Month: August 2024

US Pacific territories near status upgrade at islands summit

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WASHINGTON — Two U.S. Pacific territories are moving closer to a status upgrade from observer to associate member, elevating their status within the region’s political and economic policy organization, the Pacific Islands Forum.

The PIF leaders’ meeting is set to open Monday in Tonga’s capital, Nuku’alofa.

Tongan Prime Minister Siaosi Sovaleni has confirmed there will be a vote on new associate members. “Guam and American Samoa have applied,” he told ABC Pacific recently. “We’ll be actually tabling a paper for the leaders to consider.”

Foreign ministers from the Pacific bloc reviewed the applications for associate member status from the two U.S. territories during their meeting on August 9. Cook Islands Prime Minister Mark Brown noted that there is “widespread support” for the applications.

On Tuesday, forum leaders will engage in talks with United Nations Secretary-General Antonio Guterres, associate members and forum observers. A senior State Department official will represent the United States.

The Pacific Islands Forum has 18 member states, with Australia and New Zealand being the largest economies in the bloc. Neither the United States nor China is a full member, but both countries are dialogue partners.

U.S. greenlights

Until recently, U.S. Pacific territories Guam, American Samoa and the Northern Mariana Islands held observer status for the forum.

In June, however, the U.S. government eased restrictions, allowing these territories to join the PIF as nonvoting associate members, provided they do not take foreign policy positions. This change modified a longstanding policy that had previously barred their participation in international organizations.

Although the French territories of French Polynesia and New Caledonia have become full PIF members, analysts currently do not anticipate that U.S. Pacific territories will be approved for full membership soon.

“It would be a bit like Nebraska voting at the United Nations,” Cleo Paskal, a senior fellow at the Washington-based Foundation for Defense of Democracies, told VOA.

“The degree to which constituent parts of the U.S., such as Guam and American Samoa, can participate as full members in multilateral organizations is complex,” she said. “On one hand, the people of those islands understandably want to be represented in a forum that claims to speak for the region. On the other, they can’t legally sign up to foreign policy positions for the U.S.”

U.S.-PIF summit

A State Department spokesperson told VOA that the United States has made broader and deeper engagement with the Pacific Islands a key priority of its foreign policy.

The spokesperson cited the U.S.-hosted summit meetings with Pacific Island leaders in Washington in September 2022 and 2023.

But neither the White House nor the State Department would confirm whether a third U.S.-Pacific Island Forum summit will take place this year.

In recent years, U.S. policymakers have recognized that U.S. presence and influence in the Pacific cannot be taken for granted, especially in the face of increased Chinese interest and engagement in the region, according to Kathryn Paik, a senior fellow at the Center for Strategic and International Studies.

Paik recently wrote in a CSIS publication that Washington’s realization has led to a series of high-level visits, the opening of several new embassies, the return of the Peace Corps to the region, and numerous financial initiatives across the fisheries, health, law enforcement and economic sectors.
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British military: Greek oil tanker drifting and ablaze after repeated attacks in Red Sea

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DUBAI, United Arab Emirates — A Greek-flagged oil tanker traveling through the Red Sea came under repeated attack Wednesday, leaving the vessel “not under command” and drifting ablaze after an assault suspected to have been carried out by Yemen’s Houthi rebels, the British military said.

The attack, the most serious in the Red Sea in weeks, comes during a monthslong campaign by Houthis targeting ships over the ongoing Israel-Hamas war in the Gaza Strip that has disrupted a trade route through which $1 trillion in cargo typically passes each year.

In the attack, men on small boats first opened fire with small arms about 140 kilometers (90 miles) west of the rebel-held Yemeni port city of Hodeida, the British military’s United Kingdom Maritime Trade Operations center said.

Four projectiles also hit the ship, it added. It wasn’t immediately clear if that meant drones or missiles.

“The vessel reports being not under command,” the UKMTO said, likely meaning it lost all power. “No casualties reported.”

Later, the UKMTO warned the ship was drifting while on fire in the Red Sea.

The Greek shipping ministry later identified the vessel as the tanker Sounion, which had 25 crew members on board at the time of the attack as it traveled from Iraq to Cyprus.

The Houthis did not immediately claim responsibility for the attack, though it can take them hours or even days before they acknowledge their assaults.

The Houthis have targeted more than 80 vessels with missiles and drones since the war in Gaza started in October. They seized one vessel and sank two in the campaign that also killed four sailors.

Other missiles and drones have either been intercepted by a U.S.-led coalition in the Red Sea or failed to reach their targets.

The rebels maintain that they target ships linked to Israel, the United States or the U.K. to force an end to Israel’s war against Hamas in Gaza. However, many of the ships attacked have little or no connection to the conflict, including some bound for Iran.

The Houthis have also launched drones and missiles toward Israel, including an attack on July 19 that killed one person and wounded 10 others in Tel Aviv. Israel responded the next day with airstrikes on Hodeida that hit fuel depots and electrical stations, killing and wounding a number of people, the rebels say.

After the strikes, the Houthis paused their attacks until Aug. 3, when they hit a Liberian-flagged container ship traveling through the Gulf of Aden. A Liberian-flagged oil tanker came under a particularly intense series of attacks beginning Aug. 8, likely carried out by the rebels. A similar attack happened Aug. 13 as well.

The last three recent attacks, including Wednesday’s, targeted vessels associated with Delta Tankers, a Greek company.

As Iran threatens to retaliate against Israel over the assassination of Hamas leader Ismail Haniyeh in Tehran, the U.S. military told the USS Abraham Lincoln aircraft carrier strike group to sail more quickly to the area. America also has ordered the USS Georgia guided missile submarine into the Mideast, while the USS Theodore Roosevelt aircraft carrier strike group was in the Gulf of Oman.

Additional F-22 fighter jets have flown into the region and the USS Wasp, a large amphibious assault ship carrying F-35 fighter jets, is in the Mediterranean Sea.
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Fannie Lou Hamer rattled Democratic convention 60 years ago with ‘Is this America?’ speech

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China questions, begins probe of European Union subsidies for dairy industry exports 

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China ‘concerned’ after report alleging US nuclear strategy change 

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Seoul, South Korea — China on Wednesday said it was “seriously concerned” after a report alleged the United States recently approved a secret plan to shift some of the focus of its nuclear strategy away from Russia to deal with Beijing’s nuclear weapons buildup.

In a report late Tuesday, The New York Times reported that U.S. President Joe Biden in March approved a new “nuclear employment guidance,” a highly classified document outlining how the U.S. would use nuclear weapons in a potential conflict.

The report said the document, updated every four years, reorients U.S. nuclear deterrent strategy to deal with China’s massive expansion of its nuclear arsenal. The document also orders U.S. forces to prepare for the possibility of “coordinated nuclear challenges” from China, Russia, and North Korea, according to the report.

