Latest news with #USTreasuryDepartment
AllAfrica
9 hours ago
- Business
- AllAfrica
Eye on rare earths, Trump handing Myanmar to China
The US Treasury Department's decision to lift sanctions on allies of Myanmar's military junta last Friday (July 25) marks a stark reversal of decades-long American foreign policy. These sanctions, imposed by the Biden administration on the anniversary of the 2021 coup, were a gesture of solidarity with Myanmar's pro-democracy movement and a country that has endured relentless bombing and repression at the hands of a brutal military regime. Lifting these sanctions marks the latest episode of 'Trump's craven war on Myanmar.' And they hand China yet another strategic victory in Southeast Asia. From a moral standpoint, this move is sadly unsurprising. Trump has already abandoned Ukraine to Russia's onslaught, advocated for the ethnic cleansing of Gaza and is actively dismantling what remains of American democracy. But this is not just a moral failure; it is a strategic blunder of the highest order. The rationale behind the policy shift remains opaque – the US government has offered no explanation. But the timing is curious. Just days earlier, Congress passed three bipartisan bills reaffirming support for Myanmar's resistance to military rule and pledging continued financial sanctions against the junta. Junta leader Senior General Min Aung Hlaing had also just lavished praise on Donald Trump during trade negotiations. Perhaps this is merely another instance of Trump's foreign policy being steered by personal flattery and narcissism. But the motives behind this move appear more calculated. Business lobbyists seem to have persuaded Trump that Myanmar's rare earth metals, vital for everything from smartphones to missile systems, could be a strategic asset for the US. Indeed, Myanmar has emerged as a key global supplier of these critical minerals, especially after China curtailed its own environmentally destructive mining operations and turned to Myanmar to fill the gap. But here's the catch: Myanmar's rare earth mines are not controlled by the junta. They are under the authority of powerful ethnic armed organizations (EAOs) that govern territory along the Chinese border. The Kachin Independence Organization (KIO), one of the world's oldest rebel movements, seized what may be the world's largest heavy rare earth mines last year. This development has not gone unnoticed in Washington. Some lobbyists are now advancing two proposals: either the US should work directly with the KIO to extract these resources, or it should broker a bilateral peace deal between the KIO and the junta to enable joint exploitation. The first idea is logistically absurd. Kachin State is landlocked and surrounded by junta-controlled territory, war zones with the presence of a myriad of other armed groups, remote regions of northeastern India, and China. The second proposal is even more misguided. It reflects the worldview of DC business lobbyists, who reduce a decades-old political movement to a mere business enterprise. If the KIO were motivated solely by profit, it would have already caved to Chinese pressure for a bilateral ceasefire. It has not, because its goals are political, not commercial. The KIO has long fought for autonomy and has been a key supporter of the countrywide resistance against the junta. Short of international recognition and the sale of sophisticated weapons, the US has little to offer that would make such a deal worthwhile. Certainly not enough to risk alienating China, whose relationship the KIO depends on for survival. Meanwhile, the sharpest increase in rare earth mining is occurring in areas controlled by the United Wa State Army (UWSA), Asia's most powerful non-state army. The group, which emerged from the remnants of the Communist Party of Burma, remains armed and supported by Beijing. The idea that the US could gain a meaningful foothold in Myanmar's rare earth sector is not just naïve; it is nonsensical. Worse, it risks playing directly into China's hands. Beijing already wields enormous influence over Myanmar. The brutal USAID cuts earlier this year have further strengthened China's position to manipulate Myanmar politics. The lifting of sanctions now risks cementing this dominance. Myanmar's generals will welcome the change. They will use it to legitimize their planned sham elections and bolster their propaganda, both at home and abroad. But they will not abandon China, which remains their most reliable source of weapons, funding and diplomatic cover. Meanwhile, the country's resistance movement, now controlling more than half of Myanmar's territory, has been left in the cold. Despite promises of non-lethal aid under the Burma Act, the Biden administration failed to deliver. Western support in general has been largely symbolic, limited to patchy sanctions, humanitarian relief, and words of sympathy. And now, even that symbolic support is being rolled back. After years of empty rhetoric, Myanmar's resistance fighters have little reason to trust the West. But this latest betrayal may force them to forge closer relations with China. This won't happen overnight. Beijing remains wary of the National Unity Government (NUG), formed by ousted lawmakers from the National League for Democracy. But among Myanmar's 20-plus EAOs, which field the strongest resistance armies, the calculus might shift. Some, like the UWSA, have long-standing ties to China. Others, like the KIO, have historically looked West. But the KIO is not a monolith. Like other EAOs, it is a complex political organisation comprising leaders with differing perspectives and strategic priorities. To some KIO leaders, reports that Trump plans to partner directly with the KIO in extracting rare earth minerals will surely sound appealing. We can expect them to use it in their own diplomatic strategy, including as leverage in relation to China. Ultimately, however, the KIO understands the futility of such misguided proposals, especially when they serve to ease pressure on the junta. Here too, Trump's policy then risks sidelining pro-Western voices and empowering those who favour closer ties with Beijing. This is the real danger of Trump's foreign policy. It is not simply immoral or incoherent. But it accelerates a tectonic shift in Southeast Asia, one that will leave China stronger, the US weaker and the people of Myanmar more isolated than ever. Dr David Brenner is associate professor in international relations at the University of Sussex. He is the author of Rebel Politics and has published widely on Myanmar's conflict and ethnic armed organizations.
