Bait Crisis Could Take the Steam Out of Lobster This Summer

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The boom times for the U.S. lobster industry are imperiled this year because of a shortage of a little fish that has been luring the crustaceans into traps for hundreds of years.

Members of the lobster business fear a looming bait crisis could disrupt the industry during a time when lobsters are as plentiful, valuable and in demand as ever. America’s lobster catch has climbed this decade, especially in Maine, but the fishery is dependent on herring — a schooling fish other fishermen seek in the Atlantic Ocean.

Federal regulators are imposing a steep cut in the herring fishery this year, and some areas of the East Coast are already restricted to fishing, months before the lobster season gets rolling. East Coast herring fishermen brought more than 200 million pounds of the fish to docks as recently as 2014, but this year’s catch will be limited to less than a fifth of that total.

The cut is leaving lobstermen, who have baited traps with herring for generations in Maine, scrambling for new bait sources and concerned about their ability to get lobster to customers who have come to expect easy availability in recent years.

“If you don’t have bait, you’re not going to fish. If the price of bait goes up, you’re not going to fish,” said Patrice McCarron, executive director of the Maine Lobstermen’s Association. “We have to take the big picture, and make sure our communities continue to have viable fisheries.”

The cut in the herring quota stems from a scientific assessment of the fish’s population last year by the National Oceanic and Atmospheric Administration’s Northeast Fisheries Science Center. The assessment found a below-average number of young herring are surviving in the ocean.

The loss of herring has sounded alarms among scientists and conservationists, because the fish also serve a critical role in the ocean food chain and they’re valuable as food for humans.

It’s unclear exactly what factors are causing young herring to fail to survive to maturity, said Jonathan Deroba, lead assessment scientist for herring with the Northeast Fisheries Science Center. He said it’s “premature to predict the sky is falling,” though he added the herring population could be suffering from multiple stresses at once.

“We’d be foolish not to look at climate change. The abundance of haddock, which are egg predators. And fishing activity on Georges Bank disrupting herring,” Deroba said. Georges Bank is a key fishing area off New England.

Fishermen bring herring to shore mostly in Maine and Massachusetts, which are also the biggest lobster fishing states. Lobstermen also load traps with other kinds of bait, such as menhaden, and some herring is available in freezers, but fishermen said they’re concerned there won’t be enough to go around.

The New England Fishery Management Council is also considering herring catch quota for 2020 and 2021 later this year, and fishermen said they’re concerned the cuts could be maintained for those years. The loss of herring is also a heavy blow to the fishermen who harvest the species, said Jeff Kaelin, who works in government relations for Lund’s Fisheries, a herring harvester based in Cape May, New Jersey.

“It’s going to be tough on everyone,” Kaelin said, not just the people who catch the herring, but also “the lobstermen who depend on it for historic bait supply.”

The U.S. lobster fishery set an all-time record for value at docks in 2016, when the catch was worth more than $670 million. That was also the year the herring catch fell to its lowest point since 2002, though it was still more than 138 million pounds.

Lobsterman Jeffrey Peterson, who fishes out of the island town of Vinalhaven, Maine, said he’s sure he’ll be able to load his traps with bait this summer. He’s just concerned about how expensive it’ll be to do so.

“It’ll be around,” he said. “It’s just how much they gouge you for it.”

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World Turns Off Lights for Earth Hour 

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The Eiffel Tower, the Empire State Building, the Sydney Opera House, the Brandenburg Gate, the Acropolis and many more iconic landmarks went dark at 8:30 p.m. local time, Saturday night, for Earth Hour, an annual call for local action on climate change.

Earth Hour is the brain child of the World Wildlife Fund.

“By going dark for Earth Hour, we can show steadfast commitment to protecting our families, our communities and our planet from the dangerous effects of a warming world,” said Lou Leonard, WWF senior vice president, climate and energy. “The rising demand for energy, food and water means this problem is only going to worsen, unless we act now.”

Individuals and companies around the world participated in the hour-long demonstration to show their support for the fight against climate change and the conservation of the natural world.

WWF said Earth’s “rich biodiversity, the vast web of life that connects the health of oceans, rivers and forests to the prosperity of communities and nations, is threatened.”

The fund also reports that wildlife populations monitored by WWF “have experienced an average decline of 60 percent in less than a single person’s lifetime, and many unique and precious species are at risk of vanishing forever.”

“We have to ask ourselves what we’re willing to do after the lights come back on,” Leonard said. “If we embrace bold solutions, we still have time to stabilize the climate and safeguard our communities and the diverse wildlife, ecosystems and natural resources that sustain us all.”

“We are the first generation to know we are destroying the world,” WWF said. “And we could be the last that can do anything about it.”

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US, China Face Off Over 5G in Cambodia

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For techies and phone geeks, Digital Cambodia 2019 was the place to be.

More than a dozen high school students clustered at the booth for Cellcard, Cambodia’s leading mobile operator. Under the booth’s 5G sign, they played video games on their phones.

Hak Kimheng, a ninth grade student in Phnom Penh, said his mom bought him a Samsung smartphone a few months ago, when he moved to the capital city from nearby Kandal province to live with his uncle while attending school. Like moms everywhere, she thought the smartphone would help her stay in touch with her son.

But smartphones being smartphones and kids being kids, Hak Kimheng, 16, has used it to set up an account on Facebook, Cambodia’s favorite social media platform. He’s also downloaded Khmer Academy, a tutoring app filled with math, physics and chemistry lessons.

And for one hour a day, Hak Kimheng watches soccer on the YouTube app he downloaded. While it’s better than nothing, the internet connection is “slow … and the video image is not clear,” he said.  “I want it to be faster. … It’ll be good to have 5G.”

Not far from the Cellcard booth, Cambodian government officials, ASEAN telecom and IT ministers, businesspeople, telecom and tech company representatives gathered for the opening ceremonies of Digital Cambodia 2019. The event, which ran from March 15 to March 17, attracted more than 100 speakers from throughout Southeast Asia, high level officials, businesspeople, researchers and telecom company representatives.

The discussions focused on 5G, which, with speeds as much as 100 times faster than 4G, will mean better soccer viewing for Hak Kimheng and faster connections for all users. But 5G will also be central to a world of smart cities filled with smart homes and offices replete with devices connected to the “internet of things” humming along amid torrents of personal, business and official data.

‘A milestone year’

David Li, CEO of Cambodian operations for the Chinese company, Huawei, which is facing challenges over security from the U.S., spoke first, promising to “help Cambodia obtain better digital technology to improve social productivity and national economy.”

Government ministers, one from finance and economy and one from posts and telecommunication, listened as Li continued, pointing out that Huawei Technologies Cambodia launched in 1999. “We have been operating 2G, 3G, 4G, and now we’re heading toward 5G,” he said.

“Currently we are the only industry vendor that can provide the intertwined 5G system. I believe this year 2019 will be a milestone year for 5G in Cambodia,” Li said.

While this next generation of mobile networks will take years to roll out, the U.S. and China are in a race over whose technology will set the standards for 5G networks, something which will have immediate commercial value and carry longer term strategic implications for developing the dominant platform for 6G.

Citing concern that Huawei is, like all Chinese companies, linked to the Beijing government, the U.S. has been urging allies not to let Huawei build their 5G networks. But in countries like Thailand, which is Cambodia’s neighbor and a U.S. ally, Huawei is building and testing a 5G network because authorities said its low cost trumped U.S. pressure.

Huawei has long maintained it doesn’t provide back doors for the Chinese government, pointing out the lack of evidence to support the allegations, according to Bloomberg.

William Carter, deputy director of the Technology Policy Program at the Center for Strategic and International Studies (CSIS) said earlier this month that any country doing business with Huawei on 5G will have to deal with the risk of Chinese influence.

“And the question will be to what extent is that concern enough to overcome the price advantage and the service advantages and the integrated financing advantages doing business with Huawei,” he said.

Rich market

As more private businesses and government services move toward cashless payment and online data access, Cambodia is emerging as a rich market for 5G telecoms. Approximately 13.6 million people, or 82 percent of Cambodians, use the internet, and about 7 million use Facebook, the number of mobile subscriptions is around 19.5 million by January 2019, or 120 percent penetration, according to the Ministry of Posts.

Sok Puthyvuth, secretary of state at the posts and telecommunication told VOA Khmer that Cambodia is eager for 5G, urging private companies, including mobile operators and internet companies, “to make 5G available across the country.”

Thomas Hundt, CEO of Smart Axiata, one of Cambodia’s mobile telecommunications operators, told VOA Khmer only that the company is preparing for a 5G rollout, because users’ data consumption is overwhelming the 4.5G network. “We see an immediate need to come out with the next evolution of technology … at some point this year.”

Cellcard CEO Ian Watson, said the company is targeting a commercial launch of 5G services in the second quarter of 2019.

Tram IvTek, Cambodia’s minister of Posts and Telecommunications said at the opening ceremony of Digital Cambodia that the government “is strongly committed to connecting the country and to ensure the benefits of ICT (information and communications technology) reach the remotest corners as well as the most vulnerable communities” by 2020.

