Author Archives: Reuters News Agency

China has ‘good faith’ to fix trade issues as talks with U.S. resume

FILE PHOTO: Shipping containers are seen at a port in Shanghai, China July 10, 2018. REUTERS/Aly Song/File Photo

By Michael Martina

BEIJING (Reuters) – China has the “good faith” to work with the United States to resolve trade frictions, the Foreign Ministry said on Monday as officials of the world’s two largest economies resumed talks in a bid to end their trade dispute.

U.S. officials are meeting their counterparts in Beijing this week for the first face-to-face talks since U.S. President Donald Trump and Chinese President Xi Jinping agreed in December to a 90-day truce in a trade war that has roiled global markets.

Trump said on Sunday that trade talks with China were going very well and that weakness in the Chinese economy gave Beijing a reason to work towards a deal.

On Monday, U.S. Commerce Secretary Wilbur Ross told NBC the talks were being held with appropriate-level staff and would help determine how the administration moves forward.

Ross also said he saw “a very good chance that we will get a reasonable settlement that China can live with, that we can live with and that addresses all of the key issues”. He added that it would be easiest to tackle immediate trade but harder to resolve enforcement issues and structural reforms such as intellectual property rights and market access.

The two sides agreed to hold “positive and constructive” dialogue to resolve economic and trade disputes in accordance with the consensus reached by their respective leaders, Foreign Ministry spokesman Lu Kang told a regular news briefing.

“From the beginning, we have believed that China-U.S. trade friction is not a positive situation for either country or the world economy. China has the good faith, on the basis of mutual respect and equality, to resolve the bilateral trade frictions.”

Trump imposed import tariffs on hundreds of billions of dollars of Chinese goods last year and has threatened more to pressure Beijing to change its practices on issues ranging from industrial subsidies to intellectual property to hacking. China has retaliated with tariffs of its own.

“As for whether the Chinese economy is good or not, I have already explained this. China’s development has ample tenacity and huge potential,” Lu said. “We have firm confidence in the strong long-term fundamentals of the Chinese economy.”

Lu also said Vice President Wang Qishan would attend the annual World Economic Forum in Davos, Switzerland in late January, but added that he had not yet heard of any arrangements for a meeting with Trump there.

By Monday evening, few details had emerged of the trade talks, which were scheduled to run through Tuesday.

Although the talks were held at a vice-ministerial level, Chinese Vice Premier Liu He, who has led trade negotiations with the United States and is a top economic adviser to Xi, made an unexpected appearance at the meetings on Monday, according to a person familiar with the discussions.

The U.S. delegation, led by Deputy U.S. Trade Representative Jeffrey Gerrish, includes undersecretaries from the U.S. departments of agriculture, commerce, energy and treasury, as well as senior officials from the White House.

Tu Xinquan, a Chinese trade expert at Beijing’s University of International Business and Economics, told Reuters before talks began that the meetings would likely focus on technical issues and leave major disagreements to more senior officials.

“China’s economy is significantly slowing down, and the U.S. stock market is declining quickly. I think the two sides need some kind of agreement for now,” Tu said.

Data last week showed manufacturing has slowed in both China and the United States, though the U.S. Labor Department on Friday reported a surge in new jobs in December along with higher wages.

Officials have given scant details on concessions that China might be willing to make to meet U.S. demands, some of which would require structural reforms unpalatable for Chinese leaders.

Even if a trade agreement is reached soon, analysts say it would be no panacea for China’s economy, which is expected to continue decelerating in the coming months.

China’s stridently nationalist Global Times tabloid said in an editorial late on Sunday that statements from both sides that they hoped to reach a deal were cause for optimism, but that Beijing would not cave in to U.S. demands.

“If China was going to raise the white flag, it would have done it already,” the paper said.

(Reporting by Michael Martina; additional reporting by Susan Heavey in Washington; Writing by Ryan Woo; Editing by Kim Coghill/Mark Heinrich)

Trump holds firm on border wall, offers steel option as compromise

U.S. President Donald Trump speaks to the media as he returns from Camp David to the White House in Washington, U.S., January 6, 2019. REUTERS/Joshua Roberts

By Jeff Mason and Ginger Gibson

WASHINGTON (Reuters) – U.S. President Donald Trump pledged on Sunday not to bend in his demand for a wall along the southern border with Mexico but said the barrier could be made of steel instead of concrete as a potential compromise with Democrats who refuse to fund it.

Trump’s comments came at the start of the third week of a partial government shutdown resulting from the dispute that has left hundreds of thousands of federal workers idled or without paychecks.

Trump threatened again, without providing specifics on where the funding would originate, to declare a national emergency as an alternative way to build the wall, depending on the outcome of talks in the coming days.

Democrats have declined to approve the $5.6 billion Trump wants to fulfill a 2016 campaign promise to curb illegal immigration. Led by new Speaker Nancy Pelosi, Democrats passed a bill in the House of Representatives last week to reopen the government without wall funding. Pelosi has called a border wall immoral.

