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Making MIF work (2)
Another oft-repeated criticism of the MIF is the source of its initial capitalization. The original version had the SSS and GSIS mandatorily stepping up to fund the MIF which raised the hackles of the public, not only because such action might be legally infirm but more so because of the risks the investment could pose to the stability of the pension funds. To address these concerns, the final version limits the initial funders of P125 billion in paid-up capital to LandBank, DBP and BSP. Landbank’s share of P50 billion translates to about 22 percent of its present net worth and roughly its projected income for the next 15 months. While for DBP, its contribution of P25 billion comes to about 8 times its 2022 net income. On the other hand, BSP’s initial share of P50 billion, about 45 percent of its net worth, has been the critics’ loudest carp and, in my view, a valid disquiet that this could have a potentially deleterious effect on the BSP’s sacrosanct ability to defend the stability of our financial system, particularly during a black swan event. The recent banking ruckus in the US and Europe is so fresh in everyone’s mind that an unimaginable, unexpectedly similar scenario could just as easily arise. How about the eruption of South China Sea hostilities or a resurgent deadly corona variant triggering a wholesale foreign exchange flight to safer shores? Or a major overleveraged conglomerate going under dragging in the process a handful of too big to fail creditor banks to the deep end of a full scale banking run? So why was the capitalization structured this way? Since the law actually refers to the National Government, why wasn’t this just budgeted and sourced from appropriations? My guess: with various pressing post-Covid needs competing for scarce funds, I think budgeting for the MIF would have been easily blown out of the water by the legislators. Thus this approach. Packaged separately and promoted as a stand-alone sovereign investment fund and hinting at possible private sector participation, particularly foreign, would have had better prospects of passage, to which I agree. But where then to secure the capital? A logical source that would have been non-controversial are the various properties of the government located in prime areas that would be a magnet for attracting the major developers. The bill actually refers to this possibility. It is definitely not too late to identify in the IRR a listing of target properties. In addition, I am certain that Landbank, DBP and even BSP have their share of ROPOAs (real and other properties owned or acquired) composed of foreclosed mortgaged properties. There is already even a law, FIST (Financial Institutions Strategic Transfer), covering such a structure that is just waiting for its IRR to be published for the law to be immediately operational. The recent banking ruckus in the US and Europe is so fresh in everyone’s mind that an unimaginable, unexpected similar scenario could just as easily arise. But notwithstanding the capital infusion via properties being immensely doable, the fund would still need to have a respectable level of liquidity at the outset to have the market credibility to take on its avowed goals. How could this be accomplished? We need not look too far for possible comparable models. The REITs (real estate investment trust) of late have proven to be quite a popular investment vehicle. Their IPOs have generally been a smashing success. So why not have a subset fund of the MIF list as a REIT with pre-identified cornerstone big real estate players as strategic partners. Such an IPO would surely resonate with the retail and institutional investors and, if the market capitalization is large enough and its shares widely distributed, would likely generate post-IPO liquidity and, more significantly, create market determined valuations of the underlying assets. Another angle to explore in order to secure immediately some initial liquidity is for the capital commitments to come in tranches as the actual requirements arise. After all, I can’t imagine there is already an immediate investment that has been lined up at this stage. Surely, the initial requirements would just essentially be for the mobilization phase of organizing the MIF. I believe such a process will not unduly disturb the current financials of the founding GFIs and could provide some breathing space to prepare for the eventual but gradual infusions. Again, I believe there is nothing in the final bill that could preclude the IRR from incorporating these tweaks. Until next week… OBF! For comments, email bing_matoto@yahoo.com. The post Making MIF work (2) appeared first on Daily Tribune......»»
HSBC shares fall to 25-year low amid fears of China& rsquo;s list
Hong Kong---Shares in banking giant HSBC plunged to a 25-year low Monday on fears it could be added to a Chinese list of firms deemed a threat to national security and following news it had been accused of allowing fraudulent activity to go unpunished......»»
China criticises 'bewildering' US trade policies in face of curbs from Washington
Beijing [China], March 7 (ANI): Chinese Foreign Minister Wang Yi criticised the United States for its "bewildering" trade policy, describing it as a series of "unfathomable absurdities," CNN reported. In a press conference held on the sidelines of a political gathering in Beijing, Wang accused Washington of employing various tactics to suppress China, highlighting the growing list of unilateral sanctions as reaching "bewi.....»»
China criticises 'bewildering' US trade policies in face of curbs from Washington
Beijing [China], March 7 (ANI): Chinese Foreign Minister Wang Yi criticised the United States for its "bewildering" trade policy, describing it as a series of "unfathomable absurdities," CNN reported. In a press conference held on the sidelines of a political gathering in Beijing, Wang accused Washington of employing various tactics to suppress China, highlighting the growing list of unilateral sanctions as reaching "bewi.....»»
