Category Archives: China

Sanction China by Stopping World Bank Loans to CCP

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Decoupling the United States from China is a convoluted and complicated process. Some lawmakers make it sound easy by just terminating manufacturing agreements by U.S. companies and bring it stateside. Ah but hold on…it is important to know some other details that lawmakers on both sides of the aisle are not telling you.

Consider the items below:

1.  Commerce Department official warned Congress recently that China is raising billions of dollars in U.S. capital markets and the activity could undermine American security.

Nazak Nikakhtar, assistant secretary for international trade at the Commerce Department, testified last month that Chinese companies raised $48 billion from American capital markets from 2013 through the end of last year.

Ms. Nikakhtar told the congressional U.S.-China Economic and Security Review Commission that 172 Chinese companies in September were listed on the three largest U.S. exchanges — Nasdaq, the New York Stock Exchange and the NYSE American — with a total market capitalization of more than $1 trillion. More here.

Confucius Institutes and U.S. Exchange Programs: Public ...

2. Charles Lieber, the chair of Harvard University’s Department of Chemistry and Chemical Biology, and two Chinese nationals who were researchers at Boston University and a Boston hospital were charged by the U.S. Justice Department with lying about their purported links to the Chinese government. But hold on, it is much worse. China has a real impact on all levels of the U.S. education system. The Senate Permanent Subcommittee on Investigations issued a 96 page report describing the Confucius Institute and how those agreements work with domestic universities. Further, major universities failed to report the other monies they receive from China among other countries. It is shocking how foreign money has infiltrated the U.S. education system and to learn which country does what and how much, click here.

China moon landing: Spacecraft makes first landing on moon ...

3. China launched its Long March 5B rocket into space. This is an effort by China to build a modular space station. It did however fall out of orbit falling for the most part into the Atlantic Ocean off the coast of Africa near the Ivory Coast. Additionally, as China continues to launch at least 12 more space operations it already has landed on the dark side of the moon. China and Russia are in fact collaborating on lunar operations including for shared bases. Russia’s operations coordinating with China are centered and funded by Roscosmos for Space Activities and the Skulkovo Foundation. This is the foundation where Hillary Clinton created U.S. technology (Silicon Valley) and Skulkovo via the Clinton Foundation via a major donor known as Viktor Vekselberg. This is the other scandal of technology transfer(s) to rogue nations.

4. We are already somewhat versed in Chinese complicity in the pandemic and the World Health Organization but lets go to the World Bank shall we? As of early 2019, China was sitting on cash reserves of some $3 trillion. It is the world’s second-largest economy, behind the U.S. It directly lends more money to other nations each year than the $2 billion or so it borrows from the World Bank annually. The World Bank, based in Washington, D.C., was established after World War II to help European countries rebuild. Its mission has evolved over the years and is now to finance development in low- and middle-income countries with the goal of eliminating extreme poverty.

“From a pure economic vantage point, there is no good reason for the World Bank to continue making loans to China,” says Eswar Prasad, a professor of economics at Cornell University.

“The Chinese don’t need the money,” Prasad says. “There is a glaring optics problem.” He adds that the argument could be made that the money lent to China could be put to better use elsewhere.

And it’s not as if the World Bank has an infinite amount of money to parcel out. Its lending budget, drawn from reserves, donations and the interest it earns on capital, is limited. So a dollar lent to China is a dollar that is not available for a project somewhere else in the world. The Trump administration, which regularly beats up on China, accusing it of manipulating global trade rules for its own benefit, has blasted the World Bank for lending too much to China.

Prasad says the World Bank’s lending to China is becoming “untenable” and will have to stop fairly soon.

Bert Hofman, the World Bank’s country director for China, says the amount of money China is borrowing each year from the global bank is just a small fraction of what the country is investing each year in domestic programs. And he believes that a motivation for China’s borrowing goes beyond money.

“The reason they still borrow is because they feel that the expertise of the World Bank is valuable to them,” Hofman says.

World Bank loans come with advisers and auditors who help implement (and monitor) bank-funded projects.

China gets access to international experts. The World Bank remains engaged with China and is able to see how new projects play out in this booming middle-income country. Hofman sees it as a win-win.

Prasad agrees that there are still some good reasons for the World Bank to remain engaged with China. Many of the bank’s loans to China are for projects addressing climate change and mitigating pollution from the country’s booming factories.

“The risk the World Bank faces is that if it only lends to very poor countries, it might end up not having much of a role to play in the large, fast-growing emerging-market economies,” Prasad says. “So the World Bank, in a bid to remain relevant and push its agenda on issues such as climate change and social development, has continued to lend to China.” More here.

***

The World Bank said its board adopted a new plan to aid China with $1 billion to $1.5 billion in low-interest loans annually through June 2025, despite the objections of U.S. Treasury Secretary Steven Mnuchin and several U.S. lawmakers.

World Bank approves $300mn for agriculture reforms in ...

Mnuchin told a House Financial Services Committee hearing that the Treasury’s representative on the board had objected on to the plan on Wednesday, adding he wants the World Bank to “graduate” China from its concessional loan programs for low- and middle-income countries.

