Monday, July 17, 2023

A LIBERAL DEFENSE OF NUCLEAR POWER


Abandoning nuclear power was a mistake. Germany must return to the future of energy

Nick O’Hara
Sun, July 16, 2023 

Neckarwestheim Nuclear Power Plant
Getty Images/fhm

A little over a decade ago I was living in Charlottenburg, a Berlin neighbourhood just a few kilometres to the west of the Brandenburg Gate, on the other side of the lush, tree-lined paths and bathing lawns of Tiergarten. One of things I admire so much about Germany is its particular brand of pragmatic long-termism, which sets it apart from its Anglo-Saxon peers. But when it comes to energy, Germany has uncharacteristically abandoned pragmatism and championed renewables under its Energiewende strategy. It's a failing energy policy that has been decades in the making.

Shortly after the reunification of Germany in the late 20th Century, British architect Norman Foster was commissioned to transform the neglected old Reichstag building. The structure he found had been cast adrift following the inferno of brutal war, and left largely abandoned during four decades of cold division. Whereas we rarely discover the secrets contained deep within most great offices of state, the Reichstag was opened up to reveal its soul. Foster uncovered a story of conflict, told in part through small details, including the Russian graffiti on crumbling walls marked by the scars of human misjudgement.

Why Big Oil loves the renewable energy industry

In setting about designing the physical embodiment of a new nation, united and reborn in the early 1990s, Foster and his team prioritised four related considerations: the new Reichstag's significance as a democratic forum; an understanding of history; a commitment to accessibility; and a vigorous environmental agenda. By the end of the decade his vision for the Reichstag was realised and it became the seat of the Bundestag (German Parliament) which, in 1999, convened in its rejuvenated home for the first time. It marked a moment in history: a reinvigorated young nation ready to reintroduce itself to the world, stepping boldly and confidently into the 21st Century. The old building together with its new occupants – and the people they represented – were united. They were looking to the future, just as the architect had intended that they might.

With a climate emergency so real, so immediate and so pressing, it feels as though that simple vision for the future could be fading from view

Foster's design for the Reichstag was a model of sustainability and ahead of its time, using an on-site bio-fuel cogenerator to produce the building's electricity. This machine works by storing surplus heat in an underground aquifer, the hot water from which is pumped up to heat the building and to drive an absorption cooling plant to produce chilled water. The result was a dramatic reduction in CO2 emissions. Theoretically, the Reichstag has the ability to produce more energy than it consumes, allowing it to serve as a mini power station for the surrounding government quarter.

Nearly a quarter of a century on from the unveiling of the new Reichstag, most of us – from Germany's politicians to Norman Foster himself – want to see a more equitable world that operates sustainably, to ensure that future generations can inherit viable societies in a liveable planet. It may sound idealistic, but it's really a modest ambition. Yet with a climate emergency so real, so immediate and so pressing, it feels as though that simple vision for the future could be fading from view.

Those nuclear power plant closures were a purely political move and make no economic or climate sense

The fear-inducing warnings from those with good climate intentions don't seem to be working – they risk creating a sense of fatalism, especially if we keep being told that this is our last chance each time there is a Conference of the Parties summit on climate. Humanity must find a way to act with urgency to avert a climate catastrophe, and we can do so with a sense of optimism at the new possibilities and opportunities available to us if we seize this moment. We can look to the future.

But we aren't seizing the moment.

We need to change course on the issue underpinning so many others we face today, which is also the overriding driver for climate change: how we produce, distribute and consume energy. A famous German, Albert Einstein, is widely – perhaps falsely – credited as once saying, "the definition of insanity is doing the same thing over and over again and expecting different results." In the context of the current economic crisis accompanied by the climate emergency, the definition of insanity is doing the same thing over and over again and striving for the same results.

When it comes to energy, there are two forms of insanity we are witnessing today. The first is sticking with CO2-emitting fossil fuels, which account for 82 percent of global energy, according to BP's Statistical Review of World Energy 2022. The second insanity is believing, as the prevailing forces within today's Reichstag do, that renewables alone are the best alternative.

***

Energiewende isn't working. The plan was to phase out nuclear energy, expand renewable sources and make its economy virtually carbon-neutral by the middle of the century. The only part of the plan that has had any clear "success" is regarding nuclear, which it recently discarded altogether, closing its final three nuclear plants in April this year.

Germany's emissions aren't reducing significantly, because the country remains dependent on fossil fuels for a more than half of its electricity

Those closures were a purely political move and make no economic or climate sense. No clear path to replacing them has been set out, other than to introduce a new set of gas plants which would only increase greenhouse gas emissions. The hope is that these would one day be converted to hydrogen, but it all amounts to a needlessly convoluted set of arrangements necessitated by abandoning nuclear power. Unsurprisingly, investors are not exactly champing at the bit to back costly transitional infrastructure and aspirations which are so clearly flawed.

Germany's emissions aren't reducing significantly, because the country remains dependent on fossil fuels for a more than half of its electricity, with coal – including dirty, heavily CO2-emitting lignite – the largest single source, providing almost one-third of all electricity. The problem is a refusal to acknowledge reality: renewables are variable and cannot continuously provide energy at all the times we need it.

Whatever its political aspirations, Germany's energy networks are no different to any other country in the most basic sense: energy supply must at all times be equal to energy demand. Germany's grid needs to meet the demands of consumers around the clock, including during peak times such as the coldest winter nights when solar is not producing.

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Germany is generating 43 percent of its electricity from renewables, but it is paying a heavy price for this. The cost is felt through the volatility that intermittent renewables introduce to the network. Renewables may appear cost-effective when viewed in isolation on sunny or windy days when they produce a lot of energy.

However, when the sun or wind disappears, there is no affordable battery technology system that can store unused surplus energy at the scale required to supply an entire grid, covering unproductive periods. Therefore, to plug the gaps at night, Germany – with its grid interconnected with the rest of continental Europe – either draws from neighbouring countries, or turns to its natural gas or coal-fired power plants to kick in. Firing those up adds considerable cost, in more ways than one, which ought to be added to any calculation of the true cost of renewables.

So, the inevitable shortfall from renewables needs to come from a reliable source. If that reliable source is not clean nuclear, it will be a dirty fossil fuel. Bafflingly, Germany is choosing the dirty option.

The Greens have unswervingly made scrapping nuclear energy a key demand in coalition negotiations, resulting in them holding sway on German energy policy

This is because Germany's political landscape is shaped by an electoral system of proportional representation. Federal elections consistently produce indecisive outcomes, which in turn require the establishment of cross-party coalitions to form a government. One of the main beneficiaries of this, down the years, has been Germany's Green Party, which grew out of the 1970s anti-nuclear movement. The Greens have unswervingly made scrapping nuclear energy a key demand in coalition negotiations, resulting in them holding sway on German energy policy.

The net effect is that anti-nuclear propaganda has persuaded Germany's politicians to oppose the safest, most reliable, concentrated, efficient and carbon-free energy source available to us. But already the plan is failing. In recent recognition that the Energiewende ambitions would not be met, Germany's Bundestag – today's occupants of the Reichstag – removed a target for 100 percent renewable electricity by 2035, instead requiring that electricity supply be 'nearly' climate neutral by 2035 and that 80 percent of electricity must come from renewables by 2030.

This rowing back of climate targets is the price for abandoning nuclear energy — for abandoning the carbon-free solution already staring us in the face, available and ready to be scaled-up now.

