Tag Archives: China

Global luxury goods sales set for largest ever fall in Bain forecast

MILAN (Reuters) – Sales of luxury goods worldwide are set to fall by 23% to 217 billion euros ($258 billion) this year, their largest ever drop and first since 2009, due to the fallout from the coronavirus pandemic, consultancy Bain said on Wednesday.

The expected decline, despite a strong sales recovery in China, is at the lower end of a 20% to 35% range which Bain’s closely followed industry forecast had predicted in May.

That is due to a bigger than expected rebound during the summer, when lockdown measures were lifted or eased across the world and stores selling high-end handbags, clothes, jewelry and watches were reopened.

However, a resurgence of the pandemic in Europe and the United States since October has led to new restrictions and shop closures while uncertainty linked to the U.S. elections also weighed on consumer sentiment.

The only bright spot is China, where sales have surged since it began to emerge from the health crisis in the spring. Sales in mainland China are seen growing by 45% at current exchange rates to 44 billion euros this year.

“We have a two-speed world, with Europe and the U.S. strongly hit by the second wave and by social and political uncertainty, while China is relentlessly accelerating day after day,” Federica Levato, a partner at Bain, said.

Fourth-quarter sales are expected to drop by 10%, although the decline could be bigger depending on how much the new shutdowns hit the crucial Christmas season.

Revenues for the likes of Louis Vuitton owner LVMH, Hermes and Prada should partly recover in 2021, although Bain says it will take until the end of 2022 or even 2023 to return to 2019 levels.

The coronavirus crisis has accelerated three trends, Bain said, with purchases online almost doubling from 12% in 2019 to 23% in 2020, and e-commerce set to become the leading channel for luxury purchases by 2025.

International travel curbs have led to people buying more in their home countries, while shoppers born from 1981 onwards now account for almost 60% of total purchases.

($1 = 0.8425 euros)

(Reporting by Silvia Aloisi and Claudia Cristoferi; Editing by Alexander Smith)

U.S. nuclear power industry group sees reprocessing as potential waste fix

WASHINGTON (Reuters) – The head of the top U.S. nuclear power group said that reprocessing of nuclear waste, a technique that has not been practiced in the United States for decades because of proliferation and cost concerns, could help address a growing problem building up at nuclear plants across the country.

“Reprocessing is a very interesting part of the solution set,” Maria Korsnick, the head of the Nuclear Energy Institute, said during an interview last week that will be part of Reuters Events Energy Transition North America on Friday. The technology “would be really closing the fuel cycle in a very useful way” because it squeezes more energy from the waste that cannot be used when it is disposed permanently.

France and other countries reprocess nuclear waste by breaking it down into uranium and plutonium and reusing it to make new reactor fuel.

But nonproliferation experts say militants could target the reprocessing supply chain, which would be far longer in the United States, to seize materials that could be used to make a crude nuclear weapon.

Former President Jimmy Carter halted reprocessing in 1977, citing proliferation concerns. President Ronald Reagan lifted Carter’s moratorium in 1981 but high costs have prevented plants from opening.

Now the United States has a growing problem with nuclear waste, currently kept at the country’s nuclear reactors, first in spent fuel pools, and then in steel and concrete casks. While about $8 billion has been spent on the Yucca Mountain permanent nuclear waste repository project in Nevada, it has never opened due to local opposition.

President Donald Trump’s administration wanted to open Yucca, but Trump began opposing it in February as the presidential campaign got under way.

Two sites in New Mexico and Texas could serve as interim nuclear waste storage sites, but local concerns are mounting that those places could become the default permanent fix.

Rita Baranwal, the top U.S. Energy Department official on nuclear power, has said it is a shame to permanently dispose of nuclear waste and that the country should look at reprocessing and potentially export the waste to countries that could do it.

Korsnick said the nuclear power industry is eager to work with the incoming administration of President-elect Joe Biden on energy issues including nuclear waste. Biden’s transition website lists driving down costs of advanced nuclear power and commercializing it as one way to fight climate change.

Korsnick also applauded a decision this summer by the Development Finance Corporation (DFC), a U.S. development agency, to lift a ban on funding nuclear projects.

