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Last Week Globalized | Stories + Commentaries We're Watching

Stories and commentaries at the intersection of globalization, disruption, and politics from the week of February 17, 2020:

The market impact of coronavirus has begun to spread: Biedex reports, The floodgates are opening. Companies are beginning to warn that the coronavirus outbreak will impact earnings, and stocks have begun to react negatively. shrtco.de/KZttP

Investor worries expand beyond the tourism industry

Many questions remain about the virus

London would be ready to host the 2020 Olympics if the outbreak of the coronavirus forced the Games to be moved from Tokyo, Shaun Bailey, the Conservative candidate for mayor of the British capital, has said.

Coronavirus-infected Americans flown home against CDC’s advice: WP reports, the State Department chose to keep 14 infected passengers on planes flying to the United States. The decision was a pivotal moment for US officials improvising their response to a crisis with few precedents.

China’s chemical catastrophe: Le Monde diplomatique reports, economic gains have been largely powered by the chemical industry, which causes serious health problems and has an appalling safety record. To address these, and lessen environmental damage, the government now faces costly restructuring.

Mihir Sharma: Trump’s India trip: Full stadium and mostly empty promises: Once-promising bilateral relations have taken a cynical turn.

Ravi Agrawal: Trump’s India visit is mostly about optics: Next week, the leaders of the world’s two largest democracies will try to highlight their areas of agreement—but the trendlines show growing cracks.

Fall of Berlin Wall: How 1989 reshaped the modern world http://shrtco.de/Btl16   

Axios: Economists warn coronavirus risk far worse than realized

Coronavirus is the first true social media infodemic: MIT Technology Review reports, an overabundance of information—some accurate and some not—that makes it hard for people to find trustworthy sources and reliable guidance when they need it.” The way social media has allowed viral misinformation to spread and flourish at unprecedented speeds sets the coronavirus apart from previous viral outbreaks.

Yaroslav Trofimov: From Chernobyl to the Coronavirus: In the USSR in 1986, as in China today, a public health disaster exposed the limits of dictatorial rule.

Sporting events and the coronavirus:

Hong Kong Marathon, canceled

World Athletics Indoor Championships, postponed until 2021

LPGA Tour event in early March was canceled

World Rugby Seven Series events postponed from March to October

Three qualifiers for the 2021 International Basketball Federation Asia Cup have been postponed

Chinese Grand Prix in Shanghai postponed

Tokyo 2020: There has been no word if the epidemic will impact Tokyo’s hosting of the 2020 Summer Olympic Games

Cruise industry caught in the eye of the storm: FT reports, quarantined passengers, canceled sailings and worries over infection weigh on the $45bn sector.

Hotel bookings in Bali plummet by 40,000 in recent weeks as ban on incoming flights from China bites local businesses.

AP: S. Korea reports 1st virus death; 2.5m urged to stay home

WSJ - Editorial: Banished in Beijing

China expels three WSJ reporters to deflect from its coronavirus woes.

Nikkei: Xi's faction grabs more power as virus crisis worsens

'Zhejiang's new army' adds Hubei and Hong Kong to strongholds Beijing, Shanghai, and Chongqing.

China threatened to harm Czech companies over Taiwan visit: letter: Beijing threatened to retaliate against Czech companies with operations in China if a senior Czech lawmaker went ahead with a planned visit to Taiwan, according to a diplomatic letter seen by Reuters.

EU proposes rules for artificial intelligence to limit risks: AP reports, the  European Union unveiled proposals Wednesday to regulate artificial intelligence that call for strict rules and safeguards on risky applications of the rapidly developing technology. The report is part of the bloc’s wider digital strategy aimed at maintaining its position as the global pacesetter on technological standards. Big tech companies seeking to tap Europe’s vast and lucrative market, including those from the US and China, would have to play by any new rules that come into force.

New Zealand’s first AI police officer reports for duty: TNW reports, New Zealand Police has recruited an unusual new officer to the force: an AI cop called Ella. The Kiwi copper will chat with visitors and police personnel at the force's HQ in Wellington.

Ella is a life-like virtual assistant that uses real-time animation to emulate face-to-face interaction in an empathetic way.

