HONG KONG: Hong Kong police charged the chief editor and chief executive of newspaper Apple Daily on Friday (Jun 18) with collusion with a foreign country, a national security case that has sent chills through the city's media.
On Thursday, 500 police raided the media outlet and officers were seen sitting in front of computers in the newsroom after the arrest of five Apple Daily executives at dawn on suspicion that dozens of its articles violated Hong Kong's new security law.
Police said it charged two of the five on Friday, identified by Apple Daily as editor-in-chief Ryan Law and chief executive officer Cheung Kim-hung. The other three, Chief Operating Officer Chow Tat-kuen, Deputy Chief Editor Chan Puiman and Chief Executive Editor Cheung Chi-wai, remain under investigation.
Police also said they would prosecute three companies related to Apple Daily for the same offence after freezing HK$18 million (US$2.32 million) of their assets.
The arrests have raised further alarm over media freedom in Hong Kong and have been criticised by Western governments and international rights groups and press associations.
The chief UN human rights spokesperson, Rupert Colville, told Reuters on Friday the raid "sends a further chilling message for media freedom".
The national security law imposed by Beijing in 2020 on the former British colony has dropped an authoritarian chill over most aspects of life in Hong Kong, including education and arts.
Supporters flocked to buy copies of Apple Daily on Friday to protest against the raid.
The popular 26-year-old paper, which combines liberal discourse with celebrity gossip and investigations of those in power, increased its Friday press run to 500,000 copies, up from 80,000 the previous day.
"HANG IN THERE"
In the Mong Kok district, queues formed at some kiosks at midnight, with some customers carting off hundreds of first editions on trolleys and suitcases.
"You never know when this newspaper will die," said one reader surnamed Tsang who only gave his last name because of the sensitivity of the matter. "As Hong Kongers, we need to preserve the history. Hang in there as long as we can. Although the road is rough, we still need to walk it, as there's no other road."
By the morning, some newsstands in central Hong Kong had already sold out. One displayed a picture of Apple's logo with the words "Support press freedom" beneath it.
Tam, a 40-year-old banker, said he'd bought his first newspaper in 20 years after hearing about the raid.
"I don't mean to do anything with the newspaper in my hand. It's just for my conscience," he said.
It was the second time police had raided the newsroom after the arrest last year of media tycoon Jimmy Lai, an activist and staunch Beijing critic, who owns Next Digital, which publishes Apple Daily.
The newspaper printed a similar number after Lai's arrest in August 2020. Lai's assets have since been frozen as he faces three charges under the security law. He is serving prison sentences for taking part in illegal assemblies.
It was the first case in which authorities have cited media articles as potentially violating the security law, imposed after almost a year of mass protests.
Hong Kong officials have repeatedly said that media freedom and other rights would remain intact, but that national security was a red line.
China's Foreign Commissioner's Office said in a statement the national security law protected press freedom, while warning "external forces" to "keep their hands off Hong Kong".
On Thursday night in the Apple Daily newsroom, Ng, a graphics journalist who only gave his last name, said the raid was "really a pathetic moment for Hong Kong".
"If we can’t survive, there's no more press freedom," Ng said as he worked.
BANGKOK: Thailand's planned reopening of the resort island Phuket next month to vaccinated visitors, bypassing quarantine requirements, has met a lukewarm response, with hotel bookings indicating expected occupancy of less than 20 per cent so far.
The "Phuket Sandbox" initiative from Jul 1 will allow free movement on the island for tourists fully vaccinated against COVID-19, with no self-isolation on arrival. They will be given a green light to travel elsewhere in Thailand after 14 days.
But there are a few tricky conditions, too, and many industry professionals have complained that uncertainty and constant rule changes are deterring bookings. The plan will not be finalised until later this month.
"This will be a slow process. None of us are expecting a 100 per cent occupancy on Jul 2," said Anthony Lark, president of the Phuket Hotels Association.
Thai Airways is on board, with direct flights from six European cites to Phuket from July, although it anticipates only a fraction of seats being filled, with about 100 passengers in the first week, the airline's representatives said.
