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      Joe Biden nominates former Mastercard boss Ajay Banga to lead World Bank

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      Joe Biden nominates former Mastercard boss Ajay Banga to lead World BankUS president puts forward choice to oversee new focus on climate crisis after resignation of Trump appointee David MalpassJoe Biden has nominated a former boss of Mastercard with decades of experience on Wall Street to lead the World Bank and oversee a shake-up at the development organisation to shift its focus to the climate crisis.The US president’s choice of Ajay Banga, an American citizen born in India, comes a week after David Malpass, a Donald Trump appointee, quit the role.The World Bank’s governing body is expected to make a decision in May, but the US is the Washington-based organisation’s largest shareholder and has traditionally been allowed to nominate without challenge its preferred candidate for the post.Malpass, who is due to step down on 30 June, was nominated by Trump in February 2019 and took up the post officially that April. He is known to have lost the confidence of Biden’s head of the US Treasury, Janet Yellen, who with other shareholders wanted to expand the bank’s development remit to include the climate crisis and other global challenges.Malpass upset the Biden administration when he appeared to question the extent to which humans had contributed to global heating.World Bank chief resigns after climate stance misstepRead moreBiden said he wanted Banga to use his decades of experience on Wall Street to support private-sector lending to countries in the developing world.“Ajay is uniquely equipped to lead the World Bank at this critical moment in history. He has spent more than three decades building and managing successful, global companies that create jobs and bring investment to developing economies, and guiding organisations through periods of fundamental change,” the president said.“He has a proven track record managing people and systems, and partnering with global leaders around the world to deliver results,” he added.Anti-poverty groups are expected to question Banga’s commitment to fighting the climate crisis using private sector funds. Several countries have defaulted on foreign loans, in effect declaring themselves bankrupt, and are locked in negotiations with banks and other private-sector lenders to reduce their debts.The World Bank said the first criterion for a future president was “a proven track record of leadership and accomplishment, particularly in development”.Banga has recently joined several bodies as a climate adviser. He became vice-chairman of General Atlantic’s climate-focused fund, BeyondNetZero, at its inception in 2021.Raised in India, Banga is expected to appeal to many developing world leaders as an executive bringing financial acumen to the job and a strong relationship to the Biden administration.skip past newsletter promotionafter newsletter promotionThe World Bank’s board has rebutted previous criticism of its commitment to reducing global heating, saying that climate finance doubled under Malpass from $14bn (£12bn) in 2019 to $32bn last year.John Kerry, Biden’s climate envoy, said Banga was “the right choice to take on the responsibilities of the World Bank at this critical moment”.He said it would allow the World Bank to “mobilise capital to power the green transition”.Manish Bapna, chief executive of the research organisation, the Natural Resources Defense Council, said Banga would need to be a “transformative leader with a clear vision for ambitious climate action” who must prevent the world’s most vulnerable people from being “forced to pay a price they can’t afford for a crisis they didn’t cause”.TopicsWorld BankGlobal economyJoe BidenBiden administrationUS politicsnewsReuse this content More

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      Republicans in the US ‘battery belt’ embrace Biden’s climate spending