She said the move would help the United States compete with Russia and China, which are also looking to export nuclear technology. The export market for U.S. advanced nuclear power technology could be worth up to $2 trillion, she said. The DFC’s move was criticized by some development experts who say bringing nuclear projects to poor countries would do little to address poverty.

On reprocessing, France has demonstrated it can be done safely, Korsnick said. “These are all conversations that we would have to step through as we design our final solution,” she said. “I’m confident that we have the technological expertise to do this well.”

(Reporting by Timothy Gardner in Washington; Editing by Matthew Lewis)

China warns of action after Pompeo says Taiwan not part of China

BEIJING/TAIPEI (Reuters) – China will strike back against any moves that undermine its core interests, its foreign ministry said on Friday, after U.S. Secretary of State Mike Pompeo said that Taiwan “has not been a part of China.”

China calls Taiwan the most sensitive and important issue in its ties with the United States, and has been angered by the Trump administration’s stepped up support for the Chinese-claimed yet democratically ruled island, such as arms sales.

Speaking in a U.S. radio interview on Thursday, Pompeo said: “Taiwan has not been a part of China”.

“That was recognized with the work that the Reagan administration did to lay out the policies that the United States has adhered to now for three-and-a-half decades,” he said.

The United States is bound by law to provide Taiwan with the means to defend itself, and officially only acknowledges the Chinese position that Taiwan is part of it, rather than explicitly recognizing China’s claims.

Speaking in Beijing, Chinese foreign ministry spokesman Wang Wenbin said Taiwan was an inalienable part of China and that Pompeo was further damaging Sino-U.S. ties.

“We solemnly tell Pompeo and his ilk, that any behavior that undermines China’s core interests and interferes with China’s domestic affairs will be met with a resolute counterattack by China,” he said, without elaborating.

China has put sanctions on U.S. companies selling weapons to Taiwan, and flew fighter jets near the island when senior U.S. officials visited Taipei this year.

The defeated Republic of China government fled to Taiwan in 1949 after loosing a civil war to the communists, who founded the People’s Republic of China.

Taiwan foreign ministry spokeswoman, Joanne Ou, thanked Pompeo for his support.

“The Republic of China on Taiwan is a sovereign, independent country, and not part of the People’s Republic of China. This is a fact and the current situation,” she said.

Taiwan officials will travel to Washington next week for economic talks, which have also annoyed Beijing.

(Reporting by Yew Lun Tian and Ben Blanchard; Editing by Robert Birsel)

Trump bans U.S. investments in companies linked to Chinese military

By Humeyra Pamuk, Alexandra Alper and Idrees Ali

WASHINGTON (Reuters) – The Trump administration on Thursday unveiled an executive order prohibiting U.S. investments in Chinese companies that Washington says are owned or controlled by the Chinese military, ramping up pressure on Beijing after the U.S. election.

The order, which was first reported by Reuters, could impact some of China’s biggest companies, including China Telecom Corp Ltd, China Mobile Ltd and surveillance equipment maker Hikvision.

The move is designed to deter U.S. investment firms, pension funds and others from buying shares of 31 Chinese companies that were designated by the Defense Department as backed by the Chinese military earlier this year.

Starting Jan. 11, the order will prohibit purchases by U.S. investors of the securities of those companies. Transactions made to divest ownership in the companies will be permitted until Nov. 11, 2021.

“China is increasingly exploiting United States capital to resource and to enable the development and modernization of its military, intelligence, and other security apparatuses,” said the order released by the White House.

The Chinese embassy in Washington did not immediately respond to a request for comment.

In a stock exchange filing, China Telecom said it estimated the executive order might impact the price of its shares, which closed down 7.8% in Hong Kong on Friday, and American depository shares, adding that it would “closely monitor” developments.

Another telecom operator, China Unicom Hong Kong Ltd, said companies affected by the order would include its parent, China United Network Communications Group Co Ltd.

China Unicom also said in its filing, it expected an impact on its shares, which fell 6.7% on Friday, and American depository shares, adding it was “considering appropriate steps to protect its and its investors’ lawful rights”.

White House trade adviser Peter Navarro estimated that at least half a trillion dollars in market capitalization was represented by the Chinese companies and their subsidiaries.

“This is a sweeping order designed to choke off American capital to China’s militarization,” he told reporters on a call.

