More stories

  • in

    US Congress committee investigating Musk-owned Starlink over Myanmar scam centres

    A powerful bipartisan committee in the US Congress says it has begun an investigation into the involvement of Elon Musk’s Starlink satellite business in providing internet access to Myanmar scam centres, blamed for swindling billions from victims across the world.The move comes as it was revealed that large numbers of Starlink dishes began appearing on scam-centre roofs in Myanmar around the time of a crackdown in February that was supposed to eradicate the centres, according to a investigation by Agence France-PresseStarlink has come from nowhere to become the war-torn country’s biggest internet provider in three months, data from the APNIC Asian regional internet registry shows.SpaceX, Starlink’s owner, has not replied to AFP requests for comment.The US Congress joint economic committee told the news agency it began an investigation in July into Starlink’s involvement with the scam centres. The committee has the power to make Musk testify before it.China, Thailand and Myanmar forced pro-junta Myanmar militias who protect the centres into promising to “eradicate” the compounds in February. They freed about 7,000 people – most Chinese citizens – from the brutal call centre-style system, which the UN says runs on forced labour and human trafficking.Many workers said they were beaten and forced to work long hours by scam bosses who target victims across the globe with telephone, internet and social media cons.Senator Maggie Hassan, the leading Democrat on the US congressional committee, has called on Musk to block the Starlink service to the fraud factories.“While most people have probably noticed the increasing number of scam texts, calls and emails, they may not know that transnational criminals halfway across the world may be perpetrating these scams by using Starlink internet access,” she said.The senator wrote to Musk in July demanding answers to 11 questions about Starlink’s role.Former California prosecutor Erin West, who now heads the Operation Shamrock group campaigning against the centres, said: “It is abhorrent that an American company is enabling this to happen.”While still a cybercrime prosecutor, she warned Starlink in July 2024 that the mostly Chinese crime syndicates that run the centres were using its technology, but received no reply.Americans are among the top targets of south-east Asia scammers, the US treasury department said, losing an estimated $10bn last year, up 66% in 12 months.Up to 120,000 people may be being “forced to carry out online scams” in the Myanmar centres, according to a UN report in 2023.On the Thailand-Myanmar border, new buildings have been springing up inside the heavily guarded compounds around Myawaddy at a fast pace, with some festooned with Starlink receivers, satellite images and AFP drone footage show.Analysis of satellite images from Planet Labs PBC found dozens of buildings going up or being altered in the largest of the compounds, KK Park, between March and September. More

  • in

    ‘Americans are democracy’s equivalent of second-generation wealth’: a Chinese journalist on the US under Trump