For an economy reliant on tourism for jobs and consumption, the new arrivals will not bring immediate relief, although removal of the costly, two-week quarantine requirements that deterred tourists for more than a year offers some hope.
"We're seeing strong interest, particularly from the Middle East, UK, Europe and Scandinavia already, to return to Phuket gradually," Lark said.
Thailand lost about US$50 billion in tourism revenue last year when foreign arrivals plunged 83 per cent to 6.7 million, from a record 39.9 million in 2019. The slump was attributed to global travel curbs and Thailand's tough entry requirements. Phuket was particularly hard hit by job losses and business closures.
The government hopes the Phuket Sandbox will draw 129,000 visitors to the country in the third quarter - a far cry from the average 3.3 million monthly arrivals to Thailand in 2019. Typically, a quarter of Thailand's visitors go to Phuket.
Thailand had just 28,701 visitors in the first four months of this year.
Empty chairs are seen on a beach which is usually full of tourists in Phuket on Mar 11, 2020. (File photo: Reuters/Soe Zeya Tun)
SCEPTICS ABOUND
One Phuket hotel owner said the sandbox initiative was "a bunch of bull" that would make little difference, in part because much of the target audience - middle class and wealthy Asians - must quarantine upon their return home.
"More than 50 per cent of Phuket tourism comes from China," said the hotelier, who asked not to be named.
"Without that market it will be difficult."
The island's hotel association has projected a gradual increase in occupancy to 30 to 40 per cent towards year-end, rising from 10 to 20 per cent over July to October, which includes local bookings.
Several major airlines are backing the plan and offering direct flights, including Emirates, El Al, Air France, Qatar Airways, British Airways and Cathay Pacific, according to the Tourism Authority of Thailand (TAT).
Singapore Airlines told Reuters its Phuket flights will increase from two per week to seven from July, after receiving interest from customers.
But a few obstacles remain, with outbound movement restrictions in some key markets, like China, Japan and Malaysia, while Thai health authorities have banned visitors from some high-risk countries, like India.
Critics also complain of onerous conditions, like mandatory swab tests, insurance coverage of a minimum US$100,000 for COVID-19 treatment and use of a tracking application.
For its part, Phuket has been racing to vaccinate 70 per cent of its residents - a requirement for reopening - with 60 per cent having received a first dose so far, a rate far higher than capital Bangkok, the epicentre of Thailand's worst outbreak yet.
Phuket has recorded single digit cases most days since May, when it introduced negative test requirements for domestic arrivals. Bangkok, in contrast, recorded hundreds of new cases each day last month.
Prime Minister Prayut Chan-o-cha on Thursday said Thailand was reopening to visitors within 120 days, and called it a calculated but necessary risk.
If the sandbox scheme goes smoothly, authorities plan to replicate it in destinations like Krabi and Koh Samui.
"Its a totally new situation. You are trying to reopen the country to tourism to help the economy but at the same time you need to be cautious," said Chattan Kunjara Na Ayudhya, deputy governor of TAT.
HONG KONG: Hong Kong police charged the chief editor and chief executive of newspaper Apple Daily on Friday (Jun 18) with collusion with a foreign country, a national security case that has sent chills through the city's media.
On Thursday, 500 police raided the media outlet and officers were seen sitting in front of computers in the newsroom after the arrest of five Apple Daily executives at dawn on suspicion that dozens of its articles violated Hong Kong's new security law.
Police said it charged two of the five on Friday, identified by Apple Daily as editor-in-chief Ryan Law and chief executive officer Cheung Kim-hung. The other three, Chief Operating Officer Chow Tat-kuen, Deputy Chief Editor Chan Puiman and Chief Executive Editor Cheung Chi-wai, remain under investigation.
Police also said they would prosecute three companies related to Apple Daily for the same offence after freezing HK$18 million (US$2.32 million) of their assets.
The arrests have raised further alarm over media freedom in Hong Kong and have been criticised by Western governments and international rights groups and press associations.
The chief UN human rights spokesperson, Rupert Colville, told Reuters on Friday the raid "sends a further chilling message for media freedom".