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      Republicans in the US ‘battery belt’ embrace Biden’s climate spending Southern states led by Republicans did not vote for climate spending, but now embrace clean energy dollars like never beforeGeorgia, a state once known for its peaches and peanuts, is rapidly becoming a crucible of clean energy technology in the US, leading a pack of Republican-led states enjoying a boom in renewables investment that has been accelerated by Joe Biden’s climate agenda.Since the passage of the Inflation Reduction Act (IRA) in August, billions of dollars of new clean energy investment has been announced for solar, electric vehicle and battery manufacturing in Georgia, pushing it to the forefront of a swathe of southern states that are becoming a so-called “battery belt” in the economic transition away from fossil fuels.Biden’s climate bill victory was hard won. Now, the real battle startsRead more“It seems like all roads are currently leading to Georgia, it’s really benefiting disproportionately from the Inflation Reduction Act right now,” said Aaron Brickman, senior principal at energy research nonprofit RMI. Brickman said the $370bn in clean energy incentives and tax credits in the bill are a “complete game changer. We’ve just frankly never had that before in this country. The IRA has transformed the landscape in a staggering way”.Georgia is part of a pattern where Republican-headed states have claimed the lion’s share of new renewable energy and electric vehicle activity since the legislation, with Republican-held Congressional districts hosting more than 80% of all utility-scale wind or solar farms and battery projects currently in advanced development, according to an analysis by American Clean Power.States blessed with plentiful wind and sunshine, along with significant rural and industrial communities, such as those across the Great Plains and the south, appear best positioned to capitalize on the climate bill. Texas, already a bastion of wind power, could see $131bn in IRA-linked investment this decade, Florida may see $62bn and Georgia $16bn, according to an RMI analysis.The irony of this bonanza, which is coming despite no Republican voting for the climate spending, was alluded to by Biden in his recent state of the union address. “My Republican friends who voted against it – I still get asked to fund the projects in those districts as well,” the US president said, to jeers from some members of Congress. “But don’t worry, I promised I’d be a president for all Americans. We’ll fund these projects and I’ll see you at the groundbreaking.”Beeswarm bubble chart of states’ IRA climate investmentsA mixed political groundbreaking did take place in Georgia in October, when Brian Kemp, the Republican governor, was served champagne by a robotic dog before ceremonially shoveling dirt alongside Democratic senators Raphael Warnock and Jon Ossoff to kick off Hyundai’s first dedicated electric vehicle plant in the US.The $5.5bn facility in Bryan county, which will create around 8,000 jobs when it opens in 2025, came about because “we heard the clarion call of this administration to hasten the adoption of new electric vehicles and reduce carbon emissions”, according to José Muñoz, Hyundai’s global president.Ossoff told the Guardian he has long held a vision that Georgia “should be the advanced energy innovation and manufacturing hub for the US” and credits a bill he wrote, the Solar Energy Manufacturing for America Act, which was then folded into the IRA, for helping convince Hanwha Qcells, another South Korean-owned company, to commit $2.5bn for two new solar panel factories in the state in January.“This targeted legislation was by no means a foregone conclusion but passing it has opened the floodgates in Georgia,” Ossoff said. Democrats have touted the bill for not only helping tackle the climate crisis but also as a way to wrest the initiative from China, which has dominated the manufacturing of parts for clean energy systems and electric cars until now.Georgia’s embrace of clean energy technology was underway before the IRA, with Atlanta, bolstered by leading renewables research at Georgia Tech, increasingly viewed as an innovative fulcrum. In 2021, Freyr, a Norwegian company, announced a $1.7bn battery plant for Coweta county, south of Atlanta, while SK Battery, yet another South Korean-owned firm, said last spring it will hire another 3,000 workers at its battery factory in Commerce, north-east of Georgia’s capital.Rivian, the electric car company, meanwhile is keen to build a sprawling $5bn facility east of Atlanta although it has faced opposition from some residents in the small town of Rutledge, who have sued to stop the development.But last year’s IRA, with its sweeping tax incentives for emissions-reducing technologies, has made the environment even more enticing. Scott Moskowitz, head of market strategy for Qcells said that Georgia has been a “great home” since 2019 but that the IRA is “some of the most ambitious clean energy policy passed anywhere in the world” and gave the Hanwha-owned company certainty to triple capacity at its site in Dalton, which already cranks out around 12,000 solar panels a day, as well as create a new complex in Cartersville that will manufacture ingots and wafers, the basic building blocks of solar panel components, made from poly silicon.“There’s a ton of opportunity and excitement in [the] clean energy sector right now,” Moskowitz said. “We’ve always had strong support from both sides of the aisle, even if there hasn’t always been agreement.”Map of recently announced clean energy projects in GeorgiaBarry Loudermilk, a Republican congressman whose House of Representatives district includes Cartersville, denied that the rush of investment is politically awkward for the GOP, accusing Biden of an “elementary school-level response” to the issue in his state of the union speech.“I’m not against this industry and I’m all about bringing in new technology, but it has to be market-driven,” Loudermilk told the Guardian. “When the government heavily subsidizes something it will crest and then fall down because the market hasn’t matured.“We aren’t ready for this (full EV and clean energy adoption). This is just subsidizing one industry over another and just throwing taxpayer dollars at something usually just leads to failure, and sets you back a decade.”Georgia is a draw for businesses due to its relatively low tax rate, transport links -including Atlanta’s busy airport and Savannah’s deep port – and a diverse and adept pool of workers, according to Loudermilk. “The days of the backwoods country bumpkin are in the past, we have educated, skilled workforce,” he said.It’s uncertain whether Loudermilk will be at the Cartersville groundbreaking, nor Marjorie Taylor Greene, the far-right extremist who represents the neighboring congressional district that includes Dalton. Greene has previously said the IRA is an “energy disaster” and erroneously said that global heating is “actually healthy for us”, although she has said she welcomes any new jobs to Georgia.Warned of ‘massive’ climate-led extinction, a US energy firm funded crisis denial adsRead moreKemp, meanwhile, has offered state-level incentives for firms to set up in Georgia, while denouncing Democrats for “picking winners and losers” with the national climate bill. The governor recently pitched his state as a destination for clean tech investment at Davos and has denied any hypocrisy in his stance.“Georgia is a destination state for all manner of new jobs and opportunity despite the bad policies coming out of DC – not because of them,” said a spokesman for Kemp. “Companies are choosing Georgia over places like New York and California because they know they’ll find success here, not because of the IRA.”Even if the causes for the renewables investment are in dispute, the trajectory of the transition is becoming more undeniable. As the cost of renewables continues to plummet and more Americans turn to electric cars, thanks in part to the “unprecedented scale” of the IRA, partisan divides on the issue may soften, according to Ashna Aggarwal, an associate at RMI, the energy research nonprofit.“This is a bill that benefits everyone and it actually benefits the people who weren’t necessarily in favor of the bill the most,” Aggarwal said.“I think what’s really exciting about the clean energy economy is that party lines don’t really matter here. There’s more opportunity for Republican states and I hope that Republican policymakers see that and really think this is good for the people who are living in our states.”TopicsRenewable energyEnergyClimate crisisGeorgiaUS politicsBiden administrationEnergy industryfeaturesReuse this content More

