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Rabu, 27 Mei 2020

US business to Trump: Go slowly on Hong Kong response - CNA

WASHINGTON: Business groups are urging US President Donald Trump to go slowly in responding to Bejing's planned imposition of new national security laws on Hong Kong, warning revoking the city's special US privileges will hurt the territory and its people.

US Secretary of State Mike Pompeo declared on Wednesday China's actions had voided Hong Kong's autonomy.

That cleared the way for White House steps ranging from imposing sanctions on some senior Chinese officials to fully ending the 22-year US practice of treating Hong Kong separately from China on trade, visas, investments and export controls.

READ: US revokes Hong Kong special status as furore grows on China law

Hong Kong's special status has helped keep the former British colony of 7.5 million - which hosts operations of 1,300 US companies and about 85,000 American residents - one of the world's premier financial hubs since reverting to Chinese rule in 1997.

Details of the new Chinese legislation, which could see mainland security agencies to set up operations in Hong Kong, are being deliberated this week by China's parliament.

"The text of the law in China has not yet been released. Words matter," said Craig Allen, the president of the US-China Business Council. The group would like to see all sides "de-escalate and maintain the 'one country, two systems' model for Hong Kong, which has served everyone so well for so many years," he said.

The US Chamber of Commerce on Tuesday stressed jeopardising Hong Kong's special status would be a "serious mistake".

Pompeo's declaration leaves room to move slowly, and acting quickly could inflict pain on Hong Kong and waste US leverage over Beijing, said Scott Kennedy, a senior adviser and China expert at the Center for Strategic and International Studies in Washington.

The US declaration has "opened the door to massive changes but they have not walked through it yet," Kennedy said. "It may rattle markets and have executive suites examining Plan Bs and Plan Cs but not necessarily immediately moving."

READ: Hong Kong police fire pepper ball rounds at protesters, arrest 300 people

Pressure in the US-China relationship is mounting over issues including trade, technology restrictions and the coronavirus pandemic. On Wednesday, the House of Representatives backed legislation calling on Trump to impose sanctions on Chinese officials responsible for oppression of China's Uighur Muslim minority.

DRIP BY DRIP

Some international financial firms have halted Hong Kong expansion plans and shifted staff to other Asian centres after protests in the city last year. A major change in Hong Kong's legal status could accelerate that trend, risk managers and consultants say.

"I do think that the drip-by-drip process of companies leaving had already begun. The promulgation of a national security law really throws fuel on that fire," said Todd Mariano, director of Eurasia Group's US practice in Washington.

Dane Chamorro, a partner in Control Risk Group's Asia Pacific practice, said a larger exodus would depend on whether the security law preserves Hong Kong's business law framework and the free movement of capital.

"You will have people concerned about it for sure, but they're not going to leave as long as those two things are there," Chamorro said, adding many international companies operate in countries with onerous security regimes.

What's more important is preserving the sanctity of contracts, consistent labour rules and predictable regulation, Chamorro said.

READ: Hong Kong bankers worry that new security laws could lead to capital flight

Peter Humphrey, a former corporate fraud investigator who was imprisoned by China for nearly two years, said few companies are prepared for a "sudden event" where Chinese security forces seize control.

"Hong Kong is now under much greater threat of intervention than it has been before, that's how I see it," said Humphrey, now an external research associate with Harvard University's Fairbank Center for Chinese Studies.

Foreign companies in Hong Kong, especially those dealing with confidential information, need plans "to switch off their operations instantly", he said.

MORE: Our coverage of the Hong Kong protests

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2020-05-28 02:17:23Z
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Top campaign adviser says Biden would sanction China over Hong Kong - CNA

DETROIT: Joe Biden would sanction China if president for its plan to impose new national security rules on Hong Kong, his campaign said on Wednesday (May 27), and accused President Donald Trump of having "enabled" Beijing's curbs on freedoms in the former British colony.

The United States had to "take a stand against China's crackdown in Hong Kong", said Tony Blinken, a senior foreign policy adviser for Biden, the likely Democratic nominee to take on Trump in November's election.

READ: US revokes Hong Kong special status as furore grows on China law

READ: Hong Kong's controversial security law: What is it and why does China want it?

He said the former vice president would rally American allies to pressure China – leverage he said Trump had "forfeited" – and criticised the Republican president for praising leader Xi Jinping in the face of protests that shook Hong Kong last year.

