China ‘concerned’ after report alleging US nuclear strategy change 

Seoul, South Korea — China on Wednesday said it was “seriously concerned” after a report alleged the United States recently approved a secret plan to shift some of the focus of its nuclear strategy away from Russia to deal with Beijing’s nuclear weapons buildup.

In a report late Tuesday, The New York Times reported that U.S. President Joe Biden in March approved a new “nuclear employment guidance,” a highly classified document outlining how the U.S. would use nuclear weapons in a potential conflict.

The report said the document, updated every four years, reorients U.S. nuclear deterrent strategy to deal with China’s massive expansion of its nuclear arsenal. The document also orders U.S. forces to prepare for the possibility of “coordinated nuclear challenges” from China, Russia, and North Korea, according to the report.

Asked about the report during a press briefing Wednesday, a Chinese foreign ministry spokesperson accused the United States of “peddling the China nuclear threat narrative” and “finding excuses to seek strategic advantage.”

“China is seriously concerned about the relevant report, and the facts have fully proven that the United States has constantly stirred up the so-called China nuclear threat theory in recent years,” said Chinese foreign ministry spokesperson Mao Ning.

Russia has not responded to the report.

For decades, U.S. nuclear policy has been primarily focused on Russia, the only other country with comparable nuclear weapons capabilities.

However, U.S. officials have increasingly warned that China’s nuclear buildup under President Xi Jinping is proceeding faster than previously expected.

In an unclassified document released late last year, the Pentagon estimated that the Chinese military had more than 500 operational warheads in its arsenal and will have more than 1,000 warheads by 2030.

That compares to the United States, which possesses a nuclear stockpile of about 3,700 active warheads, according to estimates compiled by the U.S.-based Arms Control Association.

Russia has roughly 4,380 nuclear warheads, including about 1,550 on strategic delivery systems, according to estimates cited by the group.

Given those numbers, Russia remains the “major driver” behind U.S. nuclear strategy, said Daryl G. Kimball, the director of the Arms Control Association, in a post on social media site X.

The Times report overstates the changes outlined in the U.S. nuclear weapons guidance document, according to Kimball, who insisted there has been no reorientation away from Russia toward China.

“Despite China’s nuclear expansion, Russia’s arsenal significantly exceeds that of China’s – even after Xi’s ambitious plan is complete. Until that changes, focus will remain on Russia’s arsenal,” said Hans Kristensen, director of the Nuclear Information Project at the Federation of American Scientists.

“But planning against China is increasing, as reflected in the document,” Kristensen added in a post on X.

U.S. officials have publicly referred to the nuclear weapons document at least twice, without offering much detail on its contents.

In June, Pranay Vaddi, the White House National Security Council’s senior director for arms control and nonproliferation, said the new guidance “emphasizes the need to account for the growth and diversity” of China’s nuclear arsenal, as well the need to deter Russia, China, and North Korea simultaneously.

According to Vaddi, the U.S. will continue to pursue nuclear arms restraints with Russia and China, but “without a change in the trajectory that Russia, [China], and North Korea are on,” the U.S. “will need to continue to adjust our posture and capabilities to ensure our ability to deter and meet other objectives going forward.”

Vipin Narang, an MIT nuclear security specialist who until recently focused on nuclear policy in the Pentagon, said earlier this month that Biden “recently issued updated nuclear weapons employment guidance to account for multiple nuclear-armed adversaries, and, in particular, the significant increase in the size and diversity of [China’s] nuclear arsenal.”

“It is our responsibility to see the world as it is, not as we hoped or wished it would be,” said Narang. “It is possible that we will one day look back and see the quarter century after the Cold War as ‘nuclear intermission’.”

U.S. and Chinese officials both frequently speak of the dangers of nuclear war, but efforts to hold dialogue on the issue have failed.

Last year, U.S. and Chinese officials agreed to negotiations on nuclear non-proliferation and arms control, ahead of a meeting between Biden and Xi. But China suspended the talks last month, citing U.S. arms sales to the self-ruled island of Taiwan, which Beijing claims as its own.

Many analysts are also concerned about growing military and diplomatic cooperation between Russia and China. In 2022, Xi and Russian President Vladimir Putin agreed on a “no-limits” partnership and have recently expanded joint military exercises and other cooperation.

Earlier this year, Russia also restored a Cold War-era mutual defense treaty with nuclear-armed North Korea and hinted at further defense cooperation.

