NewzIntel.com

Category: Economy

  • MIL-OSI Europe: Moody’s Ratings upgrades Iceland’s ratings to A1, changes outlook to stable

    Source: Government of Iceland

    Moody’s Ratings (Moody’s) has upgraded the local and foreign-currency long-term issuer ratings of the Government of Iceland to A1 from A2 and changed the outlook to stable from positive.

    The key driver for the upgrade is the government’s improving fiscal metrics, which Moody´s expects to continue, with a sizeable reduction in the budget deficit and a clearly established downward trend in the government debt ratio since a recent peak in 2020. Moody’s expects the budget deficit to decline broadly in line with the government’s medium-term plans, which the rating agency considers credible.

    A consensual settlement of the HF Fund’s (A2 positive) liabilities, which are included in government debt, and renewed sales of government held bank shares will likely result in additional one-off reductions in the debt ratio, in addition to an underlying declining trend. Secondly, tight monetary and fiscal policy has started to moderate elevated inflation, which supports Moody´s assessment of Iceland’s strong institutions and pro-active and well-coordinated policy stance.

    Iceland’s medium-term fiscal policy framework has been a credit strength, ensuring fiscal sustainability and the creation of fiscal space over time since its introduction in 2015. The fact that the authorities are now considering to replace the current balanced budget rule with an expenditure rule is credit positive, as such a change would strengthen the framework further by contributing more strongly to macroeconomic stability.

    The stable outlook reflects balanced risks at the A1 rating level. Moody´s expects fiscal consolidation to continue over the coming years broadly as planned in the medium-term fiscal plan. The economy is expected to return to robust growth next year, after a temporary slowdown this year as the tight monetary and fiscal policy cool the previously overheated economy. The sovereign’s economic and fiscal metrics may improve faster than Moody´s currently expects. At the same time, Iceland remains a small and comparatively undiversified economy, sensitive to sector-specific shocks. Also, its debt ratio and debt affordability metrics remain weaker than close peers at the same rating level, making fiscal strength relatively sensitive to shocks.

    The rating could be upgraded further if the government debt ratio continued to decline much faster than under Moody´s baseline assumptions and debt affordability metrics aligned with higher-rated peers. The rating could also be upgraded if the ongoing economic diversification efforts yielded stronger results in terms of reducing volatility of economic growth.

    Conversely, the rating would come under downward pressure if the government deviated significantly from its medium-term fiscal plans, resulting in a material increase in the public debt ratio with no indication of a timely correction.

    MIL OSI Europe News –

  • MIL-OSI USA: Congressman Al Green on the Biden-Harris Administration Delivering Lower Drug Costs for Americans

    Source: United States House of Representatives – Congressman Al Green (TX-9)

    (Houston, TX) — Today, Congressman Al Green recognizes the second anniversary of the Inflation Reduction Act of 2022 (IRA). The IRA, which Congressman Green voted for, lowers prescription drug prices, invests in domestic energy production while promoting clean energy, and helps reduce the federal budget deficit. With this legislation, Democrats and the Biden-Harris Administration have enabled the Centers for Medicare & Medicaid Services (CMS) to negotiate lower prescription drug costs for Medicare beneficiaries. CMS has now negotiated prices for 10 major prescription medications – Eliquis, Jardiance, Xarelto, Januvia, Farxiga, Entresto, Enbrel, Imbruvica, Stelara, and NovoLog/Fiasp.

    The IRA has successfully decreased the average cost of healthcare coverage by $2,400 per family; placed a cap on insulin costs at $35 per month for seniors under Medicare; and limited out-of-pocket drug expenses for seniors to $2,000 per year. In the Ninth Congressional District of Texas, 29,000 Medicare beneficiaries will benefit from the IRA drug pricing reforms this year, with estimated total savings of $5.7 million. In 2024, these beneficiaries are projected to save an average of $196. By 2025, district-wide savings are projected to rise to $11 million, benefiting 33,000 Medicare beneficiaries.

    Congressman Al Green stated, “Lower drug costs are crucial to ensuring that seniors, individuals with disabilities, and underserved communities can access affordable healthcare and life saving prescriptions. CMS’s successful negotiation of lower prices for 10 commonly used medications that beneficiaries depend on, including insulin, is a vital step in reducing the financial burden of these medications. I look forward to future steps that will help ensure that everyone has the opportunity to lead healthier lives without facing undue economic barriers.”

    MIL OSI USA News –

  • MIL-OSI USA: Congressman Al Green Hosts Acting Secretary of Labor Julie Su in Houston for Labor Legislative Update and Breakfast Assembly

    Source: United States House of Representatives – Congressman Al Green (TX-9)

    (Houston, TX) — On Thursday, September 5, 2024, Congressman Al Green will welcome Cabinet Member and Acting Secretary of Labor Julie A. Su to the Ninth Congressional District of Texas as a special guest speaker for his annual labor legislative update and breakfast assembly.The program will include labor leaders in the region to discuss labor and union issues as well as work the Biden administration has done related to the families of union workers. The event will be held at the Wyndham Hotel near NRG Park at 8686 Kirby Drive, Houston, Texas. The program will start at 8:00 a.m. CT, followed by a press conference at 10:00 a.m.

    “I am proud to join Rep. Green in Houston as we continue to fight for each and every worker in this country,” said U.S. Acting Secretary of Labor Julie Su. “As the most pro-worker, pro-union administration in history, the Biden-Harris administration remains committed to enforcing the law, ensuring workers can utilize their right to organize, supporting workers at the bargaining table, and creating pathways that ensure everyone has access to a good job.”

    “It’s an honor to have Acting Secretary of Labor Julie Su in the Ninth Congressional District of Texas. As we celebrate Labor Day, it is important to recognize the contributions of labor unions’ crucial role in building and safeguarding the rights of American workers, including their wages, benefits, and working conditions. The bipartisan Infrastructure Investment and Jobs Act championed by President Biden has facilitated the creation of new jobs, particularly union jobs that are accessible to all Americans,” stated Congressman Al Green. “In Texas alone, $153.2 billion has been invested by the private sector along with $34.2 billion of public investments in clean energy, infrastructure, and manufacturing, creating more good paying employment opportunities for Texans. We must continue to advocate for the labor unions that protect workers, power the American economy, and strengthen the lives of Americans.”

    Click here to watch the Facebook Live Stream of the press conference at 10:00 a.m. CT.

    MIL OSI USA News –

  • MIL-OSI USA: Kirsten Engel abused taxpayer resources to prop up campaign: Investigation

    Source: US National Republican Congressional Committee

    The following text contains opinion that is not, or not necessarily, that of MIL-OSI –

    September 20, 2024

    Kirsten Engel repeatedly “misused taxpayer resources to prop up her political campaigns,” an investigation story out today revealed. 

    It followed an investigation that judges excoriated Engel for fraudulently overbilling taxpayers for ‘imaginary’ legal work.

    In case you missed it…

    NOTE: “Cash-it-in Kirsten’s ethical compass is broken,” Ben Petersen, a spokesman for the National Republican Congressional Committee, told the Washington Examiner. “From bilking taxpayers for ‘imaginary’ legal fees to misusing government resources, Engel has proven she will stop at nothing to game the system and benefit herself.”

    Arizona congressional candidate misused taxpayer resources by using state-funded email to boost campaign
    Washington Examiner
    Annabella Rosciglione

    EXCLUSIVE — A Democratic congressional candidate in Arizona misused taxpayer resources to prop up her political campaigns, documents show.

    Records reveal that Democrat Kirsten Engel, who is running against Rep. Juan Ciscomani (R-AZ) in Arizona’s 6th Congressional District, misused taxpayer-funded government resources to enhance her legislative and congressional campaigns while serving in the Arizona legislature.

    Engel used her email as a state senator to forward taxpayer-funded subscription publications to her campaign staff, according to documents obtained by the Washington Examiner. She sent her campaign staff articles from trade publications such as the Yellow Sheet Report and Arizona Legislative Report, both of which are pricey subscriptions the state of Arizona finances for legislative officials and their staff.

    Some emails she forwarded from said trade publications include in large text a “DO NOT FORWARD THIS EMAIL” message and state that it is illegal to “electronically disseminate” their reports. Engel forwarded emails like these from her state subscription to campaign staff at least 15 times over the last three years.

    In one instance, she used her state legislative email to coordinate social media posts for her campaign. She asked her campaign staffer to make a post about donating to a local Tucson, Arizona-based organization after her then-Republican opponent did the same. Her staffer complied with the request.

    In addition to using her state legislative-affiliated email for campaign-related happenings, she used her University of Arizona email, as she teaches at the law school there, to schedule a time to meet with a prospective congressional candidate in 2017. Another faculty member at the university reached out to her to schedule a time to meet with a prospective congressional candidate, to which Engel responded with a proposed time frame.

    Email addresses connected to state universities are, in part, taxpayer-funded via funds they receive from the state. The UA and other public universities typically enter a contract with email domain providers such as Microsoft or Google, for example. It is very unlikely, however, that the University of Arizona or the state is billed per email address or per email sent.

    If holding office or working in any capacity for the state or government, candidates are supposed to use their email from the campaign, which is paid for by money via donations and themselves, when discussing campaign-related topics rather than their email associated with the government.

    “Cash-it-in Kirsten’s ethical compass is broken,” Ben Petersen, a spokesman for the National Republican Congressional Committee, told the Washington Examiner. “From bilking taxpayers for ‘imaginary’ legal fees to misusing government resources, Engel has proven she will stop at nothing to game the system and benefit herself.”

    Engel and Ciscomani previously faced each other in 2022, with Ciscomani winning the seat by just over 1 percentage point. The Cook Political Report labels the race a toss-up.

    Read more here.

    MIL OSI USA News –

  • MIL-OSI USA: Unregistered Municipal Advisory Activity in Public-Private Partnerships

    Source: Securities and Exchange Commission

    Good afternoon everyone. I want to thank The Bond Buyer for organizing this Infrastructure Conference and for inviting me today to talk about some important regulatory safeguards that were put in place a decade ago to help state and local governments make effective infrastructure investments.

    But before I begin, I must remind you that my remarks are in my official capacity as Director of the Securities and Exchange Commission’s Office of Municipal Securities, but do not necessarily reflect the views of the Commission, the Commissioners, or other members of the staff.

    These types of events give me a unique opportunity to speak directly to the municipal securities market about an issue that has framed my tenure with the Commission, first as a staff attorney serving as a principal drafter of the municipal advisor rules and now as the Director of the Office charged with overseeing municipal advisor regulation, namely unregistered entities engaging in municipal advisory activity.[1]

    Filling a Gap in the Regulatory Landscape

    To begin, I thought I would spend a few moments laying out the municipal advisor regulatory framework.

    Until the passage of the Dodd-Frank Wall Street Reform and Consumer Protection Act (“Dodd-Frank Act” or “Dodd-Frank”), advisors[2] to municipal entities[3] and obligated persons[4] were largely unregulated and were generally not required to register with the Commission or any other federal, state, or self-regulatory entity with respect to their municipal advisory activity.[5]

    Leaving the activities of these advisors generally unchecked, however, led to several cases of market abuses and economic damage to municipal entities and obligated persons.[6] For instance:

    • Congress found that a number of municipalities suffered losses from complex derivatives products that were marketed by unregulated financial intermediaries;[7]
    • The Commission brought action against a financial institution alleging payments by the financial institution to local firms whose principals or employees were friends of public officials in connection with a bond underwriting and interest rate swap agreement;[8] and
    • The Commission settled several actions against major financial institutions for their role in a series of complex, wide-ranging bid rigging schemes involving derivatives utilized by municipalities and underlying obligors as reinvestment products.[9]

    Dodd-Frank was enacted to generally strengthen oversight of the municipal securities market and to broaden current municipal securities market protections to cover, among other things, previously unregulated market activity.[10] Section 975 amended Section 15B of the Securities Exchange Act of 1934 (“Exchange Act”) creating a new class of regulated person required to register with the Commission: municipal advisors.[11] 

    Who Are Municipal Advisors?

    So, who are municipal advisors? Broadly speaking, municipal advisors assist municipal entities and obligated persons on the terms of bond offerings, investment of bond proceeds, and the structuring and pricing of related products.

    A “municipal advisor” is any person (who is not a municipal entity or an employee of a municipal entity) that:

    provides advice to or on behalf of a municipal entity or obligated person with respect to municipal financial products or the issuance of municipal securities, including advice with respect to the structure, timing, terms, and other similar matters concerning such financial products or issues; or undertakes a solicitation of a municipal entity or obligated person.[12]

    Key here is advice. As you may suspect, “advice” is not subject to a bright-line definition.[13] Instead, the determination of whether a person provides advice to, or on behalf of, a municipal entity or an obligated person regarding municipal advisory activity will depend on all the relevant facts and circumstances.[14] For purposes of the municipal advisor definition, advice includes, without limitation, recommendations that are particularized to the specific needs, objectives, or circumstances of a municipal entity or obligated person with respect to municipal financial products or the issuance of municipal securities, based on all the facts and circumstances.[15] Advice excludes, among other things, the provision of general information that does not involve a recommendation regarding municipal financial products or the issuance of municipal securities.[16]

    The focus of the advice standard is whether or not, under all of the relevant facts and circumstances, the information presented to a municipal entity or obligated person is sufficiently limited so that it does not involve a recommendation that constitutes advice.[17]

    The Exchange Act provides that municipal advisors and any person associated with such municipal advisor has a fiduciary duty to their municipal entity clients, prohibiting municipal advisors from engaging in any act, practice, or course of business that is not consistent with their fiduciary duty.[18] Although the Exchange Act does not provide that municipal advisors are deemed to have a fiduciary duty insofar as their advice is to non-municipal entity obligated person clients, some state fiduciary or agency laws may, depending on the facts and circumstances, apply to municipal advisor engagements with such obligated persons.[19] Municipal advisors do have other obligations to obligated person clients, such as a duty of fair dealing and a duty of care under current Municipal Securities Rulemaking Board (“MSRB”) rules.[20]

    Now that I have laid out the regulatory framework, I want to summarize the key takeaways:

    First, the Commission applies the term “municipal advisory activities”[21] to a range of activities, including, but not limited to developing financing plans, assisting in evaluating different financing options and structures, and evaluating and negotiating terms.[22]

    Second, advice is not subject to a bright-line definition. Advice includes a recommendation regarding municipal financial products or the issuance of municipal securities. The determination of whether a recommendation has been made is an objective inquiry and a key factor that the Commission will consider is whether the recommendation reasonably would be viewed as a suggestion to take action or refrain from taking action.[23]

    Third, any person engaging in municipal advisory activity will be considered a municipal advisor and have a fiduciary duty to their municipal entity client, unless an exclusion or exemption applies.