AsiaOne
a day ago
- Politics
- AsiaOne
US senator wants Elon Musk to block use of Starlink by financial fraud groups in Southeast Asia, World News
WASHINGTON — A Democratic senator on Monday (July 28) urged SpaceX CEO Elon Musk to block transnational criminal groups in Southeast Asia from using Starlink satellite internet service to commit fraud against Americans. Senator Maggie Hassan cited recent reports that Starlink is being used to facilitate fraud against Americans by a broad range of transnational criminal organisations operating "scam compounds" in Southeast Asia. The US Treasury Department's Financial Crimes Enforcement Network said these groups defrauded Americans out of billions of dollars, she added. "Scam networks in Myanmar, Thailand, Cambodia, and Laos, however, have apparently continued to use Starlink despite service rules permitting SpaceX to terminate access for fraudulent activity," Hassan wrote in a letter to Musk seen by Reuters. "SpaceX has a responsibility to block criminals from using the service to target Americans." SpaceX did not immediately respond to a request for comment. For years, criminal networks have trafficked hundreds of thousands of people to scam compounds across Southeast Asia, including many along the Thai-Myanmar border, where victims are forced to work in illegal online schemes, according to the United Nations. "While most people have probably noticed the increasing number of scam texts, calls, and emails they're receiving, they may not know that transnational criminals halfway across the world may be perpetrating these scams by using Starlink internet access," Hassan wrote. Since February, Thailand has halted electricity, internet, and fuel supplies to five Myanmar border areas, including Myawaddy, in a bid to disrupt the scam centres, which have become an escalating regional security concern. International pressure to shut down the scam centres intensified following the abduction of Chinese actor Wang Xing, who was kidnapped after arriving in Thailand in January. He was later rescued by Thai police, who located him across the border in Myanmar. Criminal networks, mainly emanating from China, are known to run several of these scam centres, including those in the Myawaddy region, according to the United States Institute of Peace. [[nid:720595]]
New Straits Times
2 days ago
- Politics
- New Straits Times
US senator wants Musk to block use of Starlink by financial fraud groups in Southeast Asia
WASHINGTON: A Democratic senator on Monday urged SpaceX CEO Elon Musk to block transnational criminal groups in Southeast Asia from using Starlink satellite internet service to commit fraud against Americans. Senator Maggie Hassan cited recent reports that Starlink is being used to facilitate fraud against Americans by a broad range of transnational criminal organisations operating "scam compounds" in Southeast Asia. The US Treasury Department's Financial Crimes Enforcement Network said these groups defrauded Americans out of billions of dollars, she added. "Scam networks in Myanmar, Thailand, Cambodia, and Laos, however, have apparently continued to use Starlink despite service rules permitting SpaceX to terminate access for fraudulent activity," Hassan wrote in a letter to Musk seen by Reuters. "SpaceX has a responsibility to block criminals from using the service to target Americans." SpaceX did not immediately respond to a request for comment. For years, criminal networks have trafficked hundreds of thousands of people to scam compounds across Southeast Asia, including many along the Thai–Myanmar border, where victims are forced to work in illegal online schemes, according to the United Nations. "While most people have probably noticed the increasing number of scam texts, calls, and emails they're receiving, they may not know that transnational criminals halfway across the world may be perpetrating these scams by using Starlink internet access," Hassan wrote. Since February, Thailand has halted electricity, internet, and fuel supplies to five Myanmar border areas, including Myawaddy, in a bid to disrupt the scam centres, which have become an escalating regional security concern. International pressure to shut down the scam centres intensified following the abduction of Chinese actor Wang Xing, who was kidnapped after arriving in Thailand in January. He was later rescued by Thai police, who located him across the border in Myanmar. Criminal networks, mainly emanating from China, are known to run several of these scam centres, including those in the Myawaddy region, according to the United States Institute of Peace.
