Tag: China government

Beijing threatens response to ‘unacceptable’ virus measures

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BEIJING (AP) — The Chinese government sharply criticized COVID-19 testing requirements imposed on visitors from China and threatened countermeasures against countries involved, which include the U.S. and several European nations.

“We believe that the entry restrictions adopted by some countries targeting China lack scientific basis, and some excessive practices are even more unacceptable,” Foreign Ministry spokesperson Mao Ning said at a daily briefing Tuesday.

“We are firmly opposed to attempts to manipulate the COVID measures for political purposes and will take countermeasures based on the principle of reciprocity,” she said. Mao did not specify what steps China might take.

The comments were China’s sharpest to date on the issue. Australia and Canada this week joined a growing list of countries requiring travelers from China to take a COVID-19 test prior to boarding their flight, as China battles a nationwide outbreak of the coronavirus after abruptly easing restrictions that were in place for much of the pandemic.

Other countries including the U.S., India, Japan, South Korea and several European nations have announced tougher COVID-19 measures on travelers from China amid concerns over a lack of data on infections in China and fears that new variants may emerge.

China has had some of the toughest entry requirements for people arriving from abroad. It is about to drop a mandatory five-day quarantine for all arrivals but will still require a negative COVID-19 test within 48 hours of the flight.

White House press secretary Karine Jean-Pierre said “there’s no cause for retaliation” by Beijing for countries “taking prudent health measures to protect their citizens” with COVID-related restrictions on travelers coming from China. She added that restrictions were “based on public health and science.”

“This is something that all of us, (and) other countries are doing to make sure that we are protecting our citizens here,” Jean-Pierre said.

French Prime Minister Elisabeth Borne defended the tests. Starting Wednesday, anyone flying from China to France will have to present a negative virus test taken within the previous 48 hours and be subject to random testing on arrival.

“We are in our role, my government is in its role, protecting the French,” Borne said Tuesday on France-Info radio.

The U.K. will require that passengers from China take a COVID test before boarding the plane from Thursday. Transport Secretary Mark Harper said the requirement is for “collecting information” because Beijing isn’t sharing coronavirus data.

Health officials will test a sample of passengers when they arrive in the U.K., but no quarantine is required for those who test positive, he said.

“The policy for arrivals from China is primarily about collecting information that the Chinese government is not sharing with the international community,” Harper told the LBC radio station on Tuesday.

Sweden’s Public Health Agency said Tuesday that it had urged the government to require travelers from China to present a recent negative COVID-19 test.

The statement from the agency comes as Sweden, which has taken over EU’s rotating presidency, has called a meeting of the EU’s crisis management mechanism for Wednesday to try to agree on a common European line.

The Swedish government “is preparing to be able to introduce travel restrictions. At the same time, we are conducting a dialogue with our European colleagues to get the same rules as possible in the EU,” Justice Minister Gunnar Strömmer said in a statement.

Austria, too, plans to test the wastewater of all planes arriving from China for new variants of the coronavirus, the Austria Press Agency reported Tuesday, following a similar announcement by Belgium a day earlier.

Chinese health officials said last week that they had submitted data to GISAID, a global platform for sharing coronavirus data.

The versions of the virus fueling infections in China “closely resemble” those that have been seen in different parts of the world between July and December, GISAID said Monday.

Dr. Gagandeep Kang, who studies viruses in the Christian Medical College of Vellore in India, said that the information from China, albeit limited, seemed to suggest that “the pattern was holding” and that there wasn’t any sign of a worrisome variant emerging.

Mi Feng, the spokesperson for China’s National Health Commission, said authorities have been open and transparent since the start of the pandemic three years ago. China held technical exchange meetings twice with the WHO last month on the overall situation, medical treatment, vaccination and other issues, he said Tuesday.

A senior Hong Kong official also criticized the steps taken by some other countries. Some have applied the requirements to passengers from Hong Kong and Macao, both semiautonomous Chinese territories, as well as mainland China.

Hong Kong Chief Secretary Eric Chan said in a Facebook post that the government had written to various consulates on Monday to express its concerns over the “unnecessary and inappropriate” rules.

Some experts have questioned the effectiveness of the testing. Kerry Bowman, assistant professor at the University of Toronto’s Temerty Faculty of Medicine, said that people can test positive long after entering the country.

The requirement is “not based on science at this point,” he said after Canada announced measures last weekend.

China, which for most of the pandemic adopted a “zero-COVID” strategy that imposed harsh restrictions aimed at stamping out the virus, abruptly eased those measures in December.

Chinese authorities previously said that from Jan. 8, overseas travelers would no longer need to quarantine upon arriving in China, paving the way for Chinese residents to travel.

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Associated Press writers John Leicester in Paris, Sylvia Hui in London, Jan M. Olsen in Copenhagen, Kanis Leung in Hong Kong and Frank Jordans in Berlin contributed to this report.

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January 6, 2023
Philippines’ Marcos Jr. heads to China amid sea disputes

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MANILA, Philippines (AP) — Philippine President Ferdinand Marcos Jr. flew to China on Tuesday for a three-day state visit, saying he looks forward to his meeting with Chinese leader Xi Jinping as they work to boost bilateral ties.

“As I leave for Beijing, I will be opening a new chapter in our comprehensive, strategic cooperation with China,” he told officials and diplomats, including the Chinese ambassador, prior to boarding his flight from an air base in the capital.

“I look forward to my meeting with President Xi as we work towards shifting the trajectory of our relations to a higher gear that would hopefully bring numerous prospects and abundant opportunities for peace and development to the peoples of both our countries,” he added.

Alluding to the two countries’ territorial dispute in the South China Sea, he said he looks forward to discussing bilateral and regional political and security issues.

“The issues between our two countries are problems that do not belong between two friends such as Philippines and China,” he added. “We will seek to resolve those issues to mutual benefit of our two countries.”

China claims virtually the entire South China Sea and has ignored a 2016 ruling by a tribunal in The Hague that invalidated Beijing’s claims to the waterway. The case was brought by the Philippines, which says China has since developed disputed reefs into artificial islands with airplane runways and other structures so they now resemble forward military bases.

Most recently, a Filipino military commander reported that the Chinese coast guard forcibly seized Chinese rocket debris that Filipino navy personnel had retrieved in the South China Sea last month.

China denied the forcible seizure. Marcos said he would seek further clarification on his visit to Beijing.

Accompanied by a big business delegation, Marcos said they will seek cooperation in various areas including agriculture, energy, infrastructure, trade and investments, and people-to-people exchanges. He said they expect to sign more than 10 key bilateral agreements during the visit.

China accounts for 20% of the Philippines’ foreign trade and is also a major source of foreign direct investment.

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January 3, 2023
More European nations tighten COVID rules for China flights

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PARIS — France, Spain and England will implement tougher COVID-19 measures for passengers arriving from China, authorities said Friday.

France’s government is requiring negative tests, and is urging French citizens to avoid nonessential travel to China. France is also reintroducing mask requirements on flights from China to France.

French health authorities will carry out random PCR tests at airports on passengers arriving from China to identify potential new coronavirus variants. The new rules take effect on Sunday, but officials said it would be a few days before they are fully in place.

The U.K. government announced that anyone traveling to England on direct flights from China would be required to take a pre-departure test from Jan. 5.

