TAIPEI – Taiwan will issue new security guidelines next week in an updated civil defense handbook that, for the first time, will instruct citizens on what to do if they see enemy soldiers and clarifies that any claims of Taiwan’s surrender should be considered false.

The handbook represents democratic Taiwan’s latest effort to prepare its population for potential emergencies in the face of escalating military pressure from China, which views the island as its own territory.

The bright red-orange handbook, designed for people of all ages, features cartoon characters representing Taiwan’s population on the cover and across its 29 pages, and tells Taiwanese to “protect each other and safeguard our beloved home”. Reuters reviewed a copy before publication.

“Whether it be natural disasters, epidemics, extreme weather, or the threat of Chinese invasion, the challenges we face have never ceased,” the handbook says, offering guidance on how to find bomb shelters via smartphone apps and tips for preparing emergency kits for family members, including pets.

Lin Fei-fan, Deputy Secretary-General of Taiwan’s National Security Council who oversaw the updated handbook, said Taipei has taken inspiration from survival guides planned by fellow democracies including the Czech Republic and France.

“China’s ambitions for authoritarian expansion are being felt by countries around the world,” Lin said, adding Russia’s invasion of Ukraine has also lent new urgency.

“The global situation – whether in Europe or the Indo-Pacific region – is not a distant concern. It is right at our doorstep.”

China’s Taiwan Affairs Office did not respond to a request for comment. China has never renounced the use of force to bring Taiwan under its control and has blamed Taiwan President Lai Ching-te for raising tensions, saying he is a “separatist”.

Lai rejects Beijing’s territorial claims and says only Taiwan’s people can decide their future.

MILITARY SCENARIOS
The handbook, the first edition of which was published in 2022, gives a list of scenarios Taiwan might face, from sabotage of undersea cables and cyber attacks and inspections of Taiwanese vessels by an “enemy nation” as a prelude to conflict, to an all-out invasion.

The handbook highlights the danger of ongoing misinformation campaigns against Taiwan, saying “hostile foreign forces” may exploit misinformation to divide and weaken Taiwan’s resolve with the help of deepfake videos and local collaborators.

“In the event of a military invasion of Taiwan, any claim that the government has surrendered or that the nation has been defeated is false,” it says.

At a time of war when a suspected enemy presence is detected, people are advised to promptly leave the area or take cover in a safe location away from windows, and refrain from taking photos or videos and uploading them, it adds.

“That could compromise military movements, which is detrimental to our defensive operations,” said Shen Wei-chih, director at the Taiwan military’s All-out Defense Mobilization Agency.

The handbook also pointed to potential security risks from China-made tech devices such as cameras and applications, including China’s DeepSeek AI and social media platforms WeChat and TikTok.

“In times of crisis, these devices could be exploited by the enemy,” it added.

None of the Chinese-owned companies responded to requests for comment.

The handbook also offers tips on how to talk to children about an emergency.

“Many parents actually don’t know how to discuss a potential crisis with their children,” said Lin.

“The goal isn’t to make everyone feel afraid. Rather, all the information is intended to help people develop better coping strategies when a real crisis occurs.” — Reuters

DETROIT – A battery plant co-owned by Hyundai Motor 005380.KS is facing a minimum startup delay of two to three months following an immigration raid last week, Hyundai CEO Jose Munoz said on Thursday.

The Georgia plant, which is operated through a joint venture between Hyundai and South Korea’s LG Energy Solution, was at the center of the largest single-site enforcement operation in the US Department of Homeland Security’s history last week.

Munoz, in his first public comments since the raid, said he was surprised when he heard the news and immediately inquired if Hyundai workers were involved. He said the company discovered that the workers at the center of the raid were mainly employed by suppliers of LG.

“For the construction phase of the plants, you need to get specialized people. There are a lot of skills and equipment that you cannot find in the United States,” Munoz said on the sidelines of an automotive conference in Detroit.

The plant, part of a $7.6 billion factory complex to make battery-powered models, was slated to come online later this year.

About 475 workers, including more than 300 South Koreans, were arrested, according to US immigration officials. The raid was conducted over suspicions about the “unlawful” visa and immigration status of workers at the site, US officials have said.

A plane carrying the workers is flying them home from Atlanta, after Seoul and Washington agreed to their release and to discuss setting up a visa program for workers needed at such sites being constructed by South Korean businesses.

Hyundai Motor Group Executive Chair Euisun Chung said on Thursday he was “really worried about that incident” but was relieved the workers were returning home to South Korea.

“Maybe our government and the US government, they are working closely, and the visa regulation is very complicated,” Chung said at the Detroit conference. “And I hope we can make it together a better system.”

It is typical for an automotive battery plant to employ these workers as it is getting off the ground, Munoz said.

Munoz said Hyundai will source batteries from other plants as it waits for the LG plant to start up, including from a Georgia plant co-owned with Korean battery-maker SK On.

Fallout from the raid has cascaded across the country. Reuters first reported that workers at other LG plants, including those co-owned by GM, were asked to return home. — Reuters

WASHINGTON – US consumer prices increased by the most in seven months in August amid higher costs for housing and food, but a surge in first-time applications for jobless benefits last week kept the Federal Reserve on track to cut interest rates next Wednesday.