Huawei row: Australian MPs cancel UK trip amid tensions over leak: BBC reports, senior Australian MPs have canceled a planned trip to the UK as tensions heighten over the role of Huawei in building Britain's 5G network. Lawmakers from the intelligence and security committee had been expected to travel to the UK next month. But the trip has been postponed amid reports of a diplomatic rift. The decision follows a reported complaint from the UK over leaked details of a high-level meeting where Huawei was discussed.

The culinary couple who built a British empire: The chefs Fergus and Margot Henderson have forged an identity for modern British cooking, grounded in technique and tradition. But will their legacy survive the divisions of Brexit? https://nyti.ms/2vKhav4 

How Russia is prodding Scotland toward independence: Foreign Policy reports, to justify its breakup of Ukraine, the Kremlin seeks to embarrass the UK and other major NATO allies. But the Scottish National Party wants nothing to do with Putin.

Michael Kimmage: The wily country: Understanding Putin’s Russia. https://fam.ag/2P3VDUQ 

Macron picks minister to lead Paris mayor battle after sexting scandal: Reuters reports, Macron picked his widely respected health minister on Sunday to reinvigorate a campaign to win over Paris City Hall that fell apart when his previous candidate pulled out over a sexting scandal. His new candidate, Health Minister Agnes Buzyn, a doctor who has been leading France’s response to the coronavirus, told reporters she was throwing herself into the race to win.

Macron launches campaign against political Islam: FT reports, an attempt to elicit support from rightwing voters ahead of French local elections.

Sylvie Kauffmann: France’s challenge in Africa: The Libyan revolution of 2011 brought lasting terrorist mayhem across a broad reach of Africa’s former French colonies. Now France needs its allies to help pacify the region — if that can be done.

The Economist: The struggle to give Brittany its own emoji: A proud French region, home of Asterix, wants its flag in every phone. 

Country on the brink: A search for the source of Italy's malaise: Der Spiegel reports, the sun in the south, the mountains in the north and stunningly beautiful cities in between: Life in Italy, one might think, is just short of paradise. But residents of the country are deeply unhappy. Why? http://bit.ly/3bNWqmL 

Trump supports sales of high-tech products to China, in blow to hawks: WSJ reports, a push by Trump administration hard-liners to stem the flow of high-tech exports to China—even if doing so means limiting the market access of major US companies—hit a hurdle Tuesday: President Trump himself.

US designates 5 major Chinese media outlets as government entities: WP reports, the designation means they will be treated as though they are diplomatic outposts of the Chinese government and subject to the same constraints. The move is the latest in a series of US efforts to tackle China’s influence in the United States.

US designates China’s official media as operatives of the Communist state: NYT reports, the move is the latest in the Trump administration’s efforts to counter Beijing’s influence and intelligence operations in the United States.

China revokes 3 Wall Street Journal reporters’ credentials over oped headline: AP reports, China on Wednesday said it has revoked the press credentials of three reporters for the Wall Street Journal over a headline for an opinion column deemed racist by the government. The headline on the Journal’s opinion column referred to the current virus outbreak in China and called the country the “Real Sick Man of Asia.” Chinese foreign ministry spokesman Geng Shuang said the Feb. 3 op-ed by Bard College Professor Walter Russel Mead “smears the efforts of the Chinese government and people on fighting (the virus) epidemic.” The WSJ identified the three journalists as Deputy Bureau Chief Josh Chin, reporter Chao Deng — both US citizens — and reporter Philip Wen, an Australian.

China turns to internet for food supplies amid virus fears: AP reports, demand for online food vendors has surged since China’s government told the public to stay home as part of the most sweeping anti-disease controls ever imposed.E-commerce is one of the few industries to thrive after anti-virus controls starting in late January closed factories, restaurants, cinemas, offices, and shops nationwide and extinguished auto and real estate sales.

Amid coronavirus, the world closes its doors to China: ‘I feel so isolated’: WSJ reports, Chinese people take 150 million international trips a year, whether to cut business deals, study abroad, or visit Santa’s reindeer. Canceled flights and quarantines are thwarting China’s ambitions to put the country at the center of commerce and culture.

