Category Archives: News

Worldwide news. News is information about current events. This may be provided through many different media: word of mouth, printing, postal systems, broadcasting, electronic communication, or through the testimony of observers and witnesses to events. News is sometimes called “hard news” to differentiate it from soft media

Pence Says NAFTA Deal Possible in Several Weeks

U.S. Vice President Mike Pence said Saturday that he was leaving a summit of Latin American countries in Peru very hopeful that the United States, Mexico and Canada were close to a deal on a renegotiated NAFTA trade pact.

Pence told reporters it was possible that a deal would be reached in the next several weeks.

The vice president also said that the topic of funding for U.S. President Donald Trump’s proposed wall on the U.S. border with Mexico did not come up in Pence’s meeting with Mexican President Enrique Pena Nieto.

India’s Federal Police File Case Against Former UCO Bank Chairman

India’s federal police said Saturday that they had filed a case against a former chairman of state-run UCO Bank and several business executives alleging criminal conspiracy that caused a loss of 6.21 billion rupees ($95.17 million).

Police said officials at the bank had colluded with private infrastructure firm Era Engineering Infra Ltd. and investment banking firm Altius Finserve Pvt. Ltd. to siphon bank loans.

The Central Bureau of Investigation (CBI) said in a statement that Arun Kaul, the bank’s chairman from 2010 to 2015, had helped clear the loan.

Kaul did not respond to Reuters’ calls for comment. Era Engineering and Altius Finserve did not respond to calls outside regular business hours.

The case revealed yet another case of alleged bank fraud in India since February, when two jewelry groups were accused of using nearly

$2 billion of fraudulent bank guarantees in what has been dubbed the biggest fraud in India’s banking history.

That case put the banking sector under a cloud, with the CBI unearthing a string of other bank frauds since then.

In the UCO Bank case, it charged Kaul and several officials and accountants at the two companies with criminal conspiracy with intent to defraud the bank of about 6.21 billion rupees by diverting and siphoning loans, according to the

statement.

“The loan was not utilized for the sanctioned purpose and was secured by producing false end use certificates issued by the chartered accountant and by fabricating business data,” the CBI said.

The offices of the companies, accountants and the residences of the accused are being searched, the CBI said.

Power Generator with Only One Moving Part

Rural communities in United States and elsewhere often use portable backup electricity generators in case of power outages. But these machines can be costly to run for longer times and require periodic attendance. A team from West Virginia University is developing a small, natural gas-powered generator that will be able to run for years. VOA’s George Putic reports.

Philippines Investigating Facebook Over Data-Mining

More trouble may be ahead for Facebook as the Philippine government said it is investigating the social media giant over reports information from more than a million users in the Philippines was breached by British data firm Cambridge Analytica.

The Phliippines’ National Privacy Commission, or NPC, said it sent a letter to Facebook CEO Mark Zuckerberg to let him know the NPC is requiring that the company “submit a number of documents relevant to the case, to establish the scope and impact of the incident to Filipino data subjects.”

The privacy watchdog also said through its website it wants to determine whether there is unauthorized processing of personal data of Filipinos. The letter was dated April 11.

A Facebook spokesperson tells the Reuters news agency the company is committed to protecting people’s privacy and is engaged with the privacy watchdog.

During U.S. congressional hearings this past week, Zuckerberg apologized for how Facebook has handled the uproar over online privacy and revelations the data breach allowed Cambridge Analytica to access the personal information of about 87 million Facebook users.

As Zuckerberg sat through about 10 hours of questioning over two days, nearly 100 members of Congress expressed their anger over Facebook’s data privacy controversy and delved into the social media platform’s practices.

And many legislators made it clear they did not think current U.S. laws were sufficient to protect users.

“As has been noted by many people already, we’ve been relying on self-regulation in your industry for the most part,” said Diana DeGette, a Democrat from Colorado. “We’re trying to explore what we can do to prevent further breaches.”

For Congress, the hearings proved to be an education in how internet companies handle user data and the legal protections for consumers.

While Zuckerberg said many times that Facebook doesn’t sell user data, congressional leaders wanted to know how 87 million people’s data ended up in the hands of Cambridge Analytica without their knowledge or permission.

“I think what we’re getting to here is, who owns the virtual you? Who owns your presence online?” asked Marsha Blackburn, a Tennessee Republican.

“Congresswoman, I believe that everyone owns their own content online,” answered Zuckerberg.

Shadow profiles?

But can Facebook users see all the information that the social media platform has about them, including what it has picked up from outside firms?

That is something congressional leaders probed in questions about “shadow profiles,” information the social network has collected about people who do not have Facebook accounts.

Zuckerberg maintained that Facebook collects this information for security reasons but congressional leaders wanted to know more about what non-Facebook users can do to find out what the company knows about them.

New federal agency?

In the United States, the Federal Trade Commission has taken the lead in overseeing internet firms and is investigating Facebook in the Cambridge Analytica case. Congressional leaders, however, pointed out the FTC cannot make new rules. They asked whether the FTC should be given new powers, or whether a new agency focused on privacy in the digital age should be created.

