered from Alzheimer’s disease.

The son of a ship’s carpenter, Koivisto, a Social Democrat, served two six-year presidential terms between 1982 and 1994, a tumultuous period that followed the 25-year presidential reign of Urho Kekkonen. He earlier served twice as prime minister, from 1968 to 1970 and 1979 to 1982.

Koivisto is widely credited as president with strengthening the role of parliament, after his nationalist predecessor consolidated much political power within the office of the presidency.

Koivisto is also broadly acknowledged for building strong ties with the last Soviet president, Mikhail Gorbachev, while also establishing rapport with U.S. President George H.W. Bush as Europe began in the late 1980s to witness the beginning of the end of communism. He also maintained strong ties with Bush’s predecessor, Ronald Reagan.

In a statement Saturday, President Sauli Niinisto described Koivisto as a leader in “the generation that took part in wars and [the] following rebuilding, and which guided Finland to the path of current success and well-being.”

In his last interview four years ago, Koivisto was asked by the Helsingin Sanomat newspaper to summarize what he viewed as important in life.

“In life, it is generally wise to trust that everything will go well. It often pays off, even if you wouldn’t have believed” it would, he said.

Portugal’s Sobral Wins Eurovision Contest With Tender Ballad

Portugal’s Salvador Sobral won the Eurovision Song Contest on Saturday with a gentle romantic ballad that challenged the event’s decades-long reputation for cheesy, glittery excess.

Sobral sang his Amar Pelos Dois (Love For Both) in a high, clear tenor accompanied by quiet strings and a piano. Unlike the 25 other competitors who performed on a wide stage backed by flashing lights, bursts of flames and other effects, Sobral sang from a small elevated circle in the middle of the crowd, an intimate contrast to others’ bombast.

“Music is not fireworks, music is feeling,” he said while accepting the award.

Runner-up Kristian Kostov of Bulgaria wasn’t short on feeling — his power-ballad “Beautiful Mess” was awash in melodrama, the singer appearing almost wrung out by romantic turmoil.

Moldova’s Sunstroke Project finished a surprising third, with a bouncy, jazzy song called “Hey Mama”‘ that featured a clever stage routine in which the female backup singers hid their microphones in bridal bouquets.

Francesco Gabbani of Italy had led bookmakers’ tallies for most of the days leading up to the final, but he ended up placing sixth even though his act seemed the epitome of Eurovision’s cheerfully tacky aesthetics — singing a driving number about spirituality while accompanied by someone in a gorilla suit.

Eurovision, in its 62nd year, is aimed at apolitical entertainment. But the sweet intentions were soured this year when Russia’s participation was scuttled by host Ukraine over the two nations’ diplomatic and military conflict.

Russia is one of Eurovision’s heavy hitters, tied with Sweden for the most top-five finishes this century. But this year’s Russian entrant, Yuliya Samoylova, was blocked from competing by Ukraine because she had toured in Crimea after Russia’s 2014 annexation of the peninsula.

In response, Russia’s state-owned Channel 1 television is refusing to broadcast the contest, replacing Saturday’s final with a screening of the film “Alien.”

The Moscow-Kyiv split is a headache for Eurovision’s producer, the European Broadcasting Union, which strives mightily to keep pop and politics separate. Overtly political flags and banners are banned, and lyrics are monitored for provocative content.

In 2009, the EBU nixed the Georgian entry “We Don’t Wanna Put In,” a dig at Russian President Vladimir Putin. The union, however, has been criticized for not barring “1944” last year, allowing Russia-Ukraine tensions to fester.

The acrimony is ironic, since Eurovision was founded in 1956 to bring the recently warring countries of Europe together. It launched a year before the foundation of the European Economic Community, forerunner of the European Union.

From its launch with seven countries, Eurovision has grown to include more than 40, including non-European nations such as Israel and — somewhat controversially — far-off Australia.

The contest helped launch the careers of Sweden’s ABBA — victors in 1974 with “Waterloo” — Canada’s Celine Dion, who won for Switzerland in 1988, and Irish high-steppers Riverdance, the halftime entertainment in 1994.

Mnuchin Says G-7 Nations More Comfortable With New US Economic Approach

U.S. Treasury Secretary Steven Mnuchin said Saturday after meeting with officials from the world’s other industrialized democracies that he thought they were more at ease with Donald Trump’s economic policies.

“People are more comfortable today, now that they’ve had the opportunity to spend time with me and listen to the president and hear our economic message,” Mnuchin said after a two-day meeting in Bari, Italy, with members of the Group of Seven, industrialized nations commonly known as the G-7.

Officials from the G-7 countries hoped to learn more about the U.S. president’s plans, which they feared would revive protectionist policies and result in a global regression on issues such as banking reform and climate change.

After the meeting, officials from Japan and member European countries remained concerned about the economic shift in Washington, particularly after Mnuchin said the U.S. reserved the right to be protectionist if it thought trade was not free or fair.

“All the six others … said explicitly, and some very directly, to the representatives of the U.S. administration that it is absolutely necessary to continue with the same spirit of international cooperation,” said French Finance Minister Michel Sapin.

Don’t ‘backpedal’ on free trade

Bank of France Governor Francois Villeroy de Galhau said continued uncertainty about U.S. policy could dampen optimism within the G-7 about the global economy’s gradual recovery from the financial crisis that began nearly a decade ago.

De Galhau echoed the sentiments of Japanese Finance Minister Taro Aso, who said, “We must not backpedal on free trade, as it has contributed to economic prosperity.”

European officials complained that the U.S. meaning of “fair trade” remained unclear and that the only way to establish fairness was to abide by the multilateral framework developed by the World Trade Organization.

