Vietnam’s Rare Earth Sector on the Rise

Vietnam, with the world’s second-largest reserves of the rare earths used in such modern devices as electric vehicle batteries and smart phone screens, is intensifying mining of the critical minerals. The industry, though, faces high processing costs, environmental concerns, and the takedown of industry leaders for illegal mining and mineral sales.

Vietnam’s rare earth resources are second only to those of China, which has held a tight monopoly since the 1980s. With Chinese relations with the West becoming more volatile, many countries are looking for other sources for the elements.

“China produces about 60% of the world’s rare earths but what they process is over 90%,” Louis O’Connor, CEO of Strategic Metals Invest, an Irish investment firm, told VOA.

“It was not a good idea to allow one country to dominate critical raw materials that are critical to all nations’ economic prosperity and increasingly military capability,” he said.

O’Connor added that while China has the world’s majority of raw materials, its dominance over technical expertise in the complex and costly process of rare earth refining is even greater. China has 39 metallurgy universities and approximately 200 metallurgists graduate weekly in the country, he said.

“The ability to go from having the potential to end product — that’s the most challenging, complicated, and expensive part,” O’Connor said. “For Vietnam, even if they have the deposits, what they don’t have is the human capital, or the engineering expertise.”

Vietnam increased rare earth mining tenfold with its output hitting 4,300 tons last year, compared to 400 tons in 2021.  according to the U.S. Geological Survey. Vietnam said in July it plans to process 2 million tons of rare earth ores by 2030 and produce 60,000 tons of rare earth oxides annually starting in 2030. This year, China’s mining quota is set at 240,000 tons to meet the demand for the electric vehicle industry, according to Chinese government data.

The United States and other countries are interested in Vietnam increasing its production of rare earths.

“The U.S. wants Vietnam to become a more important supplier and perhaps replace China, if possible, because of the risk that the U.S. may face in relying on rare earth supplies from China,” Le Hong Hiep, senior fellow at the ISEAS-Yusof Ishak Institute in Singapore told VOA.

“Not only the U.S., but also other partners like Korea, Japan, and Australia also are working with Vietnam to develop the rare earth industry,” he said.

South Korean President Yoon Suk Yeol signed a memorandum of understanding in Vietnam in June to establish a joint supply chain center for rare earth minerals.

“We reached an agreement that there is more potential to develop rare earths together, as they are abundant in Vietnam,” Yoon said in a June 23 statement with Vietnam’s president Vo Van Thuong.

The United States signed such a memorandum on cooperation in the rare earths sector during President Joe Biden’s visit to Hanoi on September 9.

“We see Vietnam as a potential critical nexus in global supply chains when it comes to critical minerals and rare earth elements,” Marc Knapper, U.S. ambassador to Vietnam, said on September 13 during a digital press briefing. “We certainly want to work together to ensure that Vietnam is able to take advantage of its rich resources in a way that’s also sustainable.”

Scandal

However, a handful of Vietnam’s key rare earth enterprises have become entangled in scandal. On October 20, police arrested six individuals for mining and tax violations.

Police arrested Doan Van Huan, chairman of the Hanoi-based Thai Duong Group that operates a mine in Yen Bai province, and its chief accountant, Nguyen Van Chinh, for violating regulations on the exploration and exploitation of natural resources and accounting violations, the Public Security Ministry said. The two were accused of making $25.5 million from the illegal sale of rare earth ore and iron ore. Police raided 21 excavation and trading sites in Yen Bai province and three other locations. Authorities seized an estimated 13,700 tons of rare earth and more than 1,400 tons of iron ores, according to local publication VnExpress.

Although government statements did not state what made Thai Duong’s rare earth sales illegal, a source told Reuters raw Yen Bai mine ore had been exported to China to avoid high domestic refining costs, in violation of Vietnamese rules.

The chairman, Luu Anh Tuan, and accountant, Nguyen Thi Hien, of the country’s primary rare earth refining company, Vietnam Rare Earth JSC, were also arrested for violating accounting regulations in trading rare earth with Thai Duong Group. Dang Tran Chi, director of Hop Thanh Phat, and his accountant Pham Thi Ha were arrested on the same charge.

Looking at corruption in Vietnam’s rare earth industry will be “top of the list” for future investors, O’Connor said.

“Corruption levels would have to be looked at,” he said. “If you’re buying a metal that’s going to need to perform in a jet engine, for example or a rocket … they have to be sure of the purity levels. The chain of custody of these, it’s more important really than gold.”

Vietnam committed to industry

Hanoi is committed to developing the rare earths industry even though economic gains are limited by environmental and production costs, Hiep told VOA.

“Vietnam is now interested in promoting this industry mainly because of the strategic significance,” Hiep told VOA. “If you can grow this industry and become a reliable supplier of rare earth products for the U.S. and its allies, Vietnam’s strategic position will be enhanced greatly.”

“Whether that will be successful, we have to wait and see,” he added.

There are also environmental concerns for the growing industry, particularly as a crackdown on Vietnam’s environmental organizations and civil society leaves little room for public speech.

“The biggest challenge is going to be how do you handle the waste process from the mining,” said Courtney Weatherby, deputy director of the Southeast Asia Program at Washington’s Stimson Center told VOA.

“Ensuring that development happens in a sustainable way takes a lot of different actors,” she said.

But Duy Hoang, executive director of unsanctioned political party Viet Tan, said the room for outside actors to express concern over environmental and labor practices is narrowing.

“What we’re seeing is sort of a shrinking space for civil society to speak out and a number of the leading environmental activists are now in jail. We don’t have their voices which are very needed and I think there may be self-censorship going on by other activists,” he said. “There has to be accountability.”

White House Hopes to Lead Global Charge in ‘Promise, Peril’ of Emerging Tech Like AI

American leadership is essential in establishing norms and laws to “determine how we both glean the promise and manage the peril” of emerging technologies like artificial intelligence and digital economic and social platforms used to connect billions of people around the world, a White House adviser told VOA.

The Biden administration has rolled out a number of initiatives on the topic — most recently, an executive order that aims to set new AI safety and security standards. That order relies on cooperation from private developers and other countries, “because the attackers are in one set of countries, the infrastructure is in another and the victims are global,” said Anne Neuberger, deputy national security adviser for cyber and emerging technology at the National Security Council.

Neuberger sat down with VOA White House Correspondent Anita Powell to explain these complex, compelling technologies and how she thinks they have exposed the worst but also the best in humanity.

The following has been edited for length and clarity.

VOA: Thank you so much for sitting down with VOA today. Can you walk us through the concrete outcomes of the recent meeting between President Joe Biden and Chinese President Xi Jinping in the areas you cover — cybersecurity, AI and the digital economy?

Anne Neuberger, White House deputy national security adviser: Of course, strategic technologies are very important to both of our countries’ growth and national security — and we’re global players on a global stage. The most important part of the discussion was two leaders coming together to say: While we are in competition, we’re committed to working together on areas where we can collaborate – areas like climate change, like discussions of what are the rules for artificial intelligence.

VOA: Would you assess that the meeting made any progress, especially on AI regulation?

Neuberger: Certainly very good discussions related to an agreement for the countries to sit down and establish a working group on AI [about] appropriate guardrails and guidelines in this area.

VOA: I’m going to stick with AI and the administration’s recent moves, like the AI Bill of Rights and also the attempt to set some norms at the recent London summit on AI. Why does the administration think U.S. leadership matters so much here?