Asked about the report during a press briefing Wednesday, a Chinese foreign ministry spokesperson accused the United States of “peddling the China nuclear threat narrative” and “finding excuses to seek strategic advantage.”

“China is seriously concerned about the relevant report, and the facts have fully proven that the United States has constantly stirred up the so-called China nuclear threat theory in recent years,” said Chinese foreign ministry spokesperson Mao Ning.

Russia has not responded to the report.

For decades, U.S. nuclear policy has been primarily focused on Russia, the only other country with comparable nuclear weapons capabilities.

However, U.S. officials have increasingly warned that China’s nuclear buildup under President Xi Jinping is proceeding faster than previously expected.

In an unclassified document released late last year, the Pentagon estimated that the Chinese military had more than 500 operational warheads in its arsenal and will have more than 1,000 warheads by 2030.

That compares to the United States, which possesses a nuclear stockpile of about 3,700 active warheads, according to estimates compiled by the U.S.-based Arms Control Association.

Russia has roughly 4,380 nuclear warheads, including about 1,550 on strategic delivery systems, according to estimates cited by the group.

Given those numbers, Russia remains the “major driver” behind U.S. nuclear strategy, said Daryl G. Kimball, the director of the Arms Control Association, in a post on social media site X.

The Times report overstates the changes outlined in the U.S. nuclear weapons guidance document, according to Kimball, who insisted there has been no reorientation away from Russia toward China.

“Despite China’s nuclear expansion, Russia’s arsenal significantly exceeds that of China’s – even after Xi’s ambitious plan is complete. Until that changes, focus will remain on Russia’s arsenal,” said Hans Kristensen, director of the Nuclear Information Project at the Federation of American Scientists.

“But planning against China is increasing, as reflected in the document,” Kristensen added in a post on X.

U.S. officials have publicly referred to the nuclear weapons document at least twice, without offering much detail on its contents.

In June, Pranay Vaddi, the White House National Security Council’s senior director for arms control and nonproliferation, said the new guidance “emphasizes the need to account for the growth and diversity” of China’s nuclear arsenal, as well the need to deter Russia, China, and North Korea simultaneously.

According to Vaddi, the U.S. will continue to pursue nuclear arms restraints with Russia and China, but “without a change in the trajectory that Russia, [China], and North Korea are on,” the U.S. “will need to continue to adjust our posture and capabilities to ensure our ability to deter and meet other objectives going forward.”

Vipin Narang, an MIT nuclear security specialist who until recently focused on nuclear policy in the Pentagon, said earlier this month that Biden “recently issued updated nuclear weapons employment guidance to account for multiple nuclear-armed adversaries, and, in particular, the significant increase in the size and diversity of [China’s] nuclear arsenal.”

“It is our responsibility to see the world as it is, not as we hoped or wished it would be,” said Narang. “It is possible that we will one day look back and see the quarter century after the Cold War as ‘nuclear intermission’.”

U.S. and Chinese officials both frequently speak of the dangers of nuclear war, but efforts to hold dialogue on the issue have failed.

Last year, U.S. and Chinese officials agreed to negotiations on nuclear non-proliferation and arms control, ahead of a meeting between Biden and Xi. But China suspended the talks last month, citing U.S. arms sales to the self-ruled island of Taiwan, which Beijing claims as its own.

Many analysts are also concerned about growing military and diplomatic cooperation between Russia and China. In 2022, Xi and Russian President Vladimir Putin agreed on a “no-limits” partnership and have recently expanded joint military exercises and other cooperation.

Earlier this year, Russia also restored a Cold War-era mutual defense treaty with nuclear-armed North Korea and hinted at further defense cooperation.

Since invading Ukraine in 2022, Putin has repeatedly issued thinly veiled threats about using nuclear weapons against Western-backed forces there.
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Modi calls for peace and stability as he heads to Ukraine 

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New Delhi — Ahead of a visit to Ukraine, Indian Prime Minister Narendra Modi called for an early return to peace and stability and said he will “share perspectives” on a peaceful resolution of the conflict between Russia and Ukraine.

Modi will travel to Kyiv on Friday after visiting Poland. He will hold talks with Ukraine’s President, Volodymyr Zelenskyy weeks after a visit by the Indian prime minister to its longstanding partner Moscow drew sharp criticism from the Ukrainian leader.

Modi met with Russian President Vladimir Putin in July on a day when Russian missiles struck multiple targets including a children’s hospital in Kyiv killing many civilians.

The Indian leader had called the death of children heart-wrenching, but images of Modi hugging Putin were embarrassing, according to analysts.

“The optics of the Russia visit were not good. So, the effort by going to Ukraine is to show that India is not just taking a passive position on the conflict but wants to actively help in a settlement,” said Manoj Joshi, distinguished fellow at the Observer Research Foundation in New Delhi.

Zelenskyy had said that it was a “huge disappointment and a devastating blow to peace efforts” to see Modi hug “the world’s most bloody criminal in Moscow on such a day.”

Modi will be the first Indian prime minister to visit Ukraine since the two countries established diplomatic ties.

“As a friend and partner, we hope for an early return of peace and stability in the region,” Modi said in a statement on Wednesday before leaving New Delhi. He said his trip will be a “natural continuation of extensive contacts” between India and Ukraine.

Modi met Zelenskyy on the sidelines of the Group of Seven summit held in Italy in June. In March this year, Ukraine’s foreign minister visited the Indian capital in a bid to give momentum to their political and economic ties.

India has not joined its Western allies in directly holding the Kremlin responsible for the war, but it has been urging the two nations to resolve their conflict through dialogue and diplomacy.

The Indian foreign ministry said on Monday that India has “substantive and independent ties” with both Russia and Ukraine and was ready to support the negotiation of a peace settlement.

“India has high credibility with Russia,’’ analyst Joshi told VOA. ‘’So the hope is that it can play some kind of a mediatory role and can raise issues with Moscow directly.’’

The visit is also seen as an effort by India to balance its growing ties with Western countries with its refusal to join them in isolating its decades-long partner Russia.

Following the Modi-Putin summit, the United States State Department said it had raised concerns with India about its relationship with Russia and hoped it would use its ties with Moscow to firmly encourage the Kremlin to adhere to the United Nations charter.

Since the conflict began more than two years ago, India has abstained from all U.N. votes against Russia and become one of the biggest buyers of Russian oil as it continues to trade with Moscow.

Analysts say New Delhi’s big challenge is to convince the West and Kyiv that its friendship with Russia is not an endorsement of Putin’s Ukraine policy.

“India is walking the tightrope,’’ Joshi said. ‘’As the war continues and even becomes more intense, it brings more pressure on New Delhi and the Indian position stands out starkly, especially as the Western position on Russia hardens.”

Modi’s visit to Poland, the first by an Indian Prime Minister to the country in 40 years, is expected to focus on strengthening economic and political cooperation. He will meet both Polish Prime Minister Donald Tusk and President Andrzej Duda, according to the foreign ministry.