A Biden administration would "fully enforce" the Hong Kong Human Rights and Democracy Act, "including sanctions on officials, financial institutions, companies and individuals", Blinken said in a statement.

The act, approved by Trump last year, requires the State Department to certify at least annually that Hong Kong retains enough autonomy to justify the favorable US trading terms that have helped it remain a world financial center.

US Secretary of State Mike Pompeo told Congress on Wednesday the proposed new legislation undermines Hong Kong's autonomy so fundamentally that he could not support recertification.

It now falls to President Donald Trump to decide to end some, all or none of the US economic privileges the territory enjoys. He said on Tuesday Washington was working on a strong response that would be announced before the end of the week.

READ: Hong Kong police fire pepper ball rounds at protesters, arrest 300 people

Beijing's security proposal, unveiled last week, sparked the first large street demonstrations in Hong Kong for months.

Demonstrators in Hong Kong have for years opposed the idea of national security laws, arguing they could erode the city's high degree of autonomy guaranteed under the "one country, two systems" formula in place for two decades.

"China shouldn't get the economic benefit of Hong Kong's free economy without the rule of law that underpins it," Blinken said.

MORE: Our coverage of the Hong Kong protests

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2020-05-28 01:28:08Z
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Travelling or telecommuting – how COVID-19 could affect public transport costs in Singapore - CNA

SINGAPORE: It could be more expensive to take the bus or train in future if telecommuting becomes the norm in the long term, even after the COVID-19 pandemic dies down.

Lower ridership means a drop in fare revenues for operators. They may eventually have to adjust fares or rely on more government subsidies to ensure that public transport continues running, said experts.

The issue of costs and funding would also “depend critically” on how long safe distancing measures would be implemented on buses and trains, said Associate Professor Theseira, who heads the Singapore University of Social Science’s master of urban transport management programme.

“What is affecting financing is safe distancing, because it forces us to operate a full schedule of services but with very low ridership per service run,” he said. “There is no way for any public transport system to break even with low ridership on board each vehicle.”

Transport Minister Khaw Boon Wan had said earlier in May that fare revenues have dropped by about 80 per cent during the COVID-19 pandemic, putting transport operators under “significant financial stress”.

He noted that even as ridership has fallen, public transport operators have had to spend on additional cleaning and on deploying people to ensure safe distancing.

Additional costs incurred by operators are not "adequately covered" by current fares and will "eventually have to be borne by operators and taxpayers", Mr Khaw added.

READ: Additional costs incurred by public transport operators due to COVID-19 not 'adequately covered' by fares: Khaw Boon Wan

Public transport operators will have to cover some of the shortfall on their own and depend on more subsidies from the Government for the time being, said transport engineering consultant Gopinath Menon.

“Fares may need to eventually rise so that the commuters also contribute their share instead of just the public transport operators and the Government,” he added.

Transport mrt hdb flats Singapore - file photo — File photo of an MRT train against a backdrop of HDB blocks. (Photo: Jeremy Long)

In the longer term, however, changes may have to be made to the pricing policy.

“We have to look at a combination of pricing policy - not so much fare increases, but perhaps trying to spread out travel more - and perhaps other means of cost recovery such as earmarked taxes or charges,” said Assoc Prof Theseira.

“For example, public transport in many cities is financed specifically from local taxes from businesses that benefit the most from public transport connectivity, such as those within some distance of train stations,” he pointed out.

PREVENTING TRANSMISSION ON PUBLIC TRANSPORT

For commuters returning to work or school, they will have to be mindful of safe distancing rules.

Experts note that measures to prevent crowding on buses and trains may be challenging to enforce after the circuit breaker period ends on Jun 1.

That is why it is compulsory for commuters to wear masks.

READ: Safe distancing on public transport to 'largely remain in place' after COVID-19 circuit breaker ends

They should also avoid talking on the phone or to one another, noted Professor Teo Yik Ying, dean of the National University of Singapore's Saw Swee Hock School of Public Health.

“These measures are aimed to minimise people from producing aerosolised droplets that go on to infect others or settle on surfaces,” said Prof Teo.

“If there is very little contact between people and no conversation, then the chance of droplets being expelled will be significantly reduced, and this in turn reduces the risk of infection to fellow commuters.”