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      Joe Biden’s train ride to Kyiv makes history but will it win him a second term?

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      02:09AnalysisJoe Biden’s train ride to Kyiv makes history but will it win him a second term?Julian Borger in WarsawVisit to Ukraine is a defining moment for the US president but foreign policy does not necessarily win elections

      Russia-Ukraine war – latest news updates
      John F Kennedy and Ronald Reagan had their speeches in Berlin. Joe Biden now has Kyiv, a moment to define his presidency and its era.There was no one phrase in Biden’s remarks in Kyiv to match Kennedy’s “Ich bin ein Berliner” in 1963 or Reagan’s “Mr Gorbachev, tear down this wall” in 1987, but the trip itself was the statement. As the White House underlined repeatedly on Monday, there was no precedent in modern times. Visits to the troops in Afghanistan and Iraq were different, as the US military ran security in those countries.In going to Kyiv, Biden was entering a war zone and putting his safety in the hands of the Ukrainian armed forces, and also those of the Russians. Moscow was given a heads-up a few hours before he crossed the border. The calculation was that Vladimir Putin would not risk the precedent of presidential assassination or all-out war for that matter. A reasonable calculation but a risk nonetheless.It was a coup heightened by complete surprise. The secret did not leak, signalling that the bravery was underpinned by competence. The visit cemented Biden’s claim of leadership of the free world, but among Washington’s allies that has not really been challenged since the full invasion of Ukraine began a year ago this week.A tougher question to answer – and it may take a week or two before the result is clear – is whether this will help Biden’s standing at home, where his popularity has not recovered from the hit it suffered from the shambolic Afghanistan withdrawal, inflation and the energy price shock of the invasion.The popularity slump, which began in August 2021, has not so far been reversed by recent strong economic figures, a solid legislative record, and a lively, combative performance in his State of the Union address earlier this month.In an average of recent polls, Americans who disapprove of his performance outnumber those who approve by 52% to 42%.Much of the problem is an overall impression that Biden at 80 is too old, too doddery and gaffe prone to lead the country with vigour, especially into a second term. The bold appearance in Kyiv, strolling through the city in aviator sunglasses, alongside a grateful and admiring Volodymyr Zelenskiy, on the US Presidents Day holiday no less, is intended to address that perception head on and reframe the conversation on age and fitness for office.Donald Trump was notably risk averse as president. On his single visits to Afghanistan and Iraq, he stayed inside heavily fortified US bases. The Kyiv visit, with its very real jeopardy, makes it less likely that Biden’s Republican challenger in 2024, whether it is Trump or the Florida governor, Ron DeSantis, or another, will challenge him directly on courage. But the Republicans are already pivoting to portraying the president’s starring role abroad as an abandonment of suffering Americans at home.“I and many Americans are thinking to ourselves: OK, he’s very concerned about those borders halfway around the world. He’s not done anything to secure our own borders here … we have a lot of problems accumulating here,” DeSantis told Fox TV.The very success of the Biden visit in underlining the US’s commitment to Ukrainian resistance could end up accelerating the drift of the Republicans towards anti-Ukrainian positions, now the preserve of a pro-Trump minority on the far right of the party, as the leadership looks for attack lines against Biden.In his Fox interview, DeSantis downplayed the Russian threat. “I think it’s important to point out, the fear of Russia going into Nato countries and all that, and steamrolling, that has not even come close to happening,” he said, sketching out what may become the Republican line in 2024.The conventional wisdom, reinforced by decades of polling, is that foreign policy does not tend to sway presidential elections. What Kennedy and Reagan’s famous Berlin speeches would have done for them electorally is unknown. Kennedy was killed before he could stand for a second term, and Reagan had already been re-elected and was in his penultimate year in office.For Biden, the jury is out. The train ride to Kyiv will go down in history, but making history does not necessarily win elections.TopicsJoe BidenUS politicsUkraineBiden administrationEuropeUS foreign policyanalysisReuse this content More