    Finally, under federal securities law, a person must register with the Commission and the MSRB prior to engaging in municipal advisory activities. Any person that engages in municipal advisory activity prior to registering with the Commission and the MSRB as a municipal advisor violates Section 15B(a)(1)(B) of the Exchange Act.[24]

    Observations on Public-Private Partnerships

    The roughly $4 trillion[25] municipal securities market provides critical support to our nation’s infrastructure. The funds raised by our states and local governments in the municipal securities market have helped remove lead from water pipes; built roads and bridges; modernized hospitals; built clean-energy infrastructure, and so much more to ensure that we have the infrastructure needed to access critical services. But for decades now, observers have noted that tight fiscal conditions and rising costs associated with maintaining and building infrastructure have prevented our states and local governments from investing in infrastructure at the levels needed.[26]

    Recently enacted legislation has made funding and incentives available for a broad range of infrastructure development[27] and may also serve as a potential catalyst for the private sector to help in closing infrastructure gaps, including through public-private partnerships (“P3”).[28]

    As everyone in the room is aware, leveraging private capital to finance public infrastructure is not a new tool. Much of our nation’s early infrastructure was built through partnerships between the public and private sectors.[29] More recently, P3s have been used as a delivery option for complex highway projects throughout the nation[30] and have been presented as a tool to finance projects in other sectors, such as energy infrastructure, affordable housing, school facilities, and telecom.[31]

    Despite their widespread use, there is no universally accepted definition of a P3.[32] P3s are broadly described as any contractual agreement between a public entity and a private entity for the purpose of financing, constructing, operating, managing, and/or maintaining a public asset and related services.[33]

    Let’s break that down a bit: P3s are long-term contractual arrangements between a public entity and private entity, where the private entity makes a financing commitment expecting to be repaid with future tax revenue or user fees or similar arrangement. The private entity signing and managing the P3 contract is typically a special purpose vehicle (SPV) created for the purpose of the P3 project and having equity investors.[34]

    Pretty straightforward: instead of using public resources that may be limited by budget or debt restrictions, private financing steps in as an alternative to building much needed infrastructure, potentially using the same taxes and fees that the municipal entity or obligated person would have used to finance the project if it had decided to finance on its own.

    Well, there is more to the story. Definitionally, P3s exist on a spectrum as an alternative form of procurement[35] but also on a spectrum as an alternative form of financing. Financing packages come in all types of configurations: equity, debt, or a combination sourced from both public and private sources, including private activity bonds (“PABs”), federal credit assistance, state, or local funding, which may include the issuance of municipal securities.[36]

    Compared to more traditional financings of infrastructure – that is, using federal, state, or local funding, which more likely than not includes the issuance of municipal securities – P3s and other non-traditional methodologies that have been developed to deliver and finance infrastructure needs are a bit more complex.

    This complexity has brought with it a range of concerns regarding the use of P3s. Public officials and state and local inspector generals and auditors have studied individual transactions and have issued findings identifying key areas of concern. These concerns include transferring too little or too much risk between the public and private sectors; not using the most efficient and lowest cost financing available to the municipal entity or obligated person; and having very costly long-term impacts to fix short-term budgetary issues.

    Public entities have also been exposed to all sorts of contingent liabilities, including compensation clauses, non-compete clauses, and availability payment escalation clauses, leading to potential increased financial and political burdens on the public entity. Uncontrollable external events, oftentimes impacting anticipated revenues, have seen public entities having to make the choice to either terminate, suspend, or take full control over a project, even though the risk of such events was supposed to be borne by other parties.[38]

    Pathways to Public-Private Partnerships

    In light of these potential hurdles, how does a municipal entity or obligated person go about deciding to finance an infrastructure project using a non-traditional form of procurement?

    One way would be for municipal entities and obligated persons to rely on individuals and firms – advisors, consultants, banks, engineers, accounting firms, developers, real estate managers, investment specialists, diversified financial services groups – collectively, what I will be referring to as “P3 Consultants” that have positioned themselves as financial, legal, and technical experts on P3s. Individual or groups of P3 Consultants are purportedly capable of providing tailored advice to municipal entities and obligated persons on the entire P3 lifecycle. However, various reports[39] have identified that P3 Consultants have engaged in concerning behavior, including:

    • Failure by P3 Consultants to disclose conflicts of interest between the P3 Consultant and subcontractors hired to provide a VfM analysis, leading to the skewing of project costs in favor of a P3 procurement.
    • P3 Consultants with no experience in municipal financing, failing to include a public sector comparator as part of the VfM analysis and resultingly being unable to demonstrate that the procurement would be maximizing VfM.
    • P3 Consultants advising municipal entities or obligated persons that P3s that only used private debt and equity funding sources would be considered an “off-balance sheet” financing, despite the fact that projects procured with a mix of public and private funding sources would, under accounting standards be required to be includable on the municipal entities balance sheet.[40]

    Soliciting a P3 Consultant

    In staff’s review of P3s in the municipal securities market, one of the first questions that we asked ourselves is how does the process get started – how does a municipal entity or obligated person connect with a P3 Consultant and does that raise any regulatory issues?

    Municipal entities and obligated persons often solicit a P3 Consultant through a competitive request for proposal/qualification (“RFP/Q”) process, where the municipal entity or obligated person has defined the infrastructure project scope; completed a preliminary VfM, or other process, which compares[41] the costs and benefits of a P3 or other non-traditional procurement method against a traditional procurement method; defined requirements related to construction, operation, and management of the project; and assessed potential financing arrangements. But P3 Consultants may also approach the municipal entity (or obligated person) through an Unsolicited Proposal (“USP”) process.[42]

    So, how does the RFP/Q process tie back to our municipal advisor regulatory framework?

    Well, responses to requests for RFP/Qs alone do not constitute municipal advisory activity.[43] Persons providing a response in writing or orally to a RFP/Q from a municipal entity or obligated person for services in connection with a municipal financial product or the issuance of municipal securities is exempt from the definition of municipal advisor provided that such person does not receive separate direct or indirect compensation for advice provided as part of such response.[44] However, Unsolicited Proposals that broadly seek input on any infrastructure project may not be a process that is consistent with the RFP exemption to the municipal advisor definition.[45]

    We have previously spoken about the parameters and level of formality of the RFP/Q process that would be needed to qualify for the RFP exemption.[46] Staff is of the view that the USP process would need to meet the same standards to qualify any responses for the exemption. Municipal entities, obligated persons, or registered municipal advisors acting on their behalf, should apply a similar degree of formality by identifying a particular objective for the USP process. Otherwise, any person responding to a USP would need to consider if the substance of their proposal requires registration as a municipal advisor.

    We have seen instances where P3 Consultants are originating an infrastructure project by identifying public asset gaps, proposing project design recommendations, providing project affordability analyses, and/or discussing the viability of a public infrastructure project in general terms. Without including material specifically tailored to the needs, objectives, or circumstances of the municipal entity or obligated person, this may not rise to the level of municipal advisory activity. However, some Unsolicited Proposals have included subjective qualitative and quantitative criteria specially tailored to the municipal entity or obligated person that includes descriptions of proposed business arrangements (i.e., ground lease, management agreements); market studies that support revenue assumptions and financial, economic and social benefits; advice with respect to sizing and structuring of the financing package, which may include consideration or use of municipal securities or municipal financial products; and models allocating risk transfer between the public and private entity. P3 Consultants should be aware that, depending on the facts and circumstances, such submissions could constitute municipal advisory activity.

    Regardless of whether a P3 Consultant has been retained through an RFP/Q process or through a USP process, our overarching observation has been that municipal entities and obligated persons seem to rely heavily on the content of the proposals – and the implied expertise – of the P3 Consultant.

    The Role of the P3 Consultant

    What services do P3 Consultants provide? Well, services run the whole gamut.

    We have observed instances where the P3 Consultant analyzes and makes recommendations on the most cost effective and appropriate financing package for the delivery of the project, including:

    • Considering various financing alternatives to raise the necessary capital, which may include, without limitation: federal, state, or local funding, including the use of municipal financial products or the issuance of municipal securities; equity and lender commitments; and/or special facility financing; and
    • Assisting with the sizing and structuring of the financing package, which may include consideration or use of municipal securities or municipal financial products and participating in the preparation of disclosure documents.

    P3 Consultants should be aware that considering various financing alternatives and assisting with the sizing and structuring could constitute municipal advisory activity.

    We have seen P3 Consultants be asked to independently, or in collaboration with the staff of the municipal entity or obligated person and other advisors, draft RFP/Qs for the solicitation of financial and/or technical private sector project delivery partners (“Private Sector Partners”). Assisting a municipal entity or obligated person with drafting – or simply drafting – an RFP/Q is municipal advisory activity requiring registration with the Commission, absent an available exclusion or exemption, because the P3 Consultant (or any other entity) could be providing advice with respect to the parameters of such RFP/Q which includes the issuance of municipal securities or the use of municipal financial products.[47]

    Takeaways

    The SEC’s mission is to protect investors, maintain fair, orderly, and efficient markets, and facilitate capital formation. The Office of Municipal Securities remains dedicated to providing information to the municipal securities market to help persons and entities active in the market comply with the important safeguards that were put in place after the last financial crisis by Congress. The Exchange Act makes it unlawful for any municipal advisor to provide advice to or on behalf of, or to undertake a solicitation of, a municipal entity or obligated person without registering with the Commission.[48]

    As you continue your partnerships to help meet the nation’s infrastructure needs, I would like you to remember that addressing the risks that unregistered municipal advisory activity pose to municipal entities and obligated persons is a challenge that requires a whole municipal securities market approach.

    P3 Consultants and Private Sector Partners who advise municipal entities or obligated persons on the issuance of municipal securities, the use of municipal financial products, and/or the use of debt financing alternatives that are tailored to the specific needs, objectives, or circumstances of the municipal entity during any stage of the P3 lifecycle should remember that they may be engaging in municipal advisory activity requiring registration as a municipal advisor with the Commission and the MSRB. The relevant timeline for advice to obligated persons is slightly different but still includes advice prior to the issuance of municipal securities until they are no longer outstanding.[49]

    For other market participants, engaging persons acting as unregistered municipal advisors may have far-reaching consequences for themselves and others,[50] including eroding public trust, significant financial losses and inefficiencies, and undermining the legitimacy of the P3 process.

    More information about the Commission’s regulation of municipal advisors is available at the Office of Municipal Securities website.[51] The MSRB also provides educational material on various topics related to municipal advisors at its Education Center website that may be helpful to municipal entities, obligated persons, P3 Consultants, and Private Sector Partners and any other market participant seeking additional information.[52]

    Thank you again to The Bond Buyer for the invitation to address you today. I look forward to working with all of you toward our shared goal of regulatory compliance in furtherance of protecting the integrity of the municipal securities market.

    [3]           See Exchange Act Section 15B(e)(8) [15 U.S.C. 78o-4(e)(8)] defining “municipal entity.”

    [4]           See Exchange Act Section 15B(e)(10) [15 U.S.C. 78o-4(e)(10)] defining “obligated person.”

    [5]           See Municipal Advisor Adopting Release 78 FR at 67472.

    [6]           Id. at 67475.

    [7]           Id. at 67475 n.102 (citing S. Rep. No. 111-176, at 38 (2010)).

    [8]           Id. at 67475 n. 104 and accompanying text.

    [9]           Id. at 67475 nn. 105-106 and accompanying text.  

    [10]         Id. at 67626.

    [11]         See Section 975(a)(1)(B) of the Dodd-Frank Act [15 U.S.C. 78o-4(a)(1)(B)].

    [12]         See Exchange Act Section 15B(e)(4)(A) [15 U.S.C. 78o-4(e)(4)(A)]. The definition of municipal advisor includes financial advisors, guaranteed investment contract brokers, third-party marketers, placement agents, solicitors, finders, and swap advisors that provide municipal advisory services, unless they are statutorily excluded. See 15 U.S.C. 78o-4(e)(4)(B). The statutory definition of municipal advisor excludes a broker, dealer, or municipal securities dealer serving as an underwriter (as defined in section 77b(a)(11) of this title), any investment adviser registered under the Investment Advisers Act of 1940 [15 U.S.C. 80b-1 et seq.], or persons associated with such investment advisers who are providing investment advice, any commodity trading advisor registered under the Commodity Exchange Act or persons associated with a commodity trading advisor who are providing advice related to swaps, attorneys offering legal advice or providing services that are of a traditional legal nature, or engineers providing engineering advice. See 15 U.S.C. 78o-4(e)(4)(C). The Commission exempts the following persons from the definition of municipal advisor to the extent they are engaging in the specified activities: accountants; public officials and employees; banks; responses to requests for proposals or qualifications; swap dealers; participation by an independent registered municipal advisor; persons that provide advice on certain investment strategies; certain solicitations. See Exchange Act Rule 15Ba1-1(d)(3)(i) through (viii) [17 CFR 240.15Ba1-1(d)(3)(i) through (viii)].

    [13]         Municipal Advisor Adopting Release, 78 FR at 67479.

    [14]         Id.

    [15]         Id. at 67480. See also Exchange Act Rule 15Ba1-1(d)(1)(ii) [17 CFR 240.15Ba1-1(d)(1)(ii)] (advice excludes, among other things, the provision of general information that does not involve a recommendation regarding municipal financial products or the issuance of municipal securities (including with respect to the structure, timing, terms and other similar matters concerning such financial products or issues)).

    [16]         See Exchange Act Rule 15Ba1-1(d)(1)(ii) [17 CFR 240.15Ba1-1(d)(1)(ii)]. See also Municipal Advisor Adopting Release, 78 FR at 67479-67480 (Commission providing clarifying guidance regarding “advice” only with respect to municipal advisors and solely for purposes of the municipal advisor definition).

    [17]         See Municipal Advisor Adopting Release, 78 FR at 67480. See generally Answer to Question 1.1 The General Information Exclusion from Advice versus Recommendation from the Registration of Municipal Advisors Frequently Asked Questions (“MA FAQ”), available at https://www.sec.gov/info/municipal/mun-advisors-faqs.

    [18]         See 15 U.S.C. 78o–4(c)(1).

    [19]         See, e.g., Arthurs Lestrange & Co., Inc., Exchange Act Release No. 42148, 1999 WL 1038053 at * 4 (Nov. 17, 1999) (financial advisor also a fiduciary under Pennsylvania state law).

    [20]         See MSRB Rules G-17 (fair dealing) and G-42(a)(i) (duty of care).

    [21]         See Exchange Act Rule 15Ba1-1(e) [17 CFR 240.15Ba1-1(e)].

    [22]         See Municipal Advisor Adopting Release, 78 FR at 67472.

    [23]         Municipal Advisor Adopting Release, 78 FR at 67480 and accompanying note 165 (citing FINRA Notice to Members 01-23 (Mar. 19, 2001), and Notice of Filing of Proposed Rule Change to Adopt FINRA Rules 2090 (Know Your Customer) and 2111 (Suitability) in the Consolidated FINRA Rulebook, Exchange Act Release No. 62718A (Aug. 20, 2010), 75 FR 52562 (Aug. 26, 2010); FINRA Regulatory Notice 11-02 (Know Your Customer and Suitability), Jan. 11, 2011, available at https://www.finra.org/sites/default/files/NoticeDocument/p122778.pdf).

    [24]         See 15 U.S.C. 78o-4(a)(1)(B).

    [26]         While the federal government contributes with funding, states and local governments carry most of the burden for maintaining and building infrastructure. See generally U.S. Dep’t of the Treasury, Infrastructure Investment in the United States (Nov. 15, 2023), available at https://home.treasury.gov/news/featured-stories/infrastructure-investment-in-the-united-states; American Society of Civil Engineers, Failure to Act, Economic Impacts of Status Quo Investment Across Infrastructure Investment Across Infrastructure Systems (2021), available at https://infrastructurereportcard.org/wp-content/uploads/2021/03/FTA_Econ_Impacts_Status_Quo.pdf and Bridging the Gap, Economic Impacts of National Infrastructure Investment, 2024-2043 (2024), available at https://bridgingthegap.infrastructurereportcard.org/wp-content/uploads/2024/05/2024-Bridging-the-Gap-Economic-Study.pdf.