Malta hosts fresh round of Ukraine-backed peace talks
A third round of Ukrainian-backed peace talks opened in Malta Saturday with representatives from more than 60 countries but without Moscow, which denounced it as a "blatantly anti-Russian event". Ukrainian President Volodymyr Zelensky addressed the first of two days of closed-door talks among national security and policy advisors, which he hopes will drum up support for his 10-point plan to end the war. In a statement on social media afterward, he said 66 countries had taken part in the talks, proof that his plan "has gradually become global". It follows similar meetings in Jeddah and Copenhagen this summer, with the Ukrainians hoping to eventually hold a summit at the level of heads of state. "The meeting confirmed the broad interest and increasing support for the key elements of Ukraine's Peace Formula," an EU official said Saturday. Against the backdrop of the Hamas-Israel war, it also showed "that restoration of just peace is important beyond Ukraine -- it is about a global plea for respect of international law". Russian foreign ministry spokeswoman Maria Zakharova however has dismissed the Malta talks as a "blatantly anti-Russian event". They had "nothing to do with the search for a peaceful resolution", she said on Thursday. "Obviously such gatherings have absolutely no perspective, they are simply counterproductive." China absent Participants in Malta included the United States, the EU, and Britain, staunch supporters of Kyiv following Russia's February 2022 invasion. Turkey, which has offered itself as a mediator between Ukraine and Russia, was also represented, according to a list seen by AFP before the talks opened. So too were South Africa, Brazil, and India -- all members of the influential BRICS bloc, which also includes Russia. South Africa and India have not condemned Russia's invasion, while Brazil has refused to join Western nations in sending arms to Ukraine or imposing sanctions on Moscow. China, which insists it is neutral and refuses to criticize the invasion, did not attend, despite being present in Jeddah in August, according to the EU official. Organizers were hoping for a joint statement from the Malta summit after both previous meetings ended without a final declaration. Andriy Yermak, the head of Ukraine's presidential office, said on Telegram that the discussions on Saturday were "lively" and focused on five key areas, notably the issue of Ukraine's territorial integrity. Zelensky's peace plan calls for Russia to withdraw all its troops from Ukraine's internationally recognized borders, including from the territory of Crimea, which it annexed in 2014. Russia, which claimed last year to have annexed the four Ukrainian regions of Lugansk, Donetsk, Kherson, and Zaporizhzhia, has rejected any settlement that would involve giving up land. The Malta talks are also looking at nuclear security, notably the need to ensure the safety of the Zaporizhzhia nuclear power plant, and how to protect Ukraine's energy infrastructure as winter approaches. The issue of food security was also on the agenda, as Russia blocks grain exports from Ukraine; and humanitarian issues, including the release of prisoners and the return of Ukrainian children to taken to Russia. "Russia will have to give in to the international community. It will have to accept our common conditions," Yermak said. Both Russia and Ukraine are preparing for a grueling winter ahead, with Ukraine warning of renewed strikes on its energy infrastructure and Russia pushing back against Kyiv's counteroffensive. The post Malta hosts fresh round of Ukraine-backed peace talks appeared first on Daily Tribune......»»
Chip maker Intel beats earnings expectations as it pursues rivals
US chip giant Intel on Thursday said it made more money than expected in the recently ended quarter as it continued to invest in a "geographically balanced" supply chain. Intel shares jumped more than 7 percent to $34.88 in after-market trades. "We delivered a standout third quarter, underscored by across-the-board progress on our process and product roadmaps; agreements with new foundry customers, and momentum as we bring AI everywhere," said Intel chief executive Pat Gelsinger. Intel reported revenue of $14.2 billion, which was 8 percent less than the amount seen in the same quarter a year earlier but ahead of forecasts. Net income tallied $300 million, compared with $1 billion profit in the same period in 2022, earnings figures showed. "Our results exceeded expectations," said Intel chief financial officer David Zinsner, who said earnings benefited from "expense discipline." Intel has been working to catch up with rivals, especially Nvidia, when it comes to powerful chips needed to handle the computing demands of artificial intelligence. Intel touted investments being made in chip production facilities with an aim of creating a "geographically balanced, secure, resilient supply chain." California-based Intel is seen as a key tool for the United States to reduce its dependence on major global producers, such as Taiwan's TSMC. Earlier this year, Intel announced it would spend $25 billion on a new plant in Israel, with Prime Minister Benjamin Netanyahu calling it the country's single largest foreign investment. The "agreement in principle" would see the semiconductor firm build the facility in the southern city of Kiryat Gat that would open by 2027 and operate at least until 2035, Israel's finance ministry said. Intel has been operating in Israel since the 1970s with development centers and a production site that employs some 12,000 people, the finance ministry said. In 2017, Intel acquired Israel-based Mobileye, which makes technology for automated driving systems in vehicles, for just over $15 billion. Gelsinger said Intel teams have kept operations going despite the war between Israel and Hamas. "Our utmost priority is the safety and welfare of our people in Israel and their families," Gelsinger said. "Despite all of these challenges, they're performing extremely well. I am praying for a swift return to peace." China Gelsinger said Intel was carefully studying updated rules in the United States that tighten curbs on exports of state-of-the-art AI chips to China. "We do believe that we'll have plenty of opportunity in China," Gelsinger said. "We are continuing to deploy our products there broadly, even as we comply and work with (the United States) around the regulations that they're putting in place." The new rules tighten measures from a year ago that banned the sale to China of microchips crucial to manufacturing powerful AI systems. Calls to further close the supply chain grew after the popularity of generative AI platform ChatGPT. When announcing the beefed-up curbs, US Commerce Secretary Gina Raimondo insisted they were intended to close loopholes and prevent China's development of AI for military use. "It's true that AI has the potential for huge societal benefit. But it also can do tremendous and profound harm if it's in the wrong hands and in the wrong militaries," she told US media. The rules will not affect chips used in consumer goods such as laptops, smartphones, and gaming consoles, though some will be subject to export licensing requirements. China has said it is "strongly dissatisfied" and "firmly opposes" the curbs. "The US continues to generalize the concept of national security, abuse export control measures, and implement unilateral bullying," the commerce ministry said in a statement. The post Chip maker Intel beats earnings expectations as it pursues rivals appeared first on Daily Tribune......»»