Aun Pornmoniroth, minister of economy and finance in a March 12 workshop on Cambodia’s digital economy, suggested it will take “five to 10 years or more to set up a complete digital economy and turn Cambodia’s economy into a technological leader.”

Meas Po, undersecretary of state at Ministry of Post, said the government has yet to decide which company it will partner with for building the 5G infrastructure but it has not ruled out Huawei or other Chinese companies. “In our country, we have our protective system, in other countries, they have theirs. We don’t allow anyone to just freely hack our data.”

Protecting privacy

Smart Axiata’s Hundt said his company wanted to a partner that would “guarantee to us that the equipment is solid and sound [and] our users’ data is safeguarded and the network is fully secured from cyber-security perspectives.”

Nguon Somaly, who earned a master’s degree in law and technology at Tallinn University of Technology in Estonia, has written extensively on data privacy in Cambodia. She contends Cambodian social media users don’t have the data privacy concerns of users in the U.S. and Europe.

“Cambodian youths don’t really care about privacy [on social media], but people in [the] EU are concerned about their data privacy,” said Somaly, referring to the European Union’s General Data Protection Regulation (GDPR) which restricts how personal data is collected and handled.

“That is money and it can be analyzed and generate income,” Somaly said. “China is not a free country and privacy is not their priority. Their priority is to generate business opportunities and income.”

Xu Ning, a reporter with VOA’s Mandarin Service, contributed to this report from Washington, D.C.

 

 

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US Uses Obscure Agency to Target Chinese Foreign Investments

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For decades, it was virtually unknown outside a small circle of investors, corporate lawyers and government officials. 

 

But in recent years, the small interagency body known as the Committee for Investment in the United States has grown in prominence, propelled by a U.S. desire to use it as an instrument of national security and foreign policy. 

 

This week, the panel made headlines after it reportedly directed Chinese gaming company Beijing Kunlun Tech to divest itself of Grindr, a popular gay dating app, because of concern the user data it collects could be used to blackmail military and intelligence personnel. 

 

Operating out of the Treasury Department, the nine-member CFIUS (pronounced Cy-fius) reviews foreign investments in U.S. businesses to determine whether they pose a national security threat.  

Notification was voluntary

 

Until last year, notifying the panel about such investments was voluntary, something Kunlun and California-based Grindr took advantage of when they closed a deal in 2016.  

 

But given growing U.S. concern about Chinese companies with ties to Beijing buying businesses in sensitive U.S. industries, the committee’s rare intervention to undo the deal was hardly a surprise, said Harry Broadman, a former CFIUS member.   

 

“I think anyone who was surprised by the decision really didn’t understand the legislative history, legislative landscape and the politics” of CFIUS, said Broadman, who is now a partner and chair of the emerging markets practice at consulting firm Berkley Research Group. 

 

The action by CFIUS is the latest in a series aimed at Chinese companies investing in the U.S. tech sector and comes as the Trump administration wages a global campaign against  telecom giant Huawei Technologies and remains locked in a trade dispute with Beijing. The U.S. says the state-linked company could gain access to critical telecom infrastructure and is urging allies to bar it from participating in their new 5G networks.   

While the administration has yet to formulate a policy on Huawei, the world’s largest supplier of telecom equipment, the latest CFIUS action underscores how the U.S. is increasingly turning to the body to restrict Chinese investments across a broad swath of U.S. technology companies.  

 

“CFIUS is one of the few tools that the government has that can be used on a case-by-case basis to try to untangle [a] web of dependencies and solve potential national security issues, and the government has become increasingly willing to use that tool more aggressively,” said Joshua Gruenspecht, an attorney at Wilson Sonsini Goodrich & Rosati in Washington, who represents companies before the committee. 

 

CFIUS’s history has long been intertwined with politics and periodic public backlash against foreign investment in the U.S.  

 

OPEC investments

In 1975 it was congressional concern over the Organization of the Petroleum Exporting Countries (OPEC) investments in U.S. stocks and bonds that led President Gerald Ford to set up the committee through an executive order. It was tasked with monitoring the impact of foreign investment in the United States but had little other authority.  

 

In the years that followed, backlash against foreign acquisitions of certain U.S. firms led Congress to beef up the agency.  

 

In 1988, spurred in part by a Japanese attempt to buy a U.S. semiconductor firm, Congress enshrined CFIUS in law, granting the president the authority to block mergers and acquisitions that threatened national security.  

 

In 2007, outrage over CFIUS’s decision to approve the sale of management operations of six key U.S. ports to a Dubai port operator led Congress to pass new legislation, broadening the definition of national security and requiring greater scrutiny by CFIUS of certain types of foreign direct investment, according to the Congressional Research Service.  

 

But by far the biggest change to how CFIUS reviews and approves foreign transactions came last summer when Congress passed the Foreign Investment Risk Review Modernization Act of 2018. 

 

Slated to be fully implemented in 2020, the new law vastly expanded CFIUS’s jurisdiction and authority, requiring foreign companies that take even a non-controlling stake in a sensitive U.S. business to get the committee’s clearance.  

 

While the new law did not mention China by name, concern about Chinese investments and national security dominated the debate that led to its enactment. 

 

“There is no mistake that both the congressional intent and the executive intent has a clear eye on the role of China in the transactions,” Broadman said. 

Threats to ‘technological superiority’

 

Under interim rules issued by the Treasury Department last fall, investments in U.S. businesses that develop and manufacture “critical technologies” in one or more of 27 designated industries are now subject to review by CFIUS. Most of the covered technologies are already subject to U.S. export controls. The designated industries are sectors where foreign investment “threatens to undermine U.S. technological superiority that is critical to U.S. national security,” according to the Treasury Department. They range from semiconductor machinery to aircraft manufacturing.  

 

The new regulations mean that foreign companies seeking to invest in any of these technologies and industries must notify CFIUS at least 45 days prior to closing a deal. CFIUS will then have 30 days to clear the deal, propose a conditional approval or reject it outright. If parties to a transaction do not withdraw in response to CFIUS’s concerns, the president will be given 15 days to block it.   

To date, U.S. presidents have blocked five deals — four of them involving Chinese companies. One was blocked by the late President George H.W. Bush in 1990, two by former President Barack Obama in 2012 and 2016, and two by President Donald Trump. 

 

The number is deceptively small. A far greater number of deals are simply withdrawn by parties after they don’t get timely clearance or CFIUS opens a formal investigation. According to the Treasury Department, of the 942 notices of transactions filed with CFIUS between 2009 and 2016, 107 were withdrawn during the review or after an investigation.  

 

In recent years, CFIUS has reviewed between 200 and 250 cases per year, according to Gruenspecht. But the number is likely to exceed 2,000 a year under the new CFIUS regime, he added.  

 

The tighter scrutiny has raised questions about whether the new law strikes the right balance between encouraging foreign investment and protecting national security.  

 

“I think the short answer is it’s too early to tell,” Gruenspecht said. However, he added, if the new law “becomes a recipe for taking foreign investment off the table for whole realms of new emerging technology, that crosses a lot of boundaries.” 

Concern in Europe

The U.S. is not the only country toughening screening measures for foreign investment. In December, the European Union proposed a new regulation for members to adopt “CFIUS-like” foreign investment review processes. 

Gruenspecht said that while foreign investors are not  “thrilled” about the additional CFIUS scrutiny, “a lot of Western nations are also saying, actually, ‘We totally understand the rational behind CFIUS and we’re looking to implement our own internal versions of CFIUS ourselves.’ ”

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Facebook Beefs Up Political Ad Rules Ahead of EU Election

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Facebook said Friday it is further tightening requirements for European Union political advertising, in its latest efforts to prevent foreign interference and increase transparency ahead of the bloc’s parliamentary elections.

However, some EU politicians criticized the social media giant, saying the measures will make pan-European online campaigning harder.

Under the new rules, people, parties and other groups buying political ads will have to confirm to Facebook that they are located in the same EU country as the Facebook users they are targeting.

That’s on top of a previously announced requirement for ad buyers to confirm their identities. It means advertisements aimed at voters across the EU’s 28 countries will have to register a person in each of those nations.

“It’s a disgrace that Facebook doesn’t see Europe as an entity and appears not to care about the consequences of undermining European democracy,” Guy Verhofstadt, leader of the parliament’s liberal ALDE group, said on Twitter. “Limiting political campaigns to one country is totally the opposite of what we want.”

The response underscores the balancing act for Silicon Valley tech companies as they face pressure from EU authorities to do more to prevent their platforms being used by outside groups, including Russia, to meddle in the May elections. Hundreds of millions of people are set to vote for more than 700 EU parliamentary lawmakers.

Facebook, which also owns Instagram and WhatsApp, said it will start blocking ads that don’t comply in mid-April.

The company will ask ad buyers to submit documents and use technical checks to verify their identity and location.

Facebook statement

“We recognize that some people can try and work around any system but we are confident this will be a real barrier for anyone thinking of using our ads to interfere in an election from outside of a country,” Richard Allen, Facebook’s vice president of global policy solutions, said in a blog post.

Facebook said earlier this year that EU political ads will carry “paid for by” disclaimers. Clicking the label will reveal more detailed information such as how much money was spent on the ad, how many people saw it, and their age, gender and location.