As with any parliamentary building, Norman Foster must have known that the competing ideas that would be contested underneath his iconic glass cupola redesign might not always lead to effective legislative instruments, delivering sensible policy outcomes. Perhaps nobody could have anticipated the extent to which Foster's fourth consideration in renovating the Reichstag – the vigorous environmental agenda – might one day go so badly awry that it risks echoing the past misjudgements that reverberate inside that building without secrets. As was the case before, the wider consequences for humanity are huge.

This rowing back of climate targets is the price for abandoning nuclear energy — for abandoning the carbon-free solution already staring us in the face

An almost unquestioning support for renewables has become the new orthodoxy in mainstream thinking. However, whether we look at safety, measured as deaths per unit (terawatt-hour) of electricity created, or look at emissions, measured as CO2 per gigawatt-hour of electricity over the cycle of a power plant, nuclear is as clean and safe an energy source as any alternative. The unit of one gigawatt-hour is equivalent to the annual electricity consumption of one hundred and fifty people in the European Union.

Nuclear's three tonnes per gigawatt-hour is cleaner than solar's five tonnes. In a head-to-head comparison, including greenhouse gas emissions from the full lifecycle of the power plant (construction, operation, maintenance, fuel, decommissioning), nuclear is as low carbon as wind and much lower than solar, hydro, geothermal and bio renewables. A 2014 Intergovernmental Panel on Climate Change working group paper had nuclear on 13 tonnes per gigawatt-hour and solar on 53 tonnes per gigawatt-hour, measured on a life-cycle basis.

The five European countries with the lowest greenhouse gas emissions per unit of electricity generation are Norway, France, Sweden, Switzerland and Finland. They have all achieved this through nuclear, hydro or both. By contrast, the five countries which have invested most in solar and wind – Germany, Denmark, Portugal, Spain and Ireland – all have much higher emissions.

Sweden looked to the future when it embraced nuclear energy in the early 1970s

Sweden looked to the future when it embraced nuclear energy in the early 1970s and within twenty years, according to World Bank data for the period 1970 to 1990, saw CO2 per capita reduce by fifty percent whilst GDP per capita increased by fifty percent. Fifty years on from that policy decision, Sweden has clean, secure and affordable energy and is emitting less greenhouse gas than any comparator nation.

In fact, Sweden is the least polluting country in Europe and of any major industrialised nation, emitting carbon dioxide at under four tonnes per capita. By contrast, Germany is emitting more than double that, at just over eight tonnes per capita. Sweden's use of nuclear as its reliable linchpin has enabled it to increase the share of renewables within its energy mix. Germany can only look on with envy.

Across the Atlantic, the United States emits almost 15 tonnes per capita – in large part because it chose to head in the opposite direction to Sweden over the same time period. Whereas the US had previously been intent on vigorously pursuing nuclear energy, and on course to a low carbon clean energy future, it changed track with disastrous consequences. President Eisenhower's "Atoms for Peace" vision descended back down to fossil fuels.

The United States turned back from the future by curtailing nuclear expansion and that one policy decision, above all others in living memory, almost certainly precipitated the climate crisis we now face. Reversing it is humanity's best hope of securing the simple ambition of gifting our children a future worth inheriting.

Related

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As we look ahead to that future, we must look to the past for guidance. The clues are always there for us, if we pay attention to them. Norman Foster's work is currently being showcased at the Centre Pompidou in Paris. The 2,200 square-metre exhibition – which includes Foster's drawings and original models for more than one hundred projects – spans six decades of his achievements in reconceptualising the functions of architectural design and physical form, and runs until early August. The Retrospective provides an opportunity not only to celebrate his work, but to learn from past progress to inform how we look forward – something Foster's life has been dedicated to doing. Indeed, 'future' is one of seven themes explored in the Pompidou exhibition.

Humanity's future hangs in the balance, and much depends on the energy technologies we decide to prioritise in facing a climate emergency against the backdrop of increasing global demand for energy. Beyond European borders, the world requires an abundance of clean energy as billions of people rightly demand a rise in their living standards. This requires supposedly "climate conscious" Europeans to revisit our preferences for particular energy technologies. Indeed, it requires us to focus on achieving a carbon free future, rather than promoting one energy source at the expense of others.

The German Government has committed to phasing out fossil fuels, and pledged for Germany to become greenhouse gas-neutral across all sectors, by 2045. However, there is no combination of renewable energy technologies currently known to mankind that is capable of delivering this. So, in order to meet the climate change challenge, Germany should focus on maximising low-carbon electricity supply rather than slavishly aiming to increase the share of renewables. Wind and solar energy cannot fully cover demand, so it's difficult to see how Germany will avoid returning to nuclear eventually if it wants to decarbonise. Sooner or later, Germany and it's glorious Reichstag will, once again, have to go back to the future. The best time to do that is now.

We abandoned nuclear power. Now, Earth is paying the price
COLD WAR 2.0
Sanctioned Chinese Military Giant’s US Business Keeps Growing

Bruce Einhorn
Sun, July 16, 2023 



(Bloomberg) -- Cirrus Aircraft Ltd. is proud of its history in the US heartland: the private plane maker’s website includes details such as the company’s 1984 launch in a Wisconsin barn, the opening of a Minnesota R&D center and a North Dakota factory.

But there’s something missing from the company’s All-American timeline: Cirrus’s ownership by a sanctioned Chinese military manufacturer.

For more than a decade, Cirrus has been a subsidiary of Aviation Industry Corp. of China, a maker of fighter jets, helicopters and drones for the People’s Liberation Army. AVIC, as the parent company is known, is also one of the world’s largest military contractors and is subject to US sanctions.


Cirrus isn’t a military manufacturer — its main products are single-engine planes used by private citizens and charter services — but some of its technology and manufacturing expertise could be valuable to the PLA, according to several aviation and Chinese military experts interviewed by Bloomberg. In June, the company filed with the Hong Kong stock exchange for an initial public offering. Its expansion, despite deep tensions between Beijing and Washington, underscores the complex political calculations underlying US sanctions.

“There’s an imperfect, Swiss-cheese approach to this,” said Sarah Kreps, a professor of government at Cornell University. Policymakers “haven’t pulled all the threads to ensure there aren’t these blind spots in the sanctions regime that’s in place.”

Cirrus hasn’t been accused of any wrongdoing and there’s no sign the US is seeking to target the company. But its parent company is under a great deal of scrutiny. Starting in 2020, the US began flagging AVIC as a potential national security threat, imposing sanctions designed to hinder the growth of companies directly connected to China’s military.

“As the People’s Republic of China attempts to blur the lines between civil and military sectors, ‘knowing your supplier’ is critical,” then-Pentagon spokesman Jonathan Hoffman said in June 2020.

The Trump administration started a process that would see AVIC added to a suite of federal lists that variously restricted exports to the company and banned purchases or sales of publicly traded securities. The Biden administration continued and refined that effort, citing the “threat posed by the military-industrial complex” of China.

Throughout that period, Duluth, Minnesota-based Cirrus and other AVIC affiliates in the US continued to grow.

During the pandemic, Cirrus expanded its Duluth facility and opened a flight training center in Scottsdale, Arizona. Last year, Cirrus announced new sales, maintenance and training centers at two airports in central Florida, and in May the company flagged it had started construction of a $13 million facility in McKinney, Texas, near Dallas.

“We just love being able to brag that you are here in this city,” McKinney Mayor George Fuller said at the ground-breaking ceremony, according to Community Impact, a local news outlet. In a call with Bloomberg, Fuller praised the company’s investments, including the hiring of highly paid engineers.

In an emailed statement, Cirrus said it “has a policy of full compliance with US sanctions, export controls and other investment restrictions, including as it relates to our relationship with our parent company and as to sales in all 36 countries in which we conduct business.”