    On a Friday night in late May, Wang Jian was getting ready to broadcast. It was pouring outside, and he was sitting in the garage apartment behind his house, just outside Boston, eating dinner. “I am very sensitive to what Trump does,” Wang was telling me, in Mandarin, waving a fork. “When Trump holds a cabinet meeting, he sits there and the people next to him start to flatter him. And I think, isn’t this the same as Mao Zedong? Trump sells the same thing: a little bit of populism, plus a little bit of small-town shrewdness, plus a little bit of ‘I have money.’”Wang was sitting next to a rack of clothing – the shirts and jackets the 58-year-old newsman wears professionally – and sipping a seemingly bottomless cup of green tea that would eventually give way to coffee. By 11pm, he would walk across the room and snap on a set of ring lights, ready to carry on an unbroken string of chatter for a YouTube news programme that he calls “Wang Jian’s Daily Observations”. It was a slow news night but he would end up talking until nearly 1am. This was his second broadcast of the day. Different time zones, he explained to me, different audiences.Wang, who has more than 800,000 subscribers on YouTube, is representative of a small but influential part of the Mandarin-language media landscape. He is part of an exodus of media professionals who have left Hong Kong and mainland China in the past decade; and one of a handful who have started posting news and analysis videos on YouTube. Wang serves an audience of Chinese expatriates – along with mainlanders savvy enough to get round China’s great firewall – who tune in hoping that he can fill in the gaps left by propaganda, censorship and disinformation.Wang’s fans find him entertaining and reassuringly professional. (“He’s very objective, I think,” one told me.) His broadcast manner moves from the impersonal, rhythmic cadence of a veteran newscaster to personal asides that bring to mind a slightly incredulous university lecturer. He loves a rhetorical question (“Is this the way a US president speaks?”) followed by his favourite English-language interjection: “C’mon.”I have spent the months since Trump’s inauguration watching Wang on YouTube. He was first recommended to me by a journalist working at a prominent Chinese news outlet who, even while reporting for a similar audience, frequently checked in on Wang’s broadcasts. “He’ll be perfect for you,” they said. Americans have always loved looking at themselves from a distance.Watching the US through Wang makes our political reality appear more comical and more dangerous. He centres China in all his broadcasts, offering a kind of been-there-done-that account of authoritarian creep. He places the US on an arc of history we have long pretended to transcend. “Americans are democracy’s equivalent of second-generation wealth,” he told me. They were born into democracy and have no appreciation of what life is like without it. Chinese people, on the other hand, “have been bullied by rulers for thousands of years. We’re very familiar with these situations.”There are many American reporters, Wang said, who report competently on China. But when I asked how the US media was doing covering the US, he burst into laughter. “If I were the New York Times, I would be putting curse words on the front page every day,” he told me. “F-word, F-word, F-word.”In the US, the China narrative can fluctuate depending on the day. We thought, briefly, that the outbreak of the pandemic in Wuhan constituted a “Chornobyl moment” that would undermine the regime. It did not. We wonder, on and off, how China builds rail systems so quickly. We worry about whether China will overtake us in AI development. Our sense of national decline is intensified by China’s rise. In April, a New York Times op-ed by Thomas Friedman ran with the headline, “I just saw the future. It was not in America.” (It was in China.)In China, meanwhile, people looking to understand the US are also subject to a push and pull based on the political climate and – under Xi Jinping, China’s long-serving president – the narrowing space for free expression. China’s propaganda operation no longer resembles the lumbering machinery of Orwell’s Nineteen Eighty-Four. There are still fustier national newspapers – Xinhua and the People’s Daily – that clearly represent a Communist party perspective. There is also the more nationalistic Global Times. “If the US did not interfere in China’s internal affairs or challenge its sovereignty,” said one recent article, “there would be no need for it to worry about China’s defence development”.View image in fullscreenAt the turn of the last century, these bigger publications were balanced by a handful of independent, market-driven media outlets pushing the boundaries of censorship in China, although these mostly reported on domestic issues. Over time, however, most Chinese media consumers have moved online and today, just like Americans, they get most of their information on social media. Mainland China blocks Facebook, YouTube, X and Google. Instead, information spreads on Sina Weibo or, most commonly, WeChat. These platforms are monitored by human censors and AI programmes that hunt for sensitive phrases or keywords. China’s censorship is not monolithic or infallible, but these combined efforts mean that, typically, the news that spreads is the news that the government permits to spread.“Mostly, the things that spread on WeChat are video clips or screenshots with text,” Yaqiu Wang, a researcher based in Washington DC. Clips that highlight American gun violence, protests or inflation flow freely, without any censorship. She mentioned the popularity of snippets from the Trump-friendly Joe Rogan Experience podcast. Yaqiu Wang’s parents will, not infrequently, call at night, concerned about her safety. They are not reading government propaganda so much as a curated selection of American bombast, spin and disinformation.How much Chinese people know about the reality of life in the US varies wildly. “There are those people with power, or those people working in universities, who will jump the great firewall,” Yaqiu Wang told me. These people can read BBC’s Mandarin news service, for example, or listen to the Mandarin-language podcast run by the New York Times journalist Yuan Li. But if these are too dry for news consumers, Wang Jian is there to chatter the night away. “I think this satisfies people’s needs,” said a Chinese government employee who watches Wang’s programme every day. “You can get real information.”Wang has told viewers that, in all his years as a journalist, the last two had brought about some of the biggest global changes he had seen. Trump, Wang explained, has misidentified the US’s strengths. “Your strengths aren’t your people,” he told me later, expanding on his theme. “I could find a bank teller in Hong Kong, bring them here, and they could do the job of 10 Americans.” What the US has got, according to Wang, is allies and a reliable currency. (“And now you’re threatening to annex Canada?”)Trump, according to Wang, would like to be more like Xi Jinping – a strongman leading a nation with a huge manufacturing base. He likes to point out that the two leaders have birthdays a day apart. Trump would like to take back the supply chain and manufacture everything in the US – an idea that drew a “c’mon” from Wang. There are, in turn, things about the US that Xi would like to emulate – the global influence, the financial power of the dollar. “Maybe we should just let Xi and Trump switch places. We wouldn’t need