The ad transparency rules have already been rolled out in the U.S., Britain, Brazil, India, Ukraine and Israel. Facebook will expand them globally by the end of June.

Twitter and Google have introduced similar political ad requirements.

Facebook is also making improvements to a database that stores ads for seven years, including widening access so that election regulators and watchdog groups can analyze political or issue ads.

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Lyft Shares Soar on Nasdaq Debut After IPO

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Lyft Inc shares on Friday opened up 21.2 percent at $87.24 in its market debut on the Nasdaq after the company was valued at $24.3 billion in the first initial public offering (IPO) of a ride-hailing startup.

On Thursday, Lyft said it priced 32.5 million shares, slightly more that it was offering originally, at $72, the top of its already elevated $70-$72 per share target range for the IPO.

After a few minutes of trading, shares were up 18.6 percent at $85.42.

Instead of celebrating the first day of trading at the Nasdaq in New York, Lyft opted to mark the occasion at a defunct auto dealership in downtown Los Angeles.

A couple hundred people – Lyft staff, family and friends, stakeholders and Los Angeles Mayor Eric Garcetti – gathered before dawn for the kick-off event.

Lyft has recently bought the facility to turn it into a driver services center, the first of several it plans to open across the U.S. in the coming months, where drivers can get discounted services like help with taxes or charging electric vehicles.

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Bipartisan Support Seen for a US-Taiwan Free-trade Deal 

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Influential figures in Washington are calling for the establishment of a bilateral free-trade agreement with Taiwan, even as U.S. and Chinese officials move toward a resolution of their long-running trade dispute. 

 

“We have a lot of issues with Beijing, and a lot of opportunities with Taiwan,” said Edwin J. Feulner in an interview with VOA. Feulner is the founder and former president of the Heritage Foundation, an influential think tank in Washington known for its conservative views and ties with the Republican Party. 

 

Feulner thinks trade negotiations between Washington and Beijing will most likely conclude within 60 days, at which point a full-force push for a bilateral trade agreement with Taiwan could begin. Those talks would be “more or less independent of what’s going on with bilateral negotiations with Beijing,” he said. 

WATCH: Feulner: Taiwan Not Seen by Administration as ‘Bargaining Chip’

Feulner predicted “huge bipartisan support on Capitol Hill” for such an agreement. “Both Republican and Democrat, both House and Senate members, are overwhelmingly positive that a free China can exist, and can be there in the world community today,” he said.  

WATCH: Feulner: ‘We Intend to Strengthen Our Friends’ 

However, any such deal could be expected to anger authorities in Beijing, who see Taiwan as a renegade Chinese province and adamantly oppose any initiatives that treat the island as an independent country.   

 

The international community has seen how Beijing tries to make Taiwan pay for any inroads it makes toward international recognition, said Scott W. Harold, a senior political scientist at the RAND Corporation, a global policy research group. But Beijing’s problem, he said, “is that they’ve dialed the pain up so high, so often, that it’s hard to see what more they can do.”  

On Wednesday, Feulner invited Taiwan’s President Tsai Ing-wen to participate by Skype in a conference at the Heritage Foundation in Washington. Tsai, on a stopover in Hawaii after visiting three Indo-Pacific nations that still maintain diplomatic relations with Taiwan, told the audience her government was enthusiastic about the prospect of bilateral trade talks with the U.S. 

“If we can have a breakthrough in trade with the U.S., this will be very helpful in terms of encouraging many other trading partners to do the same,” she said, adding that a trade deal with the United States would reduce Taipei’s reliance on China “as they increase their political influence in Taiwan, primarily using economic actors.” 

Tsai expressed hope that talks with Washington will include discussion about Taiwan’s role in the global high-tech supply chain “amid concerns of technology theft and control over 5G networks” by Beijing. 

 

Two prominent members of the U.S. Congress joined Feulner in welcoming Tsai to the U.S. and expressed their support for a bilateral free-trade agreement. Sen. Cory Gardner of Colorado, a Republican and a member of the Foreign Relations Committee, called the pursuit of a bilateral free-trade agreement with Taiwan “imperative.” 

 

Common values

Rep. Ted Yoho of Florida, a member of the House Foreign Affairs Committee and the most senior Republican on its subcommittee on East Asia, the Pacific and Nonproliferation, told Tsai and the audience that “trade is important between our nations, but more important than that is our common belief in the values we hold, the democracies that we have together. That in itself is the thing that really binds us together.” 

 

Steve Yates, former U.S. government official and longtime observer of U.S.-Taiwan relations, told VOA that President Donald Trump has “unhesitatingly signed” a series of resolutions and bills in support of closer ties between Washington and Taipei. He said that signaled that it might be time “for the administration and Congress to be able to cross that bridge and get some results.” 

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US Housing Department Charges Facebook With Housing Discrimination

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Facebook was charged with discrimination by the U.S. Department of Housing and Urban Development because of its ad-targeting system.

HUD said Thursday Facebook is allowing advertisers to exclude people based on their neighborhood by drawing a red line around those neighborhoods on a map and giving advertisers the option of showing ads only to men or only to women.

The agency also claims Facebook allowed advertisers to exclude people that the social media company classified as parents; non-American-born; non-Christian; interested in accessibility; interested in Hispanic culture or a wide variety of other interests that closely align with the Fair Housing Act’s protected classes.

HUD, which is pursuing civil charges and potential monetary awards that could run into the millions, said Facebook’s ad platform is “encouraging, enabling, and causing housing discrimination” because it allows advertisers to exclude people who they don’t want to see their ads.

The claim from HUD comes less than a week after Facebook said it would overhaul its ad-targeting systems to prevent discrimination in housing , credit and employment ads as part of a legal settlement with a group that includes the American Civil Liberties Union, the National Fair Housing Alliance and others.

The technology at the heart of the clashes is what has helped turned Facebook into a goliath with annual revenue of close to $56 billion.

It can offer advertisers and groups the ability to direct messages with precision to exactly the crowd that they want to see it. The potential is as breathtaking as it is potentially destructive.

Facebook has taken fire for allowing groups to target groups of people identified as “Jew-haters” and Nazi sympathizers. There remains the fallout from the 2016 election, when, among other things, Facebook allowed fake Russian accounts to buy ads targeting U.S. users to enflame political divisions.

The company is wrestling with several government investigations in the U.S. and Europe over its data and privacy practices. A shakeup this month that ended with the departure of some of Facebook’s highest ranking executives raised questions about the company’s direction.

The departures came shortly after CEO Mark Zuckerberg laid out a new “privacy-focused” vision for social networking. He has promised to transform Facebook from a company known for devouring the personal information shared by its users to one that gives people more ways to communicate in truly private fashion, with their intimate thoughts and pictures shielded by encryption in ways that Facebook itself can’t read.

However, HUD Secretary Ben Carson said Thursday there is little difference between the potential for discrimination in Facebook’s technology, and discrimination that has taken place for years.

“Facebook is discriminating against people based upon who they are and where they live,” Carson said. “Using a computer to limit a person’s housing choices can be just as discriminatory as slamming a door in someone’s face.”

Facebook did not immediately respond to a request for comment early Thursday.

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Tossing Coins on Brexit: 2nd Referendum, General Election?

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Britons desperately wanting some clarity in the country’s interminable Brexit saga were disappointed Wednesday when lawmakers plunged the country’s proposed exit from the European Union, after half-a-century of membership, into further disarray, failing to find a majority for any way forward after a series of so-called indicative votes.

The hope had been a majority might emerge from the eight different options they voted on, which included staying in the EU, leaving with no withdrawal agreement, remaining in the bloc’s customs union and/or single market or holding a second Brexit referendum.

“Parliament Finally Has Its Say: No. No. No. No. No. No. No. No.” Britain’s Guardian newspaper announced on its front-page Thursday.

“In summary: the Commons has now overwhelmingly rejected every single type of Brexit, and no Brexit,” tweeted Michel Deacon, the Daily Telegraph’s parliamentary sketch-writer. The option of leaving without a deal was defeated by a huge margin. So, too, was a motion that would see Brexit cancelled altogether.

It wasn’t what the organizers of the indicative votes in the House of Commons had hoped would be the upshot. Backed by the opposition parties and pro-EU Conservative rebels they seized control of the parliamentary agenda from the government, the first time in 140 years that Downing Street hasn’t called the shots on what can be debated and when on the floor of the House of Commons.

“This is going well. Putting the Commons in charge was clearly a brilliant idea,” tweeted Andrew Neil, the arch-Brexiter presenter of a BBC politics show. The EU’s chief executive Jean-Claude Juncker said Britain’s intentions had become more mysterious than those of the mythological sphinxes guarding ancient tombs.

More confusion

To add to the confusion in London, just before the indicative voting, an  exhausted Prime Minister Theresa May told her Conservative lawmakers she would relinquish the party leadership and resign as prime minister, but only if her contentious Brexit withdrawal agreement, which parliament has twice rejected, is passed.

May’s announcement was a last-ditch bid to persuade Conservative Brexiters to back her withdrawal agreement, a deal they disapprove of because it would keep Britain closely aligned with the European Union and obedient to its rules while a longer-term trade relationship is negotiated.