Health Secretary Steve Barclay said that the U.K. was taking a “balanced and precautionary approach.” He described the measures as “temporary” while officials assess COVID-19 statistics.

France and Spain said they would continue to push for a Europe-wide policy.

France’s hospitals have struggled in recent weeks with a large number of patients because of three concurrent outbreaks: the seasonal flu, a wave of bronchitis cases and COVID-19.

Earlier, Spain’s government said it would require all air passengers coming from China to have negative tests or proof of vaccination.

Health Minister Carolina Darías told reporters that Spain would be pushing for similar measures at a European level following the surge in cases in China. She said coronavirus health controls would be stepped up at Spanish airports.

Darías didn’t specify when the new requirement would take effect.

Spain made the announcement after Italy said it would require coronavirus tests for airline passengers from China. Health officials from the 27-member European Union on Thursday promised to continue talks on seeking a common approach but held back from imposing restrictions.

“There exists a shared concern internationally and nationally over the evolution of cases in China and the difficulty to make a correct evaluation of the COVID-19 situation given the scant information that we have available,” Darías said.

Darías noted that China would be lifting travel restrictions from Jan. 8 and there was likely to be a major increase in people traveling abroad. She said the chief concern was the possible emergence of new coronavirus variants and it was important to act fast.

The United States announced new COVID-19 testing requirements Wednesday for travelers from China, joining some Asian nations that had imposed restrictions. Japan on Friday started requiring tests for passengers arriving from China.

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December 30, 2022
US says Chinese intercept could have caused air collision

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BEIJING — The U.S. military says a Chinese navy fighter jet flew dangerously close to an Air Force reconnaissance plane over the South China Sea earlier this month, forcing the American pilot to maneuver to avoid a collision.

U.S. Indo-Pacific Command said in a statement Thursday that the incident occurred Dec. 21 when the Chinese People’s Liberation Army Navy J-11 flew in front of and within 6 meters (20 feet) of the nose of an RC-135, a type of large reconnaissance plane operated by the U.S. Air Force.

The U.S. plane was “lawfully conducting routine operations over the South China Sea in international airspace,” the statement said. Its pilot was forced to “take evasive maneuvers to avoid a collision,” it said.

China frequently challenges military aircraft from the U.S. and its allies, especially over the South China Sea, which China claims in its entirety. Such behavior led to a 2001 in-air collision in which a Chinese plane was lost and pilot killed.

“The U.S. Indo-Pacific Joint Force is dedicated to a free and open Indo-Pacific region and will continue to fly, sail and operate at sea and in international airspace with due regard for the safety of all vessels and aircraft under international law,” the statement said.

“We expect all countries in the Indo-Pacific region to use international airspace safely and in accordance with international law,” it said.

China deeply resents the presence of U.S. military assets in the South China Sea and regularly demands its ships and planes leave the area. The U.S. says it is fully entitled to operate in and over the South China Sea and ignores the Chinese demands.

Such dangerous incidents persist despite U.S.-China agreements on how to deal with unexpected encounters.

The U.S. and others have also accused China of harassing military aircraft and ships in the East China Sea off the Chinese coast and as far away as the Horn of Africa, where China operates a naval base.

There was no immediate response from the PLA, the military wing of China’s ruling Communist Party, to the latest U.S. complaint.

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December 29, 2022
US to sell Taiwan anti-tank system amid rising China threat

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WASHINGTON — The U.S. State Department has approved the sale of an anti-tank mine-laying system to Taiwan amid the rising military threat from China.

The department on Wednesday said the Volcano system and all related equipment would cost an estimated $180 million.

It’s capable of scattering anti-tank and anti-personnel mines from either a ground vehicle or helicopter, the type of weapon some experts believe Taiwan needs more of to dissuade or repel a potential Chinese invasion.

To advertise that threat, China’s military sent 71 planes and seven ships toward Taiwan in a 24-hour display of force directed at the self-ruled island it claims is its own territory, Taiwan’s Defense Ministry said Monday.

China’s military harassment of Taiwan has intensified in recent years, along with rhetoric from top leaders that the island has no choice but to accept eventual Chinese rule.

That has seen the ruling Communist Party’s increasingly powerful military wing, the People’s Liberation Army, send planes or ships toward the island on a near-daily basis.

Between 6 a.m. Sunday and 6 a.m. Monday, 47 of the Chinese planes crossed the median of the Taiwan Strait, an unofficial boundary once tacitly accepted by both sides, according to the Defense Ministry.

That came after China expressed anger at Taiwan-related provisions in a U.S. annual defense spending bill in what has come to be a standard Chinese practice.

China conducted large-scale live-fire military exercises in August in response to U.S. House Speaker Nancy Pelosi’s visit to Taiwan. Beijing views visits from foreign governments to the island as de facto recognition of Taiwan as independent and a challenge to China’s claim of sovereignty.

While Washington has only unofficial ties with Taiwan in deference to Beijing, those include robust defense exchanges and military sales.

In its announcement, the State Department said the Volcano sale “serves U.S. national, economic, and security interests by supporting the recipient’s continuing efforts to modernize its armed forces and to maintain a credible defensive capability.”

It said Taiwan would have “no difficulty absorbing this equipment into its armed forces,” and that the sale would “not alter the basic military balance in the region.”

Analysts differ over what Taiwan’s defense priorities should be, with some calling for big-ticket items such as advanced fighter jets.

Others argue for a more flexible force, heavily armed with land-based missile systems to target enemy ships, planes and landing craft. China’s overwhelming numerical advantage in personnel and equipment give Taiwan little choice but to opt for that more “asymmetric” approach, they say.

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December 29, 2022
Asian shares mixed after tech-led decline on Wall Street

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BANGKOK — Shares were mixed in Asia on Wednesday after a post-holiday retreat on Wall Street, as markets count down to the end of a painful year for investors.

Shares fell in Tokyo, Shanghai and Seoul but rose in Hong Kong as the Chinese government took further steps to reopen to foreign travel after relaxing its stringent “zero-COVID” policies.

Oil prices rose and U.S. futures inched higher.

The Chinese government announced it will start issuing new passports in another major step away from anti-virus travel barriers. That sets up a potential flood of tourists out of China for next month’s Lunar New Year holiday, taking free-spending Chinese visitors to Asia, Europe and other destinations during what usually is the country’s busiest travel season.

But governments in India and Japan have said they will impose extra precautions on those arriving from China due to widespread virus outbreaks there. U.S. officials also expressed concern and said they were considering taking similar steps.

Hong Kong’s Hang Seng jumped 2% to 20,011.99. The Shanghai Composite index gave up early gains, losing 0.2% to 3,000.23.

Tokyo’s Nikkei 225 lost 0.6% to 26,301.69 after the government reported that Japan’s industrial production fell for a third straight month in November and said it was likely to fall further in December. The Kospi in Seoul declined 2.2% to 2,282.26.

In Australia, the S&P/ASX 200 dropped 0.3% to 7,086.50.

On Wall Street, the S&P 500 fell 0.4% to 3,829.25 and the Dow Jones Industrial Average eked out a 0.1% gain, closing at 33,241.56. The Nasdaq dropped 1.4% to 10,353.23.

The Russell 2000 index dropped 0.7% to 1,749.52.

Technology and communication services companies accounted for a big share of the decliners in the S&P 500. Apple fell 1.4% and Netflix lost 3.7%.