AVIC didn’t respond to questions about its ownership of Cirrus.

At a time of heightened sensitivities over Chinese-owned companies in the US, when some states have sought to restrict or ban Chinese investments, Cirrus isn’t the only AVIC-backed company winning praise from politicians.

AVIC is the largest shareholder, with about 46%, of Continental Aerospace Technologies Holding Ltd., which makes piston aircraft engines and components in Mobile, Alabama. Last year it received Republican Governor Kay Ivey’s “Trade Excellence Award” for its contributions to the state economy. Ivey’s office didn’t respond to questions about the company’s Chinese shareholder.

In 2022, Michigan gave more than $25 million in Covid-relief funds to Nexteer Automotive Group, an AVIC-affiliated maker of car parts based near Detroit that had about 12,600 employees and $3.8 billion in revenue.

None of those subsidiaries faces accusations of wrongdoing.

The debate over how best to apply sanctions comes amid bipartisan scrutiny of Chinese investments and a Biden administration effort to ramp up restrictions on technology exports to China.

During a trip to Beijing this month, Treasury Secretary Janet Yellen said she emphasized to her counterparts that any measures would be “narrowly scoped” and clearly communicated. China has repeatedly said US restrictions are meant to stop the country’s rise.

With 2022 revenue of about $890 million, Cirrus is a small part of the AVIC empire. The state-owned group, which also makes commercial aircraft, has many closely-held subsidiaries as well as about two dozen affiliates traded in Hong Kong, China and Europe with a combined market capitalization of about $100 billion, according to data compiled by Bloomberg.

One reason Cirrus and other AVIC companies have avoided sanctions has to do with how officials targeted the group: They never added it to the most restrictive sanctions list, which is overseen by the Treasury Department’s Office of Foreign Assets Control.

Instead, Treasury created a new target list and said that list wouldn’t be subject to the department’s toughest restrictions, which would automatically apply sanctions to majority-owned subsidiaries.

“A lot of folks were scratching their heads a bit when the sanctions came out,” said Chase Kaniecki, who focuses on trade and national security issues as a partner at Cleary Gottlieb Steen & Hamilton in Washington.

The move likely reflected concern that some Chinese companies had subsidiaries all over the world, he said, and the US government didn’t want to impact them inadvertently.

The US made just such a misstep in 2018, when sanctions against Russian billionaire Oleg Deripaska resulted in an unintended spike in global aluminum prices.

Deripaska held a majority stake in United Co. Rusal International PJSC, at the time the world’s second-largest aluminum producer. Restrictions were never imposed on Rusal due to repeated waivers by Treasury, but the economic shock prompted a rethink on how the US should use its most powerful economic weapons.

In addition, some companies targeted for sanctions during the Trump administration successfully challenged the restrictions in court, and Biden’s team sought to bolster the legal justification for any listings.

AVIC, through its subsidiary China Aviation Industry General Aircraft, bought Cirrus more than a decade ago, when many American companies were struggling due to the Great Recession. The conglomerate spent around $210 million to acquire it, gaining access to small-plane manufacturing expertise.

The 2011 purchase was reviewed by the Committee on Foreign Investment in the United States, a federal entity that can block foreign purchases of US companies and real estate, often on national security grounds. At the time however, US-China relations were less tense.

“There was a different risk tolerance,” said Emily Kilcrease, a senior fellow at the Center for a New American Security in Washington and former deputy assistant for foreign investment policy at the Office of the US Trade Representative.

Scrutiny on Cirrus could soon increase: The company’s prospectus with the Hong Kong stock exchange offers a look at its connections to other parts of the AVIC empire.

Cirrus Vice-Chairman Hui Wang is a director of AVIC Heavy Machinery Co., which is on one of Treasury’s sanctions lists and a Pentagon list of Chinese military companies. Another Cirrus director sits on the boards of two sanctioned AVIC subsidiaries.

The Hong Kong prospectus also says that since 2019, Cirrus has worked with AVIC-owned China Aviation Industry General Aircraft Zhejiang Institute Co. to make a training aircraft. The US in 2020 put that partner on a Commerce Department Military End User list, which means certain exports to it are restricted without a special license.

In its prospectus, Cirrus said it received US government approval for exports to China and has strictly complied with its export license from the Bureau of Industry and Security, an agency of the Commerce Department.

AVIC’s ownership isn’t an issue for Richard Kane, CEO of Verijet Holding Co., which leases point-to-point trips on Cirrus’s single-engine Vision Jet planes. Verijet, based near Miami, has about 20 Cirrus aircraft, which Kane praises as fuel efficient and safe.

“The Chinese have been pretty hands off,” Kane, who said he’s close to Cirrus’s management team, told Bloomberg. “So far, so good.”

But while there’s a big gap between producing general aviation, or GA, aircraft and weaponry such as AVIC’s sophisticated attack drones, the US subsidiary does potentially have expertise that could be valuable to military customers, said George Ferguson, senior aerospace and defense analyst with Bloomberg Intelligence.

“A small drone looks like a GA aircraft: small frames, long endurance, propeller driven,” said Ferguson. “It’s not totally without skills that are transferable.”

William Kim, a defense researcher at RAND Corp., agreed, saying that “while small private planes may lack military utility,” the technology that goes into them “could have some dual-use purposes.” He cited the use of composite materials in civilian planes and military drones as one example.

To build capabilities in small aircraft, AVIC would need access to the US market, Ferguson added, since restrictions on airspace use in China have kept the industry from developing there.

For now, sanctions experts say there’s probably little that policymakers can do about AVIC’s businesses in the US.

If it wanted to take a harsher approach, the government could attempt to force AVIC to divest its ownership of Cirrus and other US companies, just as the Trump administration tried to force Beijing-based ByteDance Ltd. to sell control of TikTok to a US buyer.

The US could also impose the most severe set of sanctions, putting AVIC on Treasury’s Specially Designated Nationals and Blocked Persons List. That would block its assets and ban US persons from doing business with it, but it would be an extreme measure, the Center for a New American Security’s Kilcrease said.

“It’s a very big escalatory step,” she said. “If we are ever in a serious shooting war with China, you want to have that in your back pocket.”

--With assistance from Thomas Black, Isabel Webb Carey and Rebecca Choong Wilkins.

Most Read from Bloomberg Businessweek
DECRIMINALIZE DRUGS
AOC and Crenshaw form unlikely team in bid to give troops access to psychedelic drugs

Michael Lee
FAUX NEWS
Sun, July 16, 2023

Reps. Alexandria Ocasio-Cortez, D-N.Y. and Dan Crenshaw, R-Texas, are forming an unlikely alliance, teaming up in a bid to allow troops access to psychedelic drugs.

"Psychedelics have shown so much promise," Ocasio-Cortez said of the effort, according to a report from the New York Daily News. "We desperately need the resources to treat PTSD, traumatic brain injury and depression. At least one in two PTSD patients cannot tolerate or do not respond adequately to existing treatments."

The progressive lawmaker's comments come as the military and Department of Veterans Affairs grapple with the growth of post-traumatic stress disorder in the ranks, an ailment that has doubled among veterans of Iraq and Afghanistan compared to Vietnam-era veterans. According to the VA and the Centers for Disease Control and Prevention, over 450,000 combat veterans have suffered from a some sort of traumatic brain injury between 2000 and 2021.


Rep. Dan Crenshaw and Rep. Alexandria Ocasio-Cortez

But new data suggest that unorthodox treatments with psychedelics help, leading Crenshaw and Ocasio-Cortez to form an unlikely alliance.

