Wednesday, May 20, 2020
Why China and India shouldn't let coronavirus justify walking back climate action
WHO reports biggest single-day jump in global cases

The USS Theodore Roosevelt has returned to sea, after being docked in Guam for weeks due to a coronavirus outbreak onboard in March.
The US Navy announced the aircraft carrier left Guam today and entered the Philippine Sea to conduct carrier qualifications.
Onboard outbreak: More than 1,000 of the ship’s nearly 4,900-member crew tested positive for Covid-19. After evacuating some 4,000 sailors from the ship to Guam, the US Navy had been returning sailors following a period of quarantine and isolation in the hopes of getting the aircraft carrier to sea as soon as possible.
“After cleaning the entire ship from bow to stern, the appropriate number of crewmembers to operate the ship underway have returned from quarantine after passing rigorous return-to-work criteria,” the Navy said in a news release.
The release added that they were bringing fewer sailors onboard, which would help increase social distancing.
New measures: All sailors onboard have taken required lessons on virus prevention and mitigation, and practiced simulation emergency procedures while executing measures like wearing masks, said the release.
Other virus prevention measures include adjusted meal hours, sanitizing spaces, minimizing in-person meetings, and a simulated medevac.
"It was an unprecedented challenge to get to this point and I'm proud of the Rough Rider Team's tenacity and resiliency in the face of uncertainty," said Capt. Carlos Sardiello, the ship's commanding officer.
Boy chosen as the Panchen Lama disappeared in 1995. China says he's now a college grad with a job



CNN's Steven Jiang contributed to this report.
Brazil hits record high for new coronavirus cases
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CNN's Shasta Darlington reported from Sao Paolo, Tara John reported from London, and Flora Charner reported from Atlanta. CNN's Tatiana Arias contributed to this report.
Huawei says its operating system can rival Google, Apple — but experts say it might be a struggle

A guest holds her phone showing a picture taken during Huawei's press conference unveiling its new HarmonyOS operating system in Dongguan, Guangdong province on August 9, 2019.
Fred Dufour | AFP| Getty Images
A top Huawei executive said the Chinese company's mobile operating system is able to compete with Google and Apple — but analysts told CNBC that might be tough to achieve, especially in markets outside China where U.S. technology giants have a strong foothold.
"Huawei is in a position to deliver an ecosystem that is on par with Google's and Apple's ecosystems," Huawei's vice president of consumer cloud services in its consumer business, Eric Tan, said on Tuesday. "We have the confidence to be one of the top ecosystem developers in the world."
He was speaking about the company's own operating system, called the HarmonyOS, which was launched in August.
It comes as the Chinese technology giant attempts to forge a path ahead without American technology.
Huawei's smartphones have relied on Google's Android operating system for a number of years. But in 2019, the Chinese firm was put on a U.S. blacklist which restricted its access to American technology and meant it was no longer able to use licensed Android software on its handsets.
In response, Huawei launched its own operating system that same year.
On Tuesday, Huawei executives spoke about HarmonyOS, playing up its ability to be an operating system that can work across a number of devices rather than just smartphones alone, which could appeal to developers looking to make apps that work on different hardware.
The management also talked about the Huawei Mobile Services (HMS), a collection of various Huawei apps from maps to payments to its app store.
Huawei's claim about being able to deliver an ecosystem "on par" with Google's and Apple's is a big one, considering the company only launched its operating system less than a year ago.
But Tan backed up his comments by revealing that by the end of March, Huawei had 1.4 million developers on board — up 115% from the end of the first quarter of 2019.
In China, where Huawei is the biggest smartphone maker by market share, not having access to Google's Android is not a huge problem. That's because Google services, such as search, are blocked in the country and users can't really use them anyway. That also means Huawei's HarmonyOS has a chance of being successful in the domestic market.
So overall without marquee developers on board its going to be a tough sell.
Neil Shah
Counterpoint Research
However, in international markets where apps are built on Google's services — integrating maps or payments, for example — Huawei could find its HarmonyOS a tough sell.
"It won't be easy for Huawei to build up a library of premier applications outside of China, as many of them rely on Google for things like digital rights management, location, payment, and notification services," Bryan Ma, vice president of devices research at IDC, told CNBC.
Huawei was not immediately available for comment when contacted by CNBC.
"Developers oftentimes have to be selective on which projects they spend their time on, and a key factor in that decision-making is whether there is enough of a critical mass in the user base to justify the time and effort spent in porting applications over," Ma said.
Huawei's HMS is similar to Google Mobile Services and offers developers kits that can be used to integrate things like location services into apps. The Chinese firm said there are 60,000 apps using so-called HMS Core services, but it did not break down what countries or regions those are in.
Neil Shah, research director at Counterpoint Research, called the number of apps "limited" and said Huawei is still missing major apps.
"Outside of China, it will be struggle as most of the marquee applications come from big profile U.S. developers — Netflix, Facebook properties (Instagram, WhatsApp), Google apps, etc — which are obviously banned to collaborate with Huawei," Shah said.
"So overall, without marquee developers on board, it's going to be a tough sell."
Indeed, a number of major apps that are important in international markets are not on Huawei's app store, called the AppGallery. Users cannot download any Google apps or Facebook-owned services. Netflix or Spotify are not available either.
However, it does have the Amazon Shopping app, as well as video-sharing app TikTok, which is owned by Chinese firm ByteDance.
Huawei has expressed its desire to get Google apps onto the AppGallery.
"We hope Google services can be available through our AppGallery, just like how Google services are available through Apple's App Store," Eric Xu, rotating chairman at Huawei said in an interview with CNBC in March.
But this will be a challenge, according to Ma.
"Legal considerations aside, I find it highly unlikely that Google would publish its own apps into the AppGallery, as they have the same hooks into its services as third parties do. And if anything, they want to drive usage of their services," he said.
Tuesday, May 19, 2020
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CNN's Chris Cuomo argues that President Trump doesn't like coronavirus testing, tracing or masks because they may make people "less pumped to reopen recklessly."Why Apple is unlikely to face backlash from China over new U.S. rule on Huawei

