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Indigenous African grains such as millet and sorghum are known to be nutritious but are not popular with many, especially the Gen Zers who view the grains as food for the poor. To change this narrative, a Kenyan entrepreneur is using the grains to make snacks and breakfast cereals to promote consumption of indigenous grains and foster environmental sustainability, as Juma Majanga reports from Nairobi. Video by Amos Wangwa.
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The Biden administration’s push for clean energy solutions has turned a rural Washington state town into a hub for electric vehicle battery production. VOA’s Natasha Mozgovaya reports from Moses Lake.
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Dubai, United Arab Emirates — Container shipping through the Red Sea has dropped by nearly one-third this year as attacks by Yemen’s Houthi rebels continue, the International Monetary Fund said Wednesday.

“Container shipping … has declined by almost 30%,” said Jihad Azour, director of the IMF’s Middle East and Central Asia department, adding that “the drop in trade accelerated in the beginning of this year.”

The Iran-backed Houthis have launched more than 30 attacks on commercial shipping and naval vessels since November 19, the Pentagon said on Tuesday.

The rebels say the attacks are in solidarity with the Palestinians and in protest of the Israel-Hamas war that has been raging in the Gaza Strip since October.

The IMF’s PortWatch platform indicates that the total transit volume through the Suez Canal was down 37% this year through January 16 compared with the same period a year earlier.

The canal connects the Red Sea to the Mediterranean Sea.

Houthi attacks have prompted some shipping companies to detour around southern Africa to avoid the Red Sea, a vital route that normally carries about 12% of global trade, according to the International Chamber of Shipping.

“The level of uncertainty is extremely high, and the developments will determine the extent of change and shift in trade patterns in terms of volume but also in terms of sustainability,” Azour told reporters in an online briefing.

“Are we on the verge of major change in trade routes,” he said, “or is it temporary because of the increase in costs and the deterioration of the security costs?”

Revised regional outlook

The United States heads a coalition to protect Red Sea shipping and is seeking to apply diplomatic and financial pressure by redesignating the Houthis as a “terrorist” group.

The Red Sea is particularly vital for European trade.

Last week the European Union’s trade commissioner said maritime traffic through the Red Sea shipping route had fallen by 22% in a month because of the rebel attacks.

The European Union is pushing to launch its own naval mission in the Red Sea to help protect international shipping.

EU countries have given initial backing to the plan and are aiming to finalize it by a meeting of the bloc’s foreign ministers on February 19.

The United States and Britain have launched repeated strikes against Houthi capabilities in Yemen, but the Iran-backed movement is still able to hit vessels.

Wednesday’s IMF briefing came as the Washington-based fund released a revised economic outlook for countries in the Middle East and North Africa due to the Israel-Hamas war.

The IMF now sees the economies of the region expanding 2.9% this year, a decrease of half a percentage point from its October forecast.

The economic downturn in the occupied West Bank and the war-ravaged Gaza Strip was “immense,” said Azour.

In 2023, real GDP growth in Gaza and the West Bank was estimated to have dropped to about minus 6%, the IMF said, adding that it reflected a 9-percentage point downgrade from its October outlook.

“We project that the economy will keep on contracting in 2024 if there is no fast and quick cessation of hostilities and reconstruction,” Azour said.

For emerging market and middle-income economies in the region, total funding requirements over 2024 were projected to $186 billion, the IMF said, up from $156 billion in 2023.
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Brussels — European Union nations have decided to approve an outline deal that would keep in reserve the profits from hundreds of billions of dollars in Russian central bank assets that have been frozen in retaliation for Moscow’s war in Ukraine, an EU official said.

The tentative agreement, reached late Monday, still needs formal approval but is seen as a first step toward using some of the 200 billion euros ($216 billion) in Russian central bank assets in the EU to help Ukraine rebuild from Russian destruction.

The official, who asked not to be identified since the agreement was not yet legally ratified, said the bloc “would allow to start collecting the extraordinary revenues generated from the frozen assets … to support the reconstruction of Ukraine.”

How the proceeds will be used will be decided later, as the issue remains mired in legal and practical considerations.

There is urgency since Ukraine is struggling to make ends meet, and aid plans in the EU and the United States are being held back over political considerations including whether allies will continue helping Ukraine at the same pace as they did in the first two years of the war.

EU leaders will meet on Thursday hoping to approve a 50 billion euro ($54 billion) support package for Ukraine over the solitary opposition of Hungarian Prime Minister Viktor Orban.

Even if using the unfrozen assets, which now go untapped, seems like a practical step to take, many fear that financial weaponization could harm the standing of the EU in global financial markets.