Since invading Ukraine in 2022, Putin has repeatedly issued thinly veiled threats about using nuclear weapons against Western-backed forces there.

Seoul authorities find toxic substances in Shein and Temu products  

Seoul — Women’s accessories sold by some of the world’s most popular online shopping firms contained toxic substances sometimes hundreds of times above acceptable levels, authorities in Seoul said Wednesday.   

Chinese giants including Shein, Temu and AliExpress have skyrocketed in global popularity in recent years, offering a vast selection of trendy clothes and accessories at stunningly low prices that has helped them take on U.S. titan Amazon.   

The explosive growth has led to increased scrutiny of their business practices and safety standards, including in the European Union and South Korea, where Seoul officials have been conducting weekly inspections of items sold by online platforms.   

In the most recent inspection, 144 products from Shein, AliExpress and Temu were tested, and multiple products from all companies failed to meet legal standards.   

Shoes from Shein were found to contain significantly high levels of phthalates — chemicals used to make plastics more flexible — with one pair 229 times above the legal limit.   

“Phthalate-based plasticizers affect reproductive functions such as sperm count reduction, and can cause infertility and even premature birth,” an official from Seoul’s environmental health team told AFP.   

One such chemical “is classified as a human carcinogen by the International Cancer Institute, so special care should be taken to avoid long-term contact with the human body,” they added.   

Formaldehyde, a chemical commonly used in home building products, was detected in Shein’s caps at double the allowable threshold.   

Two bottles of nail polish from Shein were found to have dioxane — a possible human carcinogen that can cause liver poisoning — at levels more than 3.6 times the allowed limit and methanol concentrations 1.4 times above the acceptable level.    

Lead in sandals 

Shein told AFP that they “work closely with international third-party testing agencies… to regularly carry out risk-based sampling tests to ensure that products provided by suppliers meet Shein’s product safety standards.”   

“Our suppliers are required to comply with the controls and standards we have put in place as well as the product safety laws and regulations in the countries we operate in,” the company added.   

Seoul authorities found sandals from Temu contained lead in the insoles at levels more than 11 times the permissible limit.   

“Upon receiving notice from the Seoul city government, we immediately launched an internal investigation,” a spokesperson from Temu told AFP.   

“We have swiftly removed these product listings from our global marketplace and are enhancing our systems and guidance to merchants to ensure they comply with safety standards and local regulations.”   

Seoul officials asked for all the products to be removed from sale, according to a government statement.   

“Products that exceed the legal limit are products that directly contact the body, such as leather sandals and hats, so citizens should pay special attention,” said Kim Tae-hee, an official in the capital.   

“The Seoul Metropolitan Government will continue to conduct safety tests periodically and disclose the results.”   

The European Union in April added Shein to its list of digital firms that are big enough to come under stricter safety rules — including measures to protect customers from unsafe products, especially those that could be harmful to minors. 

DNC’s Day 2: Double dose of Obama firepower, a doting spouse and a dance party

CHICAGO — The Democratic National Convention’s second night showcased a double dose of Obama firepower to validate Vice President Kamala Harris and deliver an unsparing indictment of Republican Donald Trump. The convention also served up a raucous roll call of states that was essentially one big dance party.

Harris and her running mate, Minnesota Gov. Tim Walz, ducked out of Chicago to hold a rally just up the interstate in Milwaukee, wooing voters in battleground Wisconsin. It was a recognition that, regardless of whatever good vibes may exist at the convention, Democrats expect this presidential election to be razor-close.

Here are some takeaways from the convention’s second night.

The ex-presidents club

If the Republican convention was all about Trump, the Democrats on Tuesday wanted to put Harris in a pantheon with past presidents.

The biggest validators of the night were former President Barack Obama and his wife, Michelle. The latter linked Harris with her husband by telling the rapt crowd, “America, hope is making a comeback.”

Barack Obama, for his part, reached back to his own 2004 convention speech to tie Harris to his legacy. “I am feeling hopeful — because this convention has always been pretty good to kids with funny names who believe in a country where everything is possible,” he said.

It wasn’t just the Obamas making the case for the vice president. The grandsons of Jimmy Carter and John F. Kennedy also portrayed her as the natural heir of past Democratic leaders.