Neuberger: For two reasons. First, the United States is a committed democracy and AI is a major technology that brings both promise and peril. It is up to us to determine how we both glean the promise and manage the peril. President Biden has made that clear in his game-changing executive order that, as a country, we must manage the perils in order to glean the promise.

VOA: Speaking of the perils of AI, what is the administration doing to prevent the malicious use of generative AI in both conflicts and contests? I’m talking about conflicts like Israel and Ukraine, but also contests like the upcoming elections in Congo, in Taiwan and here in the United States.

Neuberger: We’ve seen new AI models that generate very realistic videos, very realistic images. In terms of generative AI related to elections, I want to lift up one of the voluntary commitments that the president negotiated, which was around watermarking: having a visible and potentially invisible mark on an AI-generated image or video that notes that this is AI-generated, to alert a viewer. An invisible mark could be used so that, even if there are attempts to remove this mark, the platforms themselves can still be able to portray that message and help educate individuals. This is still an area of evolving technology. It’s getting better and better. But companies made commitments to start marking content that they generate. And I know a number of social media platforms are also making commitments to ensure that they display messages to help consumers who see such content know that it is generated by artificial intelligence.

VOA: Moving on to cybersecurity and malign actors like North Korea and Russia, what is the administration doing to curb their work in this area?

Neuberger: We see North Korea really using cyberattacks as a way to get money because they’re such a heavily sanctioned regime. So North Korea moved from targeting banks to targeting … cryptocurrency infrastructure around the world. And the White House has had a focused effort to bring together all elements we have to fight that with Treasury Department designations.

There’ll be further designations coming up for the cryptocurrency mixers that launder funds stolen from those cryptocurrency infrastructures. We also have been working with the industry to press them to improve the cybersecurity of their systems as well as law enforcement. U.S. law enforcement has been cooperating with partners around the world to take down that server infrastructure and to arrest the individuals who are responsible for some of this activity.

VOA: Tell us a little bit about the counter-ransomware initiative you’re working on.

Neuberger: Absolutely. Essentially, criminal groups, many of which are based in Russia with infrastructure operating from around the world, are locking systems … in order to request that the system owners pay ransom. In the United States alone in the last two years, $2.3 billion was paid in ransom. It’s a fundamentally transnational fight. … What we’ve done is assemble 48 countries, Interpol [and] the European Union to take this on together, because we know that the attackers are in one set of countries, the infrastructure is in another, and the victims are global. As the White House built this initiative, we ensure that the leadership is diverse.

So, for example, the leaders of the effort to build capacity around the world are Nigeria and Germany — intentionally, a country from Africa and a country from Europe, because their needs are different. And we wanted to ensure that as we’re helping countries build the capacity to fight this, we’re sensitive to the different needs of a country like Nigeria, like Rwanda, like South Africa, like Indonesia. Similarly, there’s an effort focused on exercising information, sharing information together.

You asked about the key deliverables from this most recent meeting. I’ll note three big ones. First, we launched a website and a system where countries can collaborate when they’re fighting a ransomware attack, where they can ask for help [or] learn from others who fought a similar attack. Second, we made the first ever joint policy statement — a big deal — 48 countries committing that countries themselves will not pay ransoms, because we know this is a financially driven problem. And third, the United States committed that we would be sharing bad wallets [that] criminals are using to move money around the world so other countries can help stop that money as it moves as well. So that’s an example of three of the many commitments that came out of the recent meeting.

VOA: Let’s talk about the Global South, which has pioneered development of really interesting digital economic technologies like Kenya’s M-PESA, which was rolled out in, like, 2007. Now the U.S. has Venmo, which is modeled on that. How is the U.S. learning from the developing world in the development of these projects and also the perils of these products?

Neuberger: M-PESA is a fantastic example of the promise of digital tech. Essentially, Kenya took the fact that they had a telecom infrastructure, and built their banking infrastructure riding on that, so they leapt ahead to enable people across the country to do transactions online. When you look at Ukraine in the context of Russia’s invasion of Ukraine, Ukraine quickly moved their government online, really building on lessons learned from Estonia, to enable Ukrainians — many who are in Poland and Hungary — to continue to engage with their government in a digital way.

The U.S. Agency for International Development is tremendously proud of that Ukrainian project and is using it as a model as we look to other countries around the world. So we’re learning a lot from the creativity and innovation; what we want to bring to that is American development, skill and aid, and also plugging in American tech companies who can accelerate the rollout of these projects in countries around the world, because we still believe in the promise of digital. But you mentioned the peril, and that’s where cybersecurity comes in.

VOA: This lines us up perfectly for my final question, about the promise and the peril. In the digital world, people can hide behind anonymity and say and do awful things using tools that were meant to improve the world. How do you keep your faith in humanity?

Neuberger: It’s a tremendously important question. It’s one that’s personally important to me. My great-grandparents lost their lives in Nazi death camps. And those members of my family who survived — some survived through the horrors of the camp, some managed to hide out under false identities. And I often think that the promise of digital has also made our identities very evident. Sometimes when I’m just browsing Amazon online, and it recommends a set of books, I think to myself: I wonder how I’d hide if what happened to my grandparents came for me. So as a result, I think that even as we engage with these technologies, we have to ensure that vulnerable populations are protected.

So, the president’s working with AI companies to say companies have an obligation to protect vulnerable populations online, to ensure that we’re using AI to detect where there’s bullying online, where there’s hate speech that goes against common practices that needs to be addressed; where there are AI-generated images related to children or women or other vulnerable populations, that we use AI to find them and remove them; and certainly use law enforcement and the power of law enforcement partnerships around the world to deter that as well. Freedom of speech is a part of free societies. Freedom from harm needs to be a fight we take on together.

VOA: Thank you so much for speaking to our audience.

Neuberger: Thank you.

Ukraine Businesses Pivot to New Military Technology Production

Since the start of Russia’s full-scale invasion of Ukraine, drone production in the country has surged. Ukrainian businesses have shifted from manufacturing products for peacetime to producing equipment for wartime. From Kyiv, Myroslava Gongadze explains how Ukrainian ingenuity is altering the course of the war. Camera: Eugene Shynkar.

Biden Takes ‘Bidenomics’ to Colorado, Hits ‘MAGA’ Republicans

U.S. President Joe Biden on Wednesday will tout his “Bidenomics” agenda, contrasting his economic vision with that of so-called “MAGA” Republicans, in remarks at CS Wind, the world’s largest wind tower manufacturer, in Pueblo, Colorado.

CS Wind is expanding with a new $190 million facility that it directly attributes to the passage of 2022’s Inflation Reduction Act, Biden’s signature climate and energy bill. The company said the expansion is set to be completed in 2028 and will create 850 jobs.

Pueblo is a district represented by Republican Representative Lauren Boebert, a supporter of former President Donald Trump’s Make America Great Again agenda and a harsh critic of Biden’s economic policies. Boebert voted against passing the IRA, calling it “dangerous for America.”

“I am very proud of the work that CS Winds is doing there in Pueblo and the jobs that they’re creating,” Boebert said during an interview Tuesday with local network KKTV. “But as I stated, this will cost the taxpayers overall from the Inflation Reduction Act hundreds of billions of dollars. This bill was a complete scam.”

In a statement, the White House said that Biden is “delivering on his promise to create opportunities and jobs in communities too often left behind, while self-described MAGA Republicans like Representative Lauren Boebert continue to undermine their constituents by trying to block the President’s agenda.”

His remarks highlighting Bidenomics come as Americans rate the president poorly on his handling of the economy. Only 32% of those polled approve of Biden’s handling of the economy, according to a Gallup poll released Tuesday. His approval rating remains at 37%.

