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LAHAINA, Hawaii — The restaurant where Katie Austin was a server burned in the wildfire that devastated Hawaii’s historic town of Lahaina this summer.

Two months later, as travelers began to trickle back to nearby beach resorts, she went to work at a different eatery. But she soon quit, worn down by constant questions from diners: Was she affected by the fire? Did she know anyone who died?

“You’re at work for eight hours and every 15 minutes you have a new stranger ask you about the most traumatic day of your life,” Austin said. “It was soul-sucking.”

Hawaii’s governor and mayor invited tourists back to the west side of Maui months after the August 8 fire killed at least 100 people and destroyed more than 2,000 buildings. They wanted the economic boost tourists would bring, particularly heading into the year-end holidays.

But some residents are struggling with the return of an industry requiring workers to be attentive and hospitable even though they are trying to care for themselves after losing their loved ones, friends, homes and community.

Maui is a large island. Many parts, like the ritzy resorts in Wailea, 48 kilometers south of Lahaina — where the first season of the HBO hit The White Lotus was filmed — are eagerly welcoming travelers and their dollars.

Things are more complicated in west Maui. Lahaina is still a mess of charred rubble. Efforts to clean up toxic debris are painstakingly slow. It’s off-limits to everyone except residents.

Tensions are peaking over the lack of long-term, affordable housing for wildfire evacuees, many of whom work in tourism. Dozens have been camping out in protest around the clock on a popular tourist beach at Kaanapali, a few miles north of Lahaina. Last week, hundreds marched between two large hotels waving signs reading, “We need housing now!” and “Short-term rentals gotta go!”

Hotels at Kaanapali are still housing about 6,000 fire evacuees unable to find long-term shelter in Maui’s tight and expensive housing market. But some have started to bring back tourists, and owners of timeshare condos have returned. At a shopping mall, visitors stroll past shops and dine at open-air oceanfront restaurants.

Austin took a job at a restaurant in Kaanapali after the fire but quit after five weeks. It was a strain to serve mai tais to people staying in a hotel or vacation rental while her friends were leaving the island because they lacked housing, she said.

Servers and many others in the tourism industry often work for tips, which puts them in a difficult position when a customer prods them with questions they don’t want to answer. Even after Austin’s restaurant posted a sign asking customers to respect employees’ privacy, the queries continued.

“I started telling people, ‘Unless you’re a therapist, I don’t want to talk to you about it,'” she said.

Austin now plans to work for a nonprofit organization that advocates for housing.

Erin Kelley didn’t lose her home or workplace but has been laid off as a bartender at Sheraton Maui Resort since the fire. The hotel reopened to visitors in late December, but she doesn’t expect to get called back to work until business picks up.

She has mixed feelings. Workers should have a place to live before tourists are welcome in west Maui, she said, but residents are so dependent on the industry that many will remain jobless without those same visitors.

“I’m really sad for friends and empathetic towards their situation,” she said. “But we also need to make money.”

When she does return to work, Kelley said she won’t want to “talk about anything that happened for the past few months.”

More travel destinations will likely have to navigate these dilemmas as climate change increases the frequency and intensity of natural disasters.

There is no manual for doing so, said Chekitan Dev, a tourism professor at Cornell University. Handling disasters — natural and manmade — will have to be part of their business planning.

Andreas Neef, a development professor and tourism researcher at the University of Auckland in New Zealand, suggested one solution might be to promote organized “voluntourism.” Instead of sunbathing, tourists could visit part of west Maui that didn’t burn and enlist in an effort to help the community.

“Bringing tourists for relaxation back is just at this time a little bit unrealistic,” Neef said. “I couldn’t imagine relaxing in a place where you still feel the trauma that has affected the place overall.”

Many travelers have been canceling holiday trips to Maui out of respect, said Lisa Paulson, the executive director of the Maui Hotel and Lodging Association. Visitation is down about 20% from December of 2022, according to state data.

Cancellations are affecting hotels all over the island, not just in west Maui.

Paulson attributes some of this to confusing messages in national and social media about whether visitors should come. Many people don’t understand the island’s geography or that there are places people can visit outside west Maui, she said.

One way visitors can help is to remember they’re traveling to a place that recently experienced significant trauma, said Amory Mowrey, the executive director of Maui Recovery, a mental health and substance abuse residential treatment center.

“Am I being driven by compassion and empathy or am I just here to take, take, take?” he said.

That’s the approach honeymooners Jordan and Carter Prechel of Phoenix adopted. They kept their reservations in Kihei, about 40 kilometers south of Lahaina, vowing to be respectful and to support local businesses.