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      Ohio is facing a chemical disaster. Biden must declare a state of emergency | Steven Donziger

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      Ohio is facing a chemical disaster. Biden must declare a state of emergencySteven DonzigerA train derailed and flooded a town with cancer-causing chemicals. But something larger, and more troubling, is at work Earlier this month, a train carrying toxic chemicals derailed in eastern Ohio, exploding into flames and unleashing a spume of chemical smoke on the small town of East Palestine. The train’s freight included vinyl chloride, a chemical known to cause liver cancer and other sicknesses.In response, government and railway officials decided to “burn off” the vinyl chloride – effectively dumping 1.1m lbs of the chemical into the local community, according to a new lawsuit. Officials said that they did so to avert the vinyl chloride from exploding; in contrast, an attorney for the lawsuit has said that the decision was cheap, unsafe, and more interested in restoring train service and appeasing railway shareholders than protecting local residents.East Palestine residents are reporting headaches, sore throats, and burning eyes; dead pets and chickens; and thousands of fish corpses in nearby waterways. The Ohio Department of Natural Resources has said that approximately 3,500 fish, of 12 different species, died across 7.5 miles.In other words, Norfolk Southern’s “controlled burn” may have caused a mushroom cloud of poison to spread over eastern Ohio. The situation demands immediate action from President Biden. Without it, thousands of people – including children and the elderly – and animals will be at continued risk of premature death. Biden must declare a state of emergency and create an independent taskforce to take over the remediation of this eco-catastrophe.Norfolk Southern “basically nuked a town with chemicals” to “get a railroad open”, a former hazmat technician told a local news outlet. It certainly seems like a company with a $55bn market cap chose to sacrifice the health of thousands of people to keep its profits flowing.We need to try to understand how this happened.For one thing, even the initial derailment wasn’t necessarily just an “accident.” It was a function of our out-of-control corporate culture in the United States, which has neutered effective government oversight of hazardous activities – including the rail transport of highly flammable and carcinogenic chemicals. The EPA’s response thus far has been to send a feckless letter to Norfolk Southern pleading it pay for clean-up.That’s not going to cut it. We need to do better.In terms of the sheer quantity of carcinogenic chemicals being released over an area of hundreds of miles, the catastrophe in Ohio is a major, unprecedented public health crisis. Biden must publicly recognize it as such and act to protect the people who live in the affected area. This requires a rapid, all-of-government response overseen not by the EPA but by independent scientists and taskmasters who will be immune to pressure from industry. This sort of taskforce must be willing to threaten the suspension or even nationalization of Norfolk Southern if it does not cooperate.After battling an oil company over the discharge of toxic waste in the Amazon, I can say with some assurance that Norfolk’s response to this crisis so far comes from a time-tested corporate strategy: manage the situation as a public relations challenge and not the humanitarian and ecological catastrophe that it is. Norfolk’s leadership bailed out of a townhall meeting this week, blaming security risks, and has refused to face residents to answer questions.That’s certainly cowardice. But it is also a function of the fact that industry does not respect the power of government to regulate it. Government is supposed to protect us from the excesses of industry; instead it often acts like its partner.If the consequences of not attending had included a sufficient threat to his bottom line, Norfolk Southern CEO Alan Shaw – who earns a reported $4.5m a year – probably would have been at the town hall. And if the government had been doing its job in the first place, there is a good chance this accident would not have happened. During the Trump administration, Norfolk successfully lobbied to repeal a safety rule requiring new electronic brakes. The train was also dangerously long – with only two crew members, and a trainee, supervising its 1.7-mile length.I’m not a scientist. But I know a fair amount about toxicology and how the world’s polluters use a playbook invented by law firms and consultants to downplay the impact of major disasters and lower their legal liability. Local and state officials – who may be under enormous pressure from these industries in the form of campaign donations – often work alongside polluters to “manage” disasters’ political fallout.It’s a one-two punch of disaster mismanagement that is playing out now, in Ohio, with awful consequences for people and the planet. Here are three takeaways about what is really happening and what needs to be done:Be skeptical of claims by authorities that it is “safe” to return to the area. The EPA and state environmental officials have been opaque about what chemicals are being tested for and by what methods, and news reports haven’t indicated any plans so far for any sort of environmental restoration. We also do not know what new chemical compounds the so-called “controlled” burn may have created, and whether tests have been run for those chemicals. In fact, test results have not even been released publicly.Bottom line: there is no transparent scientific or public health basis for declaring the area safe. Until there is, I wouldn’t go near the site of the disaster.The EPA can help, but cannot oversee a clean-up. Corporate lobbying in recent years has undermined the ability of the EPA to regulate industry. Under the Trump administration, chemical lobbyists took over important jobs on the inside and the agency is severely understaffed. Further, the EPA is required by Congress to “balance” industry needs with public safety. It is not focused solely on protecting the community. It sent a letter to Norfolk pleading with it to pay for a cleanup; a real government would have sent a disaster management team to Ohio to take over.Longer-term, the railway industry needs to be revamped. We have civil-war era braking systems on trains carrying deadly chemicals though our communities. Railway unions and whistleblowers have repeatedly raised safety concerns only to be ignored. A new industry concept called “precision scheduling” has pushed trains and workers to the breaking point to extract greater profits for shareholders, which include some of the largest hedge funds on Wall Street.Our government institutions as currently constituted are unable or unwilling to respond effectively to industrial disasters. It is preposterous for any ostensibly advanced country to let a massive chemical polluter clean up a mess like this on its own terms and without effective oversight. This is not an isolated incident. Unless we demand accountability, it will happen again.President Biden: the ball is in your court.
      Steven Donziger is a human rights and environmental lawyer, a Guardian US columnist, and the creator of the Substack newsletter Donziger on Justice
      TopicsPollutionOpinionOhioUS politicsJoe BidenBiden administrationUS Environmental Protection AgencycommentReuse this content More