The move is the first major policy initiative by President Donald Trump since losing the Nov. 3 election to Democratic rival Joe Biden and indicates that he is seeking to take advantage of the waning months of his administration to crack down on China, even as he has appeared laser-focused on challenging the election result.

Biden has won enough battleground states to surpass the 270 electoral votes needed in the state-by-state Electoral College that determines the next president, but Republican Trump has so far refused to concede, citing unsubstantiated claims of voting fraud.

Thursday’s action is likely to further weigh on already fraught ties between the world’s top two economies, which are at loggerheads over China’s handling of the coronavirus pandemic and its move to impose security legislation on Hong Kong.

Biden has not laid out a detailed China strategy but all the indications are that he will continue a tough approach to Beijing, with whom Trump has become increasingly confrontational in his last year in office.

WALL STREET INTERESTS

The order echoes a bill filed by Republican senator Marco Rubio last month that sought to block access to U.S. capital markets for Chinese companies that have been blacklisted by Washington, including those added to the Defense Department list.

“Today’s action by the Trump administration is a welcome start to protecting our markets and investors,” said Rubio, a top congressional China hawk. “We can never put the interests of the Chinese Communist Party and Wall Street above American workers and mom and pop investors.”

His comments were echoed by Republican Congressman Jim Banks, who described the order as “one of the wisest and most significant foreign policy decisions President Trump has made since he entered office”.

Rubio’s bill and the order are part of a growing effort by Congress and the administration to thwart Chinese companies that have the backing of U.S. investors but do not comply with U.S. rules faced by American rivals. It also shows a new willingness to antagonize Wall Street in the rivalry with Beijing.

In August, U.S. Securities and Exchange Commission and Treasury officials urged Trump to delist Chinese companies that trade on U.S. exchanges and fail to meet its auditing requirements by January 2022.

Thursday’s move received a cool reception on Wall Street, where shares were already pulling back from recent gains. The iShares China Large-Cap ETF extended falls.

“The market is probably worried that President Trump is going to increase tensions with China and Iran in his last two months as president,” said Chris Zaccarelli, Chief Investment Officer of the Independent Advisor Alliance.

Still, it was unclear how investors would react. The order bans transactions, which it defined as “purchases,” so investors would technically be able to hold onto current investments.

While the document does not spell out specific penalties for violations, it gives the Treasury Department the ability to invoke “all powers” granted by the International Emergency Economic Powers Act, which authorizes the use of tough sanctions.

Questions also remain about whether Biden, who is set to take office just nine days after the order goes into effect, would enforce it or simply revoke it. His campaign declined to comment.

(Reporting by Humeyra Pamuk, Alexandra Alper and Idrees Ali; Additional reporting by Alden Bentley, Meg Shen and Tom Daly; Editing by Chris Sanders, Edward Tobin, Rosalba O’Brien and Barbara Lewis)

In blow to WHO, EU seeks powers to declare health emergencies

By Francesco Guarascio

BRUSSELS (Reuters) – The European Commission on Wednesday proposed rules which would give the EU the power to declare a health emergency and stress test national plans to tackle pandemics, in a potential blow to the World Health Organization.

The move follows an often uncoordinated reaction by the 27 EU governments to the COVID-19 pandemic, which at the beginning of the crisis led to competition on vital medical gear and export bans on medicines.

It also comes after the WHO was criticized for having declared the pandemic, which first emerged in China at the end of last year, too late. The U.N. agency has repeatedly denied the accusation.

Under the proposals, the EU would be able to declare an EU-level public health emergency, which would in turn trigger more coordination among EU states.

Currently, the EU relies on the WHO to declare such an emergency.

“The new rules will enable the activation of EU emergency response mechanisms (..) without making it contingent upon the WHO’s own declaration of a Public Health Emergency of International Concern,” an EU document says, adding that such a move would be coordinated with the WHO.

If adopted, the overhaul would partly take away a major power from the WHO, as EU states call for reform of the organization to address shortfalls in emergencies.

“We relied too much on the WHO for the COVID-19 pandemic,” Peter Liese, a top EU lawmaker from German Chancellor Angela Merkel’s party, said.

“Under pressure from China, the WHO declared the health emergency too late. It is therefore very important to have the possibility to act at European level in future similar situations.”