to do anything. They could leave the rest of us out of it,” Wang joked. “Although I think Xi Jinping would get beat up in the United States.”It’s this kind of irreverence that Wang’s audience most enjoys. His viewers call him “Teacher Wang” and as he talks, a string of congratulatory messages pop up. They often say: “Teacher Wang, JiaYou!” (a term of encouragement that literally means “add oil!” but is closer to “let’s go!”). Sometimes: “Teacher Wang, well said!” And sometimes, when Wang is particularly critical: “Teacher Wang, well scolded!”View image in fullscreenFormally, there are three parts of Wang’s programmes. He opens with a segment of recent news, moves on to a segment that offers opinions and deeper explorations of a particular topic. Finally, he will end with about half an hour of viewer comments and questions. Recent topics have included immigration protests in Australia (“Without immigration, Australia has no chance of being an influential country”) and China’s diplomatic overtures to India. This segment can also involve questions – “Should I emigrate to another country?” “Should I buy an iPhone now?” – that require him to play a variety of roles: agony uncle, consumer advice columnist, financial adviser. He does an episode every year while he makes dumplings. He is part newscaster, part professor, part friend.Few of Wang’s fans wanted to talk on the record, but two of the handful I spoke with pointed to this as their favourite segment. Local news that might be censored in China makes its way out in the comments. Wang will discuss issues viewers have raised about mainland China – complaints, for example, that government employees are no longer allowed to go to restaurants in large groups; or that factory workers are being forced to take Breathalyser tests when they get home at night; or that falling real estate prices have wiped out someone’s savings. Some of his listeners will address the US directly. “Introducing a tariff of this size is suicidal!” wrote one viewer. “Is it too simple to blame it on arrogance and wilfulness?”Wang, when he’s interested in a question, will stare into the camera. “You think Trump has thought it through?” he asks. “I don’t think so. Trump is really simple. He doesn’t think very deeply.” Trump’s brain, Wang told me, is a “qian dao hu” – a lake with 1,000 islands, none of them connected.Wang does not sleep much. He starts preparing for the broadcast somewhere between four and five hours in advance. Wang’s first daily broadcast runs from around 11am to noon. He then eats lunch, sleeps if he can, and spends time with his family. Around 6pm, he starts the process again, aiming to go live at 11pm. And then at about 12.30 or 1.00am, he walks across the yard, back to his house, and gets his second, truncated, sleep.Wang has wanted to be a journalist since he was a teenager. He was born to middle class parents in Nanshan County, China, a protrusion of land in the south-west part of Shenzhen. When Wang, in high school, decided he was interested in studying journalism at university, his parents told him they couldn’t support his choice. Wang understood their reservations. “During the Cultural Revolution, the people who were most targeted were writers and journalists. They were afraid I would be denounced.” Wang, however, had a stubborn streak. He stopped speaking at home. “I had a cold war with my parents,” Wang told me. He held out until they agreed.Wang arrived at Jinan University in Guangzhou in the mid 1980s, intending to study journalism, but it wasn’t journalism, exactly, that he learned. “We studied the CCP’s theory of media,” Wang told me. According to the CCP, facts were secondary to the health of the party and the populace. Then, in 1990, Wang managed to land a job as a reporter in Hong Kong, which was still under British rule and enjoyed relatively robust freedom of the press. (Though the British did not extend Hongkongers the right to elect their leader.)View image in fullscreenIn Hong Kong, Wang was suddenly in the privileged position of writing honestly about his new city and the country that he had recently left. Wang won multiple press awards as a young reporter at the daily newspaper Ming Pao and then, in 2001, he joined Sing Tao Daily – the oldest Chinese-language newspaper in the city. By this time, Hong Kong had been transferred to PRC rule and, while Sing Tao operated independently, it had significant ties to Beijing. Wang would eventually oversee the publication’s international expansion efforts, helping establish offices in New York, Toronto and San Francisco. He travelled to all these places but didn’t do much exploring. He was working or meeting Chinese émigrés for dinner. (“You ask me my impression of the United States. I didn’t have a impression! My impression of New York was only: Chinatown.”)Reporters in Hong Kong, at this time, were in a unique position. In authoritarian systems, reliable information has a special value, and Hong Kong journalists were granted some access to PRC officials. “This access made Hong Kong media influential not only among Chinese audiences but also among Chinese officials, who treated Hong Kong media as an alternative source of information,” says Rose Liuqiu, a professor in the Department of Journalism at Hong Kong Baptist University. This was particularly true for journalists covering the economy, Wang’s speciality.This work required diplomacy. Charles Ho, who owned the Sing Tao Daily, maintained close ties with Beijing. He famously said that if he followed Beijing’s directives 100% of the time, he would lose value in Beijing’s eyes. Wang’s own work has always walked a line between attracting viewers, reporting the facts and balancing the concerns of a global power.The precarious balance that sustained Hong Kong’s media did not last. Business ties between Hong Kong’s media outlets and Beijing grew steadily, as did concerns about self-censorship. After democracy protests swept through the city in 2014, prominent editors and journalists became the targets of violent attacks. Jimmy Lai, the founder of Next Media, had his house firebombed more than once. Kevin Lau, the editor of the newspaper Ming Pao, was hospitalised in 2014 after being assaulted in the street with a meat cleaver. In 2016, Wang decided to retire. Beijing was beginning to limit press freedoms in the city and Wang didn’t think the city would recover the openness that had changed his perspective so drastically as a young man.Wang decided to step back from work and, instead, focus on caring for his young daughter, while his wife continued her work in real estate. At the end of 2018, after a visit to his sister-in-law in San Francisco, Wang decided to move his family to the US. He called his wife and told her that he didn’t think there was much future in Hong Kong. His daughter could attend high school in the US, he reasoned. By the time I met him, Wang told me that many of his friends – editors and reporters at news outlets like the now-shuttered Apple Daily – had either fled or were in jail.Wang thought he was done as a news man. But character is sometimes fate, and Wang loves to talk. In 2019, he started holding impromptu gatherings at his sister-in-law’s house on the weekends. At the time, Trump was engaging in the first iteration of a trade war with China and many of their acquaintances in the Bay Area, most of whom worked in the tech industry, wanted to meet and discuss current events. The weekly crowd grew and it was his sister-in-law who suggested that Wang move the conversation online and out of her