Early this month, Ukrainian President Volodymyr Zelenskyy called for a “strong” decision this year for the frozen assets in Western banks to “be directed towards defense against the Russian war and for reconstruction” of Ukraine.

The EU step late Monday paves the way if EU nations ever want to impose such measures. Group of Seven allies of Ukraine are still looking for an adequate legal framework to pursue the plan.

The U.S. announced at the start of Russia’s invasion that America and its allies had blocked access to more than $600 billion that Russia held outside its borders — including roughly $300 billion in funds belonging to Russia’s central bank. Since then, the U.S and its allies have continued to impose rounds of targeted sanctions against companies and wealthy elites with ties to Russian President Vladimir Putin.

The World Bank’s latest damage assessment of Ukraine, released in March 2023, estimates that costs for the nation’s reconstruction and recovery will be $411 billion over the next 10 years, which includes needs for public and private funds.

Belgium, which holds the rotating presidency of the European Union for the next six months, is now leading the talks on whether to seize Russia’s assets. Belgium is also the country where most frozen Russian assets under sanctions are being held.

The country is collecting taxes on the assets. Belgian Prime Minister Alexander De Croo said in October that 1.7 billion euros ($1.8 billion) in tax collections were already available and that the money would be used to pay for military equipment, humanitarian aid and helping rebuild the war-torn country.
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PARIS — French farmers vowed Saturday to continue protesting, maintaining traffic barricades on some of the country’s major roads a day after the government announced a series of measures that they say do not fully address their demands.

The farmers’ movement, seeking better payment for their produce, less red tape and protection against cheap imports has spread in recent days across the country, with protesters using their tractors to shut down long stretches of road and slow traffic.

They’ve also dumped stinky agricultural waste at the gates of government offices.

While some of the barricades were gradually being lifted Saturday, highway operator Vinci Autoroutes said the A7, a major highway heading through southern France and into Spain, was still closed. Some other roads were also partially closed, mostly in southern France.

Vinci Autoroutes noted that the blockades on two highways leading to Paris have been removed. The highway from Lyon, in eastern France, to Bordeaux, in the southwest, also reopened Saturday, the company said in a statement.

Some angry protesters were planning to give a new boost to the mobilization next week, threatening to block traffic around Paris for several days, starting from Sunday evening.

President Emmanuel Macron’s new prime minister, Gabriel Attal, announced a series of measures Friday during a visit to a cattle farm in southern France. They include “drastically simplifying” certain technical procedures and the progressive end to diesel fuel taxes for farm vehicles, he said.

Attal also confirmed that France would remain opposed to the European Union signing a free-trade deal with the Mercosur trade group, as French farmers denounce what they see as unfair competition from Latin American countries. The agreement has been under negotiation for years.

In response to Attal’s announcement, France’s two major farmers’ unions quickly announced their decision to continue the protests, saying the government’s plan doesn’t go far enough.

The protests in France are also symptomatic of discontent in agricultural heartlands across the European Union. The influential and heavily subsidized sector is becoming a hot-button issue ahead of European Parliament elections in June, with populist and far-right parties hoping to benefit from rural disgruntlement against free trade agreements, burdensome costs worsened by Russia’s war in Ukraine and other complaints.

In recent weeks, farmers have staged protests in Germany, the Netherlands, Poland and Romania.
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UNITED NATIONS — The U.N. trade body said Thursday that global trade is being disrupted by attacks in the Red Sea, the war in Ukraine, and low water levels in the Panama Canal.

Jan Hoffmann, a trade expert at the United Nations Conference on Trade and Development, known as UNCTAD, warned that shipping costs have surged, and energy and food costs are being affected, raising inflation risks.

Since attacks by Yemen’s Houthi rebels on ships in the Red Sea began in November, he said, major players in the shipping industry have temporarily stopped using Egypt’s Suez Canal, a critical waterway connecting the Mediterranean Sea to the Red Sea and a vital route for energy and cargo between Asia and Europe.

The Suez Canal handled 12% to 15% of global trade in 2023, but UNCTAD estimates that the trade volume going through the waterway dropped by 42% over the last two months, Hoffmann said.

Since November, the Iranian-backed Houthis have launched at least 34 attacks on shipping through the waterways leading to the Suez Canal. The Houthis, a Shiite rebel group that has been at war with a Saudi-led coalition backing Yemen’s exiled government since 2015, support the Palestinians and have vowed to keep attacking until the Israel-Hamas war ends.

The United States and Britain have responded with strikes against Houthi targets, but the rebels have kept up their attacks.

Hoffmann, who heads the trade logistics branch at Geneva-based UNCTAD, told a video press conference with U.N. reporters that the Houthi attacks are taking place at a time when other major trade routes are under strain.

