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Convenience Stores are Getting Even More Convenient

The store checkout line may be a thing of the past sooner than we think. A year after Amazon opened its first store without a cashier, retailers and start-ups are competing to get similar technology in other stores worldwide, so shoppers do not have to stand in line. VOAs Deborah Block has a report.

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Gone in a New York Minute: How the Amazon Deal Fell Apart

In early November, word began to leak that Amazon was serious about choosing New York to build a giant new campus. The city was eager to lure the company and its thousands of high-paying tech jobs, offering billions in tax incentives and lighting the Empire State Building in Amazon orange.

Even Governor Andrew Cuomo got in on the action: “I’ll change my name to Amazon Cuomo if that’s what it takes,” he joked at the time.

Then Amazon made it official: It chose the Long Island City neighborhood of Queens to build a $2.5 billion campus that could house 25,000 workers, in addition to new offices planned for northern Virginia. Cuomo and New York Mayor Bill de Blasio, Democrats who have been political adversaries for years, trumpeted the decision as a major coup after edging out more than 230 other proposals.

But what they didn’t expect was the protests, the hostile public hearings and the disparaging tweets that would come in the next three months, eventually leading to Amazon’s dramatic Valentine’s Day breakup with New York.

Immediately after Amazon’s Nov. 12 announcement, criticism started to pour in. The deal included $1.5 billion in special tax breaks and grants for the company, but a closer look at the total package revealed it to be worth at least $2.8 billion. Some of the same politicians who had signed a letter to woo Amazon were now balking at the tax incentives.

“Offering massive corporate welfare from scarce public resources to one of the wealthiest corporations in the world at a time of great need in our state is just wrong,” said New York State Sen. Michael Gianaris and New York City Councilman Jimmy Van Bramer, Democrats who represent the Long Island City area, in a joint statement.

The next day, CEO Jeff Bezos was on the cover of The New York Post in a cartoon-like illustration, hanging out of a helicopter, holding money bags in each hand, with cash billowing above the skyline. “QUEENS RANSOM,” the headline screamed. The New York Times editorial board, meanwhile, called the deal a “bad bargain” for the city: “We won’t know for 10 years whether the promised 25,000 jobs will materialize,” it said.

Anti-Amazon rallies were planned for the next week. Protesters stormed a New York Amazon bookstore on the day after Thanksgiving and then went to a rally on the steps of a courthouse near the site of the new headquarters in the pouring rain. Some held cardboard boxes with Amazon’s smile logo turned upside down.

In this Nov. 14, 2018 file photo, protesters hold up anti-Amazon signs during a coalition rally and press conference of elected officials, community organizations and unions opposing Amazon headquarters getting subsidies to locate in New York.

They had a long list of grievances: the deal was done secretively; Amazon, one of the world’s most valuable companies, didn’t need nearly $3 billion in tax incentives; rising rents could push people out of the neighborhood; and the company was opposed to unionization.

The helipad kept coming up, too: Amazon, in its deal with the city, was promised it could build a spot to land a helicopter on or near the new offices.

At the first public hearing in December, which turned into a hostile, three-hour interrogation of two Amazon executives by city lawmakers, the helipad was mentioned more than a dozen times. The image of high-paid executives buzzing by a nearby low-income housing project became a symbol of corporate greed.

Queens residents soon found postcards from Amazon in their mailboxes, trumpeting the benefits of the project. Gianaris sent his own version, calling the company “Scamazon” and urging people to call Bezos and tell him to stay in Seattle.

At a second city council hearing in January, Amazon’s vice president for public policy, Brian Huseman, subtly suggested that perhaps the company’s decision to come to New York could be reversed.

“We want to invest in a community that wants us,” he said.

Then came a sign that Amazon’s opponents might actually succeed in derailing the deal: In early February, Gianaris was tapped for a seat on a little-known state panel that often has to approve state funding for big economic development projects. That meant if Amazon’s deal went before the board, Gianaris could kill it.

