Showing posts with label US News. Show all posts
Showing posts with label US News. Show all posts

Tuesday, June 6, 2023

US Defense Secretary ‘deeply concerned’ about China’s unwillingness to engage

Beijing hits back at Austin, accusing the U.S. of destroying stability in the Taiwan Strait.
Reported by RFA Staff from Singapore.
2023.06.03

US Defense Secretary ‘deeply concerned’ about China’s unwillingness to engageU.S. Secretary of Defense Lloyd Austin speaks at the First Plenary Session of the 20th IISS Shangri-La Dialogue in Singapore June 3, 2023

 

UPDATED at 12:44 p.m. ET on 2023-06-11

U.S. Secretary of Defense Lloyd Austin has urged China’s military leaders to engage after his call to meet with the Chinese counterpart was rebuffed, saying open lines of communication are “essential.” 

In his key address to the Shangri-La Dialogue security forum in Singapore on Saturday, Austin said that he is “deeply concerned that the PRC has been unwilling to engage more seriously on better mechanisms for crisis management between our two militaries.”

The defense secretary referred to China by its official name the People’s Republic of China.

“For responsible defense leaders, the right time to talk is anytime, the right time to talk is everytime and the right time to talk is now,” he said, adding that “dialogue is not a reward. It is a necessity.”

“And the more that we talk, the more that we can avoid the misunderstandings and miscalculations that could lead to crisis or conflict.”

Secretary Austin and Chinese Minister of National Defense Li Shangfu, who has been under U.S. sanctions since 2018, shared a brief handshake before an official dinner on Friday but did not speak to each other nor is a bilateral meeting between them anticipated.

"A cordial handshake over dinner is no substitute for a substantive engagement," Austin said.

Li Shangfu (1).jpg
China's Defense Minister Li Shangfu, attends the ministerial roundtable session during the 20th Shangri-La Dialogue, June 3, 2023. Credit: AP Photo/Vincent Thian

The U.S. defense chief slammed China which, he said, “continues to conduct an alarming number of risky intercepts of U.S. and allied aircraft flying lawfully in international airspace.”

Just last week, the U.S. military accused a Chinese J-16 fighter jet of performing an "unnecessarily aggressive" maneuver during the intercept of a U.S. Air Force RC-135 reconnaissance aircraft.

“We do not seek conflict or confrontation, but we will not flinch in the face of bullying or coercion,” Austin said.

The obvious rift between the two powers has “become the new reality,” said Huong Le Thu, a non-resident fellow at the Center for Strategic and International Studies (CSIS).

Regional countries have to accept it whether “they like it or not,” she told RFA.

“But they can contribute to managing the tensions by lowering the heat through facilitating and encouraging dialogues between the U.S. and China,” the analyst added.

Shared vision 

Hours after Austin gave his speech, the U.S. State Department announced that Daniel J. Kritenbrink, the assistant secretary of state for East Asian and Pacific Affairs, was going with a senior White House official to China to “discuss key issues in the bilateral relationship.”

Sarah Beran, senior director for China and Taiwan Affairs at the National Security Council, was to join Kritenbrink for the talks in Beijing, the State Department said in a statement released on Saturday morning (Washington time). Kritenbrink will be traveling to China and New Zealand, from June 4 through June 10, the statement said. 

In his speech at the Singapore forum, Carlito Galvez Jr., senior undersecretary and officer-in-charge at the Philippine Defense Department, said Manila believes that “the international law is the greatest equalizer among states.”

The Philippines won a legal case against China’s claims in the South China Sea at a U.N. tribunal in 2016 but Beijing has so far refused to accept the ruling.

The two countries have recently been embroiled in a new spat over their sovereignty in some of the islands in the Spratly archipelago.

"As the old adage goes, good fences make good neighbors," Galvez said. 

"It is only when neighbors have clear boundaries and respect for set boundaries that relations remain genuinely amicable," the acting defense secretary said.

Indonesia’s Defense Minister Prabowo Subianto said it is “imperative for us to overcome our geopolitical rivalries, our territorial disputes through dialogues, negotiations and win-win solutions.”

“Compromise is the only way that communities and societies can prosper,” he said, warning that the rivalry between superpowers “has turned into a Cold War” and in any war, “the danger of a catastrophe is always near.”

Austin close up (1).JPG
U.S. Secretary of Defense Lloyd Austin is attending the IISS Shangri-La Dialogue for the third time this year. Credit: Reuters/Caroline Chia

U.S. Defense Secretary Austin, however, insisted that his country “does not seek a new Cold War.”