The national security law imposed by Beijing in 2020 on the former British colony has dropped an authoritarian chill over most aspects of life in Hong Kong, including education and arts.
Supporters flocked to buy copies of Apple Daily on Friday to protest against the raid.
The popular 26-year-old paper, which combines liberal discourse with celebrity gossip and investigations of those in power, increased its Friday press run to 500,000 copies, up from 80,000 the previous day.
"HANG IN THERE"
In the Mong Kok district, queues formed at some kiosks at midnight, with some customers carting off hundreds of first editions on trolleys and suitcases.
"You never know when this newspaper will die," said one reader surnamed Tsang who only gave his last name because of the sensitivity of the matter. "As Hong Kongers, we need to preserve the history. Hang in there as long as we can. Although the road is rough, we still need to walk it, as there's no other road."
By the morning, some newsstands in central Hong Kong had already sold out. One displayed a picture of Apple's logo with the words "Support press freedom" beneath it.
Tam, a 40-year-old banker, said he'd bought his first newspaper in 20 years after hearing about the raid.
"I don't mean to do anything with the newspaper in my hand. It's just for my conscience," he said.
It was the second time police had raided the newsroom after the arrest last year of media tycoon Jimmy Lai, an activist and staunch Beijing critic, who owns Next Digital, which publishes Apple Daily.
The newspaper printed a similar number after Lai's arrest in August 2020. Lai's assets have since been frozen as he faces three charges under the security law. He is serving prison sentences for taking part in illegal assemblies.
It was the first case in which authorities have cited media articles as potentially violating the security law, imposed after almost a year of mass protests.
Hong Kong officials have repeatedly said that media freedom and other rights would remain intact, but that national security was a red line.
China's Foreign Commissioner's Office said in a statement the national security law protected press freedom, while warning "external forces" to "keep their hands off Hong Kong".
On Thursday night in the Apple Daily newsroom, Ng, a graphics journalist who only gave his last name, said the raid was "really a pathetic moment for Hong Kong".
"If we can’t survive, there's no more press freedom," Ng said as he worked.
KUALA LUMPUR: Malaysia must be careful when using the term "herd immunity" as COVID-19 is likely to stay even after a large portion of the population is vaccinated, national coordinating minister for immunisation Khairy Jamaluddin said on Wednesday (Jul 16).
Mr Khairy, who was speaking at an online forum organised by the Oxford & Cambridge Alumni Network Malaysia, said vaccination is not a guaranteed solution to the pandemic, but merely “one tool in an arsenal of measures” Malaysia has to combat COVID-19.
“I've stopped using that term.
"Some of the other leaders are still using the term ‘herd immunity’. I have advised the prime minister to be careful when using the term herd immunity, simply because it is my view as the coordinating minister looking at the data and the science that this may very well be endemic,” Mr Khairy, who is also Minister of Science, Technology and Innovation, said.
“We may see COVID in a less threatening form but it will stay with us for quite some time,” he added.
Earlier this month, Health Minister Adham Baba said Malaysia has ordered enough vaccines to cover 109 per cent of its population who qualify for inoculation, with the aim of achieving herd immunity against COVID-19 by December.
Based on latest statistics published by Malaysia’s Special Committee on Covid-19 Vaccine Supply (JKJAV), around 14.6 million people have registered for the national COVID-19 immunisation programme. Out of this, over 3.8 million have been fully vaccinated.
This is still some way off Malaysia’s target of achieving herd immunity by inoculating 80 per cent of its population, or 26.7 million out of the total 33 million people in the country.
Prime Minister Muhyiddin Yassin was quoted by Malaysian media on Sunday as saying that the federal territories of Kuala Lumpur and Putrajaya would likely reach herd immunity by August with the opening of more vaccination centres.
Mr Khairy reiterated the vaccination targets in Wednesday's online forum, stating how the vaccination exercise would be completed for the population in Selangor, Kuala Lumpur, Putrajaya and Sarawak by the end of August.
Meanwhile, the vaccination exercises for key economic states Penang and Johor would likely be done in October, while the rest of Malaysia would be completed by December.
He maintained that while it was crucial for Malaysia to focus on vaccinations, it could be “slightly misleading” given that it is just one tool in an arsenal of measures required.