Analysts say Modi’s visit to the two countries – Poland and Ukraine – is also part of India’s efforts to increase its engagement with countries in central and eastern Europe as it tries to raise its global profile.
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Andrew Tate’s Romania home searched as part of new probe

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Bucharest, Romania — Romanian authorities on Wednesday searched the home of controversial influencer Andrew Tate, who is awaiting trial over human trafficking and rape charges, as part of a new investigation, officials said.

One of the world’s best-known influencers known for misogynist and sometimes violent maxims, Andrew Tate has been accused of having formed an organized criminal network in early 2021 in Romania and Britain, along with his brother Tristan. They have denied the charges.

Prosecutors allege that 37-year-old Tate, his 36-year-old brother and two women set up a criminal organization and sexually exploited several victims. A trial date has not yet been set.

On Wednesday prosecutors “conducted a raid this morning, on August 21, 2024, at the residence of the Tate brothers as part of a search related to a new investigation,” prosecutors said in a statement.

The office for organized crime said that four search warrants were executed, in connection with “the crimes of forming an organized criminal group, trafficking in minors,” “sexual relations with a minor” and “money laundering.”

Neither of the statements indicated whether the new charges targeted the brothers.

They were detained in 2022 in Bucharest and spent three months in detention before being released under judicial supervision to await trial.

The brothers also face rape and assault allegations in separate cases in Britain, where they have also been accused of tax evasion.

In 2016, Tate appeared on the “Big Brother” reality television show in Britain but was removed after a video emerged showing him attacking a woman.

He then turned to social media platforms to promote his divisive views.

Giving tips on how to be successful, along with misogynistic and sometimes violent maxims, his videos have made him one of the world’s best-known influencers.
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Investigation sought after influential Thai general hits journalist

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BANGKOK — A senator in Thailand on Tuesday formally requested a parliamentary investigation into a veteran politician and former army chief who struck a television reporter on the head after she asked him a question.

Prawit Wongsuwon, 79, a lawmaker and former deputy premier who was involved in the last two coups in Thailand, hit the female reporter on Friday while surrounded by journalists, video footage of which was widely circulated.

A notorious political dealmaker and a central figure in Thailand’s two decades of political strife, Prawit, who leads the Palang Pracharat Party, served in the last junta and was deputy prime minister for nine years after a 2014 coup.

“This behavior is physical harassment,” said Senator Tewarit Maneechai, who told Reuters he had requested an ethics probe be conducted into Prawit.

“It is also disrespectful to a journalist who was doing her work,” he added.

Palang Pracharat Party spokesman Piya Tavichai said Prawit knew the reporter well and has apologized, adding he could clarify the facts in any parliamentary process.

“He was teasing her as someone who he is close to,” Piya said.

“Because he was a soldier, the teasing could appear to be violent but those close to him know that he teases like this all the time.”

Prawit and the reporter, who works for broadcaster Thai PBS, could not be reached for comment.

The incident sparked widespread condemnation from Thailand’s media community. Thai PBS asked Prawit to take responsibility for his actions.

Senator Tewarit said he requested an investigation into Prawit through the Senate to be conveyed to the lower house of parliament, which will have 30 days to respond. He said he was unsure what penalty Prawit would face if found guilty.

The ethics code for Thai parliamentarians states members should respect the rights and liberty of others and refrain from threats, showing malice or use of force to harm others.

The incident happened on Friday moments after the Pheu Thai Party’s Paetongtarn Shinawatra won a vote in parliament to become prime minister, Thailand’s third premier from the billionaire Shinawatra family, with which Prawit has a bitter history.

Prawit, who did not attend the vote, was asked his thoughts on Paetongtarn’s victory, to which he replied “What are you asking? What are you asking?” before striking the reporter, television footage showed.
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Former president Obama rallies Democrats for Harris in Chicago

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Former President Barack Obama addressed Democrats in his home city of Chicago Tuesday, saying Vice President Kamala Harris is the right choice to take on Donald Trump in the U.S. presidential election this November. VOA’s congressional correspondent Katherine Gypson has more from the second night of the Democratic National Convention.
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A ‘huge number of people’ did not burn alive in the Donetsk shopping mall

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The Kremlin-appointed governor of Russian-controlled Donetsk in Ukraine said 11 people suffered moderate or minor injuries during the Galaktika mall fire.
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DNC’s Day 2: Double dose of Obama firepower, a doting spouse and a dance party

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CHICAGO — The Democratic National Convention’s second night showcased a double dose of Obama firepower to validate Vice President Kamala Harris and deliver an unsparing indictment of Republican Donald Trump. The convention also served up a raucous roll call of states that was essentially one big dance party.

Harris and her running mate, Minnesota Gov. Tim Walz, ducked out of Chicago to hold a rally just up the interstate in Milwaukee, wooing voters in battleground Wisconsin. It was a recognition that, regardless of whatever good vibes may exist at the convention, Democrats expect this presidential election to be razor-close.

Here are some takeaways from the convention’s second night.

The ex-presidents club

If the Republican convention was all about Trump, the Democrats on Tuesday wanted to put Harris in a pantheon with past presidents.

The biggest validators of the night were former President Barack Obama and his wife, Michelle. The latter linked Harris with her husband by telling the rapt crowd, “America, hope is making a comeback.”

Barack Obama, for his part, reached back to his own 2004 convention speech to tie Harris to his legacy. “I am feeling hopeful — because this convention has always been pretty good to kids with funny names who believe in a country where everything is possible,” he said.

It wasn’t just the Obamas making the case for the vice president. The grandsons of Jimmy Carter and John F. Kennedy also portrayed her as the natural heir of past Democratic leaders.

As groundbreaking as Harris’ candidacy is as the first woman of color to be her party’s nominee, these speeches by an ex-president and presidential progeny were all about linking her to a broader historical arc and evoking the excitement of Obama’s 2008 run that Harris hopes to replicate.

Diverting from the high road

The Obamas did not hold back in lacing into Trump. Michelle Obama’s well-worn adage from years past that “when they go low, we go high” no longer seemed operative.

Barack Obama called Trump “a 78-year-old billionaire who hasn’t stopped whining about his problems since he rode down his golden escalator nine years ago.”

Michelle Obama also took a personal swipe, saying: “For years, Donald Trump did everything in his power to try to make people fear us. His limited and narrow view of the world made him feel threatened by the existence of two hardworking, highly educated, successful people who also happened to be Black.”

Playing off her famous line about Republicans going low, Michelle Obama suggested that Trump was going “small” and that “it’s unhealthy, and quite frankly, it’s unpresidential.”

DNC dance party

Political conventions technically happen so that delegates can nominate presidential and vice presidential candidates.

This year, the Democrats took care of that job in advance. But that didn’t stop them from holding a ceremonial do-over and turning it into a raucous dance party.