“Would it be helpful if there was an entity clearly tasked with overseeing how consumer data is being collected, shared and used, and which could offer guidelines, at least guidelines for companies like yours to ensure your business practices are not in violation of the law?” Rep. Raul Ruiz (D-California), asked. “Something like a digital consumer protection agency?”

“Congressman, I think it’s an idea that deserves a lot of consideration,” Zuckerberg replied. “But I think the details on this really matter.”

During the two days of hearings, congressional leaders repeatedly looked to Europe, where new regulation known as the General Data Protection Regulation, or GDPR, governing people’s digital lives, goes into effect May 25. Zuckerberg said the regulation would apply to people in the U.S.

Zuckerberg said the company already has some of the new regulation’s privacy controls in place; but, the GDPR requires the company to do a few more things, “and we’re going to extend that to the world.”

A website dedicated to GDPR notes that organizations “in non-compliance may face heavy fines.”

Analysts note the controversy may lead to changes in how digital privacy issues are handled.

“We saw during these hearings that many, many members of Congress are ready and willing to get to work on privacy legislation,” said Natasha Duarte, a policy analyst at the Center for Democracy & Technology, an advocacy group focused on digital rights. “I think the details of what is the right legislation for the U.S. are very complex and we all need to come together and hammer it out.”

User privacy vs. monetized data

Ideas such as an outside auditor who will be checking on Facebook’s handling of user data will run into the business model of many internet firms that need data about people to offer them targeted ads.

“Monetizing data, for better or worse, is the model free services rely on,” she said.

That tension was on display in questions from Rep. Anna Eshoo, (D-California), who counts Zuckerberg among her Palo Alto constituents.

“Are you willing to change your business model in the interest of protecting individual privacy,” she asked.

In that instant, Zuckerberg demurred, saying he didn’t understand what the congresswoman meant, but acknowledged that there likely would be more internet regulation.

“The internet is growing in importance around the world and in people’s lives,” he said. “And I think it will be inevitable that there will need to be some regulation. So my position is not that there should be no regulation. But I think you have to be careful about the regulation you put in place.”

In light of the furor involving user data privacy, Facebook announced last month it was suspending Cambridge Analytica after finding such policies had been violated. Cambridge Analytica has counted U.S. President Donald Trump’s 2016 election campaign among its clients.

Separately, Philippine President Rodrigo Duterte has denied reports in the local media that his own 2016 election campaign worked with Cambridge Analytica. Duterte was quoted as saying, “I might have lost with them.”

Justice Department Further Presses 3 Sanctuary Jurisdictions

The Justice Department has sent another round of letters to the so-called sanctuary cities of Seattle and Oakland and the state of Vermont demanding further proof that they are cooperating with immigration authorities.

The letters sent Thursday warn that the department could use subpoena power to force Seattle and Vermont to provide documents. The department is seeking a legal opinion from Oakland on whether its policies violate a federal statute requiring information sharing with federal immigration authorities.

The Justice Department has threatened to deny grant money to communities that refuse to share such information. It’s part of the Trump administration’s crackdown on cities and states that refuse to help enforce U.S. immigration laws.

Seattle Mayor Jenny Durkan denounced the department’s subpoena threat Friday, saying the city complies with federal immigration law.

 

Zuckerberg’s Compensation Jumps to $8.9M as Security Costs Soar

Facebook Inc. Chief Executive Mark Zuckerberg’s compensation rose 53.5 percent to $8.9 million in 2017, a regulatory filing showed Friday, largely because of higher costs related to the 33-year old billionaire’s personal security.

About 83 percent of the compensation represented security-related expenses, while much of the rest was tied to Zuckerberg’s personal usage of private aircraft.

Zuckerberg’s security expenses climbed to $7.3 million in 2017, compared with $4.9 million a year earlier.

His base salary was unchanged at $1, while his total voting power at Facebook rose marginally to 59.9 percent.

Menlo Park, California-based Facebook, which has consistently reported stronger-than-expected earnings over the past two years, has faced public outcry over its role in Russia’s alleged influence over the 2016 U.S. presidential election.

Earlier this week, Zuckerberg emerged largely unscathed after facing hours of questioning from U.S. lawmakers on how the personal information of several million Facebook users may have been improperly shared with political consultancy Cambridge Analytica.

Ryan Endorses McCarthy for House Speakership, NBC Says

U.S. House Speaker Paul Ryan endorsed Republican House Majority Leader Kevin McCarthy to be his successor, NBC News reported Friday.

“We all think that Kevin is the right person,” the Wisconsin lawmaker said in an interview airing Sunday on Meet the Press.

Ryan said Wednesday that he would not seek re-election in November, dealing a blow to fellow Republicans and President Donald Trump before the congressional elections.

The announcement dismayed some Republicans already concerned about their prospects with U.S. voters in November. Now they fear they may have to deal with a House of Representatives leadership struggle when the party should focus on defending its congressional majorities and advancing Trump’s agenda.

Ryan’s endorsement, however, gives McCarthy an edge in the leadership contest.

Ryan told NBC he believed having McCarthy step in would work toward a smoother transition in House leadership.

“We have made a huge, positive difference in people’s lives, and people are more confident as a result of it,” Ryan said. “This leadership team has done that, and so I really do envision a more seamless transition, versus, say, the time when I came in.”