A senior Japanese Finance Ministry official said the most significant question pertained to Trump’s U.S. tax cut proposal that could fuel America’s economic recovery.

Trump has proposed slashing the U.S. corporate income tax rate and offer multinational businesses a steep tax break on overseas profits brought back to the U.S.

The G-7 is composed of Britain, Canada, France, Germany, Italy, Japan and the U.S.

Russia Seeks Investment, Trade Links on China’s New ‘Silk Road’

Russia’s President Vladimir Putin is heading to China Sunday to join leaders of 27 other nations at the One Belt, One Road (OBOR) summit in Beijing.

The massive China-led project aims to revive the ancient Silk Road and maritime trade routes by expanding investment in infrastructure linking Asia, Africa and Europe.

While China plans to invest tens of billions of dollars in the ambitious vision, few details have been made clear on how the project will proceed.

Russia wants investment

A lack of specifics and long-term prospects for the project has led some observers to conclude China’s new Silk Road so far is about politics and symbolism. But analysts in Moscow say Russia is mainly in it for the money.

“First, Russia’s economy desires foreign investments and it hopes to get some funds through OBOR,” said Petr Topychkanov of the Carnegie Moscow Center. “Second, Russia wants to bring new drive to the dying Eurasian Economic Union by connecting it with OBOR. Third, Russia wants to compensate the vanished economic agenda of the SCO (Shanghai Cooperation Organization) with the Chinese-led OBOR. Fourth, Russia wants to make European countries more nervous with the prospects of Russian-Chinese economic cooperation.”

China in the last few years has invested more than $300 billion in projects in One Belt, One Road countries, and Chinese officials say more than 50 agreements will be signed at next week’s meetings in Beijing.

Leaders attending the summit include the other two founding members of the struggling Russia-led Eurasian Economic Union (EAEU), Belarus and Kazakhstan.

“Russian interest in the OBOR project in general is attracting additional Chinese investment into the Russian infrastructure and industry sectors,” said Vasily Kashin, a senior research fellow at the Center for Comprehensive European and International Studies at Moscow’s Higher School of Economics. “Russia is also trying to achieve a high level of coordination between the Chinese OBOR policy and the Russian policy concerning the Eurasian Economic Union.”

Russia established the EAEU in 2015 with the aim of integrating economies of former Soviet states. However, critics say the Kremlin uses the group for geopolitics and influence, and other members have shown little interest in deepening economic ties.

Russia looking east?

Western sanctions against Russia over its military involvement in Ukraine have led some Russian officials and analysts to say Moscow will pivot to the east for its political and economic future.

“China did provide significant loans for the Russian state-owned companies currently under the Western sanctions, helping them a lot,” Kashin said.

Russia-China trade is recovering from a 2014-2015 slump and was up 26 percent in the first quarter of 2017, to nearly $25 billion. China’s exports to Russia rose 22 percent while China’s imports from Russia were up 30 percent in the first four months of this year.

“China is Russia’s most important individual trading partner. Its share is growing, and it is already a significant source of investment, loans and technology. However, it will take China a long time to overtake the EU in these roles,” Kashin added.

There has been no dramatic pivot by Russia away from the West and toward the East, but there is a gradual trend for trade in that direction.

“The share of the APEC countries, not just China, but Japan and Korea as well, in Russian trade has been growing at the expense of the EU for a long time,” Kashin said. “The process did speed up after the beginning of the Ukrainian crisis, but not dramatically. Turn to the East is inevitable since the European market for Russian commodities will likely have long-term negative growth, because of EU economic stagnation and industrial decline.

“However, building the necessary infrastructure and negotiating the trade deals with the Asian countries will take Russia years,” economic researcher Kashin added. “The historical dependence on the single European market will be overcome, probably at some point in the late 2020s to early 2030s.”

Developing relationship

Russia-China relations are developing steadily but are sometimes exaggerated by Russian officials for propaganda purposes.

“The leaders of Russia and China came to a point where they clearly realized the possibilities and limits of bilateral relations,” Topychkanov said. “Despite comments from some experts about the possibility of any kind of union between Russia and China — let it be political, economic, or military — there is no chance for such a union.

“Even the bilateral trust between both countries isn’t limitless,” the Carnegie associate added. “In short, Russia and China value the visibility of friendship between them, but they can’t transform it in deep-rooted strategic relationships and long-term, mutually beneficial economic cooperation.”

China’s New Silk Road initiative has attracted more interest as the United States under President Donald Trump has looked inward and pulled out of global trade deals.

But Russia does not see OBOR as a future substitute or even competitor for trade pacts like the formerly U.S.-led Trans-Pacific Partnership.

“I doubt, that Russian officials think about OBOR and Russia in the context of global trade,” Topychkanov said. “For Moscow this remains to be the issue of both bilateral cooperation with China and regional economic networks.”

Olga Pavlova​ contributed to this report.

Europol Working on Probe Into Massive Cyberattack

The European Union’s police agency, Europol, says it is working with countries hit by the global ransomware cyberattack to rein in the threat and help victims.

In a statement Saturday, Europol’s European Cybercrime Center, known as EC3, said the attack “is at an unprecedented level and will require a complex international investigation to identify the culprits.”

EC3 says its Joint Cybercrime Action Taskforce, made up of experts in high-tech crime, “is specially designed to assist in such investigations and will play an important role in supporting the investigation.”

The attack, which locked up computers and held users’ files for ransom, was believed the biggest of its kind ever recorded.

Britain’s National Cyber Security Center says teams are working “round the clock” to restore hospital computer systems that forced hospitals to cancel and delay treatment for patients.