As groundbreaking as Harris’ candidacy is as the first woman of color to be her party’s nominee, these speeches by an ex-president and presidential progeny were all about linking her to a broader historical arc and evoking the excitement of Obama’s 2008 run that Harris hopes to replicate.

Diverting from the high road

The Obamas did not hold back in lacing into Trump. Michelle Obama’s well-worn adage from years past that “when they go low, we go high” no longer seemed operative.

Barack Obama called Trump “a 78-year-old billionaire who hasn’t stopped whining about his problems since he rode down his golden escalator nine years ago.”

Michelle Obama also took a personal swipe, saying: “For years, Donald Trump did everything in his power to try to make people fear us. His limited and narrow view of the world made him feel threatened by the existence of two hardworking, highly educated, successful people who also happened to be Black.”

Playing off her famous line about Republicans going low, Michelle Obama suggested that Trump was going “small” and that “it’s unhealthy, and quite frankly, it’s unpresidential.”

DNC dance party

Political conventions technically happen so that delegates can nominate presidential and vice presidential candidates.

This year, the Democrats took care of that job in advance. But that didn’t stop them from holding a ceremonial do-over and turning it into a raucous dance party.

DJ Cassidy strode on stage in a bright blue double-breasted suit and spun tunes for every state as they nominated Harris and Walz. Minnesota got “1999” by native son Prince, Kansas got “Carry on Wayward Son” by, well, Kansas. “Born in the U.S.A.” by Bruce Springsteen played as New Jersey weighed in.

Usually it was governors or state party chairs calling out the votes, but some states passed the mic to make serious points. Kate Cox, who unsuccessfully sued her home state of Texas while seeking an abortion for a non-viable fetus, announced Texas’ votes. A survivor of the 2017 Las Vegas strip gun massacre announced Nevada’s votes.

The roll call highlight was when Atlanta rapper Lil Jon strode through the United Center to the beats of “Turn Down for What,” his song with DJ Snake, and rapped his support for Harris and Walz.

Democrats are eager to highlight how Harris’ ascension has energized the party. The roll call fit that vibe.

America’s blind date with Doug Emhoff

Doug Emhoff wants America to love his wife as much as he does.

His convention speech Tuesday night focused on their love story and offered a personal glimpse meant to pull in voters, too. He dished on the deets of their first phone call, after he left her a rambling voicemail that she still makes him listen to every year on their anniversary.

“I love that laugh,” he said adoringly, a rebuttal to Trump’s criticism of Harris’ laughter.

As Harris flew back to Chicago from Milwaukee after her rally there, Air Force Two spent an extra 10 minutes in the air so she could watch her husband speak, according to an aide.

Emhoff said he “just fell in love fast” with Harris, adding that she finds “joy in pursuing justice” and “stands up to bullies.” It’s not how most husbands describe their partners, but, then, Emhoff is trying to convince voters that the woman he’s been married to for 10 years this Thursday knows how to take on Trump.

A message for Republicans: It’s OK to quit Trump

The Democrats are making a play for disaffected Trump voters — and they used one of his former White House staffers to make their case.

Stephanie Grisham worked in various roles in the Trump White House, including communications director and press secretary, allowing Democrats to argue that those who know Trump best have seen him at his worst.

“He has no empathy, no morals, and no fidelity to the truth,” Grisham said. “I couldn’t be part of the insanity any longer.”

Kyle Sweetser, a Trump voter from Alabama, told the convention the former president’s tariffs made life harder for construction workers like him. Republican Mayor John Giles of Mesa, Arizona, also spoke about why he’s backing Harris. Giles sees Trump’s policies as hurting cities like his.

У Держетнополітики пояснили, як припинятимуть діяльність релігійної організації, пов’язаної з РФ

«Суд – і тільки суд, як це має бути в демократичному суспільстві, вирішуватиме питання про припинення діяльності цієї релігійної організації»

Protesters arrested after clash with police outside Chicago’s Israeli consulate

CHICAGO — Dozens of pro-Palestinian protesters charged a line of police in an intense standoff with hundreds of officers outside the Israeli consulate Tuesday on the second night of the Democratic National Convention.

After the larger gathering began to disperse, splintering off into smaller groups, other interactions with police led to more than a dozen arrests. Officers called the demonstrations “an unlawful assembly.”

Earlier in the night, officers carrying wooden clubs shouted “move” and penned the demonstrators in on the street, preventing them from marching.