California governor presses China’s Xi on climate cooperation
California governor Gavin Newsom said he spoke with Chinese President Xi Jinping on climate cooperation at a meeting on Wednesday in Beijing, the latest in a string of visits to China by US politicians. The head of the US economic powerhouse state is on a week-long tour of China, which Newsom has said will focus on climate change. "We are not going to move needles on climate change unless the United States and China collaborate together," the governor, who has long been touted as a future presidential candidate, told reporters after meetings with Xi and Foreign Minister Wang Yi. China and the United States are the two biggest emitters of greenhouse gases. Newsom arrived in the southern semi-autonomous city of Hong Kong on Monday, where he held a talk on climate change. He then traveled to the neighboring city of Shenzhen, which has pioneered the use of renewable energy in public transport, touring an electric bus station. Newsom described his talks on Wednesday with Xi and Wang as "very productive". "Not only the MOUs in the last couple days but the fact that I'll be meeting with five governors tomorrow... engaging and advancing our collective efforts on low carbon green growth," Newsom told reporters, referring to memorandums of understanding signed with Chinese counterparts. Newsom said he also raised the issue of human rights with Wang and spoke with Chinese leaders about China's role in the fentanyl drug addiction crisis in the United States. Washington has imposed sanctions on China-based firms for producing and distributing chemicals used to make fentanyl, though Beijing has insisted the root of the opioid problem lies in the United States. "Governor Newsom's topics of discussion also included human rights violations and anti-democratic efforts in Hong Kong, Tibet, Xinjiang, and Taiwan, as well as David Lin, a California pastor who has been imprisoned in China since 2006," the governor's office said in a statement. String of visits Newsom's visit came amid a flurry of diplomacy between Beijing and Washington as the two sides seek to improve strained ties. Xi met with a group of US senators in Beijing earlier this month, including Senate Majority Leader Chuck Schumer, and Foreign Minister Wang will pay a rare visit to Washington this week. Wang will be returning from a visit in June to Beijing by Secretary of State Antony Blinken, who was the highest-ranking US official to travel to China since 2018. Blinken huddled for 11 hours with the top Chinese leadership including Xi. Diplomats say Wang will be expecting a similar meeting with President Joe Biden, who is in Washington this week. Biden, who last saw Xi last November on the sidelines of G20 talks in Bali, has invited the Chinese leader to travel next month to San Francisco where the United States will host an Asia-Pacific Economic Cooperation summit. Newsom on Wednesday said of Xi's potential visit that he was "very hopeful that he makes it". The post California governor presses China’s Xi on climate cooperation appeared first on Daily Tribune......»»
Biden says Xi meeting in November ‘a possibility’
US President Joe Biden said Friday he may meet Chinese leader Xi Jinping in San Francisco in November as Washington and Beijing push to reset ties, but added that nothing is scheduled yet. The leaders of the rival powers have not met in person or spoken for nearly a year, and tensions have mounted as an increasingly assertive China and the United States vie for global influence. "There has been no such meeting set up, but it is a possibility," Biden told journalists after reports that they were set to meet during the Asia-Pacific Economic Cooperation (APEC) summit in San Francisco. Biden is set to host leaders from across the region on November 16 and 17 in the California city, and speculation has mounted that it could be the venue for a rapprochement. The White House had begun making plans for a meeting on the sidelines of the summit in a bid to stabilize relations, The Washington Post reported, quoting one official as saying it "it's pretty firm." Chinese Foreign Minister Wang Yi is expected to visit Washington at some point ahead of the APEC summit. Beijing however has not confirmed whether Xi will attend the summit or meet with his US counterpart. The White House has also declined to elaborate on a potential meeting with Xi. 'Disappointed' The last time Biden and Xi met was in November 2022 on the sidelines of a summit in Bali. Their talks were surprisingly cordial but relations then froze over again, and there has not even been a phone call since. Biden had said last month he was "disappointed" that Xi was not attending a G20 summit in New Delhi. He added that he was "going to get to see him," although he did not elaborate. Tensions between the United States and an increasingly assertive China have mounted as the world's two largest economies push for diplomatic, military and economic influence. Bilateral ties face a long list of problems, from trade disputes to Taiwan's future to the expansive Chinese presence in the South China Sea. But the United States has been working to restore a more effective working relationship, sending a series of senior officials to China in recent months despite continuing friction. White House National Security Advisor Jake Sullivan and China's Wang met in the Mediterranean island nation of Malta in mid-September in the latest attempt to reach out. The APEC forum will be a key test of whether their efforts are working, as the Asia-Pacific region is one of the main theaters where Beijing and Washington are going head-to-head. Biden has also been pushing to show that international groupings like the G20 and APEC can still deliver on problems including the economy and climate -- even when China is not involved. The post Biden says Xi meeting in November ‘a possibility’ appeared first on Daily Tribune......»»
China opposes sanctions over fentanyl crisis
Beijing said on Wednesday it firmly opposed sanctions placed by the United States on a China-based network for producing and distributing chemicals believed to fuel the fentanyl crisis. The US administration of President Joe Biden had on Tuesday announced sanctions against 25 individuals and entities based in China, alongside three other parties in Canada. The US Justice Department also announced eight indictments charging China-based chemical manufacturing firms and staff, with Attorney General Merrick Garland saying that the global supply chain of fentanyl “often starts with chemical companies in China.” “We firmly oppose the United States’ sanction and prosecution against Chinese entities and individuals, and the severe infringement of the lawful rights and interests of the relevant enterprises and persons,” Beijing’s foreign ministry told Agence France-Presse. “The fentanyl crisis in the United States is rooted in the country itself,” it said, adding that Beijing has “lodged solemn representations to the United States.” Biden’s administration has made the fight against fentanyl a priority, with the synthetic opioid blamed for tens of thousands of deaths in recent years. “We know that this global fentanyl supply chain, which ends with the deaths of Americans, often starts with chemical companies in China,” Attorney General Merrick Garland told a press briefing. He said it was “critical” that Beijing stops the “unchecked flow” of precursor chemicals coming from the country, adding that US officials will also raise the manufacturing and trafficking of fentanyl with their Mexican counterparts. Tuesday’s actions are aimed at exposing and disrupting a network “responsible for manufacturing and distributing illicit drugs,” said Deputy Treasury Secretary Wally Adeyemo said. The post China opposes sanctions over fentanyl crisis appeared first on Daily Tribune......»»