People wearing face masks walk past an Apple store in Beijing on March 17, 2020 in Beijing, China.
Fred Lee | Getty Images
Apple is unlikely to face backlash from the Chinese government over a new U.S. rule designed to target Huawei, experts told CNBC, despite threats from state-backed media.
The iPhone maker has a good relationship with Beijing and, indirectly via its manufacturing partners, employs hundreds of thousands of workers in the world's second-largest economy, factors that could dissuade China from taking action against the company.
On Friday, the U.S. moved to cut off chip supplies to Huawei with a rule that requires foreign firms using American software or equipment for manufacturing chips to sell to the Chinese giant, to get a license. That will hit Taiwan's TSMC, Huawei's main supplier of chips, and it could deal a big blow to the networking equipment maker, experts told CNBC.
In response, China is ready to take "countermeasures," according to the state-backed Global Times citing a "source close to the Chinese government."
The publication, which is often regarded as being close to the Chinese Communist Party, said these measures could include putting some companies on a so-called "unreliable entity list." It's unclear what this list entails as it has not been published. But it was something floated by China last year after Huawei was thrown on a U.S. blacklist known as the Entity List.
Other measures could include "imposing restrictions on or launching investigations into U.S. companies like Qualcomm, Cisco and Apple according to Chinese laws and regulations like Cybersecurity Review Measures and Anti-monopoly Law," the Global Times said.
Apple and Cisco declined to comment. Qualcomm was not immediately available for comment when contacted by CNBC.
Risks to China supply chain, jobs
The iPhone maker is one of the few U.S. technology firms that has found success in China over the past few years, with sales from the Greater China region accounting for around 16% of sales in the March quarter.
But China is not only critical for revenue. It's also where most iPhones are assembled by its manufacturing partner Foxconn and the country is a critical part of Apple's supply chain. Foxconn employs hundreds of thousands of people in China.
While moving production outside of China is not an easy task, American technology firms including Apple are looking at other countries such as India and Vietnam. Last year, Apple was reportedly looking to start a trial for the production of its AirPods in Vietnam and asked suppliers to look into moving 15% to 30% of production from China to Southeast Asia.
China may not want to risk accelerating this move.
"China is already facing headwinds as companies such as Apple look to diversify their manufacturing base," Neil Shah, research director at Counterpoint Research, told CNBC. "So it could be a double whammy if China targets Apple in China and indirectly Foxconn, it would further accelerate the manufacturing to outside of China."
Meanwhile, Apple has 42 stores in China and multiple partners that distribute its product. On top of that, Apple said last year that it has 2.5 million developers on its platform. Since the App Store launched in China in 2010, developers have earned more than 200 billion yuan ($28.1 billion).
"Apple has huge direct and indirect contribution to the Chinese economy. So Beijing will have to think twice before targeting Apple," Shah said.
Relationship with Beijing
Apple has also forged a good relationship with authorities in Beijing, according to Paul Triolo, head of Eurasia Group's geotechnology practice.
"We do not think Beijing will go after Apple. There could be some brand boycott efforts, but not major moves against high profile companies like Apple that have very good relationships with local governments and Beijing," Triolo told CNBC.
It's not the first time Apple has been caught in the middle of a battle between Washington and Huawei. Last year, after Huawei as put on the U.S. Entity List in May, some social media citizens in China rallied behind the company and said they would no longer buy Apple products. But that social media backlash didn't appear to have a huge effect on the company.
Indeed, Apple has to be very careful how it operates in China, where there is heavy censorship. Authorities often ask companies to comply with removal requests of content that the government does not like.
Last year, Apple removed a mapping app from its App Store that was used by anti-government protesters in Hong Kong after Chinese state media ran a piece headlined: "Is Apple helping HK rioters engage in more violence?" The protest movement in Hong Kong is aimed at pushing back against the perceived growing influence of China on the special administrative region.
Apple said at the time that it removed the mapping app because it "has been used in ways that endanger law enforcement and residents in Hong Kong" and has been "used to target and ambush police."
And in 2017, the company removed several virtual private network (VPN) apps from it Chinese App Store. VPNs are required to access sites that are blocked in China such as Google and Facebook.
The company has been criticized in the past for some of these actions. Last year, a group of bipartisan U.S. lawmakers penned an open letter raising their concerns about Apple's removal of the Hong Kong app.
So what will China do?
Instead of going after Apple in a big way, Beijing could target other firms.
"Based on what Chinese officials have been saying, at a minimum there will likely be investigations of U.S. companies for anti-monopoly behavior and for compliance with the provisions of the cybersecurity law. But this gives Beijing a lot of flexibility in terms of reacting to satisfy Chinese social media activists demanding a strong response, but not further poisoning the business environment in China for foreign, particularly U.S. firms," Triolo said.
"The companies most likely to be included on the unreliable entities list and targeted for some action are those already subject to some market access limitations and that Beijing sees as sufficient symbolic to show strong anger over the move, without engendering a major response from the business community, further supply chain movement out of China, etc."
Trump calls US coronavirus numbers a 'badge of honor'

