Aurelia Butler

Here is a detailed list of U.S. allegations against the company and its parent, Bytedance.-TikTok management is beholden to the Chinese governmentFBI Director Chris Wray said in November that TikTok poses a national security risk, adding that Chinese companies are required to essentially “do whatever the Chinese government wants them to in terms of sharing information or serving as a tool of the Chinese government.”Members of Congress in March complained that the Chinese government has a “golden share” in ByteDance, giving it power over TikTok. TikTok has said “an entity affiliated with the Chinese government owns 1% of a ByteDance subsidiary, Douyin Information Service,” and says the holding “has no bearing on ByteDance’s global operations outside of China, including TikTok.” -TikTok could be used to influence AmericansThe FBI’s Wray has also said U.S. operations of TikTok raise national security concerns because the Chinese government could harness the video-sharing app to influence users or control their devices.Risks include “the possibility that the Chinese government could use [TikTok] to control data collection on millions of users or control the recommendation algorithm, which could be used for influence operations,” Wray told U.S. lawmakers.National Security Agency Director Paul Nakasone said in March he was worried about the data TikTok collects, the algorithm used to disperse information to users, and “the control of who has the algorithm.”He asserted the TikTok platform could enable sweeping influence operations because TikTok could proactively influence users and could also “turn off the message.” TikTok says it “does not permit any government to influence or change its recommendation model.”-TikTok will hand American’s data over to Chinese government officialsLawmakers have alleged that the Chinese government, under a 2017 National Intelligence law, can force ByteDance to share TikTok user data. TikTok argues that because it is incorporated in California and Delaware, it is subject to U.S. laws and regulations.TikTok’s chief executive has said the company has never, and would never, share U.S. user data with the Chinese government -TikTok use harms children’s mental healthIn March 2022 eight states, including California and Massachusetts, launched a probe into whether TikTok causes physical or mental health harm to young people and what the company knew about its role in those harms.The investigation focuses on how TikTok boosts young user engagement, including allegedly increasing the duration of time spent on the platform and how often it is used.TikTok says it has taken numerous steps “to help ensure that teens under 18 have a safe and enjoyable experience on the app, and many of these measures impose restrictions that don’t exist on comparable platforms.”-TikTok spies on journalistsIn December, ByteDance said some employees improperly accessed TikTok user data of two journalists. ByteDance employees accessed the data as part of an unsuccessful effort to investigate leaks of company information earlier this year, and were aiming to identify potential connections between two journalists, a former BuzzFeed reporter and a Financial Times reporter, and company employees.A person briefed on the matter told Reuters that four ByteDance employees who were involved in the incident were fired, including two in China and two in the United States. Company officials said they were taking additional steps to protect user data. More

President Xi Jinping is stepping up efforts to boost China’s influence in Central Asia by hosting his first in-person regional summit dedicated to tightening ties with an area traditionally dominated by Russia.With Moscow weakened and distracted by the war in Ukraine, the two-day summit that starts Thursday is a chance for Beijing to push for stronger economic and political relationships with five strategically important former Soviet republics — Kazakhstan, Kyrgyzstan, Tajikistan, Uzbekistan and Turkmenistan.“I don’t think China is going to replace the significance of Russia in Central Asia in a very short period of time but [competition for influence] has already started,” said Chienyu Shih, associate research fellow at Taiwan’s Institute for National Defense and Security Research. “They are in a kind of silent competition mode.”China has played up the symbolism of the summit, which offers Xi a chance to showcase his skills as a statesman even as Japanese prime minister Fumio Kishida prepares to host the G7 in Hiroshima this weekend. China is holding the meeting in Xi’an, the ancient Chinese capital from where the Silk Road trade route once snaked through Central Asia on its way to Europe. This year also marks the 10th anniversary of Xi’s launch of his proposed modern-day Silk Road equivalent, the $1tn Belt and Road Initiative.