No torpedoing submarine plan
Mere days had passed after the Department of National Defense signaled a reboot of the Armed Forces of the Philippines’ Modernization Program when France and South Korea came knocking on the door to offer to develop our submarine force. For an archipelagic country like the Philippines, the versatility and stealthiness of submarines make them ideal for a variety of missions, including intelligence gathering, deterrence, and actual combat. They can, likewise, protect valuable maritime assets and patrol sea lanes without being seen. If the Philippines’ plan to acquire submarines comes to fruition, it will send a strong message to the international community that it is committed to defending its sovereignty and maritime rights, which are currently being violated with impunity by China in the West Philippine Sea. Last 14 September, French Ambassador-designate Marie Fontanel-Lassalle paid Defense Secretary Gilberto C. Teodoro Jr. an introductory call to reiterate her country’s support for a credible defensive posture by the Philippines in the Indo-Pacific region. According to reports on the meeting between the envoy and Teodoro, an offer by French defense manufacturer Naval Group to fill the Philippines’ shopping list for two to three submarines had been refreshed, including building a base for the modest fleet in Subic Bay. The Philippine Navy had previously announced that Subic Bay would be its preferred location for the submarines that the Philippines has been planning to acquire since the Ramos presidency, a push that was put on hold by the Asian financial crisis in 1997. As early as 2019, before the Covid-19 pandemic put everything on hold, Filipino naval and defense officials had reviewed and found worthy of consideration the Scorpene diesel-electric submarine manufactured by France’s Naval Group. France, however, would have to fight it out with other bidders like Spain and South Korea, with the latter stepping up its push to supply the vessels that operate primarily under water. Last week, executives from South Korean shipbuilder Hanwha Ocean were in Manila to make a formal pitch for their newest Jang Bogo-III submarine. The Korean offer, like France’s, was a mere update, at the center of which is a 77-meter, 2,800-ton diesel-electric submarine with a beam of 9.7 meters. It boasts the latest propulsion system and lithium-ion battery technology that would allow it to operate longer. Of course, acquiring submarines is not a cheap proposition. However, it is a necessary investment for the Philippines’ national security. Experts have maintained that, in the long run, it will be cheaper to build a submarine force than to maintain a large surface fleet. As Teodoro moves for the “re-horizoning” of the AFP Modernization Program, the Marcos administration may want to start from scratch any negotiations for military equipment that had been made during the two previous administrations. That is as it should be as the Philippines must choose the best updated and re-priced proposals from several countries. As the submarine acquisition will demand a huge capital outlay, it is a must that the country shops wisely, not necessarily for the cheapest, but for what would fill its strategic and defensive needs. The acquisition process should be fully transparent and fair as it would involve taxpayer money, if not more foreign loans. The acquisition of submarines — just like the purchase of planes, ships and tanks — by the Philippines would also necessitate investments in training and infrastructure to support the new force. With increasing challenges from China in the West Philippine Sea, the Philippines is being compelled by exigencies to put into motion Horizon 3 of the AFP Modernization Program to bolster its external defense capabilities. There would be those who would oppose more military expenditures, but the Philippines, located as it is in one of the most problematic areas of the world, must be wise to prepare for its security. With the jets and surface ships that the country had procured under Horizons 1 and 2, having a few submarines is the logical next stop for a country of over 7,000 islands surrounded by water. Any decision on which submarines to acquire should be based on a thorough assessment of each proposal’s technical capabilities, cost effectiveness, and the long-term benefits they offer to the Philippine Navy. Transparency in the acquisition process is paramount to ensure that the chosen submarines meet the country’s defense needs while adhering to its budgetary constraints. The post No torpedoing submarine plan appeared first on Daily Tribune......»»
MVP eyes MPTC float by next year
After the voluntary delisting of his infrastructure investment firm Metro Pacific Investments Corp. or MPIC from the local bourse, businessman Manuel V. Pangilinan is now planning to offer the shares of his tollways venture Metro Pacific Tollways Corp. or MPTC to the public by next year. “After the delisting, we will list our tollways... next year. The Maynilad has got to list by 2026. We will list our major subsidiaries,” Pangilinan said in an interview with reporters on the sidelines of the Mining Philippines 2023 International Conference and Exhibition on Wednesday. MPTC is the operator of the North Luzon Expressway, Subic-Clark-Tarlac Expressway, Cavite-Laguna Expressway, Manila-Cavite Expressway, NLEX Connector, and Cebu-Cordova Link Expressway. On the other hand, Maynilad, MPIC’s joint venture with DMCI Holdings, and Marubeni Corp., serves the west zone of the Greater Metro Manila area, covering 17 cities and municipalities. Tender offer closed Relatedly, in a separate disclosure to the stock exchange on Wednesday, MPIC confirmed that the tender offer for its shares is now closed. The company report stated that the total of tendered shares, excluded shares, and other non-public shares is equivalent to 97.22 percent of MPIC’s total issued and outstanding listed shares and has exceeded the threshold required to complete the voluntary delisting. Once tendered shares are accepted and crossed, MPIC’s public float will fall to 2.78 percent. Its total tendered shares, excluded shares, and other non-public shares, on the other hand, will be above the voluntary delisting threshold of at least 95 percent. Thus, bidders can now expect MPIC’s delisting around October. The Cross Date is scheduled for 26 September, while the Settlement Date is scheduled for 28 September. Commenting on these MPIC developments, Pangilinan said: “It’s amazing that the acceptances have been more than 99 percent. What are the implicit messages of that, the times have moved on. My theory is that conglomerates are passe.” Pangilinan noted that companies are now focusing on their ventures that are easier and simpler to analyze with only one product. “Filipinos have a natural aversion to something big, that is why our stock exchange is too small. And because it’s too small it impinges on the issue of liquidity. Investors, even foreign investors, want to go in and be able to get out whenever they want to,” he explained. MPIC currently owns 47.5 percent of Manila Meralco, 99.9 percent of Metro Pacific Tollways Corp., 52.8 percent of Maynilad Water Services Inc., 20 percent of Metro Pacific Health Corp., and other assets. It is the Philippine arm of Hong Kong-based investment holding firm First Pacific Company Ltd. It has interests in tollways, water distribution and sewerage services, railways, hospitals, power generation, and distribution. The post MVP eyes MPTC float by next year appeared first on Daily Tribune......»»