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      FBI searched University of Delaware in Biden documents investigation

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      FBI searched University of Delaware in Biden documents investigationThe justice department is looking into how classified documents came to be found in Joe Biden’s home and former office The FBI searched the University of Delaware in recent weeks for classified documents as part of its investigation into the potential mishandling of sensitive government records by Joe Biden.The search, first reported by CNN, was confirmed to the Associated Press by a person familiar with the matter who was not authorized to discuss it publicly and spoke on condition of anonymity. The person would not say whether anything was found.Why prosecutors might get Trump – and not Biden – for classified documentsRead moreA justice department special counsel is investigating how classified documents from Biden’s time as vice-president and senator came to end up in his home and former office – and whether any mishandling involved criminal intent or was unintentional. Biden’s personal lawyers disclosed in January that a small batch of documents with classified markings had been found weeks earlier in his former Washington office, and they have since allowed FBI searches of multiple properties.The university is Biden’s alma mater. In 2011, Biden donated his records from his 36 years serving in the US Senate to the school. The documents arrived on 6 June 2012, according to the university, which released photos of the numbered boxes being unloaded at the university alongside blue and gold balloons.Under the terms of Biden’s gift, the records are to remain sealed until two years after he retires from public life.Biden’s Senate records would not be covered by the Presidential Records Act, though prohibitions on mishandling classified information would still apply.The White House referred questions to the justice department, which declined to comment. The University of Delaware also referred questions to the justice department.The university is the fourth known entity to be searched by the FBI following inspections of Biden’s former office at the Penn Biden Center in Washington DC, where records with classified markings were initially found in a locked closet by Biden’s personal lawyers in November, and more recently of his Delaware homes in Wilmington and Rehoboth Beach.Those searches were all done voluntarily and with the consent of Biden’s legal team.The FBI took six items that contained documents with classified markings during its January search of the Wilmington home, Biden’s personal lawyer said. Agents did not find classified documents at the Rehoboth Beach property but did take some handwritten notes and other materials relating to Biden’s time as vice-president for review.The justice department is separately investigating the retention by former president Donald Trump of roughly 300 documents marked as classified at his Florida estate, Mar-a-Lago. The FBI served a search warrant at the home last August after months of resistance by Trump and his representatives to returning the documents to the government.The FBI also searched the Indiana home of former vice-president Mike Pence last week after his lawyers came forward to say they had found a small number of documents with classified markings. A Pence adviser said one additional document with classified markings was found during that search.TopicsJoe BidenFBIUS politicsDelawareBiden administrationnewsReuse this content More