“I’m not looking to negotiate a better deal,” Gianaris said at the time. “I am against the deal that has been proposed.”

Cuomo had the power to block Gianaris’ appointment, but he didn’t indicate whether he would take that step.

Meanwhile, Amazon’s own doubts about the project started to show. On Feb. 8, The Washington Post reported that the company was having second thoughts about the Queens location.

On Wednesday, Cuomo brokered a meeting with four top Amazon executives and the leaders of three unions critical of the deal. The union leaders walked away with the impression that the parties had an agreed upon framework for further negotiations, said Stuart Appelbaum, president of the Retail Wholesale and Department Store Union.

“We had a good conversation. We talked about next steps. We shook hands,” Appelbaum said.

An Amazon representative did not respond to a request for comment for this story.

The final blow landed Thursday, when Amazon announced on a blog post that it was backing out, surprising the mayor, who had spoken to an Amazon executive Monday night and received “no indication” that the company would bail.

Amazon still expected the deal to be approved, according to a source familiar with Amazon’s thinking, but that the constant criticism from politicians didn’t make sense for the company to grow there.

“I was flabbergasted,” De Blasio said. “Why on earth after all of the effort we all put in would you simply walk away?”

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Payless ShoeSource to Close All Remaining US Stores 

Payless ShoeSource is shuttering all of its 2,100 remaining stores in the U.S. and Puerto Rico, joining a list of iconic names like Toys R Us and Bon-Ton that have closed down in the last year. 

 

The Topeka, Kan.-based chain said Friday that it will hold liquidation sales starting Sunday and wind down its e-commerce operations. All of the stores will remain open until at least the end of March and the majority will remain open until May. 

 

The debt-burdened chain filed for Chapter 11 bankruptcy protection in April 2017, closing hundreds of stores as part of its reorganization. 

 

At the time, it had over 4,400 stores in more than 30 countries. It remerged from restructuring four months later with about 3,500 stores and eliminated more than $435 million in debt. 

 

The company said in an email that the liquidation did not affect its franchise operations or its Latin American stores, which remain open for business as usual. It lists 18,000 employees worldwide. 

 

Shoppers are increasingly shifting their buying online or heading to discount stores like T.J. Maxx to grab deals on name-brand shoes. That shift has hurt traditional retailers, even low-price outlets like Payless. Heavy debt loads have also handcuffed retailers, leaving them less flexible to invest in their businesses. 

 

But bankruptcies and store closures will continue through 2019, so there’s “no light at the end of the tunnel,” according to a report by Coresight Research. 

 

Before this announcement, there had been 2,187 U.S. store closing announcements this year, with Gymboree and Ascena Retail, the parent of Lane Bryant and other brands, accounting for more than half the total, according to the research firm. This year’s total is up 23 percent from the 1,776 announcements a year ago. Year-to-date, retailers have announced 1,411 store openings, offsetting 65 percent of store closures, it said. 

 

Payless was founded in 1956 by two cousins, Louis and Shaol Lee Pozez, to offer self-service stores selling affordable footwear. 

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Chinese Leader Meets with US Trade Delegation in Beijing

Chinese President Xi Jinping met Friday with members of the U.S. trade delegation in Beijing where China and the U.S. are attempting to hammer out a trade deal.

U.S. Treasury Secretary Steven Mnuchin posted on Twitter Friday that he and U.S. Trade Representative Robert Lighthizer had “productive meetings with China’s Vice Premier Liu He.”

Another round of negotiations between the two countries will continue next week in Wahington, Chinese state media reported.

Earlier, a top White House economic adviser expressed confidence in the U.S. – China trade negotiations in Beijing.

“The vibe in Beijing is good,” National Economic Council Director Larry Kudlow told reporters at the White House Thursday.

Kudlow provided few details but said the U.S. delegation led by Lighthizer was “covering all ground.”

“That’s a very good sign and they’re just soldiering on, so I like that story,” Kudlow said, “And I will stay with the phrase, the vibe is good.”