DJ Cassidy strode on stage in a bright blue double-breasted suit and spun tunes for every state as they nominated Harris and Walz. Minnesota got “1999” by native son Prince, Kansas got “Carry on Wayward Son” by, well, Kansas. “Born in the U.S.A.” by Bruce Springsteen played as New Jersey weighed in.

Usually it was governors or state party chairs calling out the votes, but some states passed the mic to make serious points. Kate Cox, who unsuccessfully sued her home state of Texas while seeking an abortion for a non-viable fetus, announced Texas’ votes. A survivor of the 2017 Las Vegas strip gun massacre announced Nevada’s votes.

The roll call highlight was when Atlanta rapper Lil Jon strode through the United Center to the beats of “Turn Down for What,” his song with DJ Snake, and rapped his support for Harris and Walz.

Democrats are eager to highlight how Harris’ ascension has energized the party. The roll call fit that vibe.

America’s blind date with Doug Emhoff

Doug Emhoff wants America to love his wife as much as he does.

His convention speech Tuesday night focused on their love story and offered a personal glimpse meant to pull in voters, too. He dished on the deets of their first phone call, after he left her a rambling voicemail that she still makes him listen to every year on their anniversary.

“I love that laugh,” he said adoringly, a rebuttal to Trump’s criticism of Harris’ laughter.

As Harris flew back to Chicago from Milwaukee after her rally there, Air Force Two spent an extra 10 minutes in the air so she could watch her husband speak, according to an aide.

Emhoff said he “just fell in love fast” with Harris, adding that she finds “joy in pursuing justice” and “stands up to bullies.” It’s not how most husbands describe their partners, but, then, Emhoff is trying to convince voters that the woman he’s been married to for 10 years this Thursday knows how to take on Trump.

A message for Republicans: It’s OK to quit Trump

The Democrats are making a play for disaffected Trump voters — and they used one of his former White House staffers to make their case.

Stephanie Grisham worked in various roles in the Trump White House, including communications director and press secretary, allowing Democrats to argue that those who know Trump best have seen him at his worst.

“He has no empathy, no morals, and no fidelity to the truth,” Grisham said. “I couldn’t be part of the insanity any longer.”

Kyle Sweetser, a Trump voter from Alabama, told the convention the former president’s tariffs made life harder for construction workers like him. Republican Mayor John Giles of Mesa, Arizona, also spoke about why he’s backing Harris. Giles sees Trump’s policies as hurting cities like his.
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Indonesia searches for ways to balance domestic industries with surging Chinese imports

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JAKARTA, Indonesia — A flood of Chinese products into Indonesia has hit local manufacturers hard, prompting the government to look for ways to placate domestic producers while avoiding angering the country’s biggest trading partner.

Garment makers — both home-based piecework producers and factories — have appealed for help as they lose market share to low-cost apparel and textiles from China. A surge of products bought online has added to the problem.

A protest by workers in Jakarta prompted Indonesian Minister of Trade Zulkifli Hasan to announce in July that the government will impose import tariffs of up to 200% on some products from China, particularly textiles, clothing, footwear, electronics, ceramics and cosmetics, to try to protect local businesses and prevent layoffs.

“The United States can impose a 200% tariff on imported ceramics or clothes, so we can do it as well,” Zulkifli said, to ensure micro, small, and medium-sized enterprises and industries “survive and thrive.”

But China is Indonesia’s largest trading partner, with two-way trade exceeding $127 billion in 2023. Imposing higher tariffs could prompt Chinese manufacturers to invest in more in factories in Indonesia, but could also backfire, leading Beijing to retaliate. As a result, the government announced in July that it was setting up a task force to monitor and handle problems related to certain imports.

It’s an urgent matter, Hasan said, given the flood of imported products that has caused closures of textile factories and mass layoffs. From January to July 2024, at least 12 textile factories shut down operations, causing more than 12,000 workers to lose their jobs, according to the Nusantara Trade Union Confederation.

In Bandung district in Indonesia’s West Java province — an area famous for textiles such as batiks, handwoven fabrics and silks — imports of Chinese products have left thousands of workers idle and without regular incomes, said Neng Wati, a manager at manufacturing company Asnur Konveksi.

“Now they take turns. The number of workers stays the same, but the work is divided up and not all get some. Some of them have been off for two weeks, some of them haven’t gotten work for a month,” Wati said.

That’s a hard blow coming after the slow days of the COVID-19 pandemic, when many workers were shifted to e-commerce to make ends meet, said Nandi Herdiaman, head of a local organization of small- and medium-sized entrepreneurs. Only 60% of the 8,000 members of the association kept working after the pandemic.

Now, the biggest challenge is cheap imports from China. In the past two months, output from home-based industries has fallen by 70%, the industry organization says.

The uptick in imports of Chinese products is partly seen as the result of trade friction between the U.S. and China, which has led to increased American tariffs on Chinese goods. But it also reflects rising trade within Asia as the region implements various free trade pacts, as well as weakening demand in Western markets for Chinese exports.

Industry groups in Thailand have also expressed increasing concern about an influx of cheap products from China, which they say have greatly hurt sales by domestic producers who are unable to compete.

In what it called an urgent measure, the Thai government imposed a 7% value-added tax on all imported products, a change from the previous rule that only collected taxes on imported products that cost more than 1,500 baht ($44). The policy is only in effect from July until December this year to give the government time to study the issue before a longer-term solution can be applied.

In December, Indonesia issued a regulation to tighten monitoring of more than 3,000 imported goods, including food ingredients, electronics and chemicals. But the regulation was reversed after domestic industry said it hindered the flow of imported materials needed for local production, and the government began considering steep tariff hikes instead.

While smaller manufacturers have suffered the greatest setbacks, big factories are also hurting.

Jany Suhertan, managing director of PT Eksonindo Multi Product Industry, which makes clothing and accessories like backpacks and handbags in West Java, wants the government to raise import duties on finished goods from China but not on raw materials needed to make products in Indonesia.

Nearly half of the materials his company uses are from China.

“I don’t agree with imposing (higher tariffs) on raw products, since the government should protect the supply chain. If it is not secure, it will impact production,” Suhertan said.
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Obamas close DNC’s second night with rousing Harris endorsement

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CHICAGO — Warning of a difficult fight ahead, former President Barack Obama and Michelle Obama on Tuesday called on the nation to embrace Kamala Harris in urgent messages to the Democratic National Convention that were at times both hopeful and foreboding.

“America, hope is making a comeback,” the former first lady declared. She then tore into Republican Donald Trump, a sharp shift from the 2016 convention speech in which she told her party, “When they go low, we go high.”

“His limited and narrow view of the world made him feel threatened by the existence of two hardworking, highly educated, successful people who also happened to be Black,” Obama said of Trump.

Her husband, the nation’s first Black president pushing for America to elect its second, called Trump “a 78-year-old billionaire who hasn’t stopped whining about his problems since he rode down his golden escalator nine years ago.”

