Global Developments and Analysis: Weekly Monitor, 02 August - 08 August 2021

Economic

US business pushes Biden for a China trade deal

Never before in US political history has the whole of the American business community—more than thirty major business organizations—spoke with one voice as it did in an August 5 appeal to the Biden administration to eliminate tariffs on imports from China. No entities in American politics are timider than business lobbies, most of whose work involves quiet lobbying for administrative relief and legislative tweaks. Such a high-profile intervention suggests that the business organizations believe that a deal is already underway. A deal is likely because inflation could poison the Democratic Party’s chances at 2022 mid-term elections and return control of the US Congress to the Republicans. Cutting tariffs is the quickest way to reduce inflation. Beyond the arithmetic of electoral politics, a consensus is emerging that the technology sanctions that Trump imposed on China have failed and may even have backfired. More than 30 business groups including the Chamber of Commerce, the Business Roundtable, the Semiconductor Industry Association, as well as retailer, farm and manufacturing representatives asked Biden to cut tariffs and restart trade talks with China.
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The danger of putting SOEs back in centre of China’s economy

After Deng Xiaoping initiated the open-door policy in 1978, he encouraged the rapid development of private enterprises, welcomed foreign investments and attempted to organise the retreat of Chinese state-owned enterprises (SOEs) from non-essential and non-strategic economic sectors. However, for the last several years the ideological wind has started blowing in favour of SOEs as the Chinese leadership placed increasing emphasis on SOEs’ role in addressing the existential problems of China’s political regime. China is reshaping its business landscape with a strong Marxist ideological push and an ultranationalist sentiment. The comprehensive control exerted by SOEs across all economic sectors and their special treatment by the government may well undermine fair competition and dampen the entrepreneurial spirit. Indeed, SOEs serve as a powerful tool for political and policy implementation, instead of as modern corporations competing on the same legal footing as other businesses. Their ultimate mission is to act as a buffer against any internal or external shocks or instabilities.
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China’s ‘buy Chinese’ targets for state firms against US trade deal, WTO: US sources

China’s government quietly issued new procurement guidelines in May that require up to 100% local content on hundreds of items including X-ray machines and magnetic resonance imaging equipment, erecting fresh barriers for foreign suppliers, three US-based sources told Reuters. Document 551 was issued on May 14 by the Chinese Ministry of Finance and the Ministry of Industry and Information Technology, with the title, “Auditing guidelines for government procurement of imported products,” said one former US government official, who obtained a copy of the previously unreported 70-page catalogue and read portions to Reuters but requested anonymity. The former official said that when China joined the World Trade Organization, it agreed not to issue such internal documents. The document also violated the spirit of the January 2020 phase one trade deal with the United States, the former official said. Sent to Chinese hospitals, companies and other state-owned buyers, the document sets local content requirements of 25 to 100 per cent for 315 items. They include medical equipment, ground-based radar equipment, testing machinery, optical instruments; items used for animal husbandry; seismic instruments, and marine, geological and geophysical equipment, the former official said.
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US food supply at risk as historic drought sees water to California farms cut

In the valleys of central California, the search for water has turned into an all-out obsession as the region suffers through a drought that could threaten the United States’ food supply. Residents have watched with dismay as verdant fields have turned into brown, dusty plains, leaving shrivelled trees, dying plants and exasperated farmers. Much of California, and the broader US West, has suffered through years of lighter-than-usual rain and a particularly dry winter. State and local authorities, fearful that there may not be enough water for city dwellers or wildlife, have abruptly cut supplies to farms, provoking anger and consternation. Along the roads between major farming operations, billboards have popped up everywhere, urging: “Save California’s Water”. They accuse the authorities of “dumping … our water in the ocean.” Growers complain that the state’s Democratic governor, Gavin Newsom, is strangling them under a mountain of pointless restrictions, leaving them unable to fill their usual role of supplying America’s supermarkets. Reacting to dire signs of a worsening climate crisis, they passed new emergency legislation last week to prevent thousands of people – notably farmers – from diverting streams or rivers.
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Australia flags democracies' trade swing from China to India