Negotiators are working to strike a deal by March 1, to avoid a rise in U.S. tariffs on $200 million worth of Chinese goods from 10 percent to 25 percent. President Donald Trump suggested earlier this week that if talks are seeing signs of progress, that deadline could be pushed back.

When asked Thursday if there would be an extension, Kudlow said, “No such decision has been made so far.”

Analysts such as William Reinsch, a former president of the National Foreign trade Council and senior advisor at the Center for Strategic and International Studies, say the talks are complicated by the three main areas under negotiation.

“Market access, which I think is well on the way to completion. Some Chinese offers on intellectual property, which I think they are not going to offer what we want…And some compliance in enforcement matters.”

Reinsch told VOA’s Mandarin service that U.S. negotiators are specifically seeking ways to hold China accountable for the commitments it makes in any deal.

Munich security conference

 

While American and Chinese negotiators continue talks in Beijing, both countries are setting up for another potential face-off in Europe.

 

The U.S. and China are sending large delegations to Friday’s Munich Security Conference in Germany, a high-level conference on international security policy. Vice President Mike Pence leads the U.S. delegation while Politburo member Yang Jiechi will be the most senior Chinese official.

Yang Jiechi is heading the largest-ever Chinese delegation to the conference traditionally attended by the U.S. and its European allies. He is pushing back against Washington’s campaign pressing Europe to exclude Chinese tech giant Huawei from taking part in constructing 5G mobile networks in the region.

U.S. officials say allowing the Chinese company to build the next generation of wireless communications in Europe will enhance the Chinese government’s surveillance powers, threatening European security.

Although the technology behind 5G is complex, Brad Setser, a senior fellow at the Council on Foreign Relations and former deputy assistant secretary at the U.S. Treasury Department, said the decisions for European countries is simple.

“Given the nature of modern telecommunication, countries do have to make a choice about whether or not they believe that Huawei, given its relationship, not an ownership relationship, with Chinese government, can be trusted to provide the backbone of their future telecommunication system.”

Both Pence and U.S. Secretary of State Mike Pompeo warned allies in Poland and other Central European countries this week on the dangers of closer ties with Beijing and collaboration with Chinese firms. In Budapest, Hungary on Monday, Pompeo said American companies might scale back European operations if countries continue to do business with Huawei.

Huawei has repeatedly denied its products could be used for espionage.

U.S. prosecutors have filed charges against Huawei including bank fraud, violating sanctions against Iran, and stealing trade secrets. The company refuted these accusations and rejected charges against its chief financial officer Meng Wanzhou, who is currently on bail in Canada following her arrest in December.

This year’s Munich Security Conference topics include the “great power competition” between the United States, China, and Russia. Conference organizers have listed US-China tensions as one of their top 10 security issues of 2019.

VOA’s Mandarin Service reporter Jingxun Li contributed to this report

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Chinese Leader Meets with US Trade Delegation in Beijing

Chinese President Xi Jinping met Friday with members of the U.S. trade delegation in Beijing where China and the U.S. are attempting to hammer out a trade deal.

U.S. Treasury Secretary Steven Mnuchin posted on Twitter Friday that he and U.S. Trade Representative Robert Lighthizer had “productive meetings with China’s Vice Premier Liu He.”

Another round of negotiations between the two countries will continue next week in Wahington, Chinese state media reported.

Earlier, a top White House economic adviser expressed confidence in the U.S. – China trade negotiations in Beijing.

“The vibe in Beijing is good,” National Economic Council Director Larry Kudlow told reporters at the White House Thursday.

Kudlow provided few details but said the U.S. delegation led by Lighthizer was “covering all ground.”

“That’s a very good sign and they’re just soldiering on, so I like that story,” Kudlow said, “And I will stay with the phrase, the vibe is good.”

Negotiators are working to strike a deal by March 1, to avoid a rise in U.S. tariffs on $200 million worth of Chinese goods from 10 percent to 25 percent. President Donald Trump suggested earlier this week that if talks are seeing signs of progress, that deadline could be pushed back.