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      Competitor or adversary? The west struggles to define its relationship with Beijing

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      Competitor or adversary? The west struggles to define its relationship with BeijingChina, the US’s most vital trade partner and its main long-term competitor, presents the country with a sticky ‘pacing challenge’ If you want to solve a problem, it helps to be able to define it, but when it comes to a problem like China, western leaders have been struggling to find the right words.Liz Truss sought to designate China as a “threat” to Britain, but did not stay prime minister long enough for that to become established policy. Her successor, Rishi Sunak, has opted for the less combative “systemic challenge” but he is under pressure from backbench MPs to follow Truss’s path and call Beijing a “strategic threat”.Sunak has made clear he does not want the UK to be out of step with its allies on the issue, most importantly the US. In Washington, meanwhile, China designation is a delicate and evolving art.China ‘spy balloon’ wakes up world to new era of war at edge of spaceRead moreThe delicacy was apparent when a Chinese balloon sailed over the continental US earlier this month. The US declared the high-altitude airship and its payload to be designed for spying and shot it down once it was safely over the Atlantic. The secretary of state, Antony Blinken, cancelled a long-planned trip to Beijing to address bilateral tensions, but at the same time stressed that channels of communication would be kept open and that the US remained keen on a meeting when conditions allowed. Blinken may meet his counterpart, Wang Yi, as soon as this week, at the Munich security conference.The theme of US-China policy towards the end of the Trump administration was an all-encompassing decoupling, in which China was presented in mostly adversarial terms. Joe Biden has preferred to talk about “stiff competition”. His administration’s national defence strategy paper deemed Russia to be an “acute threat” while China was portrayed as the US’s only long-term “competitor”. In recent weeks, the official catchphrase for Beijing has been the slightly nebulous “pacing challenge”, suggesting the US is the world’s constant frontrunner with China ever closer to its shoulder.The problem with categorising China is that there are multiple aspects to its global role as it expands its presence on the world stage. For that reason, Democratic senator Chris Murphy has warned against digging up old cold war rhetoric.“You can’t use the terminology that we used for our conflict with the Soviet Union for our conflict with China,” Murphy told Foreign Policy. “It is apples and oranges. We had virtually no trade relationship with the Soviet Union. Our most vital trade relationship is with China. So I do worry about a bunch of Cold Warriors and Cold War enthusiasts thinking that you can run a competition with China like you ran a competition with the Soviet Union. It’s not the same thing.”With this in mind, Blinken has adopted a Swiss army penknife multi-tooled approach that is “competitive when it should be, collaborative when it can be and adversarial when it must be.”Washington is acutely aware that it has been complacent in its competition with China for global clout, having assumed that better US technology and its democratic model would win the day, only to find that African countries and other parts of the global south were sitting on their hands when the US called for support in the UN general assembly. Last year an old Pacific ally, Solomon Islands, signed a security pact with Beijing, denying entry to a US Coast Guard cutter not long after.The Biden administration now plans to beef up its diplomatic presence in the Pacific, reopening some shuttered missions. It has set up a “China house” in the state department to coordinate analysis and help counter China’s message around the world. On Wednesday, the deputy secretary of state, Wendy Sherman, summed up the new US approach as Washington takes on the People’s Republic of China (PRC) in the contest for hearts and minds in emerging economies.“It is not to say that the PRC can’t invest or that you should toss them out,” Sherman said at the Brookings Institution. Instead, she said the message will be: “Have your eyes wide open”.“Understand what you’re getting, understand what rules apply, what the norms are. Give us a chance, see what we have to offer. Let us compete and help you develop as a country in the ways that you choose,” Sherman said.As for collaboration with China, she said there was little choice other than to work with Beijing to address the climate emergency.“There is no doubt that we cannot meet the climate challenge without engagement with the PRC,” Sherman said. “It’s just not possible because we are both such large emitters and historic emitters.”At the same time, there are plenty of fields in which the US and China are adversaries. The balloon affair has just added another layer to a constant, escalating intelligence struggle between the two powers, in which Beijing has scored some remarkable successes in recent years, stealing designs for the F-35 fighter jet for example. Chinese hackers also stole the personal details of 22 million federal workers – current, former and prospective.Fears of China’s technological capabilities led Biden to introduce draconian export restrictions on semiconductors in October of last year, in an effort to strangle China’s microchip sector. It came close to an economic declaration of war, but Republicans in Congress are still trying to depict him as “soft on China”, calling on him to ban the TikTok app as a threat to national security. Some red states are considering bans on Chinese nationals buying land.It is in the military arena of course where the stakes are the highest and the risks of a competitive relationship becoming adversarial are greatest. Last week, the Pentagon informed Congress that China now had more missile silos than the US. It was an eye-catching claim, though most of the silos are empty and the US retains a substantial superiority in submarine and airborne launchers. China is estimated by the Federation of American Scientists to have 350 nuclear warheads. Even if that number tripled, as the Pentagon predicts it will, it will still be less than a fifth of the US stockpile.China’s long-term threat will depend ultimately on whether it is developing its military clout simply to deter or to attack, across the Taiwan Strait in particular. At the end of January, the head of US Air Mobility Command, Gen Mike Minihan, told other officers that his “gut” told him the US and China would be at war by 2025. It was an estimate quickly disowned by the rest of the Pentagon leadership, who shied away from such expressions of inevitability.US officials say that Xi Jinping is watching Russia’s military debacle in Ukraine with concern and maybe recalibrating his options. Opinions differ within the administration on how seriously Xi takes his pledge to reunite China, another reason it has wavered over the right terminology.There is agreement for now however that repeatedly deeming China to be a threat risks making matters worse, shaping policy in such a way that it becomes a self-fulfilling prophecy.TopicsChinaUS foreign policyBiden administrationUS politicsAsia PacificXi JinpingfeaturesReuse this content More