Airlines stocks fell broadly. A massive winter storm caused widespread delays and forced several carriers to cancel flights over the weekend. Delta Air Lines closed 0.8% lower, American Airlines dropped 1.4% and JetBlue slid 1.1%.

Southwest Airlines slid 6% after the company had to cancel roughly two-thirds of its flights over the last couple of days, which it blamed on problems related to staffing and weather. The federal government said it would investigate why the company lagged so far behind other carriers.

Tesla fell 11.4% for the biggest decline among S&P 500 stocks. The electric vehicle maker temporarily suspended production at a factory in Shanghai, according to published reports.

Treasury yields mostly rose as the U.S. bond market reopened from Christmas holidays. The yield on the 10-year Treasury, which influences mortgage rates, rose to 3.85% from 3.75% late Friday.

Trading on Wall Street is expected to be relatively light this holiday-shortened week as investors look ahead to 2023 after a dismal year for stocks.

Uncertainty about how far the Federal Reserve and other central banks would go to fight the highest inflation in decades has kept investors on edge. The Fed raised its key interest rate seven times this year and has signaled more hikes to come in 2023, even though the pace of price increases has been easing.

The high rates, which weigh heavily on prices for stocks and other investments, have fueled concerns that the economy could slow too much and slip into a recession next year.

The benchmark S&P 500 index set an all-time high at the beginning of January, but is now down nearly 20% for the year. The tech-heavy Nasdaq is down nearly 34%.

In other trading Wednesday, U.S. benchmark crude oil added 5 cents to $79.58 per barrel in electronic trading on the New York Mercantile Exchange. It lost 3 cents on Tuesday to $79.53 per barrel.

Brent crude, the pricing basis for international trading, gained 14 cents to $84.82 per barrel.

The U.S. dollar rose to 134.09 Japanese yen from 133.43 yen. The euro was trading at $1.0643, up from $1.0640.

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AP Business Writer Alex Veiga contributed.

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December 28, 2022
World shares mostly lower after tech-led fall on Wall Street

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BANGKOK — Shares were mostly lower in Europe and Asia on Wednesday as markets were counting down to the end of a painful year for investors, with no end in sight to uncertainties stemming from the pandemic and the war in Ukraine.

Shares fell in Frankfurt, Paris, Tokyo, Shanghai and Seoul but rose in London and Hong Kong as the Chinese government took further steps to reopen to foreign travel after relaxing its stringent “zero-COVID” policies.

Oil prices fell back and U.S. futures inched higher.

Not all world markets have ended the year on low notes. Britain’s FTSE 100 is at about the level it started 2022. Early Wednesday it was up 0.7% at 7,525.42.

But most other markets have suffered as interest rate increases, waves of coronavirus infections, the war, supply chain disruptions and surging inflation took a toll on businesses and investments.

Germany’s DAX lost 0.3% to 13,952.83. It’s down about 13% from the start of the year. The CAC 40 in Paris, which is about 9% below where it began the year, edged 0.1% lower, to 6,541.50.

The future for the S&P 500 was barely changed, down 1 point. The future for the Dow Jones Industrial Average edged 0.1% higher.

On Tuesday, the S&P 500 fell 0.4% and the Dow industrials eked out a 0.1% gain. The Nasdaq dropped 1.4%, while the Russell 2000 index dropped 0.7%.

The benchmark S&P 500 index set an all-time high at the beginning of January, but is now down nearly 20% for the year. The tech-heavy Nasdaq is down nearly 34%.

The Chinese government announced late Tuesday that it will start issuing new passports, a major step away from anti-virus travel barriers that likely will bring a flood of tourists out of China for next month’s Lunar New Year holiday.

The return of free-spending Chinese visitors to Asia, Europe and other destinations during what usually is the country’s busiest travel season will be a welcome relief for countries like Thailand that depend heavily on tourism.

But some governments have said they will impose extra precautions on people arriving from China given the widespread virus outbreaks there. U.S. officials, speaking on condition of anonymity to convey internal discussions, also expressed concern and said they were considering taking similar steps.

With China in the midst of its most severe COVID wave so far, disruptions to manufacturing and transport will likely linger until the worst is past.

“Investors are enthusiastic about China re-opening its economy. However, there are plenty of reports which suggest that COVID cases are on the rise in China, which really threatens the supply chain,” Naeem Aslam of Avatrade.com said in a commentary.

In Asian trading, Hong Kong’s Hang Seng climbed 1.6% to 19,898.91 while the Shanghai Composite index dropped 0.3% to 3,087.40. Hong Kong’s benchmark is down 14% for the year, while Shanghai’s has lost slightly more so far, at 14.2%.

Tokyo’s Nikkei 225, which has given up 8.6% this year, fell 0.4% to 26,340.50 after the government reported that Japan’s industrial production fell for a third straight month in November and was likely to fall further in December.

The Kospi in Seoul declined 2.2% to 2,280.45, while Australia’s S&P/ASX 200 dropped 0.3% to 7,086.40. Bangkok’s SET gained 0.3%.

Trading on Wall Street is expected to be relatively light this holiday-shortened week as investors look ahead to 2023 after a dismal year for stocks.

Uncertainty about how far the Federal Reserve and other central banks would go to fight the highest inflation in decades has kept investors on edge, even as price increases have eased. The Fed raised its key interest rate seven times this year and has signaled more hikes to come in 2023.

The high rates weigh heavily on prices for stocks and other investments and have raised worries they might slow the economy too much, tipping it into a recession.

In other trading, U.S. benchmark crude oil shed 54 cents to $78.99 per barrel in electronic trading on the New York Mercantile Exchange. It lost 3 cents on Tuesday to $79.53 per barrel.

Brent crude, the pricing basis for international trading, declined 39 cents to $84.29 per barrel.

The U.S. dollar rose to 134.01 Japanese yen from 133.43 yen. The euro was unchanged at $1.0641.

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December 28, 2022
IS claims Afghan car bombing that killed local police chief

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KABUL, Afghanistan — The Islamic State group has claimed responsibility for a car bombing that killed a local police chief in Afghanistan.

The IS regional affiliate — known as the Islamic State in Khorasan Province — has increased its attacks since the Taliban takeover of Afghanistan in August 2021.

Abdulhaq Abu Omar, the police chief of the country’s northeastern Badakhshan province, died on Monday morning when a car bomb exploded near his headquarters.

The Interior Ministry spokesman, Abdul Nafi Takor, said two others were killed in the blast and two people were wounded. Four suspects were arrested in connection with the incident, he said.

In a brief statement late on Monday, IS said it parked an explosive-laden car on the road used by the police chief on his way to work and detonated it when he was close by.

Earlier this month, the militant group claimed responsibility for a coordinated attack on a Chinese-owned hotel in the Afghan capital, Kabul, which left three assailants dead and at least two guests injured as they tried to escape by jumping out of a window.

The assault on the Kabul Longan Hotel, in the central Shar-e-Naw district, prompted the Chinese government to urge its citizens to leave Afghanistan.

The advisory appeared to be a setback for Afghanistan’s Taliban rulers who seek foreign investments in hopes of halting the country’s downward economic spiral since their takeover.