COVID-19 MRT face masks circuit breaker — Commuters wear face masks on an MRT train in Singapore on Mar 18, 2020. (Photo: Roslan RAHMAN / AFP)

Other ways to prevent the spread of COVID-19 on public transport could include the regular testing of frontline workers such as drivers, as well as increasing the frequency of buses and trains, although Prof Teo noted that this would increase operating costs substantially.

RETHINKING TRANSPORT

As an alternative to crowded mass transit, some countries, including Italy and Colombia, are turning to cycling as a mode of transport.

France is investing 20 million euros (S$31 million) in subsidising bicycle travel, while Britain has announced an ambitious £2 billion plan to promote “active travel” modes such as cycling and walking.

While Singapore has its own initiative to encourage cycling - the Government plans to invest more than S$1 billion on cycling paths over the next decade - Assoc Prof Theseira believes cycling is not yet a “realistic alternative” for most commuters because of the long distances between population centres and workplaces, as well as the lack of dedicated cycling paths connecting the two.

READ: London streets to go car-free to encourage walking and cycling amid COVID-19 social distancing restrictions

Singapore should continue to invest in public transport infrastructure, even if ridership were to decline in the longer term, said Assoc Prof Theseira.

“Extensiveness of the network is different from intensity of services. We need an extensive network so that you don't need private transport and to provide redundancy,” he explained. “However, service frequency and intensity could be adjusted to save costs.”

Commuters wearing protective face masks wait for the bus, amid the coronavirus disease (COVID-19) outbreak in Singapore May 15, 2020. REUTERS/Edgar Su

Transport consultant Mr Menon believes the coronavirus outbreak is an “opportune time” to review Singapore’s overall transport policies.

Such a review should consider the provision of additional bus lanes and cycling lanes, and taking away lanes for motor vehicles, he added.

“Otherwise, we go back to the old system where the cars still dominate, with nothing having been changed, and the pollution levels return.”

In the longer term, Mr Menon hopes concerns over COVID-19 will also lead to greater decentralisation in urban planning - so people will be able to travel shorter distances for work and leisure - in addition to telecommuting and more flexible work arrangements.

READ: Commentary: Do you really want to work from home forever like some Twitter employees can?

The long term increase in adoption of telecommuting in response to COVID-19 would be a “great thing for everyone”, said Assoc Prof Theseira.

“Travel is actually economically inefficient. What we gain from economic activities around travel - such as supply of transport services, fuel and so on - is far outstripped by the value destruction from congestion, consumption of fossil fuels, environmental harm, time wasted,” he said.

There would however be adjustment costs, he noted, pointing to the impact of reduced demand on the taxi and private-hire car sectors.

“But while these costs may be painful to pay, a sustained reduction in local travel demand will eventually be better for the economy, because doing business without a need to physically travel is much more efficient,” he said.

BOOKMARK THIS: Our comprehensive coverage of the coronavirus outbreak and its developments

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2020-05-27 22:25:53Z
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Canadian court rules against Huawei executive fighting extradition - CNA

VANCOUVER: Chinese Huawei executive Meng Wanzhou suffered a legal setback on Wednesday (May 27) when a Canadian judge ruled that proceedings to extradite her to the United States will go ahead.

The decision on so-called double criminality, a key test for extradition, found that bank fraud accusations against Meng would stand up in Canada.

READ: Huawei CFO Meng loses key court fight against extradition to United States

The interim ruling denying Meng's attempt to gain her freedom means she will continue to live in a Vancouver mansion under strict bail conditions while her case plays out.

It also effectively dashes hopes for a quick mending of Canada-China relations, which soured following her arrest on a US warrant in 2018 during a stopover in Vancouver.

"The double criminality requirement for extradition is capable of being met in this case," British Columbia Supreme Court Justice Heather Holmes said in her 23-page ruling.

"Ms Meng's application is therefore dismissed," she added.

Prosecutors accused Meng of committing fraud by lying to a bank, in this case an American one. That is a crime in both Canada and the United States.

Outside the courthouse, protesters held placards reading "Extradite Meng Wanzhou," "No Huawei in Canada" and "Canada don't let China bully us."

Inside, Meng sat solemnly as the judge explained her decision, in contrast to a thumbs up the "Huawei Princess" had given while posing for pictures with family and friends on the steps of the courthouse days earlier.