With many voters saying the economy is a top concern in the 2024 election, the White House has been ramping up messaging that Biden’s economic policies have steered the country away from recession, highlighting positive economic growth, a declining rate of inflation and continued low unemployment.

U.S. inflation continues to fall and is lower than in comparable economies in Europe. However, after a two-year period of the highest inflation in decades, Americans are feeling the pain from prices of goods that are still higher than they were four years ago. They’re also finding it difficult to find affordable credit, as the Federal Reserve imposes higher interest rates to fight inflation.

US Imposes Sanctions on Cryptocurrency Mixer Sinbad Over Alleged North Korea Links

The United States on Wednesday imposed sanctions on a virtual currency mixer the Treasury Department said has processed millions of dollars worth of cryptocurrency from major heists carried out by North Korea-linked hackers.

The U.S. Treasury Department in a statement said virtual currency mixer Sinbad, hit with sanctions on Wednesday, processed millions of dollars worth of virtual currency from heists carried out by the North Korea-linked Lazarus Group, including the Axie Infinity and Horizon Bride heists of hundreds of millions of dollars.

Lazarus, which has been sanctioned by the U.S., has been accused of carrying out some of the largest virtual currency heists to date. In March 2022, for example, they allegedly stole about $620 million in virtual currency from a blockchain project linked to the online game Axie Infinity.

“Mixing services that enable criminal actors, such as the Lazarus Group, to launder stolen assets will face serious consequences,” Deputy Treasury Secretary Wally Adeyemo said in the statement on Wednesday.

“The Treasury Department and its U.S. government partners stand ready to deploy all tools at their disposal to prevent virtual currency mixers, like Sinbad, from facilitating illicit activities.”

A virtual currency mixer is a software tool that pools and scrambles cryptocurrencies from thousands of addresses.

Sinbad is believed by some experts in the industry to be a successor to the Blender mixer, which the U.S. hit with sanctions last year over accusations it was being used by North Korea.

The Treasury said Sinbad is also used by cybercriminals to obscure transactions linked to activities such as sanctions evasion, drug trafficking and the purchase of child sexual abuse materials, among other malign activities. 

Wednesday’s action freezes any U.S. assets of Sinbad and generally bars Americans from dealing with it. Those that engage in certain transactions with the mixer also risk being hit with sanctions. 

Is AI About to Steal Your Job?

Almost all U.S. jobs, from truck driver to childcare provider to software developer, include skills that can be done, or at least supplemented, by generative artificial intelligence (GenAI), according to a recent report.

GenAI is artificial intelligence that can generate high-quality content based on the input data used to train it.

“AI is likely to touch every part of every job to some degree,” says Cory Stahle, an economist with Indeed.com, which released the report.

The report finds that almost one in five jobs (19.7%) — like IT operations, mathematics and information design — faces the highest risk of being affected by AI because at least 80% of the job skills those positions require can be done reasonably well by GenAI.

But that doesn’t mean that those jobs will eventually be lost to robots.

“It’s important to recognize that, in general, these technologies don’t affect entire occupations. It actually is very rare that a robot will show up, sit in somebody’s seat to do everything that someone does at their job,” says Michael Chui of the McKinsey Global Institute (MGI), who researches the impact of technology and innovation on business, the economy and society.

Indeed.com researchers analyzed more than 55 million job postings and found that GenAI can perform 50% to almost 80% of the skills required in 45.7% of those job listings. In 34.6% of jobs listed, GenAI can handle less than 50% of the skills.

Jobs that require manual skills or a personal touch, such as nursing and veterinary care, are the least likely to be hard hit by AI, the report says.

In the past, technological advances have mostly affected manual labor. However, GenAI is expected to have the most effect on so-called knowledge workers, generally defined as people who create knowledge or think for a living.

But, for now, AI does not appear poised to steal anyone’s job.

“There are very few jobs that AI can do completely. Even in jobs where AI can do many of the skills, there are still aspects of those jobs that AI cannot do,” Stahle says.

Rather than replace workers, researchers expect GenAI to enhance the work people already do, making them more efficient.

“This is something that, in many ways, we believe is going to unlock human potential and productivity for many workers across many different sectors of the economy,” Stahle says.

“There are a number of things that can happen,” Chui adds. “One is, we simply do more of something we were already doing, and so imagine if you’re a university professor or a teacher, and the grading can be done by machine rather than you. You can take those hours and, instead of grading, you can actually start tutoring your students, spending more time with your students, improving their performance, helping them learn.”

American workers need to begin using the new technology if they hope to remain competitive, according to Chui.

“Workers who are best able to use these technologies will be the most competitive workers in the workforce,” he says. “It was true before, but it’s more true than ever, that we’re all going to have to be lifetime learners.”

A survey developed by Chui finds that almost 80% of workers have experimented with AI tools.

“One of the great powers of these generative AI tools, so far, is they’ve been designed in such a way to make it easy for really anybody to use these types of tools,” Stahle says. “I really believe that people should be looking to embrace these tools and find ways to incorporate them into the work that they’re already interested in doing.”

Ultimately, could one of the unexpected benefits of AI be more efficient employees who work less?

“In general, Americans work a lot,” Chui says. “Maybe we don’t have to work so long. Maybe we have a four-day work week … and so you could give that time back to the worker.”

Shoppers Click ‘Buy’ As Retailers Slash Prices Ahead of Cyber Monday

Holiday shoppers in the U.S. are seeking out the best deals and strategically nabbing the deepest discounts ahead of Cyber Monday, according to data from retailer websites aggregated by third parties.

Cyber Monday, as the first Monday after the Thanksgiving holiday has become known as merchants step up online promotions, is set to be the biggest online shopping day of the year in the United States.

Strong online traffic on Black Friday demonstrated a notable pattern of shoppers putting time and effort into selecting the lowest-cost, best-value merchandise, said Rob Garf, vice president and general manager for retail at Salesforce, which tracks data flowing through its Commerce Cloud e-commerce service.

Despite an earlier start to retailers’ holiday promotions this year, there weren’t a lot of great deals initially, Garf said. Yet “consumers were patient, diligent, and they played a game of discount chicken. And they won once again.”

On Black Friday, the day after Thanksgiving, retailers “stepped up the discounting” to roughly 30% on average in the U.S., he said. And “consumers clicked the buy button,” spending $16.4 billion online in the U.S. and $70.9 billion globally that day, according to Salesforce. 

“We saw a big spike,” Garf said, adding that the strong Black Friday online outlay would “pull up” the overall tally for the entire Cyber Week, which started on Tuesday and ends on Monday.

On Cyber Monday, Salesforce expects to see discounts averaging 30% again. The risk for consumers, however, is that products may not be available if they wait, he said.

Salesforce says it derives its benchmarks for online traffic and spending from data flowing through its Commerce Cloud e-commerce service, which it says provides a window into the behavior of 1.5 billion people in 60 countries traversing thousands of e-commerce sites.

Other firms use different measurements to gauge online shopping patterns.

Rival Adobe Analytics forecasts that shoppers will spend a record $12 billion Monday, 5.4% more than last year, representing what it says will be the largest-ever e-commerce shopping day in the U.S. Retailers are set to dangle average price cuts of 30% on electronics, and 19% on furniture, said Vivek Pandya, lead analyst at Adobe Digital Insights. 

Last-minute Cyber Monday shoppers could spend $4 billion between 6 p.m. and 11 p.m. EST alone “because consumers are going to be concerned about discounts weakening after that,” Pandya said.