Sovereign shame
The government should recognize the possibility that Chinese workers in the country are committing espionage amid the escalating territorial friction in the West Philippine Sea. Defense Secretary Gilbert Teodoro raised the alarm, saying employees of mainly Chinese state firms may be engaged in potential “covert economic and information activities,” including propaganda operations, to sway public opinion in favor of the mainland. Among the workers on the watchlist are “the ones hired by Beijing’s state-run enterprises involved in public infrastructure projects,” according to Teodoro. The Department of National Defense said it is looking into clandestine dealings “happening in the background.” “It’s the activities that we cannot see… that’s what alarms us,” the defense chief said. “The best way to weaken a country, rather than by an overt warlike function or disruption of [its] facilities, is really to take control of [its] internal economy, internal processes, and the like,” Teodoro pointed out. The records of Chinese migrants in the country are inadequate based on previous Senate hearings. No government agency was able to provide the Senate, for instance, with an accurate number of illegal Chinese workers, indicating that they are not being monitored. Labor agencies have also failed to keep track of how many foreign workers are in jobs that, by mandate of the Constitution, should be for Filipinos only. Under the law, foreigners are only allowed to work in jobs that require highly specialized skills and where no Filipinos are deemed competent to do them. During the Senate probe, it was also discovered that as many as 119,000 Chinese nationals who came to the country as tourists are now residents and have jobs in violation of labor regulations. Chinese tourists, through some “gainful” means, were able to obtain special work permits from the Bureau of Immigration. They now work in very diverse areas such as Metro Manila, Clark, Subic, Cagayan and Cagayan de Oro. In one of the inquiries, a Department of Labor and Employment official explained that the special permits were issued without the need for an Alien Employment Permit, or AEP, because the nature of the employment was temporary, lasting from three to six months. The loose process, thus, has allowed foreign workers to enter the country practically unbridled. Senators questioned the discrepancy between the AEPs issued and the number of Chinese workers in the country. Independent sources said that as many as 200,000 to 400,000 Chinese workers are in the country. Four different agencies issue different permits that make the situation worse. The biggest insult by China is that its propaganda work against the Philippines and other opponents in the territorial conflicts is done in this country. Facebook recently removed two networks of fake accounts that were spreading government propaganda, one originating in China and the other in the Philippines. Taken down were 155 Facebook accounts, 11 pages, nine groups and seven Instagram accounts traced to China, and 57 accounts, 31 pages and 20 Instagram accounts based in the Philippines. Such operations breach Facebook’s rules against “coordinated inauthentic behavior on behalf of a foreign or government entity.” The Chinese network used faces created through an AI technique known as GANs (Generative Adversarial Networks). Facebook was able to trace the origins of the accounts because of their visual signatures. “This form of AI is readily available online, and its use (or abuse) by covert operations has exploded in the last year,” according to a report on the social media platform. Identified were a dozen GAN-generated images from the Chinese propaganda operation. Teodoro, who has access to a wealth of information, in revealing the supposed operations being conducted by the Chinese in the country’s backyard, virtually confirmed the problem has reached alarming proportions. It would be easy for the government to keep track of foreign workers if only the appropriate agencies would resist the seduction of human smuggling. In accepting bribes to let the aliens skirt the law, these officials and functionaries have placed our national security at risk. The post Sovereign shame appeared first on Daily Tribune......»»
Coral harvesting in WPS might be a prelude to reclamation—Tolentino
China is possibly preparing to reclaim more areas in the West Philippine Sea, particularly the Rozul Reef or Iroquois Reef, Senator Francis Tolentino warned Monday. In a television interview, Tolentino, who chairs the Senate Special Committee on Maritime and Admiralty Zones, said the harvesting of corals along Rozul Reef could be part of the possible reclamation in the area. “There might be a different plan for that – not only the harvesting of corals and the destruction of it. Because killing the corals is a prelude to one thing: when you kill it, you can now do reclamation,” he said. Over the weekend, the Armed Forces of the Philippines Western Command reported that there was massive coral harvesting in Rozul Reef. The report of missing and destroyed corals came following the sightings of Chinese maritime militia vessels in the area. The report was confirmed by the Philippine Coast Guard, which found similar observations in the seabed of Escoda Reef (Sabina Shoal), also in the West Philippine Sea. According to Tolentino, China's actions in the Philippines' exclusive economic zone violate the United Nations Convention on the Law of the Sea. “If we are to file for a claim for damages, it should be in the tribunal recognized by UNCLOS and the United Nations,” he said. He noted that the Philippine government may file cases against China before the International Tribunal for the Law of the Sea, the International Court of Justice, or the Permanent Court of Arbitration. Senate investigation In a separate interview, Senator Risa Hontiveros said the recent developments in the West Philippine Sea called for a Senate inquiry. “It’s ripe for a Senate resolution and investigation because it would not be the first time that China caused environmental degradation in our sea,” Hontiveros said. “They also dredged our seafloor to invent their artificial islands, militarize them, within the West Philippine Sea and our exclusive economic zone to claim it as their territory,” she added. The lawmaker expressed gratitude to the Armed Forces of the Philippines for its discovery of the damaged seabed of Rozul and Escoda Reefs. “Thanks to the Armed Forces of the Philippines for revealing it, I think it deserves an investigation. We should add it to the long list of China’s debt to our country,” she said. The Daily Tribune has sought comments from the Department of Foreign Affairs about the developments in the West Philippine Sea, but it has yet to respond as of press time. The post Coral harvesting in WPS might be a prelude to reclamation—Tolentino appeared first on Daily Tribune......»»