He explained that moving forward, it was important for Malaysia to err on the side of caution when it comes to doing away with non-pharmaceutical interventions such as wearing face masks and ensuring social distancing in public spaces.
“I think some countries may have done this too early, especially with the B16172 variant which is far more transmissible than the original version of the virus,” said Mr Khairy.
He added that Malaysia was making inroads into preparing to live with the virus by introducing testing as part of everyday life.
He said that discussions were being held with neighbours Singapore to collaborate on a COVID-19 breathalyser test. The BreFence Go COVID-19 breath test system, which was developed by Breathonix, a spin-off company of the National University of Singapore (NUS), can generate results within one minute and has received provisional authorisation from Singapore’s Health Sciences Authority (HSA).
"MALAYSIA IS DOING PRETTY WELL"
During the webinar, Mr Khairy presented a slide showcasing the percentage of the population in some Asian countries which has received at least one dose of the COVID-19 vaccine.
The graph indicated that Malaysia had a higher percentage of its population who has received at least one dose, as compared to some of its neighbouring countries.
“As you can see, benchmarked against our neighbors Indonesia, Thailand, Philippines, Vietnam, and I'm talking (about) our bigger neighbours here because I don't run a country which is the size of a postage stamp, you see that Malaysia is doing pretty well,” said Mr Khairy.
"Even compared against a country like Japan, we are slowly creeping up towards Japan,” he added.
FILE PHOTO: A medical worker prepares a dose of a vaccine for COVID-19 at a vaccination centre in Sunway Medical Centre, in Subang Jaya, Malaysia Mar 12, 2021. (Photo: REUTERS/Lim Huey Teng)
However, Mr Khairy pointed out how Malaysia’s numbers pale in comparison with countries such as Canada, United Kingdom and the United States, because those countries had “hoarded vaccines”, he said.
“This is a story about vaccine inequity, where it's not the capacity of vaccination that we cannot ramp up but rather it is the supplies,” said Mr Khairy.
“It’s a bigger issue that we need to discuss after this pandemic is over, about intellectual property, about the sharing of patents, about opening up patents and about ensuring a fairer distribution of vaccines in a pandemic,” he added.
KUALA LUMPUR: When Louis Ooi, the chief executive of a lab testing company, realised that almost half of his employees have not registered for the COVID-19 national immunisation programme, he decided to encourage them.
My CO2, which provides accreditation services for products, has been allowed to operate during the current nationwide total lockdown. Hence, Ooi felt it was important for his employees to be vaccinated to avoid potential disruptions to operations.
After discussing with senior management, Ooi decided to offer employees an RM150 (US$36.20) cash incentive to get vaccinated. Employees are able to claim the cash incentive after they have received their first dose.
Ooi told CNA that after the incentive was announced, the rate of registration among his employees for the national immunisation programme rose from around 50 per cent to more than 90 per cent.
“You can never stop future lockdowns without getting vaccinated and achieving herd immunity. That’s the only way,” said Ooi.
He added that RM150 was a "small token" in comparison with the amount his company would need to fork out in paying for COVID-19 swab tests if an outbreak occurs within the premises.
“There’s a chain effect, a multiplier effect, to encourage more people to get vaccinated,” said Ooi.
The company's decision is an example of a wider collective effort, from businesses to politicians, to nudge the country towards herd immunity by offering various incentives to persuade Malaysians to get vaccinated.
Examples of these incentives include lucky draws, vouchers, off days from work as well as cash.
As of Jun 17, statistics published by Malaysia’s Special Committee on COVID-19 Vaccine Supply (JKJAV) show that more than 14 million people have signed up for the national COVID-19 immunisation programme. Out of this, just over 3.6 million have been fully vaccinated.
However, this is still some way off Malaysia’s target of achieving herd immunity by inoculating 80 per cent of its population, or 26.7 million out of the total 33 million people in the country.
Four months after the government rolled out its immunisation programme, vaccine hesitancy remains an issue. Among the reasons include the distance involved when getting to vaccination centres, fear of the side effects and a lack of understanding of why it was important for the country to achieve herd immunity, said observers.