Korea Herald
3 days ago
- Business
- Korea Herald
Final week of US-Korea trade talks sees shipbuilding as key
Seoul is racing to finalize a tariff deal with Washington before the Aug. 1 deadline, as Finance Minister Koo Yun-cheol prepares to meet US Treasury Secretary Scott Bessent on Thursday in a bid to avert a 25 percent tariff on Korean exports, including autos. According to the industry and government sources on Sunday, the meeting between Koo and Bessent has been rescheduled for Thursday, likely at the US Treasury Department. Their meeting was initially planned for Friday with Korea's Trade Minister Yeo Han-koo and US Trade Representative Jamieson Greer, but was postponed by the US side. Korea's industry and trade chiefs, who are currently visiting the US, will remain there to continue last-minute high-level negotiations. To their US counterparts, they have outlined plans for cooperation in key strategic manufacturing sectors such as semiconductors, shipbuilding and batteries, while strongly urging tariff reductions on items such as automobiles. The Korean government has presented a revised proposal that includes sensitive agricultural and livestock products, going further than its initial offer to address US concerns. Washington, however, is reportedly pressuring Seoul for greater concessions. The tight schedule remains a major hurdle. The US is to hold trade talks with the European Union on Sunday, and is set to conduct high-level trade meetings with China on Monday and Tuesday, leaving only Wednesday and Thursday available for negotiations with Korea. Last week, Japan secured a reduction in tariffs on its auto exports to the US, with rates falling from 27.5 percent to 15 percent, after offering a $550 billion investment package. The deal has increased pressure on Korea, whose auto industry still faces the full 25 percent tariff. As Japan, Korea's key rival in the sector, gains an upper hand, Seoul is reportedly preparing a $100 billion package, along with additional commitments, to remain competitive Given that the US' ultimate goal is to revive its manufacturing sector, Seoul is focusing on leveraging industrial cooperation, particularly in the shipbuilding sector, where Korea holds a competitive edge. 'We confirmed the US has a strong interest in shipbuilding and agreed to work on mutually acceptable solutions, including bilateral cooperation in the sector," Korea's presidential office said Saturday. Trump has repeatedly stressed the importance of strengthening the US' shipbuilding industry and issued an executive order in April aimed at revitalizing the sector and curbing China's maritime dominance. Experts warn that the US tariffs, if maintained at the threatening 25 percent level, are expected to hit Korea's manufacturing sector the hardest. It accounts for 27.6 percent of Korea's economy — well above the OECD average — and exports make up 44 percent of the nation's gross domestic product. The US auto tariffs have already impacted Korea's leading automakers. Hyundai Motor and Kia both reported weaker earnings in the April-June period: Kia's operating profit plunged 24.1 percent, while Hyundai's figure dropped 15.8 percent. The Korea Institute for International Economic Policy has warned that Korea's real GDP could shrink by up to 0.4 percent if the US tariffs are implemented as initially planned. 'If the US' 'reciprocal' tariffs of 25 percent take place, Korea's real GDP can decrease by 0.3-0.4 percent even after the economy stabilizes," the institute said in a public hearing in June. With Japan recently securing a tariff reduction to 15 percent, Korea's growth prospects are expected to worsen under a higher rate, given that the two countries have similar export portfolios to the US. Korea's already stagnant growth outlook — currently projected at below 1 percent — would also likely face a further downgrade if the 25 percent reciprocal tariff is imposed. According to the Bank of Korea on July 24, the country's growth rate is likely to remain around the May forecast of 0.8 percent, in the case that the tariff rate is lowered to 15 percent, similar to Japan's. The rate could fall to zero if the tariff is set at 25 percent. US President Donald Trump said that his administration will have most of its trade deals with countries finished by Aug. 1. The president also said his administration might send letters to close to 200 countries informing them of their tariff rate, which he said means, "They have a deal. It's done."