“Competition must never spill over into conflict. And the region should never be split into hostile blocs,” he said.

Austin said Washington is not creating nor willing to create a new NATO in the Indo-Pacific as China has repeatedly alleged.

Yet the U.S. wishes to build “nimble coalitions to advance our shared vision” in order to make the Indo-Pacific “more stable and more resilient,” Austin said.

Washington lists Australia, Japan, the Republic of Korea, the Philippines, and Thailand as its “staunch allies” in the region and sees India, Indonesia, Vietnam, and Singapore as “valued partners.”

Speaking about self-ruled Taiwan, Austin said his country “remains deeply committed to preserving the status quo there, consistent with our longstanding one-China policy, and with fulfilling our well-established obligations under the Taiwan Relations Act.”

“Conflict is neither imminent nor inevitable. Deterrence is strong today, and it’s our job to keep it that way,” the secretary stated.

Beijing considers Taiwan a Chinese province and resolutely protests against any involvement by “external forces” in the island’s politics. 

Li Shangfu dinner (1).jpg
China Defense Minister Li Shangfu, left, listens to Australian Prime Minister Anthony Albanese deliver a keynote address during the opening dinner for the 20th Shangri-La Dialogue in Singapore, June 2, 2023. Credit: AP Photo/Vincent Thian

Lt. Gen. Jing Jianfeng, deputy chief of the Central Military Commission’s Joint Staff Department, hit back at Lloyd Austin’s speech about Taiwan, saying it was “completely wrong.”

“There’s only one China in the world, and Taiwan is a sacred and inalienable part of Chinese territory,” Jing said, adding that “it is the common aspiration and sacred responsibility of all Chinese people, including our Taiwan compatriots, to complete the reunification of the motherland.”

China’s counterattack 

A researcher at People’s Liberation Army (PLA) Academy of Military Sciences, Senior Col. Zhao Xiaozhuo, said that it is the U.S. who has been trying to change the status quo in the Taiwan Strait.

“The Taiwan Strait was pretty stable in the last ten years or so but the U.S. wants to destroy this stability,” Zhao told reporters at the Shangri-La Dialogue. 

“That way they can sell weapons to Taiwan and make a lot of money,” he said.

Chinese participants at the security forum in Singapore have taken a proactive approach to counter criticism from the U.S. and its allies.

Senior Col. Zhao said that Washington needs to change what he calls “erroneous actions” in the way it interacts with others.

“When it comes to dialogue you have to take care of the opposite party’s interests,” he said, accusing the U.S. side of not understanding this basic principle.

Another Chinese delegate, Senior Col. Zhang Chi from the National Security College at China’s National Defense University, questioned whether Washington had contradicted itself by establishing multilateral institutions while promoting the centrality of the Southeast Asian bloc ASEAN.

Meanwhile, Maj. Gen. Tang Yongshen, former deputy commandant of the same college, hit back at Canadian Defense Minister Anita Anand for calling China a disruptive force in the region.

“China has made great efforts to maintain peace and stability in the region,” Tang said. 

“In fact, what you said is disruptive,” he added bluntly.

A Chinese Communist Party mouthpiece, the Global Times, quoted a military official as saying in a report on Saturday that “China is confident to step on the stage and raise its voices.”

“Despite knowing the Shangri-La Dialogue is a platform dominated by Western countries to attack China, China comes anyway,” the paper said.

China’s Defense Minister Li Shangfu will deliver a major speech on Beijing’s new security initiatives on Sunday, the last day of the forum.

Edited by Mike Firn. This report has been updated to include news about the announced trip to Beijing by senior U.S. officials.

https://www.rfa.org/english/news/china/us-china-defense-chiefs-06032023035432.html

China's data securities laws pose costly challenge for JPMorgan

CEO of bank's China fund management arm says 'more and more' resources needed



Eddy Wong, CEO of JPMorgan Asset Management's fully owned fund manager in China, is hoping to tap into a 26.53 trillion yuan ($3.73 trillion) mutual fund market in the country.   © Getty Images

ECHO WONG and KENJI KAWASE, Nikkei staff reporters

June 6, 2023 18:41 JST

 

HONG KONG -- JPMorgan Chase's fund management arm in China is devoting "more and more" time and money to complying with data security laws as Beijing tightens regulations, its chief says.