British Home Secretary Amber Rudd said Saturday that 45 public health organizations were hit, but she stressed that no patient data had been stolen.

Germany’s national railway says that departure and arrival display screens at its stations were hit Friday night by the attack. The company said it deployed extra staff to busy stations to provide customer information, and recommended that passengers check its website or app for information on their connections.

The railway said that there was no impact on actual train services.

Several cybersecurity firms said they had identified the malicious software behind the attack, which has apparently hit Russia the hardest.

Johnson: Russian Hacking of British Election ‘Realistic Possibility’

There is a “realistic possibility” Russia might try to interfere in Britain’s national election next month, Boris Johnson, Britain’s foreign secretary, said.

In an interview with The Telegraph newspaper published Saturday, the Conservative politician also said Russian President Vladimir Putin would “rejoice” if Jeremy Corbyn’s Labor Party won the June 8 election.

Referring to Putin, Johnson said: “Clearly we think that is what he did in America, it’s blatantly obvious that’s what he did in France [where incoming president Emmanuel Macron’s emails were hacked], in the western Balkans he is up to all sorts of sordid enterprises, so we have to be vigilant.”

He said Putin wanted “to undermine faith in democracy altogether and to discredit the whole democratic process.” On Friday, Britain’s health system was subjected to a major cyber attack.

Johnson also told The Telegraph that rather than Britain having to pay a divorce bill for leaving the European Union, the EU could end up having to pay Britain because it had contributed to so many EU assets.

“They are going to try to bleed this country white with their bill,” he said.

Earlier this month, the Financial Times reported the EU might seek an upfront payment in 2019 of up to 100 billion euros ($109 billion). That sum was immediately rejected by British ministers.

Companies Affected by Global Cyber Attack

A global cyber attack on Friday affected British hospitals, government agencies and companies in 99 countries, with Russia, Ukraine and Taiwan the top targets, security software maker Avast said.

Hacking tools widely believed by researchers to have been developed by the U.S. National Security Agency that were leaked online last month appear to have been leveraged to launch the attacks.

Around 1,000 computers at the Russian Interior Ministry were affected by the cyber attack, a spokeswoman for the ministry told Interfax.

Some of the companies affected:

FedEx Corp

Telefonica SA

Portugal Telecom

Telefonica Argentina

By the Numbers: China’s Chase of ‘Golden Visa’ Abroad

From the United States and Canada to small islands in Europe and the Caribbean, Chinese are spending billions on new passports and visas to move their families away from their homeland.

China’s middle and upper classes are demanding better schools, cleaner air and a more secure life for their children. And as China gets wealthier, millions of families have the means to purchase a new life elsewhere.

 

Their demand has transformed a once obscure market for immigration by investment. To study China’s impact, the Associated Press collected statistics from 13 countries that offer citizenship or permanent residency for a price.

Here’s a look at AP’s analysis of the market, by the numbers.

China’s favorite programs

Consulting firms in China’s biggest cities hawk investor visa programs in weekly sessions at hotels and on social media. The market leader is the United States, as urban Chinese are widely familiar with American schools and culture.

 

Here are the five countries in the AP’s analysis with the most visas issued to Chinese investors and their families in the last decade:

— 43,448: the United States’ investment visa program, known as EB-5.

— 35,278: Canada’s investment bond programs, including a program offered by the province of Quebec.

— 7,875: Portugal’s “golden visa” program for real estate investors.

 

— 6,405: Hungary’s residence bond program, recently suspended by the government.

— 4,640: Australia’s program for high-dollar “significant investors.”

 

What they buy

Depending on the country, Chinese investors looking for a second home can join business projects, invest in bonds or make an outright payment to the government. Currency conversions are as of May 11.

 

— $250,000: the minimum price of citizenship in Antigua & Barbuda for an investor who donates to the island government’s development fund and pays a $50,000 government fee.

 

— $380,000 (350,000 euro): the minimum value of real estate investors must purchase in Portugal’s “golden visa” program.

 

— $500,000: the minimum business investment in the United States’ EB-5 program, with a “green card” given to investors whose money creates or saves 10 jobs.

 

— $584,000 (800,000 Canadian dollars): the minimum amount of interest-free investment to be made or financed for residence in the Canadian province of Quebec. (Canada closed a similar national program in 2014.)

 

— $3.7 million (5 million Australian dollars): the required investment in Australia’s Significant Investor Visa program in a mix of developing businesses and funds as defined by the government. Australia’s program is by far the most expensive in the AP survey.

 

What they spent

To understand how China has changed the global investor migration market, the AP estimated how much Chinese families have invested at a minimum in foreign countries for a visa or passport. The AP multiplied the number of investors, excluding family members, by the minimum investment level for each year, in each program for the last decade. In some cases, the AP estimated the number of investors with the help of government data or experts on investment migration.  

 

The figures below are an undercount because some investors put in more than what’s required. Investment amounts for each year were converted to U.S. dollars based on the average exchange rate that year. The figures have not been adjusted for inflation.

 

— $7.7 billion: estimated minimum investment in the United States through the EB-5 program.

 

— $6 billion: estimated minimum investment in Australia through its Significant Investor Visa program.

— $4.3 billion: estimated minimum investment in Canada, including Quebec, through its immigrant investor programs.

— $1.96 billion: estimated minimum investment in the United Kingdom through its Tier 1 investor program.

— $1.71 billion: estimated minimum investment in New Zealand through its investor and entrepreneur programs.

US to Attend China’s Belt and Road Forum

In a move that is likely to give a boost to China’s Belt and Road Forum, the United States has announced that it will participate in meetings on the initiative beginning this weekend in Beijing.