“This is a very important battle to win from the standpoint of safety, number one, (and) defining our country and who we are,” Trump told reporters at the White House before leaving for a short trip to the Camp David presidential retreat.

“The barrier, or the wall, can be of steel instead of concrete if that helps people. It may be better,” he said.

The White House painted that offer, which Trump floated previously, as an olive branch.

In a letter to congressional leaders on Sunday detailing its funding demands, the Trump administration included a request for an additional $800 million to address urgent humanitarian needs at the southern border.

Mick Mulvaney, Trump’s acting chief of staff, told NBC’s “Meet the Press” that agreeing to a steel barrier would allow Democrats to stick to their refusal to fund a wall.

“That should help us move in the right direction,” he said.

House Majority Leader Steny Hoyer did not show his hand when asked whether the White House offer to move away from a concrete structure was evidence of compromise.

“It’ll be discussed,” he said on NBC.

Vice President Mike Pence led a second round of talks with congressional aides on Sunday about the issue, but Trump said he did not expect those talks to produce results, noting that the principals – himself, Pelosi and Senate Democratic leader Chuck Schumer – were the ones who could solve it quickly.

“If we don’t find a solution, it’s going to go on for a long time. There’s not going to be any bend right here,” Trump said.

He later tweeted that the Pence talks were productive. But a Democratic aide familiar with the meeting said Democrats urged the White House to pass measures to reopen the government without wall funding and Pence said Trump would not do that. The aide said no progress was made and no further meetings of the group were scheduled.

OTHER CONCESSIONS?

Democrats could demand other concessions from the White House, such as protections for immigrants brought illegally to the United States as children, known as Dreamers, or changes to other spending provisions. Trump said he wanted to help on the Dreamer issue but preferred to wait for a Supreme Court ruling on it first.

Democratic U.S. Senator Dick Durbin reacted coolly to Trump’s suggestion of declaring a national emergency. “I don’t know what he’s basing this on, but he’s faced so many lawsuits when he ignores the law and ignores tradition and precedent,” Durbin said on CBS’ “Face the Nation.”

Large chunks of the federal government were shut down on Dec. 22 after lawmakers and the president hit an impasse over Trump’s demand that a bill to keep the federal government operational include money to help build a $23 billion wall along the U.S. border with Mexico. About 800,000 government workers are either furloughed or working without pay.

“I can relate,” Trump, a former New York businessman, said when asked if he could relate to the pain of federal workers struggling to pay their bills. “I’m sure that the people that are on the receiving end will make adjustments.” Asked if workers would get paid on Friday, Trump said: “We’ll see whether or not it’s settled.”

Not all Republicans agree with Trump’s insistence on keeping government agencies shuttered until the border debate is resolved.

“It is not a sign of weakness to try to figure out a middle ground, and I think that both sides need to indicate a willingness to listen and to compromise, U.S. Senator Susan Collins of Maine said on NBC. She called the debate over using steel versus concrete “bizarre.”

House Democrats plan to pass a series of bills this week to reopen government, breaking up legislation they have already approved in a bid to get Republicans to agree to reopen certain agencies, Hoyer said on “Meet the Press.”

“We need to open up government and then negotiate. Not the other way around,” he said.

(Reporting by Jeff Mason and Ginger Gibson; Additional reporting by Amanda Becker and Pete Schroeder; Editing by Lisa Shumaker and Peter Cooney)

‘We are witches’: Clerical abuse scandal divides parishes and politics in Poland

A cross is seen near trees with mistletoe near the church in Kalinowka, Poland November 25, 2018. Picture taken November 25, 2018. REUTERS/Kacper Pempel

By Marcin Goclowski and Andrew R.C. Marshall

KALINOWKA, Poland (Reuters) – The former Catholic priest of the village of Kalinowka in Poland is serving three years in jail for molesting five schoolgirls. But Marta Zezula, a mother whose testimony helped convict him, says the priest’s victims are the ones made to feel guilty.

“We are witches … because we have pointed at the priest,” Zezula fumed as she shoveled straw into a chaff cutter in her barn in the tiny settlement in eastern Poland.

Many parishioners believe she and other mothers of those molested “simply convicted an innocent man”, she said.

Home to about 170 people, Kalinowka is a short drive from the main road, but feels more remote. The Holy Cross church, built in 1880, sits on a hill overlooking rolling farmland and forests full of deer.

Krystyna Kluzniak, hurrying into the well-kept church on a chilly November evening, said people should give the jailed priest a break. “The priest was cool and we miss him,” she said.

The priest, who cannot be named under Polish law, is now on trial again, charged with molesting another child. His lawyer, Marek Tokarczyk, said he denies the allegations. “We need a fair trial,” Tokarczyk said.