Another name circulating as a possible Ryan replacement was House Majority Whip Steve Scalise of Louisiana. He and McCarthy are expected to wage a furious effort to raise campaign funds for fellow House Republicans to shore up support for their potential leadership aspirations.

Representative Jim Jordan of Ohio, a co-founder of the conservative House Freedom Caucus, whose members have at times clashed with Ryan and other Republican leaders, said he was also open to pursuing the role of speaker.

“We have six more months to prove Republicans deserve to keep the majority. If and when there is a speaker’s race, colleagues have approached me about running, and that’s something I’m open to doing,” Jordan said in an statement emailed Friday to Reuters.

Justice Dept. Report: Fired FBI Deputy Director Misled Investigators

A Justice Department report accuses fired FBI Deputy Director Andrew McCabe of lacking candor and misleading investigators.

The report by the Justice Department inspector general’s office claims that McCabe misled investigators about his role in a news media disclosure about presidential candidate Hillary Clinton just days before the 2016 election.

McCabe was fired last month by Attorney General Jeff Sessions on the recommendation of FBI officials who had knowledge of the inspector general’s findings.

The report, released to lawmakers and the public Friday, alleges that McCabe authorized FBI officials to speak with a Wall Street Journal reporter about an investigation into the Clinton Foundation. It said McCabe later misled FBI officials when questioned about his actions.

McCabe denies misleading investigators.

McCabe says when he believed his answers to the inspector general were misunderstood, he went back and tried to correct them. His lawyer says the inspector general unfairly tried to conclude its work before McCabe could retire with a full pension.

In a statement Friday, an attorney for McCabe disputed the Justice Department findings and said the rush to fire him was “unprecedented, unseemly and cruel.”

McCabe was fired two days before he was planning to retire, potentially denying him part or all of his pension.

McCabe is close to former FBI director James Comey, who was fired by Trump in May 2017. McCabe has called his firing “retribution” and said he was singled out because of the “role I played, the actions I took, and the events I witnessed in the aftermath” of Comey’s firing.

Trump has publicly criticized McCabe for “lies and corruption” and wrote on Twitter that his firing was a “great day for Democracy.”

On Friday, Trump tweeted that “McCabe was totally controlled by Comey” and that the investigation into Russian influence in the 2016 U.S. presidential election and whether there was collusion between Trump’s campaign and Russia was “made up by this den of thieves and lowlifes!”

McCabe has fired back, saying his dismissal was part of the Trump administration’s “ongoing war” on the FBI and special counsel Robert Mueller’s Russia investigation.

Mueller, who was appointed after Comey was fired, is investigating whether Russia attempted to meddle in the election. He also is investigating whether Trump’s actions, including firing Comey, constitute obstruction of justice.

Some information is this report was provided by The Associated Press.

Ambassador Haley: Trump Not Yet Decided on Syria Response

U.S. Ambassador to the United Nations Nikki Haley said Friday that President Donald Trump is still weighing options in response to a suspected chemical weapons attack in Syria that Washington believes President Bashar al-Assad carried out.

“Our president has not yet made a decision about possible actions in Syria,” Haley told a meeting of the U.N. Security Council. “But should the United States and our allies decide to act in Syria, it will be in defense of a principle on which we all agree. It will be in defense of a bedrock international norm that benefits all nations.”

Haley told reporters on her way into the council session that she would be returning to Washington on Friday for more meetings on a potential response.

“I am unbelievably proud of how President Trump has looked at the information, analyzed, not let anyone rush him into this, because he has said from the beginning — we have to know when we’re right, we have to know all the information, we have to know that there’s proof and we have to know that we’re taking every precaution necessary should we take action,” she told reporters.

At least 40 people were killed and hundreds sickened in last week’s attack in Douma, in eastern Ghouta on the outskirts of Damascus.

“At some point, you have to do something,” Haley said. “At some point, you have to say enough.”

Syria has denied using chemical weapons, but Haley criticized the Syrian president for the repeated use of chlorine and sarin gas on civilians.

“Let’s be clear: Assad’s most recent use of poison gas against the people of Douma was not his first, second, third, or even 49th use of chemical weapons,” the U.N. ambassador said. “The United States estimates that Assad has used chemical weapons in the Syrian war at least 50 times. Public estimates are as high as 200.”

Russia

She chastised Russia for steadfastly protecting Assad from accountability with its Security Council veto and for not living up to its obligations in making sure Syria gave up all of its chemical weapons under a 2013 deal.

“Russia can complain all it wants about fake news, but no one is buying its lies and its cover-ups,” Haley said.

Russia called Friday’s Security Council meeting, the fourth day this week it has discussed Syria. Ambassador Vassily Nebenzia said his government has worked “robustly and fully” to de-escalate tensions in international relations. He said Moscow sponsored and supported the Organization for the Prohibition of Chemical Weapons (OPCW) sending a fact-finding mission to Douma to investigate, but the U.S., Britain and France had rejected it.

“Thereby, these countries have demonstrated they have no interest in an investigation,” Nebenzia said. “The sole thing they have an interest in is to oust the Syrian government and, more broadly, to deter and contain the Russian Federation.”