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December 26, 2022
China’s foreign minister signals deeper ties with Russia

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BEIJING — Chinese Foreign Minister Wang Yi defended his country’s position on the war in Ukraine on Sunday and signaled that China would deepen ties with Russia in the coming year.

Wang, speaking by video to a conference in the Chinese capital, also blamed America for the deterioration in relations between the world’s two largest economies, saying that China has “firmly rejected the United States’ erroneous China policy.”

China has pushed back against Western pressure on trade, technology, human rights and its claims to a broad swath of the western Pacific, accusing the U.S. of bullying. Its refusal to condemn the invasion of Ukraine and join others in imposing sanctions on Russia has further frayed ties and fueled an emerging divide with much of Europe.

Wang said that China would “deepen strategic mutual trust and mutually beneficial cooperation” with Russia.

“With regard to the Ukraine crisis, we have consistently upheld the fundamental principles of objectivity and impartiality, without favoring one side or the other, or adding fuel to the fire, still less seeking selfish gains from the situation,” he said, according to an official text of his remarks.

Even as China has found common ground with Russia as both come under Western pressure, its economic future remains tied to American and European markets and technology. Leader Xi Jinping is pushing Chinese industry to become more self-sufficient, but Wang acknowledged that experience has shown “that China and the United States cannot decouple or sever supply chains.”

He said that China would strive to bring relations with the U.S. back on course, saying they had plunged because “the United States has stubbornly continued to see China as its primary competitor and engage in blatant blockade, suppression and provocation against China.”

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December 24, 2022
China blasts US defense bill while Taiwan welcomes it

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China has blasted an annual U.S. defense spending bill for hyping up the “China threat” while Taiwan welcomed the legislation, saying it shows U.S. support for the self-governing island that China says must come under its rule

BEIJING — China blasted an annual U.S. defense spending bill for hyping up the “China threat” while Taiwan welcomed the legislation, saying it demonstrated U.S. support for the self-governing island that China says must come under its rule.

“China deplores and firmly opposes this U.S. move,” the Foreign Ministry said in a statement posted online Saturday, calling the new law a serious political provocation that blatantly interferes in China’s internal affairs.

President Joe Biden signed the $858 billion defense bill into law in Washington on Friday. It includes about $45 billion more than Biden had requested as lawmakers look to offset inflation and boost the nation’s military competitiveness with China and Russia.

The bill also repealed a COVID-19 vaccination requirement for U.S. troops.

In the Indo-Pacific region, the legislation authorizes increased security cooperation with Taiwan and requires expanded cooperation with India on emerging defense technologies, readiness and logistics.

A Taiwan Foreign Ministry statement thanked the U.S. Congress “for showing the great importance it attaches to Taiwan-U.S. relations and strengthening Taiwan’s security.”

China objects to U.S. support for Taiwan, an island of 23 million people off its east coast. The two split during the civil war that brought the communists to power in China in 1949.

The Chinese Foreign Ministry statement said the U.S. defense bill “severely affects peace and stability across the Taiwan Strait.”

China staged major military exercises around Taiwan in August after U.S. House Speaker Nancy Pelosi visited the island. The Chinese military sent 39 planes and three ships toward Taiwan earlier this week in a relatively large show of force.

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December 23, 2022
Australian visit to China raises hopes on trade, detainees

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CANBERRA, Australia — The first visit by an Australian foreign minister to China in four years is raising hopes that Australia will make progress on ending trade sanctions and freeing two Australian citizens detained in China.

But Australia’s Foreign Minister Penny Wong cautioned on Tuesday before leaving that some of the thorny issues between the countries will take time to resolve.

Still, diplomacy experts welcomed the visit as a positive move following years of frosty relations.

Wong will meet with her counterpart, Wang Yi, in Beijing this week as Australia and China mark 50 years of diplomatic relations. The visit will include a new round of talks on foreign and strategic issues after the talks were suspended in 2018.

“There has been a lot of speculation in the last 24 hours or more about what will happen,” Wong told reporters. “I will say this: the expectation should be that we will have a meeting, and that dialogue itself is essential to stabilizing the relationship. Many of the hard issues in the relationship will take time to resolve in our interests.”

She said she didn’t want to speculate on outcomes because it could have an impact on Australia’s leverage in the talks.

“In relation to consular cases, to save you asking the question, obviously I will be raising consular cases, as I always do, just as I will continue to advocate for the trade impediments to be lifted,” Wong said.

Australia has been pushing for the release of spy novelist Yang Hengjun, who China accused of espionage, and journalist Cheng Lei, who China accused of sharing state secrets.

China does not recognize dual citizenship and Chinese-born defendants such as Yang and Cheng are often not afforded the same treatment as other foreign nationals, particularly when facing espionage charges.

Wong’s trip signals a continued thaw in relations between the two nations since Australian Prime Minister Anthony Albanese won an election victory in May, replacing the more conservative Scott Morrison in the top role.

Albanese and Chinese President Xi Jinping met on the sidelines of the Group of 20 summit last month in Bali, the first such formal meeting between the leaders of the two nations in six years.

Chinese Foreign Ministry spokesperson Mao Ning said China hopes the visit will build on the momentum toward improved ties established at the Bali summit.

China hopes the two countries will “push bilateral relations back to the right track and achieve sustainable development,” Mao said at a daily briefing this week.

Relations between Australia and China have been poor for several years after China imposed trade barriers and refused high-level exchanges in response to Australia enacting rules targeting foreign interference in its domestic politics and calling for an independent inquiry into the COVID-19 pandemic.

Jennifer Hsu, a research fellow at the Lowy Institute think tank, said the resumption of diplomatic dialogue was a welcome development.

She said she could “see the wheels starting to move with regards to a number of issues pertaining to Australia and China.”

“It would be great if a breakthrough happens but these things take time,” Hsu said.

She noted that China could reap some economic benefit from relaxing its trade sanctions on Australian goods.

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December 19, 2022
2 COVID-19 deaths reported in Beijing as virus surges

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BEIJING — Chinese health authorities on Monday announced two additional COVID-19 deaths, both in the capital Beijing, that were the first reported in weeks and come during an expected surge of illnesses after the nation eased its strict “zero-COVID” approach.

China had not reported a death from COVID-19 since Dec. 4, even though unofficial reports of a new wave of cases are widespread.

With the latest reported deaths, the National Health Commission raised China’s total to 5,237 deaths from COVID-19 in the past three years, out of 380,453 cases of illness — numbers that are much lower than in other major countries but also based on statistics and information-gathering methods that have come into question.

Chinese health authorities count only those who died directly from COVID-19, excluding people whose underlying conditions such as diabetes and heart disease were worsened by the virus.

In many other countries, guidelines stipulate that any death where the coronavirus is a factor or contributor is counted as a COVID-19-related death.

The announcement comes amid testimony from family members and people who work in the funeral business who did not want to be identified for fear of retribution saying deaths tied to COVID-19 were increasing.

China had long hailed its hardline “zero-COVID” approach as keeping numbers of cases and deaths relatively low — comparing itself favorably to the U.S., where the death toll has topped 1.1 million.

Yet, the policy of lockdowns, travel restrictions, mandatory testing and quarantines placed China’s society and the national economy under enormous stress, apparently convincing the ruling Communist Party to heed outside advice and alter its strategy.

The easing began in November, and accelerated after Beijing and several other cities saw protests over the restrictions that grew into calls for President Xi Jinping and the Communist Party to step down — a level of public dissent not seen in decades.