When asked Thursday if there would be an extension, Kudlow said, “No such decision has been made so far.”

Analysts such as William Reinsch, a former president of the National Foreign trade Council and senior advisor at the Center for Strategic and International Studies, say the talks are complicated by the three main areas under negotiation.

“Market access, which I think is well on the way to completion. Some Chinese offers on intellectual property, which I think they are not going to offer what we want…And some compliance in enforcement matters.”

Reinsch told VOA’s Mandarin service that U.S. negotiators are specifically seeking ways to hold China accountable for the commitments it makes in any deal.

Munich security conference

 

While American and Chinese negotiators continue talks in Beijing, both countries are setting up for another potential face-off in Europe.

 

The U.S. and China are sending large delegations to Friday’s Munich Security Conference in Germany, a high-level conference on international security policy. Vice President Mike Pence leads the U.S. delegation while Politburo member Yang Jiechi will be the most senior Chinese official.

Yang Jiechi is heading the largest-ever Chinese delegation to the conference traditionally attended by the U.S. and its European allies. He is pushing back against Washington’s campaign pressing Europe to exclude Chinese tech giant Huawei from taking part in constructing 5G mobile networks in the region.

U.S. officials say allowing the Chinese company to build the next generation of wireless communications in Europe will enhance the Chinese government’s surveillance powers, threatening European security.

Although the technology behind 5G is complex, Brad Setser, a senior fellow at the Council on Foreign Relations and former deputy assistant secretary at the U.S. Treasury Department, said the decisions for European countries is simple.

“Given the nature of modern telecommunication, countries do have to make a choice about whether or not they believe that Huawei, given its relationship, not an ownership relationship, with Chinese government, can be trusted to provide the backbone of their future telecommunication system.”

Both Pence and U.S. Secretary of State Mike Pompeo warned allies in Poland and other Central European countries this week on the dangers of closer ties with Beijing and collaboration with Chinese firms. In Budapest, Hungary on Monday, Pompeo said American companies might scale back European operations if countries continue to do business with Huawei.

Huawei has repeatedly denied its products could be used for espionage.

U.S. prosecutors have filed charges against Huawei including bank fraud, violating sanctions against Iran, and stealing trade secrets. The company refuted these accusations and rejected charges against its chief financial officer Meng Wanzhou, who is currently on bail in Canada following her arrest in December.

This year’s Munich Security Conference topics include the “great power competition” between the United States, China, and Russia. Conference organizers have listed US-China tensions as one of their top 10 security issues of 2019.

VOA’s Mandarin Service reporter Jingxun Li contributed to this report

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‘Fintech’ Could Help Mexicans Abroad Send Money Home

Mexico’s new government is trying to slash the cost of sending cash home for Mexican families living abroad and is hoping competition from “fintechs” (financial technology) will encourage banks and services like Western Union to reduce commissions and improve exchange rates.

Deputy Finance Minister Arturo Herrera said the government did not plan to place new regulations on the flow of remittances, one of the country’s largest sources of foreign currency and a lifeline for millions of poor families.

Sending remittances

However, the former World Bank executive envisaged that the increasing use of money transfer apps would help bring down the cost of sending remittances. Currently, the commission charged and the foreign exchange rates imposed together take a bite out of each remittance of 8 percent on average. Herrera said that should be brought down to 5 percent.

“That is to say, the cost of transactions must come down by about 40 percent. That is something the fintechs are probably in a better position to do than traditional actors such as banks,” Herrera told Reuters in an interview earlier this week. 

“Their great advantage is that they can operate in a more efficient and direct way and at lower costs, which should lead to lower commissions,” Herrera said.

President Andres Manuel Lopez Obrador, who took office on Dec. 1, has made fighting poverty and inequality a centerpiece of his administration. Herrera said bringing down the cost for financial services like remittances would help many of the nation’s neediest.

