Category Archives: China aggression

Legislation to Regain US Control of Critical Minerals from China

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WASHINGTON, D.C. – U.S. Sen. Ted Cruz (R-Texas), member of the Senate Foreign Relations Committee, today introduced the Onshoring Rare Earths Act of 2020 or ORE Act, legislation to end U.S. dependence on China for rare earth elements and other critical minerals used to manufacture our defense technologies and high tech products by establishing a supply chain for these minerals in the U.S., including by requiring the U.S. Department of Defense (DOD) to source these minerals domestically.

Upon introducing the legislation, Sen. Cruz said:

“Our ability as a nation to manufacture defense technologies and support our military is dangerously dependent on our ability to access rare earth elements and critical minerals mined, refined, and manufactured almost exclusively in China. Much like the Chinese Communist Party has threatened to cut off the U.S. from life-saving medicines made in China, the Chinese Communist Party could also cut off our access to these materials, significantly threatening U.S. national security. The ORE Act will help ensure China never has that opportunity by establishing a rare earth elements and critical minerals supply chain in the U.S.”

*** Rare earth mineral deal inked by US and Australia — what ... photo

Noted by Forbes:

A whole slate of new bad behaviors by China’s repressive regime have been laid bare by the COVID-19 crisis. There were already plenty of complaints before the pandemic began, but the coronavirus seems to be supercharging the pressure on U.S. companies to reduce their Chinese sourcing. One of the biggest recent challenges in that regard has been China’s dominance in mining and processing critical rare earth minerals. These are vital building blocks for everything from smart phones, EV batteries and medical imaging machines to advanced defense weaponry, so our reliance on a less-than-friendly nation for our supply presents a huge political and economic risk. But right now China controls 90% of global rare earth production.

It’s amazing good fortune, then, that out in the barren scrub of Far West Texas 85 miles east of El Paso, an unassuming 1,250-tall mountain called Round Top holds the promise of making America largely self-sufficient in these critical minerals. The mountain contains five out of six light rare earths (such as neodymium), 10 out of 11 heavy rare earths (dysprosium, for example), and all five permanent magnet materials. What’s more, Round Top has large deposits of lithium, critical for batteries in EVs and power storage. More here.

See the U.S map here.

The global map is here.

According to the United States Geological Survey, as of 2018, China produced around 80% of world demand for rare earth metals (down from 95% in 2010). Their ores are rich in yttrium, lanthanum, and neodymium.

Since August of 2010, fears over Chinese dominance of crucial rare earth supplies have lingered as China restricted export quotas of the metals with no official explanation, immediately sparking debate over decentralization of world rare earth production.

Rare earth element mines, deposits, and occurrences photo

Great quantities of rare earth ores were found in California in 1949, and more are being sought throughout North America, but current mining is not significant enough to strategically control any portion of the global rare earths market (the Mountain Pass mine in California still has to ship its minerals to China to be processed).

Rare earths are traded on the NYSE in the form of exchange-traded funds (ETFs) that represent a basket of supplier and mining stocks, as opposed to trading in the metals themselves. This is due to their rarity and price, as well as their almost strictly industrial consumption. Rare earth metals are not considered a good physical investment like precious metals, which hold low-tech intrinsic value.

*** How did this happen?

In part:

Economically, the biggest changes happened in the 1990s and early 2000s, starting when the United States conferred permanent “Most Favored Nation” status on China.

These decisions proved disastrous.

“Prior to that, we could only give China [Most Favored Nation status] one year at a time because we had a law that said you can’t give a communist country permanent [Most Favored Nation] trade treatment,” said Mulloy. “Each year, if China wasn’t behaving properly, we could take it away.”

“It was a terrible mistake to give it up because we were unable to manage or govern the Chinese after that,” agreed Halper.

The next shoe to drop came with China’s inclusion in the World Trade Organization.

The U.S. only approved China’s entry on the condition that we could continue to punish what we considered unfair trade practices by China or anyone else. But when that position was challenged within the World Trade Organization, we agreed not to penalize anyone unless we won a dispute at the World Trade Organization.