A measure put forward by Moscow supporting an OPCW investigation, but not a mechanism to attribute blame for chemical attacks, failed to pass the Security Council on Tuesday, garnering support from six of the 15 council members.

OPCW inspectors have arrived in Syria and are scheduled to begin collecting samples Saturday in Douma.

Britain, France

The United States has been in close consultations with allies Britain and France on what response it should take.

French envoy Francois Delattre said Assad’s government had “reached a point of no return” with its most recent chemical weapons attack.

“This is a situation to which the world must provide robust, united and steadfast response and this is our responsibility,” Delattre told the council Friday.

He said France would “shoulder its responsibility to end an intolerable threat to our collective security,” and ensure respect for international law and Security Council resolutions.

“The use of chemical weapons cannot be allowed to go unchallenged,” said British Ambassador Karen Pierce. “The British Cabinet has agreed on the need to take action to alleviate humanitarian distress and to deter the further use of chemical weapons by the Assad regime, and we will continue to work with our friends and allies to coordinate an international response to that end.”

As the international community waits to see if there will be a military response, U.N. Secretary-General Antonio Guterres warned of the dangers of escalation.

“Increasing tensions and the inability to reach a compromise in the establishment of an accountability mechanism threaten to lead to a full-blown military escalation,” he said. “In my contacts with you — especially with the Permanent Members of the Security Council — I have been reiterating my deep concerns about the risks of the current impasse and stressed the need to avoid the situation spiraling out of control.”

Guterres added that the situation in Syria is now the “most serious threat to international peace and security.”

What Does Japan Expect from Talks with US Next Week?

Trade and North Korea’s nuclear and missile programs will be the key topics for Japan during U.S. President Donald Trump’s meeting with Japanese Prime Minister Shinzo Abe next week.

Earlier this month, Chief Cabinet Secretary Yoshihide Suga spoke on Japan’s priorities for the upcoming meeting. He said addressing how to handle the North Korean missile situation is high on the agenda, as is trade.

“We anticipate discussions on the importance of free trade — since that is of interest to us,” he said.

Trump hit Japan and many other countries with aluminum and steel trade restrictions last month. Japan has been asking that the restrictions to be lifted.

“The U.S. wants Japan to complain about the tariff and then wants to talk about a bilateral treaty,” said Hajime Izumi, professor of international relations at Tokyo International University. “From the Japan side, they aren’t interested in doing a bilateral FTA [Free Trade Agreement]. This is not going to be easy.”

That’s because Japan has just signed on to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) with 10 other countries. Critics say Abe is unlikely to coax Trump to reconsider joining the trade pact, and Trump may see similar results on a bilateral proposal.

Another key topic: the North Korea missile situation. Critics say Japan will remind Trump to negotiate on all types of missiles, and not just long-range missiles that would reach American soil.

“While the U.S. is trying to address the issue of intercontinental ballistic missiles capable of reaching the United States, from the Japanese perspective, what is more important is the medium-range ballistic missiles with a range of 1,300 kilometers, capable of reaching most parts of Japan, including Tokyo,” said Narushige Michishita, professor of securities and international studies, National Graduate Institute for Policy Studies.

Meanwhile, some Japanese analysts observed that North Korean leader Kim Jong Un’s meeting with Chinese leader Xi Jinping last month indicated North Korea’s nervousness about the upcoming talks with Washington.

“Eventually, [the U.S. and North Korea] may conclude that all the diplomatic efforts have been exhausted,” said Kunihiko Miyake, president of the Foreign Policy Institute in Tokyo. “That’s when the Americans might or could contemplate a possibly harsher, more physical measure against North Korea. That’s what North Koreans are most concerned about.”

Miyake raises the possibility of a meeting between Kim and Russian President Vladimir Putin, as indicated in an envoy meeting with top Russian diplomats April 10.

“[North Korea is] fully aware of the military disadvantages vis-à-vis against the Americans,” said Miyake. “That’s why [North Korea needs] to talk to the Russians and Chinese to prevent that kind of worst-case scenario from happening.”

Miyake said North Koreans had nothing to offer to Russia or China but “their existence, as a buffer against the U.S. control over the Korean peninsula.”

Abduction issue

Many critics say a sure topic will be the Japan abduction issue, a domestic priority rivaling the North Korean missiles in importance.

Former North Korean leader Kim Jong Il admitted in 2002 that its agents had abducted Japanese citizens in the 1970 and ’80s. Several were returned, but Tokyo has since demanded more information.

“There is a possibility some of [the abductees are] still there, living in North Korea,” said Michishita. “So we have to take them back. It’s a real issue.”

Another point critics are betting on is that true denuclearization of North Korea will be a long way away, even if a Trump-Kim meeting happens and even if North Korea says it will denuclearize.

“Trump must have been informed or convinced by now that the word ‘denuclearization’ has many meanings,” Miyake said. “Denuclearization of the North means dismantling North Korean missiles, but denuclearization of the Korean peninsula — which was agreed upon with China — means they want to basically kick the U.S. out of the Korean peninsula.”

Trump and Abe are expected to agree to continue applying maximum pressure against North Korea until talks produce meaningful progress.