@TomMackenzieTV: #Coronavirus update

-deaths hit 2,000

-infections 75,000

-WHO: China's quarantine measures likely delayed spread by 2-3 weeks

-Russia bans Chinese citizens

-#China pledges support for foreign-invested biz

David Goldman: Why the US is losing its war against Huawei: Huge intelligence failure has compounded Pentagon's flip-flop policy and led to key allies refusing to heed Trump's plea to avoid tech giant's 5G system.

US-India: Trump raises doubts over India trade deal ahead of the visit.

On tour, Pompeo courts Africa, to counter China: NYT reports, Secretary of State Mike Pompeo, on his first visit to sub-Saharan Africa, promotes partnerships with American companies, but finds China’s presence pervasive.

Globe and Mail: Waterfront Toronto endorses bulk of Sidewalk Labs smart-city innovations, but still uncertain of risks

Did the ‘techlash’ kill Alphabet’s city of the future? Fortune reports, Alphabet's Sidewalk Labs had a vision of an eco-friendly, tech-heavy tomorrow-land on Toronto's waterfront, but it's been drastically scaled back.

Nikkei: Xi's diplomatic calendar derailed as parliament set for delay

Coronavirus fight pushes back work on Japan visit and economic goals

National Review: The Chinese Communist Party struggles to contain the coronavirus fallout

Public-health crises are a test of government.

Yuen Yuen Ang: Is political change coming to China? Because President Xi Jinping has concentrated more power in his own hands than any Chinese leader since Mao Zedong, many within China and around the world have concluded that he is politically unassailable. But the coronavirus epidemic has come at the worst possible time, laying bare the fundamental weaknesses of Xi's rule. http://bit.ly/2HxFHGq 

China stifles foreign internet to control coronavirus coverage: FT reports, the government attacks on VPN services make it more difficult to access.

Coronavirus economics

International Energy Agency reported that global demand for oil is growing at its slowest rate since 2011

Gucci and Pernod, which have come to rely on Chinese demand, are sending out pessimistic messages

Chanel halts Beijing fashion show over virus fears

Apple became the first major US company to say it won’t meet its revenue projections for the current quarter due to the coronavirus outbreak

Facebook is canceling an annual marketing conference it was planning to host in San Francisco next month over concerns about the new coronavirus

Domestic coal consumption in China is down 40% since the start of February as are imports from South Korea

UK fashion sector reports there are already shortages of ‘buttons, bows, and yarn’

Dozens of export sailings to ship China-made goods to consumers from the US to Europe have been canned since the coronavirus crisis escalated last month. 

Volkswagen said it would postpone production restarts at some of its Chinese plants until next week

Coronavirus empties European cities of Chinese tourists: NYT reports, European tourism relies heavily on visitors from China. Quarantine measures have changed all that.

FT: EU rejects Facebook’s proposals for online regulation

Social media company warned that it will have to accept more responsibility for illegal content.

EU industry chief tells Facebook to adapt to EU, not other way round: Reuters reports, EU industry commissioner Thierry Breton said on Monday it was for Facebook to adapt to Europe's standards, not the other way round, as he criticized the US social media giant's proposed internet rules as insufficient.

EU threatens tougher hate-speech rules after Facebook meeting: DW reports, tech giants could face tougher penalties in the EU if they fail to adequately curb hate speech. The news comes ahead of expected proposals to curb the dominance of companies such as Facebook, Apple, Google, and Amazon.

Pompeo touts US investment as alternative to Chinese loans on Africa trip: AFP reports, Secretary of State Mike Pompeo denounced corruption and touted American business on Monday during the second leg of an African tour in Angola, where the government is seeking to claw back billions of dollars looted from state coffers.

US Navy Ohio-class sub test launches ballistic missile: Franz-Stefan Gady in The Diplomat reports, the US Navy conducted a ballistic missile test launch from a submerged submarine in the Pacific Ocean on February 12.

Trump effort to keep US tech out of China alarms American firms: NYT reports, the administration wants to protect national security by restricting the flow of technology to China. But technology companies worry it could undermine them instead.