In response to the decision, the China's Embassy in Ottawa accused the United States of trying "to bring down Huawei" and Canada of being "an accomplice."

"The whole case is entirely a grave political incident," it said in a statement.

"We once again urge Canada to take China's solemn position and concerns seriously, immediately release Ms Meng Wanzhou to allow her to return safely to China, and not to go further down the wrong path."

Beijing has long signaled that her repatriation was a precondition for improved bilateral ties and its release of two Canadians detained on espionage suspicions.

The arrests of former Canadian diplomat Michael Kovrig and businessman Michael Spavor nine days after Meng was taken into custody have been widely decried as retribution.

While the eldest daughter of Huawei founder Ren Zhengfei has been out on bail, the two Canadians remain in China's opaque penal system.

China has also blocked billions of dollars' worth of Canadian agricultural exports.

READ: China tells US to stop 'unreasonable suppression' of Huawei

Prime Minister Justin Trudeau has insisted on leaving it to the courts to decide Meng's fate.

He lamented last week that communist-led China "doesn't seem to understand" the meaning of an independent judiciary.

On Wednesday his foreign minister, Francois-Philippe Champagne, said Canada would "continue to pursue principled engagement with China to address our bilateral differences and to cooperate in areas of mutual interest."

He also said Ottawa would continue to press for the release of Kovrig and Spavor, "who have been arbitrarily detained for over 500 days," and for clemency for a third Canadian, Robert Schellenberg, facing execution.

During four days of hearings in January the court heard that Meng lied to the HSBC bank about Huawei's relationship with its own Iran-based affiliate Skycom in order to secure nearly US$1 billion in loans and credit, putting the bank at risk of violating US sanctions.

Lawyers for Canada's attorney general on behalf of the US Justice Department pointed to a 2013 presentation in Hong Kong in which she told HSBC executives that Huawei no longer owned Skycom and that she had resigned from its board.

The Crown called this a deception, asserting that Huawei controlled the operations of Skycom in Iran and held its purse strings.

"Lying to a bank to obtain financial services is fraud," Crown counsel Robert Frater told the court.

Defence lawyer Eric Gottardi accused the US of abusing its treaty with Canada by asking it to arrest Meng as part of a campaign against China's largest international company and leader in 5G or fifth-generation wireless technologies.

The court, however, dismissed defence arguments that the case hinged on the US sanctions against Iran that Canada had repudiated.

"The essence of the alleged wrongful conduct in this case is the making of intentionally false statements in the banker client relationship that put HSBC at risk," Holmes wrote.

"The US sanctions are part of the state of affairs necessary to explain how HSBC was at risk, but they are not themselves an intrinsic part of the conduct."

Holmes noted that her ruling in no way makes a determination on whether there is sufficient evidence to justify extradition.

That question will be decided at a later stage in the proceedings.

The case is now expected to continue to a second phase in June when the defence will challenge the lawfulness of her arrest, followed by more hearings in September.

Any appeals could further drag it out for years.

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2020-05-27 20:14:31Z
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US revokes Hong Kong special status as furore grows on China law - CNA

WASHINGTON, DC: The United States on Wednesday (May 27) revoked Hong Kong's special status under US law, paving the way to strip trading privileges for the financial hub as Washington accused China of trampling on the territory's autonomy.

Hours before China's rubber-stamp parliament was set to take a key vote on a new Hong Kong security law that has sparked protests, Secretary of State Mike Pompeo certified to Congress that Hong Kong "does not continue to warrant treatment" under US laws that it has enjoyed even after its handover to China in 1997.

Under a law passed last year to support Hong Kong's protesters, the US administration must certify that the territory still enjoys freedoms promised by Beijing when negotiating with Britain to take back the colony.

"No reasonable person can assert today that Hong Kong maintains a high degree of autonomy from China, given facts on the ground," Pompeo said in a statement.

Although the administration could still waive consequences, the US law says that Hong Kong would lose the trading advantages, including lower tariffs, that it enjoys with the world's largest economy.

Pompeo had initially delayed the report, saying the United States was waiting to see the session of China's National People's Congress.

The legislature is expected on Thursday to take another step on the security law that would ban secession, subversion, terrorism and foreign interference - a step that Hong Kong activists say abolishes basic freedoms.

