July 22, 2020

Daily News Brief

July 22, 2020

Top of the Agenda

U.S. Orders China to Close Houston Consulate

The United States ordered China to close its consulate office in Houston (WaPo) amid deteriorating relations between the two countries. China denounced the move as an “unprecedented escalation” and vowed to retaliate (SCMP). 

A U.S. State Department spokesperson said the closure was needed to protect U.S. intellectual property and Americans’ “private information.” U.S.-China relations are at a historic low point, with tensions over a range of issues including the pandemic, a new national security law for Hong Kong, expulsions of journalists by both countries, and China’s treatment of Muslim Uighurs. Yesterday, U.S. officials accused two Chinese hackers of targeting U.S. firms involved in coronavirus research (WSJ). Analysts said China would likely respond in kind to the Houston consulate closure.

Analysis

“I think [people in Washington] have political considerations, mainly around the election,” Peking University’s Wang Yong tells the Washington Post. “They are taking such a tough approach, demonizing and turning hostile to China, making China an enemy, to mobilize people domestically and reverse the unfavorable situation of President [Donald J.] Trump in the election.”

“The United States must reject the punitive unilateralism that has become the norm in recent years and that has produced no trade or national security gains whatsoever. It must rejigger its relationship with allies in Europe and Asia, who provide its only remaining chance at balancing China in the decades ahead,” CFR’s Mira Rapp-Hooper and Kurt M. Campbell write in Foreign Affairs.

Explore this CFR timeline of U.S.-China relations.

Pacific Rim

Japan Launches Travel Campaign Amid Coronavirus Concerns

The Japanese government rolled out a campaign to promote domestic travel (Japan Times) as part of the country’s economic reopening. The program comes amid a rising coronavirus caseload and widespread public opposition. 

South and Central Asia

Pakistan Issues Warning on TikTok

The Pakistan Telecommunication Authority issued a final warning for the Chinese-owned social media app TikTok, urging it to control “immoral, obscene, and vulgar content” (Al Jazeera). It also blocked the streaming platform Bigo over similar concerns. India banned TikTok in June, and the United States is considering similar action.

India: Nearly one-quarter of Delhi residents carry antibodies for the new coronavirus disease, COVID-19, according to a government study (Hindu).

Middle East and North Africa

Iran Vows Retaliation Against U.S. for Soleimani Killing

In a meeting with Iraqi Prime Minister Mustafa al-Kadhimi, Iranian Supreme Leader Ali Khamenei said his country would “definitely strike back” in response to the United States’ January killing of Iranian commander Qasem Soleimani in Baghdad (RF). He also said Iran would not interfere in Iraqi affairs.

The President’s Inbox podcast explains Soleimani’s killing.

Israel: The Knesset will vote on a bill today that could allow executive branch decisions to go into effect without initial parliamentary oversight (Haaretz). Protesters temporarily blocked entrances to the legislature and called for Prime Minister Benjamin Netanyahu’s resignation.

Sub-Saharan Africa

African Countries Face Rising Debt Burdens

African debt burdens are outpacing those in other emerging markets, according to a Fitch ratings report (East African). The region has been hit hard as oil prices, remittances, and tourism revenues drop amid the coronavirus pandemic, and several countries are in danger of major debt crises.

Congo: The World Health Organization warned it has a “serious funding gap” to confront an Ebola outbreak in northern Congo (AP). Current funds might only last a few more weeks.

This CFR Backgrounder explains what to know about the Ebola virus.

Europe

UK Considers Crackdown on Foreign Intelligence Operatives

Downing Street is considering legislation mandating that foreign agents register with British authorities after a new report found the government failed to properly investigate Russian interference in the 2016 Brexit referendum (Guardian). Australia and the United States have similar requirements.

Ukraine: An hours-long hostage situation ended without fatalities after Ukrainian President Volodymyr Zelensky spoke with the hostage-taker and agreed to post a video recommending a documentary (NYT) about animal abuse.

Americas

Brazil Unveils Tax Reform Proposal

Economic Minister Paulo Guedes presented Congress with an initial plan to simplify Brazil’s complex tax system, a critical step toward reinvigorating the economy (FT). Guedes will now negotiate with legislators, who have offered their own tax reform proposals.

Venezuela: Russian President Vladimir Putin greenlit a $4 billion loan to cash-strapped Venezuela (MercoPress).

United States

Trump Warns Pandemic Could Worsen

During his first coronavirus briefing in months, President Trump said the pandemic could worsen before improving and urged people to wear masks (BBC). Trump has previously sought to downplay the pandemic and opposed masks.

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