Banking costs are a sensitive issue in Mexico. When Lopez Obrador’s ruling MORENA party introduced a bill last year to limit banking fees it triggered a selloff in the stock market. Lopez Obrador distanced himself from the bill.

Calm investors

Other changes were better received, with credit ratings agency Fitch saying a bill introduced by Lopez Obrador to loosen restrictions on pension fund managers could lead to better returns and payouts for beneficiaries.

Lopez Obrador has also tried to calm investors’ nerves by saying there would be no modifications to the legal framework relating to economic, financial and fiscal matters in the first three years of his tenure.

The government says 24 million Mexicans live in the United States, by far the largest source of money sent home. Mexicans sent a record $33.5 billion in remittances in 2018, a 10.5 percent jump from a year earlier, Mexican central bank data show.

Mexico is already home to 75 startups that specialize in payments and remittances, data from fintech platform Finnovista show, while remittance apps like Remitly and Xoom have been gaining popularity.

Herrera said banks and Western Union would have to make their services cheaper to compete with money transfer apps. He did not say how quickly that would happen.

“I wish we could make it happen immediately,” he said.

No comment from Western Union

Western Union and its closest rival Moneygram did not respond to requests for comment. The Mexican Banking Association declined to comment on the topic.

Turning to fintechs for change is part of a broader strategy aimed at decreasing the use of the cash in Mexico, Herrera said. He said the Finance Ministry planned to reveal additional measures at the annual Banking Convention in March.

Ninety percent of transactions in Mexico are made in cash, in a system that he said is inefficient and expensive and creates ample opportunities for corruption and money laundering.

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‘Fintech’ Could Help Mexicans Abroad Send Money Home

Mexico’s new government is trying to slash the cost of sending cash home for Mexican families living abroad and is hoping competition from “fintechs” (financial technology) will encourage banks and services like Western Union to reduce commissions and improve exchange rates.

Deputy Finance Minister Arturo Herrera said the government did not plan to place new regulations on the flow of remittances, one of the country’s largest sources of foreign currency and a lifeline for millions of poor families.

Sending remittances

However, the former World Bank executive envisaged that the increasing use of money transfer apps would help bring down the cost of sending remittances. Currently, the commission charged and the foreign exchange rates imposed together take a bite out of each remittance of 8 percent on average. Herrera said that should be brought down to 5 percent.

“That is to say, the cost of transactions must come down by about 40 percent. That is something the fintechs are probably in a better position to do than traditional actors such as banks,” Herrera told Reuters in an interview earlier this week. 

“Their great advantage is that they can operate in a more efficient and direct way and at lower costs, which should lead to lower commissions,” Herrera said.

President Andres Manuel Lopez Obrador, who took office on Dec. 1, has made fighting poverty and inequality a centerpiece of his administration. Herrera said bringing down the cost for financial services like remittances would help many of the nation’s neediest.

Banking costs are a sensitive issue in Mexico. When Lopez Obrador’s ruling MORENA party introduced a bill last year to limit banking fees it triggered a selloff in the stock market. Lopez Obrador distanced himself from the bill.

Calm investors

Other changes were better received, with credit ratings agency Fitch saying a bill introduced by Lopez Obrador to loosen restrictions on pension fund managers could lead to better returns and payouts for beneficiaries.

Lopez Obrador has also tried to calm investors’ nerves by saying there would be no modifications to the legal framework relating to economic, financial and fiscal matters in the first three years of his tenure.

The government says 24 million Mexicans live in the United States, by far the largest source of money sent home. Mexicans sent a record $33.5 billion in remittances in 2018, a 10.5 percent jump from a year earlier, Mexican central bank data show.

Mexico is already home to 75 startups that specialize in payments and remittances, data from fintech platform Finnovista show, while remittance apps like Remitly and Xoom have been gaining popularity.

Herrera said banks and Western Union would have to make their services cheaper to compete with money transfer apps. He did not say how quickly that would happen.

“I wish we could make it happen immediately,” he said.

No comment from Western Union

Western Union and its closest rival Moneygram did not respond to requests for comment. The Mexican Banking Association declined to comment on the topic.