Australian special envoy and former Prime Minister Tony Abbott said a free trade agreement between his nation and India would signal the “democratic world’s tilt away from China”. Abbott visited New Delhi last week as Australia’s special trade envoy for India as the Australian government gives priority to sealing a bilateral trade deal. In an opinion piece likely to anger Beijing that that was published in The Australian newspaper on Aug 9, Abbott said the “answer to almost every question about China is India”. “With the world’s other emerging superpower becoming more belligerent almost by the day, it’s in everyone’s interests that India take its rightful place among the nations as quickly as possible,” Abbott wrote. “Because trade deals are about politics as much as economics, a swift deal between India and Australia would be an important sign of the democratic world’s tilt away from China, as well as boosting the long-term prosperity of both our countries,” Abbott added. Abbott was prime minister when China and Australia finalised a bilateral free trade deal which took effect in 2015. He also hosted a state visit by Chinese President Xi Jinping a year earlier.
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To save the planet, focus on cutting methane: UN climate report

In four decades of climate negotiations, the world has focused intensely and exclusively on the most abundant climate-warming gas - carbon dioxide. This year, scientists are urging a focus on another potent greenhouse gas – methane – as the planet's best hope for staving off catastrophic global warming. Countries must make "strong, rapid and sustained reductions" in methane emissions in addition to slashing CO2 emissions, scientists warn in a landmark report by the UN Intergovernmental Panel on Climate Change released Aug 9. The plea could cause consternation in countries opting for natural gas as a cleaner alternative to CO2-belching coal. It also could pose challenges for countries where agriculture and livestock, especially cattle, are important industries. But while both methane and CO2 warm the atmosphere, the two greenhouse gases are not equal. A single CO2 molecule causes less warming than a methane molecule but lingers for hundreds of years in the atmosphere whereas methane disappears within two decades. The report puts "a lot of pressure on the world to step up its game on methane," said IPCC report reviewer Durwood Zaelke, president of the Institute for Governance and Sustainable Development in Washington, DC.
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Apple seeing developments in 'iCar' talks with Korean partners

U.S. tech behemoth Apple appears to be taking steps toward the electric vehicle (EV) business, which is expected to become its future growth engine, as the company has made contact with multiple Korean EV component manufacturers, according to an industry source Aug 09. Since last year, Apple has reportedly been planning to jump into the EV business as its next cash-cow business item. As Apple has been sticking to a strategy that it doesn't rely on having its own manufacturing facilities for its smart gadgets, such as iPhones, iPads and MacBooks, the U.S. tech firm is expected to outsource the manufacturing of its EVs as well. The industry source said that Korean manufacturers of EV batteries and other components will be able to benefit from Apple's business strategy. "Without partnerships with Korean vendors, Apple won't be able to complete its EV business plan. As far as I know, Apple has talked with LG, SK and Hanwha, but the talks are still in the early stages," a senior industry executive directly involved with the issue told The Korea Times.
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Pakistan replaces its Belt and Road chief with Beijing favorite

Pakistan has replaced the head of its Belt and Road projects with an energy expert who is a favorite of Beijing in a bid to push the stalled projects forward, providing observers with another anecdote of China appearing to manage the infrastructure plan from behind the scenes. Pakistan's government, led by Prime Minister Imran Khan, on Aug. 3 appointed Khalid Mansoor to the country's top position responsible for the China-Pakistan Economic Corridor (CPEC) -- the $50 billion local component of Beijing's Belt and Road Infrastructure plan -- replacing Asim Saleem Bajwa, a retired army general. Bajwa had been chairman of the CPEC authority since November 2019. As he takes over, Mansoor's title will now be 'Special Assistant to the Prime Minister on CPEC Affairs.' Mansoor, with a career spanning 32 years, has worked at top management positions in many energy-related companies including Sindh Engro Coal Mining Company and Hub Power Company Limited, the latter of which has been involved in CPEC projects.
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Russia resumes flights to Egyptian resorts after 6 years