Minister for Science, Technology and Innovation Khairy Jamaluddin. (File photo: Bernama)
Khairy Jamaluddin, the minister who heads the National COVID-19 Immunisation Programme, was quoted as saying by Malaysian media earlier this month that the government was considering incentives to boost the registration rate. However, he did not provide any specifics or a timeline.
The minister also reportedly said that he was in favour of providing “carrots” before wielding a “stick” at those who have yet to register themselves as part of the national vaccination drive.
Besides My CO2, another company also offering incentives for its employees to get jabbed was OCBC Malaysia.
In a move to encourage its 5,000 employees to register for the national immunisation programme, the company is offering incentives such as off days, medical leave, transport reimbursement as well as post-vaccination support.
Responding to CNA's queries, head of human resources for OCBC Malaysia Kok Lai Ching said that since the offer was announced, “an encouraging number of employees” has applied for vaccination leave.
“From the various fragmentary statistics we have on those who have been vaccinated or have registered interest, it is safe to say we are well on our way to a favourably high vaccination rate in the weeks to come,” said Kok.
BURGER CHAIN OFFERS RM10 VOUCHER TO CUSTOMERS
Meanwhile, other businesses are offering incentives not only for their employees but also for customers.
Gourmet burger chain myBurgerLab posted on its social media channels that it is offering those who have received their first dose a RM10 voucher for takeaway orders.
The company's co-founder Chin Ren Yi told CNA that he is hopeful the offer will encourage those who have been hesitant to register.
"If we were to move forward and return to some form of normalcy, vaccination is key ... We have a responsibility to encourage and educate the people of Malaysia that getting vaccinated is not just for yourself but for the people around you," said Chin.
Chin said that around 3,700 customers have redeemed the vouchers and he is expecting more to come.
People wait to receive the AstraZeneca COVID-19 vaccine at a vaccination centre in Kuala Lumpur, Malaysia on May 5, 2021. (Photo: Reuters/Lim Huey Teng)
Chin also said that it was possible that in the future, myBurgerLab would only allow customers who have been fully vaccinated to dine-in.
"I understand that some people can't get vaccinated because they have health issues or unique problems but those are rare," said Chin.
"We should encourage and reward people who are vaccinated to come to our stores because they should not have to fear contracting COVID-19 (when dining with us)," he added.
An example is Member of Parliament Sim Tze Tzin who had learnt, through discussions with his friends who were living abroad, about how some countries were turning to an array of persuasive methods to entice people to get vaccinated.
Sim cited how in the United States, residents in some areas would qualify for a US$1 million lottery ticket if they were inoculated. Additionally, he noted how in Hong Kong, property tycoons have donated brand new apartment units to vaccine lotteries.
Maintaining that he only had “limited finances” at his disposal, Sim decided to hold monthly RM1,000 lucky draws for those in his constituency who have registered for their vaccination appointments through the MySejahtera application.
“The response has been overwhelming,” Sim told CNA.
“Residents have flooded my Instagram and Facebook pages with messages asking how they can join the lucky draw. Some are also encouraging their parents and family members to register for vaccination so that they can also participate,” he added.
MP Sim Tze Tzin giving RM1,000 to his resident, Saw Hong Chee, who won the lucky draw for the month of June. (Photo: Facebook/Sim Tze Tzin)
From speaking to his constituents on the ground, Sim realised that the lucky draw was a positive tipping point for some people.
“Usually these people who are hesitant, they took the wait-and-see approach. If you have something to incentivise them, that little bit of nudge, they will register,” said Sim.
He added that around 55 per cent of those in his ward have registered to receive the vaccine, higher than the national average of around 42 per cent.
Sim, who represents opposition party Parti Keadilan Rakyat (PKR), plans to continue the monthly lucky draw until residents in Bayan Baru, Penang, reach herd immunity.
Other lawmakers have offered free transportation to vaccination centres.
Opposition MP Maszlee Malik s offering free taxi rides for residents who need to travel to the vaccination centre in Simpang Renggam, Johor. (Photo: Facebook/Dr Maszlee Malik)
Through his Facebook page, MP for Simpang Renggam Maszlee Malik is offering residents, especially the elderly or those with special needs, a free taxi ride to vaccination centres.