500 EDCA deals in 2024 pipeline
The United States has committed to more than 500 bilateral military engagements with the Philippines next year, which would primarily feature the stepping up of war games and joint sea patrols. An Armed Forces of the Philippines official described the engagements as encompassing exercises and high-level exchanges between the allied nations on security cooperation and strategic vision, including maritime security, information sharing, and capacity and capability development, among others. The commitments were made during last week’s annual Mutual Defense Board-Security Engagement Board meeting, said the AFP official, who requested anonymity. Meanwhile, AFP Public Affairs chief, Lt. Col. Enrico Gil Ileto, said highlights of the activities will include an increased “tempo” in the joint exercises. At the same time, projects under the Enhanced Development Cooperation Agreement will be scaled up. He said engagements with other key international partners will also be part of the new set-up. During the meeting, AFP Chief of Staff, Gen. Romeo Brawner Jr., and US Indo-Pacific Command Chief Admiral John Aquilino reaffirmed the “steadfast commitment of the Philippines and the United States to safeguard their respective nations and the Indo-Pacific region.” “The meeting was the culminating activity of the planning cycle that assessed previous activities and set out over 500 bilateral engagements for 2024,” Ileto said. Increasing the American role in the maritime conflict with China is expected to be matched by the latter through increased aggressiveness in staking its claim in the West Philippine Sea. Swarming by vessels resumes The AFP Western Command on Saturday expressed alarm over the heightened presence of Chinese maritime militia vessels and the massive coral harvesting at Rozul, or Iroquois, Reef, located within the Philippines’ exclusive economic zone and continental shelf. In a weekly news forum in Quezon City, Wescom commander, Vice Admiral Albert Carlos, reported the “resurgence” of swarming incidents in the West Philippine Sea, with about 40 Chinese fishing vessels spotted as of 15 September at Rozul Reef, which is located south of Recto Bank. Carlos said the latest figure is higher than the 33 vessels spotted on 24 August and the 24 tracked on 7 September. Swarming was also observed at Escoda (Sabina) Shoal, where five Chinese fishing vessels were spotted, and Baragatan (Nares) Bank, with two boats, according to a Wescom news release on 14 September. “But the good news is we also have our presence there,” Carlos said, referring to vessels of the Philippine Navy and the Bureau of Fisheries and Aquatic Resources. “So, we are addressing the issue of this swarming,” he added. Harmful harvesting Carlos noted that in July, the Philippine Navy deployed divers to conduct an “underwater survey” of the swarmed area and found “there were no more corals” at Rozul Reef. The military is coordinating with scientists and experts to assess the area, he said, adding that it specifically wants to verify the divers’ assessment that massive harvesting of corals happened just recently. “We saw that there were no more corals. The corals were damaged, and there was debris,” he said. “We are not making any conclusions at this time. It’s a work in progress, but we just want to report coral harvesting in the area where (the Chinese were) seen loitering and swarming.” Keeping the peace Carlos said government troops want to “keep the peace and avoid miscalculations” in the WPS despite the recent incidents. He, however, guaranteed a heightened military presence in the Philippines’ waters. “The presence (of Chinese vessels) is already alarming because we have the sovereign rights in our exclusive economic zone. Now, coral harvesting is still unverified. We are not saying that they are harvesting our corals. We suspect somebody is harvesting our corals, which means they are violating our sovereign rights. We have the exclusive right to exploit resources in the West Philippine Sea,” Carlos said. “For the Western Command, that is alarming, because it might appear that we are remiss in our duty to protect our territory, as well as the riches of our exclusive economic zone. So we are doubling our efforts on that. We are going to address that issue by increasing our presence there,” he said. Joint patrols assessed Carlos said the government is “carefully” studying offers by other countries to conduct joint patrols with Philippine forces. For now, the military is carrying out unilateral maritime patrols in the WPS, he said, adding that these are being “jointly conducted with the Philippine Coast Guard and the BFAR, not with any foreign country.” “We are in engagement with whoever offers to help us, whoever shares our desire, our objective to establish a rules-based international order. We are studying it carefully. All the offers are on the table,” he said. More EDCA projects Ileto said Brawner and Aquilino also agreed to hasten the completion of the EDCA projects. There were 32 projects approved. The two officials are eyeing 63 more EDCA projects. “More importantly, it reaffirmed the two nations’ commitment to the PH-US alliance as espoused in the 1951 Mutual Defense Treaty,” he said. The Philippines and the US military officials also agreed to jointly push for a free and open Indo-Pacific region “against a backdrop of a rules-based international order,” Ileto said. 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Alibaba announces surprise departure of ex-CEO
Chinese e-commerce giant Alibaba has announced the surprise departure of former CEO Daniel Zhang, who had been set Monday to take charge of a key subsidiary as the firm undergoes a major restructuring. Hangzhou-based Alibaba is one of China's most prominent technology firms, with business operations spanning cloud computing, e-commerce, logistics, media and entertainment, and artificial intelligence. After years of turbulence in the Chinese tech sector, Alibaba in March announced the biggest restructuring in its history, dividing itself into six entities, with the goal of listing them on the stock exchange separately. CEO Daniel Zhang was due to take charge of the firm's new cloud computing branch, now a separate entity, on Monday. But two months after announcing his appointment, Alibaba said its ex-boss was no longer with the company. "The board of our Company expresses its deepest appreciation to Mr. Zhang for his contributions to Alibaba Group over the past 16 years," the company said in a statement to the Hong Kong Stock Exchange, where it is listed, late on Sunday. It gave no reason for his departure. Plans for a spin-off cloud computing firm would go ahead, Alibaba said, "under a separate management team to be appointed". The company announced in June that Zhang would be replaced by Joseph Tsai as chairman and Eddie Wu as CEO. The executive played a vital role in the company's success in the past decade, spearheading the now hugely popular Singles' Day shopping festival since its first edition in 2009. Shares in the firm sank nearly 3.5 percent Monday -- the first working day of its new reorganization into six distinct branches. In addition to e-commerce and cloud computing, Alibaba's reach stretches into everything from logistics to media, entertainment and artificial intelligence. But its vast size brought it into the crosshairs of Chinese regulators as Beijing sought to crack down on the tech sector. In 2020, Alibaba became the country's first tech giant to bear the brunt of increased oversight, when authorities called off what would have become one of the most valuable public listings in history -- valued at $34 billion -- for its former subsidiary Ant Group. Ant Group is the owner of Alipay, a mobile payment application widely used in China. One month after officials hit the brakes on its IPO, Alibaba was investigated for alleged anti-competitive practices, then issued a $2.8 billion fine. And in July authorities fined Ant Group nearly $1 billion for breaching banking regulations. The post Alibaba announces surprise departure of ex-CEO appeared first on Daily Tribune......»»