Adobe provides merchants with Experience Cloud, a service which powers their e-commerce platforms, giving Adobe a window into aggregate transaction data at 85% of the top 100 internet retailers.

Overall, “consumers are being very strategic, wanting to maximize their shopping when they think they’ll get the best discounts,” Pandya said. “The online retail sector is one of the few where the consumer is a bit more in the driver’s seat,” he said, particularly with toys and seasonal holiday merchandise.

“There are a lot of online merchants vying for their dollar and they can easily compare prices.”

Mastercard, which measures retail sales across all forms of payment, said e-commerce sales rose 8.5% on Black Friday, while in-store sales rose 1%.

“Digital grew dramatically during the pandemic and then it had a reversion to the mean, when people went back to stores,” said Steve Sadove, senior adviser for Mastercard and former CEO of Saks Inc. “Now you are seeing an acceleration in digital, once again. It’s becoming more important.”

Russian Consumers Feel Themselves in a Tight Spot as High Inflation Persists

The shelves at Moscow supermarkets are full of fruit and vegetables, cheese and meat. But many of the shoppers look at the selection with dismay as inflation makes their wallets feel empty.

Russia’s Central Bank has raised its key lending rate four times this year to try to get inflation under control and stabilize the ruble’s exchange rate as the economy weathers the effects of Russia’s military operation in Ukraine and the Western sanctions imposed as a consequence.

The last time it raised the rate — to 15%, doubled that from the beginning of the year — the bank said it was concerned about prices that were increasing at an annualized pace of about 12%. The bank now forecasts inflation for the full year, as well as next year, to be about 7.5%.

Although that rate is high, it may be an understatement.

“If we talk in percentage terms, then, probably, (prices) increased by 25%. This is meat, staple products — dairy produce, fruits, vegetables, sausages. My husband can’t live without sausage! Sometimes I’m just amazed at price spikes,” said Roxana Gheltkova, a shopper in a Moscow supermarket.

Asked if her income as a pensioner was enough to keep food on the table, customer Lilya Tsarkova said: “No, of course not. I get help from my children.”

Without their assistance, “I don’t know how to pay rent and food,” the 70-year-old said.

Figures from the state statistical service Rosstat released on Nov. 1 show a huge spike in prices for some foods compared with 2022 — 74% for cabbage, 72% for oranges and 47% for cucumbers.

The Russian parliament has approved a 2024-26 budget that earmarks a record amount for defense spending. Maxim Blant, a Russian economy analyst based in Latvia, sees that as an indication that prices will continue to rise sharply.

“It is simply impossible to solve the issue of inflation in conditions … when the military-industrial complex receives unlimited funding, when everything they ask for is given to them, when the share of this military-industrial complex in the economy grows at a very rapid pace,” he told The Associated Press.

The central bank’s rate hikes have slightly cooled the ruble’s exchange rate slide — the rate is now about 88 to the U.S. dollar from over 100 earlier. But that’s still far higher than in the summer of 2022, when it was about 60 to the dollar.

That keeps the cost of imports high, even as import possibilities shrink due to Western sanctions.

US Retailers Offer Big Deals for Black Friday, but Will Shoppers Spend?

Expect big discounts and other enticements to lure shoppers to stores for Black Friday. But retailers worry those may not be enough.

Consumers are coming under pressure as their savings dwindle and their credit card debt grows. And although they have gotten some relief from easing inflation, many goods and services like meat and rent are still far higher than they were just three years ago.

Barbara Lindquist, 85, from Hawthorne Woods, Illinois, said she and her husband plan to spend about $1,000 for holiday gifts for her three adult children, 13 grandchildren and three great-grandchildren. That’s about the same as last year.

But Lindquist, who continues to work as a pre-school teacher at a local church, said she’ll be more focused on deals given still high prices on meat and other staples. And she plans to buy more gift cards, which she believes will help her stick to her budget.

“I go for value,” said Lindquist, who just picked up discounted sheets and towels at Kohl’s for friends who will be visiting from Panama during the holidays.

Many retailers had already ordered fewer goods for this holiday season and have pushed holiday sales earlier in October than last year to help shoppers spread out their spending. An early shopping push appears to be a trend that only got more pronounced during the pandemic when clogs in the supply network in 2021 made people buy early for fear of not getting what they wanted.

But retailers said that many shoppers will be focusing more on deals and will likely wait until the last minute. Best Buy said it’s pushing more items at opening price points, while Kohl’s has simplified its deals, promoting items under a certain price point like $25 at its stores.

Target said shoppers are waiting longer to buy items. For example, instead of buying sweatshirts or denim back in August or September, they held out until the weather turned cold.

“It’s clear that consumers have been remarkably resilient,” Target’s CEO Brian Cornell told analysts last week. “Yet in our research, things like uncertainty, caution and managing a budget are top of mind.”

The National Retail Federation, the nation’s largest retail trade group, expects shoppers will spend more this year than last year, but their pace will slow given all the economic uncertainty.

The group has forecast that U.S. holiday sales will rise 3% to 4% for November through December, compared with a 5.4% growth of a year ago. The pace is consistent with the average annual holiday increase of 3.6% from 2010 to pre-pandemic 2019. Americans ramped up spending during the pandemic, with more money in their pockets from federal relief checks and nowhere to go during lockdowns. For the holiday 2021 season, sales for the two-month period surged 12.7%.

Online discounts should be better than a year ago, particularly for toys, electronics and clothing, according to Adobe Analytics, which tracks online spending. It predicts toys will be discounted on average by 35%, compared with 22% a year ago, while electronics should see 30% cuts, compared with last year’s 27%. In clothing, shoppers will see an average discount of 25%, compared with 19% last year, Adobe said.

Analysts consider the five-day Black Friday weekend — which includes the Monday after the holiday known as Cyber Monday — a key barometer of shoppers’ willingness to spend. And Black Friday is expected to be once again the busiest shopping day of the year, according to Sensormatic Solutions, a firm that tracks store traffic. On average, the top 10 busiest shopping days in the U.S are expected to once again account for roughly 40% of all holiday retail traffic, Sensormatic said.

Marshal Cohen, chief retail adviser at Circana, a market research firm, said he thinks that shoppers will just stick to a list and not buy on impulse. He also believes they will take their time buying throughout the season.

“There’s no sense of urgency,” Cohen said. “The consumers are saying, ‘I will shop when it’s convenient for me.'”

Asian Shares Mostly Lower, with Markets in Japan, US Closed

Shares were mostly lower in Asia on Thursday after a modest advance on Wall Street that kept the market on track for a fourth straight weekly gain.

Markets in Japan and the United States are closed Thursday for holidays.

Oil prices fell about $1 a barrel after OPEC postponed until next week a meeting to discuss production cuts. The oil cartel has been maintaining a tight market for crude oil with production cuts. It is expected to extend those cuts after oil prices have fallen after a spike in the summer to almost $100 a barrel.

Hong Kong’s Hang Seng lost 0.4% to 17,668.99 and the Shanghai Composite index edged 0.2% higher, to 3,048.82. Markets in Greater China have been swaying in reaction to moves by Chinese regulators to prop up the ailing property market.

Shares in troubled developer Country Garden jumped 13% amid reports that it is included on a list of real estate companies eligible for financing support. Sino-Ocean Group Holding’s shares soared 18%.

Australia’s S&P/ASX 200 shed 0.6% to 7,030.70. In South Korea, the Kospi slipped 2 points lower, to 2,509.73.

