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BCDA dividends remitted to Treasury double to P1.1 billion off 2023 earnings

THE Bases Conversion and Development Authority (BCDA) has remitted P1.1 billion to the Bureau of the Treasury, doubling the dividends it remitted a year earlier.

This was compared with the BCDA’s remittance of P527 million last year from earnings booked in 2022. The BCDA’s dividends since its creation have amounted to P9.6 billion.

“The BCDA’s higher dividend remittance to the National Government reflects its sustained good financial standing amid efficient revenue generation and expenditure management,” BCDA President and Chief Execu-tive Officer Joshua M. Bingcang said in a statement Wednesday.

“This year, we are remitting more than the share mandated by the law as testament to our commitment to nation building,” he added.

According to the BCDA, the P1.1 billion dividend it remitted this year represents 75% of its net earnings in 2023.

Under Republic Act No. 7656 or the Dividend Law, all government-owned and -controlled corporations (GOCCs) must remit to the National Government at least 50% of their net earnings as dividends.

The BCDA also remitted to the Treasury guarantee fees for the load of Subic-Clark-Tarlac Expressway and proceeds of its asset disposition program, which was distributed to beneficiary agencies including the Armed Forces of the Philippines.

In a separate statement, the BCDA said three of its projects were among the high-impact projects offered to US and Japanese investors in the proposed Luzon Economic Corridor.

The Luzon Economic Corridor is a component of the Group of Seven Partnership for Global Infrastructure and Investment (G7 PGII).

A shared commitment between France, Germany, Italy, Japan, US, UK, and Canada, G7 PGII aims to advance investments in sustainable, inclusive, resilient and quality infrastructure by mobilizing up to $600 billion in fi-nancing for low- and middle-income countries by 2027.

The three projects are the Subic-Clark Railway, the expansion of Clark International Airport, and the Clark National Food Hub. — Justine Irish D. Tabile

PHL dairy imports drop 17% in 2023 — FAO

REUTERS

PHILIPPINE DAIRY imports declined to 2.32 million metric tons (MT) milk equivalent in 2023 due to a drop in exports from major dairy producing countries, the United Nations’ Food and Agriculture Organization (FAO) said.

In a report, the FAO said that imports declined 17.7% from 2.81 million MT a year earlier.

It added that dairy importing economies like China, Indonesia, the Philippines, and Japan saw significant volume drops.

It said the decline in global dairy exports was led by the US, whose shipments fell to 12.56 million MT, down 11.3% from a year earlier.

“Several other large producers, such as Australia, Türkiye, and Argentina, reported significant export drops, while New Zealand and the European Union gained the most,” the FAO said.

Imports of skim milk powder to the Philippines also declined due to higher prices.

“Currency depreciations induced some countries to lower (skim milk powder) purchases, such as the Philippines, where imports reached an eight-year low in 2023,” the report added.

Skim milk powder is mainly used in condensed milk, evaporated milk and other dairy products.

The Philippines can meet less than 1% of its milk demand from domestic production, with the rest needing to be imported.

In 2023, Philippine dairy production was 17,850 MT, or about 0.8% of milk consumption of 1.94 million MT. The dairy cow herd was 75,798 head in 2023.

The government is aiming to increase dairy production to 80 million liters of milk per year by 2028. — Adrian H. Halili

New taxpayer classifications under the Ease of Paying Taxes Law

2024 ushered in a new tax law, the Ease of Paying Taxes or EoPT Law, or Republic Act No. 11976, which introduced a number of reforms, one of which was to classify taxpayers based on their gross sales.

The EoPT Law became effective on Jan. 22, and the Bureau of Internal Revenue (BIR) recently issued the implementing guidelines for classifying taxpayers under Section 21(b) of the National Internal Revenue Code (Tax Code). Revenue Regulations (RR) No. 8-2024 will take effect on April 27, or 15 days from its publication on the BIR website on April 12.

Taxpayers are now classified under four groups, depending on the level of gross sales for a taxable year:

A) Micro Taxpayers are those with gross sales of less than P3 million

B) Small Taxpayers are those with gross sales of between P3 million and less than P20 million

C) Medium Taxpayers are those with gross sales of between P20 million and less than P1 billion

D) Large Taxpayers are those with gross sales of P1 billion and above

For purposes of determining a taxpayer’s classification, RR No. 8-2024 defines gross sales as total sales revenue during the taxable year, net of Value-Added Tax (VAT) and without any other deductions.

The RR specifically provides that gross sales only include business income, or income earned by a taxpayer from the conduct of trade or business or the exercise of a profession. Compensation income earned under an employ-er-employee relationship, passive income under Sections 24, 25, 27 and 28, as well as tax-exempt income under Section 32(B) of the Tax Code, are all excluded from the computation of gross sales. With this clear guideline, taxpay-ers with multiple income sources need not worry about inadvertently falling under a higher classification since gross sales is categorically defined to include only business income.