Similar scandals have shaken the Catholic Church and split communities in the United States, Ireland, Australia and elsewhere.

But Poland is one of Europe’s most devout nations, where most people identify as Catholics and the Church is widely revered. Priests were active in the fight against communism and in 1989, led by a Polish pope, John Paul II, the Church helped overthrow Communist rule.

Divisions over allegations of abuse are particularly stark here, said Marek Lisinski, the director of “Have no fear”, a group that advocates for victims of clerical abuse. Parishioners often side with priests and ostracize victims and their families, Lisinski told Reuters.

LANDMARK RULING

In October, “Have no fear” published a map that revealed the scale of the issue. It used black crosses to mark places where 60 priests had been convicted of abuses dating back to 1956.

Afterwards, Lisinski said, people called in to report another 300 cases of suspected abuse by priests which they had not raised with the Church or police for fear they would be doubted or shunned.

The same month, a Polish court of appeal upheld a landmark ruling which granted a million zloty ($260,000) in compensation to a woman abused by a priest as a child.

Jaroslaw Gluchowski, a lawyer in Poznan who represents victims of clerical abuse, said the ruling set an important precedent.

“We’re now at a moment when all victims in Poland are realizing that they’re not alone,” he said.

In a November statement, Poland’s bishops asked victims of clerical abuse for forgiveness and said the Church had begun collecting data to “identify the causes of these deeds and assess their scale”.

Archbishop Wojciech Polak, the primate of Poland, told Reuters the Church will publish its findings within six months.

Polak encouraged victims of clerical abuse to talk to their bishops, who are “obliged to report to the prosecutors’ service all credible cases they get knowledge of”.

He said he was aware the issue had caused rifts in some communities. “It is the Church’s responsibility to act in a way that doesn’t create divisions but heals them,” he said.

Senior bishops from around the world will meet Pope Francis at a conference in the Vatican in February to discuss protection of minors. Conference organizers have said everyone must be held accountable or the Church risked losing credibility worldwide.

The issue could also have political ramifications in Poland, Lisinski and other observers say. The country is due to elect a new parliament by December 2019.

The Catholic Church has long played a major political role in Poland, making its 25,000 priests not only revered but also influential with voters.

In December, a report appeared in Gazeta Wyborcza, a leading Polish daily, containing molestation allegations from a woman, Barbara Borowiecka, against the late priest Henryk Jankowski, an iconic figure in the anti-communist Solidarity movement.

The mayor of Gdansk, the birthplace of Solidarity, asked the Church to investigate the allegations. Archbishop Polak told Reuters the Jankowski allegations “should be investigated for the good of the Church” and said it was up to bishop of Gdansk to address them.

“POLAND’S COLLAPSE”

The ruling Law and Justice (PiS) party won power in 2015 with a blend of patriotism and piety that echoed the religious nationalism of the Church. In October, a former PiS minister, Antoni Macierewicz, credited the Polish clergy with helping the party win local elections that month.

Joanna Scheuring-Wielgus, an MP for a small opposition party called Now, is seeking an independent inquiry into child abuse by priests because she says the Church cannot be relied upon to investigate itself. She says the idea has received no support from PiS or other big parties.

A PiS spokesperson did not respond to several requests asking whether it supported the idea of an inquiry. Ryszard Czarnecki, a PiS MP for the European Parliament, responded to Reuters by asking why the Church should be singled out.

“I don’t know why we are focusing on one group, as this also concerns different groups – for example, artistic or journalistic ones,” he said.

About 12 million people, or almost a third of Poland’s population, regularly attend Mass, according to a survey by the Institute for Catholic Church Statistics, a Warsaw-based research center. The numbers slightly declined from 2015 to 2016, the survey showed.

Most children attend religious classes, but their numbers are dropping, too. In Lodz, Poland’s third-largest city, they fell from 80 percent in 2015 to fewer than 50 percent now, according to local government data quoted by the daily Dziennik Lodzki.

In November, the Church said such trends could have dire consequences. “Abandoning the Catholic faith and the Christian principles governing our national life and state’s functioning” could lead to Poland’s collapse, it warned in a pastoral letter.

In Kalinowka, Reuters spoke to seven parishioners. Most of them were sticking by the convicted priest. “I have a cousin whose son went to one of his classes and they didn’t see it,” Wieslaw Solowiej, a pensioner, said outside the Kalinowka church.

Jolanta Zych, whose nine-year-old daughter was among those molested, said neighbors spurned the family. “I always greet people but some turn their faces from me,” said Zych.

The other mother Reuters spoke to, Zezula, said her daughter began refusing food after the court case. “She didn’t want to eat because one woman told her the priest was in jail because of her.”

During Mass, Zezula said, people shrank away or refused to shake hands during a ritual greeting known as the sign of peace. She no longer goes to church.

Piotr Lenart, the current priest, referred questions to the Zamosc-Lubaczow Diocese in which the Kalinowka parish lies.