A hardcore of Conservative Eurosceptics and ten lawmakers from Northern Ireland’s Democratic Unionist Party, who May has to rely on because her government is a minority one, have adamantly refused to back her deal. They say the plan poses a risk to the integrity of the union of the United Kingdom. The DUP believes if it took effect, it would cause trade differences between Northern Ireland and Great Britain, and create in effect a “border down the Irish Sea.”

There were no signs Thursday that May will be able to persuade enough holdouts to vote for her deal, if it is put before the Commons for a third time, leaving Britain on course to crash out of the EU without a deal on April 12, unless the British government requests, for the second time, a Brexit postponement.

EU negotiators have indicated they might be open to another delay, but only if it is a lengthy one of a year or more.

It remains unclear how the political deadlock in London can be broken. The idea of leaving without a transition deal has strong opposition in the Commons and would likely be blocked by a majority of lawmakers.

Frustration on EU side

EU negotiators, out of exasperation, could decide to raise the stakes and decline another Brexit postponement, hoping to force the Commons to stop Brexit altogether, say some analysts. But it is unlikely they would risk such a high stakes gamble, fearing that might push Britain into crashing out by accident as much as by design.

European Council President, Donald Tusk, said last week in Brussels that the European Union will work with Britain for as long as it takes and on Wednesday he urged European lawmakers to be open to a long delay in Britain’s departure.

That leaves Britain trapped — paralyzed by a deadlocked House of Commons, itself a reflection of a country split down the middle over staying a member of the EU or quitting. With all avenues seemingly leading to dead-ends, there is more talk now in the British parliament of the need to hold an general election, hoping that returns a parliament that is not so undecided.

Behind-the-scenes Cabinet ministers and Conservative party officials are war-gaming calling an election three years ahead of schedule. David Davies, a pro-Brexit Conservative MP who quit as Brexit minister, says “a general election is a lot more likely now.” He added: “I don’t say it’s going to happen, but clearly if a government can’t get through on the one issue which we were really elected to deal with at the last election it puts us all in a very difficult situation.”

The problem in calling a snap election is the British public doesn’t want another one so soon after the Conservatives called another early poll two years ago, according to opinion surveys, with just 12 percent backing the idea.

The other problem for the Conservatives is that they would be fighting an election with a leader who has announced she intends to step down soon and heading a party that’s even more deeply and rancorously divided than the main opposition Labour party.

In the division lobbies on Wednesday some Conservative lawmakers on different sides of the Brexit question were spotted cursing each other and one clash prompted the intervention of colleagues, who feared a brawl might break out.

Commons in charge

Organizers of Wednesday’s indicative voting are placing some hopes that the Commons can still break the deadlock. They say clarity could be reached on Monday when lawmakers are due for another session of indicative voting, this time on the options that attracted the most support.

Labour’s Stephen Doughty said they never expected the votes on Wednesday to reveal a majority for one option. The whole idea was to narrow down the alternatives that have the most support and for parliament then to reconsider.

The two closest votes Wednesday were for staying in the EU’s customs union and another for a second referendum confirming any Brexit departure. Both attracted more votes than May’s deal has got the two occasions it was voted on in parliament. Campaigners for a second referendum appear buoyed.

They believe Britons have shifted their attitudes on Brexit since the 2016 referendum, pointing to a new polling study by veteran pollster John Curtice, which indicates voters are becoming increasingly doubtful about Brexit. The study suggests two and half years after the plebiscite, leaving the European Union may not now reflect majority thinking.

 

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British Report Finds Technical Risks in Huawei Network Gear

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British cybersecurity inspectors have found significant technical issues in Chinese telecom supplier Huawei’s software that they say pose risks for the country’s telecom companies.

 

The annual report Thursday said there is only “limited assurance” that long-term national security risks from Huawei’s involvement in critical British telecom networks can be adequately managed.

 

The report adds pressure on Huawei, which is at the center of a geopolitical battle between the U.S. and China.

 

The U.S. government wants its European allies to ban the company from next-generation mobile networks set to roll out in coming years over fears Huawei gear could be used for cyberespionage.

 

The report noted that Britain’s cybersecurity authorities did not believe the defects were a result of “Chinese state interference.”

 

 

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Iceland’s WOW Air budget Carrier Collapses, Cancels all Flights

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Iceland’s budget carrier WOW Air said it had ceased operations and cancelled all flights on Thursday, potentially stranding thousands of passengers.

The collapse of the troubled airline, which transports more than a third of those traveling to Iceland, comes after buyout talks with rival Icelandair collapsed earlier this week.

“All WOW Air flights have been cancelled. Passengers are advised to check available flights with other airlines,” the carrier said in a statement.

“Some airlines may offer flights at a reduced rate, so-called rescue fares, in light of the circumstances. Information on those airlines will be published, when it becomes available.”

WOW Air, founded in 2011, exploited Iceland’s location in the middle of the North Atlantic to offer a low-cost service between Europe and North America as well as tapping into a tourist boom to the volcanic island.

However it had flown into financial trouble in recent years due to heightened competition and rising fuel prices, and had been searching for an investor for months.

On Monday WOW Air said it was in talks to restructure its debt with its creditors after Icelandair ended brief negotiations over buying a stake in the no-frills airline.

WOW Air was left needing $42 million to save the company, according to the Frettabladid newspaper.

The privately-owned airline has undergone major restructuring after posting a pre-tax loss of almost $42 million for the first nine months of 2018.

It has reduced its fleet from 20 to 11 aircraft, eliminating several destinations, including those to the US, and cutting 111 full-time jobs.

A report by a governmental work group has warned that a WOW Air bankruptcy would lead to a drop in Iceland’s gross domestic product, a drop in the value of the krona and rising inflation.

 

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Facebook, Instagram Ban White Nationalist Speech

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Facebook has announced it is banning praise, support, and representation of white nationalism and separatism on its platform and on Instagram, which it also owns.

The company made the announcement Wednesday in a blog post, saying, “It’s clear that these concepts are deeply linked to organized hate groups and have no place on our services.”

The post says Facebook has long banned hateful speech based on race, ethnicity and religion, though it had permitted expressions of white nationalism and separatism because it seemed separate from white supremacy.

“But over the past three months,” the post read, “our conversations with members of civil society and academics who are experts in race relations around the world … have confirmed that white nationalism and separatism cannot be meaningfully separated from white supremacy and organized hate groups.”

“Going forward,” it continued, “while people will still be able to demonstrate pride in their ethnic heritage, we will not tolerate praise or support for white nationalism and separatism.”

It said people searching for terms associated with white supremacy will be directed to information about the group “Life After Hate,” which is an organization that helps violent extremists leave their hate groups through intervention, education, support groups and outreach.

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Artificial Intelligence Pioneers Win Tech’s ‘Nobel Prize’

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Computers have become so smart during the past 20 years that people don’t think twice about chatting with digital assistants like Alexa and Siri or seeing their friends automatically tagged in Facebook pictures.

But making those quantum leaps from science fiction to reality required hard work from computer scientists like Yoshua Bengio, Geoffrey Hinton and Yann LeCun. The trio tapped into their own brainpower to make it possible for machines to learn like humans, a breakthrough now commonly known as “artificial intelligence,” or AI.

Their insights and persistence were rewarded Wednesday with the Turing Award, an honor that has become known as technology industry’s version of the Nobel Prize. It comes with a $1 million prize funded by Google, a company where AI has become part of its DNA.

The award marks the latest recognition of the instrumental role that artificial intelligence will likely play in redefining the relationship between humanity and technology in the decades ahead.

“Artificial intelligence is now one of the fastest-growing areas in all of science and one of the most talked-about topics in society,” said Cherri Pancake, president of the Association for Computing Machinery, the group behind the Turing Award.

Although they have known each other for than 30 years, Bengio, Hinton and LeCun have mostly worked separately on technology known as neural networks. These are the electronic engines that power tasks such as facial and speech recognition, areas where computers have made enormous strides over the past decade. Such neural networks also are a critical component of robotic systems that are automating a wide range of other human activity, including driving.

Their belief in the power of neural networks was once mocked by their peers, Hinton said. No more. He now works at Google as a vice president and senior fellow while LeCun is chief AI scientist at Facebook. Bengio remains immersed in academia as a University of Montreal professor in addition to serving as scientific director at the Artificial Intelligence Institute in Quebec.

“For a long time, people thought what the three of us were doing was nonsense,” Hinton said in an interview with The Associated Press. “They thought we were very misguided and what we were doing was a very surprising thing for apparently intelligent people to waste their time on. My message to young researchers is, don’t be put off if everyone tells you what are doing is silly.”

Now, some people are worried that the results of the researchers’ efforts might spiral out of control.

While the AI revolution is raising hopes that computers will make most people’s lives more convenient and enjoyable, it’s also stoking fears that humanity eventually will be living at the mercy of machines.

Bengio, Hinton and LeCun share some of those concerns — especially the doomsday scenarios that envision AI technology developed into weapons systems that wipe out humanity.

But they are far more optimistic about the other prospects of AI — empowering computers to deliver more accurate warnings about floods and earthquakes, for instance, or detecting health risks, such as cancer and heart attacks, far earlier than human doctors.

“One thing is very clear, the techniques that we developed can be used for an enormous amount of good affecting hundreds of millions of people,” Hinton said.