The nearly two-year war since Russia’s February 24, 2022, invasion of Ukraine and other geopolitical tensions have reshaped oil and grain trade routes including through the Black Sea, he said.

Compounding difficulties for shipping companies, Hoffmann said, severe drought has dropped water levels in the Panama Canal to their lowest point in decades, significantly reducing the number and size of vessels that can transit through it.

Total transits through the Panama Canal in December were 36% lower than a year ago, and 62% lower than two years ago, Hoffmann said.

Ships carry around 80% of the goods in world trade, and the percentage is even higher for developing countries, he said.

As for costs, he said, average container shipping spot rates from Shanghai have gone up by 122% since early December, while rates from Shanghai to Europe went up by 256% and rates to the U.S. West Coast by 162%.

“Here you see the global impact of the crisis, as ships are seeking alternative routes, avoiding the Suez and the Panama Canal,” Hoffmann said.

But the Red Sea crisis is causing significant disruptions in the shipment of grains and other key commodities from Europe, Russia and Ukraine, leading to increased costs for consumers and posing serious risks to global food security, Hoffmann said.

This is especially true in regions like East Africa, South Asia, Southeast Asia and East Asia, which heavily rely on wheat imports from Europe and the Black Sea area, he said.

Hoffmann said early data from 2024 show that more than 300 container vessels, more than 20% of global container capacity, were diverting or planning alternatives to using the Suez Canal. Many are opting to go around the Cape of Good Hope in Africa, a longer and more costly trip.

Hoffmann said ships transporting liquefied natural gas have stopped transiting the Suez Canal altogether because of fears of an attack. 
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WASHINGTON — U.S. officials hoping to break China’s near monopoly on the production of rare earth elements needed for many cutting-edge technologies should engage the governments of Central Asia to develop high concentrations of REEs found in the region, says a new report. 

The study by the U.S.-based International Tax and Investment Center warns that a failure to act could leave China with a “decisive advantage” in the sector, which is crucial to green energy, many new weapons systems and other advanced technologies. 

“As the uses for these minerals has expanded, so too has global competition for them in a time of sharply increasing geostrategic and geo-economic tension,” the report says. 

“Advanced economies with secure, reliable access to REEs enjoy economic advantages in manufacturing, and corresponding economic disadvantages accrue for those without this access.” 

China, which accounts for most of the world’s rare earth mining within its own borders, has not yet had to seek additional supplies from Central Asia, which enjoys plentiful reserves of minerals ranging from iron and nonferrous metals to uranium. 

But, the report says, “the massive size of the Chinese economy and the Chinese Communist Party’s conscious efforts to dominate the REE sector globally mean such increases are a matter of time.”  

Oil-rich Kazakhstan, the region’s economic giant, holds the world’s largest chromium reserves and the second-largest stocks of uranium, while also possessing other critical elements.  

Report co-author Ariel Cohen says it is up to the governments of Central Asia to create the investment climate for development of these resources.   

“They may be the next big thing in Central Asia as the engine of economic growth,” Cohen said this week during a panel discussion at the Atlantic Council, a Washington think tank.  

Across Central Asia, experts note, REEs are found in substantial volumes in the Kazakh steppe and uplands as well as in the Tien Shan mountains across Kazakhstan, Kyrgyzstan and Uzbekistan, and in the Pamir Mountains in Tajikistan.  

Monazite, zircon, apatite, xenotime, pyrochlore, allanite and columbite are among Central Asia’s most abundant rare metals and minerals.  

In 2016, the U.S. Geological Survey listed 384 REE occurrences in the region: 160 in Kazakhstan, 87 in Uzbekistan, 75 in Kyrgyzstan, 60 in Tajikistan, and two in Turkmenistan.

Wesley Hill, another expert on Central Asia’s mineral reserves, says production of rare earths at present “is almost wholly monopolized by China.”  

“Depending on how you count, between 80 to 90% of REE refining is controlled by China and done directly inside of China,” Hill said.   

But, he argued, despite China’s heavy involvement in Central Asia, it has yet to fully take over the region’s rare earth sector. “So, this means that Central Asia is very much at a crossroads,” he said. “Central Asia has the opportunity to expand its REE production without being wholly dependent on China.” 

Central Asia is currently in a position where it can develop its REE refining capacities both for its national development strategies and to break the Chinese monopoly, Hill said.  

“But this is only going to happen with good policy, both from the American side and the Central Asian side.”  

Ambassador John Herbst, Washington’s former top diplomat in Uzbekistan and Ukraine, says the region’s REE assets are “simply another reason for enhanced engagement by the West.” 

