US SENATE PASSES BILL TO BOOST OVERSIGHT AND DELIST CHINESE COMPANIES FROM

EXCHANGES

The Senate overwhelmingly approved legislation Wednesday that could lead to

Chinese companies such as Alibaba Group Holding Ltd. and Baidu Inc. being

barred from listing on US stock exchanges amid increasingly tense relations

between the world's two largest economies.

The bill, introduced by Senator John Kennedy, a Republican from Louisiana,

and Chris Van Hollen, a Democrat from Maryland, was approved by unanimous

consent and would require companies to certify that they are not under the

control of a foreign government.

US lawmakers have raised red flags over the billions of dollars flowing into

some of China's largest corporations, much of it from pension funds and

college endowments in search of fat investment returns. Alarm has grown in

particular that American money is bankrolling efforts by the country's

technology giants to develop leading positions in everything from artificial

intelligence and autonomous driving to internet data collection.

Shares in some of the biggest US-listed Chinese firms, including Baidu and

Alibaba, slid Thursday in New York while the broader market gained.

If a company can't show that it is not under such control or the Public

Company Accounting Oversight Board, or PCAOB, isn't able to audit the

company for three consecutive years to determine that it is not under the

control of a foreign government, the company's securities would be banned

from the exchanges.

"I do not want to get into a new Cold War," Kennedy said on the Senate

floor, adding that he wants "China to play by the rules."

"Publicly listed companies should all be held to the same standards, and

this bill makes common sense changes to level the playing field and give

investors the transparency they need to make informed decisions," Van Hollen

said in a statement. "I'm proud that we were able to pass it today with

overwhelming bipartisan support, and I urge our House colleagues to act

quickly."

U.S. TO PULL OUT OF OPEN SKIES TREATY, TRUMP'S LATEST TREATY WITHDRAWAL

The United States said on Thursday it would withdraw from the 35-nation Open

Skies treaty allowing unarmed surveillance flights over member countries,

the Trump administration's latest move to pull the country out of a major

global treaty.

The administration said Russia had repeatedly violated the pact's terms.

Senior officials said the pullout would formally take place in six months,

but President Donald Trump held out the possibility that Russia could come

into compliance.

"I think we have a very good relationship with Russia. But Russia didn't

adhere to the treaty. So until they adhere, we will pull out," Mr. Trump

told reporters.

His decision deepens doubts about whether Washington will seek to extend the

2010 New START accord, which imposes the last remaining limits on U.S. and

Russian deployments of strategic nuclear arms to no more than 1,550 each. It

expires in February.

Mr. Trump has repeatedly called for China to join the United States and

Russia in talks on an arms control accord to replace New START. China,

estimated to have about 300 nuclear weapons, has repeatedly rejected Mr.

Trump's proposal.

In Moscow, RIA state news agency quoted Russian Deputy Foreign Minister

Alexander Grushko as saying that Russia had not violated the treaty and

nothing prevented the continuation of talks on technical issues that

Washington calls violations.

The Open Skies decision followed a six-month review in which officials found

multiple instances of Russian refusal to comply with the treaty.

CHINA SECURITY LAW 'COULD BE END OF HONG KONG'

China plans to push through sweeping national security laws for Hong Kong at

its annual meeting of parliament, in a move that critics say will

effectively end the territory's autonomy.

Beijing has been making it clear it wants new security legislation passed

since huge pro-democracy protests last year plunged Hong Kong into its

deepest turmoil since it returned to Chinese rule in 1997.

"National security is the bedrock underpinning the stability of the

country," said Zhang Yesui, spokesman for the National People's Congress

(NPC), the annual meeting of parliament that kicks off its full session on

Friday.

Zhang announced that delegates at the NPC - a largely rubber-stamping

exercise - would "establish and improve a legal framework and mechanism for

safeguarding national security" in Hong Kong.

Condemnation of the proposal was swift, amid fears it could erase the "one

country, two systems" framework that is supposed to grant the territory a

high degree of autonomy.

"This is the end of Hong Kong," said the pro-democracy Honk Kong legislator

Dennis Kwok. "Beijing, the Central People's Government, has completely

breached its promise to the Hong Kong people ... They are completely walking

back on their obligation."

Article 23 of Hong Kong's mini-constitution, the Basic Law, says the city

must enact national security laws to prohibit "treason, secession, sedition

[and] subversion" against the Chinese government.

But the clause has never been implemented due to deeply held public fears it

would curtail Hong Kong's cherished rights, such as freedom of expression.

An attempt to enact article 23 in 2003 was shelved after half a million

people took to the streets in protest.

By passing a law in the NPC, Chinese authorities will effectively bypass

local opposition.

Zhang said details of the proposal would be announced at NPC proceedings on

Friday. The resolution is likely to be passed by China's parliament next

week.

