Two Saudi oil tankers damaged in 'sabotage attack,' says press agency - CNN

Tensions have risen in the oil-rich region in recent weeks amid the deployment of a growing number of United States military assets to the Middle East due to deteriorating relations with Iran.

On Thursday, the US Maritime Administration issued an advisory warning that "Iran or its proxies" could be targeting commercial vessels and oil production infrastructure in the region.

One of the two Saudi vessels was on its way to be loaded with Saudi crude oil from the port of Ras Tanura, to be delivered to customers in the US, Saudi Arabia's state-run Saudi Press Agency (SPA) reported Monday.

While the agency didn't mention casualties or oil spills, it did say there had been "significant damage to the structures of the two vessels."

On Sunday, the UAE said that four commercial cargo ships were targeted by "sabotage operations" off its eastern coast. The apparent sabotage took place near to UAE territorial waters in the Gulf of Oman, east of the emirate of Fujairah, the country's Ministry of Foreign Affairs and International Cooperation said Sunday.

It is unclear if the ships mentioned by Saudi Arabia and the UAE are part of the same incident.

The UAE ministry did not elaborate on the nature of the alleged sabotage, or offer any indication as to who might be responsible, including whether it was carried out by individuals or a larger group or country.

The UAE ministry said authorities were working with local and international bodies to investigate the incident, which it described as a "dangerous development." It said there were no injuries or deaths.

"The international community (needs to) assume its responsibilities to prevent any parties trying to undermine the security and safety of maritime traffic," the ministry said.

Iran's Foreign Ministry spokesperson Seyyed Abbas Mousavi said on Monday that the incidents were "alarming and regrettable," and requested further information on the alleged sabotage.

The Iran spokesman warned against "plots by ill-wishers to disrupt regional security" and called for "vigilance of regional states in the face of any adventurism by foreign elements."

Iran borders the Persian Gulf and the Straits of Hormuz.

Saudi Arabian Energy Minister Khalid al-Falih said the attack was an attempt to "undermine the freedom of maritime navigation, and the security of oil supplies to consumers all over the world," according to comments carried by the by the Saudi Press Agency.

UAE denies earlier reports

The accusations of sabotage come less than 24 hours after the UAE government denied reports alleging that seven oil tankers were involved in an explosion in the port of Fujairah on Sunday morning.

The reports were carried first by Lebanon's pro-Hezbollah Al-Mayadeen satellite channel and later picked up by Iran's state-owned Press TV and other outlets.

"The operations at the port are going as normal," a statement from the Emirates News Agency said Sunday. "Media outlets must be responsible and rely on official sources."

Fujairah is located close to the Strait of Hormuz, a strategically important waterway that connects the Persian Gulf to the Arabian Sea.

The US Energy Information Administration calls the Strait of Hormuz "the world's most important oil transit chokepoint," with an estimated 20% of oil traded worldwide moving through the channel, which is about 30 miles wide at its narrowest point.

In a statement Sunday, the Gulf Cooperation Council condemned the "sabotage operations," with council General Secretary Abdul Latif bin Rashid al-Zayani calling the incident a "dangerous escalation (that) speaks of the evil intentions" of whoever carried out the attack.

"The general secretary calls on the international community and the international maritime organizations to practice its politics and lawfulness to stop any sides that try to harm the safety or the maritime flow in this strategic part to the world," read the statement.

"These irresponsible acts only adds to the tension and conflict in the region and jeopardize the interests of their peoples."

CNN's Mohammed Elshamy and Karen Smith in Atlanta and Nada AlTaher in Abu Dhabi contributed to this article.

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2019-05-13 06:51:00Z
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How Trump's trade war threatens China's ambition to lead the world in technology - CNBC

China's intensified tariff war with the Trump administration is threatening Beijing's ambition to transform itself into the dominant player in global technology.

The United States is a vital customer and source of technology for Chinese makers of electronics, medical equipment and other high-tech exports — industries that the ruling Communist Party sees as the heart of its economic future.

Yet to the Trump administration, they're a threat to America's industrial leadership.

Beijing managed to keep Chinese economic growth steady in the most recent quarter despite a drop in exports to the United States. It did so by boosting government spending and bank lending. But China's technology exporters suffered huge sales drops of up to 40 percent, which ate into profits that pay for technology research.

The tariff war is compounding the pain felt by many Chinese companies. They are already enduring stiffened resistance in the United States and Europe to Chinese acquisitions of technology through joint ventures with foreign companies or, with financing by state-run banks, outright purchases.