Eddy Wong, CEO of JPMorgan Asset Management's fully owned fund manager in China, said the "industry is very active" in trying to avoid crossing each "red line" created by mid-2021 Chinese laws governing personal information protection and data security.

"You just need more and more resources and people to make sure ... all these data are kept safely at the right locations," he told an industry conference on Monday.

"We just have to communicate with the regulators. For global firms [operating] worldwide, there is stuff that we might need, outside [China], which the current regulation could be prohibiting."

Wong added that "if the shareholder is from another country, the whole thing is even more complicated, because you might have two separate regulations."

Wong, who is hoping to tap into a 26.53 trillion yuan ($3.73 trillion) mutual fund market in China, spoke only days after JPMorgan CEO Jamie Dimon made his first visit to the mainland since the pandemic.

The two data laws passed in 2021 came as China launched a crackdown against tech companies such as ride-hailing group Didi Chuxing. In addition, China is forming a new national data bureau as part of its government restructuring plan, and has limited access to onshore databases such as academic resource China National Knowledge Infrastructure, and Wind, a financial data provider.

Legal experts told the conference that they were worried around the changes.

"We understand there's different requirements [but the] consequences of getting it wrong can be quite catastrophic for business," said Jeremy Lam, partner and head of financial services practice at law firm Deacons.

Data compliance is a growing cost "not only for global asset managers" but also for other entities in the Chinese market, said Sandra Lu, Shanghai-based partner at LLinks Law Offices.

Adding to the complexity, she said, was that the same business in China could be overseen by different regulators with different requirements.

"So I think that this is the challenge ... a lot of global asset managers under different sets of regulations," Lu said.

Ge Yin, Shanghai-based partner at Han Kun Law Offices, said the consolation for asset managers is that the Cybersecurity Administration of China, the top online watchdog, would be paying closer attention to companies in other sectors.

"The asset management industry is not the focus or the target of the data regulators like the CAC," Ge said. It is "more focused is on companies like Didi, Alibaba, TikTok, the platform companies which have substantial data. So as for [the] asset management industry, [they] don't need to be over concerned."

https://asia.nikkei.com/Business/Finance/China-s-data-securities-laws-pose-costly-challenge-for-JPMorgan 



Feds sue crypto giant Binance, CEO Changpeng Zhao for ‘operating web of deception’

June 5, 2023 

Binance CEO Changpeng Zhao

The world’s biggest crypto exchange, Binance was founded in Shanghai in 2017 by CEO Changpeng Zhao, a Canadian citizen.
REUTERS


US regulators sued Binance and its CEO Changpeng Zhao on Monday for allegedly operating a “web of deception,” piling further pressure on the world’s biggest cryptocurrency exchange and sending bitcoin to its lowest in almost three months.

The Securities and Exchange Commission complaint, filed in a federal court in Washington, DC, listed 13 charges against Binance, Zhao and the operator of its purportedly independent US exchange.

The SEC alleged that Binance artificially inflated its trading volumes and diverted customer funds, as well as failed to restrict US customers from its platform and misled investors about its market surveillance controls.

The SEC also claimed that Binance and Zhao, its billionaire founder and one of the crypto industry’s highest-profile moguls, secretly controlled customers’ assets, allowing them to commingle and divert investor funds “as they please.”

Binance created separate US entities “as part of an elaborate scheme to evade US federal securities laws,” the SEC also alleged, citing a number of practices first reported by Reuters in a series of investigations into the exchange published this year and in

From almost three years ago until June 2022, a trading firm owned and controlled by Zhao, Sigma Chain, engaged in so-called wash trading that artificially inflated the trading volume of crypto asset securities on the Binance.US platform, the SEC also alleged.

“We allege that Zhao and Binance entities engaged in an extensive web of deception, conflicts of interest, lack of disclosure, and calculated evasion of the law,” said SEC Chair Gary Gensler said in a statement.

In a blog post, Binance said: “We intend to defend our platform vigorously,” adding that “because Binance is not a US exchange, the SEC’s actions are limited in reach.”

“Any allegations that user assets on the Binance.US platform have ever been at risk are simply wrong,” the blog post said.

Binance.US, which is ultimately controlled by Zhao, said in a tweet that the lawsuit was “unjustified by the facts, by the law, or by the Commission’s own precedent.”

Bitcoin, the world’s biggest cryptocurrency, fell as much as 6% on the news to its lowest in almost three months. Binance’s own cryptocurrency BNB, the world’s fourth-largest by market size, dropped more than 5%.

