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Agrarian reform beneficiaries, rural hospitals to get free wi-fi  

DICT

THE DEPARTMENT of Information and Communications Technology (DICT) is set to put up free Wi-Fi sites in 660 villages with agrarian reform beneficiaries, an official said in a joint Senate hearing on Wednesday.  

[There is a] presidential directive to [put up Free Wi-Fi sites for agrarian reform] beneficiariesand the DAR (Department of Agrarian Reform) has given us a list of beneficiaries, which consist of 9,313 barangays,DICT Undersecretary for Connectivity Angelo Nuestro said.   

Our procurement this month will hit 660 of those barangays,he said.   

He added that part of the departments procurements for this month will cover free Wi-Fi sites in rural health units and public hospitals nationwide.   

The DICT aims to build 10,816 free Wi-Fi sites this year, but noted that the contract for the budget is applicable until the end of the year.   

There is a little bureaucratic complexity because the fund we are using is spent from [a] users fee, so its a special fund that expires [on] Dec. 31, so our contracts are until Dec. 31 [and] we cannot go beyond [the deadline],Mr. Nuestro said.   

The DICT aims to build 201,420 free Wi-Fi sites by 2028.   

In an oversight hearing at the House of Representatives in May, DICT Secretary Ivan John Uy said only 3,900 out of 11,000 built free Wi-Fi sites were working because the telecommunication service subscriptions were not renewed by the previous administration.   

Senator Alan Peter S. Cayetano raised the possibility that the budget for free Wi-Fi sites should be set as multi-year to avoid cuts in subscription.  

The DICT noted that there were 85.16 million internet users in the Philippines in the first quarter of 2023, of which 3.2 million were connected to the governments free Wi-Fi sites. Beatriz Marie D. Cruz

Tanker Angel Otom emerges as Philippines’ first triple gold winner

Angel Otom (left), 19 years old from Olongapo City clocked 47.73 seconds to not only snare the mint but also shatter the meet record of 48.07 she herself set last year in Surakarta, Indonesia with Ariel Joseph Alegarbes.

PHNOM PENH — Filipina tanker Angel Otom was born with an upper limb deficiency that went with the tenacity of a diamond, courage of a lion and killer instinct of a shark.

It was in full, majestic display yesterday as she reigned supreme in the 50-meter butterfly S5 to emerge the Philippines’ first triple-gold medalist in the 12th ASEAN Para Games at the Morodok Aquatics Center here.

The 19-year-old Olongapo City dynamo clocked 47.73 seconds to not only snare the mint but also shatter the meet record of 48.07 she herself set last year in Surakarta, Indonesia where she had a masterful three-gold harvest.

It was made more impressive that the University of the Philippines Sports Science student, who was accompanied by her parents freelance tattoo artist Marlou and high school teacher Mila, considered this particular event as her least favorite.

Giggly Ms. Otom, whose other wins came in the 50m backstroke Sunday and 200m individual medley Tuesday.

Grizzled veteran Ernie Gawilan overcame a slow start in blistering through his second gold in the 200m IM SM7 gold in 2:50.29 ahead of the Vietnamese duo of Hoang Nha Nguyen (2:56.96) and Quang Thoai Han (SM7).

The 32-year-old, two-time Paralympian earlier settled for the silver in the 50m butterfly that was topped by Singapore’s Wei Soong Toh.

Also striking gold was Evaristo Carbonel in the men’s discus throw F11 where he heaved a 25.67m at the rain-drenched Morodok Techo National Stadium.

It was his second mint after his javelin conquest Tuesday.

At the Royal University, Cheyzer Mendoza downed Indonesia’s Nasib Farta Simanja in the fifth and penultimate round and virtually clinched the women’s individual standard PI gold in chess.

With a round to go, the 31-year-old lawyer by profession, who topped the individual rapid event Sunday, remained perfect with five points and should seal his second mint regardless of her sixth-round result.

Also in gold contention were double-gold rapid winner Darry Bernardo in men’s B2B3 and Francis Ching in the men’s B1.

In table tennis, Bendicto Gaela and Linard Sultan copped the men’s doubles class 9 silver.

While Ms. Otom succeeded in her quest, Cendy Asusano failed in her bid for a golden treble in the throwing events in the F54 class after she settled for the discus throw bronze.