"This is a real wild coalition," Crenshaw, a Navy SEAL veteran who lost an eye in Afghanistan, said of his partnership with Ocasio-Cortez, according to the New York Daily News.

Crenshaw said the issue has personally touched him, recounting the stories of friends who have returned from war and were not cured of their aliments until they gained access to psychedelics, which are typically illegal in the United States.


Rep. Dan Crenshaw

"I was turned on to this issue because I had so many friends… who were going down to a specific clinic and doing ibogaine – one treatment of ibogaine would cure them," Crenshaw said.

The duo targeted this year's National Defense Authorization Act to introduce their proposal, managing to get a "watered-down version" of the bill they authored into the massive yearly legislation.

Crenshaw said House Speaker Kevin McCarthy, R-Calif., has promised the lawmakers to get a comprehensive version of the bill, which will include funding and clinical trials, in the legislation during meetings with the Senate to combine the two chamber's versions of the bill.


Rep. Alexandria Ocasio-Cortez

Meanwhile, Ocasio-Cortez called on veterans to apply pressure to the Senate to make sure the provision gains approval.

"I know the power of this community to rise up and make itself heard," Ocasio-Cortez said.


DEALING WITH A DIKTATOR
Tunisia and EU sign pact to stem migration


NGO migrant rescue ships Sea-Watch 3 and Ocean Viking rescue 394 migrants in Mediterranean

Updated Sun, July 16, 2023 
By Tarek Amara

TUNIS (Reuters) -Tunisia and the European Union signed on Sunday a "strategic partnership" deal that includes combatting human traffickers and tightening borders during a sharp increase in boats leaving the North African nation for Europe.

The deal follow weeks of talks and Europe's pledge of major aid to Tunisia amounting to 1 billion euros ($1.12 billion) to help its battered economy, rescue state finances and deal with a migration crisis. Most funds are contingent on economic reforms.

"It contains agreements on disrupting the business model of people smugglers and human traffickers, strengthening border control and improving registration and return. All essential measures for bolstering efforts to stop irregular migration," Dutch Prime Minister Mark Rutte said on Twitter.


The European Commission chief Ursula von der Leyens said the bloc will allocate 100 million euros to Tunisia to help it combat illegal migration. The deal promotes macro-economic stability, trade and investment, green energy transition and legal immigration.

Thousands of undocumented African migrants have flocked to the city of Sfax in recent months seeking to head for Europe in traffickers' boats, amounting to an unprecedented migration crisis for Tunisia.

"We are very pleased, it is a further important step towards creation of a true partnership between Tunisia and the EU, which can address in an integrated fashion the migration crisis," Italian Prime Minister Giorgia Miloni said.

Meloni, whose country has suffered a sharp increase in immigration boats, said that there would be an international conference on migration in Rome next Sunday with a number of heads of state, including Tunisian President Kais Saied.

Some 75,065 boat migrants had reached Italy by July 14 against 31,920 in the same period last year, official data showed. More than half left from Tunisia, overtaking Libya, which has traditionally been the main launchpad.

Saied said this month his country would not become a border guard for Europe.

(Reporting by Tarek Amara, Additional reporting by Crispian Balmer in Rome and Anthony Deutsch in Amesterdam, Writing by Tarek Amara and Hatem MaherEditing by Andrew Cawthorne)



EU, Tunisia sign 'strategic' deal on migration, economy

Francoise Kadri
Sun, July 16, 2023 

European Commission chief Ursula Von der Leyen shakes hands with Tunisian President Kais Saied after announcing a strategic deal with Tunis on economic development and irregular migration (-)

The European Union and Tunisia on Sunday signed a memorandum of understanding for a "strategic and comprehensive partnership" on irregular migration, economic development and renewable energy.

The deal, which includes financial assistance, came as Tunisia has been under fire over its treatment of migrants since February, after President Kais Saied accused "hordes" of migrants from sub-Saharan African countries of a "plot" to change the country's demographic makeup.

The cash-strapped North African country, a key route for migrants trying to make their way to Europe, has since seen a rise in racially motivated attacks.

Tensions came to a head after a Tunisian man was killed on July 3 in an clash between locals and migrants in the city of Sfax.

Since then, hundreds of migrants fled their homes in Tunisia or were forcibly evicted and driven to desert areas along the borders with Algeria and Libya, left to fend for themselves in searing heat.

Speaking at the Tunisian presidential palace, European Commission President Ursula von der Leyen said Sunday's accord aims to "invest in shared prosperity".

"We need an effective cooperation, more than ever" on migration, von der Leyen said, announcing greater cooperation against "networks of smugglers and traffickers" and in search and rescue operations.

She was accompanied by Italian Prime Minister Giorgia Meloni and her Dutch counterpart Mark Rutte, who were all in Tunisia in June for talks on ways to curb irregular migration.

- 'Unlimited generosity' -

Tunisia lies about 130 kilometres (80 miles) from the Italian island of Lampedusa, and has long been a departure point for migrants risking perilous sea journeys on makeshift boats in hopes of reaching Europe.

The International Organization for Migration has said 2,406 migrants died or disappeared in the Mediterranean in 2022, while at least 1,166 deaths or disappearance were recorded in the first half of 2023.

Meloni on Sunday welcomed "a new and important step to deal with the migration crisis", and invited Saied to an international conference on migration on July 23.

Rutte said both the European Union and "the Tunisian people" stand to benefit from the agreement, noting that the EU is Tunisia's biggest trading partner.

The deal also covers financial aid to schools in Tunisia and renewable energy initiatives.

Saied meanwhile called for a "collective agreement on inhuman immigration and (forced) displacements of people by criminal networks".

He insisted that Tunisia "gave the migrants everything it can offer with unlimited generosity".

Hours before the announcement, AFP correspondents at the Tunisian-Libyan border saw dozens of exhausted and dehydrated migrants in a desert area, claiming they were taken there by Tunisian authorities.

In June, von der Leyen had offered Tunisia 105 million euros (around $115 million) to support measure to curb irregular migration and 150 million euros in immediate support, as well as a long-term loan of around 900 million euros.

- IMF loan 'diktats' -


But the long-term loan would be contingent on approval of the nearly $2 billion loan currently with the International Monetary Fund, that has stalled over differences with Saied, who assumed near total governing powers since 2021.

Von der Leyen said the EU remains "ready to support Tunisia" and provide the funds "as soon as the necessary conditions are met".

But Saied has repeatedly rejected what he calls the "diktats" of the IMF before a loan is granted, even as the country struggles under crippling inflation and debt estimated at around 80 percent of its gross domestic product.

On Sunday, Saied stood his ground saying he rejects IMF demands to lift subsidies on basic products and services, namely oil and electricity, as well as the restructuring of 100 state-owned firms.

"We must find ways to cooperate outside the framework of monetary institutions that were set up after the second world war," he said.

- Stuck in the desert -

Earlier on Sunday, Libyan border agent Mohamad Abou Snenah told AFP near the Tunisian border that "the number of migrants (coming from Tunisian) keep rising every day," adding that his patrol had so far rescued 50 to 70 people.

Ibrahim, a Congolese migrant who used to live in the Tunisian city of Zarzis, told AFP he was stopped on the street on his way back from work.

"They dropped us in the desert," he said. "We've been in the desert for many days."

Tunisian rights groups said on Friday that between 100 and 150 migrants, including women and children, were still stuck on the border with Libya.

The Tunisian Red Crescent said it has provided shelter to more than 600 migrants who had been taken this month the militarised zone of Ras Jedir on the Mediterranean coast.