He said he is not sure that Central Asian governments appreciate how important rare earths can be to their development. “But I do know that the countries of Central Asia want a closer relationship with the United States, and that is one important part of their maintaining their hard-won independence.” 

Herbst added that the United States and Central Asia have a common interest in working together to develop the region’s rare earths “for the economy of the future.” 

“We have an ability to innovate that far exceeds [China’s]. Their innovation is based largely on taking our technology.”

Suriya Evans-Pritchard Jayanti, who serves as energy transition counsel at the U.S. Department of Commerce, says the region is eager for investment. 

“It is a development opportunity. Particularly with the geostrategic energy realignment after the Russian invasion of Ukraine, but also, because of the energy transition. Lithium and other REE are necessary for different parts of that transition. So that’s primarily an economic incentive,” she said. 

She pointed to the Mineral Strategic Partnership Initiative run by the U.S. State Department’s Bureau on Energy Resources, which is able to promote foreign direct investment in the region while providing technical assistance in the mining sector. 

Cohen said the Central Asian countries cannot wait long to develop their rare earths. “There is a competition, and the African countries, Latin American countries and others will compete increasingly.”  

Wilder Alejandro Sanchez, who heads a consultancy called Second Floor Strategies, says Central Asia needs a rare earth research center that can provide timely information to prospective customers and investors.  

Transportation is key, Sanchez said. “It’s not just about finding and mining them. You have to get them to the international market.”  

Access from the landlocked region at present is limited to China’s Belt and Road infrastructure or routes through Russia. Sanchez and others recommend using the Middle Corridor, also called the Trans-Caspian International Transport Route, which can carry goods to Europe across the Caspian and Black seas.  

These experts also say progress will depend on regional governments overcoming their traditional secretiveness regarding natural resources. They emphasize the importance of transparency, the rule of law, adherence to best practices and compliance with international norms if they hope to attract Western investment.
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WASHINGTON — The U.S. economy grew at an unexpectedly brisk 3.3% annual pace from October through December as Americans showed a continued willingness to spend freely despite high interest rates and price levels that have frustrated many households. 

Thursday’s report from the Commerce Department said the gross domestic product — the economy’s total output of goods and services — decelerated from its sizzling 4.9% growth rate the previous quarter. But the latest figures still reflected the surprising durability of the world’s largest economy, marking the sixth straight quarter in which GDP has grown at an annual pace of 2% or more. 

Consumers, who account for about 70% of the total economy, drove the fourth-quarter growth. Their spending expanded at a 2.8% annual rate, for items ranging from clothing, furniture, recreational vehicles and other goods to services like hotels and restaurant meals. 

The GDP report also showed that despite the robust pace of growth in the October-December quarter, inflationary measures continued to ease. Consumer prices rose at a 1.7% annual rate, down from 2.6% in the third quarter. And excluding volatile food and energy prices, so-called core inflation came in at a 2% annual rate. 

Those inflation numbers could reassure the Federal Reserve’s policymakers, who have already signaled that they expect to cut their benchmark interest rate three times in 2024, reversing their 2022-2023 policy of aggressively raising rates to fight inflation. 

“Although GDP growth came in hotter than expected in the fourth quarter, underlying inflation continued to slow,” said Paul Ashworth, chief North America economist at Capital Economics. “The upshot is that an early spring rate cut by the Fed is still the most likely outcome.” 

The state of the economy is sure to weigh on people’s minds ahead of the November elections. After an extended period of gloom, Americans are starting to feel somewhat better about inflation and the economy — a trend that could sustain consumer spending, fuel economic growth and potentially affect voters’ decisions. A measure of consumer sentiment by the University of Michigan, for example, has jumped in the past two months by the most since 1991. 

There is growing optimism that the Fed is on track to deliver a rare “soft landing” — keeping borrowing rates high enough to cool growth, hiring and inflation yet not so much as to send the economy into a tailspin. Inflation touched a four-decade high in 2022 but has since edged steadily lower without the painful layoffs that most economists had thought would be necessary to slow the acceleration of prices. 

The economy has repeatedly defied predictions that the Fed’s aggressive rate hikes would trigger a recession. Far from collapsing last year, the economy accelerated — expanding 2.5%, up from 1.9% in 2022. 

“Our expectation is for a soft landing, and it looks like things are moving that way,” said Beth Ann Bovino, chief economist at U.S. Bank. Still, Bovino expects the economy to slow somewhat this year as higher rates weaken borrowing and spending. 

“People are going to get squeezed,” she said. 

The economy’s outlook had looked far bleaker a year ago. As recently as April 2023, an economic model published by the Conference Board, a business group, had pegged the likelihood of a U.S. recession over the next 12 months at close to 99%. 