China might now have to take the "tougher route" of developing more of its own technology, with less access to foreign partners and know-how, said Rajiv Biswas, chief Asia economist for IHS Markit.

"It may be a slower path," Biswas said.

The government and companies are pouring billions of dollars into research. Huawei, the telecom equipment giant and China's first global tech brand, spent $15 billion last year — more than Apple Inc.

All of this has helped make China an emerging heavyweight in telecoms, artificial intelligence and other fields. Yet the United States, Europe, Japan and other governments complain that Beijing has done so in part by stealing technology or pressuring foreign companies to hand over trade secrets.

Washington is pushing Beijing to roll back plans for a government-led creation of global competitors in robotics, electric cars, artificial intelligence and an array of emerging technologies. Beijing's trading partners argue that such plans violate its commitments to further open its vast consumer and business markets.

The struggle compounds the challenges for President Xi Jinping's government by threatening to delay or disrupt its economic plans. China's leaders are reluctant to yield; they need higher-tech industries to keep incomes rising. Many producers of textiles, shoes and toys have already migrated to Vietnam, Cambodia and other lower-cost economies.

China's ruling Communist Party responded to an economic downturn last year by stepping up spending and lending. That effort reversed a campaign to curb reliance on debt, which had soared so high that rating agencies had downgraded China's credit rating for government borrowing.

Abroad, Xi has been forced to overhaul his multibillion-dollar "Belt and Road" initiative to build railways and other infrastructure. In response to complaints that Beijing is saddling some countries with too much debt, the government has written off some loans and renegotiated contracts.

The tariff war was sparked by years of yawning U.S. trade deficits with China and by complaints — by the Trump administration and many independent trade experts — that Beijing was engaging in predatory and illicit practices, including the theft of technology. The first U.S. penalties targeted high-tech Chinese goods that American officials said benefited from improper support from Beijing.

Its impact spread as President Donald Trump extended tariff increases to Chinese exporters of handbags, furniture and other goods. Those higher import taxes heightened the threat of job losses — a political risk for an unelected party that derives its claim to power in no small part from having managed three decades of explosive economic growth.

On the surface at least, the impact of Friday's U.S. tariff hike "is relatively modest," Brian Coulton, chief economist for Fitch Ratings, said in a report. But if Trump proceeds with his threat to extend 25% tariffs to all imports from China, that "would be a much more material threat to China's growth outlook," Coulton said.

"Renewed weakening in China would rekindle financial market concerns about global growth risks," he said.

Xi's personal standing has been hurt by slowing growth and by last year's decision to eliminate term limits for his office as president, said Zhang Lifang, an independent political commentator in Beijing.

"I think these two things are very stressful for him, both economically and politically," Zhang said.

The United States and Europe have been increasing the cost and complexity of Chinese acquisition of foreign technology or blocking it outright. In October, the European Union tentatively approved the trade bloc's first rules on foreign investments in sensitive sectors. That step followed criticism of Chinese purchases of European technology vendors that are considered vital national assets, including German robot maker Kuka. Chinese buyers have also acquired Sweden's Volvo Cars, Swiss agri-tech supplier Syngenta and IBM's low-end server business.

In the United States, Trump vetoed the 2017 purchase of a chipmaker, Lattice Semiconductor, that was financed by a Chinese government fund.

Foreign manufacturers of consumer electronics and other goods already are shifting investments to Southeast Asia to cut costs, thereby hurting demand for Chinese parts suppliers and sapping revenue they would use to develop technology.

"Boardrooms of multinationals, including possibly Chinese companies, might decide they need to have more manufacturing capability outside China to reduce this risk," Biswas said .

That shift, accelerated by the pressure from U.S. tariffs, promises a potential windfall for other Asian economies.

Taiwanese President Tsai Ing-wen has suggested that the U.S.-China tariff war might help her government woo back manufacturers who had moved to the mainland in search of lower costs.

"Our goal is to speed up Taiwanese business people's coming back to rebuild a high added-value supply chain and encourage industries to transform and upgrade themselves," Tsai said.

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2019-05-12 17:34:38Z
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How Trump's trade war threatens China's ambition to lead the world in technology - CNBC

China's intensified tariff war with the Trump administration is threatening Beijing's ambition to transform itself into the dominant player in global technology.

The United States is a vital customer and source of technology for Chinese makers of electronics, medical equipment and other high-tech exports — industries that the ruling Communist Party sees as the heart of its economic future.

Yet to the Trump administration, they're a threat to America's industrial leadership.