We handcuffed ourselves and we’ve been handcuffed ever since. What was once an $80 billion trade deficit is now at $4.5 trillion. It should have been foreseeable, but Wall Street and multinational corporations, which foresaw big returns from China, lobbied Congress hard to get these things approved.

 

Trump Halts Federal Retirement Accounts Investing in China

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In February of 2020, this site published an article describing the California Public Pension Fund’s investment in Chinese stocks could lead to national security risks and even spying. The value of the fund is $3.1 Billion. Meanwhile, Speaker Pelosi refuses to approve House committee hearings on anything related to China….

The Chinese Communist Party has both different accounting rules for corporations reporting financial data and or refuses to release any accounting data. How and why Chinese companies are listed on U.S. Stock Exchanges in the first place is an unanswered question and one that is likely being reviewed now by the Securities and Exchange Commission along with several other agencies due to a very contested relationship between the U.S. and China due to the virus outbreak.

Please find linked a complete list of all Chinese companies listed on the NASDAQ, New York Stock Exchange, and NYSE American, the three largest U.S. exchanges. As of February 25, 2019, there were 156 Chinese companies listed on these U.S. exchanges with a total market capitalization of $1.2 trillion.

An asterisk next to the stock symbol indicates a company with at least 30 percent state ownership. As of February 25, 2019, there were at least 11 Chinese state-owned companies listed on the three major U.S. exchanges.

A highlighted row indicates a company that was not included on the Public Company Accounting Oversight Board’s (PCAOB) September 2018 review of non-U.S. companies where the PCAOB is denied access to conduct inspections.

So as an interesting measure to begin measures against China, President Trump issued a letter to the Labor Secretary to halt investments in Federal Savings Plans in Chinese equities.

 

 

 

 

 

 

 

 

 

 

A second letter was sent by the Secretary of Labor to the Thrift Investment Board and that is found here.

Rather than the normal contested and really stupid questions that the media asks during White House daily briefings, there are some real questions that should be asked and they include all things China.

For some context on how China is all over the United States, consider the information below.

For many Chinese companies, their dreams of listing in New York are only on hold.

Some high-profile Chinese stocks listed in the U.S. such as Luckin Coffee, the self-proclaimed Starbucks rival in China, have been rocked following allegations by short-sellers that these companies faked their numbers, accusations that in some cases are now being internally investigated.

The reports are the latest challenge for Chinese initial public offerings in New York, on top of U.S.-China trade tensions and the impact of the coronavirus.

But some in the cross-border IPO business say the listing plans are just delayed, not canceled.

“I do know Chinese companies that are planning to list this summer as soon as after Labor Day,” said Jim Fields, a Shenzhen-based producer of videos for Chinese companies presenting to potential IPO investors in the U.S. China celebrates the holiday on May 1.

Fields noted the new IPO timeframe is a delay of about one to three months.

Last year, 25 Chinese issuers went public in the U.S., in addition to three special-purpose acquisition companies — companies that raise money to buy another — according to Renaissance Capital, which sells IPO-focused exchange-traded funds. That’s down from 32 Chinese listings in 2018, which was double that of the prior year and the most since 2010.

Despite geopolitical and epidemiological challenges in the first three months of this year, seven Chinese companies and three special-purpose acquisition companies went public in the U.S., according to Matthew Kennedy, IPO market strategist at Renaissance Capital.

“We suspect several more had planned to list, but delayed their offerings amid the Covid-19 outbreak,” Kennedy said in an email. “As we noted in our 1Q20 Review, China appears to be the first country emerging from the pandemic, so Chinese companies may also be first to return to the IPO market. However, these financial scandals do reputational damage to Chinese issuers broadly.”

On April 2, Luckin Coffee announced an internal investigation found the chief operating officer fabricated sales by about 2.2 billion yuan ($314 million) from the second to fourth quarter of last year. Shares have plunged more than 80% since the latest disclosure this month, and have been halted for pending news for roughly the last week.