As a rule, any person, whether an individual or a juridical entity, who wishes to engage in business or the exercise of profession, is required to register for tax purposes. Those taxpayers who will register from April 27 onwards, or upon effectivity of RR No. 8-2024, must indicate their initial classification in the registration form. This means that new taxpayers would have to assess what their classification would be based on the expected or estimated gross sales of their new business.

This initial classification applies from the start of their registration until the taxpayer is reclassified by the BIR based on the gross sales thresholds described above.

RR No. 8-2024 also provides for transitory rules on the classification of taxpayers who were registered prior to April 27.

All taxpayers registered in 2022 and prior years are to be classified based on their gross sales for the taxable year 2022. While the RR did not specify, this presumably will be based on the Audited Financial Statements duly sub-mitted by the taxpayer to the BIR.

If no information on their 2022 gross sales was submitted, taxpayers registered in 2022 and prior years will be initially classified as Micro Taxpayers, unless they are VAT-registered, in which case, they will be classified as Small Taxpayers. These same initial classification rules also apply to taxpayers who were registered in 2023 and in 2024 before the effectivity of RR No. 8-2024.

Similar to new taxpayers registered under RR No. 8-2024, existing taxpayers may be reclassified by the BIR based on the threshold of their gross sales. All taxpayers are to be duly notified by the BIR of the reclassification before it can be effective. The manner or procedure for notifications have yet to be prescribed and will be released in a separate revenue issuance. Previously, taxpayers were notified of their classification or de-classification as a top withholding agent via publication in a newspaper of general circulation or posting in the BIR website. We have yet to see whether this same notification process will be applied to reclassifications of taxpayers under the EoPT Law.

The new classification of taxpayers, together with most of the reforms introduced by the EoPT Law, are a welcome development for taxpayers. It is likewise laudable that the taxpayer classification is expanded into four groups, with the EoPT Law being cognizant of the varying earning levels of taxpayers and widening the gap between a Micro Taxpayer and a Large Taxpayer. The new classifications are especially advantageous to Micro and Small Taxpayers as they are given special concessions such as a simplified income tax return (which is reduced to two pages), reduced 10% rate for civil penalties, and reduction on interest rates and certain fines and compromise penalties.

Now that the implementing rules for the tax reforms introduced by the EoPT Law have been released, taxpayers and tax officials alike can be properly guided. The EoPT Law’s objective of improving tax administration efficiency and en-couraging tax compliance on the part of taxpayers may soon be in full swing. In line with the intention of having a responsive tax administration that will cater to the various classes of taxpayers, I hope that the BIR does not limit itself to the concessions required under the law (two-pager ITR and reduced penalties). I sincerely hope that they allocate resources to formulate programs and other administrative measures that will give this taxpayer classification scheme additional rele-vance, particularly for micro and small taxpayers.

The views or opinions expressed in this article are solely those of the author and do not necessarily represent those of Isla Lipana & Co. The content is for general information purposes only, and should not be used as a substitute for specific advice.

 

Dorothy Puguon is a manager at the Tax Services Department of Isla Lipana & Co., the Philippine member firm of Price water house Coopers global network.

dorothy.jane.puguon@pwc.com

PHL stocks extend rally, track Wall Street’s rise

PHILIPPINE STAR/KRIZ JOHN ROSALES

PHILIPPINE SHARES ended higher for the third straight session on Wednesday to track Wall Street’s rise overnight and amid an improving inflation outlook at home.

The bellwether Philippine Stock Exchange index (PSEi) rose by 1.01% or 65.95 points to end at 6,572.75 on Wednesday, while the broader all shares index climbed by 0.48% or 16.56 points to close at 3,463.46.

“The local bourse gained during this session, rising by 65.95 points (1.01%) to 6,572.75 following positive cues from the US markets amid good initial earnings reports. Investors continue to buy stocks at bargain levels while awaiting catalysts,” Philstocks Financial, Inc. Research Analyst Claire T. Alviar said in a Viber message.

US stocks closed higher on Tuesday following positive earnings from top-tier companies and as investors were focused on quarterly results from Magnificent Seven and other mega-cap growth stocks, Reuters reported.

Tesla kicked off the earnings cycle for technology heavyweights after markets closed on Tuesday, announcing the launch of new electric vehicle models and quarterly revenue that missed analyst estimates. Its shares jumped 6% in extended hours trading.

The Dow Jones Industrial Average rose 263.71 points or 0.69% to 38,503.69; the S&P 500 gained 59.95 points or 1.2% to 5,070.55; and the Nasdaq Composite gained 245.33 points or 1.59% to 15,696.64.

“Philippine shares continued to rebound, finishing 1.01% higher, nearing the 6,600 level as investors applauded the “so far, so good” earnings results of US listed companies,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.

“Additionally, National Economic and Development Authority Secretary Arsenio M. Balisacan’s outlook on inflation, in which he sees it starting to ease in the second half as food price pressures are seen to diminish by then, contributed to the positive sentiment,” Ms. Alviar said.

Headline inflation rose for a second straight month in March to 3.7% amid rising food prices. Food inflation accelerated to 5.7%, its fastest pace in four months, mainly driven by rice.

Almost all of the market’s sectoral indices ended higher, with financials being the lone decliner, dropping by 0.09% or 1.88 points to 2,045.90.