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India Conducts First Successful Test of Anti-Satellite Weapon

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India says it has successfully tested a new anti-satellite missile, marking another major development in its budding space program.

Prime Minister Narendra Modi announced Wednesday in a nationally televised address that scientists had destroyed a satellite orbiting about 300 kilometers above Earth’s atmosphere in a mission that lasted only three minutes. The prime minister said the country has now “registered its name as a space power” alongside the United States, China and Russia, the only other nations to achieve such a feat.

The United States and the former Soviet Union conducted anti-satellite tests from the early days of the space age, with the U.S. successfully shooting down a satellite in 1985. China achieved the feat in 2007.

Modi insisted that Wednesday’s test did not violate any international treaties, and was conducted purely in the interest of national security.

The test was conducted as Modi leads his Hindu-nationalist Bharatiya Janata Party into parliamentary elections on April 11 in his quest for a second term. It is also the latest demonstration of India’s military capabilities since 40 Indian soldiers were killed in February in a suicide bombing attack in the disputed region of Kashmir.

New Delhi retaliated with airstrikes on a suspected militant camp in Pakistan, its bitter rival and nuclear-armed neighbor.

An Indian fighter jet was shot down and its pilot briefly held captive after the two sides engaged in a subsequent aerial dogfight over Kashmir.

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Updating Software, Shaping History: New Imperial Era Name Looms Large in Japan

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In Japan, every emperor’s era has its own name – appearing in places such as coins, official paperwork and newspapers – and with abdication coming at the end of April, speculation is swirling about what the new “gengo” will be.

Although the Western calendar has become more widespread in Japan, many people here count years in terms of gengo or use the two systems interchangeably. Emperor Akihito’s era, which began in 1989, is Heisei, making 2019 Heisei 31.

The new era name is one of biggest changes — practically and psychologically – – for Japan at the start of Crown Prince Naruhito’s reign on May 1. On April 30, Akihito will abdicate, ending an era in the minds of many Japanese.

The new name is so secret that senior government officials involved in the decision must surrender their cell phones and stay sequestered until it is broadcast, media reports say.

City offices and government agencies, which mostly use gengo in their computer systems and paperwork, have been preparing for months to avoid glitches.

To make the transition easier, authorities will announce the new gengo – -two Chinese characters the cabinet chooses from a short list proposed by scholars — a month early, on April 1.

“We’ve been working on this change for about a year,” said Tsukasa Shizume, an official in the Tokyo suburb of Mitaka, where the era name will be changed on 55 kinds of paperwork in 20 administrative sections. The month-long lead time should be sufficient, he said.

Fujitsu and NEC Corp. have been helping customers ensure the switch doesn’t crash their systems.

Programs have been designed to make it easy to change the gengo, said Shunichi Ueda, an NEC official.

“If people want to test their computer systems, they can use a trial gengo and see if it works,” he said.

Most major companies use the Western calendar in their computer systems, so it won’t affect them as much, although smaller companies might run into some problems, he said.

In Tokyo’s Minato ward, officials will cross out Heisei on thousands of documents and stamp the new gengo above it.

National mood

The era name is more than just a way of counting years for many Japanese.

It’s a word that captures the national mood of a period, similar to the way “the ’60s” evokes particular feelings or images, or how historians refer to Britain’s “Victorian” or “Edwardian” eras, tying the politics and culture of a period to a monarch.

“It’s a way of dividing history,” said Jun Iijima, a 31-year-old lawyer who was born the last year of Showa, the era of Akihito’s father, Emperor Hirohito. “If you were just counting years, the Western system might be sufficient. But gengo gives a certain meaning to a historical period.”

The 64-year Showa era, which lasted until 1989, has generally come to be identified with Japan’s recovery and rising global prominence in the decades after World War II.

The imperial era name is also a form of “soft nationalism,” said Ken Ruoff, director of the Center for Japanese Studies at Portland State University.

“It’s one of these constant low-level reminders that Japan counts years differently and Japan has a monarchy,” he said.

The gengo characters are carefully chosen with an aspirational meaning. Heisei, which means “achieving peace,” began on Jan. 8, 1989, amid high hopes that Japan would play a greater role in global affairs after decades of robust economic growth.

Soon afterward, Japan’s economic bubble popped, ushering in a long period of stagnation and deflation. The rise of China and South Korea diminished Japan’s international prominence, and a series of disasters – including the 1995 Kobe earthquake and 2011 earthquake, tsunami and nuclear crises – has marred Heisei’s image.

Fading use

In daily life, usage of the gengo system is slowly declining as Japan integrates into the global economy.

A recent Mainichi newspaper survey showed that 34 percent of people said they used mostly gengo, 34 percent said they used both about the same, and 25 percent mainly the Western calendar.

In 1975, 82 percent said mostly gengo. Both calendars use Western months.

Japanese drivers licenses have started to print both dates, instead of just gengo.

Iijima, the lawyer, says legal paperwork uses the era name because that’s what the court system uses. But in daily life he uses both. For global events, he thinks in terms of the Western calendar – like the Sept. 11, 2001, terrorist attacks – and uses both dating systems for domestic events.

He is indifferent about what characters will be chosen for the next gengo.

But remembering that his grandparents suffered during World War II, he hopes that it will be an era without war, that Japan will keep up economically with China and India and that it will grow into a “mature,” more tolerant place.

“I hope Japan can become a society where minorities can live more easily,” he said.

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Public Concern Over Privacy Pushes Tech Industry to Change

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Mounting public concern over data privacy is pushing tech giants to change their ways, industry experts said on Tuesday, a day after Apple unveiled a series of new products, stressing their privacy-friendly features.

The world’s second-most valuable technology company will now offer a credit card, a news service called Apple News+ and a TV service with original programming, all designed to keep users’ information private and secure, it said on Monday.

Apple’s announcements come on the heels of user privacy scandals that have rocked tech companies over the last several years.

Such clarity is welcome in a digital environment that lacks transparency and where people are sometimes unaware of what happens to their data, said Hielke Hijmans, a law expert at the Brussels Privacy Hub, a Belgian research center.

“This empowers the users and helps to give them a genuine choice,” he said.

Earlier this month, rivals like Google and Facebook said they were making changes to boost user privacy.

Facebook founder Mark Zuckerberg said the company plans to encrypt more of the conversations happening on its messaging services, which could limit Facebook’s ability to parse those conversations.

Google said it is working on privacy enhancements for the Android operating system that powers most of the world’s mobile phones, such as locking down access to phone cameras and microphones.

At the launch event in California, Apple executives said the company will not allow advertisers to track what users read on its news service and it will not itself have that data.

Consumer data from its credit card will not be shared or sold to third parties for marketing, and the company will not know where a purchase was made, what was bought or how much it cost, Apple said.

Yet, Apple’s privacy moves aren’t likely to be mimicked by everyone, said Jan Penfrat, a senior policy advisor at advocacy group European Digital Rights (EDRi).

Assembling profiles of consumers for the purpose of targeting advertisements is at the heart of how Google and Facebook made money, he said.

Unlike those companies, Apple’s business model is not largely dependent on advertising.

“Apple is rather the exception, not the norm,” Penfrat added.

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One in Three Fear Losing Homes in West and Central Africa, Poll Finds

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Nearly one in three people living in West and Central Africa fear losing their homes and land in the next five years, according to a survey of 33 countries, making it the region where people feel most insecure about their property.

More than two in five respondents from Burkina Faso and Liberia worry their home could be taken away from them, revealed Prindex, a global property rights index which gauges citizens’ views.

In West Africa, “a history of governments and investors seizing land for large projects has made people more insecure,” said Malcolm Childress, executive director of the Global Land Alliance, a Washington-based think tank that compiles the index.

Insecurity can lead to people struggling to plan for their futures, holding back entire economies, Childress said.

“In countries like Rwanda, however, which are mapping and registering customary land, that uncertainty is much lower,” he told the Thomson Reuters Foundation, adding that only 8 percent of the country’s respondents feared losing their homes.

In Southeast Asia and Latin America, which Childress said had strong institutions documenting land, only 21 percent and 19 percent of people, respectively, reported feeling insecure about their property.

The survey, conducted by U.S. polling firm Gallup and launched in Washington, D.C., at a World Bank conference on Tuesday, is the largest ever effort documenting how secure people feel about their homes and land at a global level.

A lack of formal documentation and poor implementation of land laws threaten tenure in many countries, experts say, with more than 5 billion people lacking proof of ownership, according to the Lima-based Institute for Liberty and Democracy.

Survey respondents cited being asked by their landlord to leave the property as well as family disagreements as the main reasons for feeling insecure.

The index also found that 12 percent more women than men felt they might lose their property in the event of divorce or death of a spouse.

That gap shows “there is a long way to go in meeting the aspiration of equal economic rights for women worldwide,” said Anna Locke from the Overseas Development Institute, a British think tank that is involved in the index.

The survey for the first time sampled respondents in Britain, where 11 percent of people feared losing their home, mainly due to a lack of money or other resources.

More than 50,000 people were questioned about ownership or tenure in 33 countries most of them from Africa, Latin America and Asia. Over the next year, the poll will be extended to 140 countries.