In Sabah, the state representative of Sook district Ellron Alfred Angin told local media that he has provided transportation for dozens of residents living in rural villages to the city to receive their vaccine shots.
Sim of PKR stressed that it was important for Malaysia to have a holistic approach in encouraging residents to be vaccinated, to ensure the country’s economic survival and exert less pressure on its healthcare system.
“It has to be an all society approach, it cannot just be the government, the opposition members of parliament must (commit to this) regardless of political affiliations,” said Sim.
“Achieving herd immunity is a tall order, so we are putting aside political differences, and pushing together for the country,” he added.
Sim also expressed hope that the private sector, which has a larger pool of finances, could play a bigger role in encouraging people to be vaccinated.
“They can maybe offer huge incentives like free motorbikes or condominium units as part of CSR (corporate social responsibility) for the state governments to conduct lucky draws,” said Sim.
“It has to be an all community, all Malaysian effort,” he added.
HONG KONG: There has been much hype around the announcement by the G7 of the Build Back Better World (B3W) initiative as a counter measure to China’s Belt and Road Initiative (BRI).
But a nuanced understanding of the B3W reveals a more complex set of objectives depending on who you ask.
For one, the B3W is not new.
While hailed as a new initiative under the Joe Biden administration, the idea of an alternative infrastructure programme to China’s was initiated under President Donald Trump ‘s administration under the ambit of the bipartisan Better Utilisation of Investments to Development (BUILD) Act passed by the House and Senate and signed into law by Trump in 2018.
Central to the BUILD programme was less the objective of countering China and more the aim to encourage private sector investment into developing countries that would reduce the need for US foreign aid.
The focus was on funding hard infrastructure, such as electricity, that would help less developed countries attract investment to grow their way out of poverty.
The BUILD Act also had the mandate to invest up to US$60 billion in private sector investment to fight extreme poverty.
The US would do this by converting the US Overseas Private Investment Corporation (OPIC) into a new international Development Finance Corporation (USIDFC) with modernised financing capabilities, including the ability to provide equity financing, local currency loans and guarantees.
Then US President Donald Trump. (Photo: AFP/CHIP SOMODEVILLA)
This new USIDFC, established under the BUILD Act, would make loans, invest in and forge partnerships with those wanting to do business in low- to middle-income countries as a minority investor.
MOUDLING INTERNATIONAL INFRASTRUCTURE FINANCING
It was only in 2019 that the USIDFC gained international muscle through the mooting of a Blue Dot Network (BDN) in which the US joined forces with Japan and Australia but remained open to other countries joining the network in supporting high-quality, private sector led investments.
Framed in terms of countering Chinese influence under an Indo-Pacific strategy, the BDN would indeed offer an alternative to China’s BRI and tap into the US$1.3 trillion dollars in trade volume between China and the countries along the BRI in 2018.
It would fill the demand for international infrastructure financing with a US model through mobilising private capital while giving governments skin in the game in mitigating endemic risks including political, legal and social risks.
But it was clear the three countries couldn’t do it on their own. Enter the B3W.
The B3W is an extension of the BDN. At a high level, the B3W and BDN appear to be guided by similar policy and principal guidelines in meeting the development needs of the poorer countries subscribing to agreed standards like the G20 Principles for Quality Infrastructure Investment endorsed in Osaka in 2019.
By mobilising private sector capital, the B3W’s funding is aimed at addressing four specific areas (i.e., climate, health, digital technology, and gender equity), enlisting an ”alliance of democracies” to project soft power driven by common values, good governance and established standards.
Indeed, the B3W announcement has been positioned as a “democratic” alternative to the BRI and a foreign policy move by the US to showcase President Biden’s foreign relations credentials, signal that the US is back and shore up the US’s influence in transatlantic relations, after a dismal four years under Trump.
But even amid all that puffery, US allies are wary of isolating China, with UK Prime Minister Boris Johnson at the G7 expressing a desire to frame this as a “green BRI” granting access to financing for low-carbon projects like clean energy that “shows who we are, not who we are against”.