Bangkok’s SET lost 0.4% and the Taiex in Taiwan was down 0.2%. The Sensex in Mumbai opened up 0.1%.

On Wednesday, the S&P 500 rose 0.4% to 4,556.62. The Dow rose 0.5% to 35,273.03 and the Nasdaq gained 0.5% to 14,265.86.

Trading was muted ahead of the Thanksgiving holiday on Thursday. U.S. markets will be open for half a day on Friday.

Technology and communications services stocks accounted for a big share of the gains for the S&P 500. Microsoft rose 1.3% and Google parent Alphabet added 1.1%.

Broadcom slipped 0.9% after announcing that it expects to complete its $69 billion deal to acquire VMWare on Wednesday after clearing all regulatory hurdles.

A 0.9% drop in oil prices weighed on energy companies. Energy giant Exxon Mobil fell 0.4% and oilfield services company Halliburton dropped 0.8%.

But it lifted airlines and other companies that stand to benefit from lower fuel costs. United Airlines rose 0.9% and American Airlines gained 1.5%. Cruise line operator Carnival rose 1.9%.

Nvidia fell 2.5%, despite handily beating analysts’ profit and revenue forecasts. Export restrictions to China are pressuring the company, though its stock has more than tripled this year amid booming demand for its chips in artificial intelligence applications.

Earnings reports continue to drift in. Department store operator Nordstrom fell 4.6% after trimming its profit forecast for the year. Clothing retailer Guess slumped 12.3% after cutting its financial forecast.

Tractor maker Deere, a bellwether for the agricultural industry, fell 3.1% after giving Wall Street a discouraging financial forecast and industry outlook.

Treasury yields were relatively steady. The yield on the 10-year Treasury rose to 4.41% from 4.40% late Tuesday. The yield on the 2-year Treasury slipped to 4.88% from 4.89% late Tuesday.

A consumer sentiment survey by the University of Michigan showed that confidence remains strong. Wall Street has been closely watching consumer spending and confidence reports for more clues on the economy’s path ahead.

Forecasts for a potential recession have been pushed further out into 2024 while also being softened. The rate of inflation continues to ease, consumer spending remains solid and the economy is generally humming along. That has encouraged hopes, and bets, that the Federal Reserve is done raising interest rates and could soon consider cutting rates.

Fed officials, though, have said the outlook for the economy remains uncertain and they’ll make coming decisions on rates based on incoming reports. The Fed will get another big update next week when the government releases its October report for a key inflation measure tracked by the central bank.

In other trading Thursday, U.S. benchmark crude oil lost 91 cents to $76.19 per barrel in electronic trading on the New York Mercantile Exchange. It dropped 67 cents to $77.10 per barrel on Wednesday.

Brent crude, the international pricing standard, gave up $1.06 to $80.90 per barrel.

The U.S. dollar slipped to 149.12 Japanese yen from 149.56 yen. The euro rose to $1.0905 from $1.0889.

US Envoy Focuses on Cyberscams During Cambodia Visit 

Cindy Dyer, the U.S. ambassador-at-large for monitoring and combating trafficking, is planning to push Cambodia’s new government to ramp up its efforts to crack down on cyberscam operations that trap many trafficking victims in slavelike conditions.

A recently completed visit to Phnom Penh by Dyer “will serve as an opportunity for information sharing and coordination on anti-trafficking efforts,” the State Department said last week in a release.

Dyer met with a range of officials “with the objective of building a relationship with the new government for future coordination and advocating for progress in the most critical areas, including increased investigations and prosecutions of cyberscam operations,” said the November 15 release.

Cambodia’s role as host of cybercriminals has been in an international spotlight. The U.N. High Commissioner for Human Rights (UNHCHR) released a report this summer estimating that the industry has victimized 100,000 people in Cambodia.

Lured by promise of jobs

Operators of these scamming networks recruit unwitting workers from across Asia, often with the promise of well-paying tech jobs, and then force them to attempt to scam victims online while living in slavelike conditions, according to the report.

Countries including Indonesia, Taiwan and China have urged countries like Cambodia and Laos to crack down on the industry, while warning their own citizens of the dangers in traveling to these countries, according to the UNHCHR report.

The U.S. State Department’s annual report on global human trafficking, released in June, placed Cambodia in Tier 3, meaning the government has made insufficient efforts to address human trafficking and does not meet the minimum standards.

During her two-day visit to Cambodia that began November 15, Dyer met with officials from the ministries of justice, labor and social affairs, as well as representatives of the National Police and the National Committee for Counter Trafficking (NCCT) within the Ministry of Interior, according to an email from the U.S. Embassy in Phnom Penh. Dyer also held discussions with civil society groups working on combating human trafficking.

The discussions focused “on Cambodia’s efforts to protect trafficking victims, including providing protection assistance services for victims of trafficking and vulnerable migrants, capacity building for service providers and government officials to improve victim identification and referral, and addressing emerging trends in forced criminality,” the State Department release said.

More training urged

Am Sam Ath, operations director at the Cambodian rights group Licadho, told VOA Khmer that Dyer’s visit highlighted the need for Cambodia to tackle human trafficking and online scams.

“We see that the United States … ranks Cambodia third in the blacklist of human trafficking. It also has a lot of impact on our country, and if Cambodia does not make an effort further in the prevention of human trafficking or online scams, the ranking cannot be improved,” he said by telephone from the group’s Phnom Penh office.

He called on the Cambodian government to strengthen the capacity of officials and authorities to crack down on online crime.

“This crime problem is technologically modern, so the authorities involved in it have to get more training to keep up with the situation, as well as the timing of the crime,” Am Sam Ath added.

National Police spokesperson Chhay Kim Khoeun and Justice Ministry spokesperson Chin Malin declined to comment on Dyer’s visit, referring questions to Chou Bun Eng, permanent deputy chairman of the National Committee for Counter Trafficking. VOA Khmer called Chou Bun Eng, but she did not respond to a request for comment.

U.S. Embassy spokesperson Katherine Diop told VOA Khmer that Dyer’s visit to Cambodia was part of a U.S. effort across the world to encourage governments to take responsibility for preventing human trafficking and protecting victims.

“The United States stands with the Cambodian people to identify, support and seek justice for human trafficking victims,” she wrote in an email.

The UNHCHR report released in late August said the online scams were occurring in five countries in Southeast Asia: Cambodia, Thailand, Laos, Myanmar and the Philippines.

“People who have been trafficked into online forced criminality face threats to their right to life, liberty and security of the person,” said the U.N. report. “They are subject to torture and cruel, inhuman and degrading treatment or punishment, arbitrary detention, sexual violence, forced labor and other forms of labor exploitation as well as a range of other human rights violations and abuses.”

Cambodia first acknowledged the issue last year when Interior Minister Sar Kheng said in August that officials were being deployed across the country to check hotels, casinos and other establishments for potential trafficking victims.

The government has since announced sporadic operations to free victims and arrest traffickers. However, experts recently told VOA Khmer that these efforts have not noticeably curbed the illegal operations or caught ringleaders of the trafficking networks.

Nigeria Hopeful of Economic Boom Following Investment Deals

Nigerian President Bola Tinubu is welcoming new trade agreements with Germany, including a deal that calls for the West African nation to export liquid natural gas.

The signing Tuesday of two memoranda of understanding between Nigerian companies and their German counterparts was the latest in a flurry of investment deals clinched by the Tinubu-led administration in recent months.