On Wednesday, the government said it would stop reporting asymptomatic COVID-19 cases since they’ve become impossible to track with mass testing no longer required. Most testing is now carried out privately, with those showing only mild symptoms allowed to recuperate at home without being forced into a centralized quarantine center.

The lack of data has made it more difficult to grasp the scale of the outbreak or its direction. However, a major drop in economic activity and anecdotal evidence of the virus’ spread point to a growing caseload, while health experts have projected a possible major wave of new infections and a spike in deaths over the next month or two, particularly among the elderly.

China is trying to persuade reluctant seniors and others at risk to get vaccinated, apparently with only moderate success. The other major concern is shoring up health resources in smaller cities and the vast rural hinterland ahead of January’s Lunar New Year travel rush, which will see migrant workers returning to their home towns.

Numbers of fever clinics have been expanded in both urban and rural areas and people have been asked to stay home unless seriously ill to preserve resources. Hospitals are also running short on staff, and reports say workers have been asked to return to their posts as long as they aren’t feverish.

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December 18, 2022
Foxconn to ease COVID-19 curbs in Chinese iPhone factory

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HONG KONG — The company that assembles Apple Inc.’s iPhones has announced it is easing COVID-19 restrictions at its largest factory in China that led thousands of workers to quit and drastically slowed production.

Foxconn Technology Group said in a statement on one of its official WeChat social media accounts that it would end the so-called “closed loop” system at the facility in Zhengzhou, central China, that required workers to stay in their workplaces and dormitories to prevent the spread of coronavirus infections.

The move announced Wednesday came about a week after China began easing harsh COVID-19 curbs despite signs the number of infections is rising.

Following a spate of protests across the country last month many “zero-COVID” restrictions were lifted. That means people no longer need to take frequent COVID-19 tests to travel on public transport. If they do test positive for the virus, they can isolate at home if they have only mild or no symptoms instead of being sent to a quarantine center.

Chinese President Xi Jinping’s government is still officially committed to stopping virus transmission. But the government’s latest moves suggest authorities will tolerate more infections without quarantines or shutting down travel or businesses.

Thousands of workers at the huge factory in Zhengzhou walked out in late October over complaints of unsafe working conditions — such as food shortages due to closed cafeterias — and a virus outbreak at the plant.

The last quarter of the year is typically a busy season for companies like Foxconn as they ramp up production ahead of the end of year holiday rush. Apple has warned that iPhone 14 deliveries would be delayed due to manufacturing disruptions.

Foxconn, headquartered in New Taipei City, Taiwan, has been trying to rebuild its workforce after the massive walkout in late October. The company then ended up apologizing after a pay dispute triggered protests by workers who said Foxconn had changed the terms of wages offered to attract them to the factory.

In its announcement, the company said it would no longer provide free meals to workers because factory cafeterias would reopen. Instead, meal expenses will be deducted from employees’ wages as usual, though workers who must quarantine after testing positive for the virus will still get free meals.

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December 15, 2022
Today in History: December 15, Bill of Rights takes effect

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Today in History

Today is Thursday, Dec. 15, the 349th day of 2022. There are 16 days left in the year.

Today’s Highlight in History:

On Dec. 15, 1791, the Bill of Rights, the first 10 amendments to the U.S. Constitution, went into effect following ratification by Virginia.

On this date:

In 1890, Sioux Indian Chief Sitting Bull and 11 other tribe members were killed in Grand River, South Dakota, during a confrontation with Indian police.

In 1939, the Civil War motion picture epic “Gone with the Wind,” starring Vivien Leigh and Clark Gable, had its world premiere in Atlanta.

In 1944, a single-engine plane carrying bandleader Glenn Miller, a major in the U.S. Army Air Forces, disappeared over the English Channel while en route to Paris.

In 1967, the Silver Bridge between Gallipolis (gal-ih-puh-LEES’), Ohio, and Point Pleasant, West Virginia, collapsed into the Ohio River, killing 46 people.

In 1978, President Jimmy Carter announced he would grant diplomatic recognition to Communist China on New Year’s Day and sever official relations with Taiwan.

In 1989, a popular uprising began in Romania that resulted in the downfall of dictator Nicolae Ceausescu (chow-SHEHS’-koo).

In 2000, the long-troubled Chernobyl nuclear power plant in Ukraine was closed for good.

In 2001, with a crash and a large dust cloud, a 50-foot tall section of steel — the last standing piece of the World Trade Center’s facade — was brought down in New York.

In 2011, the flag used by U.S. forces in Iraq was lowered in a low-key Baghdad airport ceremony marking the end of a war that had left 4,500 Americans and 110,000 Iraqis dead and cost more than $800 billion.

In 2013, Nelson Mandela was laid to rest in his childhood hometown, ending a 10-day mourning period for South Africa’s first Black president.

In 2016, a federal jury in Charleston, South Carolina, convicted Dylann Roof of slaughtering nine Black church members who had welcomed him to their Bible study.

In 2020, the Food and Drug Administration cleared the first kit that consumers could buy without a prescription to test themselves for COVID-19 entirely at home. After weeks of holding out, Russian President Vladimir Putin congratulated Joe Biden on winning the presidential election.

Ten years ago: A day after the massacre at Sandy Hook Elementary School in Newtown, Connecticut, investigators worked to understand what led the 20-year-old gunman to slaughter 26 children and adults after also killing his mother and before taking his own life. In his Saturday radio address, President Barack Obama declared that “every parent in America has a heart heavy with hurt” and said it was time to “take meaningful action to prevent more tragedies like this.”

Five years ago: Republicans revealed the details of their huge national tax rewrite; the 35 percent tax rate on corporations would fall to 21 percent, and the measure would repeal the requirement under President Barack Obama’s Affordable Care Act that all Americans have health insurance or face a penalty. Senate Minority Leader Chuck Schumer said the middle class would “get skewered” under the GOP tax measure, while the wealthy and corporations would “make out like bandits.”

One year ago: Former Minneapolis police Officer Derek Chauvin pleaded guilty to a federal charge of violating George Floyd’s civil rights, admitting for the first time that he held his knee across Floyd’s neck and kept it there even after Floyd became unresponsive, resulting in the Black man’s death. A federal appeals court panel lifted a nationwide ban against President Joe Biden’s vaccine mandate for health care workers, instead blocking the requirement in only certain states and setting the stage for patchwork enforcement across the country. New York City Mayor-elect Eric Adams named Keechant Sewell, a Long Island police official, as the city’s next police commissioner, making her the first woman to lead the nation’s largest police force.

Today’s Birthdays: Singer Cindy Birdsong (The Supremes) is 83. Rock musician Dave Clark (The Dave Clark Five) is 80. Rock musician Carmine Appice (Vanilla Fudge) is 76. Actor Don Johnson is 73. Actor Melanie Chartoff is 72. Movie director Julie Taymor is 70. Movie director Alex Cox is 68. Rock musician Paul Simonon (The Clash) is 67. Movie director John Lee Hancock is 66. Democratic Party activist Donna Brazile is 63. Country singer Doug Phelps (Brother Phelps; Kentucky Headhunters) is 62. Movie producer-director Reginald Hudlin is 61. Actor Helen Slater is 59. Actor Paul Kaye (TV: “Game of Thrones”) is 58. Actor Molly Price is 57. Actor Garrett Wang (wahng) is 54. Actor Michael Shanks is 52. Actor Stuart Townsend is 50. Figure skater Surya Bonaly is 49. Actor Geoff Stults is 46. Actor Adam Brody is 43. Actor Michelle Dockery is 41. Actor George O. Gore II is 40. Actor Camilla Luddington is 39. Rock musician and actor Alana Haim (HYM) is 31. Actor Maude Apatow (AP’-ih-tow) is 25. Actor Stefania Owen is 25.