“It’s been a constant stream of gripes and grievances that’s actually gotten worse now that he’s afraid of losing to Kamala,” he charged.

The fiery messages from two of the Democratic Party’s biggest stars underscored the urgency of the moment as Harris works to stitch together a broad coalition in her bid to defeat Trump this fall. She is drawing on stars like the Obamas and other celebrities, officials from the far left to the middle, and even some Republicans to boost her campaign.

And while the theme of the night was “a bold vision for America’s future,” the disparate factions of Harris’ evolving coalition demonstrated, above all, that they are connected by a deep desire to prevent a second Trump presidency.

Just ahead of the Obamas’ remarks, Harris addressed an estimated 15,000 people in battleground Wisconsin in the arena where Republicans held their convention last month. She declared that she was running “a people-powered campaign.”

“Together we will chart a new way forward,” the vice president said in remarks that were partially broadcast to the DNC. “A future for freedom, opportunity, of optimism and faith.”

Back in Chicago, Senators Chuck Schumer, the Senate Democratic leader, and Bernie Sanders, the Vermont independent beloved by progressives, both praised Harris. And in an appearance perhaps intended to needle Trump, his former press secretary Stephanie Grisham — now a harsh critic of her former boss — also took the convention stage.

Trump “has no empathy, no morals and no fidelity to the truth,” Grisham said. “I love my country more than my party. Kamala Harris tells the truth. She respects the American people. And she has my vote.”

Still, it was not all serious on the second night of the four-day convention.

A symbolic roll call in which delegates from each state pledged their support for the Democratic nominee turned into a party atmosphere. A DJ played a mix of state-specific songs — and Atlanta native Lil Jon ran out during Georgia’s turn to his hit song with DJ Snake, “Turn Down for What,” to the delight of the thousands inside the cavernous United Center.

Second gentleman Doug Emhoff, who will become the nation’s first gentleman if his wife wins the presidency, shared personal details about his relationship with Harris — their cooking habits, their first date and her laugh, which is often mocked by Republican critics.

“You know that laugh. I love that laugh!” Emhoff said as the crowd cheered. Later, he added, “Her empathy is her strength.”

Trump, meanwhile, was out on the campaign trail as part of his weeklong swing-state tour during the Democratic convention. He went to Howell, Michigan, on Tuesday and stood aside sheriff’s deputies as he labeled Harris the “ringleader” of a “Marxist attack on law enforcement” across the country.

“Kamala Harris will deliver crime, chaos, destruction and death,” Trump said in one of many generalizations about an America under Harris.

Harris, meanwhile, cast the election in dire, almost existential terms. She implored Americans not to get complacent in light of the Supreme Court decision carving out broad presidential immunity, a power she said Trump would abuse.

She has also seized on Trump’s opposition to a nationally guaranteed right to abortion.

“They seemingly don’t trust women,” she said of Trump and his Republican allies. “Well, we trust women.”

The vice president’s speech evoked some of the same themes that underlaid Biden’s case for reelection before he dropped out, casting Trump as a threat to democracy. Harris argued that Trump threatens the values and freedoms that Americans hold dear.

Someone with that record “should never again have the opportunity to stand behind the seal of the president of the United States,” Harris said. “Never again.”
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Protesters arrested after clash with police outside Chicago’s Israeli consulate

Posted on by SeeUS

CHICAGO — Dozens of pro-Palestinian protesters charged a line of police in an intense standoff with hundreds of officers outside the Israeli consulate Tuesday on the second night of the Democratic National Convention.

After the larger gathering began to disperse, splintering off into smaller groups, other interactions with police led to more than a dozen arrests. Officers called the demonstrations “an unlawful assembly.”

Earlier in the night, officers carrying wooden clubs shouted “move” and penned the demonstrators in on the street, preventing them from marching.

Some demonstrators set an American flag on fire in the street as the celebratory roll call for Vice President Kamala Harris took place inside the United Center about 3.2 kilometers away. Others carried Palestinian flags, while many others wore black and covered their faces.

As protesters regrouped and approached a line of police in riot gear in front of a Chicago skyscraper that houses the Israeli consulate, an officer said into a megaphone, “You are ordered to immediately disburse.” A woman in the front of the march shouted back with her own megaphone: “We’re not scared of you.”

A man in a Chicago Bulls hat, his face covered by a balaclava, called on protesters to “shut down the DNC.” The group, which is not affiliated with the coalition of over 200 groups that organized Monday’s protests, advertised the demonstration Tuesday under the slogan of “Make it great like ’68,” invoking the anti-Vietnam War protests that seized the city during the 1968 Democratic National Convention.

The atmosphere with rows of police in riot gear was a stark contrast to a day earlier when thousands of pro-Palestinian activists, including families pushing babies in strollers, marched near the convention site calling for a cease-fire.

Police kept protesters confined to a block of Madison Street, a normally bustling downtown thoroughfare where traffic was halted on both ends Tuesday evening.

Law enforcement had closed down most of the entrances to the building on Tuesday, allowing commuters to come in only one entrance where armed officers were also posted. Many of the building’s shops were closed. Martha Hill, a spokeswoman for the Metra commuter rail service, said train service was running as normal.

The consulate has been the site of numerous demonstrations since the war in Gaza began in October. It is in a building connected to the Ogilvie Transportation Center, a major commuter rail station.

Mohammed Ismail, a 29-year-old psychiatry resident who lives in Chicago, described the police presence as “excessive,” and questioned why the group had been blocked from marching. He said he joined the protest to urge Democrats to cease funding to Israel.

“It’s not right that we’re sending our tax money to fund an ongoing slaughter, an ongoing genocide,” Ismail said. “We’re a part of this conflict because our money is paying for it.”

Meanwhile, the sites of demonstrations from the previous night were largely quiet. Thirteen people were arrested during Monday’s protests, most them related to a “brief breach” of security fencing “within sight and sound of the United Center,” the city’s police superintendent said.

Israel supporters, including some relatives of people kidnapped by Hamas, gathered earlier in the day at a pro-Israel art installation not far from the consulate to call on U.S. leaders to continue backing Israel and pushing for the release of hostages. The art installation included giant milk cartons bearing photos of some of the hostages.

Elan Carr, CEO of the Israeli-American Council, condemned the pro-Palestinian protesters who have descended on Chicago this week, calling them “fringe crazies” and demanding that U.S. leaders “stand unequivocally with the state of Israel.”

More protests were planned throughout the week. However, attendance at the main rally on Monday was far below estimates of organizers who had predicted more than 20,000 would show up.

Chicago Police Superintendent Larry Snelling said Tuesday that the crowd was around 3,500 strong and that the vast majority of the protesters were peaceful.

However, some clashed with police, used pepper spray against them and threw water bottles at officers during the clash in the park where there was a breach in security fencing, Snelling said. He said officers did not use any chemical sprays.

“Our officers showed great restraint,” he said at a news conference. “We’re not going to tolerate vandalism and violence in our city. … We’re going to continue to protect the city.”

