logo
Philippines says China Coast Guard fired water cannon, 'sideswiped' government vessel

Philippines says China Coast Guard fired water cannon, 'sideswiped' government vessel

MANILA: The Philippines fisheries bureau accused the China Coast Guard on Thursday of firing water cannon and sideswiping a Filipino government vessel while it collected sand for a research project.
China and the Philippines have engaged in months of confrontations in the contested South China Sea, which Beijing claims almost entirely, despite an international ruling that the assertion has no legal basis.
Wednesday's encounter happened near a group of small sandbanks in the Spratly Islands where two Filipino ships were collecting sand samples "as part of a marine scientific research initiative", the Bureau of Fisheries and Aquatic Resources said in a statement.
"At approximately 0913H, CCG vessel 21559 water cannoned and sideswiped the BRP Datu Sanday (MMOV 3002) twice ... putting at risk lives of its civilian personnel."
It was the first time water cannon were used against Philippine vessels near the disputed Sandy Cay reef, the bureau added.
The "aggressive interference, dangerous manuevers, and illegal acts" damaged the Philippine ship's port bow and smokestack, according to the bureau's statement.
The Philippines scientific team was still able "to complete its operations in Pag-Asa Cays 1, 2 and 3", the statement said, using the Philippine term for the Sandy Cays.
China's foreign ministry spokeswoman Mao Ning said she was not aware of the incident. "What I can tell you is that the Chinese Coast Guard always enforces the law in accordance with laws and regulations," she said.
Last month, the Philippines slammed as "irresponsible" a Chinese state media report claiming that Sandy Cay 2 was put under China's control.
Chinese state broadcaster CCTV said that the country's coast guard had "implemented maritime control" over Tiexian Reef in mid-April.

Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

The world's auto supply chain is in the hands of a few Chinese bureaucrats
The world's auto supply chain is in the hands of a few Chinese bureaucrats