Michal Maciolek, a priest and spokesman for the diocese, said it had offered the victims and their families pastoral and psychological help, but this had been rejected. No financial compensation was offered, because “the diocese can’t take responsibility for the priest’s actions”.

(Additional reporting by Karol Witenburg; editing by Philippa Fletcher)

U.S. government shutdown grinds on, Trump threatens emergency powers

U.S. President Donald Trump works at his desk in the Oval Office as he prepares to speak to reporters in the Rose Garden after a meeting with U.S. Congressional leaders about the government shutdown at the White House in Washington, U.S., January 4, 2019. REUTERS/Carlos Barria

By Richard Cowan and Jeff Mason

WASHINGTON (Reuters) – President Donald Trump and senior Democrats failed to strike a deal in talks on Friday to end a partial shutdown of the U.S. government as they again fought over Trump’s request for $5 billion to fund his signature wall on the Mexican border.

After Democratic congressional leaders turned Trump down at a meeting in the White House Situation Room, the Republican president threatened to take the controversial step of using emergency powers to build the wall without approval from Congress.

Trump is withholding his support for a bill that would fully fund the government until he secures the money for the wall. As a result around 800,000 public workers have been unpaid, with about a quarter of the federal government closed for two weeks.

Senate Democratic Leader Chuck Schumer said Democrats had told Trump during the meeting to end the shutdown. “He resisted,” Schumer said. “In fact, he said he’d keep the government closed for a very long period of time, months or even years.”

Trump confirmed that comment but painted a more positive picture of the meeting, the first since a new era of divided government began when Democrats took control of the House of Representatives on Thursday.

“We had a very, very productive meeting, and we’ve come a long way,” Trump said.

But raising the stakes in his tussle with the newly emboldened Democrats, Trump threatened extraordinary measures to build the wall, which he says is needed to stem the flow of illegal immigrants and drugs into the United States.

NATIONAL EMERGENCY?

Asked by a reporter whether he had considered declaring a national emergency to build the wall, Trump said: “Yes, I have … I may do it … we can call a national emergency and build it very quickly.”

He said he could declare a national emergency “because of the security of our country, absolutely.”

The U.S. Constitution assigns Congress the power over funding the federal government so Trump likely would face legal challenges if he tried to bypass Congress on financing the wall. Building a wall – and having Mexico pay for it – was one of Trump’s main promises when he ran for president in 2016.

Trump’s wall project is estimated to cost about $23 billion.

Democrats have called the wall immoral, ineffective and medieval.

Nancy Pelosi, the newly elected Democratic speaker of the House, said Friday’s meeting with Trump was “sometimes contentious” but that they agreed to continue talking.

“But we recognize on the Democratic side that we really cannot resolve this until we open up government and we made that very clear to the president,” she said.

Credit rating agency Moody’s says the shutdown will cause minimal U.S. economic and credit market disruption but there could be a more severe impact on financial markets and the broad economy if the closure is protracted.

A Reuters/Ipsos opinion poll last week showed that 50 percent of the public blame Trump for the shutdown and 7 percent blame Republican lawmakers, while 32 percent blame Democrats.

In a Dec. 11 meeting with Pelosi and Schumer, Trump said he would be “proud” to shut the government over the security issue and would not blame Democrats. He has since said they are responsible.

Administration officials and congressional staffers are set to continue meeting over the weekend to try to end the impasse.

House Republican leader Kevin McCarthy told reporters that the leaders and Trump had decided to designate staff to work over the weekend. He said Trump had named Vice President Mike Pence, senior aide Jared Kushner and Secretary of Homeland Security, Kirstjen Nielsen.

The partial shutdown is straining the country’s immigration system, worsening backlogs in courts and complicating hiring for employers.

Federal agencies such as the Justice Department, Commerce Department and departments of Agriculture, Labor, Interior and Treasury have been hit by the shutdown.

House Ways and Means Committee chair Richard Neal, a Democrat, asked the Internal Revenue Service in a letter on Friday to explain the possible effects of the shutdown on the upcoming tax filing season for millions of Americans.

(Reporting by Richard Cowan and Jeff Mason; Additional reporting by Susan Heavey, Susan Cornwell, Tim Ahmann and Lisa Lambert; Writing by Alistair Bell; Editing by Bill Trott and Rosalba O’Brien)

Bipartisan bill unveiled in Senate to stop China tech threats

FILE PHOTO: Senate Intelligence Committee Vice Chairman Senator Mark Warner listens to testimony from Twitter CEO Jack Dorsey and Facebook COO Sheryl Sandberg at a hearing on foreign influence operations on social media platforms on Capitol Hill in Washington, U.S., September 5, 2018. REUTERS/Jim Bourg

By Diane Bartz

WASHINGTON (Reuters) – Two U.S. lawmakers who have been active in congressional efforts to address technology threats from China introduced a bill on Friday to create a White House office to fight state-sponsored technology theft and defend critical supply chains.