back yard. By the end of the year, Wang had started his YouTube channel. It was, initially, a chatty, informal programme. And then the pandemic hit, and Wang became a professional again. “All of a sudden it felt serious,” he told me. “I had a responsibility.”It didn’t take long for Wang to acquire an audience, especially after he started broadcasting twice daily. (His is a volume game.) The pandemic was driving people online and China was limiting the flow of information coming out of the cities it had locked down. One regular viewer I spoke with – another government worker in China who asked to remain anonymous – came across Wang around this time, when they were at home during one of China’s restrictive lockdowns. They still listen to his broadcasts daily, looking for news on the economy – still hoping for information that might not be flowing freely from town to town. “During the comments you get a glimpse of what’s happening locally in China,” they told me.Eventually, Wang hired a handful of researchers – some of whom were journalists who had fled Hong Kong after a crackdown in 2019 – paying them from the advertising revenue from his broadcasts. He also started a membership programme and a Patreon and began offering a small selection of goods for sale. The tea he sells through YouTube, he told me, was sourced by a fan. “We don’t make any money on the tea,” he laughed. “I’m the one who buys most of it.”Wang, and the handful of other newscasters like him, are part of an ecosystem of influencers, often called “KOLs” in China for “Knowledge and Opinion Leaders” (an English term that likely originated in Hong Kong). The KOLs compete for attention with western sources – the Joe Rogan and Fox News clips. Most KOLs are apolitical; posting on TikTok or XiaoHongShu about beauty trends or daily life. Within China, many of these influencers are tacitly approved by the CCP. A woman named Li Ziqi, for example, runs the most popular Mandarin-language programme on YouTube and cross-posts on sites in mainland China. Her videos offer an idealised portrait of village life – making traditional crafts while soothing music plays in the background. Political KOLs are less likely to be making video content, and those within China are either pro-CCP or frequently find their accounts blocked. One, who goes by the name Gu Ziming, is famous for managing to pop up with new accounts after having an old one shuttered by censors.View image in fullscreenWhen I visited Wang, it was Friday evening. His researchers – who also wished to remain anonymous – had submitted the evening’s potential topics via a shared Google document. They laughed about Trump’s negotiation strategies (“No one trusts him!”) and speculated as to why a large job recruitment platform in Shanghai had stopped reporting salaries (“It means they’re scared to issue the report”). They moved topics up and down the list, in the order that Wang would plan to address them. In some cases, Wang questioned the news that they brought to him and urged them to seek out more sources.The proposed topics included elections in South Korea; a systemwide shutdown on San Francisco Bart trains; and a Texas ban on Chinese nationals buying property. “Have those Chinese living in Texas done nothing?” Wang asked. “No resistance or protest?”“I think there were protests before,” came the researcher’s voice through the phone. “But it turns out they’re giving exemptions to some people, but otherwise you have to have a green card.”“That’s fine, then,” Wang answered. “Don’t go to Texas to buy a house, then. The housing prices are falling in Texas anyway. This is a very red state. I can clearly see the momentum of this state.” The topic made the broadcast.Years ago, when I first started reporting on the media landscape in China, I thought of it as a foil to the more raucous and open media environment in the west. Now it feels more like a funhouse mirror – a different, exaggerated version of something fundamentally the same. Chinese readers have long approached their news sources with cynicism. In the US and most of the west, media sources are, for the most part, still free and unrestricted. Facts, on the other hand, are increasingly under attack.According to the researcher Wang Yaqiu, there is a division she sees in the US and China. Those who have political power, money, or enough education or energy, will do their best to seek out reliable information. This was true when Wang Jian began his career in Hong Kong, when Communist party officials looked to Hong Kong media as a reliable source. It is true now, when reliable information often comes at a cost – to unlock paywalled information, or to get a VPN to evade the great firewall. Wang’s programme is free to watch, but accessing it takes knowledge, desire and knowhow. Good information, and the ability to find it, Wang Yaqiu pointed out, is more and more a matter of privilege and money – and this is true on both sides of the Pacific. “The rest of us,” she said, “will all be swimming in the same trash.”Wang doesn’t get asked, often, what to do about the authoritarian creep he is commenting on in the US. He has been in this position nearly his entire life – reporting from Hong Kong as its democratic freedoms were eroded, and now the US. He enjoys enough of a distance to look at things from a bird’s-eye view, able to see events as funny and alarming. He has, at the same time, a truculent, slightly traditionalist, belief in the value of the news. After a lifetime patrolling the boundary between truth and nonsense, Wang believes that people build their realities based on what is available to them: their lived experiences, their teachers, the media they consume. They are reasonable. They just need access to reliable information.In recent months, as political violence and censorship in the US have grown, his references to the value of journalism have multiplied. When Charlie Kirk was assassinated in September, he gave a rapid, dispassionate explanation of Kirk’s record. “Kirk pushed forward conservativism and Christian nationalism,” Wang informed his viewers. “He denied the efficacy of vaccines. After Kirk’s death, Trump ordered all the flags fly half-mast.” The next day, Wang made a fresh argument for his line of work. “Media’s role is helping everyone regulate power,” he told his audience. “China castrated the media.” A few days later, he returned to the question. “How do you change your destiny?” he asked. “You change your destiny with knowledge. How do you gain knowledge?” Wang continued. “You read the news.”Wang issues warnings, but his work is fundamentally hopeful. He often returns to his own experience arriving in Hong Kong. He walked the streets, looked at the buildings, and marvelled at the fact that he could just go and look up who owned them. That had not been possible back home. He read old copies of Life magazine and began questioning the Communist party’s version of history. It was an epiphany. “My mission is to provide everyone with an opportunity to change their view of the world,” Wang told me, as he transitioned from tea to coffee. “This is the value of this programme. You need to know that this world is made up of countless puzzles. This, what is happening in the US, is one of them.”On the night I visited, Wang wrapped up around 1am. He thanked his audience. He sighed, momentarily letting his exhaustion slip through. He asked for upvotes and follows. “Join us as a member and help support us,” he said. And then he closed with his regular signoff. “Broadcast better,” he said. “Be better.” More