About two months ago, investment firm Muddy Waters said it was shorting, or betting on a decline in the price of the stock, based on an anonymous report that alleged the coffee company fabricated financial and operating numbers beginning in the third quarter of last year. Luckin said at the time the allegations were “misleading and false.”

The company did not respond to a request for comment. Representatives from Nasdaq and the New York Stock Exchange were not available for interviews for this story.

Other high-profile U.S.-listed stocks have come under scrutiny in the last several days.

Shares of video streaming site iQiyi, which is majority-owned by search giant Baidu, dipped last week after a report by Wolfpack Research alleged the video company inflated revenue by about $1 billion to $2 billion. Muddy Waters said it assisted Wolfpack with the report and is also betting against iQiyi’s stock. The Chinese company said in a statement it believed the report contained “errors” and was “misleading.”

China's hottest companies - Tal Education (8) - CNNMoney

Tutoring company TAL Education announced last week it suspected an employee of inflating sales for its “Light Class” product, which accounts for about 3% or 4% of the company’s total estimated revenues. TAL said the employee has been taken into custody by the local police. More here.

When the Roads Closed in Wuhan Last October

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This is what global intelligence agencies are searching for answers. It was determined that the roads around the Wuhan Laboratory in question were closed determined by the lack of cell phone activity. How is that possible? There are in fact several telecom/research firms around the globe that monitor traffic and for two weeks in October there was almost no activity. Deeper investigations are underway.

In part from an NBC News article published May 8, 2020: WASHINGTON — A private analysis of cellphone location data purports to show that a high-security Wuhan laboratory studying coronaviruses shut down in October, three sources briefed on the matter told NBC News. U.S. spy agencies are reviewing the document, but intelligence analysts examined and couldn’t confirm a similar theory previously, two senior officials say.

The report — obtained by the London-based NBC News Verification Unit — says there was no cellphone activity in a high-security portion of the Wuhan Institute of Virology from Oct. 7 through Oct. 24, 2019, and that there may have been a “hazardous event” sometime between Oct. 6 and Oct. 11. Because the Wuhan lab is a high-security facility in an adversary nation studying dangerous pathogens, it is a collection target for several U.S. intelligence agencies, multiple officials told NBC News. Data gathered would include mobile phone signals, communications intercepts and overhead satellite imagery, the officials said.

Analysts are now examining what was collected in October and November for clues suggesting any anomalies at the lab, officials said. Congressional intelligence committees have also been given the document, and Sen. Marco Rubio, R.-Fla., appeared to be alluding to it or a similar report in a tweet on Wednesday.

“Would be interesting if someone analyzed commercial telemetry data at & near Wuhan lab from Oct-Dec 2019,” Rubio tweeted. “If it shows dramatic drop off in activity compared to previous 18 months it would be a strong indication of an incident at lab & of when it happened.”
As noted also within the article, nothing yet is conclusive.

***

Interesting to note however, it seems that another shutdown in Wuhan happened in January if those reports are found accurate regarding the empty roads and void of cell phone traffic.

From MIT Technology in part: On January 22, China took the extraordinary step of shutting down all transportation in the city of Wuhan, where the coronavirus outbreak first began. The measure effectively put 11 million people under quarantine, which is still ongoing as public health officials work to treat individuals who have fallen ill and stop the spread of the virus. As satellite images shared with MIT Technology Review by Planet Labs and Maxar Technologies show, the metropolis has ground to a halt. Bridges and roads are empty. The city’s train stations are deserted. Wuhan’s normally busy airport has completely ceased operations.

Photo Credits: Top photo Before The Wuhan Train Station surrounded by an enormous amount of traffic on the roads. Bottom photo After Traffic around the station evaporated following the quarantine. Trains have not been running since its implementation on January 22. PLANET LABS

Also in January of 2020:

The World Health Organisation has denied a media report that claimed that Chinese President Xi Jinping personally asked WHO Director-General Tedros Adhanom to ‘delay a global warning’ regarding the coronavirus outbreak during a phone call in January.