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      US could default this summer unless $31.4tn debt ceiling is raised, CBO warns

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      US could default this summer unless $31.4tn debt ceiling is raised, CBO warnsHistoric federal debt default could occur before July, cautions non-partisan agency The Congressional Budget Office (CBO) on Wednesday said the US treasury department will exhaust its ability to pay all its bills sometime between July and September, unless the current $31.4tn cap on borrowing is raised or suspended.In a report issued alongside its annual budget outlook, the non-partisan CBO cautioned that a historic federal debt default could occur before July if revenue flowing into the treasury in April – when most Americans typically submit annual income tax filings – lags expectations.US inflation eases again for seventh consecutive monthRead moreThe pace of incoming revenue, coupled with the performance of the US economy in the coming months, makes it difficult for government officials to predict the exact “X-date”, when the treasury could begin to default on many debt payments without action by Congress.“If the debt limit is not raised or suspended before the extraordinary measures are exhausted, the government would be unable to pay its obligations fully,” the CBO report said. “As a result, the government would have to delay making payments for some activities, default on its debt obligations, or both.”Separately, the CBO said annual US budget deficits will average $2tn between 2024 and 2033, approaching pandemic-era records by the end of the decade – a forecast likely to stoke Republican demands for spending cuts.Meanwhile, the CBO estimated an unemployment rate of 4.7% this year, far above the current 3.4%.CBO director Phillip Swagel attributed the rise to higher interest rates that particularly are hitting the housing industry, coupled with slowing business investment.The sobering analysis reflects the full impact of recent spending legislation, including investments in clean energy and semiconductors and higher military spending, along with higher healthcare, pension and interest costs. It assumes no change in tax and spending laws over the next decade.“Over the long term, our projections suggest that changes in fiscal policy must be made to address the rising costs of interest and mitigate other adverse consequences of high and rising debt,” Swagel said in a statement.The need to raise the debt ceiling is driven by past spending laws and tax cuts, some enacted under Joe Biden’s predecessor, Donald Trump.Republicans, who control the House of Representatives, want to withhold a debt limit increase until Democrats agree to deep spending cuts. Democrats in turn say the debt limit should not be “held hostage” to Republican tactics over federal spending.After hitting the $31.4tn borrowing cap on 19 January, Treasury Secretary Janet Yellen said the treasury can keep up payments on debt and federal benefits and make other outlays at least through 5 June using cash receipts and extraordinary cash management measures.Year of the debt limitSo far in 2023, not a day has gone by on Capitol Hill without lawmakers jousting over the debt limit, as Democrats press for a quick, clean increase in treasury borrowing authority and Republicans insist on first nailing down significant reductions in future government spending.Social security and Medicare, the government’s popular pension plan and its healthcare program for Americans ages 65 and older, are at the center of the debt limit and government funding debate, as both parties also jockey to define the contours of the 2024 presidential and congressional election campaigns.“There has been a Republican drumbeat to cut social security and Medicare,” Senate majority leader Chuck Schumer, a Democrat, told reporters on Tuesday.Republican Senate minority leader Mitch McConnell has labored, without much success so far, to smother such talk.“Let me say one more time. There is no agenda on the part of Senate Republicans to revisit Medicare or social security. Period,” he said at a news conference.Most Americans do not closely follow Washington’s debt-ceiling saga, but they still worry it could hurt their finances, according to a Reuters/Ipsos public opinion poll conducted between 6-13 February.In that poll, 55% of US adults said they have heard little or nothing about the debate, but three-quarters of respondents said Congress must reach a deal because defaulting would add to their families’ financial stress, largely through potentially higher borrowing costs.TopicsUS economyBiden administrationJoe BidenUS politicsnewsReuse this content More