Senators Mark Warner, a Democrat and a vice chairman on the Senate Select Committee on Intelligence, and Marco Rubio, a Republican on the panel, introduced the legislation.

The bill aims to create the Office of Critical Technologies and Security to coordinate an inter-agency strategy to fight high-tech threats to national security posed by China and other foreign actors, they said in a press statement.

“We need a whole-of-government technology strategy to protect U.S. competitiveness in emerging and dual-use technologies and address the Chinese threat by combating technology transfer from the United States,” said Warner in a statement. “We look forward to working with the Executive Branch and others to coordinate and respond to this threat.”

The bill was introduced in the midst of a battle between Washington and Beijing as President Donald Trump’s administration has accused China of seeking to steal U.S. technology and other misbehavior.

The two nations have been locked in a trade war for much of the past year, disrupting the flow of hundreds of billions of dollars worth of goods and raising the concern of slowing growth. Talks are set for Beijing next week.

Separately, national security experts as well as lawmakers such as Warner and Rubio have been concerned about the use of Chinese-made telecommunications equipment in U.S. networks, and are attempting to exclude companies like Huawei Technologies Co Ltd and ZTE Corp from U.S. networks.

The White House office created by the bill would seek to ensure that critical U.S. supply chains, both government and non-governmental, are not jeopardized by reliance on foreign manufacturers, the two lawmakers said in the statement.

(Reporting by Diane Bartz; Editing by Susan Thomas)

Britain cautions Russia not to use detained ex-U.S. marine as pawn

FILE PHOTO: Britain's Foreign Secretary Jeremy Hunt arrives in Downing Street, London, Britain, December 18, 2018. REUTERS/Hannah McKay

By Kate Holton and Gabrielle T’trault-Farber

LONDON/MOSCOW (Reuters) – Britain cautioned Russia on Friday that individuals should not be used as diplomatic pawns after a former U.S. marine who also holds a British passport was detained in Moscow on espionage charges.

Paul Whelan was arrested by the FSB state security service on Dec. 28. His family has said he is innocent and that he was in Moscow to attend a wedding.

“Individuals should not be used as pawns of diplomatic leverage,” British foreign minister Jeremy Hunt said.

“We are extremely worried about Paul Whelan. We have offered consular assistance,” Hunt said. “The U.S. are leading on this because he is a British and American citizen.”

Since leaving the U.S. military, Whelan had worked as a global security executive with U.S. companies, had visited Russia and had developed a network of Russian acquaintances.

U.S. Secretary of State Mike Pompeo said this week that Washington had asked Moscow to explain Whelan’s arrest and would demand his immediate return if it determined his detention is inappropriate.

The FSB has opened a criminal case against Whelan but given no details of his alleged activities. In Russia, an espionage conviction carries a sentence of between 10 and 20 years in prison.

Whelan’s detention further complicates a strained relationship between Moscow and Washington, despite the professed desire of the two presidents, Donald Trump and Vladimir Putin, to build a personal rapport.

U.S. intelligence officials accuse Russia of meddling in U.S. elections – a charge Russia denies.

Putin has previously stated he would rein in Russian retaliatory measures against U.S. interests in the hope relations would improve, but Whelan’s detention indicates the Kremlin’s calculations may now have changed.

SWAP SPECULATION

A Russian national, Maria Butina, admitted last month to U.S. prosecutors that she had tried to infiltrate American conservative groups as an agent for Moscow.

David Hoffman, a former CIA Moscow station chief, said it was “possible, even likely”, that Russia had detained Whelan to set up an exchange for Butina.

Dmitry Novikov, a first deputy head of the international affairs committee in Russia’s lower house of parliament, commenting on a possible swap, said Russian intelligence first needed to finish their investigations. “Then we’ll see,” Interfax news agency quoted him as saying.

Whelan’s British citizenship introduces a new political dimension – relations between London and Moscow have been toxic since the poisoning of former Russian spy Sergei Skripal and his daughter in the English city of Salisbury in March last year.

Britain alleges Skripal was poisoned by Russian intelligence agents posing as tourists, while Russia denies any involvement.

RUSSIAN TIES

Paul Whelan is 48 and lives in Novi, Michigan, according to public records. Whelan is director of global security at BorgWarner, a U.S. auto parts maker based in Michigan.

The company said Whelan was “responsible for overseeing security at our facilities in Auburn Hills, Michigan, and at other company locations around the world”. Its website lists no facilities in Russia.

U.S. media said he had previously worked in security and investigations for the global staffing firm Kelly Services, which is headquartered in Michigan and has operations in Russia.

Whelan’s military record, provided by the Pentagon, showed that he served in the U.S. Marine Corps for 14 years. The highest rank he attained was staff sergeant. He was discharged in 2008 after being convicted on charges related to larceny, according to his records.

