IEA says oil demand recovery set to slow for rest of 2020

By Noah Browning

LONDON (Reuters) – The International Energy Agency (IEA) trimmed its 2020 oil demand forecast on Tuesday, citing caution about the pace of economic recovery from the pandemic.

The Paris-based IEA cut its 2020 outlook by 200,000 barrels per day (bpd) to 91.7 million bpd in its second downgrade in as many months.

“We expect the recovery in oil demand to decelerate markedly in the second half of 2020, with most of the easy gains already achieved,” the IEA said in its monthly report.

“The economic slowdown will take months to reverse completely … in addition, there is the potential that a second wave of the virus (already visible in Europe) could cut mobility once again.”

Renewed rises in COVID-19 cases in many countries and related lockdown measures, continued remote working and a still weak aviation sector are all hurting demand, the IEA said.

China – which emerged from lockdown sooner than other major economies and provided a strong prop to global demand – continues a strong recovery, while a virus upsurge in India contributed to the biggest demand drop since April, the IEA said.

Increasing global oil output and the downgraded demand outlook also mean a slower draw on crude oil stocks which piled up at the height of lockdown measures, it added.

The agency now predicts implied stock draws in the second half of the year of about 3.4 million barrels per day, nearly one million bpd less than it predicted last month, with July storage levels in developed countries again reaching record highs.

However, preliminary data for August showed industry crude oil stocks fell in the United States, Europe and Japan.

As output cuts eased among producers from the Organization of the Petroleum Exporting Countries (OPEC) and allies such as Russia, global oil supply rose by 1.1. million bpd in August.

After two months of increases, recovery among countries outside the OPEC+ pact stalled, with production in the United States falling 400,000 bpd as Hurricane Laura forced shut-ins.

(Reporting by Noah Browning; editing by Jason Neely)

Pandemic preparedness panel slams collective failure to heed warnings

By Kate Kelland

LONDON (Reuters) – A collective failure by political leaders to heed warnings and prepare for an infectious disease pandemic has transformed “a world at risk” to a “world in disorder,” according to a report on international epidemic preparedness.

“Financial and political investments in preparedness have been insufficient, and we are all paying the price,” said the report by The Global Preparedness Monitoring Board (GPMB).

“It is not as if the world has lacked the opportunity to take these steps,” it said. “There have been numerous calls for action … yet none has generated the changes needed.”

The GPMB, co-convened by the World Bank and the World Health Organization (WHO), is co-chaired by former WHO director-general Gro Harlem Brundtland.

The board’s 2019 report, released a few months before the novel coronavirus emerged in China, said there was a real threat of “a rapidly spreading pandemic due to a lethal respiratory pathogen” and warned such an event could kill millions and wreak havoc on the global economy.

This year’s report – entitled “A World in Disorder” – said world leaders had never before “been so clearly forewarned of the dangers of a devastating pandemic”, and yet they had failed to take adequate action.

“Tragically and catastrophically, we have seen our worst fears realized,” Brundtland told a media briefing on Monday. “The impact of COVID-19 is even worse than we anticipated.”

The COVID-19 pandemic has exposed “a collective failure to take pandemic prevention, preparedness and response seriously and prioritize it accordingly,” the report said.

“Pathogens thrive in disruption and disorder. COVID-19 has proven the point.”

The report noted that despite calling a year ago for heads of government to commit and invest in pandemic preparedness, for health systems to be strengthened and for financial risk planning to take seriously the threat of a devastating pandemic, little progress had been made on any of these.

A lack of leadership, it said, was exacerbating the current pandemic. “Failure to learn the lessons of COVID-19 or to act on them with the necessary resources and commitment will mean that the next pandemic, which is sure to come, will be even more damaging,” it said.

Jeremy Farrar, director of the Wellcome Trust global health charity and a member of the monitoring board, urged leaders not to repeat the same mistakes. “This needs more than warm words of solidarity,” he said. “This needs a moment of visionary, historic, political and financial leadership.”

(Reporting by Kate Kelland, Editing by William Maclean and Alex Richardson)

China imposes curbs on U.S. diplomats in response to U.S. move

BEIJING (Reuters) – China on Friday said it had imposed restrictions on staff at the U.S. Embassy and its consulates in mainland China and Hong Kong, responding to U.S. measures announced early this month.

China’s Foreign Ministry did not specify the measures, which it described as reciprocal.

Last week, Washington said it would require senior Chinese diplomats to get State Department approval before visiting university campuses or holding cultural events with more than 50 people outside mission grounds, which it had said were a response to China’s restrictions on American diplomats.

(Reporting by Lusha Zhang and Tony Munroe; Editing by Kevin Liffey)

Taiwan denounces large-scale Chinese drills near island

By Yimou Lee and Ben Blanchard

TAIPEI (Reuters) – Taiwan denounced China on Thursday over large-scale air and naval drills off its southwestern coast which it called a serious provocation and a threat to international air traffic.

It urged Beijing to rein in its armed forces.

China, which claims democratic Taiwan as its own, has stepped up military exercises near the island, in what Taipei views as intimidation to force it to accept Chinese rule.

Yeh Kuo-hui, from Taiwan’s defense ministry’s operations and planning department, told a hastily-arranged news conference that China’s intentions could not be predicted.