The decision to attend is part of a 100-day plan and new deal between Washington and Beijing that was initially hammered out when President Donald Trump and China’s President Xi Jinping met early last month in Florida.

The interagency delegation from Washington will be led by Matthew Pottinger, a top adviser to the Trump administration and National Security Council senior director for East Asia. China is pleased with the decision.

“We welcome all countries to attend. And we welcome the United States’ attendance as the world’s largest economy in the relevant activities of the Belt and Road initiative,” said Vice Finance Minister Zhu Guangyao.

Fact and fiction

China has long been playing up the global benefits of its ambitious trade project, but analysts note that the plan is opaque and vague. Besides, the economic benefits for developed nations such as the United States are still unclear.

For many, the project still seems largely China-centric. It boasts six economic corridors, all of which are to enhance links with China through connectivity and trade infrastructure. Those include connections between China and Europe, the Middle East, Africa and Asia.

“It’s about making China great again — in Trumpian terms — and making China great on the international stage,” said Tom Miller, author of China’s Asian Dream: Empire Building Along the New Silk Road.

Domestically, China’s leaders present the project as part of their attempt at the grand rejuvenation of the Chinese people. Internationally, Beijing is trying to convince the world that it is a cooperative win-win plan that will equally benefit all participants.

So far the response has been mixed, but Beijing hopes that its forum on Sunday and Monday, which will include heads of state from 29 countries and official delegations from several other countries, will bring more clarity.

For starters, there is no official map of the grand plan, and the scope of the project continues to balloon. Beijing is entirely in the driver’s seat and the direction of the initiative is fuzzy at best, analysts said.

“What actually gets built will depend on what deals Chinese companies make with other countries abroad or on the deals that Chinese government makes with other governments abroad, and no one knows exactly what those are going to be,” Miller said.

Bumps on China road

There are also the geopolitical implications of the project.

Many developing countries along the route will obviously welcome and be eager and open to receive Chinese investment, infrastructure and development, said Paul Haenle, director of the Beijing-based Tsinghua-Carnegie Center for Global Policy.

In addition to communicating with developing countries, China needs to proactively engage with developed nations such as the United States and others as well.

China “should explain fully what the objectives are for the initiatives,” Hanele says. “And if it doesn’t do a very good job, I think then China risks these nations projecting their worst fears onto the Belt and Road initiative.”

While China-backed infrastructure projects could bring many benefits to developing countries, they could also make them reliant on Beijing’s largesse.

“The more power that China gains economically, [the more] it will have a geopolitical impact,” Miller said. “And in that sense, you can say that it does equate to a double win for China.”

Critical eye

Having developed countries such as the United States, Germany and Britain participate in the meeting could help make it more transparent.

Other developed European countries and the United States are right to look at Chinese behavior that is opaque and poorly defined with a critical eye, Haenle said.

He added Washington’s decision to attend and not shun the gathering, as it did during China’s formation of the Asian Infrastructure Investment Bank (AIIB) two years ago, is a better approach.

The United States would do well “to ask about what the rules will be and what the purpose is behind this, but at the end of the day, the U.S. should not have a hostile attitude,” Haenle said.

Friday’s last-minute announcement has raised questions about whether the United States may reverse former President Barack Obama’s decision to stay away from the AIIB and join. The bank is hosting a special press conference on Saturday to announce new members.

Reports Show Rise in US Inflation, Retail Sales

U.S. consumers bought more cars and hardware, and stepped up online purchases in April, after two months of sluggish sales.

Friday’s report from the Commerce Department says retail sales rose four-tenths of a percentage point in April, and sales were a bit better than first reported the previous month.

The data show even stronger growth for online retailers, while sales at traditional “bricks and mortar” stores sagged half a percentage point.

Investors and economists watch retail sales closely because consumer demand drives more than two-thirds of economic activity in the United States, which is the world’s largest economy.

A separate study by the Labor Department shows U.S. inflation rose 2.2 percent in the year ending in April, with a gain of two-tenths of a percent for the month. Some analysts say that makes it likely that the U.S. central bank will raise interest rates slightly at their next scheduled meeting in June.

The Federal Reserve is supposed to promote stable prices and full employment. When inflation threatens to rise a modest level, they may raise interest rates to cool economic activity and keep prices from rising so fast they disrupt economic growth.

Massive Cyber Attack Reported Across Europe

A large number of hospitals across Britain were hit by a cyber-attack Friday, shutting down their computer systems and forcing the cancellation of patient appointments.

According to Britain’s National Health Service, hospital computers were infected with a type of “ransomware” that blocks use of a computer system until victims agree to pay the attacker a ransom to free it up.

Photos posted on social media show infected NHS computers with the message “Ooops, your files have been encrypted,” and a demand for $300 worth of Bitcoin, an anonymous online currency.

At least 16 NHS organizations reported being affected by the ransomware attack.

While the affected hospitals were forced to turn away patients and divert ambulances to other facilities, the NHS said the attackers hadn’t breached any patient data.

“NHS Digital is working closely with the National Cyber Security Center, the Department of Health and NHS England to support affected organizations and to recommend appropriate mitigations,” the health agency said in a statement.

The NHS said it was not attacked specifically, and the attack is “affecting organizations from across a range of sectors.”

Around the same time Friday, the Spanish energy ministry reported various cyber attacks aimed at Spanish companies, including telecom giant Telefonica, using ransomware software. It is not clear if the two hacking incidents are related.

Portugal Telecom was also hit by a cyber attack but no services were impacted, a spokeswoman for the company said.

 

Navy: Russian Jet Came Within 6 Meters of US Spy Plane

The United States Navy said Friday that a Russian jet flew within six meters of an American spy plane earlier this week over the Black Sea, but that the encounter was professional.