The signings come less than two weeks after Nigeria and Saudi Arabia agreed to a deal to revive the country’s nonfunctional refineries.

Tinubu is seeking to make the country attractive to investors in a bid to revive an economy bedeviled by slow growth, rising inflation and huge debt.

Under one deal, Riverside LNG of Nigeria will supply 850,000 tons of liquefied natural gas to Germany each year, working with German firm Johannes Schuetze Energy Import AG. The first delivery of gas is expected in 2026, and the president’s office said gas exports may increase in future years.

Authorities say the deal will make use of natural gas that otherwise would have been flared into the atmosphere. Nigeria has Africa’s largest gas reserves — over 5 trillion cubic meters — but due to poor processing infrastructure, the country burns off much of it every day.

Nigeria also secured a $500 million renewable energy deal with another German company. The deal calls for Germany’s DWS Group to supply funding for renewable energy projects in Nigeria, especially in rural areas.

The president’s spokesperson, Ajuri Ngelale, did not take calls for comment, but he spoke to Lagos-based Channels television about the president’s drive for foreign investments.

“He is personally conducting an open-door policy to investors from around the world, including here in Germany, to ensure that they have direct access to all of the regulators and government officials that will further enhance the environment in which foreign direct investments will be coming into the country,” Ngelale said.

This week Tinubu attended the G20 Compact with Africa Summit in Berlin that experts say is an avenue for African countries to expand their economies through investments and trade.

Emeka Okengwu, an economic analyst, said the investments are important.

“There’s no way $500 million can be wished away. It’s a big deal and should be celebrated,” Okengwu said. “Of course, it’s going to be creating jobs. The base of our productivity is energy. If we have energy, more industries will work, people can produce more, people can get jobs.”

He cautioned, however, “It is one thing to sign paper, and it is another thing to get the deal off the ground.”

Nigerian officials are also seeking investments in the electricity and rail transport sectors.

Altman Back as OpenAI CEO Days After Being Fired

The ousted leader of ChatGPT-maker OpenAI is returning to the company that fired him late last week, culminating a days-long power struggle that shocked the tech industry and brought attention to the conflicts around how to safely build artificial intelligence.

San Francisco-based OpenAI said in a statement late Tuesday, “We have reached an agreement in principle for Sam Altman to return to OpenAI as CEO with a new initial board.”

The board, which replaces the one that fired Altman on Friday, will be led by former Salesforce co-CEO Bret Taylor, who also chaired Twitter’s board before its takeover by Elon Musk last year. The other members will be former U.S. Treasury Secretary Larry Summers and Quora CEO Adam D’Angelo.

OpenAI’s previous board of directors, which included D’Angelo, had refused to give specific reasons for why it fired Altman, leading to a weekend of internal conflict at the company and growing outside pressure from the startup’s investors.

The chaos also accentuated the differences between Altman — who’s become the face of generative AI’s rapid commercialization since ChatGPT’s arrival a year ago — and members of the company’s board who have expressed deep reservations about the safety risks posed by AI as it becomes more advanced.

Microsoft, which has invested billions of dollars in OpenAI and has rights to its current technology, quickly moved to hire Altman on Monday, as well as another co-founder and former president, Greg Brockman, who had quit in protest after Altman’s removal.

That emboldened a threatened exodus of nearly all of the startup’s 770 employees who signed a letter calling for the board’s resignation and Altman’s return.

One of the four board members who participated in Altman’s ouster, OpenAI co-founder and chief scientist Ilya Sutskever, later expressed regret and joined the call for the board’s resignation.

Microsoft in recent days had pledged to welcome all employees who wanted to follow Altman and Brockman to a new AI research unit at the software giant. Microsoft CEO Satya Nadella also made clear in a series of interviews Monday that he was still open to the possibility of Altman returning to OpenAI, so long as the startup’s governance problems are solved.

“We are encouraged by the changes to the OpenAI board,” Nadella posted on X late Tuesday. “We believe this is a first essential step on a path to more stable, well-informed, and effective governance.”

In his own post, Altman said that “with the new board and (with) Satya’s support, I’m looking forward to returning to OpenAI, and building on our strong partnership with (Microsoft).”

Co-founded by Altman as a nonprofit with a mission to safely build so-called artificial general intelligence that outperforms humans and benefits humanity, OpenAI later became a for-profit business but one still run by its nonprofit board of directors. It’s not clear yet if the board’s structure will change with its newly appointed members.

“We are collaborating to figure out the details,” OpenAI posted on X. “Thank you so much for your patience through this.”

Nadella said Brockman, who was OpenAI’s board chairman until Altman’s firing, will also have a key role to play in ensuring the group “continues to thrive and build on its mission.”

Hours earlier, Brockman returned to social media as if it were business as usual, touting a feature called ChatGPT Voice that was rolling out to users.

“Give it a try — totally changes the ChatGPT experience,” Brockman wrote, flagging a post from OpenAI’s main X account that featured a demonstration of the technology and playfully winking at recent turmoil.

“It’s been a long night for the team and we’re hungry. How many 16-inch pizzas should I order for 778 people?” the person asks, using the number of people who work at OpenAI. ChatGPT’s synthetic voice responded by recommending around 195 pizzas, ensuring everyone gets three slices.

As for OpenAI’s short-lived interim CEO Emmett Shear, the second interim CEO in the days since Altman’s ouster, he posted on X that he was “deeply pleased by this result, after ~72 very intense hours of work.”

“Coming into OpenAI, I wasn’t sure what the right path would be,” wrote Shear, the former head of Twitch. “This was the pathway that maximized safety alongside doing right by all stakeholders involved. I’m glad to have been a part of the solution.”

Newly Assertive Central Asia Rejects ‘Russia’s Backyard’ Label

Kazakhstan President Kassym-Jomart Tokayev bewildered Vladimir Putin and his entourage when, during a November 9 briefing in the Kazakh capital, he addressed the visiting Russian president in his native tongue.

While Tokayev spoke in Kazakh for less than 30 seconds, the gesture made a point: Kazakhstan is not Russia. Moscow is a strategic ally and neighbor with a shared past, but Kazakhstan is a sovereign nation.

“It takes courage,” Azamat Junisbai, professor at Pitzer College, remarked in a posting on X. “That President Tokayev made a point of delivering even a small part of his message in Qazaq is meaningful and appreciated by those who know the context.”

Junisbai’s posting, using the native rather than the more familiar Russian spelling for the language, itself reflected the former Soviet republic’s determination to establish its own identity apart from Moscow.

Changes in perception slow in coming

Tokayev and other Central Asian leaders, especially Uzbekistan’s Shavkat Mirziyoyev, have been traveling the world, signing major investment deals and hosting international summits at home, promoting their development agendas and visions for the region.

Yet many in the West have been slow to acknowledge the trend, including major news publications such as Reuters, Deutsche Welle, The Wall Street Journal and Time, all of which have recently referred to Central Asia as “Russia’s backyard.”

Bloomberg, for example, covered the French president’s visit to Central Asia this month with an attention-grabbing “Macron Lands in Putin’s Backyard Seeking New Friends and Uranium.”

Central Asian and some Western researchers take offense at the phrase, which they increasingly see as evidence of a colonial and condescending way of understanding a region that has its own history, culture and trajectory.

“Bloomberg reducing Kazakhstan/Central Asia to ‘Putin’s backyard’ is just a new level of ignorant, insulting, and unethical journalism,” wrote Akbota Karibayeva, a doctoral student from Kazakhstan at George Washington University, on X.