Legal woes

The SEC complaint is the latest in a series of legal woes for Binance, which was also sued by the Commodity Futures Trading Commission in March for operating what the regulator alleged were an “illegal” exchange and a “sham” compliance program. Zhao called those an “incomplete recitation of facts.”

Binance is also under investigation by the Justice Department for suspected money laundering and sanctions violations, according to people familiar with the probe.

Securities and Exchange Commission  sign
The Securities and Exchange Commission alleged that Binance created separate US entities “as part of an elaborate scheme to evade US federal securities laws.”
REUTERS

Market players said the SEC’s allegations could hobble Binance, with the lawsuit likely to reverberate through the crypto industry. Binance dominates crypto trading, last year processing trades worth about $65 billion a day with up to 70% of the market.

“I think that there’s a big risk here that this could be crippling to Binance,” said Ed Moya, senior market analyst at Oanda.

The holding company of Binance, founded in Shanghai in 2017 by CEO Zhao, a Canadian citizen born and raised until the age of 12 in China, is based in the Cayman Islands. The exchange, however, says it does not have a headquarters and has declined to state the location of its main Binance.com exchange.

The SEC said that billions of dollars in Binance customer funds were commingled in a bank account of an entity controlled by Zhao, and then transferred to a third party firm, Merit Peak, also controlled by Zhao.

Reuters reported last month that Binance commingled its customers’ funds with its corporate revenues in a US bank account belonging to Merit Peak, in breach of US financial rules that require client money to be kept separate.

In response to the article, Binance denied mixing customer deposits and company funds, saying that users who sent money to the account were not making deposits but rather buying Binance’s bespoke dollar-linked crypto token.

Reuters also reported on Monday that a senior Binance executive was the main operator for five bank accounts belonging to the giant cryptocurrency exchange’s US affiliate, including an account that held American customers’ funds.

The SEC said that the executive had at least until December 2020, also had “signatory authority over BAM Trading’s U.S. Dollar accounts.”

https://nypost.com/2023/06/05/binance-changpeng-zhao-sued-for-alleged-securities-law-violations/

US sues Binance and founder Zhao over 'web of deception'

https://www.reuters.com/legal/us-sec-sues-binance-founder-zhao-alleging-securities-law-violations-2023-06-05/

Friday, June 2, 2023

Chinese 'debt-trap' crippling poor economies, endangering US national security

Terms of Chinese loans are secretive but thought to feature unfavorable terms

 


By Michael Lee | Fox News

Published 

Chinese loans with secretive and unforgiving terms are threatening to cripple multiple developing countries whose concessions to China could begin to have implications for U.S. national security.

"The Chinese Communist Party's strategy to expand its influence across the Pacific has been to coerce and cut deals," Joel Rubin, who has served in administrations from both parties, most recently as deputy assistant secretary of state for the Obama administration, told Fox News Digital. He added that the Chinese target "countries that have strategic importance for the navy, in particular for basing."

Rubin's comments come as concerns grow over the impact of Chinese loans to developing countries, particularly in locations where China has leveraged its position to take control of ports and natural resources to benefit the country's growing ambitions.

According to a report from Fortune this month, a dozen countries are staring down the barrel of economic instability or collapse under the weight of loans they received from China, including Pakistan, Kenya, Zambia, Laos and Mongolia.

BIDEN FOREIGN POLICY STRATEGY OPENS DOOR TO CHINA, OTHER ADVERSARIES, EXPERTS SAY

Chinese soldiers with Chinese flag in background

Chinese loans with secretive and unforgiving terms are threatening to cripple multiple developing countries whose concessions to China could begin to have implications for U.S. national security. (Chinese PLA)

Those countries have found that repaying the debt has taken up a larger percentage of their tax revenues, forcing the countries to make tough choices with services such as schooling, electricity and vital social services. Worse yet, countries indebted to China are often unable to seek relief from other lenders as the result of secretive terms on their loans with China.

The result has been what many analysts have referred to as the Chinese "debt trap," with some theorizing that the terms of the loans are nearly impossible to repay by design, thus forcing countries to cede interests of strategic importance to Chinese control after they inevitably fail to pay their debts.