IRANIAN TANKERS WILL GET MILITARY ESCORT: VENEZUELA

Venezuela on Wednesday said its Navy and Air Force would escort Iranian

tankers arriving with much needed fuel, after Tehran warned of

"consequences" if the U.S. stopped the ships from reaching their

destination.

"We're ready for whatever, whenever," President Nicolas Maduro told

state-run media, thanking "all the support" from its West Asian ally in its

confrontation with the U.S.

Venezuela has the world's largest proven oil reserves, but its capacity to

refine crude into gasoline is limited.

US President Donald Trump's administration has imposed unilateral sanctions

aimed at ending oil exports from Iran and Venezuela.

Defence Minister Vladimir Padrino Lopez said that when the Iranian ships

enter the oceanic economic zone "they will be welcomed" by Venezuelan naval

ships and warplanes.

According to reports, five ships have sailed from Iran but it is not known

when they will arrive.

BORIS JOHNSON DOES U-TURN ON 'UNFAIR' SURCHARGE ON FOREIGN DOCTORS

British Prime Minister Boris Johnson on Thursday did a U-turn as he ordered

his Cabinet ministers to work out an exemption of a surcharge on foreign

medics, including Indians, working in the UK's state-funded national health

service (NHS).

The move comes just a day after he had dismissed the possibility of a review

into what has been repeatedly branded as an "unfair" burden on professionals

already contributing directly to the health service in Parliament.

"The Prime Minister has asked me and the home secretary [Priti Patel] to

look at how NHS and care workers can be removed from this as soon as

possible," said UK health secretary Matt Hancock, when asked about the

annual Immigration Health Surcharge (IHS) imposed along with a visa to raise

additional funds for the state-funded health service.

"But the purpose of the surcharge is a fair one, to raise funds for the

NHS," he said.

The opposition Labour Party, which had thrown its weight behind the doctors'

organisations campaigning against the surcharge, welcomed the "U-turn".

"Boris Johnson is right to have U-turned and backed our proposal to remove

the NHS charge for health professionals and care workers," said Labour

Leader Keir Starmer.

FIRMLY OPPOSED TO US SALE OF TORPEDOES TO TAIWAN, CHINA FUMES

China on Thursday said it firmly opposes the planned US sale of advanced

torpedoes to Taiwan, a self-ruled democracy, which Beijing claims is a

breakaway province.

The Chinese foreign ministry reacted angrily after reports emerged from

Taiwan about the sale valued at some $180 million.

Spokesperson Zhao Lijian said Beijing had lodged "solemn representations"

with the US to complain about the sale, adding that it firmly opposes the

deal.

Zhao said China urges the US to strictly abide by the "one China" principle,

stop selling arms to Taiwan, avoid further damage to Sino-US relations and

maintain peace and stability in the Taiwan Strait.

The announcement of the sale coincided with Taiwan President Tsai Ing-wen

searing in for her second term in office, and saying that she strongly

rejects China's sovereignty claims.

China responded that "reunification" was inevitable and that it would never

tolerate Taiwan's independence.

The latest point of conflict between Beijing and Washington added to the

existing problems between the two countries including the ongoing exchange

over the origin of the pandemic-causing Covid-19 virus.

NEW PENTAGON REPORT SAYS PAKISTAN CONTINUES TO HARBOUR TALIBAN, HAQQANI

NETWORK

Pakistan continues to focus on countering Indian influence in Afghanistan

and harbours the Taliban and groups such as the Haqqani Network, which have

the ability to engage in violence on Afghan soil, according to a new

Pentagon report.

The report by the inspector general of the US Department of Defense for the

January-March quarter, issued on Monday, pointed to a continuation of

Pakistan's efforts to achieve its strategic objectives in Afghanistan,

including shutting out India from the war-torn country.

The report is the first one to be issued since the US and the Taliban signed

an agreement on February 29 to facilitate the withdrawal of American troops

from Afghanistan. The deal has stalled due to differences between the

Taliban and the Afghan government on prisoner releases and intra-Afghan

dialogue.

"According to the DIA [Defense Intelligence Agency], Pakistan's strategic

objectives in Afghanistan continue to be countering Indian influence and

mitigating spillover of instability into its territory," the report said.

"The DIA reported that Pakistan likely views increased Taliban influence in

Afghanistan as supporting its overall objectives and will seek to influence

intra-Afghan peace talks in a direction favourable to Pakistan."

The DIA also reported to the inspector general that "Pakistan has encouraged

the Afghan Taliban to participate in peace talks, but refrained from

applying coercive pressure that would seriously threaten its relationship

with the Afghan Taliban to dissuade the group from conducting further

violence".

The DIA also told the inspector general that "Pakistan continues to harbour

the Taliban and associated militant groups in Pakistan, such as the Haqqani

Network, which maintains the ability to conduct attacks against Afghan

interests".