Prindex is an initiative of the Omidyar Network — with which the Thomson Reuters Foundation has a partnership on land rights coverage — and the U.K.’s Department for International Development.

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Land Lost, Families Uprooted as Myanmar Pushes Industrial Zones

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Than Ei lived in the Thilawa area near Yangon for years, growing vegetables in her backyard and sending her two children to school with money from her husband’s construction job.

Then came the government order to move. Than Ei’s family was among 68 households relocated in 2013 to make way for the Thilawa Special Economic Zone (SEZ), the first such industrial area in Myanmar, about 23km (15 miles) southeast of Yangon.

Authorities said each family would get a home a few miles away, or a plot of land and money to build a house, as well as jobs in the new factories, with good wages.

But six years on, Than Ei and others who moved say their incomes are lower than before, and they have only limited access to services. Many families sold their homes and left the area after they ran out of money, Than Ei said.

“There is no land to grow vegetables or to keep chickens, and we are not close to transport or the market anymore,” Than Ei said outside her one-room home in Myaing Thar Yar village.

“My husband only got a job as a security guard two years after (the move). We had to take out a loan until then, which we are still paying off.”

For developing nations like Myanmar – which emerged from decades of economic isolation in 2011 when the military stepped back from direct control – SEZs are seen as a way to attract much-needed foreign investment and create jobs.

Authorities say Thilawa SEZ is being built according to international environmental and social safeguards, which includes getting the consent of residents and offering adequate compensation.

But for those whose lives have been uprooted by the country’s economic ambitions, the reality is different, said Mike Griffiths, a researcher at the Myanmar Social Policy and Poverty Research Group, a think tank based in Yangon.

“They not only have lower levels of income, but are more likely to have higher expenditure, higher rates of debt and lower employment rates,” he wrote in a report last year on the relocated households. “The picture is of extreme vulnerability.”

Risky Model

The model for economic growth that Myanmar and other countries in the region hope to emulate is that of China, which in the 1980s set up about half a dozen major SEZs to boost its market reforms.

Experts say SEZs have contributed significantly to China’s economic growth, with the World Bank estimating in 2015 that they accounted for nearly a quarter of the country’s GDP.

Spurred by China’s example, governments from sub-Saharan Africa to southeast Asia have adopted SEZs, but analysts say they have a mixed record of success.

“The model has passed its use-by-date, and officials have been slow to catch on,” said Charlie Thame, a professor of political science at Bangkok’s Thammasat University.

“Even from an economic point of view they are fraught with risk, mostly borne by host states.”

In poorer nations, SEZs “overwhelmingly fail to provide decent jobs or generate beneficial effects to local economies,” he said, and domestic legislation and international investment frameworks largely fail to protect those affected.

No Consultation

When completed, the Thilawa SEZ will cover some 2,400 hectares (9 sq. miles) of land. Dozens of manufacturers, largely making goods for export, are already operating there.

Thilawa is the only operational SEZ in the country, with the Dawei SEZ in the southern region of Tanintharyi on hold after some initial construction. A third SEZ is planned, with Chinese investment, in Kyauk Pyu in Rakhine state.

The site in Thilawa had been earmarked for industrial use under the junta government in 1996, but the original plans fell through.

When authorities announced the start of development for the SEZ six years ago, they said since the land already belonged to the government, villagers living on it were only eligible to be compensated for their crops.

None of the residents made to move were consulted on the economic or social impacts of the development, said Mya Hlaing, a member of the Thilawa Social Development Group, which was set up to represent the villagers.

“We were also promised training and jobs, but very few have got jobs – and even then, only as cleaners and security guards,” he told the Thomson Reuters Foundation.

A spokesman for Myanmar Japan Thilawa Development, which operates Zone 1 of the SEZ, said the land acquisition was carried out by government authorities, and that those affected had been offered several job opportunities.

Myanmar authorities did not respond to calls and e-mails seeking comment.

Backlash

About 600km away in southern Myanmar, development of the Dawei SEZ has been suspended since 2013, after it sparked community protests and hit funding difficulties.

The project is a joint venture of the Thai and Myanmar governments, and includes a 140-km road to the Thai border, a port, a power plant, a reservoir and an industrial estate.

Most residents affected by the initial phase of construction refused to move into the nearly 500 homes that had been built a couple of miles away.

“We were not told what types of factories would be built or what their impact would be,” said Mar Lar, who sold some of her land in the southern Htein Gyi village but still lives in her own home.

Residents in Dawei fear construction on the stalled project will resume soon, even as a backlash against SEZs is growing.

Protests broke out in Vietnam last year over planned new SEZs.

In India, the Supreme Court has asked why land acquired for SEZs is not being used, and the Myanmar government has scaled back its Kyauk Pyu project with China over fears of a debt trap.

But back in Thilawa, the second phase of construction is about to kick off and will see the relocation of more than 800 families, said Aye Khaing Win, a community leader.

“The government says the SEZ has done many good things, but we have lost our land. We have not benefited,” he said.

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US Labor Unions Say USMCA Doesn’t Go Far Enough for Workers

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U.S. labor officials on Tuesday pressed lawmakers to strengthen enforcement of the provisions of the United States-Mexico-Canada Agreement (USMCA) intended to protect workers, the latest sign that the trade deal could face hurdles to passage in the Democrat-led House of Representatives.

Renegotiation of the North American Free Trade Agreement (NAFTA) was one of President Donald Trump’s campaign promises and part of his broader push for better terms of trade for the United States. He has said that bad deals have cost millions of jobs.

Representatives from some of the largest and most influential unions in the United States told lawmakers on Tuesday that the reworked pact does not go far enough to ensure improvement of wages and working conditions, especially for Mexican workers.

“All the NAFTA renegotiation efforts in the world will not create U.S. jobs, raise U.S. wages or reduce the U.S. trade deficit if the new rules do not include clear, strong and effective labor rules that require Mexico to abandon its low wage policy,” Celeste Drake of the American Federation of Labor and Congress of Industrial Organizations said at a House Ways and Means subcommittee hearing.

In late 2018, the leaders of the United States, Mexico and Canada signed the deal to replace NAFTA, but it has yet to be reviewed and ratified by Congress. Trade among the three countries totals more than $1 trillion.

Democrats, who took control of the House of Representatives in January, have traditionally been skeptical of free trade agreements and sympathetic to labor groups. Their support is essential to USMCA’s passage.

USMCA requires its three signatories to maintain labor laws in line with international standards, and to enforce them. But critics have called the agreement’s enforcement mechanism insufficient, saying it will still allow weak unions and resulting low wages in Mexico, while failing to stanch the flight of U.S. factories to lower-cost Mexico.

NAFTA, launched in 1994, put labor provisions in an unenforceable addendum to the agreement, allowing Mexican wages to stagnate despite a flood of factory investment from U.S. companies.

“The (USMCA) labor chapter is an improvement. The problem is the enforceability mechanism,” said Shane Larson, a director with the Communications Workers of America, advocating for reopening the agreement.

Autoworkers, too, are concerned about the new agreement, despite provisions aimed at requiring more vehicle value content produced in North America and in high-wage areas in the United States and Canada.

USMCA “takes some positive steps but doesn’t measure up to being able to make more good-paying jobs now and going forward,” said Josh Nassar, legislative director of the United Auto Workers union.

The imposition of NAFTA led to decades of lost jobs for autoworkers, who watched U.S. factories close as manufacturers moved production to Mexico.

House Democrats have greeted USMCA coolly, telling U.S. Trade Representative Robert Lighthizer earlier this month about their concerns about labor enforcement and provisions that could lock in higher drug prices.

“This agreement is a continuation of the assault on the American middle class,” Brian Higgins, a Democratic representative from New York, said on Tuesday at the hearing.

The Trump administration is lobbying to persuade Congress to ratify USMCA this year. Trump visited Capitol Hill on Tuesday to meet with Senate Republicans, and discussed the trade pact with House Republicans later in the afternoon.

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Facebook Blocks More Accounts Over Influence Campaigns

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Facebook said Tuesday it shut down more than 2,600 fake accounts linked to Iran, Russia, Macedonia and Kosovo and aiming to influence political sentiment in various parts of the world.

It was the latest effort by the leading social network to shut down “inauthentic” accounts on Facebook and Instagram seeking to influence politics in the U.S. and elsewhere.

Facebook said the accounts blocked in the four countries were not necessarily centrally coordinated but “used similar tactics by creating networks of accounts to mislead others about who they were and what they were doing,” said Nathaniel Gleicher, head of cybersecurity policy for the company.

“We are constantly working to detect and stop this type of activity because we don’t want our services to be used to manipulate people,” Gleicher said in a blog post.

“In each case, the people behind this activity coordinated with one another and used fake accounts to misrepresent themselves, and that was the basis for our action.”

Gleicher said Facebook — which has made similar moves in recent months — was making progress in rooting out fake accounts but noted that “it’s an ongoing challenge because the people responsible are determined and well-funded. We constantly have to improve to stay ahead.”

Links to Iran

In the latest action, Facebook said it removed 513 pages, groups and accounts tied to Iran and operating in Egypt, India, Indonesia, Israel, Italy, Kashmir, Kazakhstan and various areas of the Middle East and North Africa.