Meanwhile, holding firms increased by 1.81% or 107.85 points to 6,059.47; industrials rose by 1.27% or 108.94 points to 8,634.95; property went up by 1.22% or 30.45 points to 2,519.10; services climbed by 0.45% or 8.33 points to 1,839.85; and mining and oil added 0.32% or 27.58 points to end at 8,587.53.

Value turnover rose to P6.07 billion on Wednesday with 1.13 billion shares changing hands from the P5.11 billion with 554.76 million issues traded on Tuesday.

Advancers beat decliners, 111 versus 99, while 52 names were unchanged.

Net foreign selling surged to P1.86 billion on Wednesday from P508.35 million on Tuesday. — Revin Mikhael D. Ochave with Reuters

‘Now go win the fight’: US Congress passes Ukraine aid after months of delay

WASHINGTON — A sweeping foreign aid package easily passed the US Congress late Tuesday after months of delay, clearing the way for billions of dollars in fresh Ukraine funding amid advances from Russia’s invasion force and Kyiv’s shortages of military supplies. 

The Senate approved by 79 to 18 four bills passed by the House of Representatives on Saturday, after House Republican leaders abruptly switched course last week and allowed a vote on the $95 billion in mostly military aid for Ukraine, Israel and Taiwan and US partners in the Indo-Pacific. 

The four bills were combined into one package in the Senate, which President Joe Biden said he would sign into law on Wednesday. 

Ukrainian President Volodymyr Zelenskiy said he was grateful to US lawmakers for approving “vital” aid for Ukraine.  

“This vote reinforces America’s role as a beacon of democracy and leader of the free world,” Zelenskiy said in a statement on the Telegram messaging app.  

The largest provides $61 billion in critically needed funding for Ukraine; a second provides $26 billion for Israel and humanitarian aid for civilians in conflict zones around the world, and a third mandates $8.12 billion to “counter communist China” in the Indo-Pacific.  

A fourth, which the House added to the package last week, includes a potential ban on the Chinese-controlled social media app TikTok, measures for the transfer of seized Russian assets to Ukraine and new sanctions on Iran. 

Biden’s administration is already preparing a $1 billion military aid package for Ukraine, the first sourced from the bill, two US officials told Reuters. It includes vehicles, Stinger air defense munitions, additional ammunition for high-mobility artillery rocket systems, 155 millimeter artillery ammunition, TOW and Javelin anti-tank munitions and other weapons that can immediately be put to use on the battlefield. 

The Senate’s Democratic and Republican leaders predicted that Congress had turned the corner in putting Russian President Vladimir Putin and other foreign adversaries on notice that Washington will continue supporting Ukraine and other foreign partners. 

“This national security bill is one of the most important measures Congress has passed in a very long time to protect American security and the security of Western democracy,”  

Democratic Majority Leader Chuck Schumer told a news conference after the vote. 

The aid package could be the last approved for Ukraine until after elections in November when the White House, House of Representatives and one-third of the Senate are up for grabs. 

Much of the opposition to the security assistance in both the House and Senate has come from Republicans with close ties to former US President Donald Trump, a Ukraine aid skeptic who has stressed “America First” policies as he seeks a second term. 

Senate Republican Leader Mitch McConnell, a strong advocate for assisting Ukraine, expressed regret about the delay, largely due to hardline Republicans’ objections to adding more to the $113 billion Washington had authorized for Kyiv since Russia began its full-scale invasion in February 2022. 

“I think we’ve turned the corner on the isolationist movement,” McConnell told a news conference. 

Some of the Ukraine money – $10 billion in economic support – comes in the form of a loan, which Trump had suggested. But the bill lets the president forgive the loan starting in 2026. 

‘NOW GO WIN THE FIGHT’
The influx of weapons should improve Kyiv’s chances of averting a major breakthrough in the east by Russian invaders, although it would have been more helpful if the aid had come closer to when Biden requested it last year, analysts said. 

Schumer said he left a message for Zelenskiy on Tuesday night, telling him, “OK, we got it done. Now go win the fight.” 

It was not immediately clear how the money for Israel would affect the conflict in Gaza. Israel already receives billions of dollars in annual US security assistance, but it more recently has faced its first direct aerial attack by Iran. 

Aid supporters hope the humanitarian assistance will help Palestinians in Gaza, which has been devastated by Israel’s campaign against Hamas to retaliate for Oct. 7 attacks that killed 1,200 people. 

Gaza health authorities say the campaign has led to the deaths of more than 34,000 civilians in the Palestinian enclave.  

It was the second time this year that the Democratic-led Senate passed security aid for Ukraine, Israel and the Indo-Pacific. The last bill, more than two months ago, garnered 70% support in the 100-member chamber from Republicans and Democrats. But leaders of the Republican-controlled House would not allow a vote on the foreign aid until last week. 

The legislation’s progress has been closely watched by industry, with US defense firms up for major contracts to supply equipment for Ukraine and other US partners. 