    [27]         The Infrastructure Investment and Jobs Act (“IIJA”) and the Inflation Reduction Act (“IRA”) make funding available for an array of projects. See Infrastructure Investment and Jobs Act, Pub. L. 117-58 (2021) and the Inflation Reduction Act of 2022, Pub. L. 117-169 (2022).

    [28]         In terms of private sector involvement in infrastructure development, the IIJA, for instance, provides planning grants for jurisdictions seeking to utilize P3 project procurement, requires projects with an estimated total cost of $750 million or more seeking either Transportation Infrastructure Finance and Innovation Act (“TIFIA”) or Railroad Rehabilitation and Improvement Financing (“RRIF”) funding to conduct a value-for-money (“VfM”) analysis, and increased the federal cap on tax-exempt private activity bonds (“PABs”) for highway or surface freight transfer facilities. See e.g., IIJA §§ 71001; 70701; 80403 [23 U.S.C. 611; 23 U.S.C. 601; 26 U.S.C. 142(m)(2)(A)].

    [29]         See John Forrer, James Edwin Kee, Kathryn E. Newcomer and Eric Boyer, Public Administration Review, Public-Private Partnerships and the Public Accountability Question (May/June 2010), 475-484, available at https://www.jstor.org/stable/pdf/40606405.pdf.

    [31]         See, e.g., N.J. Senate Bill No. 3565 (introduced Feb. 9, 2023) (proposed establishment of the Energy Infrastructure Public-Private Partnership Program); Colo. Senate Bill No. 23-035 (June 2, 2023) (CO housing authority has power to contract with private entities to facilitate P3s for affordable housing projects); Md. Prince George’s County Public Schools, First-of-Its-Kind Public-Private Partnership Delivers New Schools for 8K+ Students (Sept. 18, 2023), available at https://www.pgcps.org/offices/communications-and-community-engagement/newsroom/news/newsroom-archives/2023-2024/news-release-first-of-its-kind-public-private-partnership-delivers-new-schools-for-8k-students; Brenton Foundation and Coalition for Local Internet Choice, The Emerging World of Broadband Public-Private Partnerships: A Business Strategy and Legal Guide (May 2017), available at https://www.benton.org/sites/default/files/partnerships_0.pdf; National Science and Technology Council, National Artificial Intelligence Research and Development Strategic Plan May 2023, available at https://www.whitehouse.gov/wp-content/uploads/2023/05/National-Artificial-Intelligence-Research-and-Development-Strategic-Plan-2023-Update.pdf.

    [32]         In 1999, the U.S. General Accounting Office issued a glossary of the most commonly used terms in P3s to facilitate a better understanding of the terms as they are used. See U.S. General Accounting Office, Public-Private Partnerships, Terms Related to Building and Facility Partnerships (Apr. 1999), available at https://www.gao.gov/assets/ggd-99-71.pdf.

    [35]         See, e.g., Dominique Custos & John Reitz, Public-Private Partnerships, 58 Am. J. Comp. L. 555 (2010); NCSL Report; DOT Primer.

    [36]         See generally DOT Primer; DOT Guidebook on Financing.

    [37]         See, e.g., Denver International Airport, Great Hall After-Action Report (Aug. 9, 2022), https://www.flydenver.com/app/uploads/2024/06/greathall_AfterActionReport-2.pdf; Office of the Inspector General, City of Chicago, Report of Inspector General’s Findings and Recommendations: An Analysis of the Lease of the City’s Parking Meters (June 2, 2009), https://igchicago.org/wp-content/uploads/2011/03/Parking-Meter-Report.pdf; State of Texas, State Auditor’s Office, Audit Report on The Department of Transportation and the Trans-Texas Corridor, Report No. 07-015 (Feb. 2007), available at https://sao.texas.gov/reports/main/07-015.pdf.

    [38]         See generally supra note 37. See also Denver International Airport (Great Hall Project), City and County of Denver Auditor, Audit Report Denver International Airport Great Hall Construction (Apr. 20, 2023), available at https://www.flydenver.com/app/uploads/2023/09/greathallconstruction_Auditapril2023-1.pdf; Kevin DeGood, American Progress, When Public-Private Partnerships Fail: A Look at Southern Indiana’s I-69 Project (Feb. 15, 2018), available at https://www.americanprogress.org/article/public-private-partnerships-fail-look-southern-indianas-69-project/; Hearing, California Senate Transportation and Housing Committee, Tolls, User Fees, and Public-Private Partnerships: The Future of Transportation Finance in California? (Jan. 17, 2007), available at https://archive.senate.ca.gov/sites/archive.senate.ca.gov/files/committees/2015-16/stran.senate.ca.gov/sites/stran.senate.ca.gov/files/01-17-07Background.doc; Texas State Auditor’s Office, An Audit Report on The Department of Transportation’s Purchase of the Camino Colombia Toll Road (June 2, 2006), available at https://sao.texas.gov/reports/main/06-041.pdf. Concerns regarding P3s have been raised outside of the United States as well. See, e.g., Office of the Auditor General of Ontario, Annual Report 2014, available at https://www.auditor.on.ca/en/content/annualreports/arreports/en14/2014AR_en_web.pdf; Canadian Centre for Policy Alternatives | Nova Scotia, Many Dangers of Public-Private Partnerships (P3s) in Newfoundland and Labrador (Sept. 2020), available at https://policyalternatives.ca/sites/default/files/uploads/publications/Nova%20Scotia%20Office/2020/10/HiddendangersofP3s.pdf.

    [39]         See generally supra notes 37 and 38.

    [42]         A USP process refers to a proposal submitted by an offeror (often a P3 Consultant but can be any private entity) for a P3 project that is not in response to any RFP/Q issued by a municipal entity, obligated person, or municipal advisor on their behalf.

    [43]         See Municipal Advisor Adopting Release, 78 FR at 67509.

    [44]         See Exchange Act Rule 15Ba1–1(d)(3)(iv) [17 CFR 240.15Ba1-1(d)(3)(iv)]. See also Municipal Advisor Adopting Release for a discussion on the RFP exemption. Municipal Advisor Adopting Release, 78 FR at 67508-67509.

    [45]         See generally Answer to Question 2.1 of the MA FAQ.

    [46]         Id.

    [47]         See Municipal Advisor Adopting Release, 78 FR at 67509.

    [48]         See Exchange Act Section 15B(a)(1)(B) [15 U.S.C. 78o-4(a)(1)(B)].

    MIL OSI USA News –

  • MIL-OSI USA: BREAKING: Issa Reveals State Department Scandal

    Source: United States House of Representatives – Congressman Darrell Issa (CA-50)

    WASHINGTON – Congressman Darrell Issa (CA-48), senior member of the House Foreign Affairs Committee, this week revealed the Biden-Harris State Department financed a workshop where migrants were coached to lie to U.S. immigration officials so they could enter the country illegally.

    “We have brought to light how the State Department financed a program that taught illegal migrants to lie their way into America. They then covered up so as not to be discovered, and then lied to the Foreign Affairs Committee when we found out about it,” said Rep. Issa. “This scandal is just the latest reveal of a State Department that is out of control and desperately in need of wholesale reform and completely new management.”

    This story and supporting documentation are featured in a breaking Fox News exclusive from today.
     
    Watch Issa’s questioning here.

    MIL OSI USA News –

  • MIL-OSI USA: Quigley Announces More Than $200 Million in Federal Funding for Chicago Transportation

    Source: United States House of Representatives – Representative Mike Quigley (IL-05)

    CHICAGO, IL – Today, U.S. Representative Mike Quigley (IL-05), Ranking Member of the Transportation, Housing and Urban Development Appropriations Subcommittee, announced over $200 million in federal funding through the U.S. Department of Transportation (DOT) Mega Program. With this federal funding, the Illinois Department of Transportation will receive $209,877,984 for the Chicago Region Environmental and Transportation Efficiency (CREATE) Program, aimed at reducing traffic delays, increasing rail junction safety, and improving mobility throughout Chicago. DOT’s Mega Grant Program provides federal funding for large projects of regional significance and is funded through the Infrastructure Investment and Jobs Act.


    “This funding announcement is critical to helping CREATE in their mission to improve rail operations in Chicago for both passengers and freight. As the Ranking Member of the Transportation, Housing and Urban Development Appropriations Subcommittee, I have an in-depth understanding of the needs facing our freight, commuter, and intercity passenger rail,” said Quigley. “Luckily, the CREATE Program has stepped up to the task and broken ground on numerous rail improvement projects throughout the region. In May, I visited their Forest Hill Flyover site, where I witnessed firsthand the efficiency and safety improvements CREATE is making. From adjacent neighborhoods to the nation’s supply chain, I know that the benefits of this funding will extend far beyond Chicago’s city limits.”

    The CREATE Program brings together the City of Chicago, the State of Illinois, the U.S. Department of Transportation, Metra, Amtrak, and the nation’s freight railroads in a partnership to eliminate transit bottlenecks, boost the economy, and improve overall safety of the Chicagoland area. Today’s announced funding will advance the 75th Street Corridor Improvement Project, a three-mile elevated rail corridor on Chicago’s South Side, which approximately 90 freight trains and 30 Metra commuter trains use daily. In 2018, Quigley worked to secure $132 million through the Infrastructure for Rebuilding America (INFRA) grant program to help get the project off the ground. The project will reconfigure track segments and signals at Belt Junction, add a third track to the Norfolk Southern line, replace and restore 14 aging bridge and viaduct structures, and implement mobility improvements on surface streets throughout the corridor. In addition to the creation of the 75th Street Flyover, the 75th Street Corridor Project includes the 71st Street Grade Separation, Belt Junction and 80th Street Junction Replacements, and Rock Island Connection projects.

    MIL OSI USA News –

  • MIL-OSI USA: Wyden, Merkley Announce $200,000 Federal Award for Farmers Conservation Alliance in Central Oregon

    US Senate News:

    Source: United States Senator Ron Wyden (D-Ore)

    September 20, 2024

    Washington D.C.— U.S. Senators Ron Wyden and Jeff Merkley today announced the Farmers Conservation Alliance in Bend has earned a $200,000 Energizing Rural Communities award from the U.S. Department of Energy.  

    “In my meetings and town halls throughout Oregon, I hear regularly from farmers and ranchers about the negative impacts the climate crisis is wreaking on their land and crops,” Wyden said. “Organizations like Farmers Conservation Alliance that work to optimize irrigation and energy resources are crucial to help our farmers continue to produce the fresh, local bounty we enjoy here in Oregon.”   

    “Climate chaos continues to make the West hotter and dryer, depleting water resources for people, farms, and wildlife,” said Merkley. “This federal funding is great news for the Farmers Conservation Alliance in Bend to modernize irrigation systems. I will keep fighting to make sure our water systems are sustainable, reliable, and climate smart.” 

    “Farmers Conservation Alliance works with rural communities to improve their water and energy infrastructure,” said Julie Davis O’Shea, Executive Director, Farmers Conservation Alliance. “The recognition and financial support from the Department of Energy’s Energizing Rural Communities Prize supports our continued ability to build energy resiliency in some of the nation’s most underserved communities.”

    MIL OSI USA News –

  • MIL-OSI USA: Wyden, Merkley Announce Federal Investment in Manufacturing Equipment for Columbia Gorge Community College

    US Senate News:

    Source: United States Senator Ron Wyden (D-Ore)

    September 20, 2024

    Washington D.C.— U.S. Senators Ron Wyden and Jeff Merkley today announced a nearly $300,000 federal investment for Columbia Gorge Community College to add manufacturing equipment to its Advanced Manufacturing and Technology program. 

    “In my nearly 1,100 town halls throughout Oregon, I hear regularly about the need for local workforce development and creating avenues of success for young Oregonians,” Wyden said. “I’m gratified this federal investment in the Gorge combines both those objectives by giving Oregon’s future workforce and entrepreneurs the practical tools they need to help them blaze their own trails.” 

    “If we don’t make things in America, we won’t have a middle class in America, and when Oregon’s manufacturing industry does well, all Oregonians benefit,” said Merkley, who secured funding for this community-initiated project as a senior member of the Senate Appropriations Committee. “This Columbia Gorge Community College program helps set a path for young Oregonians to reach high-paying careers in manufacturing—opportunities they may not see in the traditional classroom setting. This is the exact kind of project that Senator Wyden and I are pushing to fund, and we’ll keep pushing to ensure CGCC has the necessary equipment to support its programs.” 

    This funding from the National Institute of Standards and Technology  will allow the community college to add milling and additive manufacturing equipment into its Columbia Gorge Regional Skills Center, aligning student training with the needs of the industry while fostering small business growth by providing public access to the equipment.

    “The Columbia Gorge Regional Skills Center is an exemplification of Columbia Gorge Community College’s (CGCC) commitment to fostering inclusive prosperity in our region through education and innovation,” said Dr. Kenneth Lawson, Columbia Gorge Community College President. “By providing access to state-of-the-art 3D printing, CNC milling, and welding equipment, we are empowering students, local, and statewide small and medium businesses alike to transform their ideas into tangible products. This initiative aligns perfectly with CGCC’s mission to ensure that everyone in our community has the opportunity to succeed. We are incredibly grateful for Senator Ron Wyden’s and Senator Jeff Merkley’s unwavering support in again securing this vital grant from NIST, which enables us to continue offering these invaluable resources and programs.” 

    “The impact of the Regional Skills Center extends far beyond the classroom, driving economic growth by supporting local entrepreneurs and small businesses,” said Robert Wells-Clark, Lead Instructor of Advanced Manufacturing & Fabrication at Columbia Gorge Community College. “Our ‘Community Fridays’ initiative shows how CGCC is bridging the gap between great ideas and their realization, providing access to essential tools and guidance at minimal cost. This approach not only democratizes access to advanced manufacturing technology but also strengthens our regional economy by fostering innovation right here at home. We deeply appreciate Senators Wyden’s and Merkley’s assistance in securing this grant, which allows us to continue this important work and further enhance the skills and capabilities of our community.”

    MIL OSI USA News –

  • MIL-OSI USA: Governor Polis Celebrates the Launch of Colorado State Park History Book, Visits Small Business to Celebrate Colorado’s Hispanic Community

    Source: US State of Colorado

    AURORA – Today, Governor Polis, Department of Natural Resources Executive Director Dan Gibbs, and Colorado Parks and Wildlife Executive Director Jeff Davis celebrated the launch of At Home in Nature: The History of Colorado State Parks, the first of its kind compilation of over 65 years of Colorado State Parks history.

    “Colorado is home to the most beautiful parks in the country, and what better way to show them off than with a bound collection of our parks’ history. In Colorado, we are breaking down barriers for Coloradans to access the outdoors, from saving people money on park passes to protecting our incredible wildlife. Colorado is leading the way to continue and expand our great state parks for generations to come, and this book will help bring our parks to even more people,” said Governor Polis.