Doctors warned today that inflammation is causing the severe effects of Covid-19 disease in patients, and said reducing those effects may be key to helping people get better.
Teams across the US are testing a variety of immune-modulating drugs often prescribed for conditions such as rheumatoid arthritis and cancer, Dr. Vincent Marconi of the Emory University School of Medicine told a briefing organized by the Centers for Disease Control and Prevention.
Marconi described more than a dozen drugs that are being tried out in severely ill Covid-19 patients. Various drugs attack inflammation from different angles and might tamp down the so-called cytokine storm that appears to be causing the worst damage in advanced patients, Marconi said.
They include sarilumab, sold under the brand name Kevzara, to treat rheumatoid arthritis; adalimumab, or Humira, also a rheumatoid arthritis drug; siltuximab, or Sylvant, used to treat cancer; and others.
The stages of symptom severity: Marconi said a three-stage process takes patients from mild disease to extreme symptoms that affect the whole body, and said inflammation underlies the most serious stage.
Many people infected with Covid-19 may not have any symptoms, and most have mild symptoms. Marconi said the mild stage has common symptoms, including a dry cough, fever and a headache.
“The vast majority of individuals will recover at this point and will not progress to the pulmonary phase,” he said. That second phase is marked by lung inflammation and trouble breathing.
After that, patients can get worse quickly. That’s when doctors see symptoms of shock, acute respiratory distress syndrome, and the “terrible” clotting problems that cause organ damage, blockages and strokes.
China stocks up food and oil supplies as coronavirus spurs fears about shortages
A customer wearing face mask buys flour at a supermarket on May 12, 2020 in Taiyuan, Shanxi Province of China.
Zhang Yun | China News Service | Getty Images
China has been building up its food and energy stockpile this year, taking advantage of slumping crude oil prices even before the coronavirus pandemic disrupted supplies.
The world's second largest economy, which has limited arable land, is facing pressure to shore up its food supplies as prices for food started ticking higher last year, prior to the virus outbreak.
Lockdowns and movement restrictions aimed at containing the coronavirus have triggered transportation and logistics bottlenecks.
Those blockages have highlighted the vulnerability of global supply chains, and fears of food shortages have come to the forefront of countries, both in developed and emerging economies.
Fear is a powerful motivator. It's driving policy in China currently. Fits well with those hardliners that want to rebuild food reserves.
Arlan Suderman
chief commodities economist at INTL FCStone
Consumers in China are worried about further repercussions from the pandemic as it continues to spread globally.
"People there (in China) are panicked that coronavirus will eventually shut down the world's ports, making it impossible for them to import," said Arlan Suderman, chief commodities economist for INTL FCStone in a tweet on Monday. "As such, they are hoarding supplies now while they are cheap and available."
"Fear is a powerful motivator. It's driving policy in China currently. Fits well with those hardliners that want to rebuild food reserves," he added.
Food prices surge
China is the world's largest consumer of pork, a staple protein for the country.
In the first four months of the year, meat imports in China rose 82% compared to a year ago. These include pork, beef and poultry.
"We expect food stockpiling to continue especially in cities exposed to logistic disruption. The confluence of expected food price increases alongside an economic contraction and rising unemployment will push up the risk of civil unrest," said Kaho Yu, senior Asia risk analyst at Verisk Maplecroft, a consultancy.
Already, food inflation in the country has been ticking higher.
Last Tuesday, China announced that food prices rose 14.8% in April from a year ago. Even though it was lower than the 18% increase in March, it was still at a high level.