The WHO, which the Trump administration has labelled a puppet of China, was not immediately available to comment.

COORDINATION ON VACCINES

Under the commission’s proposals, the EU would help governments prepare pandemic plans and would audit and stress test them, an EU document says.

EU states have traditionally been reluctant to give more powers to Brussels on the matter.

During the pandemic, they have applied different national measures on a series of issues, including testing policies for COVID-19 cases, quarantine rules and travel restrictions.

But they have shown good coordination on procuring vaccines.

If approved by EU governments and EU lawmakers, the commission said the proposals would be immediately applicable and could strengthen EU powers to tackle the current pandemic, in which most European countries are seeing a surge in cases.

Brussels wants to strengthen the EU public health agency, the European Centre for Disease Prevention and Control, whose non-binding advice, such as on the length of quarantine after contact with an infected person, has often been ignored.

It also wants more power for the EU Medicines Agency to prevent risks of shortages of medicines and medical devices.

Brussels also said it would unveil by the end of next year plans for a new health authority modelled after the U.S. Biomedical Advanced Research and Development Authority, which has played a vital role in procuring experimental dugs and vaccines.

(Reporting by Francesco Guarascio @fraguarascio; Editing by Alison Williams and Nick Macfie)

U.S. denounces terms for WHO-led inquiry into COVID origins

By Stephanie Nebehay

GENEVA (Reuters) – The United States, which has accused China of having hidden the extent of its coronavirus outbreak, called on Tuesday for a “transparent and inclusive” WHO-led international investigation into the origin of the pandemic, criticizing its current terms.

The Trump administration has accused the World Health Organization of being “China-centric” and of being its puppet, which WHO director-general Tedros Adhanom Ghebreyesus has denied.

The virus, known as SARS-CoV-2, is believed to have emerged in the Chinese central city of Wuhan late last year, possibly from bats at a market with live animals.

Chinese scientists are carrying out research into its origins and how it jumped the species barrier. A WHO-led international team formed in September is to develop plans for longer-term studies building on China’s findings, according to the WHO’s published terms of reference.

Garrett Grigsby, head of the global affairs office at the U.S. Department of Health and Human Services, told the WHO’s ministerial assembly that member states had been informed of the investigation’s terms of reference only a few days ago.

The terms were “not negotiated in a transparent way with all WHO member states” and “the investigation itself appears to be inconsistent” with its mandate, he said, without elaborating.

“Understanding the origins of COVID-19 through a transparent and inclusive investigation is what must be done to meet the mandate,” Grigsby said.

Britain called for prioritizing the probe, adding: “We expect the investigation and its outcomes to be grounded in robust science.”

Sun Yang, of China’s National Health Commission, did not mention the investigation in his speech on Tuesday, but said that China supports “WHO’s continued leadership role”.

German Health Minister Jens Spahn, speaking for the European Union on Monday, called for “full transparency and cooperation” during all phases of the investigation.

WHO’s top emergency expert Mike Ryan said on Oct. 30 that the WHO-led team and its Chinese counterparts had held a first virtual meeting regarding joint investigations and would deploy on the ground in time.

A separate independent panel said on Tuesday it was working to establish “an accurate and authoritative chronology” behind the first outbreaks and responses. Former New Zealand Prime Minister Helen Clark and former Liberian President Ellen Johnson Sirleaf were named in July to co-lead the WHO panel.

Trump announced a temporary halt to U.S. funding to the WHO in April, prompting condemnation from many world leaders. The United Nations said in July it had received formal notification of the U.S. decision to leave the body next year.

(Reporting by Stephanie Nebehay; Editing by Catherine Evans and Nick Macfie)

China, Russia hold off on congratulating Biden; U.S. allies rally round

By Cate Cadell and Dmitry Antonov

BEIJING/MOSCOW (Reuters) – China and Russia held off congratulating U.S. President-elect Joe Biden on Monday, with Beijing saying it would follow usual custom in its response and the Kremlin noting incumbent Donald Trump’s vow to pursue legal challenges.

Democrat Biden clinched enough states to win the presidency on Saturday and has begun making plans for when he takes office on Jan. 20. Trump has not conceded defeat and plans rallies to build support for legal challenges.