In E-sports, a demonstration event, the country’s Ashly Josh Paghubasan, Jasper Lorenz Ambat, Joshua Gatela Detera, Marvin Angelo Ignacio Ranon and Mike Ace Chester Canoza Gonzales routed the Malaysians, 3-0, to rule Mobile Legends. — Joey Villar

World No. 3 Obiena vaults to bronze medal in Poland

EJ OBIENA — PHILIPPINE STAR/JUN MENDOZA

FILIPINO ace pole vaulter EJ Obiena soared to the bronze medal in the 5th Irena Szewinska Memorial 2023 with a vault of 5.72 meters Tuesday at the Zdzislaw Krzyszkowiak Stadium in Bydgoszcz, Poland.

The world No. 3 pole vaulter posted his season’s best on his first try as he shared third spot with 2016 Rio Games bronze medalist Sam Kendricks (also with 5.72m) in the World Athletics Continental Tour Gold series event.

American Christopher Nilsen, silver medalist in the Tokyo Olympiad, reigned supreme with 5.92m as Polish Piotr Lisek took runner-up honors with 5.82m.

It was Mr. Obiena’s first competition since securing a three-peat and a record-breaking 5.65m in the Southeast Asian Games in Cambodia last month.

The pride of the Philippines warmed up with a 5.62-meter vault then raised the bar by 10 centimeters, clearing both heights on one attempt.

He next aimed for 5.82m — the Qualifying Standard for the Paris Games — but failed to clear thrice.

Mr. Obiena has to hit this mark during the qualifying period beginning July 1 up to June 30 next year to make the Olympics again.

The 27-year-old Pinoy star, whose personal best stood at 5.94m set in his history-making bronze-winning performance in the 2022 World Championships, continues building up for the Olympics when he vies in the Bergen Jump Challenge and Oslo Bislett Games in Norway on June 10 and 15, respectively. — Olmin Leyba

San Beda and De La Salle eye quick Final Four series

SAN BEDA in action during the NCAA season 98 men’s basketball game. — PHILIPPINE STAR/RUSSELL PALMA

Games Today
(Ynares Sports Arena)
2 p.m. — Marinerong Pilipino-San Beda vs Wangs Basketball @27 Strikers-Letran
4 p.m. — EcoOil-La Salle vs
Perpetual Help System Dalta

MARINERONG Pilipino-San Beda rekindle its old tale with Wangs Basketball @27 Strikers-Letran while reigning champion EcoOil-La Salle clash against the University of Perpetual Help System Dalta today in the opener of the 2023 PBA D-League Aspirants’ Cup Final Four at the Ynares Sports Arena.

Perennial NCAA rivals Red Lions and the Knights lock horns at 2 p.m. followed by an interesting battle between the Altas and title holder Green Archers at 4 p.m. with the winners drawing first blood in the short best-of-three series.

San Beda and De La Salle, as the top seeds with automatic Final Four tickets, are out to capitalize on their long layoff for fresher legs while Letran and Perpetual march into the battlefield with rousing momentum on other sides.

Letran nipped Centro Escolar University, 94-87, with an overtime win as Perpetual repulsed PSP, 97-90, in the quarterfinals. Both were armed with twice-to-beat advantages for quick businesses but will enter the next round with little to no breather.

But they are determined to stand their ground against the giants.

“We’re very excited kasi San Beda makakalaban namin. They’re the No. 1 team and that motivates. We need to stick on our defense,” said coach Rensy Bajar on a Final Four stint in his first year with the Knights.

The Red Lions, who topped the elims, and the powerhouse Green Archers, vowed to play as good as advertised.

“We know that there will be ups and downs but it’s a chance for us to get better,” said Green Archers assistant Gian Nazario, who has been given the D-League coaching chores by Topex Robinson. — John Bryan Ulanday

Alcaraz hunts down Tsitsipas to set up Djokovic showdown

PARIS — World number one Carlos Alcaraz survived a third-set wobble to cruise past fifth seed Stefanos Tsitsipas of Greece 6-2 6-1 7-6(5) on Tuesday and earn a spot in the French Open last four.

For almost three sets Mr. Alcaraz played jaw-dropping tennis, having pulverized his opponent, who staged a brief comeback to force a tiebreak in the third.