  • in

    Markets rebound amid latest US-China tariff spat as traders look to possible ‘Taco trade’

    European stock markets have edged higher and cryptocurrencies rebounded amid signs that a new front in the US-China trade war may not be a severe as first feared.Tensions between Washington and Beijing escalated again on Friday and over the weekend, as Donald Trump threatened to impose additional US tariffs of 100% on China starting next month.The US president accused the country of “very hostile” moves to restrict exports of rare-earth minerals needed for American industry. Beijing said it would retaliate if Trump does not back down.However, Trump and senior US officials opened a door to a possible deal with China on Sunday. The president wrote on Truth Social: “Don’t worry about China, it will all be fine! Highly respected President Xi just had a bad moment. He doesn’t want Depression for his country, and neither do I. The U.S.A. wants to help China, not hurt it!!!”The comments have offered some comfort for investors in Europe, with stocks opening mostly higher on Monday. The UK’s blue-chip FTSE 100 index rose by 0.2% in early trading, while markets in France, Spain, Germany were all up by about 0.5%.Most big cryptocurrencies rebounded after a deep sell-off over the weekend. Bitcoin edged up by 0.3% to more than $115,000, after falling below $105,000 on Friday. Ether had dropped to less than $3,500 but rebounded to about $4,100.Richard Hunter, of the broker Interactive Investor, said investors were hoping for a “Taco trade”, which is the idea that markets rally because “Trump Always Chickens Out” (Taco) of aggressive tariff decisions.“The president’s propensity to shoot from the hip unsettles the investment environment, even though some are already speculating that the Taco trade is alive and well,” he said.However, a heightened sense of uncertainty is pushing investors to gold, which is considered a safe haven asset. Its spot price hit another new high on Monday, rising to as high as $4,078.5 an ounce.Derren Nathan, of the broker Hargreaves Lansdown, noted that US stock futures suggested that there could be “at least a partial rebound” when the market opens later on Monday.“Traders may be banking on a similar pattern where American indexes entered a six-month period of almost unbroken growth helped by a string of trade deals, and growing hopes of a soft-landing for the US economy,” he said.skip past newsletter promotionafter newsletter promotionShares in Anglo-Swedish pharmaceutical firm AstraZeneca – which made a deal with Trump to lower drug prices and avoid tariffs over the weekend – initially rose on Monday morning, before falling back by 0.4%.Fears were still running high in Asia, with main markets tumbling on Monday. Hong Kong’s Hang Seng index dropped by 2.3%, while the Taiwanese market fell by 1.4% and the Thai exchange declined by 2%. In mainland China, the Shenzhen exchange fell by 1.4% and the Shanghai market slipped 0.4%.On Monday, Chinese foreign ministry spokesperson Lin Jian urged the US to promptly correct its “wrong practices” and said it would act to safeguard its interests.Despite the trade tensions, Chinese exports bounced back in September, topping forecasts as it diversified its markets.Chinese exports rose by 8.3% year on year last month, according to official customs data. This was the fastest growth since March, and beat a 6% increase forecast by economists polled by Reuters. It comes after a 4.4% increase in August. More

  • in

    China warns US of retaliation over Trump’s 100% tariffs threat

    Beijing has told the US it will retaliate if Donald Trump fails to back down on his threat to impose 100% tariffs on Chinese imports as investors brace for another bout of trade war turmoil.China’s commerce ministry blamed Washington for raising trade tensions between the two countries after Trump announced on Friday that he would impose the additional tariffs on China’s exports to the US, along with new controls on critical software, by 1 November.“Wilful threats of high tariffs are not the right way to get along with China,” a spokesperson for the commerce ministry said on Sunday, according to the state news agency Xinhua. “China’s position on the trade war is consistent. We do not want it, but we are not afraid of it.“If the United States insists on going the wrong way, China will surely take resolute measures to protect its legitimate rights and interests.”Trump and senior US administration officials opened a door to a China trade deal on Sunday as market futures showed another US stock market drop.“Don’t worry about China, it will all be fine! Highly respected President Xi just had a bad moment. He doesn’t want Depression for his country, and neither do I. The U.S.A. wants to help China, not hurt it!!!” Trump wrote on Truth Social.The message came after JD Vance called on Beijing to “choose the path of reason” in the latest spiralling trade fight between the world’s two leading economies that has shaken stock markets.Dow futures showed a drop of 887 points ahead of the stock markets’ open on Monday. The index dropped sharply lower on Friday after reignited fears of a trade war with China when threatened to impose 100% tariffs on Chinese imports after China said it would restrict rare earth exports. The Dow fell 879 points, or 1.9%.“It’s going to be a delicate dance, and a lot of it is going to depend on how the Chinese respond,” Vance said on Fox News’s Sunday Morning Futures. “If they respond in a highly aggressive manner, I guarantee you, the president of the United States has far more cards than the People’s Republic of China. If, however, they’re willing to be reasonable,” he said, then the US would, too.The US president shocked the financial markets on Friday when he accused China of “very hostile” moves to restrict exports of rare-earth materials needed by US industry.It prompted heavy falls on Wall Street, where about $2tn (£1.5tn) was wiped off the value of the US stocks.China insisted on Sunday that its latest export controls on rare earths such as holmium, erbium, thulium, europium and ytterbium were legitimate.“China’s export controls are not export bans,” said the commerce ministry spokesperson. “All applications of compliant export for civil use can get approval, so that relevant businesses have no need to worry.”skip past newsletter promotionafter newsletter promotionThe measures were introduced after Washington added a number of Chinese firms to its export control list in a crackdown on the use of foreign affiliates to circumvent export curbs on chipmaking equipment and other goods and technology.The UK’s FTSE 100 share index fell almost 1% on Friday as Trump’s threat sparked a late selloff. The futures market indicates there could be further losses in London and New York on Monday, although there could also be relief that Beijing has not yet retaliated.Bitcoin, which had tumbled 8% after Trump’s post on Truth Social, rose by 4% on Sunday after China refrained from retaliating.Trump’s tariff threat was “a rather unwelcome development for financial markets” as investors had “by and large moved on from the trade and tariff story”, said Michael Brown, a senior research strategist at the brokerage firm Pepperstone.“Chiefly, the question that every man and his dog are attempting to answer is whether this is a credible threat, that the Trump admin might follow through on, or whether this is another example of the ‘escalate to de-escalate’ strategy that Trump used so frequently earlier in the year.“A strategy where outlandish and ridiculous tariff figures are threatened, in an attempt to focus minds, extract concessions from the other party, and ultimately come to agreement faster than otherwise might’ve been possible.” More

  • in

    US farmers caught in Trump-China trade war – who’ll buy the soybeans?