Chinese police patrol the border with Tajikistan © A Ran/Costfoto/Future Publishing/Getty Images

Beijing views Central Asia as critical to the security of its politically sensitive western Xinjiang region, where it is has been accused of suppressing the indigenous Muslim Uyghur population. The area is also an important source of energy and a conduit for land-based trade with Europe.Russia has begun to lose influence across the former Soviet Union amid widespread disquiet over the war in Ukraine. Moscow has also lost its traditional peacekeeper role, being notably absent during border skirmishes between Kyrgyzstan and Tajikistan last year.Kazakhstan, one of Russia’s closest partners, has refused to support the invasion or recognise Moscow’s annexation of Ukrainian territory and last year even signed an intelligence-sharing agreement with Turkey, a member of the Nato alliance.In a sign Russia wants to retain its sway, President Vladimir Putin invited all five Central Asian leaders to attend the annual Victory Day parade celebrations in Moscow last week — some at the last minute.The hasty organisation indicated most of the leaders had “initially politely avoided the trip”, but that “when Putin called, it became not just difficult, but dangerous to say no”, Temur Umarov, a fellow at the Carnegie Russia and Eurasia Center, wrote in a column.

Vladimir Putin, second from left, with the presidents of Kazakhstan, Tajikistan and Uzbekistan at the Victory Day parade in Red Square © Sefa Karacan/Anadolu Agency/Getty Images

Central Asia’s economies have boomed partly on an influx of investment from Russian individuals and companies following the outbreak of hostilities, according to the European Bank for Reconstruction and Development. Some Central Asian countries are benefiting from increased remittances from migrant workers in Russia as labour becomes more scarce there.Central Asian countries are caught “between two fires”, worried about being swept up in Putin’s war but unable to resist the economic benefits from remaining one of Russia’s few windows to the world, Umarov wrote. “Anything that looks like the region is leaning one way or the other shouldn’t be taken as total support for Russia or a break with it,” he wrote.The Xi’an summit is China’s third with the so-called C5 countries, but the previous meetings were held online due to the coronavirus pandemic.Beijing’s increased focus on Central Asia dates back to 2012, when Xi launched a “March West” strategy, according to Yang Jiang, senior researcher at the Danish Institute for International Studies. The following year, Xi launched the BRI in Kazakhstan.China’s trade with the five countries totalled $70.2bn last year while nearly 80 per cent of China-Europe freight trains passed through the region, Chinese state media said. China is the biggest buyer of Central Asian gas. The region also has reserves of rare earth metals, especially in Kazakhstan. “China can play a key role in the mining and extraction of these reserves,” said Yunis Sharifli, a research fellow at the Central Asia Barometer, a research body. Analysts said China might offer to help the region with green energy projects, the building of 5G mobile networks and the expansion of road and rail links. Another plan that could be discussed is a proposal for China, Kyrgyzstan and Uzbekistan to build a $4.1bn rail link that would open up rail-only travel to Europe. This would avoid going through Russia, which is subject to western sanctions due to the full-scale invasion of Ukraine, the analysts said.While China would not try to duplicate Russia’s military presence — Moscow retains bases in the region — analysts said Xi might use the summit to announce greater security co-operation. China already co-operates with Tajikistan to prevent militants, weapons and drugs from crossing the border into Xinjiang. Xi could try to take this further with a proposal for a regional security plan as China did with Pacific islands last year, although that move ended in disappointment for Beijing.“China has always been mindful of Russian sensitivities there and it will be interesting to see how far Xi goes,” said Elizabeth Wishnick, senior research scientist at CNA, a Washington think-tank.

Many Central Asians were also suspicious of China’s intentions and there was growing concern about increasing national indebtedness to Beijing, analysts said. China’s standing in Central Asia was damaged last month when its ambassador to France, Lu Shaye, declared that “ex-Soviet Union countries do not have effective status under international law”. Beijing quickly backtracked on the comments, but the diplomat has not been fired.“China’s problem is not about hard power but soft power,” said Sharifli. He said people in the region wanted China’s technology and investment but were “concerned about China’s presence”.Russia was still the dominant and probably the preferred player in Central Asia, Wishnick said. “I wouldn’t say Xi can rest on his laurels with this conference.”Additional reporting by Max Seddon in Riga More