Even as inflation in the United States has slowed significantly, overall prices remain nearly 17% above where they were before the pandemic erupted three years ago, which has exasperated many Americans. That fact will likely raise a pivotal question for the nation’s voters, many of whom are still feeling the lingering financial and psychological effects of the worst bout of inflation in four decades. Which will carry more weight in the presidential election: The sharp drop in inflation or the fact that most prices are well above where they were three years ago? 

The Fed began raising its benchmark rate in March 2022 in response to the resurgence in inflation that accompanied the economy’s recovery from the pandemic recession. By the time its hikes ended in July last year, the central bank had raised its influential rate from near zero to roughly 5.4%, the highest level since 2001. 

As the Fed’s rate hikes worked their way through the economy, year-over-year inflation slowed from 9.1% in June 2022, the fastest rate in four decades, to 3.4% as of last month. That marked a striking improvement but still leaves that inflation measure above the Fed’s 2% target. 

The progress so far has come at surprisingly little economic cost. Employers have added a healthy 225,000 jobs a month over the past year. And unemployment has remained below 4% for 23 straight months, the longest such streak since the 1960s. 

The once red-hot job market has cooled somewhat, easing pressure on companies to raise pay to keep or attract employees and then pass on their higher labor costs to their customers through price hikes. 

It’s happened in perhaps the least painful way: Employers are generally posting fewer job openings rather than laying off workers. That is partly because many companies are reluctant to risk losing workers after having been caught flat-footed when the economy roared back from the brief but brutal 2020 pandemic recession. 

“Businesses are getting rid of job openings, but they’re holding onto workers,” Bovino said. 

Another reason for the economy’s sturdiness is that consumers emerged from the pandemic in surprisingly good financial shape, partly because tens of millions of households had received government stimulus checks. As a result, many consumers have managed to keep spending even in the face of rising prices and high interest rates. 

Some economists have suggested that the economy will weaken in the coming months as pandemic savings are exhausted, credit card use nears its limits and higher borrowing rates curtail spending. Still, the government reported last week that consumers stepped up their spending at retailers in December, an upbeat end to the holiday shopping season. 
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BRUSSELS — The European Union on Wednesday unveiled plans to strengthen the bloc’s economic security, including measures to protect sensitive technology from falling into the hands of geopolitical rivals such as China. 

Brussels has bolstered its armory of trade restrictions to tackle what it deems to be risks to European economic security, following Moscow’s invasion of Ukraine and global trade tensions. 

The fallout from the war in Ukraine hit Europe particularly hard, forcing the bloc to find alternative energy sources. Now, it wants to avoid a similar over-reliance on China, which dominates in green technology production and critical raw materials. 

On Wednesday, EU officials outlined an economic security package containing five initiatives, including toughening rules on the screening of foreign direct investment and launching discussions on coordination around export controls. 

The EU has already proposed new rules that it says are necessary to keep the bloc competitive during the global transition to clean technology and to bring more production to Europe. 

“In this competition, Europe cannot just be the playground for bigger players, we need to be able to play ourselves,” said the EU’s most senior competition official, Margrethe Vestager. 

“By doing what we are proposing to do, we can de-risk our economic interdependencies,” she told reporters in Brussels. 

Wednesday’s package is part of the EU’s focus on de-risking but not decoupling from China, pushed strongly by European Commission President Ursula von der Leyen. 

“The change in EU-China relations has been the driving force of this embrace of economic security, which is something extremely new for the EU,” said Mathieu Duchatel, director of international studies at the Institut Montaigne think tank. 

“Focus on riskier transactions” 

EU officials also pushed back on claims that the package had been watered down and that some of the initiatives would kick in too late. 

One of the initiatives is to revise the EU’s regulation on screening foreign direct investment, but others recommend further discussions, raising concerns that action could come too late. 

For example, the commission said it wanted to promote further discussions on how to better support research and development of technologies that can be used for civil and defense purposes. 

The EU also wants all member states to establish screening mechanisms, which could later lead to investments being blocked if they are believed to pose a risk. 

“I would not agree that the package is watered down,” the EU’s trade commissioner, Valdis Dombrovskis, said. 

He later said the EU wanted “to focus on riskier transactions and spend less time and resources on low-risk ones.” 

The negotiations are likely to prove a delicate balancing act for the commission. Investment and export control decisions are up to national governments; therefore, it must avoid overstepping its mark. 
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BANGKOK — China’s central bank said Wednesday it will cut the amount of reserves it holds for banks as part of a slew of measures to support the slowing economy.

The announcement by the governor of the People’s Bank of China prompted a surge in share prices, with Hong Kong’s benchmark jumping 3.6%.