    At the Purfeerst farm in southern Minnesota, the soybean harvest just wrapped up for the season. The silver grain bins are full of about 100,000 bushels of soybeans, which grab about $10 a piece.This year, though, the fate of the soybeans, and the people whose livelihoods depend on selling them, is up in the air: America’s soybean farmers are stuck in the middle of a trade war between the US and China, the biggest purchaser of soybean exports, used to feed China’s pigs.“We are gonna have to find a home for them soybeans some time soon,” said Matt Purfeerst, a fifth-generation farmer on the family’s land. “They won’t stay in our bins for ever.”No other country comes close to purchasing as many American soybeans as China – last year, it was more than $12bn worth. This year, the country has not purchased a single dollar’s worth, cutting off the country that makes up about half of US soybean exports.While Trump has said he intends some sort of payment to go to soybean farmers hurt by tariffs, an announcement of a specific plan is on hold while the government is shut down. He said in a Truth Social post last week that he would be meeting with the Chinese president soon and “soybeans will be a major topic of discussion”.The White House cast blame on Democrats for the government shutdown for the delay in a response to the Guardian on Wednesday, erroneously claiming they were prioritizing healthcare for migrants over farmers.View image in fullscreen“President Trump, [Treasury] Secretary [Scott] Bessent, and [Agriculture] Secretary [Brooke] Rollins are always in touch about the needs of our farmers, who played a crucial role in the president’s November victory,” spokeswoman Anna Kelly said. “Unfortunately, Democrats in Congress have stalled progress on this issue with their prolonged shutdown to serve illegal immigrants instead of America’s farmers. No decisions have been made, but we look forward to sharing good news soon.”Purfeerst’s family farm grows soybeans and corn, and has some beef cattle. The job is a round-the-clock combination of engineering, business, manual labor, environmental science. And it’s increasingly hard for family farms to make it. Costs for propane, fertilizer and seed have gone up, he said, and the prices for the goods they are selling don’t make up for the increased costs.Soybean farmers have become the “poster child out there right now of how this one particular segment’s getting hurt”, he said. The farm recently welcomed the Democratic US senator Amy Klobuchar for a visit to talk about how the tariffs were playing out, but Purfeerst said political affiliations didn’t matter.“Only 1% of the population is even involved in [agriculture] any more,” he said. “And what gets really challenging is this perception of ag out there, whether it’s on tariffs and prices or environmental issues, farmers kind of seem to be the crosshairs of a lot of it.”Farming areas voted for Trump in 2024, as did much of rural America. One analysis, by Investigate Midwest, showed Trump growing his support among farming-dependent counties in 2024 despite a trade war during his first term that negatively affected farmers.“I’m not gonna get into who I voted for particularly, but I would just have to say, at the time, you got to make decisions who you think is going to be the best leader of the country, and go on with life,” Purfeerst said. “And in four years, you get to vote again. That’s the beauty of our society. It’s not an 80-year regime. It’s a four-year cycle. It’s hard to say what’s gonna come about. I mean, everyone’s got their pros and cons.”View image in fullscreenPurfeerst has options for his soybeans: because of his farm’s location, he can sell domestically to soybean crush facilities in nearby towns, sell on the rail market, or sell in Minneapolis and put product on barges down the Mississippi River. Other soybean farmers, especially those in more remote parts of the midwest where soybeans are mostly produced, aren’t as lucky.Stories from all parts of the country where soybeans are grown have surfaced in recent weeks – in Arkansas, Illinois, Nebraska, Indiana, the Dakotas. Farmers face higher costs for inputs like fertilizer and equipment. They rely on China as a purchaser. Soybeans sitting in bins too long is subject to weather and pests. The prices fluctuate, so it’s a gamble to hold on to it that sometimes can pay off, or sometimes lose money.“Let’s say tomorrow we get a trade deal with China, and it’s favorable to soybeans. All of a sudden you might see this market jump from $10 to $12 in three, four days,” Purfeerst said. “So it makes it extremely challenging from a risk management standpoint of: when do you market your crop, and how many eggs do you put in that basket? The potential is $12, but if we don’t get a trade deal, it could go to $9 … There’s a huge volatility in soybeans.”The soybean industry has been warning for months that China’s exit from the market would be devastating, calling on the Trump administration to come up with a trade deal that spares farmers. The American Soybean Association wrote a letter to Trump in August, saying the country’s soybean farmers were “standing at a trade and financial precipice” and “cannot survive a prolonged trade dispute with our largest customer”.Tim Walz, Minnesota’s Democratic governor, declared the first week of October as soybean week, saying in the announcement that “our soybean farmers are confronting a crisis they haven’t seen since the 1980s”.“They’ve produced a bumper crop this year, just to find out they have nowhere to sell their harvest thanks to Trump’s trade policies,” Walz said. “Minnesota’s got the best beans in the world – I encourage Minnesotans to stand with our farmers and continue to advocate for federal trade reform.”It’s not the first time a Trump trade plan has hurt soybean farmers: in 2018, a trade war led to significant reductions in soybean exports to China. Since then, the market has rebounded, though China has ramped up soybean purchases from Brazil and Argentina, stockpiling imports earlier this year.Republican lawmakers have said they are sympathetic to the farmers and want to find a way to help them. James Comer, a Republican congressman from Kentucky, said this week that soybean farmers were not to blame for the problem they are facing.“They planted that crop assuming that those foreign markets were going to be there,” Comer said in a recent TV appearance. “I think we need to do something to help the soybean farmers.”A bailout is “really just a Band-Aid”, though it’s one that many farmers would welcome as they are getting squeezed right now, Purfeerst said. Most farmers would prefer an open market, without tariffs, for their products, letting the market dictate prices. They don’t want the trade war now to affect a long-term relationship that makes up a significant chunk of market share. There also should be more emphasis put on increasing domestic uses of soybeans, though a long-range plan like that won’t help the farmers who are stuck right now, he said.“There’s farms that are struggling to make money on soybean acres, and you’ve got to remember: whatever payment we’re getting, whatever that dollar amount might be, if we get anything, it’s not just going in our back pocket,” he said. “We’ve got a fertilizer bill. We’ve got to pay the seed bill. There’s a lot of payments. So really, that money might be in the farmer’s hands for a month, until it gets spent on inputs for next year.” More