The Russian jet was scrambled to greet the U.S. Navy P-8A Poseidon in international airspace Tuesday as the U.S. plane flew near Russian territory, according to the Russian Defense Ministry.

The Russian pilot approached the spy plane “at a safe distance” in order to identify it as a U.S. aircraft, the statement said, noting that the U.S. plane changed its course after the encounter and the Russian jet returned to its base.

U.S. Navy spokeswoman Pamela Kunze said in a statement the encounter was conducted in a “safe and professional” manner, downplaying the proximity of the Russian aircraft to the U.S. aircraft.

“For aviation interactions, distance, speed, altitude, rate of closure, visibility and other factors impact whether an event is characterized as safe or unsafe, professional or not professional,” she said. “Every event is unique and any single variable does not define an event.”

Kunze said that Navy aircraft and ships interact with their Russian counterparts in international waters on a routine basis, but did not provide any further details about Tuesday’s encounter.

The incident is the latest in a series of close fly-bys between U.S. and Russian planes. In February, four Russian aircraft buzzed a Navy destroyer in the Black Sea, flying within 91 meters of the ship.

Last month, the U.S. military intercepted two Russian bombers in international airspace off Alaska’s coast. That encounter was similarly described as “safe and professional” by the Navy.

Turkey Detains Ex-stock Exchange Workers Over Links to Coup

Turkey’s state-run news agency says police have detained 62 former employees of the Istanbul stock exchange over their alleged links to a U.S.-based Muslim cleric blamed for last year’s coup attempt.

Anadolu Agency said the suspects were detained Friday in simultaneous police raids in Istanbul and five other cities. Detention warrants were issued for 40 other people, the agency reported.

The detained are suspected of being followers of Fethullah Gulen who the government says is behind the July 15 coup attempt. Anadolu said the suspects were removed from positions at Borsa Istanbul stock exchange following the attempt.

Gulen denies involvement in the failed coup.

Turkey declared a state of emergency following the attempt and dismissed some 100,000 people from government jobs while arresting more than 47,000 people.

Fact Check: Trump on Tax Rates, Canada, ‘Priming the Pump’

In an interview with The Economist, President Donald Trump whiffed on a batch of economic facts. He got the Canada-U.S. trade balance wrong, misplaced the U.S. in the world ranks of tax burdens and claimed to have coined an economic phrase that’s been familiar to economists for some 80 years.

A look at some of his assertions to the magazine:

U.S. Taxes

TRUMP: “We’re the highest-taxed nation in the world.”

THE FACTS: Trump has repeatedly made variations on this false claim. The overall U.S. tax burden is one of the lowest among the 32 developed and large emerging-market economies tracked by the Organization for Economic Cooperation and Development. Taxes made up 26.4 percent of the total U.S. economy in 2015, according to the OECD. That’s far below Denmark’s tax burden of 46.6 percent, Britain’s 32.5 percent or Germany’s 36.9 percent. Just four OECD countries had a lower tax bite than the U.S.: South Korea, Ireland, Chile and Mexico.

Trump qualified his claim later in the interview by saying the top marginal corporate tax rate, specifically, is higher than in similar industrialized countries. That’s more or less true, although the higher rate is moderated by tax breaks not available in some of those other countries.

 

Trade deficit with Canada

TRUMP: “Right now the United States has … about a $15 billion trade deficit with Canada.”

THE FACTS: His numbers are upside down. The United States actually ran an $8.1 billion trade surplus with Canada last year, according to the latest numbers available from the Census Bureau. A $24.6 billion U.S. surplus with Canada in the trade of services, including tourism and software, outweighed a $16.5 billion deficit in the trade of goods, including autos and oil.

Trump, who regularly decries the loss of American manufacturing jobs, tends to emphasize trade in goods and ignore trade in services. His comment about Canada came as his administration seeks a renegotiation of the North American Free Trade Agreement with Canada and Mexico.

The U.S. last year ran a deficit of $750 billion in goods with the rest of the world but recorded a $249 billion surplus in services.

‘Prime the pump’

TRUMP: “You understand the expression ‘prime the pump’? … I came up with it a couple of days ago and I thought it was good. It’s what you have to do. We have to prime the pump.”

THE FACTS: He didn’t coin that phrase. It’s a well-worn metaphor for generating faster growth, first made popular as an economic analogy more than 80 years ago during the Great Depression.

The Merriam-Webster dictionary people quickly tweeted that the phrase “priming the pump” has been around since the early 1800s. Literally, it’s about pouring water into a pump to allow it to create suction. The phrase was commonly used by mining publications during the 1920s, but it took on new significance after the economy cratered during the Depression.

By 1933, President Franklin D. Roosevelt had promoted the idea of flushing money into the economy to stimulate stronger growth with his New Deal policies. Such policies rankled Roosevelt’s predecessor, Herbert Hoover.

“One of the ideas in these spendings is to prime the economic pump,” Hoover said in a 1935 post-presidential speech. “We might abandon this idea also, for it dries up the well of enterprise.”

China and currency manipulating

TRUMP, on backing away from his campaign promise to label China a currency manipulator: “They’re actually not a currency (manipulator). You know, since I’ve been talking about currency manipulation with respect to them and other countries, they stopped.”

Treasury Secretary STEVE MNUCHIN, pitching in: “Right, as soon as the president got elected, they went the other way.”

THE FACTS: Trump persists in taking credit for something that happened before he even started running for president. China manipulated its currency, the yuan, lower for years before stopping in mid-2014; Trump’s presidential run began a year later.