Experts expect the supplemental spending to boost the order backlog of RTX Corp. along with other major companies that receive government contracts, such as Lockheed Martin, General Dynamics and Northrop Grumman.  

The House passed the Ukraine funding by 311-112, with all “no” votes coming from Republicans, many of whom were bitterly opposed to further assistance for Kyiv. Only 101 Republicans voted for it, forcing Speaker Mike Johnson to rely on Democratic support and prompting calls for his ouster as House leader. 

However, the House left Washington for a week-long recess, without triggering a vote to remove Johnson. — Reuters 

In Trump hush money trial, tabloid publisher says he suppressed negative stories vs leader in 2016

REUTERS

NEW YORK — The first witness in Donald Trump’s criminal hush money trial, former National Enquirer publisher David Pecker, testified on Tuesday that he used his supermarket tabloid to suppress stories that might have hurt Mr. Trump’s 2016 presidential bid.

Mr. Pecker, 72, testified in a New York court that the Enquirer paid two people who were peddling stories of Mr. Trump’s sexual misbehavior but never published them — a practice known as “catch and kill.”

“When someone’s running for public office like this, it is very common for these women to call up a magazine like the National Enquirer to try to sell their stories,” Mr. Pecker testified.

Mr. Pecker said the decision to bury the stories followed a 2015 meeting at which he told Mr. Trump that the Enquirer would publish favorable stories about the billionaire candidate and keep an eye out for people selling stories that might hurt him. He said he told an editor to keep the arrangement secret.

Mr. Pecker said the Enquirer paid former Playboy model Karen McDougal for her story of a sexual relationship with Mr. Trump in 2006 and 2007. He said he bought the story after Mr. Trump refused to do so himself.

“He said that anytime you do anything like this it always gets out,” Mr. Pecker said.

The Enquirer’s parent company, American Media, said in 2018 it paid $150,000 for the story. Mr. Trump has denied having an affair with Ms. McDougal.

The tabloid also paid $30,000 for a story peddled by Trump Tower doorman, Dino Sajudin, who claimed Mr. Trump fathered a child with a maid who worked for him. The story turned out not to be true, Mr. Pecker said.

Both payments far exceeded the amounts the paper typically paid for stories, he said.

“I made the decision to buy the story because of the potential embarrassment it would have to the campaign and Mr. Trump,” Mr. Pecker said.

He is expected to testify further when the trial resumes on Thursday.

Prosecutors say Mr. Pecker’s actions helped Trump deceive voters in the 2016 election by burying stories of alleged extramarital affairs at a time when he already faced multiple accusations of sexual misbehavior.

They have charged Mr. Trump with criminally falsifying business records to cover up a $130,000 payment to buy the silence of porn star Stormy Daniels, who says they had a sexual encounter 10 years earlier.

Mr. Trump has pleaded not guilty and denies having an encounter with Ms. Daniels. His lawyers argue that Mr. Trump did not commit any crimes and only acted to protect his reputation. The case may be the only one of Mr. Trump’s four criminal prosecutions to go to trial before the Republican’s Nov. 5 election rematch with Democratic President Joseph R. Biden, Jr.

A guilty verdict would not bar Mr. Trump from taking office but could hurt his candidacy.

 

‘LOSING ALL CREDIBILITY’

Mr. Pecker’s testimony came after a hearing to consider prosecutors’ request to fine Mr. Trump $10,000 for violating a gag order prohibiting him from criticizing witnesses, court officials and their relatives.

Justice Juan Merchan said he would not immediately rule on that request, but he appeared unmoved by Mr. Trump defense lawyer Todd Blanche’s arguments that Mr. Trump was responding to political attacks, not intimidating witnesses.

“You’ve presented nothing,” Mr. Merchan said. “I’ve asked you eight or nine times, show me the exact post he was responding to. You’ve not even been able to do that once.”

 

“I have to tell you right now, you’re losing all credibility with the court,” the judge added.

After the session, Mr. Trump repeated his claim that the gag order violated his constitutional free speech rights.

“This is a kangaroo court, and the judge should recuse himself!” Mr. Trump wrote on his Truth Social platform.

New York prosecutor Christopher Conroy said Mr. Trump has run afoul of the order, pointing to an April 10 Truth Social post that called Ms. Daniels and Mr. Trump’s former lawyer Michael Cohen “sleazebags.” Both are expected to testify in the first criminal trial of a former US president.

Mr. Conroy said other posts led to media coverage that prompted a juror last week to withdraw over privacy concerns.

“He knows what he’s not allowed to do, and he does it anyway,” Mr. Conroy said of Mr. Trump. “His disobedience of the order is willful. It’s intentional.”

The $10,000 fine sought by Mr. Conroy would be a relatively small penalty for Mr. Trump, who has posted $266.6 million in bonds as he appeals civil judgments in two other cases.

Mr. Conroy said he was not at this point asking Mr. Merchan to send Mr. Trump to jail for up to 30 days, as New York law allows.

“The defendant seems to be angling for that,” Mr. Conroy said.

Mr. Blanche said Mr. Trump’s posts were responses to political attacks by Mr. Cohen and not related to his former lawyer’s expected testimony.