  • in

    Chinese executive jailed for 25 years in US for trafficking fentanyl chemicals

    A Chinese company executive has been sentenced to 25 years in prison for trafficking in chemicals used to manufacture fentanyl, the US justice department has said.Qingzhou Wang, 37, principal executive of Amarvel Biotech, a company based in Wuhan, and Yiyi Chen, 33, the firm’s marketing manager, were convicted in New York in February of fentanyl precusor importation and money laundering.District judge Paul Gardephe sentenced Wang to 25 years in prison on Friday. Chen was sentenced to 15 years in prison on 22 August.“These executives turned a Chinese chemical company into a pipeline of poison, shipping hundreds of kilos of fentanyl-related precursors into the United States, disguising them as everyday goods, and cashing in through cryptocurrency,” Drug Enforcement Administration (DEA) chief Terrance Cole said in a statement.Wang and Chen were among eight Chinese nationals and four Chinese companies charged by the justice department in June 2023 with trafficking fentanyl precursor chemicals into the US.It was the first time the United States had charged Chinese companies for trafficking fentanyl precursor chemicals inside the United States, rather than shipping them to Mexico, the origin of most of the fentanyl found in the country.Fentanyl is a synthetic opioid that is 50 times more powerful than heroin and much easier and cheaper to produce. It has largely replaced heroin and prescription opioids such as oxycodone as a cause of overdoses in the United States.The June 2023 indictment of the Chinese executives and companies drew protests from Beijing.“It is completely illegal and seriously damages the basic human rights of Chinese citizens and Chinese companies,” the Chinese foreign ministry said at the time. “China strongly condemns this.”Although Mexico has been the main source of fentanyl sold in the United States, Washington has increasingly focused its attention on China-based suppliers of ingredients. More

  • in

    Trump insists foreign workers are ‘welcome’ days after arrest of hundreds of South Koreans

    President Donald Trump has said foreign workers sent to the United States are “welcome” and he doesn’t want to “frighten off” investors, 10 days after hundreds of South Koreans were arrested at a work site in Georgia.In a post on his Truth Social platform, Trump wrote: “I don’t want to frighten off or disincentivize investment.“I want them to bring their people of expertise for a period of time to teach and train our people how to make these very unique and complex products, as they phase out of our Country, and back into their land,” he wrote.About 475 people, mostly South Korean nationals, were arrested at the construction site of an electric vehicle battery factory, operated by Hyundai-LG, in the south-eastern US state of Georgia on 4 September.Immigration and Customs Enforcement (ICE) officials alleged South Koreans had overstayed their visas or held permits that didn’t allow them to perform manual labor.The Georgia raid was the largest single-site operation conducted since Trump launched a sweeping immigration crackdown across the country.Though the US decided against deportation, images of the workers being chained and handcuffed during the raid caused widespread alarm in South Korea. Seoul repatriated the workers on Friday.The South Korean president, Lee Jae Myung, called the raid “bewildering” and warned on Thursday that the raid could discourage future investment.In his post, Trump described the circumstances for temporarily allowing foreign experts into the US to build “extremely complex products”.“Chips, Semiconductors, Computers, Ships, Trains, and so many other products that we have to learn from others how to make, or, in many cases, relearn because we used to be great at it, but not anymore,” Trump wrote.“We welcome them, we welcome their employees, and we are willing to proudly say we will learn from them, and do even better than them at their own ‘game,’ sometime in the not too distant future,” the president added.Korea’s trade unions have called on Trump to issue an official apology. More

  • in

    From ‘hellhole’ UK to anti-Muslim rhetoric in Japan, Charlie Kirk took his message abroad