Turning to fintechs for change is part of a broader strategy aimed at decreasing the use of the cash in Mexico, Herrera said. He said the Finance Ministry planned to reveal additional measures at the annual Banking Convention in March.

Ninety percent of transactions in Mexico are made in cash, in a system that he said is inefficient and expensive and creates ample opportunities for corruption and money laundering.

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White House Upbeat on Beijing Trade Talks

A top White House economic adviser is expressing confidence in the current U.S.-China trade negotiations in Beijing.

“The vibe in Beijing is good,” National Economic Council Director Larry Kudlow told reporters Thursday at the White House. 

Kudlow provided few details but said the U.S. delegation led by Trade Representative Robert Lighthizer is “covering all ground” ahead of their expected meeting with Chinese President Xi Jinping tomorrow.

“That’s a very good sign and they’re just soldiering on, so I like that story,” Kudlow said, “And I will stay with the phrase, the vibe is good.”

Negotiators are working to strike a deal by March 1, to avoid a rise in U.S. tariffs on $200 million worth of Chinese goods from 10 percent to 25 percent. President Donald Trump suggested earlier this week that if talks are seeing signs of progress, that deadline could be pushed back.

When asked Thursday if there would be an extension, Kudlow said, “No such decision has been made so far.”

Analyst William Reinsch, a former president of the National Foreign Trade Council and senior adviser at the Center for Strategic and International Studies, says the talks are complicated by the three main areas under negotiation.

“Market access, which I think is well on the way to completion. Some Chinese offers on intellectual property, which I think they are not going to offer what we want. … And some compliance in enforcement matters,” he said.

Reinsch told VOA’s Mandarin service that U.S. negotiators are specifically seeking ways to hold China accountable for the commitments it makes in any deal.

Munich Security Conference

While American and Chinese negotiators continue talks in Beijing, both countries are setting up for another potential faceoff in Europe.

The U.S. and China are sending large delegations to Friday’s Munich Security Conference in Germany, a high-level conference on international security policy. Vice President Mike Pence leads the U.S. delegation while Politburo member Yang Jiechi will be the most senior Chinese official.

Yang Jiechi is heading the largest-ever Chinese delegation to the conference traditionally attended by the U.S. and its European allies. He is pushing back against Washington’s campaign pressing Europe to exclude Chinese tech giant Huawei from taking part in constructing 5G mobile networks in the region.

U.S. officials say allowing the Chinese company to build the next generation of wireless communications in Europe will enhance the Chinese government’s surveillance powers, threatening European security.

Although the technology behind 5G is complex, Brad Setser, a senior fellow at the Council on Foreign Relations and former deputy assistant secretary at the U.S. Treasury Department, said the decisions for European countries is simple.

“Given the nature of modern telecommunication, countries do have to make a choice about whether or not they believe that Huawei, given its relationship, not an ownership relationship, with Chinese government, can be trusted to provide the backbone of their future telecommunication system.”

Both Pence and U.S. Secretary of State Mike Pompeo warned allies in Poland and other Central European countries this week on the dangers of closer ties with Beijing and collaboration with Chinese firms. In Budapest, Hungary, on Monday, Pompeo said American companies might scale back European operations if countries continue to do business with Huawei.

Huawei has repeatedly denied its products could be used for espionage.

U.S. prosecutors have filed charges against Huawei, including bank fraud, violating sanctions against Iran, and stealing trade secrets. The company refuted these accusations and rejected charges against its chief financial officer Meng Wanzhou, who is currently on bail in Canada following her arrest in December.

This year’s Munich Security Conference topics include the “great power competition” between the United States, China and Russia. Conference organizers have listed U.S.-China tensions as one of their top 10 security issues of 2019.

VOA’s Mandarin Service reporter Jingxun Li contributed to this report.

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White House Upbeat on Beijing Trade Talks

A top White House economic adviser is expressing confidence in the current U.S.-China trade negotiations in Beijing.