Britain's Prime Minister Boris Johnson gestures, during a press conference on the final day of the G7 summit in Carbis Bay, Cornwall, England, Sunday June 13, 2021. (Ben Stansall/Pool Photo via AP)
While planning to offer a US$100 billion a year in alterative loans, the G7 has collectively signalled it is more keen on a path forward less seen as a challenge of China and more a framework in which G7 nations can still engage with China.
Even within the US, some politicians rather call this the “Green Marshall Plan”, to avoid demonising the BRI.
THE DRAWBACKS OF THE B3W
Perhaps the better question is whether the B3W can credibly rival the BRI. The answer is less certain. The B3W after all is playing catch-up. Being a nascent idea, the B3W naturally lacks a clear pathway forward that helps developing countries access global trade and build their respective economies.
In comparison, the eight-year-old BRI has an integrated, regional infrastructure development plan based on supply chain considerations connecting markets via integrated port-rail-road transport networks.
Not only has the BRI created employment in local markets in the construction phase, it has also facilitated commercial sustainability by enhancing access to export markets.
Another advantage that the BRI has is the Digital Silk Road that overlays the BRI, digitally connecting even the most remote of markets, with BRI countries obliged to use the digital network and standards of China when doing trade. But the B3W does not impose this level of integration.
The challenge also is how the B3W will treat projects with significant carbon footprints commonplace in developing countries.
Under the B3W investment criteria, there would be no funding given to coal-fired power stations but developing countries might have few credible energy alternatives. Meanwhile, under China’s BRI green investment guidelines, funding would be given to high-efficiency low-emissions coal power stations.
It also remains unclear whether the B3W private sector funding model, funded by patient capital including pension funds, insurance companies and other private investors, will be able to catalyse development on the scale of the BRI, which uses China’s vast foreign exchange reserves and financing from state banks to back projects.
For now, it is difficult to see how the B3W can rival the cooperation agreements with 140 countries and 31 international organisations enjoyed by China’s BRI.
TIMING IS EVERYTHING
Then again, COVID-19 has exposed a number of shortcomings of the BRI, particularly with 20 per cent of BRI projects being put on hold.
China is advancing plans to build the new carbon-belching power stations abroad as part of its trillion-dollar Belt and Road Initiative. (Photo: AFP/Rizwan TABASSUM)
These project delays have highlighted the fundamental problem afflicting many BRI projects of a lack of upfront due diligence with the result being that many BRI projects have often simply traded speed early in the project cycle for far more difficult problems later.
Tied financing that favour the use of Chinese contractors and opaque practices have also been associated with cost blow-outs and corruption scandals, most infamously in the case of the East Coast Rail Link project in Malaysia.
And with several countries now challenging China’s claims that BRI had been built on mutual respect, strong people-to-people bonds and non-interference in national sovereignty, there is a window of opportunity for the B3W to make itself more relevant.
Andre Wheeler is chief executive of Asia Pacific Connex and has 20 years of international business experience in the US and Asia-Pacific.
WASHINGTON: The White House will consider arranging talks between President Joe Biden and his Chinese counterpart, Xi Jinping, as the two countries spar over issues including human rights, a top US official said on Thursday (Jun 17).
Biden's national security adviser Jake Sullivan said that the two leaders are due to "take stock of where we are in the relationship".
Beijing fumed over a communique issued at Biden's urging by the Group of Seven leaders on Sunday. It scolded the country over human rights in its Xinjiang region and Hong Kong while also demanding a full and thorough investigation of the origins of the coronavirus in China.
"Soon enough we will sit down to work out the right modality for the two presidents to engage," Sullivan told reporters on a conference call.
"It could be a phone call, it could be a meeting on the margins of another international summit, it could be something else."
Biden and Xi are both expected to attend the G20 meeting in October hosted by Italy, one possible venue for such talks. Sullivan said no final decisions have been made.
Asked if he would call on Xi to push for an investigation in COVID-19 origins, Biden on Wednesday told reporters: "We know each other well; we're not old friends. It's just pure business."