Snelling said with more protests planned, his department is prepared to de-escalate situations whenever possible.

“Again, we’re up to the challenge,” Snelling said. “The city is up to the challenge.”

The park where the most arrests were made, located a block from the convention arena, served as a destination point for a march of thousands calling for a cease-fire in the Israel-Hamas war. Several dozen activists broke off from the main group, breached the fencing, and were pushed back by police.

Authorities said the inner security perimeter surrounding the United Center was not breached and there was no threat to those attending the convention.

On Tuesday morning, an extra line of fencing was installed at the park and the tall metal barriers were reinforced to prevent protesters from lifting and removing the panels. No police officers or protesters were in the park early Tuesday.

The 13 people arrested during Monday’s protest were detained on charges ranging from criminal trespass and resisting and obstructing an arrest, to aggravated battery of police officers, Snelling said.

At least 10 of them were arrested in connection with the fence, he said.

Snelling said he did not connect those who tore down the fence with the entirety of the march. He said the vast majority of participants were peaceful, and he praised his officers’ conduct in the moment.

The Chicago chapter of the National Lawyers Guild said two of the people arrested were hospitalized. Snelling said they were not taken to the hospital for injuries, but “so they could be provided the treatment they needed when it came to their medications.”

Two people were also arrested on misdemeanor property damage and resisting arrest charges during a protest march Sunday night. As of Tuesday morning, 15 people had been arrested.

Most of the largest demonstrations have been organized by the Coalition to March on the DNC, which has focused on calling for a cease-fire in Gaza. But smaller protests have popped up around the city, during the convention’s welcome party at Navy Pier.
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Ukrainian forces take more Russian terrain

Posted on by SeeEU

Ukrainian President Volodymyr Zelenskyy says the country’s forces now control 92 settlements and more than 1,250 square kilometers in Russia’s Kursk region, after Ukrainian responses to Russia’s cross-border attacks evolved into a surprising offensive. VOA Pentagon correspondent Carla Babb has the latest.
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Political criticism and controversy swirls ahead of China video game release

Posted on by SeeEA

washington —  The release of a Chinese video game touted as the country’s first to meet Triple-A standards, has sparked a flurry of online criticism of the Chinese government.

Video games are given a AAA label when they are backed by big funds, highly developed and distributed by well-known publishers.

The Aug. 20 worldwide release of the Chinese game Black Myth: Wukong has been anticipated since its demo got more than 56 million views on the Chinese video-sharing website Bilibili in 2020.

On YouTube, which is banned in China, the game demo had more than 10 million views.

Developed by China-based Game Science, the game has players take on the role of the Monkey King, a character from the Chinese classic novel Journey to the West, and defeat monsters wreaking havoc on the world.

Although the game has no direct connection to politics, Chinese commenters took to a U.S.–based gaming discussion board ahead of the release to criticize the Chinese government and President Xi Jinping.  

The discussion board on Steam, a Washington state-based online gaming platform, was hit with a slew of comments in Chinese last week that directly and indirectly criticized Chinese authorities and Xi.  

One mocked Xi’s unprecedented third term as leader, saying, “I will continue to be Jade Emperor in Black Myth: Wukong. Raise your hands if you oppose it.”

Most critical posts ranted against the Chinese government, in ways unrelated to the game.

“Overthrow the Communist Party of China and establish a democratic constitutional system where everyone has a vote,” read what appeared to be the first critical comment.  

“Thank you to the party, thank you to our great chief accelerator, Xi Jinping,” another comment reads, mocking Xi’s policies as accelerating China’s economic decline.

Another post listed the timeline of the weeks-long 1989 Tiananmen Square pro-democracy protests and the subsequent violent crackdown that occurred when Chinese troops used lethal force against student-led demonstrators, killing hundreds, perhaps thousands.

Such critical comments of China’s government and leaders are not allowed on China’s internet, where an army of censors frequently scrubs websites and discussion boards of comments that do not follow the Chinese Communist Party’s line.  

Observers were surprised to find by the afternoon of Aug. 16, many of the critical posts on Steam’s U.S. discussion board had similarly been removed.  

Li Ying, a Chinese social media influencer and government critic known online as Teacher Li, posted his opposition to the removal on Aug. 14 on X with screenshots of the original posts.

“Steam is inherently a free platform, with a wide variety of games here, and players are free to express any opinions and opinions about the game,” he wrote on X.

Steam’s China-based website does not have a discussion board, and the U.S.-based discussion board is only available to users outside China. Those inside China need to use a Virtual Private Network, or VPN, which helps users bypass controls to access internet content outside the country that is blocked.

VOA reached out to Steam seeking comment about why the posts were deleted but did not receive a reply. Steam’s discussion board rules do not explicitly prohibit political posts but say that users are not allowed to post “disrespectful” content and to avoid posting content unrelated to the topic.

While the game is not directly connected to the Chinese government, it did receive some official help and praise. The city government of Hangzhou, where Game Science is located, gave the game a grant in 2022. State media in the province, Zhejiang, described the game as “one of the most important explorers in the history of AAA games in China – an explorer that deserves applause and encouragement.”

It’s not the first time Black Myth: Wukong has stirred up some controversy.

The game’s developers have been accused of making lewd and sexist remarks.

Feng Ji, the founder and CEO of Game Science, in a Weibo post last year lamenting the difficulties in development, used words with erotic connotations and compared his desire for expanding development to oral sex.

Yang Qi, the game’s artistic director, remarked as early as 2013 on Weibo that they would not pander to female players in the game’s production.

“I don’t need the reverse drive of female players. I don’t take care of those lewd insects who come to pick up girls; some things are made for pure men,” he wrote.

In response, a female influencer posted on the gender-focused WeChat account Orange Umbrella, urging Game Science to respect female gamers.

“As a fellow player, I know how much hard work and dedication it takes to make a game, and Black Myth: Wukong’s dedication and seriousness in the production are commendable,” she wrote. “However, don’t let the backward gender consciousness push players who are also full of expectations for the game in the opposite direction more and more.”

When Western media, including IGN, one of the most influential U.S. online news sites for video games, reported last year on the controversial comments, nationalist Chinese commenters called the coverage an attempt to impose western values and put down China’s gaming industry.

“Judging the Chinese game with the politically correct stance of the West is really biased for the media,” a review article reads. The article said whether the developers’ remarks constituted sexism “depends on the perspective.”

On Weibo, one commenter called IGN a “clown” and wrote, “In order to suppress the rise of Chinese games, the gender card is unsurprisingly played again.”

Despite the controversies, gaming industry experts expect Black Myth: Wukong to be a big hit.

Daniel Camilo, a game industry consultant based in southern China’s Shenzhen city, noted to VOA that sexism in the gaming industry is not new and has little impact on commercial success.