    “For more than 125 years, Colorado Parks and Wildlife has served Coloradans and our natural resources with unwavering dedication and determination. This book is a testament to Colorado’s incredible state park system and the people who serve as stewards to protect our public land and elevate our state parks so they provide enjoyable and sustainable outdoor recreation opportunities that educate and inspire current and future generations,” said CPW Director Jeff Davis.

    Colorado is home to 43 state parks that span over 220,000 acres of protected land. Colorado state parks generate over $65 billion in state funds because of outdoor recreation and Colorado’s thriving tourist economy.

    In 2021, Governor Polis signed legislation creating the Keep Colorado Wild Pass, which reduced Colorado’s state parks pass to just $29, breaking down barriers to the outdoors. The pass became available on January 3, 2023. In its first full year of being on sale, $1.5 million Coloradans opted to buy a Keep Colorado Wild Pass, generating $39.7 million to support Colorado state parks and outdoor first responders. Coloradans who qualify can also sign up for the Centennial State Park Pass, which costs just $14. Governor Polis also signed legislation creating the Outdoor Equity Grant Fund, which has provided 106 awards and over $5.5 million to organizations that help more Coloradans and Colorado kids access the state’s great outdoors.  

    Governor Polis also visited La Fogata, a local Mexican restaurant, to celebrate Hispanic Heritage Month and highlight Colorado’s vibrant Hispanic community and businesses. La Fogata opened its first location in 1990, and will now be celebrating 20 years at their second location in November. La Fogata has been serving Mexican food in Southeast Denver for 30 years.

    “Today I am excited to continue celebrating Hispanic Heritage Month at La Fogata. La Fogata is a story of entrepreneurship and hardwork, and here in Colorado we are proud to support small businesses and highlight the hardworking Coloradans who drive our economy and support our communities,” said Governor Polis.

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    MIL OSI USA News –

  • MIL-OSI China: Chinese premier meets with Malaysia’s king

    Source: People’s Republic of China – State Council News

    Chinese Premier Li Qiang meets with Malaysia’s King Sultan Ibrahim Sultan Iskandar, who is on a state visit to China, at the Great Hall of the People in Beijing, capital of China, Sept. 20, 2024. [Photo/Xinhua]

    BEIJING, Sept. 20 — Chinese Premier Li Qiang met with Malaysia’s King Sultan Ibrahim Sultan Iskandar, who is on a state visit to China, in Beijing on Friday.

    Li noted that China and Malaysia have a solid foundation of mutual trust and deep-rooted friendship. At present, the two countries stand at the historical juncture of the 50th anniversary of their establishment of diplomatic relations, marching forward hand in hand toward the goal of building a China-Malaysia community with a shared future.

    China is willing to work with Malaysia to implement the important consensus reached by the leaders of the two countries, maintain close and high-level exchanges, promote their traditional friendship, enhance strategic mutual trust, expand mutually beneficial cooperation, achieve more practical results, and bring more benefits to the people of both countries, Li said.

    China is also ready to work with Malaysia to enhance development strategy synergy, promote the upgrading of economic and trade cooperation, upgrade the level of connectivity, and create greater unity to promote development, Li said.

    He urged the two sides to give full play to their complementary advantages, continue expanding bilateral trade, steadily advance flagship projects such as the East Coast Rail Link, and deepen cooperation on infrastructure and aerospace. He also called on both countries to expand cooperation in emerging fields such as artificial intelligence, the digital economy and new energy, promote the integrated development of industries, and maintain the stability and smooth flows of industrial and supply chains.

    China supports more competent Chinese enterprises to invest in Malaysia, Li noted, adding that the two sides should do more to boost cultural and people-to-people exchange in the fields of youth, education, culture and tourism, facilitate the exchange of personnel, and continuously enhance mutual understanding and friendship.

    China is willing to work with Malaysia and other Asian countries to uphold the central position of the Association of Southeast Asian Nations (ASEAN) in regional cooperation, promote regional economic integration, and build an Asia that has common prosperity and is peaceful, open and inclusive, Li said.

    For his part, King Sultan Ibrahim said that Malaysia thinks highly of and actively participates in Belt and Road cooperation, is optimistic about the development opportunities brought about by China’s big market, and looks forward to using the 50th anniversary of the establishment of diplomatic ties between the two countries as an opportunity to enhance cultural exchange and strengthen bilateral cooperation in such fields as the economy, trade, industry, investment, high technologies, agriculture and education.

    Malaysia has a high appreciation for the constructive role China plays in international and regional affairs, and is willing to make efforts to promote the development of the ASEAN-China comprehensive strategic partnership. Malaysia is also willing to strengthen constructive dialogue with China to make the South China Sea a sea of peace, friendship and cooperation, he added.

    Chinese Premier Li Qiang meets with Malaysia’s King Sultan Ibrahim Sultan Iskandar, who is on a state visit to China, at the Great Hall of the People in Beijing, capital of China, Sept. 20, 2024. [Photo/Xinhua]

    MIL OSI China News –

  • MIL-OSI USA: Congressman Dan Goldman, Senator Chuck Schumer, Senator Kirsten Gillibrand Announce $164 Million Grant to Revitalize the Brooklyn Marine Terminal

    Source: United States House of Representatives – Congressman Dan Goldman (NY-10)

    Award Follows Advocacy Led by Goldman and Supported by Coalition of Elected Officials Representing the Brooklyn Marine Terminal

    Goldman Serves as Chair of the Brooklyn Marine Terminal Task Force

    Read the Coalition’s Letter of Support Here

    Brooklyn, NY – Congressman Dan Goldman (NY-10) today announced that he and a coalition of elected officials secured a $163,800,000 Mega Grant award from the United States Department of Transportation (DOT), which will be used by the City of New York to revitalize the Brooklyn Marine Terminal (BMT).

    As Chair of the Brooklyn Marine Terminal Task Force, Congressman Goldman led a letter of support for the grant award, joined by U.S. Senate Majority Leader Chuck Schumer (D-NY), U.S. Senator Kirsten Gillibrand (D-NY), New York State Senator Andrew Gounardes, New York State Assemblymember Marcela Mitaynes, New York State Assemblymember Charles Fall, New York State Assemblymember Jo Anne Simon, Brooklyn Borough President Antonio Reynoso, New York City Councilmember Alexa Avilés, and New York City Councilmember Shahana Hanif to the U.S. DOT.

    Upgrades and repairs to the Brooklyn Marine Terminal, which hosts an active container terminal and cruise terminal, would ensure the future viability of the working waterfront in the New York-New Jersey Harbor. Once complete, the modernization of the BMT will create quality jobs and reduce truck trips while serving as a global model for modern shipping utilizing low-emission, last-mile freight movement, community hiring, and neighborhood engagement.

    Congressman Goldman – alongside State Senator Andrew Gounardes and Councilmember Alexa Avilés – founded the Brooklyn Marine Terminal Task Force to ensure that the revitalization of the BMT was grounded in community engagement. The BMT Task Force will ensure that every neighborhood is represented throughout this process and will center the needs and concerns of community members while developing the future of the BMT. 

    “I am delighted that we have secured $163,800,000 in funding for the vital redevelopment of the Brooklyn waterfront,” Congressman Dan Goldman said. “This incredible investment in our Red Hook community will be transformative. While the Brooklyn Marine Terminal had been mired in decades of inertia, we have entered a new era with this long overdue federal funding. This infusion will allow our city to fully enhance the economic growth and health of the Brooklyn Marine Terminal, while taking into account the public health and climate goals of surrounding communities. The future is here – and it’s looking bright for Brooklyn.”

    U.S. Senate Majority Leader Chuck Schumer said, “After years of advocating for the revitalization of Brooklyn’s waterfront, including preservation of existing freight operations and addition of new manufacturing and assemblage of wind power infrastructure, not to mention bike lanes and parks, I’m proud to deliver this MEGA grant win with my congressional partners, Rep. Dan Goldman and Sen. Kirsten Gillibrand. $163.8 million for New York City’s Brooklyn Marine Terminal modernization project is made possible by the Bipartisan Infrastructure & Jobs Law I led to passage. The rehabilitation and rebuilding of the Brooklyn Marine Terminal is the next step in reimagining and revitalizing the Brooklyn waterfront. The project will boost the economy and create good-paying jobs for those in adjacent communities, including Red Hook, Sunset Park and Gowanus, and add upgraded and safer bike and walking lanes to boot.”

    U.S. Senator Kirsten Gillibrand said, “I am proud to announce that your federal New York representatives have delivered more than $160 million to revitalize the Brooklyn Marine Terminal (BMT). This MEGA federal grant will fund one of the city’s top priorities – turning BMT into a premier model for modern, global maritime use. This funding will create jobs in New York City, optimize low-emission technology to improve air quality in Red Hook and surrounding communities, and reduce truck traffic in the city. Democrats delivered on this important project that will bring new life to historically disadvantaged communities and ensure NYC’s green economy continues to prosper.” 

    New York City Mayor Eric Adams said, “New York City has a once-in-a-generation opportunity to reimagine the 122 acres of the Brooklyn Marine Terminal, and this funding unlocks unlimited potential for this underutilized waterfront. Thanks to the Biden-Harris administration and our partners in Congress for issuing this grant as we set our sights on the future of the Brooklyn Marine Terminal. We’re excited to work with the local community, our fellow elected officials, and key stakeholders to deliver for Red Hook, for Brooklyn, and for our entire city.”

    New York State Senator Andrew Gounardes said, “By building a better Brooklyn Marine Terminal, we’re building a better future for Brooklyn and the whole region. This federal funding will help make up for years of disinvestment of the piers and allow us to invest in a modernized terminal that can sustainably handle freight deliveries, reduce emissions, expand economic opportunity and create new jobs. I’m thankful to Secretary Pete Buttigieg and the Biden Administration for awarding this crucial grant, and look forward to working with community partners to ensure we maximize its impact.”

    New York City Councilmember Alexa Avilés said, “The DOT’s Mega Grant will kick start critical work at the Brooklyn Marine Terminal, which will contribute to significant reductions in greenhouse gas emissions and modernization of our port infrastructure. I look forward to these funds being used to improve traffic flow in our community and toward getting trucks off of our roads, all while building livable wage jobs for the people of our community.”

    New York City Deputy Mayor for Housing, Economic Development, and Workforce Maria Torres-Springer said, “I am thrilled by today’s announcement and want to thank the entire New York delegation who supported this grant application, and particularly Representative Goldman for his leadership role on the Brooklyn Marine Terminal Task Force. With collaboration at every stage of government, including the tremendous investment from the federal government announced today, the City of New York is poised to reimagine the Brooklyn Marine Terminal as a resilient, low-emission modern maritime facility with sensible transportation that minimizes emissions and congestion and is integrated with additional public amenities that benefit the surrounding communities and city more broadly.”

    New York City Economic Development Corporation President and CEO Andrew Kimball said, “This is a historic investment for a generational project that will truly transform Brooklyn’s waterfront and deliver positive economic and environmental impacts across the region. An enormous amount of thanks to the Biden Administration and the U.S. Department of Transportation for recognizing the importance of the future of the Brooklyn Marine Terminal and the role it can play in bolstering our Blue Highways network throughout the five boroughs. I also want to thank our federal elected officials Senators Chuck Schumer and Kirsten Gillibrand, along with Congressman Dan Goldman who is leading our Brooklyn Marine Terminal Task Force for their efforts in advocating for this project.”

    In May, the New York City Economic Development Corporation (NYCEDC) announced that they would be taking over ownership of the Brooklyn Marine Terminal and initiating a community-led master planning and visioning process for the future of the Terminal. Congressman Dan Goldman was tapped to serve as Chair of the Task Force and Senator Andrew Gounardes and Councilmember Alexa Avilés were tapped to serve as Vice Chairs. The Brooklyn Marine Terminal Task Force has oversight over NYCEDC’s master planning process.

    The Mega Grant award included three components: (1) Rehabilitate Pier 10, (2) Demolish Piers 9A and 9B and construct a new Pier 9, and (3) improve traffic and circulation on the BMT campus for pedestrians, cyclists, and motorists. The funding will be released in two waves. $3.8 million will be released to New York City in Fiscal Year 2025 and the other $160 million will be released in Fiscal Year 2026.

    The U.S. Department of Transportation’s Mega Grant program supports large, complex projects that are difficult to fund by other means and likely to generate national or regional economic, mobility, or safety benefits.

    Congressman Dan Goldman has worked tirelessly to modernize the Brooklyn Marine Terminal and support the Red Hook Community.

    Congressman Dan Goldman serves as Chair of the Brooklyn Marine Terminal Task Force alongside Vice Chairs Senator Andrew Gounardes and Councilmember Alexa Avilés.

    ###

    MIL OSI USA News –

  • MIL-OSI USA: Casey, Fetterman, Scanlon, Boyle, Evans Secure More than $217 Million for PhilaPort

    US Senate News:

    Source: United States Senator for Pennsylvania Bob Casey

    Funding will expand port to increase shipping capacity and efficiency

    Washington, D.C. – Today, U.S. Senators Bob Casey (D-PA) and John Fetterman (D-PA) and U.S. Representatives Mary Gay Scanlon (D-PA-5), Dwight Evans (D-PA-3), and Brendan Boyle (D-PA-2) announced the Philadelphia Regional Port Authority (PhilaPort) is receiving a total of $217,000,000 in funding to expand the operational capacity of the SouthPort terminal. The operational expansion will create a new space for ships and expand onloading and offloading capacity and efficiency. This award is from the National Infrastructure Project Assistance (MEGA) Program, which was created and funded by the Infrastructure Investment and Jobs Act (IIJA).

    “The infrastructure law is helping the port transport more goods, which will create good jobs in Southeastern Pennsylvania. This game-changing investment in PhilaPort will ensure that the port remains a critical force in the Nation’s supply chain and the Commonwealth’s economy.” said Senator Casey. “I will always fight to improve our shipping hubs to ensure that the Commonwealth’s waterways boost economic growth and create and sustain good jobs.”

    “I’m proud to see this $217 million funding coming to the SouthPort terminal. By expanding the terminal and increasing capacity, the Department of Transportation is investing in Pennsylvania as a leader in trade and infrastructure and supporting the communities that rely on these jobs every day. I thank the Biden-Harris Administration for their continued investment in Pennsylvania’s future,” said Senator Fetterman.  

    “The Port of Philadelphia is a critical driver of good-paying jobs for our regional economy. I’m so pleased to see this critical funding coming to our region to bring more cargo to the Port,” said Representative Scanlon.

    “This funding will improve Philadelphia port infrastructure and will allow greater efficiency in handling and transporting goods. Most of all, this funding will create jobs by increasing trade, and enhancing global competitiveness. Philadelphia ports must always be kept updated and modernized to remain competitive in both the regional and global supply chain economy,” said Congressman Boyle.

    “I was proud to vote for the Biden-Harris administration’s infrastructure and jobs law, and it’s again delivering for Philadelphia and the region with $217 million in federal funding – that is a major investment in our future!” said Congressman Evans.

    The $217,200,000 investment from the U.S. Department of Transportation (DOT) is made possible by the Infrastructure Investment and Jobs Act (IIJA). This funding will expand the port’s operational capacity by creating more space to for vessels to dock at the port and increasing on and offloading efficiencies. Specifically, this funding will support the construction of a second berth which will improve the port’s ability to on and offload goods from ships. Additionally, the funding will support infill construction, which will expand the port by approximately ten acres. This port expansion will ensure that the port can remain a competitive and efficient shipping hub.