Moscow takes control of Russian subsidiary of Danone and Carlsberg's stake in brewer

Reuters
Sun, July 16, 2023

MOSCOW (Reuters) -The Russian state has taken control of French yoghurt maker Danone's Russian subsidiary along with beer company Carlsberg's stake in a local brewer, according to a decree signed by President Vladimir Putin on Sunday.

The decree said that foreign-owned stakes in Danone Russia and Baltika Breweries were being put under the "temporary management" of government property agency Rosimushchestvo.

It comes after the Russian subsidiaries of Germany's Uniper and Finland's Fortum were taken under state control in April.

The Kremlin warned at the time it could seize more Western assets on what it said was a temporary basis in retaliation for foreign moves against Russian companies abroad after Moscow sent thousands of its troops into Ukraine last year.

Carlsberg said in a statement late on Sunday it had "not received any official information from the Russian authorities regarding the presidential decree or the consequences for Baltika Breweries".

It added that the prospects for full disposal of its business in Russia were now highly uncertain. Carlsberg said in June it had signed an agreement to sell its Russian business, subject to regulatory approvals.

Danone said in a statement that it was investigating the issue, adding that the Kremlin's decision would have no impact on its financial guidance for 2023.

The French company said last October it was seeking a buyer for its dairy food business in Russia, in a deal that could lead to a write-off of up to 1 billion euros ($1.12 billion).

(Reporting by Caleb Davis and Darya Korsunskaya; Additional reporting by Louise Breusch Rasmussen in Copenhagen and Lavanya Sushil Ahire in Bengaluru; Editing by Andrew Osborn and Emelia Sithole-Matarise)
A timeline of China's 32-month Big Tech crackdown that killed the world's largest IPO and wiped out trillions in value

South China Morning Post
Sat, July 15, 2023

Chinese authorities initiated a regulatory storm against the country's Big Tech firms in late 2020 out of concerns that the country's major internet platforms were becoming too large and powerful.

Beijing's discipline of the tech sector wiped out trillions of dollars in market value from Chinese tech companies, kneecapped one of the most dynamic sectors in the world's second largest economy, and accelerated US-China decoupling. As a result, China's large tech companies, which once rivalled their US counterparts in size, are now much smaller.

Here are the major milestones of China's Big Tech crackdown that kicked off 32 months ago.

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November 2020

An initial public offering from Ant Group, which would have been the world's largest on record, was called off at the last minute in Shanghai and Hong Kong, sending shock waves through the global investment community. The IPO was quashed after a controversial speech the previous month from Alibaba Group Holding co-founder Jack Ma. Ant is the fintech affiliate of Alibaba, owner of the South China Morning Post.

China's financial watchdogs rushed to bring Ant's operations under the purview of conventional financial regulations, forcing the tech giant to undergo internal restructuring.

Later in the month, Chinese authorities summoned 27 major internet companies, including Tencent Holdings, food delivery giant Meituan, as well as TikTok owner ByteDance and Alibaba, lecturing them to correct alleged monopolistic practices, unfair competition and counterfeiting. China's antitrust watchdog, the State Administration for Market Regulation (SAMR), rushed an antitrust guideline to rein in internet-based monopolies.

December 2020

China's top leaders highlighted at the annual Central Economic Work Conference that the country must prevent the "disorderly expansion of capital", a goal used to curb the influence and size of Big Tech. The message to investors and entrepreneurs was that the "barbaric" growth of China's internet industry was over.

On Christmas Eve, the SAMR announced that it had officially launched an antitrust investigation into Alibaba.



In a speech at the Bund Summit in Shanghai on October 24, 2020, Alibaba co-founder Jack Ma Yun compared Chinese banks to pawnshops. Photo: WEIBO alt=In a speech at the Bund Summit in Shanghai on October 24, 2020, Alibaba co-founder Jack Ma Yun compared Chinese banks to pawnshops. Photo: WEIBO>


April 2021

China's market regulator fined Alibaba a record 18.2 billion yuan (US$2.8 billion), equivalent to 4 per cent of its 2019 revenue, for abusing "its dominant market position in China's online retail platform service market since 2015".

The antitrust authority then summoned 34 technology companies, including Alibaba, Tencent and Meituan, for a meeting and demanded they "pay full heed to the warning of Alibaba's case".

July 2021

China's market regulator started to look into merger cases dating back to the early 2000s and fined Big Tech firms for failing to report certain deals for an antitrust review. It issued at least 22 fines of 500,000 yuan each - the maximum penalty allowed under China's anti-monopoly law - against Alibaba, Tencent and ride-hailing giant Didi Global.

As a result, Big Tech mergers and acquisitions plummeted, and companies started to divest previous investments to downsize their balance sheets.

China's powerful internet regulator, the Cyberspace Administration of China (CAC), also launched an unprecedented probe into Didi for violations of data and national security, two days after it launched a US$4.4 billion IPO on the New York Stock Exchange. The move opened a new front in the Big Tech crackdown, bringing Chinese IPOs in the US to a halt.

Didi was ordered to stop registering new users on its main app. Two months later, China's Data Security Law came into force.



Signage at the Didi Global offices in Hangzhou on August 2, 2022. Photo: Bloomberg alt=Signage at the Didi Global offices in Hangzhou on August 2, 2022. Photo: Bloomberg>

October 2021

China fined Meituan 3.4 billion yuan for abusing its dominant market position using what it referred to as a "pick one from two" practice that forced merchants into exclusive deals. The fine was equivalent to about 3 per cent of Meituan's total domestic revenue of 114.7 billion yuan in 2020.

January 2022

China's regulatory storm started to ebb when authorities released a guideline promoting the "healthy and sustainable development" of the platform economy. It reaffirmed Beijing's commitment to cracking down on monopolies, unfair competition and abuse of data, but the document also struck a more positive tone by recognising the role Big Tech firms play in the economy and encouraging their development.

May 2022

Vice-Premier Liu He told a few tech executives that the government would support the development of the sector and public listings, giving tech stocks a shot in the arm and raising hopes that the worst of Beijing's regulatory scrutiny was over.

July 2022

The CAC imposed a fine of 8 billion yuan on Didi Global for data violations, ending the year-long investigation.

December 2022

President Xi Jinping addressed the Central Economic Work Conference in Beijing. The meeting concluded that internet platforms will be supported to "fully display their capabilities" in boosting the economy, job creation and international competition.

January 2023

Didi Global said it had resumed new user registrations for its ride-hailing app, after getting approval from the CAC.

The same month, Ant Group and 13 other platform companies said they "have basically completed business rectification" under the guidance and supervision of financial regulators after being ordered to address various compliance issues in late 2020.

July 2023

Two-and-a-half years after the government killed Ant Group's IPO, financial regulators fined the fintech giant a total of 7.1 billion yuan for breaking rules related to "corporate governance and financial consumer protection". The move was seen by industry experts as the end of China's crackdown on the tech sector.

Chinese Premier Li Qiang later offered support to major tech companies at a symposium while China's powerful economic planning agency praised Alibaba, Tencent and Meituan for their contributions to the country's growth and technological progress.

This article originally appeared in the South China Morning Post (SCMP), the most authoritative voice reporting on China and Asia for more than a century. For more SCMP stories, please explore the SCMP app or visit the SCMP's Facebook and Twitter pages. Copyright © 2023 South China Morning Post Publishers Ltd. All rights reserved.

Copyright (c) 2023. South China Morning Post Publishers Ltd. All rights reserved
UK
Labour would need to build 3,000 new wind turbines to meet its net zero targets

Ben Riley-Smith
Sun, July 16, 2023 

Offshore wind turbines near Redcar, England - Abstract Aerial Art/Digital Vision

Labour would need to oversee the creation of up to 3,000 new onshore wind turbines in its first term in office to hit the party’s ambitious net zero targets, The Telegraph can reveal.