Time of India

time18 minutes ago

  • Time of India

The world's auto supply chain is in the hands of a few Chinese bureaucrats

In a hulking grey building just east of Tiananmen square in Beijing, a small team in China's Ministry of Commerce is deciding the fate of the global auto industry , one rare earth magnet export permit at a time. China holds a near-monopoly on rare earth magnets - a crucial component in electric vehicle motors - and it added them to an export control list in April as part of its trade war with the United States, forcing all exporters to apply to Beijing for licenses. It falls to the Bureau of Industrial Security and Import and Export Control - which is part of China's Ministry of Commerce - to review export permits for the rare earth magnets, which are vital for car motors, wind turbines and even U.S. F-35 fighter jets. While dozens of licences have been issued since late April, executives, lobbyists and diplomats say they are only a small fraction of the applications that have flooded in from automakers, semiconductor companies and aerospace firms around the world since the tougher export controls were introduced. Washington says delays in issuing export licences show China is reneging on commitments made during trade talks in Geneva last month and it has retaliated with export curbs on plane engine parts and other equipment. U.S. President Donald Trump and Chinese President Xi Jinping held talks by phone on Thursday as the escalating dispute over China's rare earth stranglehold threatened to derail the fragile trade truce agreed between the two superpowers. When the new rare earth magnet measures came in, the export control bureau had a total of just 30 staff, though this has since been doubled to around 60, according to two sources who were briefed on a meeting between the ministry and Chinese and European semiconductor firms last week. "We appreciate that MOFCOM has increased its resources to address demand and they're working hard and long hours on these issues," said Adam Dunnett, Secretary General of the European Chamber of Commerce in China, referring to the ministry. "But the reality is this is having a huge impact on a wide variety of sectors. It's something that could have been better planned and rolled out," he said. According to personnel records posted to the Ministry of Commerce's website in June 2024, there are only three senior officials within the bureau who can approve the export permits. The ministry's website lists the export licence bureau's office hours as: Weekdays, 8:30-11:30 a.m., 14:00-17:00 p.m. Reuters was unable to determine current staffing levels or whether more officials are now able to approve applications. The Ministry of Commerce did not respond to questions from Reuters on this subject. Chokepoint The global alarm over shortages underscores the enormous leverage China has acquired through its near-monopoly on rare earth production. It also reveals a complex bureaucratic process that has gone from checkpoint to chokepoint. "The process for our suppliers to apply for export licences for various rare earths ... since April, is complex and time-consuming, partly due to the need to collect and provide a lot of information," a spokesperson for Bosch, the German engineering and technology multinational, said last month. A Chinese-language guide to the process published by the Ministry in late March runs to almost 14,000 Mandarin characters. European auto suppliers alone have filed hundreds of requests since early April, with only about a quarter granted. These applications can range from dozens to hundreds of pages, according to sources who have either filed requests or been briefed about them. Public Ministry of Commerce guidelines require information including technical product descriptions, signed contracts. Descriptions of production facilities and photos of products are also encouraged. China's stated aim is to ensure dual-use items don't end up in military equipment, but officials are often overly cautious even though many applications clearly state commercial use, Dunnett said. "Another concern we have heard from some companies is that they are being asked for sensitive and excessive information that is part of their intellectual property which has led to delays in their applications," Dunnett added. While applications are meant to be processed in 45 working days, the ministry says applications related to national security will take longer, without defining how long. Strategic excuse Cory Combs, head of critical mineral and supply chain research at Trivium China, a policy research group, said it was not clear whether the delays were due to bureaucratic inertia or intentional weaponisation. "We do expect these applications to U.S. end-users to be reviewed on par with other countries and approved whenever they're not for military use," he said. "The issue here is that, is it quick enough for the Trump administration to believe that Beijing has not reneged on the Geneva agreement?" Some U.S. industry figures believe that the bureaucratic backlog is a "strategic excuse". "China can staff up as fast as they want, if they wanted to," said a source from the U.S. rare earths industry who declined to be named for sensitivity reasons. In public, Chinese officials have said the export controls apply to all countries, the implication being that they do not count as a U.S.-specific countermeasure under the Geneva agreement. Foreign ministry spokesperson Lin Jian said on May 30 that the rare earth export controls are "non-discriminatory and not targeted at any specific country". During the Geneva talks, however, China privately admitted that the rare earth export controls qualified as non-tariff countermeasures, according to a source briefed on the talks. Rare earths remain a core part of ongoing U.S.-China discussions, the person said. China's foreign ministry did not immediately respond to a request for clarification. Chinese scholars openly admit that the rare earth export controls are retaliation for U.S. chip curbs. "It's a short-term form of leverage which doesn't hurt China, as the rare earths in question have relatively low monetary value," said Zhu Junwei, an international relations scholar at the Grandview Institution, a Chinese think-tank.

Now China's ultra-cheap EVs are scaring China
Now China's ultra-cheap EVs are scaring China