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      Tesla to expand supercharger stations to all electric vehicles, White House says

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      Tesla to expand supercharger stations to all electric vehicles, White House saysFunding for the EV charging network comes from the infrastructure bill that allocates $7.5bn to the expansion The White House is partnering with Tesla to expand electric vehicle charging infrastructure in the US, with the company opening at least 7,500 of its chargers to all electric vehicles (EVs) by the end of 2024, the White House announced on Wednesday.Tesla charging stations currently use a certain power connector that require non-Tesla EVs to use an adapter. The White House said that Tesla will work to include at least 3,500 new and existing 250 kW superchargers along highways and level 2 destination chargers at locations like hotels and restaurants across the country. Tesla is also planning to double its network of superchargers.Electric car enthusiasts tantalized by new idea: converting old vehiclesRead moreThe Biden administration in 2021 set goals of having 50% of new vehicle sales in the country to be EVs and 500,000 EV chargers along highways by 2030. The US currently has around 3m EVs on the road and about 60,000 charging stations across the country.The administration’s goals “have spurred network operators to accelerate the buildout of coast-to-coast EV charging networks”, the White House said in a statement. “Public dollars will supplement private investment by filling gaps, serving rural and hard to reach locations and building capacity in communities.”Along with its partnership with Tesla, the White House is working with other companies, including car manufacturers like General Motors, Mercedes-Benz and Volvo, to build out more chargers. Rental car company Hertz is working with BP to bring chargers to Hertz locations in major cities. Hertz is planning to make one-quarter of its fleet electric by 2024.Funding for the EV charging network expansion comes largely from the bipartisan infrastructure bill passed in 2021. The bill allocates $7.5bn for charging infrastructure, including a $2.5bn community grant program. In September, the White House said that all 50 states have plans to build chargers using funding from the bill.The announcement of the White House’s partnership with Tesla comes after reports that Tesla CEO Elon Musk met with White House officials, though not with Biden himself, in late January. The Washington Post reported that Musk met with John Podesta and Mitch Landrieu, top White House aides charged with implementing Biden’s clean infrastructure policies, on 27 January.Musk has clashed with the administration and other Democrats, particularly over labor unions. In the past, Biden praised GM and Ford, both which work with unions, for their EV efforts over Tesla. In a tweet last year, Musk called Biden “a damp [sock] puppet in human form” after Biden praised GM and Ford for “building more electric vehicles here at home than ever before”.Landrieu told reporters that partnerships with companies, including Tesla, took “many, many months” and that Musk was “very open [and] very constructive” in meetings with the administration.TopicsElectric, hybrid and low-emission carsTeslaBiden administrationUS politicsnewsReuse this content More