“Hardcore gamers and fans that actively discuss these issues and are aware of them usually represent a very small [loud] minority online that accounts for a small residual amount of those who actually buy games,” he said.

The game has already received high praise from reviewers in China and abroad.

IGN gave the game an 8 on a scale of 1 to 10 on Aug. 16, calling it a “great action game with great fights and exciting and powerful opponents, albeit with a few bugs.”

The Chinese version of IGN gave the game a perfect score of 10, writing, “This is a truly competitive domestic game in the global market, and I believe it will be a strong contender for this year’s Game of the Year.”

Camilo noted the high quality of the homegrown game has given Chinese players something to be proud of that might even help improve China’s international image.

“Black Myth will change perceptions people have regarding Chinese games and, to some extent, China and its cultural output and soft power really,” he said.

Adrianna Zhang contributed to this report.
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How will Japan’s new leader tackle Indo-Pacific security threats?

Posted on by SeeEA

tokyo — During his term, Prime Minister Fumio Kishida has transformed Japan’s defense posture amid growing threats from China, Russia and North Korea.

After nearly three years in power, however, Kishida is set to leave office, having announced earlier this month that he would not run in September’s election to lead his ruling Liberal Democratic Party, amid low approval ratings and corruption allegations within the LDP. 

At question is whether his successor will build on that legacy or take Japan in a new direction. Regardless, Kishida said he would support the new leader.

War anniversary

Kishida marked the 79th anniversary of his country’s defeat in World War II on Thursday, leading a solemn ceremony in Tokyo alongside Japanese Emperor Naruhito and Empress Masako.

Speaking to delegates in what will likely be one of his last major public events, Kishida reiterated Japan’s long-held position on its devastating 1945 defeat.

“We must never again repeat the devastation of war. Although 79 years have now passed, no matter how time flows, we will remain committed to this resolute pledge, passing it down across generations,” Kishida said.

But his speech also reflected Japan’s changing role on the global stage.

“Japan will do its utmost to resolve the various challenges facing the world as it works to maintain and strengthen the free and open international order based on the rule of law while placing human dignity at the very center. In this way, we will carve out the future of our nation,” he added.

Global challenges

Japan lies at the intersection of several of those global challenges, and Kishida’s successor will likely continue his approach to defense and security, said Tomohiko Taniguchi, an adviser to the late former Prime Minister Shinzo Abe and now a special adviser at Fujitsu Future Studies Center.

“The scope of options for Japan is indeed narrow because of the troubling neighborhood that Japan finds itself in,” Taniguchi told VOA.

“Russia, North Korea and China — three of the nuclear-powered [armed] nations — none of which has exercised anything akin to open democracy. And all three of those countries are all fostering hostility and hate, intentionally and institutionally, towards Japan and the U.S.-Japan alliance,” he said.

Ukraine ties

Shortly after Russia’s February 2022 invasion of Ukraine, Kishida warned that “Ukraine today may be East Asia tomorrow,” a statement that appeared to resonate with many regional allies.

The Japanese leader forged close ties with Kyiv, visiting the town of Bucha in 2023, where Russian troops are alleged to have committed war crimes, including mass killings and rape. Moscow denies the charges, despite widespread evidence.

Kishida then invited Ukrainian President Volodymyr Zelenskyy to attend the 2023 G7 summit in Hiroshima.

Under Kishida’s leadership, Japanese lawmakers approved a doubling of defense spending by 2027. He forged closer alliances with regional allies, and in July, successfully negotiated an upgrade of the United States’ military command in Japan.

South Korea

Over the past two years, Japan’s Kishida and South Korean President Yoon Suk Yeol overcame historical grievances to forge a close alliance. 

In a joint statement issued Sunday, the United States, Japan and South Korea reaffirmed their pledge made a year ago at a historic trilateral summit at Camp David.

“We stand by our commitment to consult on regional challenges, provocations and threats affecting our collective interests and security,” the statement said.

But uncertainties remain, said analyst Taniguchi.

“There is no assurance whatsoever that the improved South Korea-Japan relationship is going to continue as it is. President Yoon has passed the midpoint of his term. The rest of his term is going to be increasingly a lame-duck administration. The opposition parties are sniffing blood already — and the easiest target for the opposition party is to say that the incumbent administration is too weak vis-a-vis Japan,” Taniguchi told VOA.

Likely successor?

Kishida has no obvious successor. Several LDP lawmakers, including numerous government ministers, are expected to put themselves forward for the Sept. 27 vote for the party presidency. 

“There are some (candidates) who have shown uneasiness… as if Japan was a puppet of the Big Brother of the United States,” Taniguchi said.

Japan’s next prime minister will also have to win over the Japanese public and rebuild trust that has been eroded by a recent scandal over political funds.

“The public supports in principle are boosting Japan’s defenses and the defense budget hikes, but they are actually unwilling to pay higher personal taxes in order to do so,” said Yee Kuang Heng, a professor of international relations at the University of Tokyo. 

He added that the Japanese public now largely accepts the need for a stronger defense capability, “but nevertheless remains quite cautious about a more aggressive military posture.”

Global reaction

The United States’ ambassador to Japan, Rahm Emanuel, wrote on X that Kishida had “helped build a latticework of security alliances and partnerships across the Indo-Pacific region that will stand the test of time.”

Beijing, meanwhile, said it would work to build a constructive and stable China-Japan relationship with Kishida’s successor.

The next prime minister will require staying power, Taniguchi said, “because the next five, six or seven years is going to be crucial for this ongoing long game between China and Japan. And nothing can be achievable for a prime minister who stays in office only for one or two years.” 

He added, “So, the next prime minister has got to come up with a good plan with which he or she could stay in office, manage difficult tasks, strengthen Japan’s alliance networks, and beef up Japan’s defense spending.”
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Botswana begins mpox screening at entry points

Posted on by SeeAF

Gaborone, Botswana — Health officials in Botswana have started screening travelers for mpox at the country’s entry points. 

Neighboring South Africa has recorded three deaths as a result of the dangerous strain of mpox, and Botswana is anxious to keep out the rapidly spreading disease.

“Although we have not recorded any case of mpox in Botswana, I want to take this opportunity to assure Botswana that we have significantly enhanced our broader surveillance systems,” the country’s minister of health, Dr Edwin Dikoloti, told the media Tuesday. “We are currently intensifying our surveillance at key entry points, which is borders and airports, focusing on high-risk areas.”

South Africa shares a 1,900-kilometer border with Botswana and as of Aug. 5 had recorded three mpox deaths. In Africa, the disease has claimed the lives of more than 500 people since the beginning of the year.

Botswana Public Health Institute Acting Director Dr. Thebeyame Matsheka says travelers will be required to fill out self-assessment forms at border checkpoints.

“There are sometimes where, through just random checks, we might identify someone who appears not to be well, they will take those travelers aside and investigate further,” Matsheka said.

Meanwhile, Dikoloti said Botswana is engaging with international partners for the supply of vaccines.