Perhaps the most famous example of the Chinese debt trap is the Hambantota International Port in Sri Lanka. Opened in 2010, a 70% stake of control of the port was eventually sold to Chinese company China Merchants Port to pay off sovereign debt unrelated to the construction or operations of the port. As part of the deal, a 99-year lease was signed that gave control of the port to China despite the objections of those who felt the deal eroded Sri Lanka's sovereignty.

Hambantota International Port

A ship is docked at Hambantota International Port in Sri Lanka. (Liu Hongru/Xinhua via Getty) (Xinhua/Liu Hongru via Getty Images)

The deal came just a few years before Sri Lanka defaulted on its debt, with Fortune estimating that 50% of those foreign loans were from China and that a third of the government's revenue was going toward paying off foreign debt.

The default has sparked an economic crisis in Sri Lanka by costing the country roughly 500,000 jobs, contributing to soaring inflation and sending much of the country's population into poverty. Meanwhile, China has gained control of a strategically important port in the Indian Ocean that helps connect a lucrative trade route.

BIDEN DROVE 'HISTORICALLY' CLOSE MIDDLE EAST ALLIES INTO ARMS OF AMERICA'S GREATEST ENEMIES, EXPERTS SAY

According to a report from the Financial Times shortly after the deal, China's taking over of the port was yet another step in its "One Belt One Road" project, which seeks to challenge the U.S. position as the predominant maritime superpower and establish a "new Silk Road" of trade routes that link the country to Asia, the Middle East, Africa and Europe.

While calls for the U.S. to step in and essentially bail out countries from under Chinese loans have grown in recent years, Rubin argues such a strategy would do little to enhance U.S. interests.

People wave Chinese flags in Sri Lanka

People welcome China's space-tracking ship Yuanwang-5 at Hambantota International Port in Sri Lanka. (Ajith Perera/Xinhua via Getty Images)

"One of the lessons learned from the Cold War era is that countries love to play off the big dogs against each other," Rubin said.

Rubin noted that not only would it be impractical for the U.S. to "chase every country" while waving "Uncle Sam's dollars," such a strategy would not change the long-term outlook of the situation. Instead, Rubin argued that it is vital for the U.S. to develop partnerships with developing countries that make them less likely to turn to China for help.

"The idea is to have them say no. I think this is one of the interesting questions about national security: How do we advance our national security?" Rubin said. "Is it just putting money into defense? No."

IRAN GAINS FOOTHOLD IN SOUTH AMERICA AS BIDEN ADMIN PURSUES NUCLEAR DEAL

Rubin pointed toward promoting economic ties as a way to enhance U.S. security, including U.S. development aid that helps to grow the economies of developing countries while developing relationships that also benefit the United States.

Another example of an attempt to strengthen economic relationships was through the Trans-Pacific Partnership, or TPP, a proposed trade agreement between the U.S. and Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam.

Drafted in 2015, the deal faced heavy pushback from factions of both parties, leading to its eventual demise.

"That trade agreement was one major strategic step to try to create an architecture across the Pacific Rim countries of connectivity through economic and trade actions," Rubin said. "That kind of reduces the incentive of countries to cut deals with China because there may be penalties because there are positive alternatives."

Although Rubin noted a similar trade deal is unlikely to materialize again anytime soon, he argued that any U.S.-led effort to push regional agreements that "web together" countries makes them less likely to turn to China and more likely to depend on each other.

Chinese Navy

A Chinese navy fleet departs for Russia. (LiLi Yun/Xinhua via Getty Images)

"Also, frankly, increasing our development assistance and our support," Rubin said. "We have multiple great agencies, they're called export credit agencies – EXIM Bank, the Development Finance Corporation, Trade Development Agency as well as USAID – beefing those up to give us more tools to get our companies out to these countries, to get our investors, to get our private sector through the Commerce Department out and engage within trade and investment agreements to that business is open with the United States."

Rubin made clear that investing in defense is also important to deterring China and reassuring allies in Asia that the U.S. is committed to their security, but defense is only one pillar that will contribute to the long-term goal of curtailing Chinese ambitions.

"China is playing the long game. China has been thinking about this for decades, and they're thinking about this for decades out," Rubin said, adding that the American strategy should be to respond with more than defense spending in mind.

"It's not a trade-off, like one or the other. You should and could and need to do both," Rubin said. "The last thing you ever want is an actual war, right? So, we have to build confidence."

Michael Lee is a writer at Fox News. Follow him on Twitter @UAMichaelLee

https://www.foxnews.com/world/chinese-debt-trap-crippling-poor-economies-endangering-us-national-security