"While the United States once hoped that free and prosperous Hong Kong would provide a model for authoritarian China, it is now clear that China is modeling Hong Kong after itself," Pompeo said.

"The United States stands with the people of Hong Kong as they struggle against the CCP's increasing denial of the autonomy that they were promised," he said, referring to the Chinese Communist Party.

PROTESTS FLARE

Protests also broke out in Hong Kong on Wednesday over another controversial proposed law that criminalises insults to the national anthem with up to three years in jail.

HK protests (1) — Hundreds of demonstrators with banners march along a downtown street during a protest against Beijing's national security legislation in Hong Kong. (AP Photo/Vincent Yu)

Police surrounded the city's legislature with water-filled barriers and conducted widespread stop-and-search operations to deter mass gatherings.

HK legislature — Riot police conduct operations to clear away people gathered in the Central district of downtown Hong Kong, as the city's legislature debates over a law that bans insulting China's national anthem. (Anthony WALLACE/AFP)

Small flashmob rallies in the districts of Causeway Bay, Mong Kok and Central, the latter broken up by officers firing crowd-control rounds filled with a pepper-based irritant.

READ: Hong Kong police fire pepper ball rounds at protesters, arrest 300 people

Police said more than 300 people were arrested, mostly on suspicion of holding an unlawful assembly. Live images showed many of those detained were teenagers.

"It's like a de facto curfew now," Nathan Law, an advocate told AFP. "I think the government has to understand why people are really angry."

"You can see there are police every corner, it's like martial law in force," added a woman, who gave her nickname Bean, after she was searched.

Police said that they "respect the right of residents to express their views peacefully, but it must be carried out legally," adding crowds were blocking roads.

Public gatherings of more than eight people are banned under emergency anti-coronavirus measures, although the city has halted its outbreak.

Requests by civil society groups to hold protests have been denied for months by authorities citing both the pandemic and last year's unrest.

GROWING UNREST

Under the "one country, two systems" model agreed before the city's return from Britain to China, Hong Kong is supposed to be guaranteed certain liberties until 2047 that are denied to those on the mainland.

The deal fuelled the city's rise as a world-class financial centre and gave Chinese companies a crucial channel to raise capital.

But in recent years, unrest has swept through the city, something Beijing's communist rulers are determined to end.

The Hong Kong legislature was blockaded and later trashed by demonstrators during last year's protests as officials tried to fast-track an eventually scrapped bill allowing extraditions to the authoritarian mainland.

US lawmakers have voiced hope that the loss of trading privileges would also serve as pressure, considering Hong Kong's importance to China's economy.

But Hong Kong's pro-Beijing government has vowed to pass the national anthem law as soon as possible.

"As Hong Kongers, we have a moral responsibility to respect the national anthem," Matthew Cheung, Hong Kong's de facto deputy leader, told reporters.

Beijing has been infuriated by Hong Kongers - especially football fans - booing the national anthem to signal dissatisfaction with China.

READ: Explainer: Hong Kong's China national anthem Bill aims to legislate 'respect'

Wednesday marked the bill's second reading and the debate is set to continue into next week when it will likely be approved and become law.

Beijing portrays Hong Kong's democracy protests as a foreign-backed plot to destabilise the motherland.

Activists say their rallies, which have been attended by millions, are the only way to voice opposition in a city without fully free elections.

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2020-05-27 18:06:00Z
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China ‘arrogant and aggressive’ over Hong Kong security law: EU politician - South China Morning Post

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China ‘arrogant and aggressive’ over Hong Kong security law: EU politician South China Morning Post
Hong Kong police fire pepper ball rounds at protesters, arrest 300 people CNA
Tension trade: Asian stocks dip on US-China row over Hong Kong Al Jazeera America
National security law: foreign businesses need clear details to allay fears South China Morning Post
The Guardian view on Hong Kong’s future: China’s doublespeak The Guardian
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2020-05-27 14:00:09Z
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Trump threatens to regulate or shut down social media companies - CNA

WASHINGTON: United States President Donald Trump on Wednesday (May 27) threatened to regulate or shut down social media companies, one day after Twitter for the first time added a warning to some of his tweets, prompting readers to fact check the president's claims.

Trump, without offering any evidence, reiterated his accusations of political bias by such technology platforms in a pair of early morning posts on Twitter, saying: "Republicans feel that Social Media Platforms totally silence conservatives voices. We will strongly regulate, or close them down, before we can ever allow this to happen."