Beijing managed to keep Chinese economic growth steady in the most recent quarter despite a drop in exports to the United States. It did so by boosting government spending and bank lending. But China's technology exporters suffered huge sales drops of up to 40 percent, which ate into profits that pay for technology research.

The tariff war is compounding the pain felt by many Chinese companies. They are already enduring stiffened resistance in the United States and Europe to Chinese acquisitions of technology through joint ventures with foreign companies or, with financing by state-run banks, outright purchases.

China might now have to take the "tougher route" of developing more of its own technology, with less access to foreign partners and know-how, said Rajiv Biswas, chief Asia economist for IHS Markit.

"It may be a slower path," Biswas said.

The government and companies are pouring billions of dollars into research. Huawei, the telecom equipment giant and China's first global tech brand, spent $15 billion last year — more than Apple Inc.

All of this has helped make China an emerging heavyweight in telecoms, artificial intelligence and other fields. Yet the United States, Europe, Japan and other governments complain that Beijing has done so in part by stealing technology or pressuring foreign companies to hand over trade secrets.

Washington is pushing Beijing to roll back plans for a government-led creation of global competitors in robotics, electric cars, artificial intelligence and an array of emerging technologies. Beijing's trading partners argue that such plans violate its commitments to further open its vast consumer and business markets.

The struggle compounds the challenges for President Xi Jinping's government by threatening to delay or disrupt its economic plans. China's leaders are reluctant to yield; they need higher-tech industries to keep incomes rising. Many producers of textiles, shoes and toys have already migrated to Vietnam, Cambodia and other lower-cost economies.

China's ruling Communist Party responded to an economic downturn last year by stepping up spending and lending. That effort reversed a campaign to curb reliance on debt, which had soared so high that rating agencies had downgraded China's credit rating for government borrowing.

Abroad, Xi has been forced to overhaul his multibillion-dollar "Belt and Road" initiative to build railways and other infrastructure. In response to complaints that Beijing is saddling some countries with too much debt, the government has written off some loans and renegotiated contracts.

The tariff war was sparked by years of yawning U.S. trade deficits with China and by complaints — by the Trump administration and many independent trade experts — that Beijing was engaging in predatory and illicit practices, including the theft of technology. The first U.S. penalties targeted high-tech Chinese goods that American officials said benefited from improper support from Beijing.

Its impact spread as President Donald Trump extended tariff increases to Chinese exporters of handbags, furniture and other goods. Those higher import taxes heightened the threat of job losses — a political risk for an unelected party that derives its claim to power in no small part from having managed three decades of explosive economic growth.

On the surface at least, the impact of Friday's U.S. tariff hike "is relatively modest," Brian Coulton, chief economist for Fitch Ratings, said in a report. But if Trump proceeds with his threat to extend 25% tariffs to all imports from China, that "would be a much more material threat to China's growth outlook," Coulton said.

"Renewed weakening in China would rekindle financial market concerns about global growth risks," he said.

Xi's personal standing has been hurt by slowing growth and by last year's decision to eliminate term limits for his office as president, said Zhang Lifang, an independent political commentator in Beijing.

"I think these two things are very stressful for him, both economically and politically," Zhang said.

The United States and Europe have been increasing the cost and complexity of Chinese acquisition of foreign technology or blocking it outright. In October, the European Union tentatively approved the trade bloc's first rules on foreign investments in sensitive sectors. That step followed criticism of Chinese purchases of European technology vendors that are considered vital national assets, including German robot maker Kuka. Chinese buyers have also acquired Sweden's Volvo Cars, Swiss agri-tech supplier Syngenta and IBM's low-end server business.

In the United States, Trump vetoed the 2017 purchase of a chipmaker, Lattice Semiconductor, that was financed by a Chinese government fund.

Foreign manufacturers of consumer electronics and other goods already are shifting investments to Southeast Asia to cut costs, thereby hurting demand for Chinese parts suppliers and sapping revenue they would use to develop technology.

"Boardrooms of multinationals, including possibly Chinese companies, might decide they need to have more manufacturing capability outside China to reduce this risk," Biswas said .

That shift, accelerated by the pressure from U.S. tariffs, promises a potential windfall for other Asian economies.

Taiwanese President Tsai Ing-wen has suggested that the U.S.-China tariff war might help her government woo back manufacturers who had moved to the mainland in search of lower costs.

"Our goal is to speed up Taiwanese business people's coming back to rebuild a high added-value supply chain and encourage industries to transform and upgrade themselves," Tsai said.