Asel Doolotkeldieva with the OSCE Academy in Bishkek, Kyrgyzstan, also reacted on X: “Bloomberg didn’t even bother to write the country’s name. Kazakhstan is just a ‘backyard.’ So tell me, how this Western imperial discourse is different from the Russian imperial discourse on Central Asia? How better you are?”

Eric Rudenshiold said in a recent Washington roundtable, “Central Asia is not a flyover zone. It is a destination.” The former National Security Council director for Central Asia under the Biden and Trump administrations is now a senior fellow at the Caspian Policy Center in Washington.

Central Asia wants “strong commitment”

Speaking remotely from Tashkent on the same panel discussion, Uzbek scholar Akram Umarov argued that countries seeking to boost relations with Central Asia need to appreciate that emerging identity.

“Central Asia is focused on its own development,” he said. “It wants a strong commitment and longstanding interest from its partners, including the United States.”

Part of that identity is forged by Central Asia’s location in a “tough neighborhood” — landlocked and surrounded by Russia, China, Iran and Afghanistan — while standing at the crossroads between eastern and western Asia.

“We cannot change our geography, which always matters. You deal with what you have, so we need to be pragmatic,” Umarov said.

His Kazakh colleague Iskander Akylbayev added that Central Asia is more than simply an area connecting larger, more powerful states, but one that aims to transform itself into a commercial hub.

Kazakhstan, one of the world’s top 12 oil producers, “does not just want an energy-oriented cooperation. It wants to become a knowledge-based economy,” Akylbayev said, stressing the importance of regional connectivity, which could lure more investment to Central Asia and boost its image.

But the reality is more complicated, according to Uzbek and Kazakh officials, who acknowledge that the region’s leaders are deeply affected by a fear of Russian aggression and a lingering distrust of the U.S. and the EU. Central Asian governments find themselves hedging, seeking an elusive balance.

Speaking on background with VOA about Central Asia’s predicament, a Biden administration official echoed this concern: “How do you move your goods and push for your interests when you are surrounded by Russia, China, Iran and Afghanistan?”

Openings for the U.S.

Rudenshiold sees the five Central Asian states “working together and breaking free from their former isolation to connect to a more global future — a process that has created significant new openings for the United States.”

China, the Gulf states and the EU are promising to invest billions that Central Asians hope will free them from “Russia’s stranglehold.” America’s pledge pales by comparison, Rudenshiold noted in his recent article for the Caspian Policy Center.

Kazakhstan is eager to develop a “Middle Corridor” through which East Asian goods can be transported to the West via its territory, the Caspian Sea and the Caucasus. Double-landlocked Uzbekistan is desperate to access seaports. Turkmenistan wants a trans-Caspian gas pipeline to facilitate the sale of its main resource.

“Washington is missing out on a critical opportunity to assist the region,” Rudenshiold said. “U.S. diplomats and development experts are sending the right messages to Central Asian capitals, but they don’t have sufficient resources to follow up.”

But how to convince the U.S. Congress that the region is worth investing in? It seems to some like a mission impossible, especially when many lawmakers — at least partly informed by reports describing the region as a backyard — still view Central Asian republics as vassals of Russia and China.

U.S. lawmakers could start by scrapping the Jackson-Vanik Amendment, Rudenshiold suggested. The law, adopted nearly 50 years ago originally to restrict trade with the Soviet Union, still blocks some countries from achieving most-favored nation trading status with the United States.

While the U.S. cannot replace Central Asia’s neighbors as trade partners, it can enable Central Asians “to do business on their own terms, not dictated by Moscow and Beijing,” Rudenshiold said.

Rights advocates counter that repealing Jackson-Vanik and awarding more trade benefits would be unwarranted before the region shows more progress on establishing the rule of law. They note that several Central Asian states still pursue authoritarian practices, jail journalists, restrict nongovernmental organizations and religious freedom, and maintain harsh anti-LGBTQ legislation.

Rising regionalism

According to Edward Lemon, president of the Oxus Society for Central Asian Affairs and professor at Texas A&M University’s Bush School of Government and Public Service, “the most significant change in foreign relations in Central Asia over the past decade has been rising regionalism.”

“Visa regimes have been relaxed, borders reopened, trade surged and intraregional migration has increased,” Lemon told VOA.

However, he says, Central Asian leaders still do not act as a cohesive group. “Doing so would certainly increase their bargaining power.”

Lemon added that while striving to overcome the label of “Russia’s backyard,” “all have maintained strong ties with Moscow, which have not substantially changed since the full-scale invasion of Ukraine.”

Largest Crypto Exchange Fined $4 Billion; CEO Pleads Guilty to Allowing Money Laundering

The U.S. government dealt a massive blow to Binance, the world’s largest cryptocurrency exchange, which agreed to pay a roughly $4 billion settlement Tuesday as its founder and CEO Changpeng Zhao pleaded guilty to a felony related to his failure to prevent money laundering on the platform. 

Zhao stepped down as the company’s chief executive, and Binance admitted to violations of the Bank Secrecy Act and apparent violations of sanctions programs, including its failure to implement reporting programs for suspicious transactions. 

“Using new technology to break the law does not make you a disruptor, it makes you a criminal,” said U.S. Attorney General Merrick Garland, who called the settlement one of the largest corporate penalties in the nation’s history. 

As part of the settlement agreement, the U.S. Treasury said Binance will be subject to five years of monitoring and “significant compliance undertakings, including to ensure Binance’s complete exit from the United States.” Binance is a Cayman Islands limited liability company. 

The cryptocurrency industry has been marred by scandals and market meltdowns. 

Rival of FTX founder

Zhao was perhaps best known as the chief rival to Sam Bankman-Fried, the 31-year-old founder of FTX, which was the second-largest crypto exchange before it collapsed last November. Bankman-Fried was convicted earlier this month of fraud for stealing at least $10 billion from customers and investors. 

Zhao, meanwhile, pleaded guilty in a federal court in Seattle on Tuesday to one count of failure to maintain an effective anti-money-laundering program. 

Magistrate Judge Brian A. Tsuchida questioned Zhao to make sure he understood the plea agreement, saying at one point: “You knew you didn’t have controls in place.” 

“Yes, your honor,” he replied. 

Binance wrote in a statement that it made “misguided decisions” as it quickly grew to become the world’s biggest crypto exchange, and said the settlement acknowledges its “responsibility for historical, criminal compliance violations.” 

U.S. Treasury Secretary Janet Yellen said Binance processed transitions by illicit actors, “supporting activities from child sexual abuse to illegal narcotics, to terrorism, across more than 100,000 transactions.” 

Binance did not file a single suspicious activity report on those transactions, Yellen said, and the company allowed more than 1.5 million virtual currency trades that violated U.S. sanctions, including ones involving Hamas’ al-Qassam Brigades, al-Qaida and other criminals. 

The judge set Zhao’s sentencing for February 23, however it’s likely to be delayed. He faces a possible guideline sentence range of up to 18 months. 

One of his attorneys, Mark Bartlett, noted that Zhao had been aware of the investigation since December 2020, and surrendered willingly even though the United Arab Emirates — where Zhao lives — has no extradition treaty with the U.S. 

“He decided to come here and face the consequences,” Bartlett said. “He’s sitting here. He pled guilty.” 

Zhao, who is married and has young children in the UAE, promised he would return to the U.S. for sentencing if allowed to stay there in the meantime. 

“I want to take responsibility and close this chapter in my life,” Zhao said. “I want to come back. Otherwise I wouldn’t be here today.” 