“He’s allowed to respond to political attacks,” Mr. Blanche said. — Reuters

Gaza protests grow at US colleges; thousands demonstrate in Brooklyn

PHOTO SHOWS a Palestinian looking at the site of an Israeli strike on a mosque, amid the conflict between Israel and the Palestinian Islamist group Hamas, in Rafah in the southern Gaza Strip on Feb. 12, 2024. — REUTERS

NEW YORK — Protests against Israel filled streets in Brooklyn and escalated at universities across the United States, some of which included Jewish Passover Seders, as demonstrators demanded an end to civilian casualties in Gaza.

The growing protests follow mass arrests of demonstrators at some East Coast universities in recent days, and show a deepening dissatisfaction in the United States, historically Israel’s most important ally, with the course of the war with Hamas.

Pro-Palestinian protests have followed President Joseph R. Biden, Jr, a self-declared “Zionist,” for months. On universities, protests have recently grown to encampments that draw students and faculty of various backgrounds, including of Jewish and Muslim faiths, that host teach-ins, interfaith prayers, and musical performances.

A large Brooklyn street protest reached a standoff on Tuesday when New York police began to arrest people over disorderly conduct, restraining those who refused to move with zip ties.

The Council on American-Islamic Relations criticized the use of police force to stifle dissent, saying it undermined academic freedom.

“So does defaming and endangering Jewish, Muslim and Palestinian … students based on suspiciously inflammatory remarks that a few unidentified, masked individuals have made outside of campus,” Afaf Nasher, executive di-rector of CAIR in New York, said in a statement.

Critics of the protests, including prominent Republican members of the US Congress, have stepped up accusations of antisemitism and harassment by at least some protesters. Civil rights advocates, including the ACLU, have raised free speech concerns over the arrests.

There have been heated exchanges of words and insults between pro-Palestinian and pro-Israeli demonstrators, particularly in the public streets around Columbia, leading congressional Republicans on Tuesday to demand that Mr. Biden do more to protect Jewish students.

Several campus protesters Reuters spoke to attributed the off-campus incidents to rogue provocateurs who are trying to hijack the protests’ message.

“There are no universities left in Gaza. So we chose to reclaim our university for the people of Palestine,” said Soph Askanase, a Jewish Columbia student who was arrested and suspended for protesting. “Antisemitism, Islam-ophobia and racism, in particular racism against Arabs and Palestinians, are all cut from the same cloth.”

Other students blamed universities for failing to protect their right to protest or stand up for human rights.

“As a Palestinian student, I too did not feel safe for the past six months, and that was as a direct result of Columbia’s one-sided statements and inaction,” said Mahmoud Khalil, a Palestinian student at Columbia.

Students at the University of California, Berkeley — a school well known for its student activism during the 1960s — set up tents in solidarity with protesters at other schools.

Milton Zerman, 25, a second-year student at Berkeley’s law school, who is from Los Angeles, said Jewish and Israeli students have suffered from hateful harassment.

“When you’re an Israeli student on this campus, you feel like you have a target on your back, you feel unsafe and it’s no wonder students from Israel are so hesitant to come here,” Mr. Zerman said.

New York police arrested more than 120 protesters at New York University on Monday and more than 100 at Columbia University last week. Columbia canceled in-person classes at its Upper Manhattan campus on Monday in a bid to defuse tensions.

On Tuesday, Columbia said classes for the rest of the year would be hybrid, with students able to attend online or in person.

Later, the university’s president said it was time “to move forward with a plan to dismantle” the pro-Palestine encampment and gave organizers a midnight deadline to do so.

California’s Cal Poly Humboldt, a public university in Arcata, was shut down after pro-Palestinian protesters occupied a campus building.

At the University of Minnesota campus in St. Paul, police cleared an encampment after the school asked them to take action, citing violations of university policy and trespassing law.

PASSOVER PROTESTS
Some Jewish demonstrators said they were taking the second night of the weeklong feast of Passover, a holiday feast when families gather and celebrate the biblical account of the Israelites’ freedom from Egyptian slavery, to reaf-firm their faith and distance themselves from the Israeli government’s war strategy.

“I don’t see what Israel is doing as self-defense. I see incredible, absolutely unbelievable human rights violations,” said Katherine Stern, 62, of Woodstock, New York, who gave up her family Seder 120 miles (190 km) away to at-tend the Brooklyn protest.

Protesters want university endowments to divest from Israeli interests and the United States to end or at least condition Israeli military aid on improving the plight of Palestinians.

Hamas militants attacked Israel on Oct. 7, killing 1,200 and taking scores of hostages, according to Israeli tallies. Israel’s counterattack has killed over 34,000 people, according to the Palestinian health ministry, displacing nearly all of Gaza’s 2.3 million people and causing a humanitarian crisis.

In Brooklyn, about 2,000 people occupied a plaza near the Brooklyn home of US Senate Majority Leader Chuck Shumer, a staunch Israel supporter and the highest-ranking Jew in the US government, chanting, “Stop arming Isra-el,” “Stop funding genocide” and “Let Gaza live.”