Whelan has for years maintained an account in VKontakte, a Russian social media network, which showed that he had a circle of Russian acquaintances.

Out of the more than 50 people tagged as Whelan’s friends on VKontakte, a significant number were software engineers or worked in the IT sector, and a significant proportion had ties to the fields of defense and security.

One of these people served in the Russian navy’s Black Sea fleet, a photo of that person posted on his own account indicated, and a second friend had on his VKontakte page photos of people in the uniform of Russian paratroop forces.

Whelan used the account to send out congratulations on Russian public holidays. In 2015, he posted the words in Russian: “In Moscow…” and accompanied it with a Russian mobile phone number. The number was not answering this week.

According to his brother David, Whelan was in Moscow to attend the wedding of a fellow retired marine. When he was detained he was staying with the rest of the wedding party at Moscow’s upmarket Metropol hotel, the brother said. He did not specify where the wedding itself took place.

An employee at the hotel, who spoke on condition, said on Friday they could not access the hotel’s database to check, but could not recall any weddings being scheduled at the hotel in the second half of December.

(Additional reporting by Polina Devitt in Moscow; Writing by Christian Lowe; Editing by Mark Heinrich)

Not a baby factory: South Korea tries to fix demographic crisis with more gender equality

A volunteer takes care of a baby who was left in the baby box at Jusarang Community Church in Seoul, South Korea, December 18, 2018. REUTERS/Kim Hong-Ji

By Joori Roh

SEOUL (Reuters) – In just over a decade, South Korea has spent the equivalent of a small European economy trying to fix its demographic crisis, yet birthrates have dropped to the lowest in the world.

This year, President Moon Jae-In, who describes himself as a feminist president, is testing a new angle: showing women more respect.

At the end of last year, South Korea announced plans to remove some of the disincentives for employing women, allowing both parents to take parental leave at the same time and extending paid paternal leave. Employers also get incentives to allow either parent to work fewer hours.

“Efforts on gender equality are very timely,” said Shin Eun-kyung, an economist with the Organisation for Economic Co-operation and Development. South Korea is the worst place for women to work in the OECD, despite women being among the organization’s best educated, and more highly so than men.

But the measures go beyond the workplace: mothers can choose to give the baby their own last name and a tickbox on birth certificates showing whether a baby was born outside marriage will be removed.

Fertility treatments will be offered to single women and unmarried couples as well. Social campaigns will encourage men to participate more in child care and household chores.

Contrast that with a 2016 effort by the previous government, run by the country’s first woman president, Park Geun-hye, which launched a website carrying a real-time statistical heatmap of women of child-bearing age, marriages and births in the hope of spurring competition between cities and regions.

The website was taken down after one day, with women complaining it made them feel like “reproductive organs”.

“The country sees women as baby factories,” says Hong Sook-young, who produces the country’s most popular children TV show. Asked about the latest measures, Hong said “at least pretending to hear what people really want is a start toward change”.

 

TEMPLE BONDING

South Korea’s demographic time bomb is ticking louder. The government’s latest forecast sees its population declining from 2027, and a presidential committee said the country’s economic growth potential could fall to below 1 percent.

Birth rates have long been a policy priority: since 2006, the government has spent 152.9 trillion won ($135.65 billion) – about the size of an economy like Hungary or Nevada – on perks for families and subsidies for children from birth through university and beyond. Last year’s 26.3 trillion low birth policy budget was more than half the defense spending of a country technically still at war with its northern neighbor.

But demographic experts say money is not the main issue: the experience of advanced countries with higher birth rates, such as France or Sweden, shows gender equality plays a crucial role.

The previous allocation of resources drew criticism as well.

The government went far beyond child allowances and subsidizing care and education. For instance, it funded temple stays for family bonding and financed youth seeking brief jobs abroad.

Many such programs will end, with the 2019 birth-support budget cut by a quarter, to 20.5 trillion won.

“It should have been cut a long time ago,” said Jung Jae-hoon, social welfare professor at Seoul Women’s University.

Jung cautioned, however, the signal the government was finally sending will take a long time to filter through the conservative East Asian society.

Births outside marriage, for instance, are so widely frowned upon that they amount to only 1.9 percent of the total, the lowest anywhere. Experts compare that to France, where the ratio is over 50 percent and the birth rate is 1.9 versus South Korea’s 1.05. Abortion is illegal and adoption rules very strict.

The stigma of out-of-wedlock babies has seen Seoul’s Jusarang Community Church build an oven-sized “baby box”, with cushions and a heating system into its outside wall.

Last year, 261 children were abandoned across the country, according to Statistics Korea.

JOBS FOR MEN

About 56 percent of women aged 15-64 work in South Korea, below the OECD average of almost 60 percent, and 72-75 percent in Denmark and Sweden, where birth rates are among the highest of advanced economies.

Recruiters say married young women are less likely to get job opportunities due to discrimination.