The German news outlet, Der Spiegel, published a report citing intelligence from the country’s Federal Intelligence Service, known as the ‘Bundesnachrichtendienst’ (BND), that China “urged” the WHO to “delay a global warning” about the coronavirus outbreak. As per the report, the intelligence found that Xi and Tedros spoke by phone on January 21 during which the Chinese President “urged” the WHO chief to “hold back information about a human-to-human transmission and to delay a pandemic warning.” “The BND estimates that China’s information policy lost four to six weeks to fight the virus worldwide,” the report further added.

The WHO noted on Saturday that “China confirmed human-to-human transmission of the novel coronavirus on Jan. 20.” The WHO publicly declared on Jan. 22 that “data collected … suggests that human-to-human transmission is taking place in Wuhan.” The organisation declared coronavirus a pandemic in March. 

China's Silk Road and global health - The Lancet photo

If a country is not part of the China Silk Road Initiative then cooperation of any sort is limited as noted from their own website –>

China and International Community Work

Together to Build Health Silk Road

　　As the COVID-19 pandemic spreads rapidly across the globe, China has made tremendous contributions to the international cooperation on combating the virus. China has actively conducted cooperation with the participating countries for the Belt and Road Initiative and international organizations, through mutual support and assistance as well as solidarity, to tide over the difficulties, in joint efforts to build the Health Silk Road and promote the global community of shared future for mankind.

As of March 31st, Chinese government has provided 120 countries and 4 international organizations with aid supplies including medical masks, N95 respirators, protective gowns, NAT kits and ventilators. Chinese local authorities have donated medical supplies to 50 countries through international sister-city channel. Chinese enterprises have donated medical supplies to over 100 countries and international organizations. Up to April 7th, China has sent 11 batches of medical specialist teams to 9 countries comprised of Italy, Serbia, Cambodia, Pakistan, Iran, Iraq, Laos, Venezuela, and the Philippines. China has unreservedly shared the anti-contagion information with the international community, shared the pandemic prevention and control, treatment and other technology documents with over 100 countries and 10 international and regional organizations, established the online knowledge center for the pandemic and the expert tank for international cooperation, and held more than 40 conferences on technology exchanges via remote video with over 100 countries and regions. China has donated 20 million USD to WHO in support of anti-pandemic international cooperation organized by WHO.

***

According to China’s “One Belt, One Road” initiative, the chance that exotic pathogens could be brought into the country has dramatically increased (7). Our new BSL-4 facility will play an integral role in preventing and controlling highly pathogenic microbes. To safely operate this facility, we designed a training program that ensures all personnel meet the institutional, national, and international standards for working in maximum-containment laboratories.

In preparation for the opening of the Wuhan BSL-4, we engaged in short- and long-term personnel exchanges focused on biosafety training through international cooperation (8). Four staff members visited the P4 Jean Mérieux-Inserm Laboratory in Lyon, France; 2 visited Galveston National Laboratory, The University of Texas Medical Branch at Galveston, Texas, USA; and 1 visited the Australian Animal Health Laboratory, Geelong, Victoria, Australia for training and certification on BSL-4 laboratory operations, maintenance, and scientific or support work. These members are now the main instructors for our BSL-4 laboratory user training program.

Rather than being standardized, our training is specialized to fundamentally cover different BSL-4 users, including administrators and management, biosafety professionals, operations and maintenance staff, and researchers and technicians who currently work in the laboratory. The theoretical coursework is designed to help trainees understand the features of the BSL-4 laboratory and prepares them to enter the laboratory environment. We constructed the first BSL-4 training laboratory in China with the sole purpose of providing hands-on practicum for staff. This laboratory gives staff a safe environment in which they can learn all routine and emergency procedures of high-containment laboratories without the risk of exposure to dangerous pathogens. In addition, we developed an online training management software tool to support the training program and track participants’ progress towards certification.

We plan to incorporate additional user training, such as training for temporary or visiting workers from outside the institution who currently do not have access to our laboratory. In addition, we are planning specific training designed for emergency first responders, such as security staff at the institute and the city’s police and fire departments. Because these groups are tasked with responding to incidents, such as terrorism or fires, they need to be familiar with the complex design and mechanical and engineering features of the BSL-4 facility. Our expanded training will orient them to the laboratory and its operating systems so they can respond as safely as possible to any emergency at our facility.