Some demonstrators set an American flag on fire in the street as the celebratory roll call for Vice President Kamala Harris took place inside the United Center about 3.2 kilometers away. Others carried Palestinian flags, while many others wore black and covered their faces.

As protesters regrouped and approached a line of police in riot gear in front of a Chicago skyscraper that houses the Israeli consulate, an officer said into a megaphone, “You are ordered to immediately disburse.” A woman in the front of the march shouted back with her own megaphone: “We’re not scared of you.”

A man in a Chicago Bulls hat, his face covered by a balaclava, called on protesters to “shut down the DNC.” The group, which is not affiliated with the coalition of over 200 groups that organized Monday’s protests, advertised the demonstration Tuesday under the slogan of “Make it great like ’68,” invoking the anti-Vietnam War protests that seized the city during the 1968 Democratic National Convention.

The atmosphere with rows of police in riot gear was a stark contrast to a day earlier when thousands of pro-Palestinian activists, including families pushing babies in strollers, marched near the convention site calling for a cease-fire.

Police kept protesters confined to a block of Madison Street, a normally bustling downtown thoroughfare where traffic was halted on both ends Tuesday evening.

Law enforcement had closed down most of the entrances to the building on Tuesday, allowing commuters to come in only one entrance where armed officers were also posted. Many of the building’s shops were closed. Martha Hill, a spokeswoman for the Metra commuter rail service, said train service was running as normal.

The consulate has been the site of numerous demonstrations since the war in Gaza began in October. It is in a building connected to the Ogilvie Transportation Center, a major commuter rail station.

Mohammed Ismail, a 29-year-old psychiatry resident who lives in Chicago, described the police presence as “excessive,” and questioned why the group had been blocked from marching. He said he joined the protest to urge Democrats to cease funding to Israel.

“It’s not right that we’re sending our tax money to fund an ongoing slaughter, an ongoing genocide,” Ismail said. “We’re a part of this conflict because our money is paying for it.”

Meanwhile, the sites of demonstrations from the previous night were largely quiet. Thirteen people were arrested during Monday’s protests, most them related to a “brief breach” of security fencing “within sight and sound of the United Center,” the city’s police superintendent said.

Israel supporters, including some relatives of people kidnapped by Hamas, gathered earlier in the day at a pro-Israel art installation not far from the consulate to call on U.S. leaders to continue backing Israel and pushing for the release of hostages. The art installation included giant milk cartons bearing photos of some of the hostages.

Elan Carr, CEO of the Israeli-American Council, condemned the pro-Palestinian protesters who have descended on Chicago this week, calling them “fringe crazies” and demanding that U.S. leaders “stand unequivocally with the state of Israel.”

More protests were planned throughout the week. However, attendance at the main rally on Monday was far below estimates of organizers who had predicted more than 20,000 would show up.

Chicago Police Superintendent Larry Snelling said Tuesday that the crowd was around 3,500 strong and that the vast majority of the protesters were peaceful.

However, some clashed with police, used pepper spray against them and threw water bottles at officers during the clash in the park where there was a breach in security fencing, Snelling said. He said officers did not use any chemical sprays.

“Our officers showed great restraint,” he said at a news conference. “We’re not going to tolerate vandalism and violence in our city. … We’re going to continue to protect the city.”

Snelling said with more protests planned, his department is prepared to de-escalate situations whenever possible.

“Again, we’re up to the challenge,” Snelling said. “The city is up to the challenge.”

The park where the most arrests were made, located a block from the convention arena, served as a destination point for a march of thousands calling for a cease-fire in the Israel-Hamas war. Several dozen activists broke off from the main group, breached the fencing, and were pushed back by police.

Authorities said the inner security perimeter surrounding the United Center was not breached and there was no threat to those attending the convention.

On Tuesday morning, an extra line of fencing was installed at the park and the tall metal barriers were reinforced to prevent protesters from lifting and removing the panels. No police officers or protesters were in the park early Tuesday.

The 13 people arrested during Monday’s protest were detained on charges ranging from criminal trespass and resisting and obstructing an arrest, to aggravated battery of police officers, Snelling said.

At least 10 of them were arrested in connection with the fence, he said.

Snelling said he did not connect those who tore down the fence with the entirety of the march. He said the vast majority of participants were peaceful, and he praised his officers’ conduct in the moment.

The Chicago chapter of the National Lawyers Guild said two of the people arrested were hospitalized. Snelling said they were not taken to the hospital for injuries, but “so they could be provided the treatment they needed when it came to their medications.”