A weak yuan helps Chinese exports because it makes them cheaper to buy. It disadvantages goods from the U.S. and other countries because they are more expensive to get in China.

Until 2005, China pegged the yuan to the dollar at a specific level. When it loosened the peg, the yuan began to rise steadily against the dollar. Worried that a strong currency would hurt their exporters, Chinese officials bought dollars to prevent the yuan from rising even faster.

The value of the yuan peaked in early 2014, as the Chinese economy slowed after years of torrid growth. The yuan then began to fall relative to the dollar, but not because Chinese officials were once again intervening to push it down. China was actually doing the opposite: selling dollars and buying yuan to prevent its currency from going into a free fall.

China to Get American Beef and Gas Under Trade Agreement

A sweeping trade agreement, ranging from banking to beef, has been reached between Washington and Beijing, the U.S. Commerce Department announced on Thursday.

“It was pretty much a Herculean accomplishment to get this done,” said U.S. Commerce Secretary Wilbur Ross. “This is more than has been done in the whole history of U.S.-China relations on trade.”

The breakthrough results from an agreement U.S. President Donald Trump and Chinese President Xi Jinping made during their meeting at Trump’s Mar-a-Lago resort in Palm Beach, Florida, on April 6.

Trump “was briefed more or less every single day” as negotiations progressed since then, Ross said.

Beef imports

Following one more round of “technical consultations,” China has agreed to allow U.S. beef imports no later than July 16, consistent with international food and animal safety standards, Ross told reporters at the White House.

The United States Cattlemen’s Association applauded the agreement, saying market access to China is crucial for its members.

“Success in this arena will drive the U.S. cattle market and increase demand for U.S. beef” in China, association president Kenny Graner told VOA.

In exchange, Washington and Beijing are to resolve outstanding issues that would allow imports to the U.S. of cooked poultry from China “as soon as possible,” according to the Commerce Department.

Another significant breakthrough will see American liquefied natural gas (LNG) going to China. Under the agreement Chinese companies will be permitted “at any time to negotiate all types of contractual arrangement with U.S. LNG exporters, including long term contracts,” according to the Commerce Department.

This is “a very big change,” said Ross, noting China is trying to wean itself off coal at a time “it doesn’t produce enough natural gas to meet its needs.”

Financial, other business services

Among other action listed in the 100-Day Action Plan:

* China is to allow, by July 16, “wholly foreign-owned financial services firms” to provide credit ratings services and to begin licensing procedures for credit investigation.

* U.S.-owned suppliers of electronic payment services (EPS) will be able to apply for licensing in China under new guidelines.

* China is to issue bond underwriting and settlement licenses to two qualified U.S. financial institutions by July 16.

* China’s National Biosafety Committee is to meet by the end of this month to conduct science-based evaluations of all eight pending U.S. biotechnology product applications “to assess the safety of the products for their intended use.” Those that pass the tests are to get certificates within 20 working days.

The outcome of the joint dialogue will also see a United States delegation attending China’s Belt and Road Forum in Beijing next week.

A U.S.-China Comprehensive Economic Dialogue will be held this summer, according to the Commerce Department, to deepen engagement on these and other issues.

“There are probably 500 items you could potentially discuss” in the wider one-year plan for bilateral trade, Ross added.

As Farmers Worry, US Agriculture Chief to Promote Trade

As farmers fret over President Donald Trump’s criticism of international trade agreements, Agriculture Secretary Sonny Perdue is trying to reassure them by creating a top post to oversee trade and foreign agricultural affairs.

The new undersecretary position is a sign of Perdue’s efforts to promote the U.S. agricultural industry as Trump has sought to undo trade pacts that benefit it. Perdue made the announcement Thursday in Cincinnati while standing near barges that carry grain on the Ohio River.

“This nation has a great story to tell and we’ve got producers here that produce more than we can consume,” the former Georgia governor said. He said the new position “fits right in line with my goal to be American agriculture’s unapologetic advocate and chief salesman around the world.”

On his second day in office last month, Perdue helped persuade Trump not to withdraw from the North American Free Trade Agreement with Mexico and Canada, arguing that doing so would hurt U.S. farmers. Trump has said he will work to renegotiate the pact instead.

The 2014 farm bill had directed USDA to make a plan for the new position, but the Obama administration never created the post. Perdue said the new undersecretary will work with incoming U.S. Trade Representative Robert Lighthizer and Commerce Secretary Wilbur Ross to “ensure that American producers are well equipped to sell their products and feed the world.”

The Senate confirmed Lighthizer on Thursday. Though he had broad support from both parties, Republican senators John McCain and Ben Sasse said they wouldn’t vote for him because they doubted he would champion agriculture and negotiate trade deals to the benefit of American consumers and the economy.

The departmental reorganization announced by Perdue would also combine farm production and conservation agencies under one undersecretary and move rural development programs to report directly to the secretary. Perdue said that will put more focus on those programs and USDA efforts to revitalize small towns.

While the creation of the trade secretary won widespread praise in farm country, at least one Democrat is criticizing the rural development move. Democratic senator Sherrod Brown of Ohio called it a “downgrade” because there will no longer be an undersecretary for that area.

Brown says his state depends on the program for help with combating opioid abuse, building hospitals and securing loans for businesses.

“Ohio’s rural communities are too often overlooked by Washington as it is, and downgrading USDA Rural Development sends a message that rural Ohio is not a priority for this administration,” Brown said.

Russia Opposition Leader Organizes Rallies After Eye Surgery

Russian opposition leader Alexei Navalny returned home Thursday after surgery in Spain to fix his eye that was damaged in an attack and immediately roused his supporters to action.