The 20-year-old will now face third seed Novak Djokovic in a mouth-watering semifinal on Friday with the Spaniard chasing a second Grand Slam title after winning the US Open crown last year and the Serbian veteran on course for a record-breaking 23rd men’s singles major.

Mr. Alcaraz did not take long to put Mr. Tsitsipas under pressure, breaking him on his second service game.

The 24-year-old Greek, still searching for an elusive first Grand Slam title, could not match Mr. Alcaraz’s power and precision and the Spaniard broke him to love with a sensational running forehand down the line to go 5-2 up.

He wrapped up the first set, winning 12 of the last 14 points played, but he was equally relentless in the second to break Mr. Tsitsipas in the very first game to love.

Like a bear hunting down prey, Mr. Alcaraz did not let off, forcing the Greek into the net with superb and constant drop shots or stretching him wide on his backhand.

He added another break to his rapidly growing collection to go 4-1 up and even the crowd, clearly backing Mr. Tsitsipas, could not spark a comeback as Mr. Alcaraz bagged the second set a little later with his dazed opponent double-faulting.

It was a similar story in the third as he earned a quick break and took a 5-1 lead, before he squandered three match points. Mr. Tsitsipas launched a four-game comeback but Mr. Alcaraz ended it on his fifth match point. — Reuters

PGA Tour reaches surprise merger deal with Saudis, LIV Golf

THE PGA Tour, DP World Tour and LIV Golf agreed to merge into a single, for-profit entity, the golf conglomerate announced Tuesday.

The decision is likely to transform the world of professional golf given the stakes and personalities involved.

The agreement puts an end to the pending litigation between the legacy tours and the Saudi-backed LIV league that would have gone to court in California next year, and it caps off a saga that caused turmoil in the sport for close to two years.

Saudi Arabia’s Public Investment Fund (PIF) — which provided LIV with enough money to make star players massive guaranteed offers and pay record tournament purses to lure them away from the PGA Tour — will make a capital investment into the combined entity as part of the agreement.

PIF governor Yasir Al-Rumayyan will be the chairman of the new entity, and PGA Tour commissioner Jay Monahan will be its chief executive officer. The PGA Tour will appoint a majority of a new board of directors and hold the majority voting interest. PIF, meanwhile, will have exclusive rights for further investments and a right of first refusal on any new capital injected into the entity.

While the new entity will be a for-profit organization, PGA Tour, Inc. will remain as a 501(c)(6) tax-exempt organization.

The tours also said in their joint announcement that players who were indefinitely suspended by the PGA Tour or the DP World Tour for playing in LIV events could have a path to return, as the organizations “will work cooperatively and in good faith to establish a fair and objective process for any players who desire to re-apply for membership” to the legacy tours.

“After two years of disruption and distraction, this is a historic day for the game we all know and love,” Mr. Monahan said in a statement. “This transformational partnership recognizes the immeasurable strength of the PGA Tour’s history, legacy and pro-competitive model and combines with it the DP World Tour and LIV — including the team golf concept — to create an organization that will benefit golf’s players, commercial and charitable partners and fans.

“Going forward, fans can be confident that we will, collectively, deliver on the promise we’ve always made — to promote competition of the best in professional golf and that we are committed to securing and driving the game’s future.”

While Mr. Monahan’s official statement mentioned LIV’s team format, the commissioner had few answers when meeting with players and press later in the day, saying only a “framework agreement” was in place and most details were not ironed out. He said he believes LIV Golf in its current state would not continue after it finishes its current season.

Mr. Monahan sat side by side with Al-Rumayyan for an interview with CNBC on Tuesday morning. Though Mr. Monahan had been critical of LIV’s Saudi ties in the past, he said Tuesday that the capital PIF can provide is “an opportunity we’ve never had before.”

But PGA Tour players expressed surprise and disgust on social media, saying they were not informed the news was coming ahead of time. A memo was sent to membership later Tuesday morning, and Mr. Monahan met with players at 4 p.m. at the RBC Canadian Open in Toronto.

“Any time you’re taking money from the Saudi Public Investment Fund, that’s probably a difficult decision to make, and it’s one that Jay and the team definitely struggled with for a long time and ultimately came to the decision that they’re gonna take the investment and try to get some of the disruption out of the game,” PGA Tour winner Brendon Todd told Golf Channel.