The larger-than-expected rise in the Consumer Price Index reported by the Labor Department on Thursday resulted in the biggest year-on-year increase in inflation since January. Higher inflation and softening labor market conditions fanned fears of stagflation, and pose a dilemma for the US central bank, beyond Wednesday’s anticipated rate decision.

The broad increase in inflation partly reflected businesses passing on higher costs from President Donald Trump’s sweeping tariffs to consumers and a rebound in demand for travel. Tourist traffic to the US tanked during the spring and early summer amid boycotts and the White House’s immigration crackdown.

“Even though a September cut is a fait a compli, the future trend looks less certain,” said Sung Won Sohn, a finance and economics professor at Loyola Marymount University.

“The interaction of rising inflation and softening employment creates a difficult policy dilemma for the Fed. Cutting rates too quickly risks embedding tariff-driven inflation, while delaying cuts risks amplifying unemployment.”

The CPI rose 0.4% last month, the biggest gain since January, after increasing 0.2% in July, the Labor Department’s Bureau of Labor Statistics said. The CPI was driven by a 0.4% jump in the cost of shelter. Food prices increased 0.5%, with prices at the supermarket soaring 0.6%.

Fruit and vegetable prices increased 1.6% as tomatoes surged 4.5%, the biggest gain since January 2020. Apples and bananas were also more expensive. Beef prices rose 2.7% and increased 13.9% from a year ago. Coffee prices jumped 3.6% and were up 20.9% from a year ago. Tariffs likely accounted for some of these increases. Past droughts that decimated the national herd were also probably behind the higher beef prices.

Labor shortages at farms as the Trump administration rounds up undocumented migrants for deportation were also adding to higher food prices, economists said. Gasoline prices rose 1.9%.

In the 12 months through August, the CPI advanced 2.9%, the largest increase since January, after climbing 2.7% in July.

Economists polled by Reuters had forecast consumer prices would rise 0.3% in August and increase 2.9% on a year-over-year basis.

Financial markets have fully priced in a quarter-percentage-point reduction in rates next Wednesday, with the Fed expected to deliver two similar-sized additional cuts this year.

The US central bank, which tracks the Personal Consumption Expenditures (PCE) price indexes for its 2% inflation target, paused its easing cycle in January because of uncertainty over the inflationary impact of import duties.

The pass-through from import duties has been gradual, but businesses have now depleted their pre-tariff inventories. Business surveys have for some time been signaling imminent price increases. Economists were divided on whether the pass-through from tariffs would be a one-off event or prolonged.

Stocks on Wall Street rose. The dollar slipped against a basket of currencies. US Treasury yields fell.

THE INCREASE IN INFLATION WAS BROAD
Excluding the volatile food and energy components, the CPI rose 0.3% after a similar gain in July. The rise in the so-called core CPI inflation was broad. Core goods prices increased 0.3%, with tariff-exposed products like new motor vehicles, apparel and household furnishings and operations costing more.

Used cars and trucks prices rose 1.0%. The cost of services increased 0.3% as airline fares soared 5.9%, and hotel and motel room prices surged 2.3%. Owners’ equivalent rent rose 0.4%. In the 12 months through August, the core CPI inflation increased 3.1%, matching July’s rise. Healthcare costs fell as a recent sharp rise in dental services reversed.

“We suspect the broadening cost burden from tariffs will keep the monthly pace of goods inflation elevated through early next year, but the spillover into services inflation should be limited by the weakness in the jobs market, choosier consumers and anchored inflation expectations,” said Sarah House, a senior economist at Wells Fargo.

Economists estimated that core PCE inflation increased 0.2% in August after rising 0.3% for two straight months, which would translate to an annual increase of 3.1%. That would be an acceleration from a 2.9% increase in July.

The labor market’s struggles were underscored by a separate report from the Labor Department showing initial claims for state unemployment benefits jumped 27,000 to a seasonally adjusted 263,000 for the week ended September 6, the highest level since October 2021.

But the data could have been impacted by the Labor Day holiday. There was also an unexplained 15,304 surge in unadjusted applications in Texas. Economists speculated some people could have incorrectly filed regular claims for the state’s Disaster Unemployment Assistance (DUA) following the July floods that was extended to the end of September.

“The magnitude of the Texas spike looks similar to a natural disaster. One possibility is that it is related to the early July flooding in Texas,” said Abiel Reinhart, an economist at J.P. Morgan. “DUA applications are not counted in the regular state jobless claims figures, but what is possible is that many people filed a normal claim by mistake.”

Still, labor market conditions have weakened. The number of people receiving benefits after an initial week of aid was unchanged at 1.939 million during the week ending August 30, the claims report showed.

The government said this week that nonfarm payrolls could have been overstated by 911,000 jobs in the 12 months through March. That followed the release last Friday of the monthly employment report, which showed job growth almost stalled in August and the economy shed jobs in June for the first time in four and a half years amid tariff uncertainty.

“Even if the increase in initial claims overstates any renewed weakness in the labor market, claims have been drifting higher,” said Nancy Vanden Houten, lead US economist at Oxford Economics. — Reuters