Navalny suffered a severe chemical burn in his right eye last month when an attacker doused him with green antiseptic. His supporters identified the attacker as a pro-government activist. Police have failed to track him down.

Navalny urged his supporters in a YouTube video broadcast Thursday to attend anti-corruption rallies next month. He said the demonstrations are planned in 147 Russian cities.

Plans bid for presidency

The charismatic opposition leader intends to run for president next year. He said he would continue to travel widely to open his campaign offices.

Navalny shot to prominence with his investigations into official corruption and was a key driving force behind massive anti-Kremlin protests in Moscow in 2011-2012.

 

He also organized anti-government rallies in March, Russia’s largest and most widespread in years.

Trip to Spain allowed

Until his medical trip to Spain, Navalny had been denied travel documents for five years. He is serving a five-year suspended sentence in a dubious embezzlement case.

 

 He said Thursday that after his Moscow doctor strongly recommended he to travel abroad for eye surgery, he wrote to Kremlin human rights council chief Mikhail Fedotov to demand that authorities issue him a passport.

 

On Fedotov’s advice, he then sent the same request to Kremlin chief of staff Anton Vaino. Navalny said he also applied for a passport and received one the next day.

Navalny, who was operated on at a Barcelona clinic, said doctors expect the vision in his injured eye to be restored in several months.

Commerce’s Ross: China’s Plans Threaten US Semiconductor Dominance

U.S. Commerce Secretary Wilbur Ross sees the U.S. semiconductor industry as still dominant globally but said he is worried that it will be threatened by China’s planned investment binge to build up its own chipmaking industry.

Ross told Reuters in an interview this week that his agency is considering a national security review of semiconductors under a 1962 trade law because of their “huge defense implications” — including their use in military hardware and proliferation in devices throughout the economy. He has launched similar Section 232 reviews of the U.S. steel and aluminum sectors, where a flood of imports especially from China has depressed prices, threatening the industries’ long-term health.

The probes could lead to broad import restrictions on the metals, and the Trump administration could potentially take similar actions based on the findings of a semiconductor investigation.

“Semiconductors are one of our shining industries, but they have gone from substantial surplus to the beginnings of a deficit,” Ross told Reuters. “China has a $150 billion program to take that much further between now and 2025. That is scary.”

The 79-year-old billionaire investor was referring to China’s plans for massive state-directed investments in semiconductor manufacturing capacity under its Made in China 2025 program, which aims to replace mostly imported semiconductors with domestic products.

Ross’ predecessor at Commerce, Penny Pritzker, warned last November about looming market distortions if China builds too much semiconductor capacity.

Ross added that while he understands Beijing’s logic in developing its domestic chip industry, “that’s going to be a struggle” from a U.S. trade standpoint.

Industry view

U.S. semiconductor makers, meanwhile, have other ideas about how to secure their future. Their major trade group, the Semiconductor Industry Association (SIA), advocates open trade and increased access to international markets, which now buy 80 percent of U.S.-made semiconductors. U.S. chipmakers also depend on a complex global supply chain and have nearly half their production capacity located overseas.

“So while we fully support efforts to ensure trade in semiconductors is fair and market-based, we do not believe a Section 232 investigation is the right tool to be applied to our industry” SIA President John Neuffer told Reuters.

One area where there appear to be some differences is how to define the industry’s trade balance.

Commerce Department trade data showed that “semiconductors and related device manufacturing” had a trade deficit of $2.4 billion in 2016, with exports of $43.1 billion and imports of $45.6 billion.

But that category includes rapidly growing imports of non-semiconductor devices including solar cells and light-emitting diodes (LEDs), as well as some raw materials.

In a new submission late on Wednesday to Commerce for a study on trade deficits, SIA said that excluding the non-semiconductor products shows the sector had a $6.4 billion trade surplus last year, with exports of $41.3 billion and imports of $34.9 billion.

Neuffer said the industry was ready to work with the Trump administration to find ways to persuade China to allow its semiconductor industry to develop in a market-driven way and not discriminate against foreign firms.

He added the government could make the United States a more competitive environment for semiconductor output through tax reform that does not penalize overseas earnings, immigration reform that allows the industry to attract new talent, improvements to U.S. education and more spending on basic research.

“The Chinese are determined to build a semiconductor industry,” Neuffer said. “I think the strongest pillar of any strategy going forward has to be our government helping to create an environment where we can pedal faster and stay as far ahead as possible.”

Bulgaria Seeks Private Investors for Nuclear Project

Bulgaria is seeking private investors to build a nuclear power plant on the Danube River, which was canceled five years ago, Prime Minister Boiko Borisov said during a phone call with Russian President Vladimir Putin on Thursday.

Sofia canceled the Belene project in 2012 after failing to find foreign investors and facing pressure from Brussels and Washington to limit its energy dependence on Russia.

Since then Bulgaria has opened a gas link with neighboring Romania and is working to connect its gas network with neighboring Greece, Turkey and Serbia to diversify its suppliers.

It hopes to privatize the nuclear plant project after it paid more than 600 million euros ($652 million) in compensation to Russia’s state nuclear giant Rosatom when it canceled the 10 billion euro project. Rosatom had agreed to provide the nuclear reactors.

Bulgarian authorities have already said that Belene could be built without state guarantees or obligatory long-term contracts for the government to purchase power from it.

“Prime Minister Boiko Borisov said the government is looking for a strategic private investor to develop the project,” the government’s press office said in a statement.

In December, the Bulgarian government said that Industrial and Commercial Bank of China (ICBC), China’s biggest lender by assets, was ready to finance the Belene nuclear power project. China National Nuclear Corporation (CNNC) has also expressed an interest in investing in the project.