PGA Tour defenders like Tiger Woods and Northern Ireland’s Rory McIlroy, the latter of whom sits on the tour’s policy board, were only informed of the decision at the last minute. Mr. Monahan said he would still seek those players’ input going forward.

The decision to merge comes less than two weeks before the third major championship of the men’s golf season, the US Open. For parts of 2022 and 2023, the majors were the only times that LIV Golf players commingled with the PGA and DP World Tour players.

Animosity grew between the factions, with Phil Mickelson often speaking as the de facto player leader for LIV and directing accusations of collusion at the PGA Tour and other governing bodies, and Mr. McIlroy fiercely defending the PGA Tour and criticizing LIV frequently.

Mr. McIlroy had not yet commented on the merger but was scheduled to meet with the press on Wednesday as the defending champion of the Canadian Open.

Mickelson, for his part, tweeted “Awesome day today” with a smiling emoji. — Reuters

Saudi champions Al Ittihad sign ‘global football icon’ Benzema

BALLON d’Or winner Karim Benzema became the latest big-name player to head to Saudi Arabia as he joined Al Ittihad as a free agent, the club said on Tuesday, after the French striker’s departure from Real Madrid.

Mr. Benzema, who ended a trophy-laden 14 years at Real this week, joins the Saudi Arabian champions on a three-year deal and will wear the number nine shirt.

Mr. Benzema follows his former Real team mate Cristiano Ronaldo to the Gulf country after the Portugal forward signed a 2-1/2 year contract estimated by media to be worth more than €200 million ($213.78 million) with Al Nassr in December.

Having joined Real in 2009 from Olympique Lyonnais, Mr. Benzema became the spearhead of the club’s attack after Ronaldo left to Juventus in 2018, winning the Champions League five times and the LaLiga title four times.

He had his best season with Real in the 2021-22 campaign when he scored 44 goals in all competitions to lead the club to a record-extending 14th European title as well as the LaLiga crown.

Early in 2021 he earned a recall from France manager Didier Deschamps to the national team for the first time in six years, after falling out of favor due to his alleged involvement in the Mathieu Valbuena sex tape scandal.

The 35-year-old won the Ballon d’Or award for the best men’s player in the world last year and he looked set to stay at the Spanish club for one more year, after a 2022-23 season in which he struggled with injuries and missed out on France’s World Cup squad in Qatar.

However, an offer estimated by media to be worth more than €100 million from Saudi Arabia made him rethink his decision to stay in Spain for a final season, with the striker deciding to void the one-year extension clause he had in his contract.

Al-Ittihad last month clinched the Saudi Pro League title for the first time since 2009. — Reuters

Tens of thousands at risk from floods after Ukraine dam slumps

KHERSON, Ukraine — About 42,000 people were at risk from flooding in Russian- and Ukrainian-controlled areas along the Dnipro River after a dam collapsed, as the United Nations aid chief warned of “grave and far-reaching consequences.”

Ukraine and Russia blame each other for the collapse of the massive dam on Tuesday, which sent floodwaters across a swathe of the war zone and forced thousands to flee.

Ukraine said Russia committed a deliberate war crime in blowing up the Soviet-era Nova Kakhovka dam, which powered a hydroelectric station. The Kremlin blamed Ukraine, saying it was trying to distract from the launch of a major counteroffensive Moscow says is faltering.

United Nations (UN) aid chief Martin Griffiths told the Security Council that the dam breach “will have grave and far-reaching consequences for thousands of people in southern Ukraine on both sides of the front line through the loss of homes, food, safe water and livelihoods.”

“The sheer magnitude of the catastrophe will only become fully realized in the coming days,” he said.

No deaths were initially reported, but US spokesman John Kirby said the flooding had probably caused “many deaths”.

Ukrainian officials estimated about 42,000 people were at risk from the flooding, which is expected to peak on Wednesday.

In Kherson city, about 60 kms (37 miles) downstream from the dam, water levels rose by 3.5 meters (11-1/2 feet) on Tuesday, forcing residents to slog through water up to their knees to evacuate, carrying plastic bags full of possessions and small pets in carriers.

“Everything is submerged in water, all the furniture, the fridge, food, all flowers, everything is floating. I do not know what to do,” Oskana, 53, said when asked about her house.