Sir Keir Starmer has pledged to more than double the amount of power generated from onshore wind from the current level of 15GW to around 35GW by 2030.

Analysis for The telegraph by RenewableUK, the British wind energy trade body, estimates that between 2,000 and 3,000 new wind turbines on UK soil would be needed to achieve that ambition.

That could mean an increase of around one-third from the current total of 8,600, and it would be delivered by Sir Keir ending the effective ban on new onshore turbines being built in England.


A Labour Party spokesmen did not dispute the accuracy of the estimate.

The construction of wind farms on the UK mainland has proved much more politically sensitive than building turbines offshore.
Boosting energy output

Climate campaigners insist onshore wind is one of the quickest, cheapest ways to boost the UK’s green energy output, but some past projects have received criticism for being eyesores.

New wind turbines tend to be much taller than past models. One wind farm in Scotland recently replaced 1990s era 50-metre tall turbines with ones that were 200 metres in height.

Labour frontbenchers are looking at offering incentives to communities to back nearby energy projects, such as cash payouts, energy bill discounts or investment in local groups.

Ed Miliband, Labour’s shadow climate change secretary, will publicly signal his interest in incentive schemes on Wednesday at an event hosted by the Conservative think tank Onward.

A Conservative Party spokesman said: “Decisions on onshore wind should be for local people and new developments must have the support of local communities.

“We recently consulted on improving the rewards and benefits offered to communities which back onshore wind farms but Keir Starmer wants to discard all of that and impose thousands of turbines on areas where people don’t want them.”
Energy bill crisis

Ed Miliband said: “Opposing cheap, clean power for our country has left us at the mercy of fossil dictators like Putin which has given us the worst energy bills crisis in memory.

“Labour would end the ban by bringing onshore wind into line with other local infrastructure so the British people can reap the benefits of cheaper power and we would ensure direct benefits for the communities that host clean power.”

Labour has estimated that the effective onshore wind ban in England has added £180 onto annual household energy bills, given how much wind power would have increased without one.

The wind power target is part of Sir Keir’s push to make the UK a “clean energy superpower”, named earlier this year as one of his five central drives for government.

A document detailing his plans if Labour wins the next general election included aiming for a “cheaper, zero carbon electricity system by 2030”, arguing the lack of progress has kept household bills high.

Specific targets were announced to hit that ambition, including quadrupling offshore wind power, tripling solar power and backing new nuclear modular reactors.
Effective wind farm ban

Successive Conservative governments have long had in place an effective ban on new onshore wind farms in England, with planning rules so tight that any local objection can effectively block a project.

On taking office, Rishi Sunak said he would block new windfarms, reversing plans by Liz Truss to make onshore turbines easier to build. But he was forced to backdown by Tory rebels and in December announced a consultation on loosening the restrictions that effectively ban new projects.

Boris Johnson had been preparing to unveil a similar expansion in onshore wind as the one that Sir Keir is proposing in his energy security strategy last year, but he backed off at the last minute.

The vast majority of current onshore wind turbine projects seeking permission are in Scotland, Wales and Northern Ireland, rather than England, due to windier conditions and looser planning rules.

James Robottom, RenewableUK’s head of onshore wind, said: “Onshore wind is one of the UK’s cheapest sources of electricity and we can build it much faster than other power sources.

“So at a time when we need to strengthen Britain’s energy security as a matter of urgency and protect billpayers against volatile international gas prices, we should be accelerating the roll-out of projects in areas where they have community support.”
As asylum-seekers struggle while waiting for work permits, Chicago businesses can’t fill jobs










Armando L. Sanchez/Chicago Tribune/TNS

Laura Rodríguez Presa, Talia Soglin, Nell Salzman, Chicago Tribune
Sun, July 16, 2023 at 4:00 AM MDT·11 min read

Huberth Espinoza, 65, sat on a bench outside the 5th District police station in Pullman on a Wednesday in late June, waiting to be picked up for work.

An asylum-seeker from Venezuela, Espinoza said he came to Chicago to work but could not immediately get a job permit. So he worked for about two weeks for a man who would take him and other migrants to do odd jobs — construction, painting and yardwork — but he had not been picked up or paid in a week.

Espinoza said he was owed about $600.

“He told us he’d be back at 9 a.m., but he never came. We don’t know if he’s going to pay us,” he told the Tribune.

For most migrants, finding work is volatile and sometimes dangerous because they lack work authorization permits. And while many migrants work under the table, leaving them vulnerable to exploitation, Illinois business owners say they have open jobs they can’t fill. Business leaders, along with Gov. J.B. Pritzker and other political leaders, have urged the federal government to expedite the process.

Last month, more than 100 employers and business group leaders from more than a dozen states, including Illinois, signed an open letter coordinated by the American Business Immigration Coalition asking the White House to allow states to sponsor work permits for new migrants and longtime undocumented workers.

Signatories include leaders of the Chicagoland Chamber of Commerce, the Illinois Restaurant Association and the Illinois Manufacturers’ Association.

On Friday, U.S. Rep. Jesús “Chuy” García began circulating a letter urging President Joe Biden to provide and expedite work permits to both new migrants and long-term contributing immigrant workers — including DACA-eligible, farmworkers and essential workers — as “one of the more sensible solutions, which are key to addressing America’s labor shortages and lowering inflation.”

“The solution to labor shortages is right here at hand,” he said. “In addition to that, it helps to address the cost of migrants and providing them with food and shelter because if they can gainfully work with authorization, then we won’t be scrambling to find funding for New York, Chicago and LA, or other cities, because it’s having a real impact on those budgets.”

In a statement, a spokesperson for Pritzker said the governor had met with White House officials “urging them to expedite work authorizations so that those who wish to live and work in Illinois can do so with dignity and respect.”

More than 10,000 asylum-seekers, mostly from Venezuela, have arrived in Chicago since August, when Texas Gov. Greg Abbott began busing refugees to cities led by Democrats. Many migrants are living in harsh conditions in city-run shelters or police stations; the Chicago Police Department said earlier this month it was investigating alleged sexual misconduct by at least one officer against a migrant or migrants, potentially including a minor, housed at a West Side police station.

Many migrants have left the shelters to find work and a place to live, even if it could affect their chances of getting asylum, or if the pay is low and the job conditions are poor, Kalman Resnick, an immigration lawyer, said during a panel with the Neighborhood Building Owners Alliance on how the real estate industry can help the new arrivals.

The timeline to file for asylum and subsequent job authorization depends on each migrant’s case and several factors including their way of entry to the U.S. and what policies were in place at the time, said Katherine Greenslade, director of the Resurrection Project’s legal clinic, a nonprofit that provides services for migrants. “It’s complex and lengthy; that’s why we recommend legal counsel,” she said.

In most cases, asylum-seekers cannot apply for permits to work legally in the U.S. until five months after they’ve submitted their asylum applications, something many are not able to do until they’ve already been in the country for months.

“Many of them are in shelters or in various unstable housing situations where getting a legal screening is just not the first or even the fifth thing on their mind,” said Megan Davis, the director of legal services at Erie Neighborhood House, a nonprofit that provides legal aid and other help to migrants.

It can take more than six months, on average, for a person to receive a work permit after they file an application, Greenslade said.

The backlog of applications at U.S. Citizenship and Immigration Services has slowed processing times even further, meaning some applicants for work permits must wait up to 15 months from the time they apply, according to García’s letter.