Organizers staged music and song from Jewish and other cultures, giving prominence to Canadian author Naomi Klein, a peace activist who drew on her Jewish roots to argue against Zionism, which she called a “false idol.”

“We want freedom f rom the project that connects genocide in our name,” Klein said to cheers. “We seek to migrate Judaism from an ethnostate that wants Jews to be perennially afraid… or that we go running to its fortress, or at least keep sending them the weapons and the donations.” — Reuters

Better US-China ties but still deep disagreements as Blinken starts visit

U.S. SECRETARY OF STATE ANTONY BLINKEN — PPA POOL/MARIANNE BERMUDEZ

WASHINGTON/BEIJING — US Secretary of State Antony Blinken arrives in Shanghai on Wednesday with US-China ties on a steadier footing, but with a daunting array of unresolved issues threatening the stability of relations be-tween the global rivals.

Mr. Blinken will meet with business leaders before heading to Beijing for talks on Friday with his counterpart, Foreign Minister Wang Yi, and a likely meeting with President Xi Jinping.

Mr. Blinken’s visit is the latest high-level contact between the two nations that, along with working groups on issues from global trade to military communication, have tempered the public acrimony that drove relations to his-toric lows early last year.

But Washington and Beijing have made little headway on curbing China’s supply of chemicals used to make fentanyl, Taiwan remains a flashpoint, and strains are intensifying over China’s backing of Russia in its war in Ukraine.

While significant progress is unlikely during the visit, both countries want “open lines of communication to avoid awkward scenarios,” said Alfred Wu, associate professor at the Lee Kuan Yew School of Public Policy in Singapore. Mr. Blinken will press China to stop its firms from retooling and resupplying Russia’s defense industrial base. Moscow invaded Ukraine in February 2022, just days after agreeing a “no limits” partnership with Beijing, and while China has steered clear of providing arms, US officials warn Chinese companies are sending dual-use technology that helps Russia’s war effort.

Without providing details, a senior State Department official briefing reporters on Friday said Washington was prepared to “take steps” against Chinese firms it believes are damaging US and European security. The United States has preliminarily discussed putting sanctions on Chinese banks over the country’s support for Russia, but officials told Reuters they do not yet have a plan to do so.

Washington has so far stopped short of sanctioning major Chinese banks – long deemed by analysts as a “nuclear” option — because of the effects it could have across the global economy and on US-China relations.

A Chinese foreign ministry official quoted by state news agency Xinhua on Tuesday said relations “have shown a trend of stopping decline and stabilizing,” since Joseph R. Biden, Jr. and Mr. Xi met in San Francisco in November.

But the official criticized what they called Washington’s “stubborn strategy of containing China, and its erroneous words and deeds of interfering in China’s internal affairs, tarnishing China’s image and undermining China’s in-terests.”

CALL FOR ‘RESTRAINT’ OVER TAIWAN
The visit also comes after the US Congress moved ahead this weekend with a bill that includes new funding for Taiwan and less than a month before the self-governing island inaugurates a new president, Lai Ching-te, who like his predecessor rejects China’s claim to the island.

The senior State Department official said parties should “avoid taking provocative actions that may raise tensions, and demonstrate restraint” ahead of the inauguration. “That will be our message going forward,” the official added. An effort to force China’s ByteDance to sell the social media app TikTok or face a ban in the US is also gaining steam in Congress, a sign of the growing appetite in Washington to confront Beijing on economic issues. Mr. Blinken is also expected to raise human rights, including China’s treatment of Muslims in its western Xinjiang region.

Other US officials have met or called their Chinese counterparts recently as part of the broader US effort to keep lines of communication open.

Treasury Secretary Janet Yellen was in Beijing and the southern factory hub of Guangzhou earlier this month, and last week Defense Secretary Lloyd Austin spoke with his Chinese counterpart for the first time in 18 months.

Mr. Biden’s national security adviser Jake Sullivan has also held regular talks with Mr. Wang, aiming as the administration says, to responsibly manage competition between the two powers.

Despite the tensions there have been attempts to find common ground on issues such as the Middle East conflict.

After an alleged Israeli strike on an Iranian consular facility in Damascus earlier this month, Blinken spoke with Mr. Wang, as well as with representatives of other countries with ties to Iran, “to make clear that escalation is not in anyone’s interest, and that countries should urge Iran not to escalate,” a State Department spokesperson said on April 11.

Wang Huiyao, founder and president of the Beijing-based think tank Center for China and Globalization, told Reuters that contact showed the potential of the two countries working together.

“They sell all their oil to China,” Mr. Wang said of Iran, “so when China says, ‘OK, you just stop,’ then they have to think about it.” — Reuters

​First COVID, now heat: Online schooling returns to the Philippines

Students attend online classes in Baseco, Tondo, Manila. EDD GUMBAN, The Philippine Star

QUEZON CITY, Philippines – Record heat in the Philippines this month has forced schools to send children home for online classes, reviving memories of COVID lockdowns and raising fears that more extreme weather in the years to come could deepen educational inequalities.