“The vibe in Beijing is good,” National Economic Council Director Larry Kudlow told reporters Thursday at the White House. 

Kudlow provided few details but said the U.S. delegation led by Trade Representative Robert Lighthizer is “covering all ground” ahead of their expected meeting with Chinese President Xi Jinping tomorrow.

“That’s a very good sign and they’re just soldiering on, so I like that story,” Kudlow said, “And I will stay with the phrase, the vibe is good.”

Negotiators are working to strike a deal by March 1, to avoid a rise in U.S. tariffs on $200 million worth of Chinese goods from 10 percent to 25 percent. President Donald Trump suggested earlier this week that if talks are seeing signs of progress, that deadline could be pushed back.

When asked Thursday if there would be an extension, Kudlow said, “No such decision has been made so far.”

Analyst William Reinsch, a former president of the National Foreign Trade Council and senior adviser at the Center for Strategic and International Studies, says the talks are complicated by the three main areas under negotiation.

“Market access, which I think is well on the way to completion. Some Chinese offers on intellectual property, which I think they are not going to offer what we want. … And some compliance in enforcement matters,” he said.

Reinsch told VOA’s Mandarin service that U.S. negotiators are specifically seeking ways to hold China accountable for the commitments it makes in any deal.

Munich Security Conference

While American and Chinese negotiators continue talks in Beijing, both countries are setting up for another potential faceoff in Europe.

The U.S. and China are sending large delegations to Friday’s Munich Security Conference in Germany, a high-level conference on international security policy. Vice President Mike Pence leads the U.S. delegation while Politburo member Yang Jiechi will be the most senior Chinese official.

Yang Jiechi is heading the largest-ever Chinese delegation to the conference traditionally attended by the U.S. and its European allies. He is pushing back against Washington’s campaign pressing Europe to exclude Chinese tech giant Huawei from taking part in constructing 5G mobile networks in the region.

U.S. officials say allowing the Chinese company to build the next generation of wireless communications in Europe will enhance the Chinese government’s surveillance powers, threatening European security.

Although the technology behind 5G is complex, Brad Setser, a senior fellow at the Council on Foreign Relations and former deputy assistant secretary at the U.S. Treasury Department, said the decisions for European countries is simple.

“Given the nature of modern telecommunication, countries do have to make a choice about whether or not they believe that Huawei, given its relationship, not an ownership relationship, with Chinese government, can be trusted to provide the backbone of their future telecommunication system.”

Both Pence and U.S. Secretary of State Mike Pompeo warned allies in Poland and other Central European countries this week on the dangers of closer ties with Beijing and collaboration with Chinese firms. In Budapest, Hungary, on Monday, Pompeo said American companies might scale back European operations if countries continue to do business with Huawei.

Huawei has repeatedly denied its products could be used for espionage.

U.S. prosecutors have filed charges against Huawei, including bank fraud, violating sanctions against Iran, and stealing trade secrets. The company refuted these accusations and rejected charges against its chief financial officer Meng Wanzhou, who is currently on bail in Canada following her arrest in December.

This year’s Munich Security Conference topics include the “great power competition” between the United States, China and Russia. Conference organizers have listed U.S.-China tensions as one of their top 10 security issues of 2019.

VOA’s Mandarin Service reporter Jingxun Li contributed to this report.

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Amazon Ditches New York Headquarters

Amazon will not be building a new headquarters in New York, a stunning reversal after a yearlong search.

The online retailer faced opposition from some New York politicians, who were unhappy with the nearly $3 billion in tax incentives Amazon was promised. The Seattle-based Amazon had planned to bring 25,000 jobs to New York, and spend $2.5 billion building its offices.

 

“We are disappointed to have reached this conclusion — we love New York,” the company said in a blog post, adding that it has 5,000 workers in the city and plans to grow those teams.

 

Amazon said Thursday it does not plan to look for another location at this time, and will continue to build out offices in Arlington, Virginia, and Nashville, Tennessee.