“Don’t bombard them with questions,” Jordan said recently while eating an afternoon snack in Kaanapali with her husband. “Be conscious of what they’ve gone through.”
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LOS ANGELES — Toymaker Basic Fun’s team that oversees ocean shipments of Tonka trucks and Care Bears for Walmart WMT.N and other retailers is racing to reroute cargo away from the Suez Canal following militant attacks on vessels in the Red Sea.

Suppliers for the likes of IKEA, Home Depot HD.N, Amazon AMZN.O and retailers around the world are doing the same as businesses grapple with the biggest shipping upheaval since the COVID-19 pandemic threw global supply chains into disarray, sources in the logistics industry said.

Florida-based Basic Fun usually ships all Europe-bound toys from its China factories via the Suez Canal, the quickest way to move goods between those geographies, CEO Jay Foreman said in a telephone interview from his Hong Kong office.

That trade route is used by roughly one-third of global container ship cargo, and redirecting ships around the southern tip of Africa is expected to cost up to $1 million extra in fuel for every round trip between Asia and Northern Europe.

Yemeni Houthis’ drone and missile attacks in the Red Sea to show their support for Palestinian Islamist group Hamas fighting Israel in Gaza have upended shipping plans.

Basic Fun is now working through the holidays to send toys from China to ports in the U.K. and Rotterdam via the longer route.

It is also diverting some goods bound for ports on the U.S. East Coast from the Suez Canal to the drought-choked Panama Canal, while switching others to the West Coast via the direct route across the Pacific Ocean.

“It’s just going to take longer and it’s going to cost more,” said Foreman, who added that rates for some China-U.K. freight have more than doubled to around $4,400 per container since the Israel-Hamas conflict began in October.

The Suez Canal situation remains fast changing, and shippers MaerskMAERSKb.CO and CMA CGM are moving to resume voyages with military escorts through the Red Sea.

The biggest impact likely will come over the next six weeks, said Michael Aldwell, executive vice president of sea logistics for Switzerland’s Kuehne + Nagel KNIN.S.

“You can’t flick a switch” and reorganize global shipping, said Aldwell, who expects the diversions to cause a shortage of vessel space, strand empty containers needed for China exports in wrong places and send short-term transport price indexes sharply higher.

According to estimates from freight platform Xeneta, it costs $2,320 to ship a 40-foot equivalent unit (FEU) container from the Far East to the Mediterranean “post escalation” versus $1,865 per FEU in early December. It costs $1,625 to ship an FEU from China to the United Kingdom “post escalation” versus $1,425 per FEU in early December.

These rates do not include “extra ordinary” risk surcharges and “Emergency Recovery Cost” that can be between $400 and $2,000 per FEU, Peter Sand, chief analyst at Xeneta, said. 

Scramble for space

As of Wednesday, nearly 20% of the global container fleet — or 364 hulking container vessels capable of carrying just over 2.5 million full-sized containers — had been set on a new course due to the Red Sea attacks, according to Kuehne + Nagel data.

Mitsui O.S.K. Lines 9104.T and Nippon Yusen 9101.T, Japan’s largest shipping companies, said their vessels with links to Israel were avoiding the Red Sea area and both companies were monitoring the situation carefully for next steps.

Vessel owners already have begun rationing the less expensive, contract-rate space they reserve for customers, said Anders Schulze, head of the ocean business at digital freight forwarder Flexport.

For example, he said, a customer who delivers five containers a month versus the 10 promised in their contract may only get five containers at contract rates. The remainder would be subject to expensive spot market rates.

This has set off a scramble to reserve space ahead of the early February deadline to get goods out of China before factories there close for the extended Lunar New Year celebrations, logistics experts said.

“Every single booking [out of China] now needs to be reconfirmed. The dates could change, the routing may change,” said Alan Baer, CEO of OL USA, which handles freight shipments for clients. OL has contracts with ship owners and is part of the rush to secure spots on ships.

Small shippers are most at risk of being elbowed out.

Marco Castelli, who has an import/export business in Shanghai, has been trying to rebook three containers of Chinese-made machinery components bound for Italy after the shipments were canceled due to the crisis.

“Transfer my situation to a large corporation and you get what’s going on,” he said.

Foreman at Basic Fun, which plans to have about 40 containers on the water before the Lunar New Year, said the company’s contracts with customers don’t include a way to recover the extra expense. “The price is fixed. [Most suppliers] are going to have to eat those costs.” 
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WASHINGTON — An influx of Chinese investors in Vietnamese supporting industries could cause domestic businesses to suffer from the competition, the president of the Vietnam Association for Supporting Industries warned.

Phan Dang Tuat’s statement came a week after Vietnam and China agreed to expand their trade cooperation during Chinese President Xi Jinping’s mid-December visit, during which the two countries signed 36 cooperation documents. Vietnam and China pledged to strengthen their cooperation in economic zones, investment, trade and other areas, said a joint statement issued on December 13.