Chinese stock markets have languished in recent months as investors pulled money out, discouraged by a faltering recovery from the shocks of the COVID-19 pandemic.

A sell-off earlier in the week was followed by unconfirmed reports that the government planned to get state-owned investment companies to funnel offshore funds into the markets to help staunch the losses. The central bank’s moves appear to be part of a concerted effort to stabilize the markets and instill greater confidence in the outlook for the world’s second-largest economy.

Central bank Gov. Pan Gongsheng told reporters in Beijing that the deposit reserve requirement would be cut by 0.5 percentage points as of Feb. 5. Pan said that would inject about 1 trillion yuan or $141 billion into the economy. As of December, the reserve requirement ratio was 7.4%.

Unlike bank reserves — the cash banks must keep on hand to cover unexpected demand — these reserves are held by the central bank and used mainly as a monetary policy tool.

Such changes are usually conveyed in a written notice by the central bank, not at a news conference.

Pan said the central bank also plans to issue a policy soon on lending to property developers to help support the industry.

China’s economy is recovering, he said, allowing ample room for policy maneuvers.

“At present, our country’s financial risks are generally controllable, the overall operations of financial institutions are sound, and financial markets are operating smoothly,” the government website China.com cited Pan as saying.

The economy expanded at a 5.2% annual pace in the October-December quarter, enabling the government to attain its target of about 5% annual growth for 2023. But the recovery remains uneven, and most forecasts say the economy will grow more slowly in 2024.

Chinese leaders have been talking up the economy in an all-out effort to counter such expectations.

Initial reactions were cautious.

Mark Williams of Capital Economics said the latest moves would “provide only a small boost for China’s economy.”

“Meaningful improvements in household or corporate borrowing would require substantial rate cuts or a significant change in economic sentiment. Neither seems likely in the near future,” he said in a commentary.

The slow pace of the recovery after China dropped stringent anti-virus precautions in late 2022 has added to gloom over a crisis in the once-booming property market as dozens of developers defaulted on loans after the government cracked down on excessive borrowing a few years ago.

That has left many Chinese families who had invested their life savings in unbuilt homes in limbo, unsure if the developers would deliver those apartments.

There have been some signs of improvement: Last week, the government resumed its reporting on the rate of unemployment among young people, which stood at a record 21.3% in June. According to a revised methodology, the latest youth unemployment rate was 15%. Overall unemployment stood at 5.1%.

Many youths also were left without work after the government cracked down on technology companies, which tended to hire younger workers. More recently, moves to impose more controls on online gaming spurred massive sell-offs of game company shares, leading the authorities to apparently backpedal on that plan.

The Federal Reserve and other major central banks have been raising interest rates and finding other ways to raise the cost of borrowing to help stem inflation, which peaked at 9.1% in mid-2022 in the United States. Central banks are now easing their monetary policies as price pressures abate.

In China, regulators are grappling with the opposite problem, a risk that weak demand will cause prices to spiral lower, discouraging investment and hobbling growth. The moves by the central bank this week will ease credit and pump money into the economy to try to spur businesses and consumers to start spending more.

China’s loan prime rate is now 3.45%. It’s the lending rate commercial banks give their highest quality customers and is a benchmark for other loans. The Federal Reserve’s benchmark rate is about 5.4%.

The central bank cut the reserve requirement twice in 2023, by 0.25 percentage points each time. A key policy tool for controlling the amount of money circulating in the economy, it peaked at more than 20% in 2011 and now is at its lowest level since the early 2000s.

“The authorities will likely launch more measures to stabilize market sentiment, such as mobilizing state resources to support the stock market,” Raymond Yeung of ANZ said in a report. “The authorities are clearly concerned about market sentiment.”

He noted that the central bank is also acting to avoid a weakening in the Chinese currency, the yuan. Pan told reporters in Beijing that the PBOC would ensure the yuan’s value remains stable.

Like many other analysts, Yeung said the latest moves might not be enough to fully reassure investors and that more needs to be done to foster wider reforms.

“This requires some structural measures to boost private sector confidence and the long-term outlook of the real estate sector,” he said. “The measures announced so far do not seem sufficient.”
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ALBUQUERQUE, NEW MEXICO — A federal judge is being asked to issue a stop-work order on a $10 billion transmission line being built through a remote southeastern Arizona valley to carry wind-generated electricity to customers as far away as California. 

A 32-page lawsuit filed on January 17 in U.S. District Court in Tucson, Arizona, accuses the U.S. Interior Department and Bureau of Land Management of refusing for nearly 15 years to recognize “overwhelming evidence of the cultural significance” of the remote San Pedro Valley to Native American tribes, including the Tohono O’odham, Hopi, Zuni and San Carlos Apache Tribe. 