Trump, Cohen Lawyers Fight to Shield Items Seized in FBI Raid

Lawyers for President Donald Trump and his personal attorney, Michael Cohen, told a federal judge in New York on Friday that they believe some of the documents and devices seized from Cohen during an FBI raid are protected by attorney-client privilege, and they want a chance to review the items before prosecutors get to examine them.

In the hour-long court hearing, U.S. District Judge Kimba Wood said Cohen’s lawyers have asked to “take the first cut at identifying documents that are relevant or not relevant to the investigation.”

An attorney for the president, Joanna Hendon, appeared as well, telling the judge Trump has “an acute interest in this matter.”

“This is of most concern to him. I think the public is a close second. And anyone who has ever hired a lawyer a close third,” she said.

Federal agents seized records on a variety of subjects in raids Monday on Cohen’s Manhattan office, apartment and hotel room, including payments that were made in 2016 to women who might have damaging information about Trump.

The court hearing Friday didn’t provide new insight into why agents seized the items, but the judge, prosecutors and the attorneys all spoke openly about an investigation that previously has been shrouded in secrecy.

Wood adjourned the hearing until 2 p.m. It was unclear whether that session will be open or closed to the public. The judge said sealing the proceedings might be needed to protect “the privacy interests of potentially innocent people.”

FBI and Justice Department officials have refused to say what crimes they are investigating, but people familiar with the investigation have told The Associated Press the search warrant used in the raids sought bank records, business records on Cohen’s dealing in the taxi industry, Cohen’s communications with the Trump campaign and information on payments made to a former Playboy model, Karen McDougal, and a porn actress, Stephanie Clifford, who performs under the name Stormy Daniels. Both women say they had affairs with Trump.

Clifford’s lawyer, Michael Avenatti, was in the audience for the court session and asked the judge to be heard at 2 p.m.

“We have every reason to believe that some of the documents seized relate to my client,” he said.

Cohen has denied wrongdoing.

Trump has called the raids a “witch hunt,” “an attack on our country,” and a violation of rules that ordinarily make attorney client communications confidential.

Those confidentiality rules can be set aside under certain circumstances if investigators have evidence that a crime has been committed.

Public corruption prosecutors in the U.S. attorney’s office in Manhattan are trying to determine, according to one person familiar with the investigation, if there was any fraud related to payments to McDougal and Clifford.

McDougal was paid $150,000 in the summer of 2016 by the parent company of the National Enquirer under an agreement that gave it the exclusive rights to her story, which it never published.Cohen said he paid Daniels $130,000 in exchange for her silence about her claim to have had a one-night-stand with Trump.

The White House has consistently said Trump denies either affair.

New Invention Detects Cancer in Seconds

If cancer is suspected in a patient, surgeons, in most cases, would have to cut some of the suspected tissue out and test it. Getting the results could be a long process. A new invention called a MasSpec Pen could cut the wait time to just seconds. VOA’s Elizabeth Lee reports from Austin, Texas, where the pen was created.

CO2-reducing XPRIZE Competition Enters Final Phase

Nonprofit international organization for public competitions XPRIZE has announced 10 finalists in its race to develop new technologies to lower carbon-dioxide emissions. Each team will get an additional incentive of $5 million to scale up their ideas and present them for the top prize of $20 million. VOA’s George Putic reports.

Trump Task Force to Study Postal System Finances

After weeks of railing against online shopping giant Amazon, President Donald Trump signed an executive order Thursday creating a task force to study the United States Postal System.

In the surprise move, Trump said that USPS is on “an unsustainable financial path” and “must be restructured to prevent a taxpayer-funded bailout.”

The task force will be assigned to study factors including its pricing in the package delivery market and will have 120 days to submit a report with recommendations.

The order does not specifically mention Amazon or it owner, Jeff Bezos. But Trump has been criticizing the company for months, accusing it of not paying its fair share of taxes, harming the postal service, and putting brick-and-mortar stores out of business. Trump has also gone after Bezos personally and accused The Washington Post, which he owns, of being Amazon’s “chief lobbyist.”

The U.S. Postal Service has indeed lost money for years, but package delivery has actually been a bright spot for the service.

Boosted by e-commerce, the Postal Service has enjoyed double-digit revenue increases from delivering packages. That just hasn’t been enough to offset pension and health care costs as well as declines in first-class letters and marketing mail, which together make up more than two-thirds of postal revenue.

Still, Trump’s claim the service could be charging more may not be entirely far-fetched. A 2017 analysis by Citigroup concluded that the Postal Service, which does not use taxpayer money for its operations, was charging below market rates as a whole on parcels. Still, federal regulators have reviewed the Amazon contract with the Postal Service each year, and deemed it to be profitable.

 

China Posts Rare Trade Deficit for March; Surplus with US Narrows

China’s exports growth unexpectedly fell in March, raising questions about the health of one of the economy’s key growth drivers even as trade tensions rapidly escalate with the United States.

March import growth beat expectations, however, suggesting its domestic demand may still be solid enough to cushion the blow from any trade shocks.

That left China with a rare trade deficit for the month, also the first drop since last February.