Mint

time22 minutes ago

  • Mint

Now China's ultra-cheap EVs are scaring China

China's ability to make electric vehicles (evs) cheaply has caused angst in countries with big carmakers, prompting governments to investigate China's subsidies for the sector and to erect trade barriers. Now, though, it is China's own government that is worrying about how cheap its producers' evs are. The race to the bottom shows no sign of letting up, and the industry has become emblematic of some of the broader problems facing the economy. On May 23rd China's biggest ev manufacturer, byd, caused shockwaves when it slashed the cost of 22 electric and hybrid models. Now the starting price of its cheapest model, the Seagull, has fallen to a mere 55,800 yuan ($7,700). The move came just two years after byd had originally unveiled the electric hatchback, at a then astonishingly low cost of 73,800 yuan. The latest move triggered official concern about how low prices could go in the world's largest car market. On May 31st China's industry ministry told Xinhua, the state-run news agency, that 'there are no winners in the price war, let alone a future." The ministry vowed to curb cut-throat competition, which it said harmed investment in r&d, and could cause safety problems. On June 1st People's Daily, the Communist Party mouthpiece, argued that low-priced, low-quality products could harm the reputation of 'made-in-China" goods. The backlash comes as leaders crack down on unproductive, self-harming competition between firms and local governments that has created overcapacity and lowered profits. Their moves are part of a broader effort to rebalance the economy. 'Recent developments suggest the old supply-driven model remains intact," Robin Xing, Morgan Stanley's chief China economist, wrote in a note. byd's shares fell after the price cuts and the official pronouncements, amid concerns that the price war will be unsustainable. But to cling to market share, other carmakers cut their own prices. Wei Jianjun, chairman of Great Wall Motor, one of the largest, called the industry unhealthy and invoked the collapse of the property market as a cautionary tale. 'Now, the Evergrande of the automobile industry already exists, but it just hasn't exploded yet," he told Sina Finance, a news outlet, referring to the world's most-indebted developer. A byd executive responded that Mr Wei's comments were 'alarmist". The situation is not helped by the fact that there are 115 Chinese ev brands, according to Jato Dynamics, a research firm. Only a few, including byd, make any money and are expected to survive in the long run. Brutal price wars are a common affliction across Chinese industries. By the end of last year's third quarter, nearly 25% of China's listed firms were in the red, more than double the proportion five years ago. Panic in Detroit Consolidation will take time and will be painful. byd is well positioned, given its scale and vertical integration. The firm controls everything from mining rights of minerals it needs to build its own batteries to cargo ships for transporting its cars to foreign markets. In November it sparked fears of even fiercer competition when it pressed suppliers to cut prices by 10%. Suppliers may now be squeezed further. That could mean layoffs and less money for car workers to spend, at a time when the government is playing up the need to boost weak domestic demand to help absorb the shock of the trade war with America. An increasingly tough market at home will fuel Chinese car exports. Reuters reports that byd plans to sell over half of its cars overseas, especially in Latin America and Europe, by 2030. That would be a big jump. China accounted for about 90% of the firm's 4.3m car sales last year. But the higher prices that evs command abroad could offset the ever-smaller margins in China. And it is making inroads in spite of stronger trade headwinds. In April, despite the eu's increased tariffs on Chinese evs, byd sold more of them in Europe than Tesla, an American rival, for the first time, according to Jato Dynamics Though the price war is at its worst in China, its ramifications will be felt worldwide. Cheaper evs would be a silver lining, but that will be little comfort for governments already anxious about China exporting overcapacity to their markets. More trade tensions are inevitable.

Despite trade war, US drug companies turn to China for key cancer treatments
Despite trade war, US drug companies turn to China for key cancer treatments