Pupils at 7,000 public schools in the Southeast Asian country were sent home last week due to unusually hot weather in many areas that forecasters have linked to the effects of the El Nino weather phenomenon.

Teacher Erlinda Alfonso, who works at a public elementary school in Quezon City near the capital, said she did not know what was worse for her pupils – sweltering in an overcrowded classroom or trying to study at home.

“Some students told me they prefer going to school because the heat is worse at home,” she said, adding that many of her students live in nearby shantytowns and have no internet connection to take part in online classes.

While teachers are providing offline assignments for students without internet access, Ms. Alfonso said the arrangement left children with no one to raise questions with.

“If there’s something they could not understand, their parents or siblings are often not at home because they need to earn a living,” said the 47-year-old, who also heads the city’s association of public school teachers.

The Philippines had one of the world’s longest school shutdowns during the COVID-19 pandemic, which highlighted the education gap faced by children from low-income families without computers or sufficient internet access.

But with most public schools in the country of 115 million people poorly equipped to deal with soaring temperatures and other extreme weather, online classes have become the safest option during the current heatwaves, teachers and unions say.

In public schools in Metro Manila, the capital region, a survey of more than 8,000 teachers last month showed 87% of students had suffered from heat-related conditions.

More than three-quarters of teachers described the heat as “unbearable” in the survey conducted by the Alliance of Concerned Teachers of the Philippines – National Capital Region (ACT-NCR), a teaching association.

Nearly half or 46% of teachers said classrooms have only one or two electric fans, highlighting inadequate ventilation measures to deal with rising temperatures.

“The heat had tremendous impacts on children. Some students even collapsed inside classrooms. Teachers suffered from the heat, too, but often they would prioritise their students’ health inside classrooms,” Ruby Bernardo, spokesperson of ACT-NCR, told the Thomson Reuters Foundation.

HOTTER AND LONGER HEATWAVES
As climate change fuels the frequency and severity of heatwaves, the problems faced by teachers and students in the Philippines look set to play out elsewhere.

About 243 million children in Asia and the Pacific are expected to be exposed to hotter and longer heatwaves over the coming months, the U.N. children’s agency, UNICEF, said last week.

Children are particularly susceptible to heat stroke, and UNICEF said prolonged exposure to intense heat also impacts their ability to concentrate and learn.

Since the start of El Nino, “danger category” temperatures as high as 44 degrees Celsius (111 Fahrenheit) have been predicted by country’s weather agency.

Filipino teachers say more measures are needed to deal with extreme heat in schools – from tackling shortages of classrooms and teachers, which lead to overcrowding, to providing free drinking water and having a school nurse or doctor on site.

The Alliance of Concerned Teachers has called on the Department of Education (DepEd) to address such issues.

It has also proposed the immediate reversion to the pre-pandemic school calendar, when the hot months of April and May fell during the long school break.

Asked to comment, a DepEd spokesperson said its policy of letting head teachers decide when to switch to online or offline home classes “provides a more immediate and effective response to heat conditions rather than knee-jerk changes that would further compromise learning recovery”.

Some teachers say the current situation also underlines the need for more education about climate change.

“Climate change has not been comprehensively taught in our classrooms. But it’s a pressing issue linked to all the other challenges our education system is facing now,” Ms. Bernardo said.

For many low-paid public sector teachers, working in packed schools with non-existent or inadequate cooling has been the last straw.

“The heat makes me want to resign or retire early,” said Ms. Alfonso. – Thomson Reuters Foundation

The Thomson Reuters Foundation is the charitable arm of Thomson Reuters.

EXPLAINER | What happens now that US TikTok bill has been passed?

 – The US Senate on Tuesday passed legislation giving TikTok’s Chinese owner, ByteDance, about nine months to divest the US assets of the short-video app, or face a nationwide ban. President Joe Biden said he will to sign the bill into law on Wednesday.

Here is what will likely happen next for TikTok.

 

TIKTOK CLOCK STARTS

Once Mr. Biden signs the bill, a 270-day clock starts during which ByteDance must sell TikTok. If it looks like ByteDance is close to divestment near the end of the nine-month period, the president can authorize an additional 90 days for any deal to be finalized. If the bill is signed into law this week, as expected, the 270-day period will end around the inauguration of the next president of the United States, on Jan. 20, 2025, leaving the decision on an extra three months either to Biden, a Democrat, who is seeking reelection, or Republican front runner Donald Trump.

 

TIKTOK SUES

Once the bill is signed into law, TikTok is expected to sue to stop it. TikTok’s lawyers are also expected to ask the court for a preliminary injunction.

TikTok would want an injunction barring enforcement of the law to allow its full case challenging the constitutionality of the law to move ahead. It is unlikely that the court proceeding would be complete by year-end.

Last year TikTok took similar legal actions to stop a ban on the app in the state of Montana, where a preliminary injunction was granted. If that scenario is any guide for TikTok’s efforts against the United States, the company itself and TikTok users will file separate cases to thwart the US bill.

The bill sets the US Court of Appeals for the D.C. Circuit as the exclusive forum for any legal challenges.