Some of the United States’ biggest and closest allies in Europe, the Middle East and Asia quickly congratulated Biden over the weekend despite Trump’s refusal to concede, as did some Trump allies, including Israel and Saudi Arabia.

German Chancellor Angela Merkel on Monday called for the European Union and United States to work “side by side,” holding up Biden as an experienced leader who knows Germany and Europe well and stressing the NATO allies’ shared values and interests.

Beijing and Moscow were cautious.

“We noticed that Mr. Biden has declared election victory,” China’s foreign ministry spokesman Wang Wenbin told a daily media briefing. “We understand that the U.S. presidential election result will be determined following U.S. law and procedures.”

In 2016, Chinese President Xi Jinping sent congratulations to Trump on Nov. 9, a day after the election.

Relations between China and the United States are at their worst in decades over disputes ranging from technology and trade to Hong Kong and the coronavirus, and the Trump administration has unleashed a barrage of sanctions against Beijing.

While Biden is expected to maintain a tough stance on China — he has called Xi a “thug” and vowed to lead a campaign to “pressure, isolate and punish China” — he is likely to take a more measured and multilateral approach.

Chinese state media struck an optimistic tone in editorials, saying relations could be restored to a state of greater predictability, starting with trade.

KREMLIN NOTES TRUMP’S LAW SUITS

The Kremlin said it would wait for the official results of the election before commenting, and that it had noted Trump’s announcement of legal challenges.

President Vladimir Putin has remained silent since Biden’s victory. In the run-up to the vote, Putin had appeared to hedge his bets, frowning on Biden’s anti-Russian rhetoric but welcoming his comments on nuclear arms control. Putin had also defended Biden’s son, Hunter, against criticism from Trump.

“We think it appropriate to wait for the official vote count,” Kremlin spokesman Dmitry Peskov told reporters on a conference call.

Biden cleared the threshold of 270 Electoral College votes needed to win the White House on Saturday, four days after the Nov. 3 election. He beat Trump by more than 4 million votes nationwide, making Trump the first president since 1992 to lose re-election.

Asked why, in 2016, Putin had congratulated Trump soon after he had won the Electoral College and beaten Democrat Hillary Clinton, Peskov said there was an obvious difference.

“You can see that there are certain legal procedures that have been announced by the current president. That is why the situations are different and we therefore think it appropriate to wait for an official announcement,” he said.

Peskov noted that Putin had repeatedly said he was ready to work with any U.S. leader and that Russia hoped it could establish dialogue with a new U.S. administration and find a way to normalize troubled bilateral relations.

Moscow’s ties with Washington sank to post-Cold War lows in 2014 when Russia annexed Crimea from Ukraine. Biden was serving as vice president under President Barack Obama at the time.

Relations soured further over U.S. allegations that Moscow had meddled in the 2016 U.S. presidential election to try to tilt the vote in Trump’s favor, something the Kremlin denied.

(Additional reporting by Brenda Goh, Tony Munroe and Lusha Zhang in Beijing; Darya Korsunskaya and Gabrielle Tétrault-Farber in Moscow; Sabine Siebold in Berlin; Editing by Nick Tattersall and Catherine Evans)

‘Not like prison’ – gymnasts content with COVID restrictions before Tokyo test

By Jack Tarrant

TOKYO (Reuters) – At an upscale hotel in Tokyo, gymnasts from the United States, Russia, China and Japan are getting a taste of what more than 11,000 athletes might experience when the city hosts the postponed Olympic Games next year.

They are preparing for Sunday’s meet, which will be the first international event to be held at an Olympic venue since the COVID-19 pandemic forced the Games’ postponement.

The one-off event is seen as a trial run for how international athletes may travel to and stay in Japan safely during the Games.

The 30 gymnasts are staying at the same hotel but on separate floors and have different training times to avoid contact.

“Before breakfast, we take a COVID test and they also gave us cell phones that alert us if someone has COVID (in the group),” 16-year-old eMjae Frazier, who had never previously travelled outside of the United States, told Reuters from her hotel room.

“They are being very safe and cautious but it is not like we are in prison.”

Team members are chaperoned from the team bus to their rooms and to the dining room for meals.

“The U.S. team is only allowed to be in the elevators (with the) U.S. team,” said Yul Moldauer.