Our rigorous training program will reduce the risk of harm or exposure to laboratory staff working with highly pathogenic agents. We encouraged all laboratory users to provide feedback and thoughts regarding how to improve and further advance our training program. China intends to build 5–7 high-containment laboratories by 2025 (9). Our BSL-4 laboratory worker training system is the starting point for developing national norms for high-containment laboratory training and preparing qualified, maximum biocontainment laboratory scientists and facility operations specialists. More detail here.

Before you go…here is an interesting item on China tracking cell phone users and how that data is used. Welcome to the Chinese Communist Party….check yourself at the door.

BEIJING/HONG KONG (Reuters) – When the man from Hangzhou returned home from a business trip, the local police got in touch. They had tracked his car by his license plate in nearby Wenzhou, which has had a spate of coronavirus cases despite being far from the epicenter of the outbreak. Stay indoors for two weeks, they requested.

After around 12 days, he was bored and went out early. This time, not only did the police contact him, so did his boss. He had been spotted near Hangzhou’s West Lake by a camera with facial recognition technology, and the authorities had alerted his company as a warning.

“I was a bit shocked by the ability and efficiency of the mass surveillance network. They can basically trace our movements with the AI technology and big data at any time and any place,” said the man, who asked not to be identified for fear of repercussions.

Chinese have long been aware that they are tracked by the world’s most sophisticated system of electronic surveillance. The coronavirus emergency has brought some of that technology out of the shadows, providing the authorities with a justification for sweeping methods of high tech social control.

Artificial intelligence and security camera companies boast that their systems can scan the streets for people with even low-grade fevers, recognize their faces even if they are wearing masks and report them to the authorities.

If a coronavirus patient boards a train, the railway’s “real name” system can provide a list of people sitting nearby.

Mobile phone apps can tell users if they have been on a flight or a train with a known coronavirus carrier, and maps can show them locations of buildings where infected patients live.

Although there has been some anonymous grumbling on social media, for now Chinese citizens seem to be accepting the extra intrusion, or even embracing it, as a means to combat the health emergency.

“In the circumstances, individuals are likely to consider this to be reasonable even if they are not specifically informed about it,” said Carolyn Bigg, partner at law firm DLA Piper in Hong Kong.

NEW TECHNOLOGIES

Telecoms companies have long quietly tracked the movements of their users. China Mobile promoted this as a service this week, sending text messages to Beijing residents telling them they can check where they have been over the past 30 days. It did not explain why users might need this, but it could be useful if they are questioned by the authorities or their employers about their travel.

“In the era of big data and internet, the flow of each person can be clearly seen. So we are different from the SARS time now,” epidemiologist Li Lanjuan said in an interview with China’s state broadcaster CCTV last week, comparing the outbreak to a virus that killed 800 people in 2003.

“With such new technologies, we should make full use of them to find the source of infection and contain the source of infection.”

The industry ministry sent a notice to China’s AI companies and research institutes this week calling on them to help fight the outbreak. Companies have responded with a flurry of announcements touting the capabilities of their technology.

Facial recognition firm Megvii said on Tuesday it had developed a new way to spot and identify people with fevers, with support from the industry and science ministries. Its new “AI temperature measurement system”, which detects temperature with thermal cameras and uses body and facial data to identify individuals, is already being tested in a Beijing district.

SenseTime, another leading AI firm, said it has built a similar system to be used at building entrances, which can identify people wearing masks, overcoming a weakness of earlier technology. Surveillance camera firm Zhejiang Dahua says it can detect fevers with infrared cameras to an accuracy within 0.3ºC.

In an interview with state news agency Xinhua, Zhu Jiansheng of the China Academy of Railway Sciences explained how technology can help the authorities find people who might be exposed to a confirmed or suspected coronavirus case on a train.

“We will retrieve relevant information about the passenger, including the train number, carriage number and information on passengers who were close to the person, such as people sitting three rows of seats before and after the person,” he said.