 

HOW LONG WILL THIS ALL TAKE?

If TikTok successfully obtains a preliminary injunction from the court, the forced sale process is halted, potentially giving TikTok more time to operate freely in the US

In August 2020, Trump, who was president at the time, sought to ban both TikTok and Chinese-owned WeChat, but was blocked by the courts. In June 2021, Biden withdrew a series of Trump-era executive orders that sought to ban new downloads of WeChat and TikTok.

 

WILL TIKTOK CHANGE AT ALL?

The TikTok app should not change for its 170 million US users between now and the end of the divestment period in the first four months of 2025.

 

WHAT DOES THE CHINESE GOVERNMENT SAY?

China has a list of technologies that would need Chinese government approval before they are exported. Experts said TikTok’s recommendation algorithm would fall under the list. – Reuters

Tesla could start selling Optimus robots by the end of next year, Musk says

Tesla’s humanoid robot is still in the lab, but it may be ready to sell as soon as the end of next year, chief executive Elon Musk said on Tuesday.

Several companies have been betting on humanoid robots to meet potential labor shortages and perform repetitive tasks that could be dangerous or tedious in industries such as logistics, warehousing, retail and manufacturing.

Mr. Musk told investors on a conference call that he guessed the Tesla robot, called Optimus, would be able to perform tasks in the factory by the end of this year.

Humanoid robots have been in development for several years by Japan’s Honda and Hyundai Motor’s Boston Dynamics.

This year, Microsoft and Nvidia-backed startup Figure said it had signed a partnership with German automaker BMW to deploy humanoid robots in the car maker’s facility in the United States.

Mr. Musk has said before that robot sales could become a larger part of the Tesla business than other segments, including car manufacturing.

“I think Tesla is best positioned of any humanoid robot maker to be able to reach volume production with efficient inference on the robot itself,” Mr. Musk said on the Tuesday call, referring to the artificial intelligence abilities.

Mr. Musk has a history of failing to fulfill bold promises to Wall Street. In 2019, he told investors that Tesla would be operating a network of “robotaxi” autonomous cars by 2020.

Tesla put out the first generation of its Optimus robot, dubbed Bumblebee, in September 2022. This year, the company posted a video of a second generation of the bipedal robot folding a T-shirt at the firm’s facility.

Figure’s video released in February of its 01 robot shows it making coffee, while Boston Dynamics last week unveiled an electric platform for its Atlas humanoid robot, which was seen twisting and turning from a lying down state to standing and walking. – Reuters

US, Russia set for a showdown at UN over nuclear weapons in space

STOCK PHOTO | Image by Arek Socha from Pixabay

 – The United States and Russia are set to face off over nuclear weapons in space on Wednesday at the United Nations Security Council, which is due to vote on a US-drafted resolution calling on countries to prevent an arms race in outer space.

Russia is expected to block the draft resolution, said some diplomats. The US move comes after it accused Moscow of developing an anti-satellite nuclear weapon to put in space, an allegation that Russia’s defense minister has flatly denied.

US Ambassador to the UN Linda Thomas-Greenfield and Japan’s UN Ambassador Yamazaki Kazuyuki said in a joint statement on Friday that they have been negotiating with Security Council members on the draft text for six weeks.

The text affirms the obligation of states to comply with the Outer Space Treaty and calls on countries “to contribute actively to the objective of the peaceful use of outer space and of the prevention of an arms race in outer space.”

The 1967 Outer Space Treaty bars signatories – including Russia and the United States – from placing “in orbit around the Earth any objects carrying nuclear weapons or any other kinds of weapons of mass destruction.”

Russia and China are planning to first put an amendment to a vote in the council. The amendment echoes a 2008 proposal by the pair for a treaty banning “any weapons in outer space” and threats “or use of force against outer space objects.”

 

‘UNBALANCED, HARMFUL’

The amendment is not expected to be adopted, said diplomats. The amendment and the draft resolution each require at least nine votes in favor and no vetoes by Russia, China, the United States, Britain or France to be adopted.

“Without our amendment, based on the General Assembly resolution adopted in December 2023, the text tabled by the US will be unbalanced, harmful and politicized,” deputy Russian UN Ambassador Dmitry Polyanskiy told Reuters, adding that it would also undermine the Outer Space Treaty legal regime.

Mr. Polyanskiy said “all questions relating to this sphere should be considered by the full membership of States Parties to this Treaty and not by the UN Security Council members only.”

US intelligence officials, according to three people familiar with their findings, believe the Russian capability to be a space-based nuclear bomb whose electromagnetic radiation if detonated would disable vast networks of satellites.

White House National Security Council spokesman John Kirby has said Russia has not yet deployed such a weapon.

Russian President Vladimir Putin said in February that Russia was against the deployment of nuclear weapons in space.

Governments have increasingly viewed satellites in Earth’s orbit as crucial assets that enable an array of military capabilities on Earth, with space-based communications and satellite-connected drones in the war in Ukraine serving as recent examples of the outsized role of space in modern warfare.

Russia invaded neighboring Ukraine in February 2022. – Reuters