Russia resumed flights to Egyptian Red Sea resorts on Aug 09, ending a ban that had lasted almost six years following the bombing of a Russian airliner that killed all 224 people onboard. The local branch of the Daesh group said it downed the plane over Sinai in October 2015, shortly after the aircraft took off from the Red Sea resort of Sharm el-Sheikh. At the time, Russian officials insisted that security procedures at Egyptian airports were insufficient. Early on Aug 09 morning, EgyptAir flight MS724 took off from Moscow with 300 tourists. Hours later, the Airbus A300-330 landed in Hurghada, a popular Red Sea destination, Egypt’s national carrier said in a statement. The Russian plane was welcomed by a ceremonial “water salute” on touchdown and Russian tourists, most of them wearing facemasks, were greeted with flowers and balloons upon disembarking. The statement said EgyptAir would operate seven flights from the Russian capital to Hurghada and Sham el-Sheikh, on the tip of the Sinai Peninsula. The first EgyptAir flight from Moscow to Sharm el-Sheikh was scheduled for Aug 10, it said.
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Strategic

Why China is not saying yes – or no – to the German navy’s port call request

For the first time in nearly two decades, a German warship is heading to the South China Sea. The frigate Bayern left its port in northwestern Germany on Aug 02 on a voyage that is expected to last about six months. According to Germany, the deployment will help enforce the United Nations’ sanctions regime against North Korea and involve several navy exercises and port visits. The trip follows a US call for its allies to take a greater interest in the Asia-Pacific and includes a transit through the South China Sea, a waterway over which China has vast and contested claims. In an apparent effort to chart a course between China and the US, Germany requested a port call in Shanghai. It also invited Chinese forces to take part in “Kiel Week”, a series of sailing events in September. But while Beijing has not ruled out either possibility, it has demanded that Berlin clarify the reason for the port call, signalling that it is not interested in ambiguity from Germany, according to diplomatic observers. There is precedent for Chinese participation in the German event, with China taking part in the Kiel festivities in 2016 and 2018.
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Media report claiming UK carrier group spots PLA submarines ‘not credible’

A report by a UK media organization recently claimed a UK aircraft carrier strike group that sailed in the South China Sea in late July spotted Chinese nuclear-powered submarines that shadowed it during its voyage, but Chinese military experts said on Aug 09 that the report is not credible and is aimed at showing off the group's presence and boasting of its anti-submarine capability. The report, published by the Daily Express on Aug 09, did not give a source for the information. It claimed that two Type 093 nuclear-powered attack submarines of the Chinese People’s Liberation Army (PLA) Navy were located by anti-submarine sonar operators aboard the HMS Kent and HMS Richmond frigates, which served as escorts for the HMS Queen Elizabeth aircraft carrier in the carrier group, as the group left the South China Sea and moved into the Pacific Ocean. Many UK warships have not reached full operational capability, and their anti-submarine capability is limited, said Song Zhongping, a military expert and TV commentator. It is also possible that the Chinese submarines intentionally revealed themselves after having accomplished their missions, sending a warning to the UK carrier group, experts said.
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China’s aircraft carrier pilots upskill for demanding night missions

China’s naval air force is expanding its night combat strength with a new group of fighter pilots qualifying as instructors for night-time take-offs and landings on the country’s aircraft carriers. According to PLA Daily, several pilots from the People’s Liberation Army Naval Aviation University gained the certification after performing the manoeuvres in J-15 fighter jets on the carrier Liaoning in high winds on the Bohai Sea. State broadcaster CCTV quoted Wang Yong, a university instructor who took part in the certification exam, as saying the risks of landing at night on the vessel were many times greater than that of landing during the day. “It not only requires the pilots to have excellent flying skills, but also requires the pilots to have a strong heart and top mental strength,” Wang said. PLA Daily quoted a landing signals officer on the Liaoning as saying that low visibility was the biggest challenge of landing on a carrier at night. “There is no surrounding environment for reference. Relying on only light signals on the carrier to accurately land on the small flight deck is a huge test of a pilot’s skill and courage,” the officer was quoted as saying.
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J-20 fighter jets highlight China-Russia joint strategic drills opening