Company sent investor assets to third party

Zhao previously faced allegations of diverting customer funds, concealing the fact that the company was commingling billions of dollars in investor assets and sending them to a third party that Zhao also owned. 

Over the summer, Binance was accused of operating as an unregistered securities exchange and violating a slew of U.S. securities laws in a lawsuit from regulators. That case was similar to practices uncovered after the collapse of FTX. 

Zhao and Bankman-Fried were originally friendly competitors in the industry, with Binance investing in FTX when Bankman-Fried launched the exchange in 2019. However, the relationship between the two deteriorated, culminating in Zhao announcing he was selling all of his cryptocurrency investments in FTX in early November 2022. FTX filed for bankruptcy a week later. 

At this trial and in later public statements, Bankman-Fried tried cast blame on Binance and Zhao for allegedly orchestrating a run on the bank at FTX. 

A jury found Bankman-Fried guilty of wire fraud and several other charges. He is expected to be sentenced in March, where he could face decades in prison. 

Argentine Markets React With Optimism to Milei Election

Argentina’s stock market reacted with optimism Tuesday to the resounding election win by libertarian Javier Milei, despite the country being gripped by uncertainty over what changes the self-described “anarcho-capitalist” will bring.

Milei, a 53-year-old economist who has vowed to scrap multiple government departments and sometimes campaigned by waving a chainsaw from the stage, trounced Argentina’s long-dominant Peronist coalition as voters punished the government for decades of economic decline.

Latin America’s third-biggest economy is creaking under annual inflation of 143%.

Monday, the day after the election, was a public holiday in Argentina, delaying the market reaction. But immediately Tuesday, the stock market opened 20%, before easing off to gains of about 14%.

Argentina’s peso is strictly controlled, and the informal “blue dollar” exchange rate — seen as a barometer of panic in the country — reacted with moderation, rising slightly to 1,050 pesos to the dollar.

Milei has vowed to ditch the peso for the US dollar and shut down the central bank — which he accused of rampant money printing to finance government overspending — in a bid to halt inflation.

During his campaign he said he would slash state spending and ditch about 10 government ministries, among other controversial proposals.

However, he later toned down some of his rhetoric, leaving great uncertainty over his actual plans.

In his first interviews on Monday after the election, Milei warned it would take up to two years to tame inflation and laid out his plans to reform the state.

Milei said, “Everything that can be in the hands of the private sector is going to be in the hands of the private sector,” including the state oil company YPF and state media.

The rise on Argentina’s stock market was led by state oil company YPF, whose shares rose 34% after Milei’s remarks.

On Monday, YPF shares listed on Wall Street were up 40% at closing.

Milei on Monday held his first meeting with outgoing President Alberto Fernandez to coordinate the transition ahead of his inauguration on December 10.

Iran Lawmakers Pass Bill Raising Retirement Age for Men

Iranian lawmakers have approved legislation raising the retirement age for men to 62 and increasing the years of employment required to qualify for a full pension, state media reported.

The bill, which requires approval by the Guardian Council, a conservative-dominated vetting body, aims “to reduce pension fund shortfalls,” according to the official IRNA news agency.

In Sunday’s vote in the 290-seat parliament, 127 lawmakers voted in favor, 78 against and eight abstained, with the remainder absent.

The speaker of parliament, Mohammad Baqer Qalibaf, said on Monday that male employees would have to work 35 years, instead of 30, before they can retire with a full pension, according to IRNA.

He said the retirement age for men would be raised from 60 to 62, but for women it would remain at 55.

Labor Minister Solat Mortazavi said the move was necessary to ensure that pension funds could continue to meet their obligations to beneficiaries.

In recent months, several officials have spoken out about severe shortfalls in pension funds, with then Labor Ministry official Sajjad Padam saying in May that Iran “might be forced to sell” territory to pay pensioners.

Padam was sacked shortly after his controversial remark.

Iran has been reeling from a crippling economic crisis marked by inflation of around 50% and a sharp depreciation of the rial against the dollar.

The crisis has been aggravated by U.S. sanctions reimposed in 2018 following Washington’s withdrawal from a landmark nuclear deal between Tehran and major powers.

Kenya Asks for a Billion-Dollar Loan from China

Kenya is struggling to repay a massive debt owed to China for the construction of the Standard Gauge Railroad that links the Kenyan cities of Mombasa and the capital, Nairobi. But President William Ruto is asking for an additional billion-dollar loan from China to complete some other stalled development projects in the country. Kennedy Wandera has more from Nairobi. Camera: Jimmy Makhulo

Solar Panels Over Canals in Gila River Indian Community Will Help Save Water

In a move that may soon be replicated elsewhere, the Gila River Indian Community recently signed an agreement with the U.S. Army Corps of Engineers to put solar panels over a stretch of irrigation canal on its land south of Phoenix.

It will be the first project of its kind in the United States to break ground, according to the tribe’s press release.

“This was a historic moment here for the community but also for the region and across Indian Country,” said Gila River Indian Community Governor Stephen Roe Lewis in a video published on X, formerly known as Twitter.

The first phase, set to be completed in 2025, will cover 1,000 feet of canal and generate one megawatt of electricity that the tribe will use to irrigate crops, including feed for livestock, cotton and grains.

The idea is simple: install solar panels over canals in sunny, water-scarce regions where they reduce evaporation and make renewable electricity.

“We’re proud to be leaders in water conservation, and this project is going to do just that,” Lewis said, noting the significance of a Native, sovereign, tribal nation leading on the technology.

A study by the University of California, Merced estimated that 63 billion gallons of water could be saved annually by covering California’s 4,000 miles of canals. More than 100 climate advocacy groups are advocating for just that.

Researchers believe that much of the installed solar canopies would additionally generate a significant amount of electricity.

UC Merced wants to hone its initial estimate and should soon have the chance. Not far away in California’s Central Valley, the Turlock Irrigation District and partner Solar AquaGrid plan to construct 1.6 miles (2.6 kilometers) of solar canopies over its canals beginning this spring and researchers will study the benefits.

Neither the Gila River Indian Community nor the Turlock Irrigation District are the first to implement this technology globally. Indian engineering firm Sun Edison inaugurated the first solar-covered canal in 2012 on one of the largest irrigation projects in the world in Gujarat state. Despite ambitious plans to cover 11,800 miles (19,000 kilometers) of canals, only a handful of small projects ever went up, and the engineering firm filed for bankruptcy.

High capital costs, clunky design and maintenance challenges were obstacles for widespread adoption, experts say.

But severe, prolonged drought in the western U.S. has centered water as a key political issue, heightening interest in technologies like cloud seeding and solar-covered canals as water managers grasp at any solution that might buoy reserves, even ones that haven’t been widely tested, or tested at all.

Still, the project is an important indicator of the tribe’s commitment to water conservation, said Heather Tanana, a visiting law professor at the University of California, Irvine and citizen of the Navajo Nation. Tribes hold the most senior water rights on the Colorado River, though many are still settling those rights in court.

“There’s so much fear about the tribes asserting their rights and if they do so, it’ll pull from someone else’s rights,” she said. The tribe leaving water in Lake Mead and putting federal dollars toward projects like solar canopies is “a great example to show that fear is unwarranted.”

The federal government has made record funding available for water-saving projects, including a $233 million pact with the Gila River Indian Community to conserve about two feet of water in Lake Mead, the massive and severely depleted reservoir on the Colorado River. Phase one of the solar canal project will cost $6.7 million and the Bureau of Reclamation provided $517,000 for the design.