“We will extract the information and then provide it to relevant epidemic prevention departments.”

5 Eyes Has Memo/Evidence on China Virus Deception

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Primer: Secretary of State, Mike Pompeo is correct, China is using the same fake/false propaganda tactics well known and exploited for decades by Russia’s FSB. Further, while Beijing refuses to allow foreign (read U.S.) scientists into the Wuhan Laboratory for review/investigation, Beijing is also refusing WHO scientists as well.

China sends thousands of medical staff to Wuhan as ...

***

FNC: A research dossier compiled by the so-called “Five Eyes” intelligence alliance states that China intentionally hid or destroyed evidence of the coronavirus outbreak, resulting in the loss of tens of thousands of lives around the world.

The 15-page document from the intelligence agencies of the U.S., Canada, the U.K., Australia and New Zealand, was obtained by Australia’s Daily Telegraph newspaper and states that China’s secrecy amounted to an “assault on international transparency.”

The dossier touches on themes that have been discussed in media reports about the outbreak of the virus, including initial denial that the virus could be transmitted between humans, the silencing or “disappearing” of doctors who tried to speak up, the destruction of evidence in laboratories and refusal to provide live samples to international scientists working on a vaccine.

Specifically, the file notes that China began censoring news of the virus on search engines beginning Dec. 31, deleting terms including “SARS variation, “Wuhan Seafood market” and “Wuhan Unknown Pneumonia.”

Three days later, on Jan. 3, China’s National Health Commission, ordered virus samples to be either moved to designated testing facilities or destroyed, while simultaneously enforcing a “no-publication order” related to the disease.

Perhaps most damningly, the dossier states that Chinese authorities denied that the virus could be spread between humans until Jan. 20, “despite evidence of human-human transmission from early December.”

The dossier is similarly unsparing about the World Health Organization (WHO), stating that it toed the Chinese line about human-to-human transmission despite the fact that”officials in Taiwan raised concerns as early as December 31, as did experts in Hong Kong on January 4.”

As of Friday night, the WHO’s official Twitter account still featured a tweet from Jan. 14 that stated: “Preliminary investigations conducted by the Chinese authorities have found no clear evidence of human-to-human transmission of the novel #coronavirus (2019-nCoV) identified in #Wuhan, #China.”

At the same time, the dossier states that throughout February, “Beijing [pressed] the US [sic], Italy, India, Australia, Southeast Asian neighbours and others not to protect themselves via travel restrictions, even as [China] imposes severe restrictions at home.”

At the same time, the file states: “Millions of people [left] Wuhan after the outbreak and before Beijing lock[ed] down the city on January 23.”

The dossier continues the litany of Chinese defensiveness, stating: “As EU [European Union] diplomats prepare a report on the pandemic, [China] successfully presses Brussels to strike language on [China] disinformation.”

Similarly, “As Australia calls for an independent inquiry into the pandemic, [China] threatens to cut off trade with Australia. [China] has likewise responded furiously to US [sic] calls for transparency.”

The Telegraph report does present one point of divergence between the allied governments, with Australia believing the virus most likely originated in the Wuhan wet market and putting the chances it accidentally leaked from a lab at “5 percent.”

By contrast, Fox News reported April 15 that U.S. intelligence officials are increasingly confident that coronavirus likely originated in a Wuhan lab as a consequence of China’s attempt to demonstrate that its efforts to identify and combat viruses are equal to or greater than the capabilities of the United States

President Trump said Thursday that he’s seen evidence suggesting the virus came from a lab after Fox News and others asked if he knew of anything that gave him confidence that the outbreak originated in the Wuhan Institute of Virology.

“Yes, I have,” he replied, “And, I think that the World Health Organization should be ashamed of themselves because they’re like the public relations agency for China.”

Multiple sources previously told Fox News that it is believed standards in Wuhan were disregarded before the virus leaked, prompting Beijing to initiate a cover-up. Sources also claimed the WHO was complicit from the beginning in helping China cover its tracks.

The WHO and China have denied any wrongdoing.