    MIL OSI USA News –

  • MIL-OSI China: Conference held to mark 75th anniversary of diplomatic ties between China, Hungary

    Source: People’s Republic of China – State Council News

    Conference held to mark 75th anniversary of diplomatic ties between China, Hungary

    BUDAPEST, Sept. 20 — A special conference marking the 75th anniversary of the establishment of diplomatic relations between China and Hungary was held here on Friday.

    The event, organized by the Chinese Embassy in Hungary and the Hungarian-Chinese Friendship Association, featured high-level speakers, including Hungarian and Chinese officials.

    There were also panel discussions focusing on the history of bilateral cooperation, and prospects for the future.

    Chinese Ambassador to Hungary Gong Tao highlighted the two countries’ longstanding relationship.

    Looking ahead, Gong said that China is willing to further align the Belt and Road Initiative (BRI) with Hungary’s “Eastern Opening” policy.

    Janos Latorcai, deputy speaker of the Hungarian Parliament, spoke of Hungary’s early recognition of the People’s Republic of China, and the country’s involvement in the BRI.

    He also emphasized the role of civil society organizations, such as the Hungarian-Chinese Friendship Association, in fostering cross-cultural exchanges.

    Attila Hidegh, deputy state secretary for international cooperation of the Ministry of Foreign Affairs and Trade, said, “Despite the challenges posed by world politics and the global economy, our bilateral relations, based on traditional friendship and mutual respect, have undergone remarkable development.”

    On the sidelines of the conference, Judit Eva Nagy, president of the Hungarian-Chinese Friendship Association, told Xinhua that understanding between the two sides is better than before. “People become more interested in, and open to each other’s culture,” she noted.

    MIL OSI China News –

  • MIL-OSI USA: Murphy, Bonamici Introduce Bicameral Resolution Designating Malnutrition Awareness Week

    US Senate News:

    Source: United States Senator for Connecticut – Chris Murphy

    September 20, 2024

    WASHINGTON—U.S. Senator Chris Murphy (D-Conn.) and U.S. Representative Suzanne Bonamici (D-Ore.-1) on Friday introduced a resolution designating the week of September 16 through September 20, 2024, as “Malnutrition Awareness Week.” Food insecurity and malnutrition affect over 40 million Americans, disproportionately impacting older adults, children, and other vulnerable populations. In 2023, an estimated seven million American children lived in food-insecure households. Meanwhile, disease-associated malnutrition in older adults alone costs the United States more than $51.3 billion each year.
    The resolution recognizes registered dietitian nutritionists and other nutrition professionals, health care providers, social workers, and advocates for their efforts to advance awareness and prevent malnutrition. It also highlights the cyclical relationship between poverty and malnutrition and recognizes the disproportionate effect felt by communities of color. By raising awareness and promoting better access to nutritious foods and healthcare, this resolution seeks to support nationwide efforts to improve health outcomes.
    “Malnutrition is a public health crisis, and it disproportionately impacts communities of color and the most vulnerable amongst us—seniors, kids, and people with chronic illness. We must continue expanding access to affordable, healthy food through federal nutrition programs like the Older Americans Act, SNAP, and Meals on Wheels. I’m proud to introduce this resolution to bring awareness to this serious problem and recognize those working on frontlines to ensure every family can put nutritious food on the table,” said Murphy.
    “No one should go hungry because of financial distress,” said Bonamici. “Each year we recognize Malnutrition Awareness Week to draw attention to the many nutrition programs that are addressing food insecurity at all stages of life and to highlight what more can be done to finally end hunger. I’m committed to continuing to strengthen proven programs like Meals on Wheels, SNAP, and school nutrition programs.”

    MIL OSI USA News –

  • MIL-OSI China: Listen, confer, act: China’s political advisory body turns 75

    Source: China State Council Information Office 2

    There is some good news for farmers in Yinjiayuan, a village in Jiangsu Province, east China. The cost of watering their land has dropped by 20 percent, and pump malfunctions have significantly decreased — all thanks to a local political advisor.
    Shi Weidong is a member of the National Committee of the Chinese People’s Political Consultative Conference (CPPCC), the country’s political advisory body. As former president of Nantong University in Jiangsu, he is also an expert on fluid machinery.
    In 2023, Shi submitted a proposal through the CPPCC highlighting the advantages of using a digital twin platform — a virtual replica of physical systems — to improve the precision and efficiency of pump management. His suggestion resonated with a nationwide initiative to invest heavily in extensive water conservancy infrastructure. That year alone, the country began the construction of 23,000 water supply facilities in its rural areas.
    Shi’s proposal provides a glimpse into the important role of the CPPCC as an institutional platform for consultative democracy, an essential element of China’s political system, alongside electoral democracy. According to political scientists, these two complimentary facets of socialist democracy allow China to better pool wisdom and strengths for the overarching endeavor of modernization.
    Consultative democracy takes many forms in China. For example, the government listens to ideas and opinions from all sectors throughout the processes of planning, decision-making and administration. With the CPPCC celebrating an important anniversary this year, many will be reviewing its crucial role and growing list of accomplishments.
    Effective democracy
    The CPPCC plays vital roles in multiparty cooperation and political consultation under the leadership of the Communist Party of China (CPC). Its members are drawn from political parties, people’s organizations, personages without party affiliation and various sectors of society. Among the CPPCC’s diverse membership are political figures, celebrities and experts. Shi himself is a member of the Jiusan Society, a political party primarily composed of scientists and researchers.
    This year marks the 75th anniversary of the CPPCC. On Sept. 21, 1949, driven by great hopes for a bright future, more than 600 deputies from various sectors overcame obstacles to gather in Beijing.
    Decades later, the CPPCC has now transformed and improved itself to play a more effective role in state governance.
    One of its most notable recent developments is the addition of the environment and resource sector to the CPPCC National Committee in 2023. This is one of the biggest changes to the Committee’s composition in 30 years. The last such adjustment was the establishment of the economic sector in 1993.
    Over the past decade, China has undergone comprehensive changes in ecological and environmental protection. The country is making unprecedented efforts to conserve its ecology. The establishment of a new sector dedicated to this initiative would help pool efforts, facilitate research and promote consultation, said experts on the CPPCC.
    Moreover, the consultation topics have evolved over time to address emerging national challenges and public concerns.
    Zhang Yi, a national political advisor from Shanghai, has closely examined the ethical and judicial implications of algorithms.
    A partner at the law firm King & Wood Mallesons, Zhang represents the country’s new social groups.
    Zhang submitted a proposal in March on AI algorithms governance. He recently presented a report on social trends and public sentiment regarding privacy protection. “It’s great to see how my work as a political advisor turns into policies and measures that really push forward the development of the economy and society,” he said.
    Strengthening the foundations 
    The CPPCC is also improving its foundational elements — institutions, standards and procedures — to facilitate in-depth consultations.
    Earlier this month, municipal political advisors in Beijing met to discuss how the integration of AI and digital technologies could help the city respond to natural disasters and workplace accidents. It was one of 12 key topics highlighted by the municipal CPC committee and government to be included on the consultation and deliberation agenda this year.
    In the summer of 2023, Beijing experienced its heaviest rainfall in more than 140 years. This year, heavy rain and gales battered the city again, uprooting trees and causing chaos across the urban road network.
    Political advisors began their investigation and research in March. It included 14 collective and group studies, 13 discussions, as well as fact-finding trips to Fujian and Guangdong provinces, which were attended by non-CPC political party members, scholars and experts.
    A vice mayor overseeing city administration, traffic, agriculture and rural areas attended a session on Sept. 6 to gather advice. Along with him were officials from departments including water resources, emergency response, digital resources, firefighting and meteorology.
    Wei Xiaodong, chairman of the CPPCC Beijing municipal committee, encouraged participants to speak openly about issues and provide advice tailored to reality.
    While most speakers focused on the application of technologies, Zhang Chengfu, a professor at the School of Public Administration and Policy, Renmin University of China, cautioned against inappropriate development practices and over-reliance on technology.
    A final report incorporating the session’s advice is expected to feed into a government plan to enhance the city’s emergency response capabilities for the next three years.
    Greater solidarity 
    As a legacy of the CPC’s cooperation with other political parties and social stakeholders during the revolutionary years, the CPPCC is also the patriotic united front’s most inclusive organization.
    China is currently undergoing profound changes in areas such as social structure, relations between strata, and ways of thinking. Coupled with drastic global shifts, these factors have made it more challenging for the country to foster unity and pool strength.
    On March 5, 2023, new leaders of non-CPC political parties and the All-China Federation of Industry and Commerce made a collective debut at a press conference during the first plenary session of the 14th CPPCC National Committee. They pledged to stand in solidarity with the CPC through thick and thin, and build China into a modern socialist country in all respects.
    Political advisors are also key in ensuring that the frank exchange of views that build consensus and fortify unity occurs at the grassroots.
    In Shanghai, they set up tables in the open air to collect public opinions about the renovation of a decades-old plaza in 2023. They also engaged with neighborhood leaders and posted topics online.
    When streetlights were swiftly installed on the plaza at the request of elderly residents, “people realized that authorities are serious about their opinions,” said district political advisor Li Peilei.
    The prompt resolution to a community issue inspired more members of the public to get involved in decisions regarding the plaza’s logo and facilities. The plaza has now been completely revamped. More importantly, residents were made aware of the value that consultation plays in such processes.
    During a 2018 trip to a village in Chongqing, in southwest China, entrepreneur Shan Yi was struck by the stark contrast of cement houses among hundreds of stilted wooden homes — the traditional residence of the Tujia people. This jarring sight, coupled with stagnating local tourism due to poor management and inadequate facilities, inspired him to take action.
    Shan himself identifies as Tujia and runs a domestic services company in town. Leaving his business in his wife’s care, Shan moved to the village. He soon set to work building a museum showcasing Tujia architecture and opened stilt-house homestays to explore successful models.
    So far, the mu
    seum, featuring traditional structures, including residences and academies, is starting to take shape along the bank of a broad, winding river. And the village received over 50,000 visits in the first half of the year, generating more than 20 million yuan (around 2.8 million U.S. dollars) in revenue.
    “Personal and family comfort aside, you’ve got to do something for society one way or another,” said Shan, who became a political advisor last year.
    The CPPCC is also reaching out to the younger generation. For example, two students sat in on the session of political advisors of Beijing on emergency response on Sept. 6.
    It was part of an experimental program that invites students from middle school to university to observe the CPPCC sessions.
    Qi Xin, a sophomore at Miyun High School Affiliated with Capital Normal University, has a keen interest in public governance. He signed up as soon as he learned about the opportunity.
    “I noticed how CPPCC members shared the realities of their communities,” he said. “The will of the people is respected and reflected here.” 

    MIL OSI China News –

  • MIL-OSI China: China’s vehicle software market exceeds 65 bln yuan: report

    Source: China State Council Information Office

    China’s vehicle software market is worth more than 65 billion yuan (about 9.2 billion U.S. dollars), accounting for 30 percent of the country’s total software market, according to a report released on Friday.

    The report on the development of new quality productive force in China’s automobile industry was jointly published by China Automotive Engineering Research Institute Co., Ltd and China Economic Information Service. It was released during the Automobile New Quality Productive Force Development Forum held in Chongqing Municipality on Friday.

    “The first half of the car industry development is electrification. It is now time for it to enter the second half, featuring intelligent technologies, with the software, operating systems and car chips as the core,” said Xu Haidong, deputy chief engineer of the China Association of Automobile Manufacturers.

    He added that vehicle software can precisely manage the entire car, including its facilities, driving and communication capabilities.

    The report also pointed out that the localization rate of automobile chips is on the rise as enterprises such as Huawei are making headway in chip development. The localization rate of power semiconductors has risen to 15 percent to 20 percent.

    The automobile industry is one of major pillars of China’s economy, with the gross output of the whole industrial chain of automobiles contributing 10 percent to the country’s gross domestic product, according to the report. 