During their phone call, Borisov and Putin also underlined their mutual interest in the construction of the natural gas hub on Bulgarian territory, the government’s press office said.

Plans for a hub at the Black Sea port of Varna, which would store and transport gas from Russia and the Caspian Sea to southeastern and central Europe, follow the cancellation of Russian gas giant Gazprom’s South Stream gas pipeline project, which would have shipped Russian gas under the Black Sea via Bulgaria to central Europe.

UN Rights Chief Tells Uzbekistan to Go Easy in Fight Against Islamism

The U.N.’s human rights chief urged Uzbekistan on Thursday to avoid “repressive policies” in its fight against Islamist radicalization, a growing threat throughout Central Asia, while welcoming a rapprochement with Tashkent.

Zeid Ra’ad Al Hussein, the first United Nations High Commissioner for Human Rights to visit Uzbekistan since the post was created in 1993, said the former Soviet republic had agreed to work with his office after previously refusing to do so.

Commenting on President Shavkat Mirziyoyev’s reform plans, which include an overhaul of the judicial system and measures to tackle religious extremism, Hussein said it was crucial to balance the latter with ensuring individual rights.

“As in other countries, I have emphasized that the answer to the risk of radicalization is not simply heavy-handed security measures and repressive policies which breed resentment and frustration, thereby making it easier for extremists to recruit new supporters,” he said.

President Islam Karimov, who died in September after 27 years in power, had been widely criticized for his government’s human rights violations, and Tashkent’s ties with the West hit their lowest point after troops violently suppressed unrest in the city of Andijan in 2005.

Hussein, describing the Andijan events as “terrible,” told a briefing: “While it is important to look forward, it also important to come to terms with past events and ensure that victims are not forgotten and their grievances are addressed.”

Hussein said he had had an hour-and-a-half meeting with Mirziyoyev, “in which we found much common ground and reached agreements on a number of concrete steps.”

Uzbekistan found itself in a global security spotlight after an Uzbek man living in Sweden was identified as the main suspect behind the deadly truck attack in Stockholm last month. Hundreds of Uzbeks are also believed to have joined the Islamic State militant group based in Syria and Iraq.

Uber Chases GrabTaxi in Myanmar, Expanding in Southeast Asia

Uber is launching its private ride-hailing service in the Myanmar commercial capital of Yangon on Thursday, aiming to tap into one of the world’s youngest and fastest-growing online markets.

The launch follows Singapore-based GrabTaxi’s debut by about two months.

Uber is one of the world’s largest on-demand transportation platforms. It is seeking an alliance with the government to smooth acceptance of the use of private vehicles for commercial transport.

A taxi ride in Myanmar usually involves negotiating prices, no use of meters and a lack of air conditioning or seat belts. Using a ride-hailing app is still a relatively new concept, though the practice has been gaining in popularity.

Local travel services start-up Oway and Hello Cabs, a rival service run by a construction and auto dealership tycoon, also provide ride-hailing services. 

“I definitely want to try Uber,” said Nyan Zay Htet, 26, a company worker who was haggling with a driver over a fare on a downtown street in Yangon. “I welcome having international companies come in because it can be more convenient for us if we don’t have to bargain over prices and can just hop in and go.”

More than two-thirds of Southeast Asians are younger than 40 and the number going online to buy goods and services is soaring. A recent research report by Google and the Singaporean investment arm Temasek put the potential ride-sharing market in six larger regional markets at $13 billion by 2025, up from $2.5 billion in 2015.

With more than 50 million people, Myanmar is growing fast and its public transport networks are not keeping up. Taxis are plentiful in Yangon, with local media reporting authorities estimate there are more than 50,000 on the city’s jammed roads. The industry is something of a free-for-all, with non-licensed drivers turning their cars into taxis as they please. But the government has said it intends to crack down on that.

Incomes for most people are still low, so price competition may be key.

An online Uber fare estimator put the base fare in Yangon at 1,500 kyats (pronounced chuts) ($1.09) with a minimum charge of 1,800 kyats ($1.31).

Uber has faced trouble from regulators in various markets, including China, France, Spain and Mexico. But generally they target services transporting paying customers using private vehicles that are not registered for public transport, not ride-hailing that uses smartphone apps to call licensed taxis.

Study: US Foreclosure Activity Drops to Lowest Level Since 2005 

Housing foreclosure activity in the United States dropped to the lowest level since 2005 last month, according to a business research group.

ATTOM Data Solutions tracks default notices, auctions and bank repossessions across the nation and says the number of actions dropped 23 percent from a year ago. That means more than 77,000 homeowners missed payments, and banks took some kind of action to encourage the repayment of their loans.

Severe problems in the U.S. housing market, and sales of securities backed by sometimes-faulty mortgages, played a key role in the financial crisis, which is one reason that investors and economists watch the housing market closely.

Seattle, a city in the Pacific Northwest state of Washington, did the best in this study, with the number of foreclosure notices dropping 38 percent from the same time a year ago. Atlantic City, New Jersey, had the worst foreclosure problem in this study, with one out of every 237 housing units getting a notice of some kind.

Alaskan Natives Look to Arctic Council to Preserve Waters, Way of Life

U.S. Secretary of State Rex Tillerson and the foreign ministers of the other Arctic Council nations, Russia, Greenland, Canada, Norway, Finland, Sweden and Iceland meet Thursday amid changes to the North Pole ice and a decision by the Trump administration about the U.N. Paris Agreement on Climate. Any changes to U.S. climate policy could have a direct impact on the lives of Alaskan Natives, who depend on the Arctic Sea to survive. VOA’s Cindy Saine reports from Fairbanks, Alaska.