According to Africa’s Centers for Disease Control and Prevention, the continent has about 200,000 vaccine doses against a requirement of at least 10 million doses.

Medication to be used for the management of mpox is available at health facilities throughout the country.

“Vaccines exist for mpox but they are not widely available,” Dikoloti added. 

The World Health Organization country representative, Juliet Bataringaya, says the scale of the mpox vaccination will not be broad because the disease affects countries differently.

“We need to have a good understanding of the epidemiology in each and every country, because it is different and to understand the transmission patterns,” Bataringaya said. “These will then guide on the use of vaccines in a more targeted way to have maximum public health impact.”

She said there won’t be the kind of mass vaccination effort implemented during the COVID pandemic because the modes of transmission are different.
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US judge strikes down Biden administration ban on worker ‘noncompete’ agreements

Posted on by SeeUS

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From ‘Cobra Kai’ to ‘Blue Beetle’: Actor Xolo Maridueña’s journey to first Latino superhero

Posted on by SeeUS

Xolo Maridueña is currently starring in the sixth and final season of the hit karate series “Cobra Kai,” which premiered on Netflix in July. But he also made waves last year when he was cast as the first Latino superhero lead in “Blue Beetle.” The actor spoke with Veronica Villafañe about the impact of these roles in his career and the need for Latino representation in Hollywood.
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Latvia advocates for use of Russian assets to support Ukraine

Posted on by SeeEU

Germany and other G7 countries are developing ways to support Ukraine through loans financed with the proceeds of frozen Russian assets. The German Finance Ministry announced the effort on Tuesday. Latvia, once a sanctuary for Russian money, is a strong backer of the plan, as VOA’s Myroslava Gongadza reports from Riga. Videographer: Daniil Batushchak
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Myanmar fighting blocks key trade route with China, impacting economy

Posted on by SeeEA

Bangkok — Ethnic and resistance forces in Myanmar have completely blocked a key trade route to China, halting cross-border commerce and further damaging Myanmar’s already struggling economy.

The Mandalay-Lashio-Muse Road is considered the most strategically important road in the country’s northern Shan State.

Formerly known as the “Burma Road,” locals commonly call it the “pearl necklace,” as it connects Myanmar’s second largest city of Mandalay with the Chinese border. The string of pearls of trade towns already captured by rebel forces include Nawnghkio, Kyaukme, Lashio, Hsenwi, Kutkai and Muse near China’s southern border of Yunan province.

Lway Yay Oo, spokeswoman for the Ta’ang National Liberation Army, or TNLA, told VOA that right now “there are battles all along the trade route.” That has increasingly been the case, she said, since the second phase of operation 1027 began several weeks ago.

The TNLA is part of the “Three Brotherhood Alliance,” along with the Arakan Army, AA and the Myanmar National Democratic Alliance Army, or MNDAA.

The first phase of the 1027 rebel offensive, which is named after the date it began, began on October 27, 2023.

The recent capture of several key towns along the trade route in a relatively short span of time has been widely seen as a potential turning point in the resistance as rebels look to cement control and further loosen the grip of junta forces the region.

The military government isn’t giving in easily, however, with intense battles along the route making trade nearly impossible.

“The TNLA and joint forces control the entire border trade route with the cities of Kutkai, Lashio, Kyaukme and Hsipaw, except for Muse,” Lway Yay Oo added. “Although we are prepared to keep businesses operating, we’ve had to stop border trade due to fierce fighting.”

Myanmar’s trade crisis deepens

The ongoing conflict and capture of key trading towns is already having an impact.

“Myanmar’s trade sector depends mostly on border trade,” said one Yangon-based businessman, who requested anonymity due to security reasons during a phone interview with VOA. “Air trade is very expensive now, and maritime trade takes a long time, so we must rely on border trade routes.”

With main trade routes closed, businesses are looking to find alternate routes.

“Trade flows are slower than they should be, and we are spending more on transportation, leading to further losses,” the man said. There is also an impact on consumers as the ripple effect of higher transportation costs, currency fluctuations and slower trade spreads to the general population.

“When these things happen, consumers also suffer,” he said, adding that right now “with demand so low, our revenue has dropped by about 50%.”

Earlier in June, the World Bank downgraded Myanmar’s economic growth forecast to just 1% for the 2024-2025 fiscal year, citing the intensifying conflict, labor shortages and a depreciating currency as key challenges. And that was just as the second phase of operation 1027 was beginning.

Impacting the junta

According to the Ministry of Commerce’s statistics, the border trade value between Myanmar and China totaled US$416.867 million in the first two months of the current financial year 2024-2025, which began on April 1.

It is a significant decline from the $640.43 million recorded during the same period last year, and a decrease of $223.564 million.

So far, for its part, Myanmar’s military rulers are playing down the impact the conflict is having.

“Despite the challenges posed by recent conflicts, we continue to facilitate trade with our neighboring countries, especially China,” a representative from Myanmar’s Ministry of Commerce said in June, according to state media. The ministry has not commented on the impact fighting has had on the economy since then.

Opposition forces disagree and say the success of the resistance has significantly weakened the junta’s ability to manage the economy, including trade.

“The revolutionary forces have grown stronger militarily and now control more territory,” said Min Zayar Oo, the NUG Deputy Minister of Planning, Finance, and Investment, in an interview with VOA.

Min Zayar Oo added that part of this is because of the junta’s mismanagement.

“Stability and clear policy are essential for business, but the military council has failed to provide this,” he said.

Commodity prices are soaring due to inflation and recent efforts by the junta, such as printing new currency notes, have only worsened the economic situation, he adds.

“Cross-border trade routes are disrupted, foreign currency is scarce, and the junta is struggling to provide basic services. The economic front, like the military front, is already collapsing,” he said.

The economic downturn is also impacting military funding, former army Major Naung Yoe told VOA in a telephone interview.

“No matter how much the junta increases the military spending budget, if the country doesn’t have foreign currency, the military spending will also be affected,” he said.

Border trade stalls, Kyat at record low

As fighting continues and trade stalls and the value of Myanmar’s currency the Kyat plummets, many business owners are hoping a resumption of stability will come soon.

“Every day that the fighting continues, our businesses suffer,” one medium-sized entrepreneur based in Yangon told VOA, who requested anonymity for security reasons. “We rely on cross-border trade, and with the current situation, it feels as though we have been cut off from the rest of the world.”

In late June, the Kyat hit a record low in foreign exchange markets, exacerbating the financial crisis faced by many in the country.

“We are struggling to keep our operations afloat,” another entrepreneur noted. “The depreciation of the kyat is making imports prohibitively expensive, and we cannot raise prices without losing customers.”

As the conflict rages on, the future of Myanmar’s economy remains uncertain, with many calling for an urgent resolution to restore stability and revive trade. “We need peace to rebuild our businesses and our country,” the Yangon based entrepreneur added. “Without it, we are all at risk.”
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