Buses, trains and private vehicles were marshalled to carry people to safety in about 80 communities threatened by flooding.

In Kherson, cracks of incoming artillery sent people trying to flee running for cover on Tuesday. In the evening, Reuters reporters heard four incoming artillery blasts near a residential neighborhood where civilians were evacuating.

Residents in flooded Nova Kakhovka on the Russian-controlled bank of the Dnipro told Reuters that some had decided to stay despite being ordered out.

“They say they are ready to shoot without warning,” said one man, Hlib, describing encounters with Russian troops.

The Kazkova Dibrova zoo on the Russian-held riverbank was completely flooded and all 300 animals were dead, a representative said via the zoo’s Facebook account.

“More and more water is coming every hour. It’s very dirty,” Yevheniya, a woman in Nova Kakhovka , said by telephone.

Washington said it was uncertain who was responsible, but Deputy US Ambassador to the UN Robert Wood told reporters it would not make sense for Ukraine to destroy the dam and harm its own people.

The Geneva Conventions ban targeting dams in war because of the danger to civilians.

Ukrainian President Volodymyr Zelensky said in a video address that his prosecutors had already approached the International Criminal Court about the dam. Earlier, he claimed on Telegram that Russian forces blew up the power plant from inside.

“Residents are sitting on the roofs of their homes waiting to be rescued…. This is a Russian crime against people, nature and life itself,” Oleksiy Kuleba, a senior official on Zelensky’s staff, said on Telegram.

The dam supplies water to a wide area of southern Ukrainian farmland, including the Russian-occupied Crimean Peninsula, as well as cooling the Russian-held Zaporizhzhia nuclear plant.

The UN nuclear watchdog said Zaporizhzhia, upriver on the reservoir, should have enough water to cool its reactors for “some months” from a separate pond.

As Kyiv prepares for a long-awaited counteroffensive, some military analysts said the flooding could benefit Russia by slowing or limiting any potential Ukrainian advance along that part of the front line. — Reuters

About 83 bodies remain unidentified four days after Indian rail crash

BALASORE, India — Indian authorities made fervent appeals to families on Tuesday to help identify 83 unclaimed bodies kept in hospitals and mortuaries after the death toll in the country’s deadliest rail crash in over two decades rose to 288.

The disaster struck on Friday, when a passenger train hit a stationary freight train, jumped the tracks and hit another passenger train passing in the opposite direction near the district of Balasore in the eastern state of Odisha.

Bijay Kumar Mohapatra, health director of Odisha, told Reuters that authorities were trying to source iced containers to help preserve the unclaimed bodies.

“Unless they are identified, a postmortem cannot be done,” Mohapatra said, explaining that under Odisha state regulations, no autopsy can be conducted on an unclaimed body until 96 hours have passed.

The state government revised the death toll upwards to 288, from 275 earlier, and said that 205 dead bodies have been identified and handed over. The remaining 83 will be preserved, Odisha Chief Secretary Pradeep Jena said.

At state capital Bhubaneswar’s biggest hospital, the All India Institute of Medical Sciences (AIIMS), large television screens displayed pictures of the dead to help desperate families who are scouring hospitals and mortuaries for friends and relatives.

A detailed list was made of distinguishing features for each body, but relatives could first view photographs, however gruesome, to identify missing loved ones, a senior police official told Reuters.

The trains had passengers from several states and officials from seven states were in Balasore to help people claim the bodies and take the dead home, the police official added.

MISSING BODIES
However, all the help proved inadequate for some families.

Niranjan Patra was shocked when authorities informed him that the body of his aunt, Manju Mani Patra, who had traveled on the Coromandel Express, seemed to have been handed over to someone else.

Mr. Patra said his family identified her through the photographs of the deceased released by the government, but they were unable to find her body in any of the hospitals in Bhubaneswar.

“We don’t want the compensation, we want to perform her last rites. No one is able to tell us where her body is,” Mr. Patra said, standing at the help desk at Balasore railway station.

A forlorn Parbati Hembrum, from West Bengal’s Hooghly district, also stood near the help desk, looking for information on her son Gopal.

The 20-year-old had traveled in the Coromandel Express with three others from their village, but while the other three returned home, Gopal has not.

Tarapada Tudu, standing next to his relative Ms. Hembrum, said Gopal was admitted to Balasore hospital after the accident but when they looked for him there, the hospital said he was released the same day after being treated for minor injuries.