Hindustan Times
4 days ago
- Business
- Hindustan Times
US lifts some Myanmar sanctions, says no link to general's letter to Trump
The United States has lifted sanctions designations on several allies of Myanmar's ruling generals that had been imposed under the former Biden administration. Trump administration officials said there was no link between the letter and the sanctions decision.(AP) The US Treasury Department announcement on Thursday came two weeks after the head of Myanmar's ruling junta praised President Donald Trump in a letter and called for an easing of sanctions in a letter responding to a tariff warning. Administration officials said there was no link between the letter and the sanctions decision. A notice from the US Treasury Department said KT Services & Logistics and its founder, Jonathan Myo Kyaw Thaung; the MCM Group and its owner Aung Hlaing Oo; and Suntac Technologies and its owner Sit Taing Aung; and another individual, Tin Latt Min, were being removed from the U.S. sanctions list. The Treasury Department declined to say why the individuals had been removed from the list. In a statement to Reuters, Deputy Treasury Secretary Michael Faulkender said: "Individuals, including in this case, are regularly added and removed from the Specially Designated Nationals and Blocked Persons List (SDN List) in the ordinary course of business." LETTER ON TARIFFS Early this month, as part of a slate of import tariffs ordered by Trump, Myanmar was notified of a 40% tariff to take effect on August 1. On July 11, Myanmar's ruling military general, Min Aung Hlaing, responded by proposing a reduced rate of 10% to 20%, with Myanmar slashing its levy on U.S. imports to a range of zero to 10%. He said he was ready to send a negotiating team to Washington if needed. "The senior general acknowledged the president's strong leadership in guiding his country towards national prosperity with the spirit of a true patriot," Myanmar state media said at the time. Min Aung Hlaing also asked Trump "to reconsider easing and lifting the economic sanctions imposed on Myanmar, as they hinder the shared interests and prosperity of both countries and their peoples." A senior Trump administration official said the decision to lift sanctions was unrelated to the general's letter. "The decision to lift sanctions reflects a lengthy process that began in the prior administration," said the official, speaking on condition of anonymity. "There is no connection between these decisions and the letter." White House spokeswoman Anna Kelly said that sanctions delistings "were collected over the last year in accordance with standard Treasury course of business." John Sifton, Asia advocacy director of Human Rights Watch, called the sanctions move "extremely worrying." "The action suggests a major shift is underway in U.S. policy, which had centred on punitive action against Myanmar's military regime," he said in emailed comments. Myanmar's military overthrew a democratically elected government in 2021 and has been implicated in crimes against humanity and genocide. Kelly rejected the Human Rights Watch comments as "fake news," and a second senior Trump administration official said the sanctions decisions were not indicative of a broader shift in U.S. policy toward Myanmar. ADDED TO SANCTIONS LIST IN 2022 KT Services & Logistics and Jonathan Myo Kyaw Thaung were added to the sanctions list in January 2022 under the administration of U.S. President Joe Biden in a step timed to mark the first anniversary of the military seizure of power in Myanmar that plunged the country into chaos. Sit Taing Aung and Aung Hlaing Oo were placed on the sanctions list the same year for operating in Myanmar's defence sector. Tin Latt Min, identified as another close associate of the military rulers, was placed on the list in 2024 to mark the third anniversary of the coup. Representative Ami Bera, the top Democrat on the House Foreign Affairs Asia subcommittee, in a statement to Reuters, called the decision to lift sanctions against the individuals "a bad idea" that "goes against our values of freedom and democracy." Other U.S. sanctions on Myanmar generals, including on Min Aung Hlaing, remain in place. Myanmar is one of the world's main sources of sought-after rare earth minerals used in high-tech defence and consumer applications. Securing supplies of the minerals is a major focus for the Trump administration in its strategic competition with China, which is responsible for 90% of rare earth processing capacity. Most of Myanmar's rare earth mines are in areas controlled by the Kachin Independence Army (KIA), an ethnic group fighting the junta, and are processed in China.