“We can’t be in there with China, Russia or Japan.”

“We are on the 14th floor and we aren’t allowed beyond the 14th floor, only going down for food when it is lunch, breakfast or dinner time.”

Moldauer, who won bronze at the 2017 World Championships, said he wasn’t bored being stuck in his room and was enjoying looking at the view of Tokyo Tower from his window.

However, the 23-year-old added that he will bring a video games console if he returns for a longer period during the Olympics.

As well as daily COVID-19 tests, all gymnasts and team officials must pass through temperature checks and anti-bacterial sprays when arriving at the meet venue.

There are some benefits to the limitations, according to U.S. coach Tricia Scott.

“We have a lot more time,” she said.

“We don’t have to vie for space, taking turns on beam or taking turns on bars… so that part is very nice.”

Russian athlete Nikita Nagornyy told a virtual news conference later on Friday that he hoped this competition was a sign of things to come.

“I think that the competition we take part in shows that the Olympic Games can and should be held,” he said.

(Reporting by Jack Tarrant; Editing by Christian Radnedge)

In COVID-19 clampdown, China bars travelers from Britain, France, India

BEIJING (Reuters) – China has barred non-Chinese travelers from Britain, France, Belgium, the Philippines and India, imposing some of the most stringent entry curbs of any country as coronavirus cases surge around the world.

The restrictions, which cover those with valid visas and residence permits and take effect in conjunction with a more restrictive testing regime for arrivals from several other countries, drew a frosty response from Britain.

“We are concerned by the abruptness of the announcement and the blanket ban on entry, and await further clarification on when it will be lifted,” said the British Chamber of Commerce in China as the blanket bans were announced by the five countries’ Chinese embassies.

England started a month-long lockdown on Thursday. Britain’s virus death toll is the highest in Europe, and it is grappling with more than 20,000 new cases a day.

Belgium has Europe’s highest per capita number of new confirmed cases, while France and India are among the top five countries in the world with the most infections.

The suspensions were a partial reversal of an easing on Sept. 28, when China allowed all foreigners with valid residence permits to enter. In March, China had banned entry of foreigners in response to the epidemic.

‘SOLD OUT IN SECONDS’

Meanwhile, many people planning November visits to China scrambled to book earlier flights to circumvent potentially disruptive restrictions due to come into force for other countries from Friday.

Linyi Li, a Chinese national, had planned to fly from Seattle to China in mid-November but switched her flight to Nov. 6 even though fares had tripled.

“The tickets were sold out in seconds, as people were all scrambling to beat the deadline,” said Li, 30. “I’ve been rushing to sell many of my family belongings in the past days in case I can’t get back to the States.”

From Friday, all passengers from the United States, France, Germany and Thailand bound for mainland China must take a nucleic acid test and a blood test for antibodies against the coronavirus no more than 48 hours before boarding.

Flights scheduled for Friday are not covered by the new rule, since passengers would have done their tests before that day under previous requirements.

China also plans to impose dual-test requirements on travelers from Australia, Singapore and Japan from Nov. 8.

The European Union Chamber of Commerce in China said the antibody test was not widely available in many countries.

“(So) unfortunately, while technically leaving the door open, these changes imply a de facto ban on anyone trying to get back to their lives, work and families in China,” said the European Union Chamber of Commerce in China.

On Tuesday, China Southern Airlines, the country’s biggest carrier by passenger load, said it would suspend transit services for passengers embarking from 21 countries, mostly African and Asian countries and including India and the Philippines.

The number of weekly international passenger flights serving mainland China from late October through March is set to slump 96.8% from a year earlier to 592, the latest schedules show.

(Reporting by Ryan Woo, Lusha Zhang, Dominique Patton, Stella Qiu, Gabriel Crossley, Martin Pollard and Shivani Singh; Editing by Jacqueline Wong and John Stonestreet)

As America counts, the world holds its breath for U.S. election outcome

By Luke Baker, Libby George and Daria Sito-Sucic

LONDON/LAGOS/SARAJEVO (Reuters) – A day after Americans voted in a bitterly contested election, the rest of the world was none the wiser on Wednesday, with millions of votes still to count, the race too close to call and a mounting risk of days or even weeks of legal uncertainty.