The suit was filed shortly after Pattern Energy received approval to transmit electricity generated by its SunZia wind farm in central New Mexico through the San Pedro Valley east of Tucson and north of Interstate 10. 

The lawsuit calls the valley “one of the most intact, prehistoric and historical … landscapes in southern Arizona” and asks the court to issue restraining orders or permanent injunctions to halt construction. 

“The San Pedro Valley will be irreparably harmed if construction proceeds,” it says. 

Government representatives declined to comment Tuesday on the pending litigation. They are expected to respond in court. The project has been touted as the biggest U.S. electricity infrastructure undertaking since the Hoover Dam. 

Pattern Energy officials said Tuesday that the time has passed to reconsider the route, which was approved in 2015 following a review process. 

“It is unfortunate and regrettable that after a lengthy consultation process, where certain parties did not participate repeatedly since 2009, this is the path chosen at this late stage,” Pattern Energy spokesperson Matt Dallas said in an email. 

Plaintiffs in the lawsuit are the Tohono O’odham Nation, the San Carlos Apache Tribe and the nonprofit organizations Center for Biological Diversity and Archaeology Southwest. 

“The case for protecting this landscape is clear,” Archaeology Southwest said in a statement that calls the San Pedro Arizona’s last free-flowing river and the valley the embodiment of a “unique and timely story of social and ecological sustainability across more than 12,000 years of cultural and environmental change.” 

The valley represents an 80-kilometer (50-mile) stretch of the planned 885-kilometer (550-mile) conduit expected to carry electricity from new wind farms in central New Mexico to existing transmission lines in Arizona to serve populated areas as far away as California. The project has been called an important part of President Joe Biden’s goal for a carbon pollution-free power sector by 2035. 

Work started in September in New Mexico after negotiations that spanned years and resulted in approval from the Bureau of Land Management, the federal agency with authority over vast parts of the U.S. West. 

The route in New Mexico was modified after the U.S. Defense Department raised concerns about the effects of high-voltage lines on radar systems and military training operations. 

Work halted briefly in November amid pleas by tribes to review environmental approvals for the San Pedro Valley and resumed weeks later in what Tohono O’odham Chairman Verlon M. Jose characterized as “a punch to the gut.” 

SunZia expects the transmission line to begin commercial service in 2026, carrying more than 3,500 megawatts of wind power to 3 million people. Project officials say they conducted surveys and worked with tribes over the years to identify cultural resources in the area. 

A photo included in the court filing shows an aerial view in November of ridgetop access roads and tower sites being built west of the San Pedro River near Redrock Canyon. Tribal officials and environmentalists say the region is otherwise relatively untouched. 

The transmission line also is being challenged before the Arizona Court of Appeals. The court is being asked to consider whether state regulatory officials there properly considered the benefits and consequences of the project. 
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WASHINGTON — China brought a large delegation to this year’s World Economic Forum in Davos to try to convince the world that the globe’s second-largest economy is still open for business and a reliable place to invest. But analysts say Premier Li Qiang’s speech on Tuesday was short on specifics that might have reassured investors.

Li led a delegation of 140 people to this week’s five-day meeting of global political and business leaders. China brought as many as 10 ministerial-level officials related to China’s economic affairs, according to the U.S. news website Politico. Li is the highest-ranking Chinese leader to attend the annual meeting since 2017, reflecting the importance Beijing attaches to it.

Anna Ashton, director of China corporate affairs and U.S.-China at Eurasia Group, a New York-based global political risk consulting firm, told VOA in an email that China’s attention to the meeting “underscores 1) Beijing’s continued interest in shaping global economic relations and development efforts, and 2) the importance Beijing places on reviving its international trade and investment relationships.”

In his speech, Li assured investors and politicians that China’s economy has “huge potential” and remains an “important engine” of global growth despite the serious economic headwinds the country has seen over the past year.

Signs of trouble

China’s economy has been struggling to recover post-pandemic with the property market tanking, high youth unemployment and a drop last year in exports for the first time since 2016.

In the third quarter of last year, China recorded its first quarterly foreign direct investment deficit of $11.8 billion, the first time that has happened since records began in 1998. That means divestments and business downsizing were $11.8 billion greater than new investment, according to Bloomberg.

China’s official gross domestic product growth for 2023 was 5.2%, meeting its target of around 5% but lower than analysts’ expectations and one of its lowest annual growth rates in decades.

Despite the challenges, Li on Tuesday said that the economy’s long-term positive trend would not change, and that China would continue to contribute to world economic development. He also promised China would stay committed to its fundamental policy of opening its door wider to the world.