Meta fights sprawling Chinese ‘Spamouflage’ operation
Meta on Tuesday said it purged thousands of Facebook accounts that were part of a widespread online Chinese spam operation trying to covertly boost China and criticize the West. The campaign, which became known as "Spamouflage", was active across more than 50 platforms and forums including Facebook, Instagram, TikTok, YouTube and X, formerly known as Twitter, according to a Meta threat report. "We assess that it's the largest, though unsuccessful, and most prolific covert influence operation that we know of in the world today," said Meta Global Threat Intelligence Lead Ben Nimmo. "And we've been able to link Spamouflage to individuals associated with Chinese law enforcement." More that 7,700 Facebook accounts along with 15 Instagram accounts were jettisoned in what Meta described as the biggest ever single takedown action at the tech giant's platforms. "For the first time we've been able to tie these many clusters together to confirm that they all go to one operation," Nimmo said. The network typically posted praise for China and its Xinjiang province and criticisms of the United States, Western foreign policies and critics of the Chinese government including journalists and researchers, the Meta report says. The operation originated in China and its targets included Taiwan, the United States, Australia, Britain, Japan and global Chinese-speaking audiences. Facebook or Instagram accounts or pages identified as part of the "large and prolific covert influence operation" were taken down for violating Meta rules against coordinated deceptive behavior on its platforms. Meta's team said the network seemed to garner scant engagement, with viewer comments tending to point out bogus claims. Clusters of fake accounts were run from various parts of China, with the cadence of activity strongly suggesting groups working from an office with daily job schedules, according to Meta. 'Doppelganger' Some tactics used in China were similar to those of a Russian online deception network exposed in 2019, which suggested the operations might be learning from one another, according to Nimmo. Meta's threat report also provided analysis of the Russian influence campaign called Doppelganger, which was first disrupted by the security team a year ago. The core of the operation was to mimic websites of mainstream news outlets in Europe and post bogus stories about Russia's war on Ukraine, then try to spread them online, said Meta head of security policy Nathaniel Gleicher. Companies involved in the campaign were recently sanctioned by the European Union. Meta said Germany, France and Ukraine remained the most targeted countries overall, but that the operation had added the United States and Israel to its list of targets. This was done by spoofing the domains of major news outlets, including the Washington Post and Fox News. Gleicher described Doppelganger, which is intended to weaken support of Ukraine, as the largest and most aggressively persistent influence operation from Russia that Meta has seen since 2017. The post Meta fights sprawling Chinese ‘Spamouflage’ operation appeared first on Daily Tribune......»»
Study shows rising RE project interest
The local renewable energy sector is expected to further grow as more high-value investors have signified their interest to finance the sector’s development. According to a new report by the Institute for Energy Economics and Financial Analysis or IEEFA titled “Business Model Innovations Drive the Philippines Energy Transition,” the notably aggressive plans of both the government and the private sector caught foreign investors’ attention. “In terms of how investors view asset values, pure play renewables companies command a valuation premium over utilities having lower levels of renewables in their mix,” Ramnath Iyer, report author and IEEFA’s Climate and Renewable Energy Finance Lead, Asia, said. “Valuation premiums for pure-play renewables companies — as seen in their higher price-to-book ratios, the stronger market valuation of installed capacity, and stock performance over the past five years — suggest that this focus on renewables as a concentrated strategy has paid off.” The report presented the Philippines as home to innovative models in the renewable energy space. The study also highlighted the growing list of the country’s listed renewables developers and operators, including ACEN Corp., Citicore Energy REIT Corp. or CREIT, and Solar Philippines. The IEEFA study particularly noted that investors are willing to reward firms that plan to grow in the field of renewables and can execute their plans, the report finds. Each MW counts For instance, investors value each megawatt or MW of installed capacity at ACEN at P137 million based on the market capitalization and megawatts in operation as of 4 August, and CREIT at P102 million per MW. Meanwhile, non-pure plays First Gen Corporation and Aboitiz Power are valued at only P26.7 million per MW and P73.7 million per MW, respectively. As such, it was notable that both Solar Philippines and ACEN have received significantly higher investor support compared to First Gen and Aboitiz Power, which have underperformed even broader equity benchmarks. Despite this, First Gen had shown a willingness to explore innovative options. To raise capital for growth in renewables, it has a successful track record of partnering with international investors and infrastructure players. Meanwhile, Aboitiz Power remains more heavily geared to coal in the medium term, which makes up more than 60 percent of its mix, and also has a debt-to-equity ratio of 1.1 (net) and 1.5 (gross). “Laggards, who stick with fossil fuel assets as their main line of business, will likely continue to see ebbing interest among investors and financial markets unless they can change and adopt some of the more successful strategies,” Iyers noted. Based on the targets set by the DoE, the share of renewable energy in the country’s energy mix should increase to 35 percent by 2035 and 50 percent by 2040. However, it is still notable that despite an aggressive stance on clean energy utilization, the Philippines still heavily rely on coal. Coal, which is cheaper compared to other forms of power but more detrimental to the environment, is still the highest contributor to the power generation mix at nearly 60 percent. Renewable energy only takes a little over 20 percent of the mix as of end-2022. The post Study shows rising RE project interest appeared first on Daily Tribune......»»
China keeps ban on group tours to Canada
China’s Covid-era ban on group tours to a dozen countries was lifted last week but travel agents cannot arrange such visits to Canada. The Chinese embassy in Ottawa said Wednesday the exclusion of Canada was due to its anti-Beijing rattling. “The Canadian side has repeatedly hyped up the so-called ‘Chinese interference,’” according to a statement from the embassy. “Rampant and discriminatory anti-Asian acts and words are rising significantly in Canada” and “the Chinese government attaches great importance to protecting the safety and legitimate rights of overseas Chinese citizens and wishes they can travel in a safe and friendly environment,” the embassy added. China-Canada relations hit a new low this year amid accusations of Chinese meddling in Canadian elections and the attempted intimidation of lawmakers that led to the expulsion of a Chinese diplomat in May. Beijing responded by sending home a Canadian diplomat from Canada’s consulate in Shanghai. Janice Thomson, the head of tourism at Niagara Falls — the top tourism destination in Canada — said China’s decision to leave Canada off its approved destinations list was “disappointing” but expects the country to be added to the list in the future. In 2019, Chinese tourists spent a collective US$255 billion on international travel. In 2018, nearly 700,000 Chinese visitors came to Canada, spending an average of Can$2,600 (US$1,922) per visitor, or a total of Can$2 billion — out of Can$22 billion spent collectively by all foreign travelers, according to a report by the Canada China Business Council. That same year, tit-for-tat arrests of a top Huawei executive in Vancouver on a United States warrant and two Canadians living in China, accused of espionage, dealt a serious blow to bilateral relations. Ottawa accused Beijing of engaging in “hostage diplomacy,” before a deal was eventually reached with US prosecutors that saw all three people released in 2021. WITH AFP The post China keeps ban on group tours to Canada appeared first on Daily Tribune......»»