Similar to other manipulation campaigns, the users posed as locals and “made-up media entities” and posted news stories about topics including sanctions against Iran, tensions between India and Pakistan, issues in the Middle East and the crisis in Venezuela.

“Although the people behind this activity attempted to conceal their identities, our review linked these accounts to Iran,” Gleicher said.

Links to Russia, Macedonia and Kosovo

Another 1,907 accounts linked to Russia were also blocked. These sought to influence sentiment related to Ukrainian news and politics, the situation in Crimea and corruption.

Facebook said 212 Facebook accounts originating in Macedonia and Kosovo were shut down for misrepresenting themselves as users in Australia, the United States and Britain and sharing content about politics, astrology, celebrities and beauty tips.

Other issues

Earlier this month, Facebook said it blocked online manipulation efforts in Britain and Romania from users seeking to spread hate speech and divisive comments.

In January, Facebook took down hundreds of accounts from Iran that were part of a vast manipulation campaign operating in more than 20 countries.

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The Good, Bad and the Unknown of Apple’s New Services

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It took a while, but finally — and with the carefully curated help of Oprah, Big Bird and Goldman Sachs — Apple has at last unveiled a new streaming TV service, its own branded credit card and a news subscription product.

The moves have been largely expected and so far don’t appear to drastically alter the competitive landscape the way Apple has done with previous products such as the iPhone and the iPad.

Still, the announcements represent an important step for the company as it seeks to diversify how it makes money amid declining sales of the iPhone, even if by themselves they are unlikely to turn Apple’s big ship either way. But it’s a way to keep fans sticking with Apple even when they aren’t buying a new iPhone every year.

Monday’s announcements lacked some key details, such as pricing of the TV service. Here’s a rundown on what Apple unveiled — what’s good, what’s not so good and what we still don’t know.

APPLE TV PLUS

The good: Oprah, Jason Momoa, Big Bird, Steven Spielberg and a host of other stars have lent themselves to original Apple shows that range from documentaries to science fiction, drama and preschool television programming. The focus on “quality storytelling” is consistent with Apple’s image and analysts say is likely to produce some hit shows.

The bad: Even so, “it will lack the full range and diversity of content available through Netflix, Amazon and others, and that is set to limit its appeal,” said Martin Garner, an analyst at CCS Insight. Apple also joins a crowded market and it’s not clear how many more monthly subscriptions people have the money and the bandwidth for.

The unknown: Apple hasn’t said how much it’s going to cost.

APPLE NEWS PLUS

The good: The price, $10 per month, looks like a good deal compared to separate subscriptions for newspapers and magazines (Apple will include more than 300 of the latter, including The New Yorker and Sports Illustrated). Apple is touting “richly designed articles” that let people read publications tailored to Apple devices in all their glory. Apple has also included privacy protections, and says it will collect data about what people read in a way that it won’t know who read what — just how much total time is spent on different articles.

The bad: While The Los Angeles Times and the Wall Street Journal have signed on, other big-name news publishers, such as The New York Times, have not. Nor have, in fact, most other major U.S. newspapers.

The unknown: It’s not entirely clear how much news you’re getting for your money. The Journal, famous for its business and industry coverage and commanding nearly $40 a month, will make “specially curated” general-interest news available for Apple customers, for example. Other stories will still be there — but Apple says users will have to search for the articles themselves.

APPLE CARD

The good: Security and privacy, two areas Apple prides itself on, are a clear focus. The physical version of the card has no numbers, and the digital version lives in your Apple Wallet on your phone, where it’s protected by Face ID or Touch ID so even if someone steals your phone they won’t be able to use the card to buy things. Apple says it won’t get information on what you buy with the card or where or for how much. There are no late fees.

The bad: The rewards (2 percent cash back for all purchases using the digital version of the card, 1 percent using the physical version and 3 percent cash back at Apple stores) are nothing to write home about. The card is meant for Apple users, so if you aren’t, it’s probably not for you.

The unknown: What sort of credit score you need to get approved, as well as exact interest rates.

APPLE ARCADE

The good: Apple’s new game subscription service, which will launch this fall, will be free of ads and in-app purchases, which can quickly add up and have become common in mobile games. Apple promises more than 100 games, and they will be exclusive to the service, so there will be plenty of fresh adventures.

The bad: The service will only be available on Apple devices, including iPhones, iPads, Macs and Apple TVs. That could be frustrating for those who don’t own Apple products.

Unknown: Apple said all games would be available with one subscription, but did not say how much it would cost or when exactly the service will launch. It has partnered with a few well-known game creators, including Hironobu Sakaguchi of “Final Fantasy” fame, but it’s unclear how well all the new games will work or how fun they’ll be to play.

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Grassroots Tech Group Takes Startup Approach to Fight Brexit

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Software engineers, entrepreneurs and product managers huddle in small groups, brainstorming ideas and scrawling thoughts onto Post-it Notes on a wall. The project leader exhorts them to “think of products around these themes.”

It’s not a startup but a grassroots band of volunteers from London’s tech industry developing websites to prevent Brexit, Britain’s departure from the European Union that has fallen into complete disarray. They hope to put public pressure on politicians to give people a second vote. While the group is small, their engagement in politics underscores the concerns among businesses and entrepreneurs who stand to suffer from tariffs and border checks.

“I’ve never been a political person before, really,” said German-born venture capitalist Andreas Cser. A longtime London resident, he joined the group, Tech For U.K., after he found Brexit made Britain less welcoming for foreigners and exposed the “incompetence and brazen political hypocrisy” of its political leaders.

Cser, whose firm, Automat Ventures, invests in companies that use artificial intelligence, helped connect Tech For U.K. to computer scientists. “What I know about is how companies develop tech products,” and how they scale them up, he said.

Since its launch last year, Tech For U.K. has rolled out a dozen mobile-friendly websites. They help users automatically send anti-Brexit messages by postcard or voicemail to their politicians or spotlight the EU’s benefits to Britain. Volunteers donate their time and the group also gets limited funding from anti-Brexit campaign group Best For Britain, which vets the digital tools before they go live. The latest, launched on the weekend, lets Facebook and Instagram users add an augmented reality “Stop Brexit” button to photos and videos.

Britain was due to depart the EU on Friday but the process has been delayed after Parliament rejected the Brexit deal Prime Minister Theresa May negotiated with the EU. The House of Commons took control late Monday of the stalled process and plans to vote this week on alternatives to May’s deal.

One of the group’s goals is to rally support for a second referendum on Brexit. There’s no majority for that in Parliament, but a big march in London on Saturday to demand one suggests momentum is growing. A retired academic’s online petition went viral last week, receiving over 5.6 million signatures in favor of revoking Brexit altogether.

With many outcomes to Brexit still open, Tech for U.K.’s aim is to persuade those on the fence about the benefits of EU membership and give people who are opposed to leaving a way to express their views.

“At the end of the day, it’s for those who might change their mind,” said Kiyana Katebi, founder of an IT consultancy.

Katebi helped develop the group’s first site, MyEU.uk , which shows people EU-funded projects in their neighborhood based on their post code. The site had around 100,000 visitors in the first two days after its September launch.

Another site, Finalsay.app, let British residents leave a voice message for their parliamentary representative with their “final say” against Brexit. Hey MP! lets people automatically send postcards to their lawmaker asking for another vote.

It Costs EU reveals the portion of income tax going to the bloc while EU Worth It shows the amount of EU funding British districts receive, to counter claims Brits pay too much to the EU.

Can I Move To Barcelona simply explains how Brits can still move to the Spanish city, or dozens of other EU destinations, under the bloc’s freedom of movement rules — a benefit that likely ends across the British border if Brexit happens.

The group, while small, says they’ve have had an impact on sentiment but didn’t provide any numbers on site traffic or messages sent.

“The point is to ask people the question: Do they really want this?” and then show them how Brexit will affect them, said Mike Butcher, Tech For U.K.’s co-founder.

About 200-300 people have joined the group, Butcher said. They work on the projects on evenings and weekends and collaborate remotely.

The group is using technology to counter what they see as misinformation surrounding Britain’s EU membership that may have contributed to the 2016 referendum vote result to leave.

Since the referendum, Brexit opponents have raised concerns about the influence of Russian meddling and the role of social-media advertising using data harvested from Facebook.

“One of the reasons that we lost in 2016 was that (the pro-Brexit camp’s) digital game was far superior to the people fighting to stay in. We’re playing catch-up,” said Eloise Todd, CEO of Best For Britain.

On the other side of the argument, pro-Brexit groups flourish online, with names such as Get Britain Out, Stand Up 4 Brexit and Leavers of Britain using social media to promote their views.

More than 1,100 U.K.-based tech executives signed Tech For U.K.’s open letter last year to May, warning that Brexit risks making it harder to hire tech talent and crimping funding from Europe. But for many volunteers, Brexit’s impact on the country transcends those concerns.

At one of the group’s recent weekly evening meetups, in a tech company’s basement meeting room in Central London, the crowd of about 20 split into three groups.

They ran through ideas and themes. Would Brexit make it harder for European musicians to play at Britain’s Glastonbury music festival? Could they build a site to get people in Ireland to write letters to relatives in Britain? Would microbreweries still be able to get imported hops?