    MIL OSI China News –

  • MIL-OSI China: China’s political advisory body turns 75

    Source: China State Council Information Office 2

    There is some good news for farmers in Yinjiayuan, a village in Jiangsu Province, east China. The cost of watering their land has dropped by 20 percent, and pump malfunctions have significantly decreased — all thanks to a local political advisor.
    Shi Weidong is a member of the National Committee of the Chinese People’s Political Consultative Conference (CPPCC), the country’s political advisory body. As former president of Nantong University in Jiangsu, he is also an expert on fluid machinery.
    In 2023, Shi submitted a proposal through the CPPCC highlighting the advantages of using a digital twin platform — a virtual replica of physical systems — to improve the precision and efficiency of pump management. His suggestion resonated with a nationwide initiative to invest heavily in extensive water conservancy infrastructure. That year alone, the country began the construction of 23,000 water supply facilities in its rural areas.
    Shi’s proposal provides a glimpse into the important role of the CPPCC as an institutional platform for consultative democracy, an essential element of China’s political system, alongside electoral democracy. According to political scientists, these two complimentary facets of socialist democracy allow China to better pool wisdom and strengths for the overarching endeavor of modernization.
    Consultative democracy takes many forms in China. For example, the government listens to ideas and opinions from all sectors throughout the processes of planning, decision-making and administration. With the CPPCC celebrating an important anniversary this year, many will be reviewing its crucial role and growing list of accomplishments.
    Effective democracy
    The CPPCC plays vital roles in multiparty cooperation and political consultation under the leadership of the Communist Party of China (CPC). Its members are drawn from political parties, people’s organizations, personages without party affiliation and various sectors of society. Among the CPPCC’s diverse membership are political figures, celebrities and experts. Shi himself is a member of the Jiusan Society, a political party primarily composed of scientists and researchers.
    This year marks the 75th anniversary of the CPPCC. On Sept. 21, 1949, driven by great hopes for a bright future, more than 600 deputies from various sectors overcame obstacles to gather in Beijing.
    Decades later, the CPPCC has now transformed and improved itself to play a more effective role in state governance.
    One of its most notable recent developments is the addition of the environment and resource sector to the CPPCC National Committee in 2023. This is one of the biggest changes to the Committee’s composition in 30 years. The last such adjustment was the establishment of the economic sector in 1993.
    Over the past decade, China has undergone comprehensive changes in ecological and environmental protection. The country is making unprecedented efforts to conserve its ecology. The establishment of a new sector dedicated to this initiative would help pool efforts, facilitate research and promote consultation, said experts on the CPPCC.
    Moreover, the consultation topics have evolved over time to address emerging national challenges and public concerns.
    Zhang Yi, a national political advisor from Shanghai, has closely examined the ethical and judicial implications of algorithms.
    A partner at the law firm King & Wood Mallesons, Zhang represents the country’s new social groups.
    Zhang submitted a proposal in March on AI algorithms governance. He recently presented a report on social trends and public sentiment regarding privacy protection. “It’s great to see how my work as a political advisor turns into policies and measures that really push forward the development of the economy and society,” he said.
    Strengthening the foundations 
    The CPPCC is also improving its foundational elements — institutions, standards and procedures — to facilitate in-depth consultations.
    Earlier this month, municipal political advisors in Beijing met to discuss how the integration of AI and digital technologies could help the city respond to natural disasters and workplace accidents. It was one of 12 key topics highlighted by the municipal CPC committee and government to be included on the consultation and deliberation agenda this year.
    In the summer of 2023, Beijing experienced its heaviest rainfall in more than 140 years. This year, heavy rain and gales battered the city again, uprooting trees and causing chaos across the urban road network.
    Political advisors began their investigation and research in March. It included 14 collective and group studies, 13 discussions, as well as fact-finding trips to Fujian and Guangdong provinces, which were attended by non-CPC political party members, scholars and experts.
    A vice mayor overseeing city administration, traffic, agriculture and rural areas attended a session on Sept. 6 to gather advice. Along with him were officials from departments including water resources, emergency response, digital resources, firefighting and meteorology.
    Wei Xiaodong, chairman of the CPPCC Beijing municipal committee, encouraged participants to speak openly about issues and provide advice tailored to reality.
    While most speakers focused on the application of technologies, Zhang Chengfu, a professor at the School of Public Administration and Policy, Renmin University of China, cautioned against inappropriate development practices and over-reliance on technology.
    A final report incorporating the session’s advice is expected to feed into a government plan to enhance the city’s emergency response capabilities for the next three years.
    Greater solidarity 
    As a legacy of the CPC’s cooperation with other political parties and social stakeholders during the revolutionary years, the CPPCC is also the patriotic united front’s most inclusive organization.
    China is currently undergoing profound changes in areas such as social structure, relations between strata, and ways of thinking. Coupled with drastic global shifts, these factors have made it more challenging for the country to foster unity and pool strength.
    On March 5, 2023, new leaders of non-CPC political parties and the All-China Federation of Industry and Commerce made a collective debut at a press conference during the first plenary session of the 14th CPPCC National Committee. They pledged to stand in solidarity with the CPC through thick and thin, and build China into a modern socialist country in all respects.
    Political advisors are also key in ensuring that the frank exchange of views that build consensus and fortify unity occurs at the grassroots.
    In Shanghai, they set up tables in the open air to collect public opinions about the renovation of a decades-old plaza in 2023. They also engaged with neighborhood leaders and posted topics online.
    When streetlights were swiftly installed on the plaza at the request of elderly residents, “people realized that authorities are serious about their opinions,” said district political advisor Li Peilei.
    The prompt resolution to a community issue inspired more members of the public to get involved in decisions regarding the plaza’s logo and facilities. The plaza has now been completely revamped. More importantly, residents were made aware of the value that consultation plays in such processes.
    During a 2018 trip to a village in Chongqing, in southwest China, entrepreneur Shan Yi was struck by the stark contrast of cement houses among hundreds of stilted wooden homes — the traditional residence of the Tujia people. This jarring sight, coupled with stagnating local tourism due to poor management and inadequate facilities, inspired him to take action.
    Shan himself identifies as Tujia and runs a domestic services company in town. Leaving his business in his wife’s care, Shan moved to the village. He soon set to work building a museum showcasing Tujia architecture and opened stilt-house homestays to explore successful models.
    So far, the mu
    seum, featuring traditional structures, including residences and academies, is starting to take shape along the bank of a broad, winding river. And the village received over 50,000 visits in the first half of the year, generating more than 20 million yuan (around 2.8 million U.S. dollars) in revenue.
    “Personal and family comfort aside, you’ve got to do something for society one way or another,” said Shan, who became a political advisor last year.
    The CPPCC is also reaching out to the younger generation. For example, two students sat in on the session of political advisors of Beijing on emergency response on Sept. 6.
    It was part of an experimental program that invites students from middle school to university to observe the CPPCC sessions.
    Qi Xin, a sophomore at Miyun High School Affiliated with Capital Normal University, has a keen interest in public governance. He signed up as soon as he learned about the opportunity.
    “I noticed how CPPCC members shared the realities of their communities,” he said. “The will of the people is respected and reflected here.” 

    MIL OSI China News –

  • MIL-OSI Asia-Pac: FS to visit Spain and the UK

    Source: Hong Kong Government special administrative region

    FS to visit Spain and the UK
    FS to visit Spain and the UK
    ****************************

         The Financial Secretary, Mr Paul Chan, will depart for Europe in the early hours tomorrow (September 22).  He will first visit Madrid, Spain, and then London, the United Kingdom (UK). For this visit, Mr Chan will lead a delegation from the innovation and technology (I&T) sector, comprising senior executives from the Hong Kong Science and Technology Parks (HKSTP) and Cyberport, as well as heads of a group of startups engaged in artificial intelligence, biotechnology, fintech, green technology, Web 3.0, etc.     While in Madrid from September 22 to 25, Mr Chan will visit various local I&T institutions and enterprises, as well as meet with members from the political, business and I&T communities. The delegation will also attend a themed business luncheon organised by the Hong Kong Trade Development Council (HKTDC) to promote Hong Kong’s advantages to the local political, business, financial and I&T sectors, particularly Hong Kong’s burgeoning I&T ecosystem.     Mr Chan will visit London from September 25 to 28. There, he will participate in a series of events, including the Plenary of the Hong Kong-European Business Council (Note 1); the Hong Kong Dinner hosted by the HKTDC; a luncheon organised by the Hong Kong Association (Note 2), and a roundtable meeting hosted by Asia House, a think tank based in the UK. On these occasions, he will share the latest developments and advantages of Hong Kong. He will also meet with members of the local political, business and financial communities.     While in Spain and the UK, representatives from the HKSTP, Cyberport as well as startups in the delegation will engage in exchanges with relevant institutions and members of local venture capital funds and I&T circles to seek cooperation opportunities.     Mr Chan will return from London in the evening of September 28 (local time) and arrive in Hong Kong in the afternoon of September 29. During his absence, the Deputy Financial Secretary, Mr Michael Wong, will be the Acting Financial Secretary.Note 1: The Hong Kong-European Business Council is a bilateral committee established by the HKTDC with Europe to foster high-level dialogue between Hong Kong business leaders and their local counterparts, promoting bilateral trade, investment, and economic cooperation.Note 2: The Hong Kong Association is an organisation based in the UK aimed at promoting business and trading relationship between Hong Kong and the UK. The association has over 80 corporate members including global banks, international enterprises, the China-Britain Business Council, etc.

     
    Ends/Saturday, September 21, 2024Issued at HKT 11:30

    NNNN

    MIL OSI Asia Pacific News –

  • MIL-OSI China: Beijing’s sub-center pursues high-quality development

    Source: China State Council Information Office 3

    Beijing’s sub-center in Tongzhou district is making sound progress in high-quality development, featuring solid investment, booming industries, prosperous culture and tourism, and coordinated regional development, according to officials at a recent press conference.

    The sub-center has received investments of over 100 billion yuan (US$14.2 billion) for four consecutive years, said Zheng Hao, head of Tongzhou district, at the press briefing. 

    The district is actively developing six industrial clusters, namely the digital economy, modern finance, advanced manufacturing, commercial services, cultural tourism, and modern seed industry, while exploring three future-oriented sectors: information, energy, and healthcare. 

    In the first eight months of the year, Tongzhou district added 25,000 new market entities, leading the capital city in this regard. The financial industry has become a pillar industry of the sub-center, with over 460 registered financial institutions. 

    Furthermore, 102 subsidiaries of centrally-administered state-owned enterprises have established operations in the district. In addition, the sub-center has been improving its business environment, rolling out 26 measures to facilitate high-quality industrial development. 

    The new municipal administrative center has also been improving its urban layout. A highlight in urban construction is East 6th Ring Road, which connects five areas with diverse functions. Additionally, the High Line Park, currently under construction, will stretch 14 kilometers and feature running, cycling, and tourism lanes, along with over 200 public leisure zones. Upon completion, the park is expected to increase the regional greenery coverage from 50% to 80%. 

    The sub-center is also focusing on developing the culture and tourism sectors. The three major cultural venues – the Beijing Performing Arts Center, the Beijing Library, and the Grand Canal Museum of Beijing – have received more than 7 million visitors so far this year. Moreover, another three major projects are under construction, including Beijing’s biggest outlet shopping complex, an amusement park, and the Haichang Ocean Park, which are expected to attract tens of millions of visitors upon completion. 

    The district is also advancing regional integration by building the Chaobaihe Bridge, which will connect with neighboring counties in Hebei province. The district has organized project matchmaking events with counties in Hebei for five years straight, which witnessed the signing of over 210 projects. Moreover, the district has collaborated with neighboring Hebei counties to facilitate cross-regional services for over 3,600 administrative items.

    MIL OSI China News –

  • MIL-OSI China: 27th Beijing-Taiwan Science and Technology Forum opens

    Source: China State Council Information Office 3

    The 27th Beijing-Taiwan Science and Technology Forum kicked off at the Beijing Economic-Technological Development Area on Thursday. Nearly 500 attendees, including entrepreneurs and tech professionals, will dive deep into the economy, trade, and sci-tech exchange and cooperation between Beijing and Taiwan during the three-day event. 

    The event will feature a summit, four parallel sessions, and several sub-forums. The four parallel sessions will look into energy and digitalization, fin-tech, healthcare, and intelligent electric vehicles, while the sub-forums will discuss topics including youths, women, human resources, and intellectual property protection. 

    At the opening ceremony on Thursday, the Cross-Strait Sci-Tech Innovation Center, which was established last year, signed strategic cooperation agreements with several research institutions. The center also unveiled a second batch of policies, which include over 10 measures to support businesses from Taiwan to develop in Beijing. The measures cover a range of issues including research and development, financial support, industry upgrade, and talent recruitment.  

    The Beijing-Taiwan Science and Technology Forum was established in 1998, and has since become an important economic and trade exchange platform for companies across the Taiwan Strait.

    MIL OSI China News –

  • MIL-OSI Asia-Pac: Third Guangdong-Hong Kong-Macao Greater Bay Area (Guangdong) Statistical Forum held in Foshan (with photos)

    Source: Hong Kong Government special administrative region

    Third Guangdong-Hong Kong-Macao Greater Bay Area (Guangdong) Statistical Forum held in Foshan (with photos)
    Third Guangdong-Hong Kong-Macao Greater Bay Area (Guangdong) Statistical Forum held in Foshan (with photos)
    ******************************************************************************************

         The Third Guangdong-Hong Kong-Macao Greater Bay Area (Guangdong) Statistical Forum was held on September 19 and 20 in Nanhai, Foshan. Under the guidance of the National Bureau of Statistics (NBS), the forum was hosted by the Guangdong Provincial Bureau of Statistics (GPBS) and co-organised by the Census and Statistics Department (C&SD) of the Hong Kong Special Administrative Region and other government statistical agencies from the “9+2” cities in the Guangdong-Hong Kong-Macao Greater Bay Area (GBA).       The Commissioner for Census and Statistics, Mr Leo Yu, led a delegation to participate in this meaningful event. During the forum, the C&SD signed the Memorandum of Understanding on Statistical Exchange and Cooperation in the GBA with the GPBS and the Macao Statistics and Census Service, with a view to promoting co-operation among the relevant government statistical agencies in the three places.      This year’s forum, themed “Innovation and Measurement of Statistical Methods from an International Perspective”, aimed to foster statistical exchanges and co-operation in the GBA. It provided a platform for statistical professionals from the “9+2” cities to leverage the collective wisdom and insights to explore how to innovate and reform statistical work from an international perspective to address the current complex and ever-changing environment. In addition to the participation of leaders from the NBS and the GPBS, the forum brought together statistical experts from various fields, including representatives from the government statistical agencies of the “9+2” cities in the GBA, as well as those from higher education institutions and research institutes on the Mainland.       Speaking at the opening ceremony of the forum, Mr Yu remarked, “To achieve high-quality development, it is essential to rely not only on technological innovation but also on the power of talent. People are the core element for driving development. Therefore, we continue to strengthen the attraction and cultivation of statistical talent, uplift their capabilities in applying data science techniques, broaden their international perspectives, enable them to reach international standards in their professional work as well as encourage them to think innovatively. We also actively promote the inheritance and exchange of statistical management. All these efforts aim to consolidate Hong Kong’s position in the international statistical community, allowing Hong Kong to fully leverage its role as a window of the country to the world and provide more precise and robust support for the prosperous development of the GBA. Thus, we can use our strengths to serve the needs of the country.”      Senior Statistician of the C&SD Mr James Cheng also delivered a presentation entitled “Three Major Restructuring Measures: Modernising the Planning of the 2026 Population Census in Hong Kong” at one of the sessions of the forum. Colleagues participated in the forum unanimously expressed that it was a very valuable experience for them to exchange knowledge and learn from statistical professionals from the Mainland cities. It enabled them to acquire insights into the ongoing advancement of statistical techniques on the Mainland, and reminded them to strive for innovation and actively pursue breakthroughs in the dynamic era of big data, in order to seize opportunities and tackle challenges in the future.      The forum was held in Foshan and was attended by representatives of statistical organisations from Beijing, Guangdong Province, Hong Kong and Macao, etc, through online and in-person participation. Relevant officials from the statistical systems of the cities in the GBA, as well as experts and scholars from national think tanks and renowned universities, also shared their valuable insights on the statistical measurement of new quality productive forces, statistical monitoring of digital economy, research on data science and big data statistical applications, statistical reform and innovation, and etc.

     
    Ends/Saturday, September 21, 2024Issued at HKT 12:00

    NNNN

    MIL OSI Asia Pacific News –

  • MIL-OSI China: Lufthansa hoping to increase China capacity

    Source: China State Council Information Office

    The German carrier Lufthansa has said the airline is looking to further expand capacity to China, after restoring capacity to Shanghai to pre-COVID levels.

    “For Lufthansa, China is one of the most important markets in the world outside Europe. We are pretty happy that we already received pre-pandemic capacity here in Shanghai,” said Jens Ritter, CEO of Lufthansa Airlines. “Hopefully in the next couple of years we can extend our network also here in China.”

    Having a strong connection and close relationship between Germany and China, Lufthansa will celebrate its 100th anniversary in 2026, as well as the carrier’s first connection between the two countries.

    “I think it is a great relationship we have here for almost 100 years. There’s a strong connection between the fourth-biggest economy in the world Germany and the second-biggest economy China,” Ritter said. “We are pretty proud of our strong connection. We truly believe in the recovery of air travel between Germany and China for the next years.”

    Currently operating the most flights to China among all European carriers, Lufthansa offers 40 weekly direct connections between the German cities of Frankfurt and Munich to the Chinese cities of Hong Kong, Shanghai and Beijing in the summer time.

    “In comparison to last year, we increased our capacity by over 70 percent,” added Ritter. “Hopefully next year with the introduction of new aircraft we can increase this capacity further.”

    The expanding capacity is accompanied with a rapid recovery in the passenger load factor, “especially during the summer time with a seat factor of more than 90 percent,” Ritter said.

    “We are looking forward to further development and we are pretty sure that we will come back to pre-pandemic capacity here between Europe, Germany and China,” said Ritter.

    Plus, in a bid to boost the China travel market during the holiday season and further enhance the customer experience onboard, Shanghai was the airline’s first Asian destination, as well as the fourth worldwide following Vancouver, Toronto and Chicago, to introduce the carrier’s brand-new cabin products on a daily basis since Aug 14.