Mint

timean hour ago

  • Mint

Despite trade war, US drug companies turn to China for key cancer treatments

The drug industry has spent months going along with the Trump administration's efforts to move manufacturing and investment into the U.S., and to disentangle the U.S. and Chinese economies. A long list of big pharmaceutical firms have committed tens of billions of dollars to factories and research facilities in the U.S. In the past few months, though, U.S. pharma companies have simultaneously supercharged their interest in China-based biotechs, announcing what are likely to be the biggest deals ever for the rights to experimental medicines invented by Chinese companies. So far, the Trump administration has been silent on the deals, which are worth around $25 billion in upfront and potential milestone payments and seem to fly in the face of White House policy. The deals could one day result in new options for sick patients, but they also pose a major risk to U.S. biotech firms. The domestic drug pipeline relies on capital from Big Pharma, and now those funds may be going to start-ups in Shanghai, rather than Cambridge, Mass. The recent deals follow a successful trial result last year by U.S. biotech Summit Therapeutics of a new immunotherapy cancer drug it licensed from Chinese firm Akeso. In the trial, the drug outperformed Merck's top-selling Keytruda, raising hopes that it could prove a major advancement in cancer treatment. Since then, Big Pharma companies have rushed to get their own drugs to compete with Summit's product. There was one deal in November, when Merck licensed an experimental drug from a Chinese drugmaker for around $500 million up front and another $2.7 billion in potential milestone payments. The biggest deals have come in just the past two weeks. In mid May, Pfizer said it would pay the Chinese biotech 3SBio $1.3 billion up front for its own competitor to the Summit drug, plus billions more in potential milestone payments. Pfizer is also making a $100 million equity investment in 3SBio. This past week, Bristol Myers Squibb said it would pay $3.5 billion over the next three years, plus billions more in potential milestone payments, for half the rights to a similar drug developed by a Chinese company called Biotheus, which German biotech BioNTech acquired a few months ago. These numbers would be big for any biotech licensing deal—the drugs remain far from approval. For Chinese-developed drugs, the payment sizes are unprecedented. 'These are pretty sophisticated companies allocating major capital here," says Craig Garthwaite, a professor and director of the program on healthcare at Northwestern University's Kellogg School of Management, of the latest deals. 'It's demonstrating the validity of the science." It's all happening while Big Pharma is doing its best to show the Trump administration that it can adapt to the president's agenda, as the industry seeks to head off threatened tariffs and drug price limits. Eli Lilly, Johnson & Johnson, Bristol Myers, and others have all announced tens of billions of dollars in planned U.S. investments in manufacturing and research facilities this year. The White House didn't respond to a request for comment. Washington has been increasingly anxious about the rapid development of China's biotech ecosystem. The Biosecure Act, which hasn't passed Congress, targets complex drug manufacturing in China, while a recent report commissioned by Congress called on the U.S. to take 'swift action" to compete with the Chinese biotech sector. Amid those stalled efforts, the pace of Chinese biotech innovation is picking up. Until recently, the U.S. drug industry had largely seen Chinese biotechs as a source for cheaper 'me too" assets, which echo but don't duplicate existing medicines. Now, with the latest cancer drug deals, Chinese companies are innovating a new class of drugs that every Big Pharma firm seems to think it needs to get in on. The Summit drug that got investors, analysts, and companies excited last year is known as a PD-1/VEGF bispecific antibody, which combines two proven cancer-fighting tools. Daina Graybosch, an analyst at Leerink Partners, says that companies in the U.S. and Europe have been experimenting with similar combinations, but never tested them in humans. That's because early-stage human tests are cheaper and easier to run in China than the U.S. All but the largest U.S. biotechs generally develop just one or two experimental medicines at a time, while Chinese biotechs of a similar size 'could have a dozen" different drugs in trials, according to Cantor Fitzgerald analyst Li Watsek. The combination cancer drugs ultimately weren't exciting enough for the U.S. biotechs to prioritize. But Chinese companies moved forward with different variations. When Summit and its Chinese partner got promising results on an antibody that combined PD-1 and VEGF, there were multiple other Chinese biotechs with their own PD-1/VEGF combinations ready to of this is great news for the U.S. biotech sector, which has been battered in recent years by declining share prices, cash shortfalls, and other challenges. Over the past 12 months, the SPDR S&P Biotech exchange-traded fund is down 11.5%, versus a gain of 11.7% for the S&P 500. Watsek says that part of the problem for investors is that it's hard to know what Chinese biotechs are actually working on. 'Right now it's a little bit of a black box, because a lot of these Chinese companies, they may have assets, but it's impossible to track," she says. 'There could be a dozen molecules that are in development that you may not have even heard of." Over the long term, the worries get potentially more complex. 'At some point, it's going to get terminal velocity, and we're going to have a very dangerous competitor next to us," says Joseph Grogan, a senior policy official during the first Trump administration who is now a nonresident senior scholar at the USC Schaeffer Institute. 'If the Chinese establish the flywheel of the ecosystem that we built—of private-sector companies, research and development, government support, and strong but prudent regulatory foundation—then we're cooked." Write to Josh Nathan-Kazis at

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into the world of global news and events? Download our app today from your preferred app store and start exploring.
app-storeplay-store