The latest readings on the health of China’s trade sector follow weeks of tit-for-tat tariff threats by Washington and Beijing, sparked by U.S. frustration with China’s massive bilateral trade surplus and intellectual property policies, that have fueled fears of a global trade war.

China’s March exports fell 2.7 percent from a year earlier, lagging analysts’ forecasts for a 10 percent increase, and down from a sharper-than-expected 44.5 percent jump in February, which economists believe was heavily distorted by seasonal factors.

For the first quarter as a whole, exports still grew a hefty 14.1 percent.

Stronger currency

Some analysts had expected a pullback in March exports following an unusually strong start to the year, when firms stepped up shipments before the long Lunar New Year holiday in mid-February. That scenario did not alter their view that global demand remains robust.

But a stronger currency could also be starting to erode Chinese exporters’ competitiveness. The yuan appreciated around 3.7 percent against the U.S. dollar in the first quarter this year, on top of a 6.6 percent gain last year.

No hard timeline has been set by either Washington or Beijing for the actual imposition of tariffs, which leaves the door open to negotiations and a possible compromise that could limit the damage to both sides.

But with the threat of tariffs hanging over nearly a third of China’s exports to the United States, analysts say its companies and their U.S. customers may try to front-load shipments before any measures kick in.

China’s exports to the U.S. rose 14.8 percent in the first quarter from a year earlier, while imports rose 8.9 percent.

That sent its quarterly trade surplus with the U.S. surging 19.4 percent to $58.25 billion, though the March reading narrowed to $15.43 billion from $20.96 billion in February.

China’s total aluminum exports in March rose to their highest since June, just as the United States imposed a 10 percent tariff on imports of the metal on March 23 along with a 25 percent duty on steel imports.

Outlook cloudy

China’s exports rode a global trade boom last year, expanding at the fastest pace since 2013 and serving as one of the key drivers behind the economy’s forecast-beating expansion.

But the sudden spike in trade tensions with the United States is clouding the outlook for both China’s “old economy” heavy industries and “new economy” tech firms.

Washington says China’s $375 billion trade surplus with the United States is unacceptable, and has demanded Beijing reduce it by $100 billion immediately.

In a move to further force China to lower the trade surplus running with the U.S., Trump unveiled tariff representing about $50 billion of technology, transport and medical products early this month, drawing an immediate threat of retaliatory action from Beijing.

China’s tech sector, which is key part of Beijing’s longer-term “Made in China 2025” strategy to move from cheap goods to higher-value manufacturing, may be particularly vulnerable.

High-tech products have been among its fastest growing export segments. China exported $137.8 billion worth of high-tech products in the first quarter, up 20.5 percent on-year.

Fight to Replace Ryan Could Blow Up Budget Deal

A six-month budget truce stitched together by Congress in March could unravel if Republican leaders vying to replace U.S. House of Representatives Speaker Paul Ryan indulge party conservatives who want to renege on critical parts of the pact.

At issue is a resurgent move by conservative Republicans to rescind, or cut, about $60 billion in non-defense domestic spending increases that were key to winning Democratic votes.

That deal also significantly raised U.S. military spending this year as demanded by Republicans.

Provocative cuts

Those seeking the cuts would need the support of Republican House leaders, such as Kevin McCarthy and Steve Scalise, both seen as potential rivals to replace Ryan as the No. 1 House Republican and, if the party retains its majority in November elections, as speaker.

McCarthy, the House majority leader, talked up the provocative spending cuts Thursday. In a statement, he said Republicans were “looking at other tools to cut spending” and added: “We have nothing to lose by making big changes.”

One of several Republicans who will have a say in the budding battle, McCarthy explicitly mentioned using a procedural tool known as rescissions in which President Donald Trump could team up with Republicans to kill off the non-military spending increases.

Allowing that to happen could rekindle the budget battles that consumed Congress for much of 2017 and early 2018, a scenario lawmakers had hoped the $1.3 trillion March spending bill had averted through November’s congressional elections.

‘Chilling effect’

Both Democrats and moderate Republicans warned against such an outcome. 

“Bad idea,” said Republican Representative Charlie Dent. “If they want to go down this path, which won’t be successful … we wouldn’t be able to pass an appropriations bill” for the fiscal year beginning Oct. 1, he said.

More broadly, he added, trashing the spending deal would “have a chilling effect” on all sorts of future legislation.

Ryan and enough rank-and-file Republicans could link arms with Democrats to defend the spending deal enacted into law March 23 and prevent a resumption of hostilities over the budget.

Doing so, however, could risk alienating Republican conservatives such as Representative Jim Jordan, a leading member of the right-wing House Freedom Caucus, at a politically delicate time given the looming leadership shake-up in the House and November’s elections that have Republicans struggling to persuade voters of their fiscal conservatism.

“Let’s get aggressive,” Jordan told reporters just hours after Ryan said Wednesday that he would quit Congress at the end of 2018, setting up an internal struggle to replace him.

FBI oversight

Jordan urged pushing for the cuts to Democrats’ domestic priorities, along with welfare changes and tougher oversight of the Federal Bureau of Investigation, which has investigated Russia’s role in the 2016 U.S. presidential election.