China and Russia launched a large-scale strategic military exercise in Northwest China on Aug 09, the first joint drill with another country hosted by China since the COVID-19 outbreak, with the Chinese People's Liberation Army (PLA) dispatching advanced weapons and equipment, including J-20 stealth fighter jets and Y-20 large transport planes, which were the highlight of the opening ceremony. This is the first time the PLA has sent the J-20 in joint drills with another country, and this, along with other exercise arrangements like sharing PLA main battle equipment with the Russian troops, displayed a high-level of cooperation and mutual trust between the Chinese and Russian militaries at a time when the two countries are facing challenges from the changing security situation in Central Asia following the US' troop withdrawal from Afghanistan and direct threats from the US and its allies, Chinese experts said. The exercise set the theme of jointly safeguarding regional peace and stability and is scheduled to conclude on Aug 13.
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Lhasa-Nyingchi Railway hosts its first military transport mission

The newly opened Lhasa-Nyingchi Railway in Southwest China's Tibet Autonomous Region recently hosted its first military transport mission, a move analysts said on Aug 04 served as a boost to the capability of the People's Liberation Army (PLA). New recruits at a combined arms brigade affiliated with the PLA Tibet Military Command recently took a Fuxing bullet train on the railway to an exercise field at an elevation of 4,500 meters, js7tv.cn, a news website affiliated with the PLA, reported on Aug 04. This is the first time the Lhasa-Nyingchi Railway, an important part of the Sichuan-Tibet Railway, has hosted a troop transport mission, and marks another step forward on the systematic development of China's military transport, js7tv.cn said. Roads to and in Tibet are long and built under challenging environments including complex terrains and high altitude and traveling such a long distance could cause troops to suffer from fatigue, and aircraft sometimes cause altitude sickness in plateau regions and have limited transport capacity, said an expert, who had travelled with both during her service in Tibet.
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Russian strategic forces to receive first batch of new Sarmat missile in 2022, Shoigu says

Flight tests of Russia's new intercontinental ballistic missile Sarmat will begin later this year and should be completed in 2022, and the country's strategic missile forces should get the first batch in 2022 as well, Defense Minister Sergei Shoigu said on Aug 06. "Flight tests [will begin] this year and should be completed in 2022. In 2022, the first batch should enter service with the strategic missile forces", Shoigu told reporters at the Krasnoyarsk Machine-Building Plant. The Sarmat is expected to replace the Voevoda (РС-20В Satan), the heaviest strategic missile in the world. It will be capable of carrying up to 10 tonnes of payload for either up to 10 heavy or 15 light MIRV warheads.
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Nikai backs Suga as LDP chief amid internal party discontent

A top power broker in the ruling party is backing Prime Minister Yoshihide Suga to remain at the party’s top post amid signs of dissent in the ranks over party leadership. Toshihiro Nikai, the powerful secretary-general of the Liberal Democratic Party, made clear he would stop any effort to remove Suga from his role as LDP president. “I do not see any significance in replacing Suga (as LDP president) immediately,” Nikai said, referring to the fact that Suga has been dealing with the COVID-19 pandemic every day. “I believe everyone is of the understanding that the incumbent has an extremely high possibility of being re-elected.” Nikai’s comments come as some younger LDP lawmakers express dissatisfaction with the falling approval ratings of Suga’s Cabinet, largely over its handling of the novel coronavirus pandemic. Some have even said that if Suga remains at the party helm, the LDP would not be able to put up a fight in the Lower House election that must be held this fall. Suga’s term as party president ends at the end of September, and the first meeting of the committee overseeing the LDP’s presidential election was held Aug. 3.
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U.S. approves potential sales of howitzers to Taiwan--Pentagon