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December 14, 2022
China removes 6 diplomats from UK after protester assaulted

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LONDON — China’s government has removed a Chinese consul general and five of his staff following the assault on a Hong Kong pro-democracy protester at the Chinese consulate in Manchester, Britain’s foreign secretary said Thursday.

James Cleverly said British police wanted to question the six officials over the assault on protester Bob Chen, who said masked men came out from the consulate building during a peaceful protest in October, dragged him into the consulate grounds and beat him up.

Police said officers at the scene had to intervene and remove Chen, who suffered injuries to his face and back.

Cleverly said Britain’s Foreign Office requested Beijing waive the diplomatic immunity of the six officials to allow police investigating the matter to question them.

“In response, the Chinese Embassy, acting on instructions from Beijing, notified His Majesty’s Government that the functions of the Consul General in Manchester have come to an end and he has returned to China,” Cleverly said. He added that the other staff have “either left the United Kingdom or will shortly do so.”

Chen welcomed Thursday’s development in a statement.

“It has been two months since I was attacked in Manchester by staff members of the Chinese Consulate,” he said. “What happened on 16 October 2022 was unacceptable and illegal, and the withdrawal of these Chinese diplomats gives me a sense of closure.”

The incident, which was captured on video, had increased tensions between Britain and China. China’s foreign ministry maintained that Chen had illegally entered the consulate, and that Chinese diplomatic staff have the right to maintain security on their premises.

In response, the Chinese Embassy in the U.K. issued a statement denying all wrongdoing and saying Cleverly made “irresponsible comments by distorting facts.”

It repeated its contention that protesters “illegally intruded into the consulate premises and assaulted consulate officials, thus gravely undermining the safety and dignity of consulate officials.”

China has “launched solemn representations with the U.K.,” it said, implying that retaliatory action could follow.

“The U.K. side must be clear that reciprocity is an essential principle in diplomacy. Any act that undermines China’s interests will definitely be met with forceful responses,” it said.

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December 14, 2022
China students return home amid fears of COVID-19 spread

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BEIJING (AP) — Some Chinese universities say they will allow students to finish the semester from home in hopes of reducing the potential for a bigger COVID-19 outbreak during the January Lunar New Year travel rush.

It wasn’t clear how many schools were participating, but universities in Shanghai and nearby cities said students would be given the option of returning home early or staying on campus and undergoing testing every 48 hours. The Lunar New Year, which falls on Jan. 22, is traditionally China’s busiest travel season.

Universities have had frequent lockdowns in the past three years, occasionally leading to clashes between authorities and students confined to campus or even their dorm rooms.

With so many people staying home, Beijing’s downtown streets were eerily quiet Tuesday, giving it the feel of a voluntary lockdown. Small lines formed outside fever clinics — which have recently increased from 94 to 303 — and at pharmacies, where cold and flu medications are harder to find.

Restaurants were mostly closed or empty, as many businesses are having difficulty finding enough staff who haven’t gotten infected. Sanlitun, one of Beijing’s most popular shopping districts, was deserted despite having its anti-COVID fences taken down in recent days.

Tuesday’s announcements came as China begins relaxing its strict “zero-COVID” policy, allowing people with mild symptoms to stay home rather than be sent to a quarantine center, among other changes that followed widespread protests.

Starting Tuesday, China stopped tracking some travel, potentially reducing the likelihood people will be forced into quarantine for visiting COVID-19 hot spots. Despite that, China’s international borders remain largely shut and there has been no word on when restrictions will be eased on inbound travelers and Chinese wanting to go overseas.

The move follows the government’s dramatic announcement last week that it was ending many of the strictest measures, following three years during which it enforced some of the world’s tightest virus restrictions.

Last month in Beijing and several other cities, protests over the restrictions grew into calls for leader Xi Jinping and the Communist Party to step down — a level of public dissent not seen in decades.

While met with relief, the relaxation also has sparked concerns about a new wave of infections potentially overwhelming health care resources in some areas.

Despite a push to boost vaccinations among the elderly, two centers set up in Beijing to administer shots were empty except for medical personnel. Despite fears of a major outbreak, there was little evidence of a surge in patient numbers.

At the Beixinqiao district vaccination center, 10 nurses waiting to give shots stood in an otherwise empty auditorium. The nurses declined interviews, saying they needed official permission.

“With the emergence of new variants of the coronavirus as it spreads around the world, our country is coming under increasing pressure, and the epidemic prevention control situation is serious and complicated,” a sign outside the office said.

“The whole world agrees that getting vaccinated is the most effective way of combating the epidemic. … Please, elderly friends, get vaccinated as quickly and as early as possible!”

While first-tier cities such as Beijing, Shanghai and Guangzhou have invested heavily in their medical systems, less-developed cities and the vast rural hinterland have far fewer resources and will likely spell the difference on whether China finds itself overwhelmed.

Many residents of mainland China have taken to ordering medication from pharmacies in Hong Kong, which has already relaxed many restrictions.

The government of the semi-autonomous southern city took a further step Tuesday, saying it would remove restrictions for arriving travelers that currently prevent them from dining in restaurants or going to bars for the first three days.

It would also scrap the use of its contact-tracing app, although vaccine requirements to enter venues like restaurants will remain in place. Those going from Hong Kong to mainland China and Macao will no longer have to take a PCR test at border checkpoints, although they still face several days in quarantine on the mainland side. The new measures take effect Wednesday.

Hong Kong will gradually reduce PCR testing, including the compulsory screening notices issued to residential buildings, and more rapid test kits will be given out in the community, according to the city’s health minister.

The easing of controls on the mainland means a sharp drop in obligatory testing from which daily infections numbers are compiled, but cases appear to be rising rapidly, with many people testing themselves at home and staying away from hospitals.

China reported 7,451 new infections Monday, bringing the nation’s total to 372,763 — more than double the level on Oct. 1. It has recorded 5,235 deaths — compared with 1.1 million in the United States.

China’s government-supplied figures have not been independently verified and questions have been raised about whether the Communist Party has sought to minimize numbers of cases and deaths.

The U.S. consulates in the northeastern Chinese city of Shenyang and the central city of Wuhan will offer only emergency services from Tuesday “in response to increased number of COVID-19 cases,” the State Department said.

“Mission China makes every effort to ensure full consular services are available to U.S. citizens living in the PRC, but further disruptions are possible,” an emailed message said, using the initials for China’s official name, the People’s Republic of China.

Xi’s government is still officially committed to stopping virus transmission. But the latest moves suggest the party will tolerate more cases without quarantines or shutting down travel or businesses as it winds down its “zero-COVID” strategy.

Amid the unpredictable messaging from Beijing, experts warn there still is a chance the party might reverse course and reimpose restrictions if a large-scale outbreak ensues.