Any ambitious House leader could help his or her cause by agreeing to the conservatives’ demands, in part a response to the huge deficit expansion created by the spending deal and December’s Republican tax overhaul package.

US to Hike Fees to $35 at Popular National Parks

The U.S. Interior Department will hike fees at the most popular national parks to $35 a vehicle, backing off a plan that would have cost visitors $70 a vehicle to visit Yellowstone and other well-known parks, the agency said Thursday.

The new plan boosts fees at 117 parks by $5, up from the current $30 but half the figure the Interior Department proposed in October for peak-season visitors at 17 heavily visited parks, it said in a statement.

The fee increase would help finance a $11.6 billion backlog of maintenance and improvements. The proposal generated a wave of protests, and the Interior Department had to extend its comment period by 30 days to accommodate the more than 100,000 responses it received.

“This new fee structure addresses many of the concerns and ideas provided by the public regarding how to best address fee revenue for parks,” the department’s statement said.

The new charges go into effect June 1, and more than two-thirds of national parks will remain free to enter, it said.

Federal law requires that 80 percent of revenue generated at a national park remains where it is collected. The remaining funds can be funneled to other projects within the system.

Federal Jury Finds Ex-Congressman Guilty of Fraud

A federal jury in Washington on Thursday convicted former Texas Republican Congressman Stephen Stockman of numerous counts of fraud, including stealing charitable contributions for campaign and personal expenses.

U.S. attorneys said Stockman used his position as a public servant to defraud donors and break federal law.

They say his conviction shows no one is above the law.

Stockman was charged with 23 counts, including money laundering, mail and wire fraud, and lying to federal election officials.

Among the charges, Stockman solicited more than $1 million in charitable contributions on false pretenses and used much of the money to pay for his election campaign and other personal expenses.

He also spent some of the funds to illegally spy on a political opponent in his failed 2014 campaign for the U.S. Senate.

Two former Stockman aides already had pleaded guilty in their roles in the scheme.

Stockman, a Republican, served two terms in the U.S. House of Representatives from Texas, from 1995 to 1997 and again from 2013 to 2015.

He is to be sentenced August 17.

Year-Round Sales of E15 Fuel Possible, Trump Says

U.S. President Donald Trump said Thursday that his administration might  allow the sale of gasoline containing 15 percent ethanol year-round, which could help farmers by firing up corn demand but faces opposition from oil companies.

The proposal marked the latest move by the Trump administration to navigate the rival oil and corn constituencies as they clash over the nation’s biofuels policy. Oil refiners say the Renewable Fuel Standard requiring them to add biofuels into gasoline is costly and displaces petroleum, while the farm sector says the law provides critical support to growers.

The Environmental Protection Agency currently bans the higher ethanol blend, called E15, during summer because of concerns it contributes to smog on hot days — a worry biofuels advocates say is unfounded.

Gasoline typically contains just 10 percent ethanol.

“We’re going to be going probably, probably to 15, and we’re going to be going to a 12-month period,” Trump told reporters during a White House meeting. “We’re going to work out something during the transition period, which is not easy, very complicated.”

Earlier Thursday, EPA spokeswoman Liz Bowman said the agency had been “assessing the legal validity of granting an E15 waiver since last summer” and was awaiting an outcome from discussions with the White House, the Department of Agriculture and Congress before making any final decisions.

Monte Shaw, executive director of the Iowa Renewable Fuels Association, said the proposed shift to year-round E15 sales would be “very exciting news.”

“It would be a great morale boost for rural America, and more importantly a real demand boost if it can be moved forward quickly,” he said in an interview.

Annual biofuels figure

Under the RFS, the EPA sets the volume of ethanol and other biofuels that must be mixed into the nation’s fuel supply on a yearly basis — and a move to expand E15 sales could encourage the EPA to set those volumes higher in coming years.

Currently, refiners are required to blend around 15 billion gallons of ethanol into the nation’s fuel annually.

Shares of major biofuels producers rose slightly after the announcement. Archer Daniels Midland Co shares gained 2.7 percent to close at $45.30.

It was unclear, however, whether the move would help the refining sector — which has been lobbying hard instead for a cap on the price of blending credits that refiners must acquire to prove compliance with the RFS.

Greater blending of ethanol through year-round E15 sales would theoretically increase supplies of the tradable credits, and thus reduce prices. But at the same time, more ethanol translates to a smaller share of petroleum-based fuel in American gas tanks, which would hurt refiner sales.

The American Petroleum Institute, which represents big oil companies, issued a statement opposing Trump’s proposal to expand E15 sales, arguing that high-ethanol fuel can damage engines and is incompatible with certain boats, motorcycles and lawn mowers.

“The industry plans to consider all options to prevent such a waiver. The RFS is broken and we continue to believe the best solution is comprehensive legislation,” API Downstream Group Director Frank Macchiarola said in the statement.

Refiners’ shares were mixed after Trump’s comments, with Andeavor closing down 2.6 percent at $110.13 and Valero Energy Corp. up 0.2 percent at $100.53.

Facebook to Stop Spending Against California Privacy Effort

Facebook says it will stop spending money to fight a proposed California ballot initiative aimed at giving consumers more control over their data.