Two people were also arrested on misdemeanor property damage and resisting arrest charges during a protest march Sunday night. As of Tuesday morning, 15 people had been arrested.

Most of the largest demonstrations have been organized by the Coalition to March on the DNC, which has focused on calling for a cease-fire in Gaza. But smaller protests have popped up around the city, during the convention’s welcome party at Navy Pier.

Political criticism and controversy swirls ahead of China video game release

washington —  The release of a Chinese video game touted as the country’s first to meet Triple-A standards, has sparked a flurry of online criticism of the Chinese government.

Video games are given a AAA label when they are backed by big funds, highly developed and distributed by well-known publishers.

The Aug. 20 worldwide release of the Chinese game Black Myth: Wukong has been anticipated since its demo got more than 56 million views on the Chinese video-sharing website Bilibili in 2020.

On YouTube, which is banned in China, the game demo had more than 10 million views.

Developed by China-based Game Science, the game has players take on the role of the Monkey King, a character from the Chinese classic novel Journey to the West, and defeat monsters wreaking havoc on the world.

Although the game has no direct connection to politics, Chinese commenters took to a U.S.–based gaming discussion board ahead of the release to criticize the Chinese government and President Xi Jinping.  

The discussion board on Steam, a Washington state-based online gaming platform, was hit with a slew of comments in Chinese last week that directly and indirectly criticized Chinese authorities and Xi.  

One mocked Xi’s unprecedented third term as leader, saying, “I will continue to be Jade Emperor in Black Myth: Wukong. Raise your hands if you oppose it.”

Most critical posts ranted against the Chinese government, in ways unrelated to the game.

“Overthrow the Communist Party of China and establish a democratic constitutional system where everyone has a vote,” read what appeared to be the first critical comment.  

“Thank you to the party, thank you to our great chief accelerator, Xi Jinping,” another comment reads, mocking Xi’s policies as accelerating China’s economic decline.

Another post listed the timeline of the weeks-long 1989 Tiananmen Square pro-democracy protests and the subsequent violent crackdown that occurred when Chinese troops used lethal force against student-led demonstrators, killing hundreds, perhaps thousands.

Such critical comments of China’s government and leaders are not allowed on China’s internet, where an army of censors frequently scrubs websites and discussion boards of comments that do not follow the Chinese Communist Party’s line.  

Observers were surprised to find by the afternoon of Aug. 16, many of the critical posts on Steam’s U.S. discussion board had similarly been removed.  

Li Ying, a Chinese social media influencer and government critic known online as Teacher Li, posted his opposition to the removal on Aug. 14 on X with screenshots of the original posts.

“Steam is inherently a free platform, with a wide variety of games here, and players are free to express any opinions and opinions about the game,” he wrote on X.

Steam’s China-based website does not have a discussion board, and the U.S.-based discussion board is only available to users outside China. Those inside China need to use a Virtual Private Network, or VPN, which helps users bypass controls to access internet content outside the country that is blocked.

VOA reached out to Steam seeking comment about why the posts were deleted but did not receive a reply. Steam’s discussion board rules do not explicitly prohibit political posts but say that users are not allowed to post “disrespectful” content and to avoid posting content unrelated to the topic.

While the game is not directly connected to the Chinese government, it did receive some official help and praise. The city government of Hangzhou, where Game Science is located, gave the game a grant in 2022. State media in the province, Zhejiang, described the game as “one of the most important explorers in the history of AAA games in China – an explorer that deserves applause and encouragement.”

It’s not the first time Black Myth: Wukong has stirred up some controversy.

The game’s developers have been accused of making lewd and sexist remarks.

Feng Ji, the founder and CEO of Game Science, in a Weibo post last year lamenting the difficulties in development, used words with erotic connotations and compared his desire for expanding development to oral sex.

Yang Qi, the game’s artistic director, remarked as early as 2013 on Weibo that they would not pander to female players in the game’s production.

“I don’t need the reverse drive of female players. I don’t take care of those lewd insects who come to pick up girls; some things are made for pure men,” he wrote.

In response, a female influencer posted on the gender-focused WeChat account Orange Umbrella, urging Game Science to respect female gamers.