He added: "Clean up your act, NOW!!!!"

"UNSUBSTANTIATED" TWEETS

Twitter targeted two tweets the president posted on Tuesday in which he contended without evidence that mail-in voting would lead to fraud and a "rigged election".

READ: Twitter places fact-check notification on Trump tweet about mail-in ballots

Under the tweets, Twitter posted a link that read "Get the facts about mail-in ballots" and took users to a notice calling the claims "unsubstantiated", citing reporting by CNN, the Washington Post and other media.

"Trump falsely claimed that mail-in ballots would lead to 'Rigged Election'," the notice contended.

"However, fact-checkers say there is no evidence that mail-in ballots are linked to voter fraud."

Trump threatens to regulate or shut down social media companies (1) — A screengrab of Donald Trump's tweet with an added warning by Twitter.

Trump aimed the misleading tweets at California, contending falsely that anyone living in the state would be sent ballots when in fact they will only go to registered voters, according to the notice.

The move drew a furious response from Trump, who used the platform to accuse Twitter of "interfering in the 2020 presidential election".

"Twitter is completely stifling FREE SPEECH, and I, as President, will not allow it to happen!" he tweeted.

The president has long used Twitter as a platform to reach his 80 million followers.

For years before being elected in 2016, he built his political brand by supporting the "birther" lie that Barack Obama, America's first black president, was not born in the US and therefore was not eligible to be president.

On Tuesday, Trump ignited a storm with an attempted character assassination of MSNBC host Joe Scarborough by spreading the baseless rumor he murdered an aide.

Twitter, perhaps fearing a clash with one of its most influential users, had previously held out against calls to act.

The tweets in question violated a recently expanded Twitter policy, according to the San Francisco-based company.

"In serving the public conversation, our goal is to make it easy to find credible information on Twitter and to limit the spread of potentially harmful and misleading content," head of site integrity Yoel Roth and global public policy director Nick Pickles said when the change was announced.

"VICIOUS LIE"

Twitter's decision comes as Trump, already facing US economic calamity and 100,000 deaths from COVID-19 as well as sinking re-election polls, received a storm of backlash over his pushing of the Scarborough conspiracy theory.

The entirely evidence-free story claims that Scarborough killed a woman he was having an affair with in 2001, when he was a Republican congressman and she was one of his staffers.

Trump ignited a storm with an attempted character assassination of MSNBC host Joe Scarborough — MSNBC host Joe Scarborough. (Photo: AFP/ROB KIM)

Trump pushed the story over the weekend. On Tuesday, he was at it again, tweeting: "The opening of a Cold Case against Psycho Joe Scarborough".

"So many unanswered & obvious questions, but I won't bring them up now! Law enforcement eventually will?" he wrote.

The deceased woman, Lori Klausutis, was found by investigators to have died after hitting her head during a fall in Scarborough's office, triggered by an abnormal heart rhythm.

Scarborough went on to become a prominent media personality, strongly critical of Trump, and is co-host of the Morning Joe show on MSNBC with his wife Mika Brzezinski, whom Trump calls "low IQ. Crazy Mika".

In a tweet Scarborough asked for people to "pray for Lori's family tonight. May God also soften the hearts of those who continue to slander this good woman's memory".

Klausutis' widower, Timothy Klausutis, wrote to Twitter CEO Jack Dorsey, pleading with him to delete Trump's "vicious lie".

"I'm asking you to intervene in this instance because the President of the United States has taken something that does not belong to him - the memory of my dead wife and perverted it for perceived political gain," he wrote in a letter published by The New York Times.

When asked about the letter, Trump told reporters at the White House: "I'm sure ultimately they want to get to the bottom of it and it's a very serious situation."

He added: "As you know, there is no statute of limitations."

Democratic presidential candidate Joe Biden said during a CNN interview on Tuesday that Twitter and other social media platforms should "say it's not true" when misleading statements are broadcast.

Asked about the fallout from the Scarborough tweets, a Twitter spokesman said "we are deeply sorry about the pain these statements, and the attention they are drawing, are causing the family".

"We've been working to expand existing product features and policies so we can more effectively address things like this going forward, and we hope to have those changes in place shortly."

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2020-05-27 12:16:36Z
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