The five-year lending strategy plan was published on Thursday afternoon after the World Bank’s board “expressed broad support” for the multilateral development lender’s engagement in China’s structural and environmental reforms.

The World Bank said its lending would decline over the “country partnership framework” plan, in line with reformsagreed under a $13 billion capital increase agreed in 2018.

The World Bank loaned China $1.3 billion in the fiscal 2019 year ended June 30, down from about $2.4 billion during fiscal 2017. The new plan calls for lending to “gradually decline” from the previous five-year average of $1.8 billion.

“Lending levels may fluctuate up and down from year to year due to normal pipeline management based on project readiness,” the World Bank said in its plan.

*** So we have a collection of reparation options due to the pandemic when it comes to China, we have a building space battlefield, we have corruption within China and now we have the U.S. at major odds with the Chinese Communist Party’s in violation of the One Country, Two Systems Act of 1997 with regard to Hong Kong. Secretary of State Pompeo declared to Congress that Hong Kong was no longer autonomous with The CCP which is correct but this will spark continued hostilities between the two nations even as naval conflicts continue in the South China Sea.

None of this will be easy but the reader should know more details to assess what may be ahead in global relations.

 

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.

 

Pandemic Playbook Faults

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Several weeks ago, Politico published an article describing how President Trump failed to adhere to the 2016 Pandemic Playbook complete with the document itself. That is found here.

Here's the Pandemic Playbook That Trump Ignored

After it was brought to my attention, I read it thoroughly and began to break it down to determine the failures and faults. NBC News has picked up the same blame mission posted today.

The summary is noted below.

Pandemic Playbook Faults

It begins with Congress when in the funding process of 2015 to 2016 or even to 2017, appropriations were never allocated to specific pandemic outbreaks other than the normal funding architecture for what is known as ICBRNR. This includes the omission of the Strategic National Stockpile inventory that was not adequate for a national outbreak, yet is annexed by individual state stockpiles including medical facility inventories. FAULT 1

The World Health Organization is the lead global organization of which the United States is the largest financial contributor to provide recommendations from assessments that include epidemiology, humanitarian/development/ public health impact, transmission/outbreak/potential for public concern. WHO was willingly prevented from doing this by the Chinese Communist Party.

Dr. Mike Ryan, WHO’s top emergencies expert, asked about an international business meeting held at a Singapore hotel on Jan 20-22, said it did not appear to have spread the virus widely.

“No, I think it is way too early and much more of an exaggeration to consider the Singapore conference event a ‘super-spreading event’,” Ryan said. ( Reuters: February 10, 2020)   FAULT 2

The WHO is to advise on travel, perform surveillance, infection control, tender medical cure(s) to the host country. After this advise and action by WHO, U.S. Health and Human Services then based on WHO assessments and recommendations, launches the National Emergency Action Center. WHO finally under pressure from the international community, admitted an error in its assessment of the Wuhan Laboratory on January 28, 2020. FAULT 3 (2 days later, President Trump restricted/halted flights from China into the United States).

Meanwhile, the United States through the U.S. State Department had several operations launched to address the potential global outbreak and that included running private flights to various locations around the globe to retrieve American citizens and bring them home. Further, earnest offers were being provided to Wuhan and Beijing by the USG to send in virologist and medical personnel to examine research protocols, gather lab samples, perform specimen sharing, collaborate on pharmaceuticals and treatments as well as to review global stockpiles, medical treatment infrastructure (read hospitals) and to offer proposed budget items to the U.S. Congress. Not only did were these offers extended to China, but to any other nation that was lacking in resources including Italy and Iran. FAULT 4 for China

Meanwhile as the Senate impeachment hearings began on January 16, 2020, the Trump administration launched the White House Coronavirus Task Force on January 29, 2020. The first known case of COVID -19 was reported in Washington State on January 20, 2020 as a 35 year old man had just returned from Wuhan on January 15. It was not until March 11, 2020 that WHO declared COVID -19 a pandemic. FAULT 5

As for all the other U.S. Federal agencies, they take the lead from HHS which takes the lead from WHO. The number of Federal agencies is substantial and not only do they include the normal well known agencies, they also include the Veterans Administration, USAID, Office of Global Affairs, embassies, FBI, CIA, GOARN otherwise the Global Outbreak Alert and Response Network. There of course is the CDC with clinical trial research papers, various trial invitations, there is the Customs and Border Patrol and the U.S. Coast Guard for cross border travel and sea travel, the FAA and the branches of the U.S. military. Orchestrate all that for the benefit of the state Governors who hold the most significant power and responsibility when outbreaks occur. It is the Federal government that only provides guidance and assistance as a multi-state event occurs.

This summary comes from reading the Politico article on how President Trump failed the Pandemic Playbook. That is hardly the case if one actually reads the whole playbook. After the 2016 playbook was authored and published in 2015 for 2016, did Congress standup a hearing to determine funding specific to a pandemic? The playbook recommended early budget and financial analysis and supplemental funding from Congress. Did that happen? NO Fault 6.

There is more but based on the items in the playbook, it was done by committee as a result of the Ebola outbreak in 2014. The playbook per the text is merely a checklist for domestic and international guidance.

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.”