In November, the Supreme Court upheld a four-year jail sentence against a former CEO of state-run Korea Gas Safety Corp over manipulating interview scores to knock women out of the hiring process.

While Samsung Electronics has a more balanced gender ratio than Apple globally, with women accounting for 45 percent of the staff versus a third at its U.S. rival, only one in four staff at its Korea headquarters are women. None of the nine board members at Hyundai Motor Co are women, versus six out of 12 at General Motors.

“The whole period of before, during and after childbirth weighs on our career,” said a female assistant manager at Hyundai Motor. The pay gap between sexes only makes it harder, she added.

South Korea’s gender wage gap is highest among advanced countries at 34.6 percent, above OECD average of 13.8 percent.

A Hyundai Motor spokeswoman said the firm was committed to providing equal opportunities to all employees and opposes discrimination. A Samsung Electronics spokeswoman said the company has been recruiting more females, including in managerial positions, and that most staff return to work after parental leave and its daycare centers can look after 3,000 children.

WEAK ECONOMY

Still, critics say while Moon’s approach to birth rates is an improvement, his job and housing policies discourage parenthood. Minimum wage hikes have led to higher unemployment, while larger downpayment requirements have made homes unaffordable for many.

“Creating a structure that enables us to have our own house is mostly needed,” said Lee Kyoung-min, a store manager at Lotte Mart, a father of three.

Some also argue work-life balance could be better: Moon in July cut the working week to 52 hours from 68, but South Koreans still work 15 percent longer than the OECD average.

If birth rates don’t improve, South Korea’s economy could be 5 percent smaller by 2060, as productivity falls and higher spending for elderly care leaves less room for investment, the National Assembly Budget Office estimates.

Industries catering for babies are struggling. Seoul has lost one in four maternity wards and in 2018 the capital sacked more than half its teachers.

Ryu Won-woo, manager of baby fair organizer BeFe, praised the government’s measures, especially those encouraging more responsibilities for dads. But he does not expect quick results.

“More local baby-product companies may disappear before Korea sees more babies,” Ryu said.

(Reporting by Joori Roh; Editing by Marius Zaharia and Lincoln Feast.)

Illinois Church abuse survivors demand perpetrators’ names

Cindy Yesko is presented as a survivor of clergy sex abuse by a legal team of attorneys Jeff Anderson and Marc Pearlman, during a news conference in Chicago, Illinois, U.S., January 3, 2019. REUTERS/Kamil Krzaczynski

By Suzannah Gonzales

CHICAGO (Reuters) – Survivors and lawyers demanded on Thursday the Catholic Church make public the names of 500 priests or clergy members in Illinois accused of child sexual abuse, in the latest outcry of a global crisis.

They spoke out two weeks after Illinois state Attorney General Lisa Madigan issued a blistering report stating alleged abusers had not been publicly identified by the Church and many had not been properly investigated.

“We’re here to fight for the 500 that have been identified as the number of clergy offenders who the Catholic bishops … in Illinois know about who have not disclosed,” attorney Jeff Anderson said at a news conference standing alongside survivors.

Anderson said he and his colleagues will issue a report by next month that identifies every clergy offender accused of child sexual abuse who was brought to their attention.

Children cannot be protected unless the names are provided to police and the general public, Anderson said.

Knowing the names of the accused priests would also help victims who have not come forward, survivor Ken Kaczmarz said.

“If the priest that molested them is on a published list, those people that are currently suffering in silence will, I guarantee you, have the courage to seek help,” he said.

The Illinois dioceses of Rockford, Joliet and Belleville on Thursday stood by lists published on their websites of priests with substantiated allegations of sexual abuse of a minor and of clergy removed from ministry.

Representatives of the other three dioceses in Illinois did not immediately respond to requests for comment.

Madigan, who opened her investigation in August and leaves office later this month, said the 500 priests and clergy members her office had identified were in addition to 185 publicly named by the six dioceses.

Facing accusations of sexual abuse and coverups by priests around the world, Pope Francis on Thursday accused U.S. bishops of failing to show unity in the face of the crisis.

Survivors gathered in downtown Chicago on Thursday as U.S. bishops met near the city for seven days of prayer and spiritual reflection ahead of a gathering at the Vatican in February to confront the global abuse crisis.

“There has to be more than 500. That’s just the start. We need a comprehensive list in order for the Church to feel safe again,” Cynthia Yesko, a survivor and plaintiff of a lawsuit seeking the disclosure of the names of clergy offenders in Illinois, said.

(Reporting by Suzannah Gonzales in Chicago; Editing by Caroline Stauffer and Matthew Lewis)

Strong U.S. jobs data boosts stocks, soothes economic fears

FILE PHOTO: Traders work on the floor of the New York Stock Exchange (NYSE) in New York, U.S., December 27, 2018. REUTERS/Eduardo Munoz

By April Joyner

NEW YORK (Reuters) – World stock markets rallied on Friday while bond yields rose after sharply declining earlier in the week as Beijing announced a new round of trade talks with Washington and U.S. employment data pointed to economic strength.