“As a fellow player, I know how much hard work and dedication it takes to make a game, and Black Myth: Wukong’s dedication and seriousness in the production are commendable,” she wrote. “However, don’t let the backward gender consciousness push players who are also full of expectations for the game in the opposite direction more and more.”

When Western media, including IGN, one of the most influential U.S. online news sites for video games, reported last year on the controversial comments, nationalist Chinese commenters called the coverage an attempt to impose western values and put down China’s gaming industry.

“Judging the Chinese game with the politically correct stance of the West is really biased for the media,” a review article reads. The article said whether the developers’ remarks constituted sexism “depends on the perspective.”

On Weibo, one commenter called IGN a “clown” and wrote, “In order to suppress the rise of Chinese games, the gender card is unsurprisingly played again.”

Despite the controversies, gaming industry experts expect Black Myth: Wukong to be a big hit.

Daniel Camilo, a game industry consultant based in southern China’s Shenzhen city, noted to VOA that sexism in the gaming industry is not new and has little impact on commercial success.

“Hardcore gamers and fans that actively discuss these issues and are aware of them usually represent a very small [loud] minority online that accounts for a small residual amount of those who actually buy games,” he said.

The game has already received high praise from reviewers in China and abroad.

IGN gave the game an 8 on a scale of 1 to 10 on Aug. 16, calling it a “great action game with great fights and exciting and powerful opponents, albeit with a few bugs.”

The Chinese version of IGN gave the game a perfect score of 10, writing, “This is a truly competitive domestic game in the global market, and I believe it will be a strong contender for this year’s Game of the Year.”

Camilo noted the high quality of the homegrown game has given Chinese players something to be proud of that might even help improve China’s international image.

“Black Myth will change perceptions people have regarding Chinese games and, to some extent, China and its cultural output and soft power really,” he said.

Adrianna Zhang contributed to this report.

From ‘Cobra Kai’ to ‘Blue Beetle’: Actor Xolo Maridueña’s journey to first Latino superhero

Xolo Maridueña is currently starring in the sixth and final season of the hit karate series “Cobra Kai,” which premiered on Netflix in July. But he also made waves last year when he was cast as the first Latino superhero lead in “Blue Beetle.” The actor spoke with Veronica Villafañe about the impact of these roles in his career and the need for Latino representation in Hollywood.

Myanmar fighting blocks key trade route with China, impacting economy

Bangkok — Ethnic and resistance forces in Myanmar have completely blocked a key trade route to China, halting cross-border commerce and further damaging Myanmar’s already struggling economy.

The Mandalay-Lashio-Muse Road is considered the most strategically important road in the country’s northern Shan State.

Formerly known as the “Burma Road,” locals commonly call it the “pearl necklace,” as it connects Myanmar’s second largest city of Mandalay with the Chinese border. The string of pearls of trade towns already captured by rebel forces include Nawnghkio, Kyaukme, Lashio, Hsenwi, Kutkai and Muse near China’s southern border of Yunan province.

Lway Yay Oo, spokeswoman for the Ta’ang National Liberation Army, or TNLA, told VOA that right now “there are battles all along the trade route.” That has increasingly been the case, she said, since the second phase of operation 1027 began several weeks ago.

The TNLA is part of the “Three Brotherhood Alliance,” along with the Arakan Army, AA and the Myanmar National Democratic Alliance Army, or MNDAA.

The first phase of the 1027 rebel offensive, which is named after the date it began, began on October 27, 2023.

The recent capture of several key towns along the trade route in a relatively short span of time has been widely seen as a potential turning point in the resistance as rebels look to cement control and further loosen the grip of junta forces the region.

The military government isn’t giving in easily, however, with intense battles along the route making trade nearly impossible.

“The TNLA and joint forces control the entire border trade route with the cities of Kutkai, Lashio, Kyaukme and Hsipaw, except for Muse,” Lway Yay Oo added. “Although we are prepared to keep businesses operating, we’ve had to stop border trade due to fierce fighting.”

Myanmar’s trade crisis deepens

The ongoing conflict and capture of key trading towns is already having an impact.

“Myanmar’s trade sector depends mostly on border trade,” said one Yangon-based businessman, who requested anonymity due to security reasons during a phone interview with VOA. “Air trade is very expensive now, and maritime trade takes a long time, so we must rely on border trade routes.”

With main trade routes closed, businesses are looking to find alternate routes.