But, filled with dread over the lack of contact with Gopal, Mr. Tudu said he and Ms. Hembrum will travel to Bhubaneswar to look for him among the dead.

There were also incidents of double claims for dead bodies.

“In those cases we are going for DNA sampling and matching. We have already preserved the DNA of the dead bodies,” senior police official Prateek Singh told reporters.

A team from the federal Central Bureau of Investigation reached the site on Tuesday to start a probe into the cause of the disaster. A separate inquiry by the railway’s safety commission started on Monday.

A signal failure was the likely cause of the disaster, according to preliminary findings, which indicated the Coromandel Express, heading southbound to Chennai from Kolkata, moved off the main line and entered a loop track — a sidetrack used to park trains — at 128 kph (80 mph), crashing into the stationary freight train.

That crash caused the engine and first four or five coaches of the Coromandel Express to jump the tracks, topple and hit the last two coaches of the Yeshwantpur-Howrah train heading in the opposite direction at 126 kph on the second main track. — Reuters

Gunman shoots 2 dead, wounds 5 others at Virginia High School graduation

JANNOON028 — FREEPIK

A MAN armed with four handguns killed two people and wounded five others when he fired into a crowd outside a high school graduation ceremony in Richmond, Virginia, on Tuesday, police said.

Police said they arrested one suspect, a 19-year-old man who knew one of the victims and shot at him amid the crowd that had just emerged from the Huguenot High School’s commencement ceremony inside a theater on the campus of Virginia Commonwealth University.

The suspect was likely to be charged with two counts of second-degree murder in addition to other offenses, interim Richmond Police Chief Rick Edwards told a press conference.

Mr. Edwards called the shooter’s behavior “disgusting and cowardly,” since his dispute appeared to be with just one person.

“When you have a crowd like this, innocent people are going to be caught up in the mayhem, and that’s what happened today. “ Mr. Edwards said. “Obviously, this should have been a safe space… It’s just incredibly tragic that someone decided to bring a gun to this incident and rain terror on our community.”

The United States has grown accustomed to mass shootings in public places such as schools, shopping centers and churches.

The mass shooting was the country’s 279th in the first 157 days of 2023, according to the Gun Violence Archive, using the definition of four or more people are shot or killed in a single incident, not including the shooter.

The deceased were men aged 18 and 36, Mr. Edwards said. He did not confirm a WWBT television news report that the victims were father and son. Among the wounded, a 31-year-old man suffered life-threatening injuries and four other males aged 14, 32, 55 and 58 were expected to survive, Edwards said.

In addition, a 9-year-old girl was struck by a car in the chaos that ensued, and multiple other people were injured in falls or suffered from anxiety, Mr. Edwards said.

The suspect fled the scene on foot and was captured in possession of four handguns, three of which may have been fired, he said, stressing that it was too early in the investigation to be certain. — Reuters

For Musk and other foreign CEOs visiting China, silence is golden

SHANGHAI/BEIJING — A veritable parade of overseas CEOs including Tesla’s Elon Musk and Goldman Sachs’ David Solomon have made their way to a reopened China in the last few months.

One notable common strand: they’ve not talked much in public about their trips, which have mostly consisted of meetings with government officials, local staff and business partners. Media events and other public engagements, once frequent before the pandemic, are now rare.

Even Mr. Musk, known for his unreserved banter on Twitter, was uncharacteristically silent on a whirlwind trip last week.

In 2020, the billionaire celebrated the delivery of the first cars made at Tesla’s Shanghai plant with a dance on stage that was open to the press. This time around, the media were not invited to cover his plant visit.

And while Mr. Musk has mentioned the trip in two posts since leaving, he didn’t tweet once while in China.

Goldman’s Mr. Solomon has similarly been more low-key. In 2019, he gave media interviews and participated in several forums. But during his trip in March this year, his only known engagements were closed-door meetings with regulators, China’s sovereign wealth fund and at a university.

The lack of information from Western CEOs and their companies about the trips to China can be attributed to wariness given that US-Sino political and trade tensions have worsened to their lowest point in decades, said senior staff at chambers of commerce and trade associations.

President Xi Jinping’s increasing focus on national security — in particular a recent crackdown on consultancies and due diligence firms — has also left many foreign companies uncertain where they might step over the line of the law, they said.