According to economic experts, the agreements will open opportunities for Vietnam to attract high-quality direct investment from China.

But Tuat said the wave of Chinese supporting-industry firms arriving in the Southeast Asian country is concerning.

Supporting industries supply raw materials and components to manufacturers.

Tuat voiced his concern at the Ministry of Industry and Trade’s year-end conference on December 20, questioning the rapid and large-scale entry of Chinese firms into the market, according VN Express International, a Vietnamese newspaper.

Chinese supporting industry companies are flocking to Vietnam, swiftly forming large-scale components and parts production chains to export to Europe and North America, Tuat said.

“This is a huge concern for domestic supporting industry enterprises,” Tuat said, according to VN Express International.

China-U.S. trade war

Since then-U.S. President Donald Trump launched a trade war with China in 2018, many Chinese products have been found to be disguised or labeled as “Made in Vietnam” to avoid U.S. tariffs on goods imported from China, according to reports by Reuters.

The trade war has also encouraged Chinese firms to move their production to other countries, including Vietnam, to bypass U.S. tariffs.

Meanwhile, Tuat told the ministry’s conference that because of a lack of economies of scale, Vietnam’s domestic firms are grappling with expensive capital and high manufacturing expenses, making it difficult to compete with Chinese firms, according to Vietnam-based Tuoi Tre.

Vietnamese companies in 2023 saw a 40% drop in revenue partly because of fewer orders from major markets, such as Europe, according to Tuat.

He also said that Vietnam’s unusually high lending rates have undermined the nation’s supporting industry enterprises, which number about 1,500 companies. (Whereas Vietnamese firms are required to borrow from Vietnamese banks at rates of 10% to 12%, foreign investors can borrow abroad at significantly lower rates, according to reports by Tuoi Tre.)

Ha Hoang Hop, an associate senior fellow at Singapore-based ISEAS-Yusof Ishak Institute, told VOA: “This should serve as a wake-up call for Vietnam to speed up its supporting industries in order to catch up with Chinese competitors who are way ahead.”

There is reason for concern, Pham Chi Lan, former general secretary of Vietnam Chamber of Commerce and Industry, told VOA.

“But we need to face that fact and learn from the lesson in the past where foreign investors chose Chinese suppliers instead of Vietnamese for their production in Vietnam,” he said.

Semiconductors a potential boon

The U.S.-China trade war has led semiconductor investors to shift their focus to Vietnam, a potential boon for the Southeast Asian nation, according to Hop and Lan.

“The U.S. has included Vietnam in its ‘friendshoring’ network, and Vietnam should make the most out of this,” said Hop, referring to the practice of focusing supply chain networks in countries regarded as U.S. political and economic allies.

Experts said Vietnam is well-positioned to draw U.S. investors seeking to de-risk supply chain investments in China.

“The competition between the U.S. and China is getting intense when the U.S. is banning the export of some equipment and technology to China, and this is a great opportunity for Vietnam to be able to secure some deals,” said Hop, referring to the U.S. export ban on chipmaking equipment and rare-earth technologies.

Lan, who was an adviser to the late Vietnamese Prime Ministers Vo Van Kiet and Phan Van Khai, agreed with Hop.

“The U.S., Japan and European countries want Vietnam to be strong for their benefits instead of being weak and dependent on China,” Lan said.

Following an historic U.S.-Vietnam business summit in September that bolstered ties between the countries, Vietnam then elevated Japan into its circle of comprehensive strategic partners, on par with China, in November. Washington and Tokyo sought to upgrade ties with Hanoi to offset Beijing’s expansion of power in the region and reduce its dependence on Chinese supply chains, according to experts who spoke with VOA.

Announcing its new partnership with Vietnam, the U.S. State Department described it as a way “to explore opportunities to grow and diversify the global semiconductor ecosystem” that “will help create more resilient, secure and sustainable global semiconductor value chain.”

Vietnam is poised to expand into chip-designing and possibly chip-making as trade tensions between the United States and China create opportunities for the country, according to Lan and Hop.
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TAIPEI, TAIWAN — Chinese authorities approved 105 new online games this week, bolstering support for the industry just days after proposing regulatory restrictions that sent stocks tumbling.

The National Press and Publication Administration (NPPA) announced approval of the 105 games Monday via WeChat, describing the move as a show of support for “the prosperity and healthy development of the online game industry.

“It was only Friday that those same regulators announced a wide range of proposed guidelines to ban online game companies from offering incentives for daily logins or purchases. Other proposed rules include limiting how much users can recharge and issuing warnings for “irrational consumption behavior.”