Gary Hufbauer, a senior fellow at the Peterson Institute for International Economics, told VOA that Li’s speech was generally positive and showed that he hoped to eliminate outsiders’ negative views of China’s economy.

But he added that Li’s speech did not list any specific measures Beijing would take that would attract Western companies, doing little to alleviate their concerns about where China’s economy is headed.

“I think the business community, especially firms that have big operations in China, would have the mood of ‘show me,’ because they can recite all sorts of regulations and restrictions that hamper their ability to do business, take their intellectual property, and make it really not such a friendly environment,” he said.

“So this speech did not have anything that I would call ‘concrete measures’ that would really appeal to the business community. So they will be more skeptical.”

Reasons for concern

Some trade groups say there is a shift away from investment in China’s economy in response to tightened political controls, including raids on firms and exit bans on foreign executives.

A November survey by the Conference Board, a U.S.-based nonprofit business membership and research group, showed that CEOs of multinational companies with operations in China are quickly losing confidence in that country.

The survey’s confidence index dropped to 54 on a scale of 0-100 from a record high of 72 in April. Forty percent of CEOs surveyed also expected capital investments in China to decrease, and almost as many expected to lay off employees in the next six months, compared with 9% in the first half of last year.

Japan’s Chamber of Commerce in China on Monday published figures showing 48% of companies surveyed said they did not invest in China or reduced their investment in 2023 compared with a year earlier.

According to Reuters news agency, Li said at a luncheon after his speech Tuesday, “We will take active steps to address reasonable concerns of the global business community.”

Just as Li was telling the world that China’s door would only open wider, China’s President Xi Jinping was sending a different message that emphasized the primacy of the Chinese Communist Party.

In a speech on January 16, Xi reiterated that China should advance economic development with “Chinese characteristics” that is different from Western financial models, adhering to the party’s centralized and unified leadership over economic work.

Eurasia Group’s Ashton said business thrives on predictability.

“The significance of Li’s words will be best assessed in the follow-through,” she said. “China’s own actions have and will continue to factor into the turbulent geopolitical atmosphere that Li described. Divergent priorities, interests and convictions cannot just be wished away, and cooperating effectively to address them is easier said than done.”

Just days before its annual meeting in Davos, Switzerland, the World Economic Forum released a survey of economists showing that none of them anticipate anything more than moderate expansion in China’s economy this year.
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The health of the economy often plays a big role in how Americans vote in general elections, including for the next president. This year, there are early signs that other issues are equally important to people as they prepare to cast their ballots in November. VOA’s Veronica Balderas Iglesias has the story from Washington.
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Abuja, Nigeria — Human rights group Amnesty International and other advocacy groups raised concerns Tuesday over British oil giant Shell’s sale of its onshore businesses in Nigeria.

Shell announced Tuesday it had concluded plans to sell the assets for $2.4 billion, but Amnesty said authorities should ensure the company addresses decades’ worth of oil spills before closing the deal.

In a post on the social media site X, Amnesty said, “Shell should not be allowed to wash its hands of the problems and leave.”

The international rights group called on Nigerian authorities to request a full assessment of existing pollution from Shell and the state of its infrastructure before allowing them to transfer ownership.

After nearly a century in Nigeria, Shell said it plans to sell its assets to a consortium of mainly local companies. The sales require the approval of Nigerian authorities.

Aminu Hayatu, a conflict researcher at Amnesty International, said the organization has been concerned about environmental degradation in the Niger Delta area.

“Activities of multinational organizations have for quite some time deteriorated that environment, Hayatu said. “Amnesty International is set to really observe the emergence of the new company as well as the leaving of the old ones and the exchanges between government and those companies in terms of their operations in those areas.”

Shell said that it will continue to operate less-challenging offshore businesses and that the new owner, Renaissance, will assume responsibility for the onshore assets.

For decades Shell has struggled with oil spills, vandalism, theft and sabotage in the troubled Niger Delta region, leading to lawsuits against the company.

Faith Nwadishi, founder of the Center for Transparency Advocacy, said, “One of the reasons why Shell is running away is because communities are becoming wiser, more knowledgeable, going to sue Shell in their home country and getting favorable judgment for the community. They’re just leaving their liabilities and responsibilities behind for the people who are going to take it up.”

Shell’s exit from onshore business in Nigeria follows other Western energy companies seeking more viable and profitable operations.

The company said its staff will be retained by the new leadership.

But Nwadishi says concerns remain.

“Anybody that is taking over … now should know that they’re taking over their liabilities,” she said. “These negotiations, did they take into consideration all of those liabilities for cleanup? Did it take into consideration loss and damages to the community? The terms of the negotiation or agreement should actually be made public.”

It’s not clear how Nigerian authorities will respond.
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