AMMAN (Reuters) – The International Monetary Fund said on Wednesday Jordan needed to accelerate structural economic reforms to push growth beyond the average 2% to 3% it has struck in recent years to help it generate more jobs to reduce high unemployment.”With unemployment still high, and particularly among the youth and women, structural reforms are essential for achieving strong and inclusive growth and creating more jobs,” IMF official Ron van Rooden told reporters.Growth needed to rise to help create jobs to ease high unemployment currently standing at around 22.9%, he added.A 2.6% growth rate forecast for this year was still insufficient to improve standards of living in a country with a population of nearly eleven million and annual population growth of around 2%, he said.The IMF official, who was ending a visit to conduct the sixth review of the country’s IMF-backed programme, said Jordan remained firmly on track with key program targets met and progress through prudent monetary and fiscal policies.“Despite a challenging global and regional environment, Jordan has maintained macroeconomic stability,” van Rooden said.Jordan’s macroeconomic stability had helped it tap more favourable interest rates from international capital markets than other sovereign countries when it issued last months’ Eurobond worth $1.25 billion, he said.”We are calling Jordan a success story because they have consistently implemented sound macroeconomic policy, fiscal policy, monetary policy,” he said.Finance Minister Mohamad Al Ississ said the four-year IMF backed programme due to end next year had helped preserve economic stability in difficult global circumstances.Inflation was on track to moderate to 2.7% in 2023 from earlier projections of 3.8% with a tight monetary policy that helped to curb global inflationary pressures, van Rooden said. More

(Reuters) -Many U.S. regional lenders may have to consider selling off commercial real estate (CRE) loans at a steep discount after breaching key regulatory thresholds for exposure to the troubled sector, according to new data and market sources.Regional banks, the largest lenders to the beleaguered U.S. CRE and construction markets, have reduced their exposure to the sector by tightening standards and making fewer loans, especially in the weeks after the collapse of Silicon Valley Bank, Signature Bank (OTC:SBNY) and First Republic Bank (OTC:FRCB).Their tightening comes as many real estate borrowers face challenges making interest payments in a rising interest rate environment, while office use has declined and property values have decreased on recession concerns.Still, previously unreported data from New York-based real estate data provider Trepp, shared with Reuters, show many regional banks’ holdings exceed thresholds stipulated by regulators. Banks whose CRE or construction loan holdings exceed 300% and 100% of their total assets, respectively, should expect to receive greater regulatory scrutiny, according to 2006 guidance from the Federal Deposit Insurance Corporation and other regulators.A Trepp study of 4,760 banks’ public regulatory data published late Tuesday found that 763 have either a CRE or construction loan concentration ratio that exceeded these thresholds. Some 30% of banks with $1 billion to $10 billion in assets had exceeded at least one ratio, while 23% of banks with assets of $10 billion to $50 billion exceeded at least one ratio.While big banks have recently warned about CRE exposure, the new Trepp data underscores how acute and widespread the problem is across the banking sector. HESITANCY TO LEND”If you are exceeding those concentration ratios today – given the backdrop of concerns about (CRE) – there’s probably going to be a lot of hesitancy to continue” lending, said Stephen Buschbom, Trepp’s research director.The regulatory guidance requires that banks exceeding these thresholds “should employ heightened risk management practices,” including potential sales of specific loans.PacWest, which on May 3 announced it was considering a potential sale, exceeded both the CRE and construction loan thresholds as of the first quarter, at 328% and 126% respectively, according to Trepp data.Meanwhile, New York Community Bancorp (NYSE:NYCB) and Flagstar Bank were among the top five banks listed by Trepp that exceeded the CRE loan threshold. The banks merged in December last year but continue to report their finances separately. Valley National Bancorp (NASDAQ:VLY) also exceeded the CRE loan threshold, while East West Bank, Synovus (NYSE:SNV) Bank,Western Alliance (NYSE:WAL) Bank, CIBC Bancorp USA and M&T Bank (NYSE:MTB) had elevated ratios that did not exceed the thresholds, according to additional data Trepp shared with Reuters. Western Alliance and Valley National declined comment, while the other lenders did not return comment requests.In Tuesday congressional testimony, FDIC chair Martin Gruenberg warned CRE loan portfolios “face challenges” should market conditions persist.Exposed banks may pull back on their lending to allow their CRE debt to roll off. In extreme cases, they could even divest parts or all of existing loan books, according to the guidelines and analysts.”You have all these tenants that are reducing their physical footprint in buildings, and that creates more supply and puts downward pressure on rents. So it’s just kind of a perfect storm for office properties right now,” said Mike Brotschol, managing director and co-head of KBRA Credit Profile.”With the whole bank crisis, I think some of those regional banks may be trying to get some of the commercial real estate loans off their books,” Brotschol said.JPMorgan (NYSE:JPM) said in a March report it expects about 21% of outstanding office loans in commercial mortgage-backed securities will eventually default.Sellers may encounter limited interest and may have to take losses on the assets, according to Ben Miller, co-founder and CEO of alternative investment platform Fundrise. “Banks are going to be getting horrible prices,” Miller said. More