Pork prices rose almost 97% in April in what has been a persistent trend since early 2019 due to the African swine fever epidemic in pigs that decimated China's hog herds.
In comparison, non-food prices rose just 0.4% in April, official government data showed.
Soybean supplies are particularly vulnerable to supply shocks as China, the top importer of the commodity, needs the oilseed to make animal feed and cooking oil.
In April, China's soybean imports fell 12% from a year earlier, customs data showed, due to bad weather causing the delay of cargoes from top supplier Brazil.
As for rice, China is the world's largest producer of the staple grain with most of its supplies being consumed domestically.
Even so, concerns about food security of the staple grain have led to panic buying and spurred the state to acquire more stocks from the market for its national reserve.
In April, Chinese authorities assured the population that it was stepping up state buying of rice and that there were enough stocks, state news agency Xinhua reported.
"We expect China to continue stockpiling crops to ensure sufficient supply over the next six months by scouring the globe for available supplies," said Yu in a recent report.
The consultancy puts China in its "high risk" category in terms of food import security, which means that its food imports risk being subjected to disruption.
Crude oil reserve building
Likewise, China has been building up its crude oil stockpile, and went on a buying spree in the first quarter of this year, data show.
Although crude oil imports fell in April compared to a year ago, they still rose from March. But analysts say limited storage facilities could put a cap on imports.
China is expected to continue importing crude to fill its reserves taking advantage of lower oil prices.
Lei Sun
senior consultant at Wood Mackenzie
"Major crude oil importers such as China have been known to build their strategic reserves when prices are low, as seen in previous oil price routs," Lei Sun, senior consultant at Wood Mackenzie, said in a March report. "China is expected to continue importing crude to fill its reserves taking advantage of lower oil prices."
However, the country has less room to import than it did in the last two years, due to limitations in storage capacity, he said.
As supply lines continue to be disrupted due to the coronavirus outbreak, Yu at Verisk Maplecroft said he expects Beijing to double down on building more storage capacity, on top of energy development at home.
"Energy is also core to the country's economic engine. Throughout the pandemic, Beijing has been prioritising maintaining a stable coal supply with an eye on power generation for industrial activities," said Yu. "We also expect Beijing to speed up the resumption of large scale energy infrastructure projects."
Putting food and energy first
Food and energy security have always been important for China, but the pandemic has underscored these concerns.
In April, President Xi Jinping spoke about food and energy supply security several times, noted Yu.
In the same month, state agencies — such as China's National Development and Reform Commission, the National Food and Strategic Reserves Administration and other ministries — issued a policy notice aimed at ensuring adequate food production, storage capacity and logistics, Yu noted.
Also in April, China's National Energy Agency issued a list of policy areas to focus on this year. They included power supply, grid networks, oil and gas infrastructure, and coal projects.
The developments underscored the government's concerns, he said.
"Both Xi's rhetoric and associated policy announcements from various ministries show how food and energy security are high on the government's agenda," said Yu.
"All of them are aiming to avoid potential pandemic-linked supply shortages and to increase self-sufficiency of critical resources over the long term. The COVID-19's disruption on trade and industrial activities has reignited Chinese leadership's long-running concerns over resource security."
As China faces a blacklash in the West, Xi needs Africa more than ever

Important diplomatic allies

An early rupture in relations
Before the crisis
As China faces a blacklash in the West, Xi needs Africa more than ever

Important diplomatic allies