    Under the name, Lufthansa Allegris, the completely new travel experience is available on select long-haul routes for passengers of economy, premium economy, business and first class.

    “We truly believe that people do not want a standard product anymore, they would like to have more choices, more exclusivity and they would like to have more individuality,” explained Ritter. “I think also the Chinese people would like to have a choice. One standard product does not fulfill the needs of the requirements for the premium sector of Chinese people. They would like to have more individuality, more possibility for exclusivity and they would like to choose. We are pretty happy to introduce our new Allegris product because we definitely believe that this will fulfill the needs of our Chinese customers.”

    Confidence in the Chinese market is based on the optimistic outlook of China’s economy, the strong economic ties between China and Germany, and China’s visa-free policies.

    “Germany has a strong connection with China, because so many companies are based from Germany here in China,” Ritter said. “It is a long-lasting relationship and we truly believe in those two economies and we need to tie them.”

    Figures provided to the Financial Times by Germany’s central bank, the Bundesbank, show that Germany’s direct investment in China totaled 2.48 billion euros ($2.76 billion) in the first three months of 2024, and the figure rose substantially to 4.8 billion euros in the second quarter.

    “I think this represents a strong relationship between our two economies,” said Ritter.

    In the meantime, China’s visa-free policy presents new opportunities for carriers such as Lufthansa, as eligible ordinary passport holders from countries including Germany can enjoy visa-free travel to China for up to 15 days.

    Thanks to the collaborated efforts of Civil Aviation Administration of China and related government divisions, international passenger flights have been restored to nearly 80 percent of the 2019 level during the first week of July, and passenger flights to 30 countries, including the UK and UAE, surpassing the 2019 level, according to Xu Qing, an official with the CAAC.

    “The expansion of China’s visafree policy to more countries has created an incentive effect on the aviation market,” Xu said.

    MIL OSI China News –

  • MIL-OSI Australia: Joint statement: Australia-New Zealand Closer Economic Relations Ministerial meeting in Rotorua

    Source: Minister for Trade

    1. New Zealand Minister for Trade Hon Todd McClay hosted Australian Minister for Trade and Tourism Senator the Hon Don Farrell in Rotorua on 21 September, for the annual Closer Economic Relations Ministerial meeting.
    2. Ministers acknowledged the New Zealand-Australia relationship is built upon shared history, democratic values, a common outlook as Pacific countries, and most of all on generations of deep friendship and close cooperation – we are family. Our economies are two of the most closely integrated in the world, underpinned by our extensive people-to-people ties, strong collaboration between our private and public sectors, and deep levels of trust embedded across our two governments.
    3. Ministers recognised we face an evolving geo-economic global environment with increasing strategic competition and rapid technological change. They affirmed New Zealand and Australia are fundamentally strategically aligned in our assessment of the challenges faced and committed to working in lockstep to advance our shared trade and economic interests.
    4. Ministers discussed the impact of the current geostrategic environment on the global trading system and economic security. They reaffirmed their commitment to promoting open, diversified, rules-based trade, including through support for efforts to reform and strengthen the multilateral trading system, with the World Trade Organization (WTO) at its core. They reaffirmed the importance of our existing commitments and shared architecture as foundations to address the challenges and opportunities ahead.
    5. Ministers reaffirmed their commitment to Pillar One of the Trans-Tasman Roadmap to 2025: building productive, prosperous and sustainable economies that are fit for the future, and improve the lives of Australians and New Zealanders.
    6. Ministers celebrated the benefits that the Australia-New Zealand Closer Economic Relations Trade Agreement (CER) has brought to both sides of the Tasman over 41 years, reflected in the sixfold growth in trade flows since 1983 and tripling of two-way direct investment since 2001. Our bilateral trade is more diverse and multi-sectoral than with any other partners. CER remains a world-class agreement. The secret of CER’s success is our willingness to consistently add to it, ensuring it remains fit for purpose. This is reflected in the more than 80 supplementary bilateral treaties, protocols and other arrangements that together provide the framework for our trade relationship.
    7. Our economic integration is underpinned by an active Single Economic Market (SEM) agenda. Now in its twentieth year, the SEM has delivered significant wins for our people and businesses, ranging from superannuation portability to a common approach to electronic invoicing. Ministers welcomed both Prime Ministers’ enthusiasm for achieving more integration through the SEM, discussed during the 2024 Australia New Zealand Leaders’ Meeting in August. Ministers reiterated that rapid technological changes, as well as geo-economic competition, were fundamentally reshaping the economic landscape. They noted the need for further work to modernise the SEM, in line with the Prime Ministers’ direction, including to ensure we are:
    8. expanding the SEM agenda to emerging sectors of the economy;
    9. taking active and concerted steps to ensure our economic resilience; and
    10. considering how to position the SEM within the economic evolution underway across the wider region.
    11. To support an ambitious work programme for future economic integration and resilience, Ministers welcomed continued regular strategic trade and economic dialogue between senior officials from the New Zealand Ministry of Foreign Affairs and Trade and the Australian Department of Foreign Affairs and Trade.
    12. Ministers welcomed the opportunity they had to engage with the Australia New Zealand Leadership Forum (ANZLF) during their time in Rotorua, as a useful opportunity to hear directly from the business community about its priorities for the trans-Tasman trade relationship. Ministers welcomed the strategic refresh of the ANZLF. They noted the SEM agenda was at its most productive when it was informed by practical feedback from the business community.
    13. In addition, Ministers supported the Prime Ministers’ commitment to reinvigorate the Trans-Tasman Mutual Recognition Arrangement (TTMRA). The TTMRA underpins the seamless market for goods and the mutual recognition of occupational registration across the Tasman. Ministers welcomed the reestablishment of regular official-level exchanges to progress TTMRA coordination and acknowledged the important work underway by relevant agencies to action the joint work plan to enhance standards harmonisation and regulatory coherence. Ministers noted the importance of ensuring that businesses, as well as New Zealand, Commonwealth, State and Territory government agencies, were aware of the TTMRA, and – in particular – its application to the regulation of the sale of goods.
    14. Ministers agreed on the importance of addressing non-tariff barriers, noting that these barriers of shared concern can impose significant costs on our respective exporting communities.
    15. Ministers discussed forestry matters, including opportunities to further cooperate in support of sustainable timber trade.
    16. Ministers were in alignment that digital trade should be a continued focus of the New Zealand and Australia economic relationship and emphasised the importance of working together, including in international fora, to secure high ambition outcomes to streamline trade, especially for the benefit of micro, small and medium enterprises.
    17. Ministers welcomed the outcomes of the Australia-New Zealand 2+2 Climate and Finance Ministers’ Dialogue held on 30 July. They reinforced the importance of collaborating to achieve our climate goals, address shared challenges, and grasp the economic opportunities that come with the transition to a net zero future. Streamlining the regulatory environment to support the net zero transformation, together with practical clean energy and sustainable finance policies will encourage trans-Tasman investment in the net zero transition and seamless trade into the future.
    18. Ministers directed officials to coordinate on Australia’s Future Made in Australia agenda and New Zealand’s plan to rebuild its economy, to ensure that this work collectively supported jobs, productivity, prosperity, and economic resilience in the international move to net zero and a changing global economic and strategic landscape. They highlighted the important contribution trans-Tasman trade and investment makes to achieving our economic goals.
    19. Ministers acknowledged the work of the Trans-Tasman Seamless Travel Group and its vision for easier travel between Australia and New Zealand while ensuring the highest levels of security at our borders. They noted the initiatives underway to enhance the traveller experience, including Australia’s trialling of digital incoming passenger cards and New Zealand upgrading eGates. Making trans-Tasman travel even more seamless will support the exchange of our tourists, students and business people.
    20. Ministers reaffirmed the importance of members accepting the WTO Agreement on Fisheries Subsidies to accelerate its entry into force and the need for members to conclude negotiations on additional provisions to secure a comprehensive fisheries subsidies agreement as soon as possible. Ministers recognised the need for all WTO Members to work towards a meaningful outcome on agriculture reform at MC14, in line with Article 20 of the Agreement on Agriculture.
    21. Ministers agreed on the importance of APEC as an incubator of ideas and as a norm setting body. They reaffirmed the shared commitment to work with APEC economies to pursue a free, open, sustainable, inclusive and predictable trade and investment environment in the region, including through initiatives such as paperless trade, minimising unnecessary obstacles to trade arising from non-tariff measures and ensuring the benefits of trade and investment extend to all including women and Indigenous Peoples. Ministers also agreed to work together to advance implementation of the Indigenous Peoples Economic and Trade Cooperation Arrangement (IPETCA).
    22. Minister McClay welcomed Australia as the incoming Chair of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) in 2025, and both Ministers reiterated that CPTPP welcomes the interest of and remains open to accession by economies that can satisfy the three Auckland Principles, namely: preparedness to meet the Agreement’s high standards; a demonstrated pattern of complying with trade commitments; and recognition that decisions are dependent on the consensus of the CPTPP Membership.
    23. This commitment to regional economic integration and the rules-based global trading system is reflected in Australia and New Zealand’s continued collaboration via the Agreement establishing the ASEAN-Australia-New Zealand Free Trade Area (AANZFTA) and the Regional Comprehensive Economic Partnership (RCEP). Ministers looked forward to the forthcoming entry into force of the upgraded AANZFTA with enhanced rules and opportunities in services, investment and digital trdae. Ministers celebrated the continuing success of Australia and New Zealand’s co-funded Regional Trade for Development (RT4D) initiative to support AANZFTA and RCEP implementation in partnership with ASEAN Member States.
    24. Ministers acknowledged Australia and New Zealand continue to work closely together to support the implementation of the Indo-Pacific Economic Framework (IPEF). They reaffirmed their commitment to concluding negotiations of the IPEF Trade Agreement as expeditiously as possible and welcomed recent meetings to operationalise key bodies under the IPEF Supply Chain Agreement. They welcomed New Zealand’s ratification of the IPEF Agreements on Supply Chains, the Clean Economy and the Fair Economy, and Australia’s substantial progress towards completing ratification. Ministers emphasised the importance of tangible outcomes on IPEF to support a prosperous, resilient, and inclusive Indo-Pacific region.
    25. Ministers reaffirmed Australia and New Zealand share a vision for a peaceful, prosperous, and resilient Pacific. This year, alongside the bilateral meeting, Ministers invited Fiji’s Deputy Prime Minister and Minister for Trade Hon Manoa Kamikamica for trilateral talks to discuss priority trade issues, including PACER Plus. Australia and New Zealand see PACER Plus, the largest and most comprehensive trade agreement in the Pacific region, as an important mechanism for working with our partners to deepen economic integration and resilience across the Pacific.

    MIL OSI News –

  • MIL-OSI China: Innovation to power China growth

    Source: China State Council Information Office

    Innovation capacity, the digital sector and green industries have significant potential to be major engines of China’s growth, fueled by the nation’s commitment to reform and opening-up, said Japanese scholars.

    Hidetoshi Tashiro, chief economist at Japan’s Infinity LLC, predicts that China’s economy is poised to enter a new phase of growth.

    Speaking at a seminar on Chinese-style modernization in Osaka last week, Tashiro highlighted China’s significant share of the global market in various industries. While noting the nation’s leading position in sectors such as electric vehicles and solar panels, he also said that as digitalization expands globally, demand for products and services supporting this shift will continue to rise.

    Tashiro stressed the digital sector is the key driver of China’s economic growth. Reflecting on his visit to China last November, he observed that cash payments had become obsolete in the nation.

    “The rise of this vast digital ecosystem, unlike anything the world has ever seen, is now powering China’s economy. This momentum is driven by advancements in semiconductor design and application development,” Tashiro said.

    A World Intellectual Property Organization report shows that from 2014 to 2023, China-based inventors filed more than 38,000 generative artificial intelligence patents, six times the number filed by inventors in the United States.

    China’s economy is shifting from a labor-intensive to a capital-intensive model, making intellectual contributions increasingly important. The country is producing a huge number of highly-skilled scientists and engineers, fostering the growth of a vast and expanding digital ecosystem, he added.

    Yangchoon Kwak, a professor at Rikkyo University’s College of Economics, emphasized that green industries will be the main driver of China’s future economic growth.

    “China’s focus is not just on quantitative expansion but on pursuing environmentally-friendly development that contributes to global peace and prosperity,” Kwak explained.

    Another key growth area is tourism. With a history spanning several millennia, China has a rich cultural heritage to share with the world. If the nation continues to open up, it could attract more than 100 million visitors, fostering a deeper international understanding and appreciation of the country, he said.

    “China’s dynamism will continue to accelerate, and it’s vital for Japanese companies to seize this opportunity,” Kwak added. He advised them to engage in proactive capital and technology partnerships with China, aligning with the country’s evolving trends, rather than focusing on low-cost labor as they did in the past.

    Confidence emphasized

    Satoshi Tomisaka, a professor at the Institute of World Studies at Takushoku University, emphasized the importance of fostering an environment in China where people feel confident in their spending.

    “As Western economies face stagnation and institutional difficulties, China’s model is starting to make a significant global impact,” said Tomisaka.

    However, for the world to truly acknowledge China’s achievements, soft power is crucial. International recognition would not only elevate China’s global reputation but also strengthen its domestic standing, he added.

    Kiyoyuki Seguchi, research director at the Canon Institute for Global Studies, said that the future of China’s economic growth will be driven by the innovation capacity of its companies. If policies continue to energize private companies, China still has significant potential for further growth, he added.

    Seguchi’s remarks came after a recent lecture in Tokyo organized by the Japan-China Belt and Road Initiative Promotion Association.

    The foundation for China’s growth is rooted in its reform and opening-up policy. Seguchi emphasized that the focus given by the third plenary session of the 20th Central Committee of the Communist Party of China, which was held in July, on reform and opening-up is essential. He stressed the need to create mechanisms that deliver specific reform measures desired by private enterprises, noting this is critical for sustained development.

    According to Seguchi, the major challenges facing China’s economy include the end of high-speed growth, issues in the real estate sector and local fiscal problems. While the government has introduced policies to address these issues, he highlighted the importance of accurately implementing them in a way that responds to market needs, maintaining a market-oriented approach to enhance policy effectiveness.

    MIL OSI China News –

  • MIL-OSI Economics: Secretary-General of ASEAN attends 30th AEM- METI Consultation in Vientiane, Lao PDR

    Source: ASEAN

    Secretary-General of ASEAN, Dr. Kao Kim Hourn, today attended the 30th ASEAN Economic Ministers – Ministry of Economy, Trade and Industry  (AEM-METI) Consultation,  held in Vientiane, Lao PDR.

    The Meeting discussed ways to advance ASEAN-Japan economic relations, including through the continued implementation of the ASEAN-Japan Comprehensive Economic Partnership (AJCEP) Agreement. The Meeting also discussed collaborative initiatives to foster ASEAN-Japan economic cooperation, with an emphasis on digital economy, sustainability, and private sector collaboration.

    The post Secretary-General of ASEAN attends 30th AEM- METI Consultation in Vientiane, Lao PDR appeared first on ASEAN Main Portal.

    MIL OSI Economics –

  • MIL-OSI Asia-Pac: FS to visit Spain and UK

    Source: Hong Kong Information Services

    Financial Secretary Paul Chan will depart tomorrow for Europe, where he will visit Madrid and London before returning to Hong Kong on September 29.