Good morning. On his way to Japan for the G7 summit, UK prime minister Rishi Sunak said that he is considering following Washington’s lead by imposing new restrictions on domestic companies making investments into critical industries in China. US president Joe Biden has been drawing up a plan to limit investments in key parts of the Chinese economy by American companies that is yet to be announced. Sunak said that any joint action over tougher controls on western investments in China was still a work in progress and would not be agreed at the Hiroshima summit given the US had not yet a “fully formed view”. But the prime minister added: “In broad terms, absolutely, that will be something we will be talking about.” Placing further export controls on China will also be discussed by western allies at the G7 gathering with “economic security” high on the agenda, Sunak said. UK-China relations: Rishi Sunak has backtracked on his promise to ban Confucius Institutes from operating in Britain, in the latest sign of the UK prime minister trying to improve relations with Beijing.Here’s what else I’m watching today:Biden meets Kishida: With US president Joe Biden set to arrive in Hiroshima for the G7 summit, he is expected to meet prime minister Fumio Kishida.China-Central Asia Summit: President Xi Jinping hosts a two-day summit with the leaders of Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan and Uzbekistan.Earnings: Alibaba, BT Group, Burberry, easyJet, Investec, Premier Foods and Walmart are among the companies reporting results today. Five more top stories1. Ageing populations are hitting public finances across the world, as recent interest rate rises increase the impact of higher pensions and healthcare costs, rating agencies have warned. Moody’s, S&P and Fitch have all warned that worsening demographics are already hitting governments’ credit ratings with downgrades likely without sweeping reforms.2. Taiwan’s largest opposition party has picked Hou Yu-ih as its presidential candidate for elections in January. Hou, the popular mayor of the country’s largest municipality, said that while he opposes Taiwan independence, he also rejects rule by China under “one country, two systems”. Read more about the mayor of New Taipei City.3. Joe Biden was “confident” the US could avoid an unprecedented debt default, as he prepared to head for Japan for the G7 summit on Wednesday. Biden also left the door open to meeting a Republican demand and adding new work requirements to anti-poverty programmes. Here are the latest details on the fiscal stand-off, over which Biden plans to cut short his trip to Asia. 4. South Korea is trying to cut down on tech leaks to China with three leaks of major technologies in the first quarter of 2023. The country’s government now has a database of chip engineers in order to monitor their travel and has also tried to make it easier to prosecute would-be leakers. 5. Japan has emerged from a technical recession on the back of a post-Covid recovery in household spending and tourism, sending stocks to a new 33-year high in Asia’s most advanced economy. Economists warned, however, that the strength of Japan’s recovery was modest.Big Read

Dr Vershalee Shukla runs a cancer screening programme in Scottsdale, Arizona © FT montage: Ian Bott/Caitlin O’Hara/FT

Investors are pouring billions into companies that claim they can analyse DNA to detect cancer early. The technology has been hailed as “revolutionary” and “cutting edge” by British and US health chiefs, but some scientists question if it really works.We’re also reading . . . Flying high: Thomas Flohr aimed to upset the private jet industry. But after 19 years, the billions in debt held by his company VistaJet are causing concerns. ‘Defining decade’: Soaring commodity prices have helped Australia’s Labor party balance the books, but the nation will soon face a host of mounting bills.Share buybacks: Company repurchases of their own stock hit a global record of $1.3tn last year, but such schemes are no substitute for thoughtful investment in growth and decent pay for staff, writes Brooke Masters.Graphic of the day

Global temperatures are likely to exceed 1.5C above pre-industrial levels for the first time in human history within the next five years, the World Meteorological Organization has said in its latest annual assessment.Take a break from the newsPeople have been anticipating the cultural renaissance of the snoozy island nation of Singapore for nearly 15 years. Is it finally here?Additional contributions by David Hindley and Gary Jones More