The measure, known as the “California Consumer Privacy Act,” would require companies to disclose upon request what types of personal information they collect about someone and whether they’ve sold it. It also would allow customers to opt out of having their data sold.

The company made the announcement Wednesday as chief executive Mark Zuckerberg underwent questioning from Congress about the handling of user data.

Pressure has mounted on Facebook to explain its privacy controls following revelations that a Republican-linked firm conducted widespread data harvesting.

Facebook had donated $200,000 to a committee opposing the initiative in California — part of a $1 million effort by tech giants to keep it off the November ballot.

Facebook said it ended its support “to focus our efforts on supporting reasonable privacy measures in California.”

Proponents of the ballot measure applauded the move.

“We are thrilled,” said Mary Ross, president of Californians for Consumer Privacy.

The California Chamber of Commerce and other groups are fighting to keep the measure off the ballot through the “Committee to Protect California Jobs.” Google, AT&T, Verizon and Comcast also contributed $200,000 each to that effort in February.

Committee spokesman Steve Maviglio said the measure would hurt the California economy.

“It is unworkable and requires the internet in California to operate differently — limiting our choices, hurting our businesses, and cutting our connection to the global economy,” he said.

Trump Wants to Rejoin Pacific Trade Pact

President Donald Trump on Thursday ordered his top economic and trade advisers to look into rejoining the Pacific Rim trade pact that he abandoned last year three days after taking power.

Farm-state lawmakers said after a White House meeting on agricultural trade that Trump told his economic adviser, Larry Kudlow, and U.S. Trade Representative Robert Lighthizer to weigh the benefits of re-entering the Trans-Pacific Partnership — a deal struck by the Obama administration.

Nebraska Senator Ben Sasse, a Republican critic of Trump’s trade policies, said that at one point in the meeting, the president turned to Kudlow and said, “Larry, go get it done.”

Sasse represents a Midwestern farm state. He called Trump’s change of mind on the Pacific trade deal “good news.” He said the president has consistently “reaffirmed the idea that TPP would be easier for us to join now.”

Early Friday, Japanese Finance Minister Taro Aso said he would welcome a move by the United States to rejoin the TPP. 

Aso, speaking to reporters after a cabinet meeting, also said that he expected Prime Minister Shinzo Abe and Trump to discuss TPP at their summit meeting next week.

Trump has often said he prefers bilateral trade deals instead of multinational pacts, believing the U.S. does not fare well in bigger trade deals. It was not immediately clear why he now is open to rejoining the TPP.

Trump said throughout his presidential campaign “The Trans-Pacific Partnership is another disaster done and pushed by special interests who want to rape our country, just a continuing rape of our country. That’s what it is, too. It’s a harsh word: It’s a rape of our country.”

During opening statements at Thursday’s meeting before he shooed out reporters, Trump assured the lawmakers that he intends to negotiate better trade deals for the American farmer in the face of threatened new Chinese tariffs and contentious negotiations with Canada and Mexico.

“It’ll be very good when we get it all finished,” Trump said. “The farmers will do fantastically well. Agriculture will be taken care of 100 percent.”

Trump contended that “China has consistently treated the American farmer very poorly,” noting that Beijing had until last year blocked U.S. beef sales for 14 years.

Now, in response to Trump’s announced intention to impose new or higher tariffs on $150 billion worth of Chinese imports, China says it will impose new levies on an array of U.S. exports, including wheat, soybeans, corn, cranberries and orange juice, raising fears among U.S. farmers that their livelihoods are threatened.

Administration officials have said China and the United States can negotiate their differences and avoid a trade war.

Trump said Thursday “we’re having some great discussions” with China and that he believes the outcome will be “tariffs off and the barriers down.”

But a spokesman for China’s commerce ministry said the United States is not showing any sincerity and that China will not hesitate to fight back if the U.S. escalates trade tensions.

VOA’s Kenneth Schwartz contributed to this report. Some information for this report came from Reuters.

World Trade Body Warns US-China Tensions May Dent Business

The World Trade Organization predicts continued trade growth this year, though it warns that tensions and “tit-for-tat” retaliatory measures, notably between the U.S. and China, could compromise those projections.

WTO Director-General Roberto Azevedo laid out the trade body’s predictions at a news conference Thursday amid concerns about a trade war over U.S. President Donald Trump’s planned tariffs on Chinese and other goods and Beijing’s retaliation.

 

As it stands, the forecast is for 4.4 percent growth in merchandise trade volumes in 2018, easing to 4 percent next year. That’s down from 4.7 percent in 2017.

 

The WTO is pointing to “broadly positive signs” in world trade but says they face headwinds from “a rising tide of anti-trade sentiment and the increased willingness of governments to employ restrictive trade measures.”

Experts Explore the Way Forward after Facebook Data Leak

A data leak that enabled political consulting firm Cambridge Analytica to access personal information from about 87 million Facebook users has generated an uproar and concerns over online privacy and the power of the major internet platforms. On VOA’s Plugged In with Greta Van Susteren experts explore the issue and next steps to better protect user privacy while also preserving internet openness. VOA’s Jesusemen Oni has more.