China snubs Canada as restrictions on tourism travel lifted
China — a major source of outbound tourists — has left Canada off a list of countries now approved for travel by tour groups, its embassy in Ottawa said Wednesday, due to anti-Beijing rattling by Ottawa. Last week Beijing lifted a Covid-era ban on group tours to dozens of countries including the United States, Germany, Japan, and Australia, but not Canada. Travel agents turn to the list of approved destinations when promoting and arranging foreign vacations for Chinese nationals. There are currently 138 countries on the list. The Chinese Embassy in Ottawa said in a statement that the reason behind the snub was "the Canadian side has repeatedly hyped up the so-called 'Chinese interference.'" It said "rampant and discriminatory anti-Asian acts and words are rising significantly in Canada" and "the Chinese government attaches great importance to protecting the safety and legitimate rights of overseas Chinese citizens and wishes they can travel in a safe and friendly environment." The United Nations tourism agency (UNWTO) says China grew to be the biggest tourism source market in the world prior to the pandemic. In 2019, Chinese tourists spent a collective US$255 billion on international travel. Group tours from China to Canada were first approved in 2010. In 2018, nearly 700,000 Chinese visitors came to Canada, spending an average of Can$2,600 (US$1,922) per visitor, or a total of Can$2 billion -- out of Can$22 billion spent collectively by all foreign travelers, according to a report by the Canada China Business Council. That same year, tit-for-tat arrests of a top Huawei executive in Vancouver on a US warrant and two Canadians living in China, accused of espionage, dealt a serious blow to bilateral relations. Ottawa accused Beijing of engaging in "hostage diplomacy," before a deal was eventually reached with US prosecutors that saw all three people released in 2021. China-Canada relations hit a new low this year amid accusations of Chinese meddling in Canadian elections and the attempted intimidation of MPs that led to the expulsion of a Chinese diplomat in May. Beijing responded by sending home a Canadian diplomat from Canada's consulate in Shanghai. Canadian government officials did not immediately reply to a request for comment. Janice Thomson, the head of tourism at Niagara Falls -- the top tourism destination in Canada -- said China's decision to leave Canada off its approved destinations list was "disappointing." She expressed hope that Canada would make it onto the list in a future round of country additions. The post China snubs Canada as restrictions on tourism travel lifted appeared first on Daily Tribune......»»
Country Garden: China’s under-pressure property giant
Concerns are mounting in China around Country Garden, a major property developer whose colossal debt raises fear of a bankruptcy that could spell wider economic turbulence, two years after the unravelling of its competitor Evergrande. Country Garden shares plunged by more than 18 percent in Hong Kong on Monday after it missed bond payments and warned of multibillion-dollar losses. Its billionaire boss Yang Huiyan has said the firm is "facing the greatest difficulties since our establishment". Here's what you need to know about Country Garden: Family business Country Garden is run by Yang Huiyan, who until recently was one of the richest women in China and Asia. Yang, now in her early forties, became a billionaire when she inherited shares from her father in 2005, two decades after he founded the company. But her fortune has dwindled since 2021 as China's real estate crisis dramatically weakened the sector. Yang, who lost nearly $29 billion in two years according to a Bloomberg ranking of billionaires, has an estimated wealth of $5.3 billion. To support Country Garden, she and her family have chipped in the equivalent of $4.9 billion in personal funds, according to the group. Real estate heavyweight The top seller of real estate in China last year, Country Garden was named in Forbes' list of the 500 largest companies in the world. Based in the southern Chinese city of Foshan, the group employed nearly 70,000 "full-time" staff members at the end of 2022, according to the most recent figures from the company, which has long been deemed financially solid. It also has operations abroad, including a gigantic real estate project in Malaysia involving artificial islands. Under pressure But recent sluggishness in the Chinese real estate market has caught up with the company. According to media reports, Country Garden was unable to make two bond payments on 6 August. It has a 30-day grace period, but if it does not pay within that time it risks default. Adding to the pressure, 31 billion yuan ($4.27 billion) in the firm's bonds are set to mature in 2024, according to rating agency Moody's. Another Evergrande? Like its competitor Evergrande, which owes more than $300 billion, any collapse of Country Garden would have damaging repercussions on the Chinese financial system and economy. It is due to publish its half-year results by the end of the month, and says it expects a net loss of 45 to 55 billion yuan (about $6.2 billion to $7.6 billion). And its situation is particularly precarious because around 60 percent of its projects are located in small Chinese cities, where property prices have fallen the most and where customers have weaker purchasing power. Country Garden announced over the weekend it would suspend trading of onshore bonds from Monday, a decision likely to cause concern in the markets as the company said that its debt was estimated at some 1.15 trillion yuan ($159 billion) at the end of 2022. Additional liabilities have brought other estimations of its overall debt as high as 1.4 trillion yuan ($193 billion), according to Bloomberg. Robotics In addition to its core focus on real estate, Country Garden has been developing robots for the catering industry since 2019. The firm has produced designs for different types of mechanized food processors, and last year it opened an expansive, fully automated restaurant in Foshan. The restaurant, which accommodates up to 600 people, is staffed by 20 robots that can prepare three types of dishes including Chinese hot pot, the firm said at the time. The post Country Garden: China’s under-pressure property giant appeared first on Daily Tribune......»»