The U.S. State Department approved the potential sale of 40 155mm M109A6 Medium Self-Propelled Howitzer artillery systems to Taiwan in a deal valued at up to $750 million, the Pentagon said on Aug 04. This comes after arms sales last year that included drones and coastal missile defenses meant to upgrade the island’s capabilities and discourage a Chinese invasion. The Biden administration has approved other direct commercial sales of arms to Taiwan since taking office. The package would include the howitzers, 1,698 precision guidance kits for munitions, spares, training, ground stations and upgrades for Taiwan’s previous generation of howitzers, the Pentagon said. The Pentagon’s Defense Security Cooperation Agency notified Congress of the possible sale on Aug 04. Like most nations, the United States has no formal diplomatic ties with Taiwan but is required by law to provide the Chinese-claimed island with the means to defend itself and is its most important international backer, to Beijing’s anger. Despite approval by the State Department, the notification does not indicate that a contract has been signed or that negotiations have concluded.
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Mexico sues U.S. gun makers, eyes $10 billion in damages

Mexico sued several gun makers in a U.S. federal court on Aug 04, accusing them of reckless business practices that supply what it called a "torrent" of illegal arms to violent Mexican drug cartels, leading to thousands of deaths. The lawsuit alleges that units of Smith & Wesson, Barrett Firearms, Colt's Manufacturing Company, Glock Inc, Sturm, Ruger & Co and others knew their business practices had encouraged illegal arms trafficking into Mexico. The lawsuit cites weapons that had entered Mexico used in notorious shootings, noting that Colt's .38-caliber "Emiliano Zapata 1911" pistol is engraved with the image of the Mexican revolutionary, and is a status symbol coveted by drug cartels. "What's the objective? That the companies in question compensate Mexico's government for the damage caused by their negligent practices," Foreign Minister Marcelo Ebrard said at a news conference about the lawsuit filed in the U.S. District Court for the District of Massachusetts. The lawsuit is one of the boldest steps ever taken by Mexico to pressure the U.S. arms industry, which Mexican leaders have for years blamed for fueling gang violence.
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Taliban Make New Gains in Afghanistan, Putting Kabul in Crisis

The Taliban captured the capital of the strategic Samangan province on Aug 09 after a prominent pro-government commander switched sides, nearly completing their sweep of northern Afghanistan and intensifying a political crisis in Kabul. The bloodless takeover of Aibak, which followed the seizure of four other nearby provincial capitals in the past three days, has allowed Taliban forces to unite in an assault on the biggest prize: northern Afghanistan’s main metropolis of Mazar-e-Sharif. Taliban forces attacked the now-isolated city of half a million people from different directions on Aug 09, but so far haven’t made significant inroads. Separately, insurgents battled government forces inside western Afghanistan’s main city of Herat. The dizzying series of battlefield losses is fueling calls for President Ashraf Ghani —who has relied on a narrow circle of advisers and frequently changed key ministers and military commanders—to change how he governs or step aside. Kabul could fall to the Taliban within a few weeks unless all political forces opposed to the insurgency unite behind a common war plan, a senior government member warned.
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Turkey slams US statement on planned resettlement of Afghans

The Turkish government has criticised a US plan to use third countries such as Turkey to resettle thousands of Afghans who risk being targeted by Taliban fighters over their Washington links, saying the move would cause a “great migration crisis” in the region. Weeks before the US is set to complete the withdrawal of its troops from Afghanistan after 20 years of war, its Department of State on Aug 03 announced a new programme under which certain categories of Afghans will have a chance to resettle as refugees in the US. The scheme covers interpreters and translators who worked with US forces, Afghans involved with US-funded projects and those employed by US-based NGOs or media organisations. Afghans in the programme would have to make their own way to a third country, where they will wait 12 to 14 months for their application to be processed. A senior Department of State official said Washington had been in discussion with neighbouring countries on potential outflows, adding it was important that Pakistan’s borders with Afghanistan remain open, while others might travel to Turkey via Iran.
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Incoming president says Iran will seek end to 'tyrannical' US sanctions

Iran's hardline incoming president Ebrahim Raisi said on Aug 03 he would take steps to lift "tyrannical" sanctions imposed by the United States, after winning the formal endorsement of the country's supreme leader to take office later this week. Raisi, who is under personal U.S. sanctions over allegations of human rights abuses in his past as a judge, promised to improve the living conditions of Iranians, which have worsened since 2018 when Washington reimposed sanctions on Iran after abandoning a nuclear deal. "We will seek to lift the tyrannical sanctions imposed by America," Raisi, elected in June to replace pragmatist Hassan Rouhani in a vote in which other high-profile candidates were barred from standing, said in a televised speech. "But we will not tie the ... economy to the will of foreigners," said Raisi, a protege of Khamenei. Iran and six powers have been in talks since April to revive the nuclear pact, under which Iran agreed to curb its nuclear program to make it harder to obtain fissile material for a weapon in return for relief from sanctions.
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Top U.S. Negotiator: Iran Nuclear Deal May Be Impossible