The Telegraph also reported that key figures at the Wuhan Institute of Virology previously worked or trained in Australian government labs where they conducted research on pathogens in live bats as part of an ongoing partnership with the Chinese Academy of Sciences.

According to the dossier, the team’s work at the Wuhan lab involved discovering samples of coronavirus within a cave in Yunnan province and synthesizing a bat-derived coronavirus that could not be cured.

***

KEY DATES IN COVID COVER-UP

November 9, 2015:

Wuhan Institute of Virology publish a study revealing they created a new virus in the lab from SARS-CoV.

December 6, 2019

Five days after a man linked to Wuhan’s seafood market presented pneumonia-like symptoms, his wife contracts it, suggesting human to human transmission.

December 27

China’s health authorities told a novel disease, then affecting some 180 patients, was caused by a new coronavirus.

December 26-30

Evidence of new virus emerges from Wuhan patient data.

December 31

Chinese internet authorities begin censoring terms from social media such as Wuhan Unknown Pneumonia.

January 1, 2020

Eight Wuhan doctors who warned about new virus are detained and condemned.

January 3

China’s top health authority issues a gag order.

January 5

Wuhan Municipal Health Commission stops releasing daily updates on new cases. Continues until January 18.

January 10

PRC official Wang Guangfa says outbreak “under control” and mostly a “mild condition”.

January 12

Professor Zhang Yongzhen’s lab in Shanghai is closed by authorities for “rectification”, one day after it shares genomic sequence data with the world for the first time.

January 14

PRC National Health Commission chief Ma Xiaowei privately warns colleagues the virus is likely to develop into a major public health event.

January 24

Officials in Beijing prevent the Wuhan Institute of Virology from sharing sample isolates with the University of Texas.

February 6

China’s internet watchdog tightens controls on social media platforms.

February 9

Citizen-journalist and local businessman Fang Bin disappears.

April 17

Wuhan belatedly raises its official fatalities by 1290.

 

A Deeper Dive on the World Health Organization

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Hold on…it is gonna be a rough ride….President Trump must not only investigate but for sure suspend funding….the reasons go way beyond the recent scandalous headlines.

Given the tight relationship between Dr. Tedros Adhanom, the Director and the Chinese Communist Party, it is a certainty that WHO is in possession of the report noted below:

Chinese researchers initially pointed to the possibility of a lab accident in a study published in February on ResearchGate. “The killer coronavirus probably originated from a laboratory in Wuhan,” wrote researchers — although they also raised the possibility of natural transmission. “Safety level may need to be reinforced in high risk biohazardous laboratories,” continued Botao Xiao and Lei Xiao of Guangxhou’s South China University of Technology.

and then there is this –> The possibility that the virus leaked during a lab accident “is being seriously considered” within the U.S. government, according to another recently retired senior national security official, who pointed to the State Department’s 2019 compliance report on arms control, nonproliferation and disarmament. The report notes that Chinese officials have failed to reassure inspectors they are obeying the Biological Weapons Convention, including by not providing information about research on “numerous toxins with potential dual-use application.”  More here.

From my friend Adam Andrzejewski with his Forbes piece on funding the WHO…the money that flowed in recent years to WHO is remarkable.

With his recent vow to halt and reassess all aid to the World Health Organization (WHO), President Trump legitimized critics who allege that the agency shielded information from the world about the lethality of the coronavirus and its ability to spread by human-to-human contact.

The WHO delegation highly appreciated the actions China has implemented in response to the outbreak, its speed in identifying the virus and openness to sharing information with WHO and other countries.

World Health Organization | January 28, 2020 | Beijing

The most likely presidential policy response will be to re-purpose all or most federal money from the WHO. If done in this manner, the president must notify Congress, but has the executive power to reallocate the monies to other organizations. Therefore, legitimate programs will continue to help humanity.

Responding to our request for comment, the White House, Office of Management and Budget provided a fact sheet detailing the WHO’s “corruption and abuse.”

The W.H.O. really blew it. We will be giving that a good look.