Equities around the globe were buoyed by the news that China and the United States will hold trade talks in Beijing on Monday and Tuesday.

In the United States, stocks got another boost as stronger-than-expected U.S. employment data soothed some concerns of slowing economic growth. That was welcome news to investors after sharp declines on Thursday following Apple Inc’s cut in its revenue forecast.

“As nervous as we all were yesterday on this Apple news, this does help to soften that a bit, that maybe the consumer or the average person still is more confident than we are giving them credit for,” said J.J. Kinahan, chief market strategist at TD Ameritrade in Chicago.

The strong U.S. jobs report raised questions among some market watchers about the Federal Reserve’s monetary policy, which has been scrutinized in recent weeks as economic worries have mounted. However, Wall Street surged further after Fed Chair Jerome Powell spoke at a meeting of the American Economic Association and said he would not resign if asked to by U.S. President Donald Trump.

Conversely, safe-haven assets that had climbed this week as equity markets were roiled came down substantially. Treasury yields rose sharply after the release of U.S. employment data, and the dollar gained 0.6 percent against the yen. Spot gold prices, which reached a six-month peak on Thursday, dropped 0.8 percent.

In U.S. equities, the Dow Jones Industrial Average rose 681.9 points, or 3.01 percent, to 23,368.12, the S&P 500  gained 66.58 points, or 2.72 percent, to 2,514.47 and the Nasdaq Composite added 218.87 points, or 3.39 percent, to 6,682.37.

The pan-European STOXX 600 index jumped 2.67 percent, while MSCI’s gauge of stocks across the globe gained 2.16 percent.

Benchmark 10-year Treasury notes last fell 32/32 in price to yield 2.6641 percent, from 2.553 percent late on Thursday.

Earlier, an announcement from China’s central bank that it would cut the amount of cash that banks must hold as reserves for the fifth time in the past year lifted Asian and European stocks. The move frees $116 billion for new lending as Beijing tries to reduce the risk of a sharper economic slowdown.

Japanese equity markets, which opened for their first session of the new year, were the main exception, weighed down by the sharp rise in the yen in the past few days.

The news of the U.S.-China trade talks boosted oil prices, with both Brent and U.S. crude futures around 4 percent higher.

 

(Reporting by April Joyner; Additional reporting by Virginia Furness, Swati Pande, Wayne Cole and Chuck Mikolajczak; editing by Jon Boyle, Larry King and Dan Grebler)

China warns pig trade against African swine fever cover-ups as Taiwan concerns grow

Pork for sale is seen at a market in Beijing, China December 26, 2018. Picture taken December 26, 2018. REUTERS/Jason Lee

BEIJING/TAIPEI (Reuters) – China has warned the country’s pork industry that covering up cases of African swine fever is a crime, days after a dead pig was found on a Taiwanese beach prompting Taipei to claim Beijing was not sharing accurate information on the disease.

China’s animal husbandry and veterinary affairs bureau is stepping up investigation and punishment of illegal activity in the pig industry, said a statement published on the Ministry of Agriculture and Rural Affairs website on Friday.

Failing to report deaths and privately slaughtering and selling sick or dead pigs would be pursued under criminal law, it said, and compensation of 1,200 yuan ($175) for each pig culled was sufficient incentive for farmers to report the disease.

In the worst epidemic of the disease ever seen, China has confirmed about 100 cases of African swine fever across 23 provinces since August last year. The disease, for which there is neither cure nor vaccine, is deadly to pigs but does not harm people.

But many experts believe it is even worse than has been reported, and Taiwan President Tsai Ing-wen urged Beijing last month to “not conceal” information about the disease.

Tsai raised the issue again in a New Year’s speech after a dead pig was found on a beach on Taiwan’s Kinmen island, a half-hour ferry ride from the east coast of China. The pig has since been confirmed to have the African swine fever virus, while another dead pig was found on a nearby island on Friday, Taiwan’s official Central News Agency reported.

“During our recent efforts to prevent an African swine fever epidemic, China’s government has never followed the relevant agreements and provided Taiwan with accurate, real-time reports about the epidemic situation,” she said.

China has repeatedly said that the disease has been effectively dealt with and is under control. The Ministry of Agriculture and Rural Affairs did not immediately respond to a fax seeking comment on Friday.

The dead animals found on the Taiwanese islands have stoked fears that Taiwan’s pigs could soon become infected with the disease.

Taiwan’s herd of 5.39 million pigs is tiny compared with China’s 700 million, but pork is the most popular meat in both places and domestic production in Taiwan reduces its need for imports of the staple meat.

(Reporting by Dominique Patton in BEIJING and Yi-Mou Lee in TAIPEI; Editing by Kenneth Maxwell)