For every week that passes without any breakthrough between Tehran and Washington, the prospect of a restored JCPOA nuclear deal looks bleaker. Talks in Vienna have remained stalled for weeks, especially after Iran previously indicated it would not resume negotiations, expected to enter the seventh round, until after hardline cleric and president-elect Ibrahim Raisi enters office on August 3rd. And now for the first time, the US top negotiator in Vienna is vocalizing "increasing doubts" that deal is possible: "America’s top envoy for the nuclear negotiations with Iran, Rob Malley, is having increasing doubts about whether a return to the 2015 JCPOA agreement is possible, The New York Times reported Aug 07," The Jerusalem Post writes. "There’s a real risk here that they come back with unrealistic demands about what they can achieve in these talks," Malley told the Times, in reference to Raisi taking office Aug 03. Malley voiced concern over Iran's latest advances as it continues intentionally breaching enrichment caps and terms under the original deal.
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Philippine ruling party leaders endorse Duterte for VP in 2022

Leaders of Philippine President Rodrigo Duterte's political party have endorsed him to be a vice presidential candidate in next year's elections, paving the way for him to stay in power for six more years after he steps down in 2022. The move needs to be approved by the party general assembly, which meets next month. In the Philippines, the president is limited to one six-year term. Duterte's term ends in June next year, but he has said he is seriously thinking about running for vice president, which political observers and critics say could be a backdoor to the presidency. Next year's polls will be a referendum on Duterte's policies, including his bloody war on drugs, in which thousands of people have been killed, and the handling of the pandemic, many political analysts say. The backing for Duterte was announced by Melvin Matibag, secretary-general of the ruling PDP-Laban party, who said the endorsement by the key officers will be presented to a national assembly of the party next month for approval. For its presidential candidate, the party leadership endorsed Duterte's top aide and incumbent senator Christopher "Bong" Go, Matibag said, describing Go and Duterte as a "formidable" team.
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UK becomes ASEAN’s newest dialogue partner, ending 25-year moratorium

The United Kingdom has officially become ASEAN’s 11th dialogue partner, officials announced on Aug 05, ending the regional bloc’s 25-year moratorium on awarding third parties its highest institutional partnership status. ASEAN foreign ministers met with UK Foreign Secretary Dominic Raab virtually on Thursday, in the midst of a British charm offensive in Asia that it unleashed in 2018 as part of its post-Brexit strategy. The UK officially submitted its application to become an ASEAN dialogue partner in June last year, and since then the country has attended two ministerial meetings with ASEAN, as well as hosting fellow Commonwealth partner Brunei as ASEAN’s chair this year at the G7 Foreign and Development Ministers meeting in May.
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North Korea Is Willing to Talk, but First It Wants Fuel, Suits and Liquor

North Korea has a few demands to restart nuclear talks with the U.S., according to South Korea’s spy agency. Kim Jong Un’s regime wants sanctions restrictions relaxed to allow exporting minerals and importing more refined fuel. Also on the must-have list: fine suits and premium liquor. Seoul’s spy agency on Aug 03 briefed lawmakers about the demands from Pyongyang, without disclosing how or when intelligence officials learned of them. Since last week, the two countries have talked multiple times a day after reopening inter-Korean hotlines, following more than a year of silence. It was Kim Jong Un who asked to restore the hotline, Seoul’s spy agency told lawmakers. The Kim regime, its borders still closed over Covid-19 fears, has so far given a cold shoulder to the Biden administration’s diplomatic outreach. The U.S. and North Korea haven’t held formal denuclearization talks since October 2019. To return to the negotiating table, North Korea wants a relaxation of the ban on mineral imports, which prohibit once-lucrative shipments of coal and iron, and a removal of caps that limit the country to importing up to 500,000 barrels of refined fuel a year.
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Medical