In the meantime, many migrants work under the table. Their work can be precarious, leaving them with unpredictable schedules, earnings and at higher risks of exploitation, wage theft and abuse. And working illegally, especially if they do so by using fake documents or documents that belong to U.S. citizens, can ultimately have adverse impacts on migrants’ immigration cases, legal aid attorneys said.

In Venezuela, 30-year-old Patricia Moyeja was four months away from getting a degree in nursing when she came to the United States. Twenty-three-year-old Julianna Ovalles was studying to be a police officer, and her sister Alexa, 22, was studying business management.

The women, who now live in city-run shelters, waited for work in late June in the parking lot of a Home Depot in the Chatham neighborhood, where hundreds of people were looking for jobs.

“We’ve been coming here for a week. We are looking for jobs cleaning houses, painting, whatever we can find,” said the younger Ovalles sister.

The job search would be easier if she had a work permit, said her older sister, Julianna. For now all they can do is wait and hope for the best, she said. The women said they make $120 to $150 a day if they’re lucky.

“We are good, we’re safe here. I like the city of Chicago, but we need more opportunities to work. We came here to work,” she said.

Day laboring has become a common way for migrants in Chicago to find work. Like the two sisters, many go stand by hardware stores, waiting to be approached and offered a job. They work as contractors and get paid in cash, typically by the day.

Even migrants who have college educations or have worked in skilled professions including accounting, teaching, nursing or the law have to take on precarious jobs that in the long run won’t allow them the opportunity to learn English, said Laarni Livings, a head volunteer with a network of volunteers in the South Loop area.

Legal aid workers in Chicago said they believed very few of the new asylum-seekers have received work permits.

The Resurrection Project has assisted a “handful” of new arrivals who are far enough along in the legal process to apply for work permits, but most of their applications are still pending, Greenslade said. Only one asylum-seeker whom the group has worked with has received a work permit; that person was able to submit their asylum application last fall, she said.

At Centro Romero, an organization that provides social services for the immigrant community, the legal department has screened over 2,000 new arrivals since last fall, said Diego F. Samayoa, associate director. Of those, fewer than 5% have been approved so far, he said, adding that they are concerned many applicants may be denied because their parole has expired.

Most asylum-seekers are paroled into the country, which means they are allowed in temporarily to process their asylum case. U.S. Citizenship and Immigration Services could, at its discretion, grant a parolee temporary employment authorization, if it is not inconsistent with the purpose and duration of their parole.

That, however, is rare, Greenslade said. Most people paroled in are given a year or just a few months in the country, so they won’t get the permit on time, or if it arrives, it’ll be expired.

When a mother from Venezuela, who declined to give her name, arrived in the Chicago area last September, she sent out her application for employment authorization with the help of Centro Romero. But her parole ended at the end of November, which means that even if she gets approval from USCIS, the permit could be expired by the time it arrives.

Most of the asylum-seekers in shelters may not have even started the process, as they wait to be connected with legal counsel, Greenslade said. But the number of migrants in need of legal services surpasses existing nonprofit legal capacity, and most cannot pay for a private attorney, she said.

But as migrants wait for work permits, Chicago businesses want to hire them.

“Everybody’s short on workers right now,” said Brad Tietz, vice president of the Chicagoland Chamber of Commerce. Migrants looking for work, he said, would be a welcome “pool of talent” to enter the area workforce.

There are upward of 1,800 open hotel jobs in the Chicago area, according to Indeed.com. The hotel industry, which has struggled to fill positions after losing workers during the pandemic, has lobbied in Washington for a bill that would shorten the time migrants must wait for work permit eligibility to one month after they apply for asylum.

Michael Jacobson, president of the Illinois Hotel & Lodging Association, said the labor shortage is present across the hotel industry, but the need is particularly acute for culinary workers.

“When there’s a banquet for 1,000 people at one of our big hotels downtown, just imagine how many people are needed to service that meal,” he said. Most city hotels now pay over $23 an hour as a starting wage, Jacobson said.

“There are people who are living in hotels who have applied for asylum and they are not allowed to work in the hotel,” said Chirag Shah, executive vice president of the national hotel association. “In a lot of circumstances, the hotels have open jobs.”

Sam Sanchez, who owns Chicago bars and restaurants including Old Crow Smokehouse and Moe’s Cantina, said he exchanged phone numbers with migrants hoping to find work when he volunteered at a food distribution in the spring.

Sanchez, who also owns a construction company, said some migrants who were skilled plaster finishers pulled up images of their work to show him on their phones.

“I got their number, I can’t wait,” Sanchez said.

The restaurant industry, like the hotel industry, took a beating during the pandemic and has struggled to fill jobs even as consumer demand has bounced back.

“A lot of people went to work construction, and they never came back,” Sanchez said. “People just moved on.”

Sanchez, who is also chair of governmental relations for the Illinois Restaurant Association, referenced the funding Chicago has allocated to help migrants. In May, the City Council approved $51 million for spending on migrant care, which mostly covered the expenses of agencies contracted to run city-run shelters, according to Mayor Brandon Johnson’s deputy chief of staff, Cristina Pacione-Zayas.

“If we would allow them to have work visas, the city of Chicago would not be spending that kind of money,” Sanchez said. “Allowing them to come in and not allowing them to work becomes a burden on the city, the state and the federal government. They don’t want to be a burden. They want to work. And we need workforce.”

Brayan Lozano, an asylum-seeker from Colombia, echoes the leaders’ plea. He’s been in the city for nearly three months. With the help of volunteers, he has found an apartment to rent, which he pays for with money he earns as a self-employed contractor.

“We come here to work, we want to contribute to society at the same time that we help our families,” Lozano said in Spanish.

“We don’t want to be a burden to the government,” he said.

Shelly Ruzicka, a workers’ rights advocate with Arise Chicago, said it is important for migrants to know they have the same rights as any other workers, regardless of their immigration status, whether working in factories, for companies or as day laborers.

Ruzicka urges migrants to keep written documents of the work agreement, including pay, type of labor and work. But even after submitting a complaint, getting their money back from wage theft does not happen immediately, if at all.

In his native country, Lozano worked as a social worker and human rights organizer, he said, which is why he sought asylum. In Chicago, he is also a key member of the volunteer network in the South Loop, looking out for fellow migrants and connecting them with resources.

He said he often communicates the possible negative consequences of working illegally, but also watches after those who take a job. Most share their locations with him, and he accompanies them to inspect the space. If he suspects exploitation or wage theft, he informs the volunteers and asks for guidance.

When the volunteer group learns of someone experiencing wage theft, they first talk to the employer and attempt to get their money. Other times, the only thing they can do is warn other migrants of the employers that could potentially exploit them.

Unfortunately, Livings said, “there is little to nothing we can do for them.”
WAGE THEFT
Hamas unable to pay salaries in Gaza after Qatari aid delay, officials say





Sun, July 16, 2023 
By Nidal al-Mughrabi

GAZA (Reuters) - The Gaza Strip's Hamas rulers have been unable to pay salaries for 50,000 public sector workers, with officials in part blaming a delay in a monthly payroll grant from Qatar, a crucial aid donor to the impoverished Palestinian enclave.

The salary crisis has sparked an unusual amount of criticism on social media in Gaza, including by some of Hamas' own employees. A drop in tax revenue and a jump in spending has made the situation even more difficult.

Most of Gaza's 2.3 million residents live in poverty, and the economy is dependent on foreign aid. Qatar has paid hundreds of millions of dollars since 2014 for construction projects. It currently pays $30 million per month in stipends for families, fuel for electricity, and to help pay public sector wages.

Hamas officials say no salary aid has been received since just over half of a $5-million grant to support the May payroll. The reason for the delay was not clear.