    Mr Chan will lead a delegation from the innovation and technology (I&T) sector on the trip. It will comprise senior executives from the Science & Technology Parks (HKSTP) and Cyberport, as well as the heads of startups engaged in artificial intelligence, biotechnology, fintech, green technology, Web 3.0, and other advanced sectors.

    In Madrid, from September 22 to 25, he will visit various local I&T institutions and enterprises and meet members of the political, business and I&T communities. The delegation will also attend a business lunch organised by the Hong Kong Trade Development Council to promote Hong Kong’s advantages, particularly its burgeoning I&T ecosystem.

    In London, from September 25 to 28, Mr Chan will participate in the plenary of the Hong Kong-European Business Council, a Hong Kong Dinner hosted by the Trade Development Council, a lunch organised by the Hong Kong Association, and a roundtable meeting hosted by the UK-based think tank Asia House.

    He will speak on these occasions about Hong Kong’s latest developments and its advantages and meet members of the local political, business and financial communities.

    In the two European capitals, representatives from the HKSTP, Cyberport and startups in the delegation will engage in exchanges with institutions, and members of venture capital funds and I&T circles, seeking opportunities for co-operation.

    During Mr Chan’s absence, Deputy Financial Secretary Michael Wong will be Acting Secretary.

    MIL OSI Asia Pacific News –

  • MIL-OSI Asia-Pac: Financial services growing apace

    Source: Hong Kong Information Services

    Associate Director-General of Investment Promotion Charles Ng says Hong Kong’s financial services sector is currently undergoing accelerated growth, thanks to the ongoing recovery seen in the city’s overall economy, as well as favourable government policies.

    In the first eight months of this year, Invest Hong Kong (InvestHK) assisted 40 companies in the financial sector in setting up or expanding their operations in Hong Kong, a 60% increase compared to the same period last year.

    Half of these companies are from Mainland China, followed by the US, the UK, Switzerland, Luxembourg, France, Malaysia, and five other economies.

    The scope of the companies covers a broad spectrum, but a sizeable 14 among them provide asset management services. This aligns with Hong Kong’s position as Asia’s leading asset and wealth management hub and offers further demonstration that the city remains the region’s premier global financial centre.

    Hong Kong’s unique geographical location and the advantages it enjoys under “one country, two systems” are hugely appealing to investors and companies.

    Mr Ng noted an increasing trend among Mainland companies of using Hong Kong as a platform to expand their global reach. Complementing this, he said, firms from overseas markets continue to leverage Hong Kong to enter the Chinese market, particularly that of the Greater Bay Area.

    “Through our international network, we are exploring strategies to help Mainland or overseas companies already established in Hong Kong tap into emerging markets, such as the Middle East and countries along the Belt & Road Initiative.”

    Wealth management hub

    Hong Kong’s capital markets, boasting a total market capitalisation of about US$5 trillion, are among the most vibrant and liquid in the world. The city is also Asia’s biggest global offshore wealth management centre, and the second largest in the world behind Switzerland.

    Furthermore, it has the highest number of ultra-high-net-worth individuals (UHNWIs) of any Asian city. 

    Hong Kong’s asset and wealth management business was worth HK$31.2 trillion at the end of 2023. Mr Ng said it now stands as the second largest cross-border wealth management centre globally, and is poised to become the largest booking centre for wealth management business by 2027.

    Noting that investors across the globe are seeking better returns by allocating capital to alternative asset classes such as private equity, hedge funds and more, he added that alternative investments in Hong Kong are experiencing extraordinary growth.

    Outside of the Mainland, Hong Kong has the largest number of hedge funds and the biggest private equity market in Asia.

    Hong Kong also serves as the largest offshore renminbi centre, and its RMB liquidity pool, exceeding RMB600 billion, is the world’s largest outside of the Mainland.

    Enabling growth

    The Hong Kong Special Administrative Region Government is committed to attracting global investment through various initiatives, including tax concessions for private equity funds and relaxed listing rules for pre-revenue biotech and specialist technology companies.

    Hamilton Lane, a distinguished leader in alternative asset management, has announced the establishment of its first Hong Kong Limited Partnership Fund, further solidifying its presence in Asia. The company manages approximately US$130 billion in discretionary assets and US$810 billion in non-discretionary assets.

    Having opened its inaugural Asian office in Hong Kong in 2009, Hamilton Lane is poised to celebrate its 15th anniversary in the region this month.

    Shannon Chow, Managing Director and Head of Greater China Client Solutions at Hamilton Lane, remarked: “Our Hong Kong office has operations in asset management and client solutions. If you ask me whether Hong Kong is our inaugural office in Asia, the answer is yes. We are very pleased to have this office in the heart of Hong Kong to expand our business further in Asia.”

    Ms Chow also expressed her admiration for the InvestHK team, acknowledging its dedication and strenuous efforts in promoting the family office sector, and praised the Hong Kong SAR Government’s successful initiatives aimed at enhancing the city’s talent pool.

    According to Ms Chow, one of Hong Kong’s key advantages is its low tax rates, which underpin the development of alternative investment companies and other industries.

    She stated: “Hong Kong is renowned for having some of the lowest tax rates in the global market, which significantly helps in the development of these sectors.”

    Furthermore, she noted, “Hong Kong possesses a robust and skilled talent pool, which is vital for our operations.”

    The Hong Kong SAR Government, Ms Chow highlighted, has launched various initiatives to attract talent, fostering an environment that draws professionals from around the world.

    “These programmes allow overseas individuals and those from Mainland China to work in Hong Kong, making Hong Kong their home.”

    In addition to Mainland talent moving to Hong Kong, many businesses from the Mainland are also choosing to expand their operations in the city. A notable example is Guolian Securities International, which is headquartered in Jiangsu Province. The company established a presence in Hong Kong in 2019, and engages in both wealth management and investment banking.

    Franklin Yang, CEO of Guolian Securities International, highlighted the numerous advantages Hong Kong offers, stating: “There are many benefits to operating in Hong Kong, both from a policy-making perspective and in terms of the advantages it provides within Greater China.”

    He also stressed that the city’s commendable education system contributes to a pool of graduates proficient in both English and Mandarin, making it easier to attract top talent for larger-scale deals.

    Mr Yang emphasised Hong Kong’s unique position in the financial industry, remarking: “Guolian takes full advantage of Hong Kong’s status as a financial capital. We attract many reputable companies from Mainland China, who either list on the Hong Kong Stock Exchange or engage in merger and acquisition activities here.”

    He added, with optimism: “I believe Guolian can bring more capital into these markets.”

    As Hamilton Lane continues to expand its operations and Guolian Securities International consolidates its offerings, Hong Kong remains a pivotal hub for financial services in the region, attracting businesses and talent alike.

    Targeting wealthy individuals

    To draw UHNWIs to the city, the Hong Kong SAR Government has introduced measures to enhance offerings for global wealth owners and promote the development of family offices.

    “Hong Kong’s family office sector is flourishing, with more than 2,700 single-family offices,” Mr Ng explained.

    Over the past year, facilitating measures have been implemented to support the business development of family offices.

    “As of end-May this year, we have assisted 89 family offices to set up or expand their operations in Hong Kong and more than 130 family offices indicated that they had decided or were preparing to set up or expand their operations in Hong Kong.”

    The New Capital Investment Entrant Scheme (CIES) is another vital initiative that is contributing to Hong Kong’s status as a leading financial hub. Under the scheme, high-net-worth individuals (HNWIs) can settle in the city if they invest a minimum of HK$30 million here, with a portion being directed towards companies and projects with a Hong Kong nexus.

    “When HNWIs choose to invest through the New CIES, they create a demand for financial services, further strengthening the city’s reputation as a premier destination for wealth management and investment.”

    Highlighting the scheme’s appeal, Mr Ng said that since its launch in March, the scheme had received over 5,000 enquiries and more than 500 applications.

    The insurance sector is another important pillar of Hong Kong’s financial industry, with the city housing around 160 authorised insurers, including six of the world’s top 10, as of July. Hong Kong has also achieved exceptional insurance density, ranking first in Asia and second globally for insurance premiums per capita as of the end of last year.

    MIL OSI Asia Pacific News –

  • MIL-OSI China: China’s vehicle software market exceeds 65 bln yuan

    Source: China State Council Information Office 3

    China’s vehicle software market is worth more than 65 billion yuan (about 9.2 billion U.S. dollars), accounting for 30 percent of the country’s total software market, according to a report released on Friday.

    The report on the development of new quality productive force in China’s automobile industry was jointly published by China Automotive Engineering Research Institute Co., Ltd and China Economic Information Service. It was released during the Automobile New Quality Productive Force Development Forum held in Chongqing Municipality on Friday.

    “The first half of the car industry development is electrification. It is now time for it to enter the second half, featuring intelligent technologies, with the software, operating systems and car chips as the core,” said Xu Haidong, deputy chief engineer of the China Association of Automobile Manufacturers.

    He added that vehicle software can precisely manage the entire car, including its facilities, driving and communication capabilities.

    The report also pointed out that the localization rate of automobile chips is on the rise as enterprises such as Huawei are making headway in chip development. The localization rate of power semiconductors has risen to 15 percent to 20 percent.

    The automobile industry is one of major pillars of China’s economy, with the gross output of the whole industrial chain of automobiles contributing 10 percent to the country’s gross domestic product, according to the report. 

    MIL OSI China News –

  • MIL-OSI Europe: Audience with members of the Italian Financial Police on the occasion of the 250th anniversary of its founding

    Source: The Holy See

    Audience with members of the Italian Financial Police on the occasion of the 250th anniversary of its founding, 21.09.2024
    This morning, in the Vatican Apostolic Palace, the Holy Father Francis received in audience the members of the Italian Financial Police on the occasion of the 250th anniversary of the founding of the Corps, to whom he delivered the following address:

    Address of the Holy Father
    Mr. Minister,
    Mr. General,
    Your Excellency and dear Chaplains,
    Dear Members of the Financial Police,
    I welcome you with pleasure: I saw you this morning when you were entering here. I greet the Minister of Economy and Finance, the Commander General and all the officials. I greet and thank the Bishop Military Ordinary and the chaplains.
    “In tradition, the future”. This is the motto of your 250th anniversary. In tradition there is the future. It refers to the roots that led to the founding of the Italian Financial Police, and gave a direction for growth. Born as a special Corps for financial surveillance and border defence, it has taken on the tasks of tax and economic-financial police, and sea policing, with an important mission in the field of rescue, both at sea and in the mountains. A historical reminder of this commitment is the help offered to Jewish refugees and the persecuted during the two great world wars.
    A vast sphere of intervention, therefore, which aims to respond to problems with the tangibility of presence and timely action, while at the same time conveying a cultural alternative to certain evils that threaten to contaminate society.
    Your Patron is Saint Matthew – today is his feast day – apostle and evangelist. Indeed, he was a “publican”, a tax collector, an occupation doubly despised in Jesus’ time, because it was subservient to imperial power, and because it was corrupt. I like to go to the church of the French to see that painting by Caravaggio, “The conversion of Matthew”, which symbolizes this so deeply. He represented a utilitarian and unscrupulous mentality, devoted only to the “god of money”.
    In our times too, a similar logic affects social life, causing imbalances and marginalization: from food wastage – but this is a scandal, food wastage is a scandal! – from this waste, to the exclusion of citizens from benefiting from some of their rights. Even the State can end up a victim of this system; including those States that have vast resources but remain isolated in terms of finance or the global market. How does one explain hunger in the world today, when there is so, so much waste in developed societies? It is terrible. And another thing: if the production of weapons were to cease for a year, world hunger would end. Better to have weapons than solve hunger… Even the State can fall victim to this system: even those States which, despite having resources, as I said, remain isolated.
    In this panorama, you are required to contribute to the justice of economic relationships, verifying compliance with the rules that govern the activities of individuals and businesses. Therefore, you oversee the duty of every citizen to contribute to the needs of the State according to equitable criteria, without favouring the strongest, and you counter the inappropriate use of the internet and social networks. With regard to both tax collection and the fight against undeclared and underpaid work – this is a scandal – or in any case work that is detrimental to human dignity, your action is of paramount importance.
    And all this is your concrete and daily way of serving the common good, of being close to the people, of fighting corruption and promoting legality. That corruption that takes place under the table, no?
    The word ‘corrupt’ “is reminiscent of the broken heart, stained by something, the ruined heart. […] Corruption reveals an anti-social conduct so strong that it dissolves the validity of the relationships and pillars on which a society is founded”. Therefore, the answer, the alternative does not lie in norms alone, but in a “new humanism”.[1] To re-found humanity.
    The gaze of Jesus, placed on the young Matthew, says that the dignity and the life of man are the heart of the life of a people. You can contribute to the emergence of this new humanism also through your work in the service of the young people who apply to enter the Financial Police Corps and attend its schools. Initially they are perhaps looking only for a job, but they then find a specific training, which not only provides them with indispensable knowledge and experience, but also becomes education for life and the common good.
    Matthew, in a certain sense, moved from the logic of profit to that of equity. But, in the school of Jesus, he also went beyond equity and justice and came to know gratuitousness, the gift of self that generates solidarity, sharing, inclusion. Gratuitousness is not just a financial dimension, it is a human dimension. Entering into the service of others, freely, without seeking profit for oneself. Because while justice is necessary, justice is not enough to fill those gaps that only gratuitousness, charity and love can heal.
    You experience this, for example, when you organize the reception and rescue of migrants in danger in the Mediterranean: thank you for this, thank you. Or in your courageous interventions in the event of natural disasters, in Italy and elsewhere. But think of the fight against the scourge of drug trafficking, the merchants of death. Your service does not end with protection of the victims, but includes the attempt to help the rebirth of those who do wrong: indeed, by acting with respect and moral integrity you can touch consciences, showing the possibility of a different life.
    In this way to one can and must construct an alternative to the globalization of indifference – the globalization of indifference: provide an alternative to this – this globalization of indifference, which not only destroys with violence and war, but also neglects social care and the environment. In effect, the wealth of a nation is not solely in its GDP; it resides in its natural, artistic, cultural and religious heritage – and in the smile of its inhabitants, its children. Once, a head of State said to me: “I have a special measurement: the smile of children and the elderly. When both of them smile, things are not going too badly in a society”. It is curious, this … and this favours creativity, openness to the world. You yourselves are citizens who safeguard this “wealth” of Italy, but are ready to go on international missions. There is a need for this impetus to solidarity towards the other as a way to peace and as a hope for a better future!
    Brothers and sisters, I congratulate you, because you cooperate to foster the confidence and hope of the people. This people, that is all of us. And to nurture confidence, hope, smiles. I come back to this: the thermometer is, do the children smile? Do the elderly smile? Don’t forget. And this important anniversary fits well with the theme of the Jubilee that the Church is preparing to celebrate, which is “Pilgrims of Hope”. I bless you from my heart, I bless your work and families. Please, do not lose your sense of humour, please! This is healthy! And I ask you, please, to pray for me. Thank you.

    _____________________________________________________
    [1] Preface in Peter Turkson, Corrosion: combatting corruption in the Church and in society, Bologna 2017.

    MIL OSI Europe News –