“Trade flows are slower than they should be, and we are spending more on transportation, leading to further losses,” the man said. There is also an impact on consumers as the ripple effect of higher transportation costs, currency fluctuations and slower trade spreads to the general population.

“When these things happen, consumers also suffer,” he said, adding that right now “with demand so low, our revenue has dropped by about 50%.”

Earlier in June, the World Bank downgraded Myanmar’s economic growth forecast to just 1% for the 2024-2025 fiscal year, citing the intensifying conflict, labor shortages and a depreciating currency as key challenges. And that was just as the second phase of operation 1027 was beginning.

Impacting the junta

According to the Ministry of Commerce’s statistics, the border trade value between Myanmar and China totaled US$416.867 million in the first two months of the current financial year 2024-2025, which began on April 1.

It is a significant decline from the $640.43 million recorded during the same period last year, and a decrease of $223.564 million.

So far, for its part, Myanmar’s military rulers are playing down the impact the conflict is having.

“Despite the challenges posed by recent conflicts, we continue to facilitate trade with our neighboring countries, especially China,” a representative from Myanmar’s Ministry of Commerce said in June, according to state media. The ministry has not commented on the impact fighting has had on the economy since then.

Opposition forces disagree and say the success of the resistance has significantly weakened the junta’s ability to manage the economy, including trade.

“The revolutionary forces have grown stronger militarily and now control more territory,” said Min Zayar Oo, the NUG Deputy Minister of Planning, Finance, and Investment, in an interview with VOA.

Min Zayar Oo added that part of this is because of the junta’s mismanagement.

“Stability and clear policy are essential for business, but the military council has failed to provide this,” he said.

Commodity prices are soaring due to inflation and recent efforts by the junta, such as printing new currency notes, have only worsened the economic situation, he adds.

“Cross-border trade routes are disrupted, foreign currency is scarce, and the junta is struggling to provide basic services. The economic front, like the military front, is already collapsing,” he said.

The economic downturn is also impacting military funding, former army Major Naung Yoe told VOA in a telephone interview.

“No matter how much the junta increases the military spending budget, if the country doesn’t have foreign currency, the military spending will also be affected,” he said.

Border trade stalls, Kyat at record low

As fighting continues and trade stalls and the value of Myanmar’s currency the Kyat plummets, many business owners are hoping a resumption of stability will come soon.

“Every day that the fighting continues, our businesses suffer,” one medium-sized entrepreneur based in Yangon told VOA, who requested anonymity for security reasons. “We rely on cross-border trade, and with the current situation, it feels as though we have been cut off from the rest of the world.”

In late June, the Kyat hit a record low in foreign exchange markets, exacerbating the financial crisis faced by many in the country.

“We are struggling to keep our operations afloat,” another entrepreneur noted. “The depreciation of the kyat is making imports prohibitively expensive, and we cannot raise prices without losing customers.”

As the conflict rages on, the future of Myanmar’s economy remains uncertain, with many calling for an urgent resolution to restore stability and revive trade. “We need peace to rebuild our businesses and our country,” the Yangon based entrepreneur added. “Without it, we are all at risk.”

US sanctions former Haitian president over drug trafficking

WASHINGTON — The United States on Tuesday imposed sanctions on Haiti’s former president, Michel Joseph Martelly, over drug trafficking, accusing him of playing a significant role in perpetuating the ongoing crisis in the country.

The U.S. Treasury Department in a statement said Martelly “abused his influence to facilitate the trafficking of dangerous drugs, including cocaine, destined for the United States.”

The department said he also worked with Haitian drug traffickers, sponsored multiple gangs and engaged in the laundering of illicit drug proceeds.

“Today’s action against Martelly emphasizes the significant and destabilizing role he and other corrupt political elites have played in perpetuating the ongoing crisis in Haiti,” Treasury’s Acting Undersecretary for Terrorism and Financial Intelligence Bradley Smith said in the statement.

“The United States, along with our international partners, is committed to disrupting those who facilitate the drug trafficking, corruption and other illicit activities fueling the horrific gang violence and political instability.”

Tuesday’s action freezes any of Martelly’s U.S. assets and generally bars Americans from dealing with him.

Gang wars have displaced more than 578,000 Haitians, while nearly 5 million — almost half the population of 11.7 million — face acute hunger, with 1.6 million of those people at risk of starvation, the United Nations says.

Armed gangs have formed a broad alliance while carrying out widespread killings, ransom kidnappings and sexual violence.