Noah Fraser, managing director of the Canada China Business Council, said visiting executives are no longer chasing new business opportunities but are concentrating on maintaining existing relationships and will often stipulate no press, big dinners or speaking opportunities.

They appear to be keeping “their heads down and will have private lunches where they can learn from people on the ground what’s happening,” he said.

Before traveling to China, US chief executive officers (CEOs) have been seeking advice about how Beijing’s expansion of its counter-espionage law could affect them, according to the head of a US trade association who declined to be identified, citing the sensitive nature of doing business in China now.

The CEOs also want to know how to deal with Chinese government officials and with questions once the trip becomes public, the association head said, adding it was not in their interest to speak to media and run the risk of being asked to comment on stances taken by Washington and Beijing.

The EU Chamber of Commerce said in a statement that companies operating in China have always exercised a certain level of caution and were now adapting to changes in areas that might be deemed sensitive.

Tesla did not respond to a request for comment while Goldman declined to comment.

China’s foreign ministry said in a statement the numerous visits from US CEOs were a “vote of confidence” in the Chinese economy. That their trips were relatively low-key stemmed from what it called the US government’s “wrong policy” of containing China, it said.

With respect to concerns about its counter-espionage law, it was China’s right to safeguard national security through domestic legislation, it added.

The US Department of Commerce declined to comment.

SHOWING COMMITMENT
While US President Joseph R. Biden said last month he expected a thaw in frosty relations with Beijing “very shortly,” there is no denying that tensions have soared this year with flashpoints including US export curbs on semiconductors and data security concerns.

That said, after three years of harsh COVID curbs that hampered entry into China, foreign CEOs appear eager to get the lay of the land.

Those traveling here in recent months have included Apple’s Tim Cook, Intel’s Patrick Gelsinger, General Motors’ Mary Barra, Blackstone’s Stephen Schwarzman and JPMorgan’s Jamie Dimon.

Sixty-seven foreign business leaders attended the high-profile China Development Forum this year, although that is still 20 fewer than in 2019.

“The idea is that you have to show sufficient commitment to the China market if you’re playing there,” said Christopher Johnson, president of China Strategies Group, a political risk consultancy.

At the same time, the CEOs need to do that “without setting off alarm bells with the US government, and it’s a very difficult task,” he added.

JPMorgan and Blackstone declined to comment. Apple, General Motors and Intel did not respond to requests for comment.

The few known comments by foreign CEOs whilst they were in China have been in line with Mr. Biden’s stance that he is not seeking to decouple the world’s two largest economies.

The Foreign Ministry quoted Mr. Musk as saying he was opposed to a decoupling of the US and China economies which he described as “conjoined twins.”

JPMorgan’s Jamie Dimon told the JPMorgan Global China Summit last week he favored East-West “de-risking” rather than decoupling, according to a source from the event.

Daniel Russel, vice president for international security and diplomacy at the Asia Society Policy Institute, said the difference between de-risking and decoupling was a subtle but important one.

It “makes clear that the issue is managing the risk of dependency on China rather than a determination to separate the world into two competing spheres,” he said. — Reuters

US tightens crackdown on crypto with lawsuits against Coinbase, Binance

ANDRÉ FRANÇOIS MCKENZIE-UNSPLASH

NEW YORK — The top US securities regulator sued cryptocurrency platform Coinbase on Tuesday, the second lawsuit in two days against a major crypto exchange, in a dramatic escalation of a crackdown on the industry and one that could dramatically transform a market that has largely operated outside regulation.

The US Securities and Exchange Commission (SEC) on Monday took aim at Binance, the world’s largest cryptocurrency exchange. The SEC accuses Binance and its chief executive officer Changpeng Zhao of operating a “web of deception”.

If successful, the lawsuits could transform the crypto market by successfully asserting the SEC’s jurisdiction over the industry which for years has argued that tokens do not constitute securities and should not be regulated by the SEC.

“The two cases are different, but overlap and point in the same direction: the SEC’s increasingly aggressive campaign to bring cryptocurrencies under the jurisdiction of the federal securities laws,” said Kevin O’Brien, a partner at Ford O’Brien Landy and a former federal prosecutor, adding, however, that the SEC has not previously taken on such major crypto players.