@bobdavis187: The Trump administration is considering halting deliveries of some jet engines to China. GE could take a hit. The anti-China tech efforts reach beyond computer chips. But Trump hasn’t yet weighed in.

Richard Armitage and Zack Cooper: Japan and the US should co-develop an anti-ship cruise missile system: The time has come for Japan and the United States to embark on an ambitious co-development project: a long-range ground-based anti-ship cruise missile system. Such a program is strategically necessary, technically feasible, cost-effective and politically attractive — the allies should make it a top priority. Japan and the US face a rapidly growing and modernizing the Chinese military. As of January, China’s People’s Liberation Army Navy included 335 vessels and its coast guard fielded another 248 ocean-going ships, to say nothing of Beijing’s huge maritime militia. These numbers are increasing rapidly as China builds some of the world’s largest and most advanced naval combatants.

US Indo-Pacific Command leader hopes the Philippine security pact can still be saved: AP reports, the move by the Philippines to end a security pact that allowed US forces to train in the country potentially “challenged” future American operations with Filipino forces, a US admiral said last week.

The US Navy is planning to get serious about a next-generation large surface combatant: Defense News reports, the US Navy in 2021 is planning to kick off a five-year research, testing and design effort for its next generation of large surface combatant, according to Navy budget documents released Monday.

Munich Security Conference reveals frayed trans-Atlantic ties: Friend or foe? Ties between the two sides of the Atlantic are already complicated. At the Munich Security Conference, the differences were more apparent than ever, says Matthias von Hein.

Thomas Wright: The folly of retrenchment: Why America can’t withdraw from the world. https://fam.ag/38qSCWo 

A new Ireland: Last Saturday’s general election in the Republic of Ireland ended a solid, century-old political duopoly. Sinn Fein, the party best known as the political wing of the IRA, won more votes than Fianna Fail or Fine Gael. How and why did this happen, and what happens now? On Monocle's The Foreign Desk, Andrew Mueller is joined by Naomi O'Leary, Pat Leahy, and Siobhan Fenton. Listen here: http://bit.ly/2SxdpCf 

"I don’t believe that it will always mean plain sailing for Scotland. I just think it’s right to be independent to have the best chance." -- Nicola Sturgeon on Scottish independence.

Robert Shrimsley: Johnson has backed Cummings over Javid — and there will be a cost

Sajid Javid has become the first chancellor in 50 years not to deliver a Budget. 

Climate church: The Church of England has brought forward its net-zero-emissions target from 2045 to 2030. As Fortune 's Katherine Dunn reports: "In setting an operational net-zero target, it faces many of the same broad challenges facing governments, companies, and institutions alike: lingering uncertainty over the specifics of how the goal can be met, and how quickly; a lack of clarity on how much the total push will cost; and even how much carbon the Church currently emits."

The Church's main challenge will be in the form of heating. In addition to thousands of buildings devoted to housing and schools, the Church of England owns 16,000 churches—the vast majority protected as historically or architecturally significant buildings—and some of the world's best-known cathedrals, including Westminster Abbey.

@FinancialTimes: The UK is in talks with China about putting its troubled high-speed railway back on track after Beijing said it could build the line in only five years for less money and at a faster speed.

Britain and EU will ‘rip each other apart’ on trade: The Times reports, Britain’s chief Brexit negotiator will tell European leaders today that Boris Johnson is not looking for a “bespoke” trade deal, as France warned that talks between the sides will turn nasty. Jean-Yves Le Drian, the French foreign minister, said that the negotiators were likely to rip each other apart, with the two sides expected to fight particularly hard over fishing rights.

French minister talks tough before negotiations on the future relationship

Desmond Lachman: Europe is out of economic ammunition: The continent’s four biggest economies are all teetering. When they fall, they could take the world with them.

São Paulo is Latin America's power-house: A center of commerce, dynamism, and innovation, Brazil's largest state has a GDP bigger than Argentina. Last year its GDP grew 2.6%, twice the national average.

The United Nations says it needs $76 million "now" to fend off a once-in-a-generation locust infestation in East Africa that's decimated cropland, creating a food scarcity emergency