The change in policy comes after protests erupted Nov. 25 after 10 people died in a fire in the northwestern city of Urumqi. Many questioned whether COVID-19 restrictions impeded rescue efforts. Authorities denied the claims spread online, but demonstrators gave voice to longstanding frustration in cities such as Shanghai that have endured severe lockdowns.

The party responded with a massive show of force and an unknown number of people were arrested at the protests or in the days following.

___

Associated Press writers Zen Soo and Kanis Leung in Hong Kong and Dake Kang in Beijing contributed.

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December 12, 2022
China students return home amid COVID travel spread fears

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BEIJING — Some Chinese universities say they will allow students to finish the semester from home in hopes of reducing the potential of a bigger COVID-19 outbreak during the January Lunar New Year travel rush.

It wasn’t clear how many schools were taking part, but universities in Shanghai and nearby cities said students would be given the option of either returning home early or staying on campus and undergoing testing every 48 hours. The Lunar New Year, which falls on Jan. 22 this year, is traditionally China’s busiest travel season.

Universities have been the scene of frequent lockdowns over the past three years, occasionally leading to clashes between the authorities and students confined to campus or even their dorm rooms.

Tuesday’s announcements came as China begins relaxing its strict “zero-COVID” policy, allowing people with mild symptoms to stay home rather than be sent to a quarantine center, among other changes that followed widespread protests.

Starting from Tuesday, China has stopped tracking some travel, potentially reducing the likelihood people will be forced into quarantine for visiting COVID-19 hot spots. Despite that, China’s international borders remain largely shut and there has been no word on when restrictions on inbound travelers and Chinese wishing to go overseas will be eased.

The move follows the government’s dramatic announcement last week that it was ending many of the strictest measures, following three years during which it enforced some of the world’s tightest virus restrictions.

Last month in Beijing and several other cities, protests over the restrictions grew into calls for leader Xi Jinping and the Communist Party to step down — a level of public dissent not seen in decades.

While met with relief, the relaxation has also sparked concerns about a new wave of infections potentially overwhelming health care resources in some areas.

With so many people staying home, Beijing’s downtown streets were eerily quiet on Tuesday. Small lines formed outside fever clinics — the number of which has been recently increased from 94 to 303 — and at pharmacies, where cold and flu medications have become harder to find.

Many residents of mainland China have taken to ordering medication from pharmacies in Hong Kong, which has already relaxed many restrictions.

The government of the semi-autonomous southern city took a further step Tuesday, saying it would remove restrictions for arriving travelers that currently prevent them from dining in restaurants or going to bars for the first three days. It would also scrap the use of its contact-tracing app, although vaccine requirements to enter venues like restaurants will remain in place. The new measures take effect Wednesday.

The easing of control measures on the mainland means a sharp drop in obligatory testing from which daily infections numbers are compiled, but cases appear to be rising rapidly, with many testing themselves at home and staying away from hospitals.

China reported 7,451 new infections on Monday, bringing the nation’s total to 372,763 — more than double the level on Oct. 1. It has recorded 5,235 deaths — compared to 1.1 million in the United States.

China’s government-supplied figures have not been independently verified and questions have been raised about whether the ruling Communist Party has sought to minimize numbers of cases and deaths.

The U.S. consulates in the northeastern Chinese city of Shenyang and the central city of Wuhan will offer only emergency services from Tuesday “in response to increased number of COVID-19 cases,” the State Department said.

“Mission China makes every effort to ensure full consular services are available to U.S. citizens living in the PRC, but further disruptions are possible,” an e-mailed message said, using the initials for China’s official name, the People’s Republic of China.

Xi’s government is still officially committed to stopping virus transmission, the last major country to try. But the latest moves suggest the party will tolerate more cases without quarantines or shutting down travel or businesses as it winds down its “zero-COVID” strategy.

Amid the unpredictable messaging from Beijing, experts warn there still is a chance the ruling party might reverse course and reimpose restrictions if a large-scale outbreak ensues.

The change in policy comes after protests erupted Nov. 25 after 10 people died in a fire in the northwestern city of Urumqi. Many questioned whether COVID-19 restrictions impeded rescue efforts. Authorities denied the claims spread online, but demonstrators gave voice to longstanding frustration in cities such as Shanghai that have endured severe lockdowns.

The party responded with a massive show of force and an unknown number of people were arrested at the protests or in the days following.

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December 12, 2022
Hong Kong publisher’s security trial further delayed

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HONG KONG — The national security trial of a Hong Kong pro-democracy publisher was further postponed Tuesday to next September as the city awaits Beijing’s ruling that could effectively block him from hiring a British defense lawyer.

Jimmy Lai, who was arrested in August 2020 during a crackdown on the city’s pro-democracy movement, is fighting charges of endangering national security. The 75-year-old founder of the now-defunct pro-democracy newspaper Apple Daily faces up to life in prison if convicted under a sweeping National Security Law imposed by Beijing.

His high-profile trial, which was originally scheduled to begin on Dec. 1, was already delayed earlier this month after Hong Kong leader John Lee asked China’s top legislative body to decide whether foreign lawyers who don’t normally practice in Hong Kong could be involved in national security cases.

Lee made the request hours after the city’s highest court approved Lai’s plan to employ Timothy Owen, a veteran human rights lawyer.

If Beijing intervenes, that would mark the sixth time the Communist-ruled government has stepped in despite its promise to respect Hong Kong’s judicial independence and civil liberties for at least 50 years after China took over from Britain in 1997.

Members of China’s top lawmaking body are expected to meet in late December. But the law’s interpretation was not part of the meeting’s agendas reported by China’s official Xinhua News Agency last Friday. Hong Kong’s sole delegate to the body said Monday that in some previous events, new agendas were only being added during the meeting. But Tam Yiu-chung could not tell how the committee would handle Lee’s request.

Judge Esther Toh scheduled the trial to begin Sept. 25, 2023, in light of the latest development and taking the schedules of the court and lawyers into account. It is expected to end Nov. 21.

Owen left Hong Kong after the immigration department denied his visa extension while the authorities were still waiting on Beijing’s decision, Lai’s lawyer said.

Lai is accused of conspiring with others in hostile activities against Hong Kong or China, such as calling for sanctions. He also faces a charge of collusion with foreign forces to endanger national security, and a separate sedition charge under a colonial-era law that is increasingly used to crush dissent.

He was sentenced Saturday to five years and nine months in jail over fraud, after completing a 20-month jail term for his role in unauthorized assemblies.

The U.S. Department of State spokesperson Ned Price condemned the latest sentencing Sunday on Twitter, calling on China’s authorities to respect Hong Kong’s freedom of expression, including for the press.

In response, the Hong Kong government said the statement was political interference in the city’s judicial system, adding the fraud case had nothing to do with press or speech freedoms.

Meanwhile, former Stand News editor-in-chief Chung Pui-kuen, who was accused of conspiring to publish seditious materials, secured bail Tuesday in a separate court hearing after being held in custody for almost a year. The now-shuttered Stand News was one of the city’s last news media that openly criticized the government after the closure of Apple Daily.

Chung and his former colleague Patrick Lam were charged under a colonial-era sedition law that has been used increasingly to silence critical voices in the city. Lam was granted bail last month.

Hong Kong fell more than 60 places to 148th place in Reporters Without Borders’ World Press Freedom Index released in May. The global media watchdog cited the closure of the two outlets in its rating.