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2019-05-12 17:21:14Z
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Pakistan military says five killed in hotel attack in Gwadar - Aljazeera.com

Islamabad, Pakistan - Gunmen have stormed a five-star hotel in Pakistan's port city of Gwadar, killing four hotel workers and Navy soldier, the military has said.

In a statement, Pakistan's military said three armed men killed a security guard as they attempted to enter the Pearl Continental hotel on Saturday in the southern city.

"Five people were killed, and there were six wounded," Abdul Latif, the chief of Gwadar's main government hospital, told Al Jazeera by telephone.

All five bodies had been moved to Karachi, the country's largest city, he said. One of the wounded was in a critical condition, while the other five were "out of danger".

Indiscriminate firing

The military said the attackers came into the hotel to kill hotel guests or take them hostage.

In a statement, it said a security guard challenged the gunmen in the main hall of the hotel, and they headed to the staircase, firing indiscriminately, killing the guard and three other hotel employees. 

When quick reaction forces from the army, navy and police arrived, they evacuated guests and staff and trapped the fighters on the fourth floor of the hotel.

The attackers had disabled CCTV cameras and planted bombs at entry points to the floor, the military said. 

The Pakistani security forces "made special entry points" to get onto the fourth floor and exchanged fire with the fighters, killing all three. A navy soldier was also killed, with two army captains and two Pakistani navy soldiers injured. Two hotel employees were also injured in the incident. 

According to the military, all guests at the hotel, which has 114 rooms, were safely evacuated. 

The Baloch Liberation Army (BLA), an ethnic Baloch separatist group fighting for independence for Balochistan province, claimed responsibility for the attack, saying that four fighters were involved. 

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"Our fighters have carried out this attack on Chinese and other foreign investors who were staying in PC hotel," said Jihand Baloch, a BLA spokesperson, in a statement emailed to Al Jazeera.

Pakistan Prime Minister Imran Khan condemned the attack in a statement on Sunday and thanked security forces for "foiling greater loss to human lives". 

"Such attempts, especially in Balochistan, are an effort to sabotage our economic projects and prosperity," Khan said. "We shall not allow these agendas to succeed."

Massive investment 

Gwadar is the site of a major port built as the culmination of the China Pakistan Economic Corridor (CPEC), a trade corridor that links southwestern China to the Arabian Sea through Pakistan.

The $60bn CPEC project has seen massive investment in infrastructure across Pakistan, including major roads and the Gwadar port in Balochistan province.

Recent days have seen an uptick in violence in the province, with ethnic Baloch separatist groups ramping up attacks against security forces and civilians. 

On Thursday, at least five people were killed when BLA gunmen attacked a coal mine in the Harnai district of Balochistan.

The BLA and other armed groups have been fighting Pakistani security forces for more than a decade, demanding independence for the ethnic Baloch areas of Balochistan province, which they claim has been neglected by the Pakistani state and exploited for its mineral resources.

Balochistan, located in southwest Pakistan, is the country's largest but least populated province, with rich deposits of natural gas, coal, metals and minerals.

Rights groups allege that Pakistani security forces have abducted hundreds of pro-freedom Baloch political activists and fighters in their fight to quell the rebellion.

Last month, an alliance of Baloch separatist groups ambushed a passenger bus en route from Gwadar to Karachi, Pakistan's largest city, killing at least 14 people.

Asad Hashim, Al Jazeera's digital correspondent in Pakistan. He tweets @AsadHashim.

Additional reporting by Saadullah Akhtar in Quetta. 

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2019-05-12 16:14:00Z
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Kudlow acknowledges US will pay for China tariffs, contradicting Trump - CNBC

Larry Kudlow, Director of the United States National Economic Council.

Adam Jeffery | CNBC

White House economic adviser Larry Kudlow on Sunday acknowledged that the Chinese do not directly pay tariffs on goods coming into the U.S., contradicting President Donald Trump's claims that China will pay for tariffs imposed by the U.S.

Kudlow said that "both sides will suffer on this," but argued that China will suffer significant GDP losses as export markets are hit. The blow to U.S. GDP, on the other hand, won't be substantial since the economy is "in terrific shape," he said.

Fox News' Chris Wallace pressed Kudlow about Trump's claims.

"It's not China that pays tariffs," Wallace said. "It's the American importers, the American companies that pay what, in effect, is a tax increase and oftentimes passes it on to U.S. consumers."

"Fair enough," Kudlow replied. "In fact, both sides will pay. Both sides will pay in these things."