“If the SEC prevails in either case, the cryptocurrency industry will be transformed.”

In its complaint filed in Manhattan federal court, the SEC said Coinbase has since at least 2019 made billions of dollars by operating as a middleman on crypto transactions, while evading disclosure requirements meant to protect investors.

The SEC said Coinbase traded at least 13 crypto assets that are securities that should have been registered, including tokens such as Solana, Cardano and Polygon.

Coinbase suffered about $1.28 billion of net customer outflows following the lawsuit, according to initial estimates from data firm Nansen. Shares of Coinbase’s parent Coinbase Global, Inc. closed down $7.10, or 12.1%, at $51.61 after earlier falling as much as 20.9%. They are up 46% this year.

Paul Grewal, Coinbase’s general counsel, in a statement said the company will continue operating as usual and has “demonstrated commitment to compliance.”

Oanda senior market analyst Ed Moya said the SEC “looks like it’s playing Whac-A-Mole with crypto exchanges,” and because most exchanges offer a range of tokens that operate on blockchain protocols targeted by regulators, “it seems like this is just the beginning.”

Leading cryptocurrency bitcoin BTC=BTSP has been a paradoxical beneficiary of the crackdown.

After an initial plunge to a nearly three-month low of $25,350 following the Binance suit, bitcoin rebounded by more than $2,000, exceeding the previous day’s high. It was trading just below $27,000 at 0410 GMT.

“The SEC is making life nearly impossible for several altcoins and that is actually driving some crypto traders back into bitcoin,” explained Oanda’s Mr. Moya.

BROKER, EXCHANGE CRACKDOWN
Securities, as opposed to other assets such as commodities, are strictly regulated and require detailed disclosures to inform investors of potential risks. The Securities Act of 1933 outlined a definition of the term “security,” yet many experts rely on two US Supreme Court cases to determine if an investment product constitutes a security.

SEC Chair Gary Gensler has long said tokens constitute securities and has steadily asserted its authority over the crypto market, focusing initially on the sale of tokens and interest-bearing crypto products. More recently, it has taken aim at unregistered crypto broker dealer, exchange trading and clearing activity.

While a few crypto companies are licensed as alternative system trading systems, a type of trading platform used by brokers to trade listed securities, no crypto platform operates as a full-blown stock exchange. The SEC also this year sued Beaxy Digital and Bittrex Global for failing to register as an exchange, clearing house and broker.

“The whole business model is built on a noncompliance with the U.S. securities laws and we’re asking them to come into compliance,” Mr. Gensler told CNBC.

Crypto companies refute that tokens meet the definition of a security, say the SEC’s rules are ambiguous, and that the SEC is overstepping its authority in trying to regulate them. Still, many companies have boosted compliance, shelved products and expanded outside the country in response to the crackdown.

Kristin Smith, CEO of the Blockchain Association trade group, rejected Mr. Gensler’s efforts to oversee the industry.

“We’re confident the courts will prove Chair Gensler wrong in due time,” she said.

Founded in 2012, Coinbase recently served more than 108 million customers and ended March with $130 billion of customer crypto assets and funds on its balance sheet. Transactions generated 75% of its $3.15 billion of net revenue last year.

Tuesday’s SEC lawsuit seeks civil fines, the recouping of ill-gotten gains and injunctive relief.

On Monday, the SEC accused Binance of inflating trading volumes, diverting customer funds, improperly commingling assets, failing to restrict US customers from its platform, and misleading customers about its controls.

Binance pledged to vigorously defend itself against the lawsuit, which it said reflected the SEC’s “misguided and conscious refusal” to provide clarity to the crypto industry.

Customers pulled around $790 million from Binance and its US affiliate following the lawsuit, Nansen said.

On Tuesday, the SEC filed a motion to freeze assets belonging to Binance.US, Binance’s US affiliate. The holding company of Binance is based in the Cayman Islands.

“It’s important to note that recent regulatory actions are aimed at ensuring that companies operating in the cryptocurrency industry are complying with securities laws and protecting investors — this will always be their goal,” said Joshua Chu, group chief risk officer at blockchain technology firms XBE, Coinllectibles and Marvion.

“These events will ultimately lead to a more stable and trustworthy industry, which could help to attract more institutional investors and mainstream adoption.” — Reuters

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