“We just need to think about various members of the public, what might tick their buttons,” startup founder James Tabor told his group. “This is about getting into the minds of the general public.”

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White House, Business Groups Make Push on Trade Pact

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The White House and business groups are stepping up efforts to win congressional approval for the U.S.-Mexico-Canada trade accord. But prospects are uncertain given that Republicans are at odds with some aspects of the plan and Democrats are in no hurry to secure a political victory for the president.

President Donald Trump will meet with GOP lawmakers Tuesday to try to kick-start the process for rounding up votes on Capitol Hill. Supporters in Congress and business groups say they have a narrow window to push it through, given that lawmakers tend to avoid tough trade votes during election season.

Rep. Earl Blumenauer, D-Ore., the chairman of the House subcommittee that has jurisdiction over trade, said the pact needs adjustments to be “worthy of support.”

Some Republican lawmakers also have concerns. Sen. Chuck Grassley of Iowa, the Republican chairman of the Senate Finance Committee, maintains that the president should lift steel and aluminum tariffs on products brought in from Canada and Mexico as a first step to getting the trade agreement through Congress.

Trump’s top trade negotiator, Robert Lighthizer, told lawmakers during a recent congressional hearing that if they don’t pass the trade agreement, the United States will have “no credibility at all” with future trading partners, including China.

“There is no trade program in the United States if we don’t pass USMCA. There just isn’t one,” Lighthizer said.

The White House’s legislative affairs team has talked to more than 290 members of Congress and staff over the past two months to push the deal. But the administration knows that making changes in the agreement to win over lawmakers could jeopardize support for the pact from Canada and Mexico.

Sen. Joni Ernst, R-Iowa, told reporters recently that many in her state’s agricultural community are “still with the president, but if we don’t get the trade deals done, they could turn quickly.”

She said, “We need to start wrapping this baby up.”

​The trade deal is designed to supplant the North American Free Trade Agreement, which took effect in 1994 and gradually eliminated tariffs on goods produced and traded within North America.

U.S. trade with its NAFTA partners has more than tripled since the agreement took effect, and more rapidly than trade with the rest of the world.

But Trump has called NAFTA a disaster for the United States. The new pact his administration negotiated is meant to increase manufacturing in the United States. Trump is warning that if lawmakers don’t approve the pact, the U.S. may revert to what he has described as “pre-NAFTA.”

Blumenauer is looking to make changes to the agreement in four areas: enhancing environmental and labor protections, ensuring enforcement of the agreement, and taking on protections for pharmaceutical companies that he believes drive up drug costs for consumers.

“I don’t think anyone wants to blow it up, but there is interest in strengthening it,” Blumenauer said.

Rep. Vern Buchanan of Florida, the ranking Republican on the trade subcommittee, said he believes the vast majority of Republicans will end up voting for the agreement. He’s tried to assure Democratic colleagues that Republicans were “open-minded to try and get some things done” to address their concerns.

“You put a lot of jobs at risk if this blows up,” Buchanan said.

Vanessa Sciarra, a vice president at the National Foreign Trade Council, said it’s too soon to tell how the vote will shake out.

Sciarra said one thing lawmakers don’t want to see is Trump make good on a threat to withdraw from NAFTA if he can’t get Congress to ratify the pact.

“Never has NAFTA been so popular,” Sciarra said.

Canadian officials have been lobbying the U.S. to end Trump’s steel and aluminum tariffs and have suggested that approval by Canada’s Parliament could be conditioned upon them being lifted. David MacNaughton, Ottawa’s ambassador to Washington, has said it will be a tough sell to pass if the tariffs are still in place.

Dan Ujczo, a trade lawyer and Canada-U.S. specialist in Columbus, Ohio, said the trade deal could pass “relatively quickly” once the tariffs are removed.

In Mexico, the administration of then-President Enrique Pena Nieto spearheaded Mexico’s negotiations, but representatives of current President Andres Manuel Lopez Obrador were deeply involved in the talks to ensure an agreement that both the outgoing and incoming administrations could live with.

Allies of Lopez Obrador, who took office Dec. 1, enjoy a large majority in the Mexican Senate, so passage of the agreement would seemingly go smoothly.

Kenneth Smith Ramos, who was chief negotiator for Pena Nieto’s government and now works as an international trade consultant at Mexico City-based AGON, said Mexican enthusiasm for the deal could dim though if there are significant new demands on labor, pharmaceuticals, the environment or other issues.

“We made some important concessions,” he said, adding that if “the U.S. still wants more, then that starts to unbalance the agreement and there may be a growing opposition in Mexico.”

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Hong Kong Ex-Official Patrick Ho Jailed 3 Years for Bribery

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Hong Kong’s former home affairs secretary Patrick Ho Chi Ping was jailed for three years Monday for a scheme to bribe African officials to boost a top Chinese energy company that was part of Beijing’s global Belt and Road initiative.

Ho, 69, who worked for the controversial energy conglomerate CEFC China Energy, was sentenced by a New York judge after being convicted in December on seven charges of violating the Foreign Corrupt Practices Act and money laundering for bribes.

He was accused of paying off top officials in Uganda and Chad to support the Shanghai conglomerate’s projects in their countries.

Some of the deals were arranged in the halls of the United Nations, leading to the U.S. arrest in November 2017 of Ho and a co-conspirator, former Senegalese top diplomat Cheikh Gadio.

The two men allegedly offered a $2 million bribe to Idriss Deby, the president of Chad, “to obtain valuable oil rights,” and a $500,000 bribe to an account designated by Sam Kutesa, the minister of foreign affairs of Uganda, who had recently completed his term as the President of the U.N. General Assembly, according to the charges.

“Patrick Ho schemed to bribe the leaders of Chad and Uganda in order to secure unfair business advantages for the Chinese energy company he served,” said U.S. Attorney Geoffrey Berman. “Foreign corruption undermines the fairness of international markets, erodes the public’s faith in its leaders, and is deeply unfair to the people and businesses that play by the rules.”

CEFC was an upstart company that quickly grew to be worth tens of billions of dollars despite a murky track record.

It was considered to be a vital player in Chinese President Xi Jinping’s ambitious One Belt One Road plan to build commercial networks around the world.

CEFC was led by Ye Jianying, an ostensibly well-connected businessman who built a network of global contacts, and notably was able to meet with members of then-vice president Joe Biden’s family and a former CIA director.

But after Ho was arrested by U.S. authorities in 2017, CEFC’s business began to crumble.

Last year, Ye disappeared and is now believed to be held by Chinese authorities for unspecified charges.

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Airbus Wins China Order for 300 Jets as Xi Visits France

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Airbus signed a deal worth tens of billions of dollars on Monday to sell 300 aircraft to China as part of a trade package coinciding with a visit to Europe by Chinese President Xi Jinping and matching a China record held by rival Boeing.

The deal between Airbus and China’s state buying agency, China Aviation Supplies Holding Company, which regularly coordinates headline-grabbing deals during diplomatic visits, will include 290 A320-family jets and 10 A350 wide-body jets.

French officials said the deal was worth some 30 billion euros at catalogue prices. Planemakers usually grant significant discounts.

The larger-than-expected order, which matches an order for 300 Boeing planes when U.S. Donald Trump visited Beijing in 2017, follows a year-long vacuum of purchases in which China failed to place significant orders amid global trade tensions.

It also comes as the grounding of the Boeing 737 MAX has left uncertainty over Boeing’s immediate hopes for a major jet order as the result of any warming of U.S.-China trade ties.

There was no evidence of any direct connection between the Airbus deal and Sino-U.S. tensions or Boeing fleet problems, but China watchers say Beijing has a history of sending diplomatic signals or playing off suppliers through state aircraft deals.

“The conclusion of a big (aviation) contract … is an important step forward and an excellent signal in the current context,” French President Emmanuel Macron said in a joint address with his Chinese counterpart Xi Jinping.

The United States and China are edging towards a possible deal to ease a months-long tariff row and a deal involving as many as 200-300 Boeing jets had until recently been expected as part of the possible rapprochement.

Long-term relationship

China was also the first to ground the newest version of Boeing’s workhorse 737 model earlier this month following a deadly Ethiopian Airlines crash, touching off a series of regulatory actions worldwide.

Asked if negotiations had accelerated as a result of the Boeing grounding or other issues, Airbus planemaking chief and designated chief executive Guillaume Faury told reporters, “This is a long-term relationship with our Chinese partners that evolves over time; it is a strong sign of confidence.”

China has become a key hunting ground for Airbus and its leading rival Boeing, thanks to surging travel demand.

But whether Airbus or Boeing is involved, analysts say diplomatic deals frequently contain a mixture of new demand, repeats of older orders and credits against future deals, meaning the immediate impact is not always clear.

The outlook has also been complicated by Beijing’s desire to grow its own industrial champions and, more recently for Boeing, the U.S.-China trade war.

French President Macron unexpectedly failed to clinch an Airbus order for 184 planes during a trip to China in early 2018 and the two sides have been working to salvage it.

Industry sources have said the year’s delay in Airbus negotiations, as well as a buying freeze during the U.S. tariff row, created latent demand for jets to feed China’s growth.

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