Kudlow added, however, that China doesn't actually pay the tariffs, but that their GDP will suffer "with respect to a diminishing export market."

"This is a risk we should and can take without damaging our economy in any appreciable way," Kudlow said.

The most recent round of trade talks, which ended on Friday with no final agreement, followed Trump's decision to more than double tariffs on $200 billion of Chinese goods.

Trump said on Saturday that China should "act now" to wrap up a trade deal with the U.S, warning that "far worse" terms would be offered to them in what he predicted would be his second term as president.

Trump also suggested that the U.S. was "collecting" big tariffs from China.

"Would be wise for them to act now, but love collecting BIG TARIFFS!" he tweeted.

Kudlow said that Trump will likely meet with Chinese President Xi Jinping at the June G-20 summit in Japan.

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2019-05-12 16:11:57Z
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Kudlow says Trump and Xi are likely to meet at G-20 summit despite trade dispute - CNBC

Larry Kudlow, director of the U.S. National Economic Council, speaks during a White House briefing in Washington, D.C., U.S., on Monday, Jan. 28, 2019.

Al Drago | Bloomberg | Getty Images

President Donald Trump and Chinese President Xi Jinping are likely to meet at the June G-20 summit in Japan, White House Economic Advisor Larry Kudlow said in a Fox News interview on Sunday.

Kudlow said the chances of such as meeting "were pretty good," but he said there are "no concrete, definite plans" for when U.S. and Chinese negotiators will meet again.

Trade talks between U.S. and Chinese negotiators broke up on Friday without a trade agreement. The talks took place under the shadow of Trump's decision to more than double the tariff rate to 25% on $200 billion of Chinese goods.

"The talks will continue," Kudlow said. "I will say this: There is a G-20 meeting in Japan toward the end of June next month and the chances that President Trump and President Xi will get together at that meeting are pretty good."

Trump called Friday's negotiations "constructive" and said talks will continue while U.S. tariffs remain in place, though they could be lifted depending on how the situation progresses.

Kudlow said in a Fox News interview on Sunday that he expects China to retaliate against the U.S. Beijing threatened to take "countermeasures" against the U.S. last week, but so far it has not done so.

The White House economic advisor said China had backtracked on its commitments, which precipitated Trump's decision to increase tariffs. He pointed to intellectual property theft and forced technology transfers as sticking points.

"Things seemed to be taking too long, and we can't accept any backtracking," Kudlow said. "We don't think the Chinese have come far enough, we will wait and see."

On Saturday, Trump warned China to "act now" on trade or risk facing a "far worse" deal during a possible second term after the 2020 presidential election.

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2019-05-12 15:07:03Z
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Five killed in attack on luxury Pakistan hotel, military says - CNN

The attack on Pearl Continental in the strategic port city of Gwadar left four hotel employees and a Pakistan Navy soldier dead on Saturday. Six others were injured, including two army captains, two navy soldiers and two hotel employees.

The military said that all three attackers, who planned to take hotel guests hostage, had been killed.

According to a statement from the media wing of Pakistan's Armed Forces, the gunmen forced their way into the hotel's main hall, killing a security guard and firing indiscriminately as they attempted to reach the upper floors of the building.

Military forces were able to reach the hotel, secure guests and restrict the attackers to the fourth floor, before killing them.

A Pakistani separatist group claimed responsibility, warning of more attacks in China and Pakistan in a post on an unverified Twitter account. CNN could not independently confirm whether the account, which claims to belong to the Baolchistan Liberation Army, is authentic.

Gwadar is at the center of China's multi-billion-dollar Belt and Road infrastructure project. Its port on the Arabian Sea is a major link in the initiative, and has transformed the once-small fishing village overlooking it into a heavily fortified town touted as "the next Dubai."

The hotel, on a hillside near the port, is frequented by foreign guests, diplomats and business delegations.

The Chinese embassy in Islamabad condemned the attack and hailed the "heroic action of Pakistani army and law enforcement agencies" in a post on Twitter.

Security forces in Pakistan have been on alert for attacks during the Muslim holy month of Ramadan, which began in early May.

Pakistan's security has improved since a deadly assault on a school in 2014, but Baolchistan remains a flashpoint. At least 14 people were killed in an attack on two buses last month near the town of Omara, also in Balochistan; an alliance of Baloch separatists, Baloch Raaji Aajoi Sangar (BRAS), claimed responsibility for the killings.

Sophia Saifi reported from Islamabad and Eliza Mackintosh wrote from London. CNN's Tim Lister also contributed to this report.

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2019-05-12 14:41:00Z
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