    Charlie Kirk directed most of his rhetoric at the US political scene, but he also strayed into foreign affairs, drawing both favourable and critical comparisons between life in the US and in other countries on his shows and doing the occasional speaking tour.In May, Kirk visited the UK, debating against students at Oxford and Cambridge universities and appearing on the conservative GB News channel. Days before he was fatally shot in Utah he took his message to relatively new audiences on a tour to South Korea and Japan.Last weekend he addressed like-minded politicians and activists at a symposium in Tokyo organised by Sanseito, a rightwing populist party that shook up the political establishment in upper house elections this summer.In Tokyo, Kirk described Sanseito, which ran in July’s elections on a “Japanese first” platform, as “all about kicking foreigners out of Japan”, where the foreign population has risen to about 3.8 million out of a total of 124 million.Foreign residents and supporters of mass migration were, he claimed, “very quietly and secretly funnelling themselves into Japanese life. They want to erase, replace and eradicate Japan by bringing in Indonesians, by bringing in Arabs, by bringing in Muslims”.He spoke at length about his trip in a podcast released the day before his death, returning to a familiar theme – criticising women who choose not to have children – that echoed the views of his host in Japan, the Sanseito leader, Sohei Kamiya.In Seoul, he addressed more than 2,000 supporters at the Build Up Korea 2025 event, which drew predominantly young Christians and students from evangelical schools, representing a self-styled Korean Maga movement that has rallied in support of the impeached former president Yoon Suk Yeol.The event invited a host of far-right American personalities, who openly promoted conspiracy theories including claims that China orchestrated “stolen elections” in both America and South Korea, and that Lee Jae Myung’s recent presidential victory was fraudulent.Kirk criticised special prosecutor investigations into Yoon and his martial law, describing “several disturbing things happening right now in South Korea” where “pastors are being arrested” and “homes are being raided”, adding: “If South Korea keeps on acting like this, it is the American way to step up and fight for what is right.”Kirk said he had “learned a lot” from his time in South Korea and Japan, recalling how safe he had felt on the clean and orderly streets of Seoul, where there were “no bums, no one asking you for money”.In his three-day visit to the UK in May, he clashed with students at the Cambridge Union debating society, arguing that “lockdowns were unnecessary”, “life begins at conception”, and the US Civil Rights Act was a “mistake”.Kirk made the same points in Oxford, also alleging immigrants were “importing insidious values into the west” and that police violence against Black people was a result of a “disproportionate crime problem” in the Black community.He told the rightwing GB News that the UK was a “husk” of its former self and needed to “get its mojo back”. The perception among US conservatives, he said, was that “this is increasingly a conquered country … We love this country from afar, and we’re really sad about what’s happening to it, and what has happened to it”.On his first show after returning to the US, Kirk described the UK as a “totalitarian third world hellhole”, adding: “It’s tragic. I don’t say that with glib, I don’t say that with delight. It is sad. It’s chilling and it’s depressing.”He claimed he had seen a cafe in which “every single table was taken by a Mohammedan and a fully burqa-wearing woman – not a single native Brit” and that people were being arrested for online posts that displayed no apparent harmful intent.“They invented free speech,” he said. “Now there’s so much wrong with that country and it is not worthy of making fun of. I mean, you can have some laughs and some comedy, but it is depressing. It is dark.”View image in fullscreenWhile he was fond of referencing Europe in his shows, Kirk’s only other recent public visit there appears to have been a trip to Greenland in January in the company of Donald Trump Jr.He said afterwards that Greenlanders should be allowed to “use personal autonomy and agency to disconnect from their Danish masters”, then have “the opportunity to be part of the US, no different than either Puerto Rico or Guam” (two self-governing “unincorporated territories” of the US) in order to be “wealthier, richer … and protected”.Kirk was also sharply critical of many countries in his videos and podcasts. “France has basically become a joke, for a lot of reasons,” he said last year, amid widespread French protests over pension changes. “What’s happening in France should serve as a warning to America.”After JD Vance attacked Europe for alleged free speech shortcomings this year, Kirk hit out at Germany. “Germans are a bunch of troublemakers,” he said. “German prosecutors say someone can be locked up if they insult someone online. Free speech is not a German value. Totalitarianism is a German value.”He was a vocal supporter of Trump’s China-focused policies, backing the president’s attacks on Harvard University in April, and the punishing trade war with Beijing.In April, he claimed Harvard had “raked in” more than $100m from China. “We need to ask serious questions in this country about whether we can trust our elite universities to put America first when so much money is flowing to them from America’s number one rival.”The same month, he told Fox News the US had become “a glorified vassal state” subservient to the Chinese Communist party, by relying on China for rare earth minerals. He said the CCP wanted to create “lots of little colonies all around the world through the belt and road initiative”.He also waded into the complicated waters of cross-strait relations. In April, Kirk told his podcast he had “a soft spot for the people of Taiwan”, but also showed a limited understanding of its history and the complexities of the dispute.“I would say, sadly if we took Taiwan, it would probably start a nuclear war. Our leaders have largely mishandled China. We probably should have taken it in 1950 right after world war two,” he said.There has never been any discussion of the US “taking” Taiwan. The US is Taiwan’s most important backer, providing billions of dollars in weapons and some military training, and has not ruled out coming to its defence in the event of a Chinese attack or invasion.In a video in May, Kirk used the escalating hostilities between India and Pakistan to push his argument against US military intervention abroad. Describing Pakistan as a “very, very sneaky actor”, Kirk was emphatic that “very simply, this is not our war … This is a great test of whether every great conflict is America’s problem”.Kirk was equally dogmatic on the issue of Indians being granted more visas as part of a US-India trade deal, accusing Indians of taking American jobs.“America does not need more visas for people from India,” he said. “Perhaps no form of legal immigration has so displaced American workers as those from India. Enough already. We’re full. Let’s finally put our own people first.” More