President Donald J. Trump
Our auditors at OpenTheBooks.com reviewed all disclosed grants by federal agencies to the WHO since 2010 and found that $3.5 billion in taxpayer money funded the WHO during this period.

What’s more, only $611.1 million of that funding came from “assessed dues” required by participating countries. The U.S. government voluntarily sent the WHO roughly $2.9 billion more than their required contribution. It’s no surprise that, annually, the United States is the largest funder of the WHO.

We also found that federal funding of the WHO remained strong during the Trump era. We compared the first three years of the Trump administration (FY2017-FY2019) to the first three years during the second term of President Barack Obama’s administration (FY2013-FY2015).

The WHO received more money under Trump than Obama (inflation adjusted): $1.4 billion versus $1.1 billion.

Since 2010, the Agency for International Development (USAID) has led all federal agencies with $1.5 billion in grants to the WHO. Roughly half the USAID grant money funded three programs: humanitarian programs ($345.7 million); polio eradication efforts ($307.8 million); and efforts to eliminate tuberculosis ($116.6 million).

Other programs include efforts in Iraq, Afghanistan, Yemen, Libya, Sri Lanka, Sudan, and Pakistan and included gender-based anti-violence initiatives; life-saving healthcare services to vulnerable populations; and assistance in floods, emergencies, and to war-torn communities.

USAID efforts through the WHO and other international humanitarian aid agencies were singled out in a blistering USAID Inspector General report in 2018, Insufficient Oversight of Public International Organizations Puts U.S. Foreign Assistance Programs at Risk.

As of January 2018, Office of Inspector General (OIG) investigations in the region have resulted in the suspension or debarment of several dozen individuals and organizations, 20 personnel actions, and the suspension of $239 million in program funds under investigation.

USAID Office of Inspector General

The U.S. Department of State gave $820 million to the WHO since 2010. The largest portion of the money consisted of “assessments” or dues to the organization which amounted to $611.1 million. In addition, the State Department funded programs for “general assistance” ($95 million); “refugee” health ($17.3 million); “peacekeeping” ($15.9 million); and emergency vaccines ($2 million).

Here’s an overview of programs funded by other U.S. federal agencies such as the Centers for Disease Control (CDC) ($1 billion), Food and Drug Administration (FDA) ($30 million), National Institutes of Health (NIH) ($13.5 million), Department of Defense ($10 million) and the Environmental Protection Agency ($3.2 million) at the WHO since 2010:

  • Immunizations, Research, Demonstration, and Public Education/Information: $524.1 million — Through the Department of Health and Human Services and Centers for Disease Control, this funding was spent on WHO programs for the eradication of polio around the world. These grants were centralized through WHO headquarters in Geneva, Switzerland.
  • Global AIDS: $134.8 million — The Department of Health and Human Services and the Centers for Disease control funded support services and the strengthening of public health guidelines around the world to mitigate global AIDS.
  • Ebola virus: $73.5 million — In July 2019 and January 2020, the Congo received $15 million in Ebola eradication grants from the Trump administration specifically earmarked for the provinces of North Kivu and Ituri. The rest of the funding flowed through WHO headquarters in Geneva, Switzerland, with the majority of the funding between the fiscal years 2015 and 2017.
  • Biomedical research: $37.9 million — The National Institutes for Health (NIH) collaborated with the WHO on biomedical research. These programs included research on allergies, infectious diseases, and immunology. The transactions show that most funding was for “accelerated public health and biomedical research in priority public health objectives.”

The coronavirus pandemic is testing the World Health Organization. Just like any other health care body, every aspect of their operation will receive scrutiny during these times of insecurity and crisis.

Our analysis of WHO funding by U.S. federal agencies shows that taxpayers have been generous and deserve to know how their money is being spent.

Until recently, American commitments remained strong.

Note: All federal government funded delineated in this piece was disclosed through the Federal Funding Accountability and Transparency Act of 2006, co-sponsors Sens. Tom Coburn (R-OK) and Barack Obama (D-IL). (Public Law 109-282, 109th Congress)

Then there is the matter of the CDC…we will cover that another time.