In Doha, Qatar’s International Media Office did not immediately respond to a request for comment.

"The government is going through a stifling and escalating financial crisis, with a continuous increase in the deficit month after month, which led to the delay of salaries this month," Awni Al-Basha, the Hamas-appointed deputy minister, told Hamas Aqsa radio.

"We are making significant efforts to pay the salaries, and we hope to do so at the end of this week," he said.

Monthly payroll costs Hamas 125 million shekels ($34.5 million) per month, said Basha.

On Sunday, Salama Marouf, chairman of the Hamas government media office, said there has also been an increase in spending, particularly for the ministry of health and repayment of bank debts. He called on Qatar to increase the salary grant to $7 million.

Gaza has been under an Israel-Egyptian blockade since 2007 when Hamas, which opposes peace with Israel, took control. Public sector employees have not received full salaries since 2013.

"With 60% (of salaries) we used to meet the basics of our needs at home. What happens when the salary is completely cut off?" said Mahmoud Al-Farra, an employee at the Hamas government media office. "This a big disappointment."

Some took to social media, questioning whether the crisis was authentic.

"Where are the taxes they collect and the grants that enter Gaza go?" one resident posted on Facebook.

(Additional reporting by Andrew Mills in Doha; Reporting and writing by Nidal Almughrabi; Editing by Emelia Sithole-Matarise)



How Tsingtao's IPO in Hong Kong turned on the tap for 30 years and US$1 trillion of Chinese offshore listings

South China Morning Post
Sat, July 15, 2023

Three decades ago today, a Chinese brewery founded by German settlers offered an unusual toast on the trading floor of the Hong Kong stock exchange.

Instead of the typical flutes of champagne for cheering stock debuts, Tsingtao Brewery handed out glass mugs filled with its namesake beer for guests to celebrate its HK$889 million (US$114 million) initial public offering (IPO), the very first offshore share sale by a China-domiciled company.

Hong Kong had never seen anything like this. The trading floor turned into "bedlam," as dozens of journalists, photographers and TV camera crew jostled with up to 100 regulators, company executives and government officials in a "melee," according to the Post's 1993 report on Tsingtao's debut.

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The IPO was a success, with investors outbidding the number of available shares by more than 110 times, lifting Tsingtao's stock price by 29 per cent on debut day. The triumph paved the way for China's subsequent financial reforms in the following decades, using Hong Kong as the stepping stone in each critical step of the capital market's growth.


Guests at the Hong Kong Stock Exchange after the successful listing of Tsingtao Brewery on July 15, 1993. Photo: SCMP alt=Guests at the Hong Kong Stock Exchange after the successful listing of Tsingtao Brewery on July 15, 1993. Photo: SCMP>

Tsingtao's IPO "reflected the rapid development of the mainland's economy over the past 30 years, and the thriving growth of Hong Kong's financial market," said Kenny Ng Lai-yin, a strategist at Everbright Securities International.

Designated with the stock code 168 - an auspicious number that rhymes with the homonyms for "continuous prosperity" - Tsingtao has done well in Hong Kong. The stock has risen 24-fold since its debut, from HK$2.80 to HK$71.25 on Friday, turning the brewery into a HK$127.76 billion behemoth.

If each of the dividends Tsingtao has paid out since 1993 were reinvested in the stock, the total return would be 42 times, according to Bloomberg's analytics. Put another way: HK$5,600 paid in 1993 for one board lot (2,000 shares) of Tsingtao would overflow to HK$117,440.

Tsingtao Brewery's listing on the cover of Business Post on Friday, July 16th, 1993. alt=Tsingtao Brewery's listing on the cover of Business Post on Friday, July 16th, 1993.>

It is not just Tsingtao and its investors that have had cause to raise a glass. Regulators, investment banks, industry professionals and the local markets have all benefited from so-called H-share listings over the past 30 years. Since Tsingtao's IPO, 389 such listings have raised a total of HK$2.08 trillion.

"H shares" originally referred to the Hong Kong-listed shares of mainland Chinese companies owned or backed by the state, though today it is often used to refer to any mainland firm trading on the city's stock exchange. The term "red chip" was used to denote overseas-incorporated firms with mainland-backed parent companies.

When red chips and private enterprises are included in the mix, more than 1,400 Chinese companies have raised HK$8.2 trillion in Hong Kong in the last 30 years, accounting for about two thirds of the total. They represent 80 per cent of market capitalisation and turnover today, according to stock exchange data.

Charles Lee Yeh-kwong, who hosted Tsingtao's listing ceremony in his capacity as stock exchange chairman at the time, was the mastermind who talked to then-Premier Zhu Rongji to raise the idea of Chinese companies listing their shares in Hong Kong in the early 1990s.

"It was Premier Zhu Rongji who chose the name H shares to represent Hong Kong," Lee told the Post. "We submitted a list of proposed names to him including W shares for world shares, and I shares for international shares. Premier Zhu chose H shares, as he considered that the best name to represent Hong Kong. And it is."


Workers stick labels on bottles of Tsingtao at a brewery in the eastern Chinese city of Qingdao, in August 2000. Photo: AFP alt=Workers stick labels on bottles of Tsingtao at a brewery in the eastern Chinese city of Qingdao, in August 2000. Photo: AFP>

Without H-share listings, Hong Kong would not have attained its current status as an international financial centre, Lee said in a briefing on Friday on the eve of the 30th anniversary of Tsingtao's listing.

"Hong Kong is among the top four IPO markets in the world in the past 14 years, mainly due to the listings of mainland companies," he said, adding that credit is due to Premier Zhu for insisting that H shares adopt international standards of disclosure and governance. "The listing reform forced all mainland firms to improve their management and disclosure. It is vital to the development of the Chinese economy."

Laura Cha Shih May-lung, chairwoman of Hong Kong Exchanges and Clearing, was among the regulators to usher in H-share listing when she was with the Securities and Futures Commission.

"H shares fuelled the growth aspirations of ambitious Chinese companies, helping them to raise funds and elevating their role and visibility on the international stage," Cha told the Post.

"They also cemented Hong Kong as the go-to market for international capital seeking opportunities in the region, allowing investors around the world to tap the incredible China growth story of the last three decades. I am honoured to have played a part in this journey."

Tsingtao Brewery was established by German and British merchants in Qingdao, Shandong province, in 1903 as Germania-Brauerei Tsingtao - when the penultimate emperor Guangxu was still on the throne.

Its former company secretary, Lucy Yuen Lu, who handled the listing, said the brewer's reputation as a well-known international brand helped it to become the first to list in Hong Kong.

"The Hong Kong and mainland regulators wanted the first China company listing in Hong Kong to be successful. And it was. We had a 110-times oversubscription," she said in an interview with the Post in 2007.

Teresa Ko, Hong Kong and China chairman of law firm Freshfields Bruckhaus Deringer, has been involved in many H-share listings. She recalled the challenges of the early days.

"Many mainland executives had no concept of due diligence but they were very helpful with our verification exercise and lined themselves up with supporting documents to show to us," she said.

"Back in those days, there were no mobile phones - only one line that could make international calls on a black telephone locked in a box . The box was in a hotel room which was locked every night at 9pm and we had to queue to make a phone call."

This article originally appeared in the South China Morning Post (SCMP), the most authoritative voice reporting on China and Asia for more than a century. For more SCMP stories, please explore the SCMP app or visit the SCMP's Facebook and Twitter pages. Copyright © 2023 South China Morning Post Publishers Ltd. All rights reserved.

Copyright (c) 2023. South China Morning Post Publishers Ltd. All rights reserved.