Delta variant challenges China’s costly lockdown strategy

The delta variant is challenging China’s costly strategy of isolating cities, prompting warnings that Chinese leaders who were confident they could keep the coronavirus out of the country need a less disruptive approach. As the highly contagious variant pushes leaders in the United States, Australia and elsewhere to renew restrictions, President Xi Jinping’s government is fighting the most serious outbreak since last year’s peak in Wuhan. The ruling Communist Party is reviving tactics that shut down China: Access to a city of 1.5 million people has been cut off, flights canceled and mass testing ordered in some areas. That “zero tolerance” strategy of quarantining every case and trying to block new infections from abroad helped to contain last year’s outbreak and has kept China largely virus-free. But its impact on work and life for millions of people is prompting warnings that China needs to learn to control the virus without repeatedly shutting down the economy and society. Zhang Wenhong, a Shanghai doctor who became prominent during the Wuhan outbreak said in a social media post that the latest outbreak suggests China’s strategy may change since the virus isn’t going away.
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Outside Olympic ‘bubble,’ 170,000 in Japan infected during Games

Olympic organizers praised themselves for holding a “safe and secure” Summer Games in Tokyo, but many outside the “bubble” said the event only fueled the record-setting spread of the novel coronavirus around Japan. Hidemasa Nakamura, the Tokyo 2020 Games’ delivery officer, said at a news conference on Aug. 7 that the rate of positive COVID-19 tests among people involved with the Games was low. Athletes and Olympic-related people underwent a total of 600,000 tests, and 138 had tested positive for the virus as of Aug. 6, Nakamura said. The positivity rate, at 0.02 percent, was “evidence that the Olympics have been held safely and securely,” he said. Under health protocols, athletes and Olympic-related officials were supposed to stay within the “bubble” to prevent a possible spread of infections to the public. Outside of that bubble, the number of new COVID-19 cases reported over the 17-day sports event exceeded 170,000 around the nation, putting a further strain on health care workers. Although the bubble may have limited direct contact between Olympians and the public, it could not contain the festive atmosphere of the Games.
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Analysis-Tougher terms: why the EU is paying more for new COVID shots

The European Union has agreed to pay a premium on new orders of COVID-19 vaccines because it is requiring tougher terms to be met, European officials said, as the bloc tries to protect supplies after a rocky start to its vaccination campaign. The higher price is less than the United States has agreed to pay in its latest order in July. On Aug 01, the Financial Times reported the EU has agreed to pay Pfizer and BioNTech 19.5 euros ($23.1) for each of their COVID-19 shots under a contract signed in May for up to 1.8 billion doses, up from the 15.5 euros per dose under two initial supply contracts for a total of 600 million vaccines. This was in line with previous reports. The price for Moderna shots went up to $25.5 a dose, the newspaper said, referring to a 300 million vaccine deal, up from $22.6 in its initial deal for 160 million jabs. EU lawmaker Tiziana Beghin, a member of Italy's 5-star ruling party, said the EU was being ripped off.
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China Moves to Match G-7 Vaccine Push With Pledge for 2 Billion Shots

President Xi Jinping pledged to dramatically expand Covid-19 vaccine exports to two billion doses this year, matching commitments by Group of Seven nations amid warnings about inoculation shortages in the developing world. Xi announced the goal in a written address to a forum on international vaccine cooperation hosted Aug 05 by Foreign Minister Wang Yi, state media including China Central Television said. The country also planned to donate $100 million to Covax, the international program backed by the World Health Organization that provides developing countries with vaccines, Xi said. The developing world is counting on shots from Chinese developers, such as Sinovac Biotech Ltd. and Sinopharm Group, to slow the spread of the virus, even though they appear to be less effective than vaccines developed in the West using newer technology. Earlier this week, WHO chief Tedros Adhanom Ghebreyesus urged developed nations to share their supplies instead of redirecting them toward booster shots. Two billion doses would match total commitments announced by G-7 nations as of their June meeting in the U.K.
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