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December 12, 2022
Wall Street falls as US inflation slows but remains hot

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NEW YORK — A choppy day of trading on Wall Street ended with stocks broadly lower Friday, after a new report showed that inflation is slowing less than hoped just days before Federal Reserve officials are expected to raise interest rates again.

The S&P 500 and Nasdaq composite each fell 0.7%, while the Dow Jones Industrial Average dropped 0.9%. Smaller company stocks fell even more, pulling the Russell 2000 index 1.2% lower. The indexes marked their first losing week in the last three.

The U.S. government reported that prices paid at the wholesale level were 7.4% higher in November than a year earlier. That’s a slowdown from October’s wholesale inflation rate of 8.1%, but it was still slightly worse than economists expected.

“There’s a sense that inflation has plateaued, but that said it’s still sticky and the Fed is most likely going to have to push harder,” said Quincy Krosby, chief equity strategist for LPL Financial.

The nation’s high inflation, along with the Federal Reserve’s economy-crunching response to it, have been the main reasons for Wall Street’s painful tumble this year. Stocks have recovered some of their losses recently, as inflation has slowed since hitting a peak in the summer. But it remains too high, raising the risk the Federal Reserve will have to keep hiking interest rates sharply to get it fully under control.

Treasury yields climbed as traders stepped up bets for how high the Fed will ultimately take interest rates. The central bank has already hiked its key overnight rate to a range of 3.75% to 4%, up from basically zero as recently as March.

Its next decision on rates is scheduled for next week, and the general expectation is for it to raise rates by another half of a percentage point.

Friday’s economic data did not sway Wall Street’s expectations on that, not after several Fed officials hinted recently they may step down from their string of four straight hikes of 0.75 percentage points. Such a dial down would mean less added pressure on markets and the economy. Even so, the Fed has said it may still take rates higher than markets expect before taking a pause.

Higher rates hurt the economy by making it more expensive for companies and households to borrow money, which forces them to cut back on spending. If rates go too high, it can cause a recession. They also drag down on prices for stocks and all kinds of other investments.

A separate report on Friday showed U.S. households are paring expectations a bit for inflation in the future. That’s key for the Fed, which wants to prevent a vicious cycle where households rush to make purchases on fears prices will rise further. Such buying activity only fans inflation higher.

Households are forecasting inflation of 4.6% in the year ahead, according to the survey by the University of Michigan. That’s the lowest such reading in 15 months, though still well above where it was two years ago. Expectations for longer-run inflation remain stuck in the 2.9% to 3.1% range where they’ve been for 16 of the last 17 months, at 3%.

Overall sentiment among consumers was also stronger than economists expected, according to the University of Michigan’s preliminary reading. That’s good news for the economy, which gets most of its strength from spending by such consumers. But it can also complicate the Fed’s task. If such spending remains resilient, it could keep up the pressure on inflation.

The last big piece of data on inflation before the Fed’s next decision arrives on Tuesday, when economists expect the consumer price index to show that inflation slowed to 7.3% last month from 7.7% in October.

“The two most important questions for next year are how fast inflation will drop and how much will it need to drop for the Fed to stop tightening,” foreign-exchange strategists wrote in a BofA Global Research report. “We are concerned markets too optimistic on both.”

Roughly 75% of the stocks in the S&P 500 closed lower Friday, with health care, technology and energy among the sectors that weighed down the market most. The benchmark index fell 29.13 points to 3,934.38. It finished 3.4% lower for the week and is now down 17.5% this year.

The Dow fell 305.02 points to 33,476.46, while the Nasdaq slid 77.39 points to 11,004.62. The Russell 2000 dropped 21.63 points to 1,796.66.

The yield on the two-year Treasury, which tends to track expectations for Fed action, rose to 4.36% from 4.26% just before Friday’s inflation report was released. It was at 4.31% late Thursday.

The yield on the 10-year Treasury, which helps dictate rates for mortgages and other loans, rose to 3.58% from 3.49% late Thursday.

In overseas stock markets, European indexes closed higher after recovering from a pullback following the U.S. inflation report.

Chinese benchmarks rose Friday on reports the government is planning new measures to support the ailing property sector, which has been a severe drag on growth over the past several years.

The relaxation of some of China’s “zero-COVID” rules is also raising hopes the economy will gain momentum, though experts say it will take months for tourism and other business to recover from the disruptions of the pandemic. It historically has been a major source of the global economy’s growth.

———

AP Business Writers Elaine Kurtenbach and Matt Ott contributed.

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December 9, 2022
US keeps eye on China’s space activities for potential risks

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BEIJING — The U.S. is closely monitoring Chinese activities that potentially threaten American assets in space as debris rapidly accumulates in low Earth orbit, the head of United States military operations in space said Friday.

Commander of U.S. Space Command Army Gen. James Dickinson also cheered the overwhelming passage in the United Nations of a resolution that countries not conduct direct-ascent antisatellite tests that create vast fields of space debris, which endanger satellites and space stations.

Of the four countries that have conducted such ASAT tests, the United States was the only one that voted in favor, while China and Russia voted no and India abstained.

“We can’t continue to contribute to the debris that we find in the space domain,” Dickinson said in a telephone news conference with reporters in Asia. Most of that debris lies in crucial low Earth orbit, which has become “congested, competitive and contested,” he said.

Even tiny shards of metal can pose a danger and the number of objects is growing rampantly. Space Command is now tracking more than 48,000 in near Earth orbit, including satellites, telescopes, space stations and pieces of debris of all sizes, up from 25,000 just three years ago, Dickinson said.

China in 2003 became the third government to send an astronaut into orbit on its own after the former Soviet Union and the United States. Its program has advanced steadily since.

The Chinese space program drew rare international criticism after it conducted an unannounced test in 2007 in which it used a missile to blow up a defunct Chinese satellite, creating debris that continues to pose a hazard.

Beijing believes that “space is a very important piece to not only their economic or the global economic environment, but also the military environment, so we continue to watch that very closely as they continue to increase capabilities,” Dickinson said.

The secretive Chinese program is run by the ruling Communist Party’s military wing, the People’s Liberation Army, precluding it from participating in the International Space Station or engaging in most forms of cooperation with NASA.

Proceeding with little outside help, China last month launched the last of three modules for its own space station, which briefly hosted six Chinese astronauts in space during a turnover of the three-person crew. It also has rovers on the moon and Mars and is planning a crewed lunar mission sometime in the future.

With U.S.-China tensions high over Taiwan, the South China Sea, trade and technology, space is increasingly becoming a potential flash point. In addition, the Pentagon last week released an annual China security report that warned Beijing would likely have 1,500 nuclear warheads by 2035, and that it has provided no clarity on how it plans to use them.

China continues to “build capabilities that, really quite frankly, hold most of our assets at risk in the space domain,” Dickinson said.

Russia’s invasion of Ukraine has further showed space to be a “contested domain that must be protected. It’s a role that we at U.S. Space Command take very seriously,” he said.

“I’m seriously focused on our pacing challenge, China,” Dickinson said, using a description of Beijing that has become standard in the Pentagon. “The unified stance of our allies and partners is critical in countering the coercion and subversion that threatens the international rules-based order here in the Indo-Pacific and beyond,” Dickinson said.

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December 8, 2022