Donald Trump’s pre-emptive declaration of victory at the White House was condemned by some U.S. political commentators and civil rights groups, who warned about the trampling of long-standing democratic norms.

Most world leaders and foreign ministers sat on their hands, trying not to add any fuel to the electoral fire.

“Let’s wait and see what the outcome is,” said British Foreign Secretary Dominic Raab. “There’s obviously a significant amount of uncertainty. It’s much closer than I think many had expected.”

But while Raab and others urged caution, the Slovenian prime minister broke ranks, congratulating Trump and the Republican party via Twitter.

“It’s pretty clear that American people have elected @realDonaldTrump and @Mike_Pence for #4moreyears,” wrote Janez Jansa, one of several east European leaders, including Hungary’s Viktor Orban, who are fervent Trump allies. “Congratulations @GOP for strong results across the #US.”

The latest vote tally showed Democrat challenger Joe Biden with a lead in the Electoral College – 224 votes to 213, with 270 needed for victory – but with counting still be completed in at least five major ‘battleground’ states: Pennsylvania, Michigan, Wisconsin, North Carolina and Georgia.

In 2000, the election between George W. Bush and Al Gore hinged on Florida. It was ultimately decided in Bush’s favor by the U.S. Supreme Court, in a ruling five weeks after the vote.

In his comments, Trump suggested the Supreme Court – to which he has nominated three of the nine justices – would have to decide the winner again.

On Twitter, the hashtags #Trump, #Biden and #USElections2020 were trending from Russia to Pakistan, Malaysia to Kenya and across Europe and Latin America, underscoring how much every region of the world sees the outcome as pivotal.

In Russia, which U.S. intelligence agencies have accused of trying to interfere in the election, there was no official reaction.

But Pro-Kremlin lawmaker Vyacheslav Nikonov, the grandson of Stalin’s foreign minister, advised Russians to stock up on popcorn to watch the show he predicted was about to unfold, saying U.S. society was fatally split.

“The result of the elections is the worst outcome for America,” Nikonov, who welcomed Trump’s 2016 win, wrote on Facebook. “Whoever wins the legal battles half of Americans will not consider them the lawful president. Let’s stock up on large quantities of popcorn.”

‘IT AFFECTS US ALL’

In Australia, crowds watched the results roll in while drinking beer in an American bar in Sydney.

“The news is so much better when Trump is in,” said Glen Roberts, wearing a red ‘Make Europe Great Again’ baseball cap. “You never know what he said, it’s so good. I think it’ll be less interesting if Trump loses.”

Others were quick to underline the ramifications of the U.S. vote worldwide. “I think it affects us all, what happens over there really matters for the next four years over here,” said Sydney resident Luke Heinrich.

New York-based Human Rights Watch, one of the world’s leading civil rights groups, warned about the need to reserve judgment on the results until every vote is counted. With a very high number of mail-in ballots this year because of the Covid-19 pandemic, full tallies are expected to take days in some states.

Executive director Kenneth Roth said premature declarations of victory were dangerous.

“Autocrats might be perfectly happy to undermine democracy in the United States by welcoming a premature declaration of victory,” he said.

China, whose relations with the United States have sunk to their worst in decades under Trump, said the election was a domestic affair and it had “no position on it”.

Chinese social media users, however, were quick to mock the failure of the U.S. electoral system to deliver a quick and clear result.

“Whether he wins or loses, his final mission is to destroy the appearance of American democracy,” one user on China’s Twitter-like Weibo platform wrote on Wednesday.

“Let Trump be re-elected and take the U.S. downhill,” another wrote.

In Nigeria, one leading politician, Senator Shehu Sani, said the uncertainty in the United States was reminiscent of Africa.

“Africa used to learn American democracy, America is now learning African democracy,” he tweeted to his 1.6 million followers.

(Reporting by Luke Baker in London, Libby George in Lagos and Daria Sito-Sucic; Additional reporting by Stephanie Ulmer-Nebehay in Geneva, Crispian Balmer in Rome, Justyna Pawlak in Warsaw, Andrew Osborn in Moscow, Gabriela Baczynska in Brussels and Tony Munroe and Gao Liangping in Beijing; Editing by Alex Richardson)