The draft rules, which were published as part of efforts to seek public comment on the proposals, caused an immediate, massive blow to the world’s biggest games market, leading to as much as $80 billion in market value being erased from China’s two biggest companies, industry leader Tencent Holdings and NetEase.

After the approval was announced Monday, video game stocks in companies such as NetEase began recovering from Friday’s tumble. China’s state-run CCTV said the approval “strongly demonstrates the clear attitude of the competent authorities to actively support the development of online games,” adding that most game companies are deeply encouraged.

Chinese netizens, however, aren’t optimistic.

“Isn’t it the daily work of the NPPA to [approve games] on a regular basis? Don’t make it look like [you’re doing the industry a favor]” said a commenter named “OldTimeBlues” on YYSTV, a Chinese media platform for online gaming.

Another commenter, named Mizu, described the back-to-back announcements as a proverbial carrot and stick tactic.

“You noticed your kid is [has] a concussion after [you’ve hit] him with a stick,” they said of Friday’s announcement of new guidelines. “Now you are giving him a [treat] to make him feel better.”

Syu Jhen, founder of the policy think tank Hong Kong Zhi Ming Institute, said that the draft rules would affect not only the stock prices of Tencent and NetEase but the entire online gaming industry, even if China’s economy relies on domestic consumption.

Syu said that Beijing’s “one-size-fits-all” regulation of online gaming shows that China’s economic decision-makers do not respect market rules and often resort to moral kidnapping, allowing the social value that officials want to encourage to override principles of economic development and business operations.

A comment on YYSTV said, “Thinking issuing an approval would boost market confidence? It’s completely scratching the surface.”

Chen Chung-hsing, director of the New Economy Policy Research Center at National Dong Hwa University, said that at a time when China’s economy is weak and sluggish, exports and investment can no longer boost China’s economy. China can only rely heavily on domestic consumption. He said if China continues to suppress the domestic online gaming industry, it may have economic consequences and cause public resentment.

“China’s current unemployment rate is so high that some people may need video games to kill time,” he told VOA in a phone interview. In this case, [the rules] are also [a kind of] deprivation. Then, after these people stop playing video games, what will happen? Don’t they think about other ways to express their dissatisfaction? So basically, [playing video games] is also a possible source of power for [social] stability.”

Tseng Wei-feng, an assistant researcher at the Institute of International Relations at National Chengchi University, said the reason why the Chinese government wants to restrict online games is that the games often have a “group-fighting” model, which has become a virtual platform for young people to gather. He said the government worries that players can be united and mobilized in the virtual world.

“A group of people may attack a city in a certain game, then evolve into a so-called organized force,” he said. “If one day they are dissatisfied with China’s policies, will they all go to the government gate to protest? I think this is an aspect that the Chinese Communist Party has been strictly controlling.”

Some information is from The Associated Press. 
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BUENOS AIRES, ARGENTINA — Thousands of Argentines took to the streets of Buenos Aires on Wednesday to protest a decree of sweeping economic reform and deregulation proposed by President Javier Milei.  

Marching at the behest of labor unions, the protesters demanded the courts intervene to invalidate the mega-decree they say would carve away worker and consumer protections. 

Congress is sitting in an extraordinary session this week, at the request of ultra-libertarian Milei — in office since December 10 — to consider the plan.  

The decree would change or scrap more than 350 economic regulations in a country accustomed to heavy government intervention in the market.  

Among others, it abolishes a price ceiling on rent, eliminates some worker protections and scraps laws shielding consumers from abusive price increases at a time when annual inflation exceeds 160% and the poverty level has surpassed 40%.  

A number of civic groups on Saturday filed a judicial motion to have the decree declared unconstitutional.  

On Wednesday, protesters waved Argentine flags and placards reading: “The homeland is not for sale.” 

“We do not question the legitimacy of President Milei, but we want him to respect the division of powers. Workers need to defend their rights when there is an unconstitutionality,” construction union leader Gerardo Martinez told reporters at the march. 

Milei’s “chainsaw plan” to cut state spending has triggered a series of street protests against the government. 

Other aspects of the decree include an end to automatic pension increases, restrictions on the right to strike and easing away from price caps for private health services. 

It also terminates about 7,000 civil service contracts in a bid to cut state spending.  

Unless Congress scraps the plan in its entirety, the decree will enter into force on Friday.  

Milei’s far-right party, Freedom Advances, has 40 of the 257 deputies in Congress and seven of 72 senators.  

“The decree is destructive of all labor rights,” said 45-year-old teacher Martin Lucero, who took part in the protest.   

“The Argentine people chose Milei as president of the nation, not as emperor,” he said. 
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