“We must make all preparations for war readiness,” Yeh said, following a news briefing from senior officers describing the Chinese activities over the last two days, and showing a map of Chinese movements.

The drills took place in Taiwan’s air defense identification zone, between mainland Taiwan and the Taiwan-controlled Pratas Islands, the ministry said. Taiwan says China sent advanced Su-30 and J-10 fighters to participate.

Taiwan Deputy Defense Minister Chang Che-ping said the drills threatened regional stability and endangered international aviation, he said.

“We once again say, do not underestimate the military’s determination to defend our home. We are confident and capable of defending the country,” Chang said.

Taiwan’s Foreign Ministry said the government had shared “information related to China’s threat to key friendly nations”, a likely reference to the United States, Taiwan’s main arms supplier and most important international backer.

China’s defense ministry did not respond to a request for comment. China has held numerous military exercises up and down its coast and near the island in recent weeks.

Taiwan has this week been carrying out live-fire weapons tests off its southeast and eastern coast.

Taiwan President Tsai Ing-wen has warned of a rising risk of accidental conflict, saying communication must be maintained to cut the risk of miscalculation.

(Reporting By Yimou Lee and Ben Blanchard; Editing by Michael Perry and Timothy Heritage)

Germans fear Trump more than coronavirus, survey shows

BERLIN (Reuters) – Germans are more afraid of the policies of U.S. President Donald Trump than of the coronavirus which has wreaked havoc on Europe’s biggest economy, an annual survey of German attitudes showed on Thursday.

Fears that Trump’s policies would make the world a more dangerous place eclipsed economic worries, with 53% of those asked putting him top of their list, according to the survey conducted in June and July for the R+V Insurance Group.

Rising living costs, the economic situation and the cost to taxpayers of European Union debt came second, third and fourth for traditionally cautious Germans.

The coronavirus took 17th spot and only around a third of those asked said they were concerned that they or someone they knew well would get COVID-19.

Germany has kept the number of COVID-19 cases and deaths relatively low compared with some of its European neighbors, but new infections are rising again.

The survey did not give details on which aspects of Trump’s policies worried Germans but R+V quoted political scientist Manfred Schmidt of the Ruprecht-Karls-University in Heidelberg as blaming his foreign policy.

“Particularly notable are the trade-war-like conflicts with China and trade and security policy attacks against allies, including Germany. In addition, the withdrawal of the United States from international cooperation and the confrontation with Iran,” said Schmidt who advises R+V on the annual survey.

Some 2,400 people were questioned for the “Fears of Germans” survey, which has been conducted since 1992.

(Reporting by Madeline Chambers, editing by Emma Thomasson and Catherine Evans)

U.S. says blocking visas of some Chinese graduate students and researchers

By David Brunnstrom and Ryan Woo

WASHINGTON/BEIJING (Reuters) – The United States is blocking visas for certain Chinese graduate students and researchers to prevent them from stealing sensitive research, the acting head of the U.S. Department of Homeland Security, said on Wednesday.

Chad Wolf repeated U.S. charges of unjust business practices and industrial espionage by China, including attempts to steal coronavirus research, and accused it of abusing student visas to exploit American academia.

“We are blocking visas for certain Chinese graduate students and researchers with ties to China’s military fusion strategy to prevent them from stealing and otherwise appropriating sensitive research,” he said in a speech in Washington.

Wolf said the United States was also “preventing goods produced from slave labor from entering our markets, demanding that China respect the inherent dignity of each human being,” an apparent reference to alleged abuses of Muslims in China’s Xinjiang region.

Wolf did not give details.

U.S. Customs and Border Protection officials have prepared orders to block imports of cotton and tomato products from Xinjiang over accusations of forced labor, though a formal announcement has been delayed.

Sino-U.S. relations have sunk to historic lows with the world’s two biggest economies clashing over issues ranging from trade and human rights to Hong Kong and the coronavirus.

Earlier, some Chinese students enrolled in U.S. universities said they received emailed notices from the U.S. embassy in Beijing or U.S. consulates in China on Wednesday informing them that their visas had been canceled.

Nearly 50 students holding F-1 academic visas including postgraduates and undergraduates said in a WeChat chatroom the notices stated they would have to apply for new visas if they wanted to travel to the United States.

Many in the chatroom said they were majoring in subjects such as science, technology, engineering and mathematics. Some said they were postgraduates who obtained bachelor’s degrees at Chinese universities with links to the People’s Liberation Army.

In late May, sources with knowledge of the matter told Reuters Washington was planning to cancel the visas of thousands of Chinese graduate students believed to have links to China’s military.

(Reporting by David Brunnstrom in Washington, Ryan Woo in Beijing; Editing by Richard Chang)

U.S. to require approvals on work of Chinese diplomats in America

By Humeyra Pamuk and David Brunnstrom

WASHINGTON (Reuters) – The United States said on Wednesday it would now require senior Chinese diplomats to get State Department approval before visiting U.S. university campuses and holding cultural events with more than 50 people outside mission grounds.

Washington cast the move as a response to what it said was Beijing’s restrictions on American diplomats based in China. It comes as part of a Trump administration campaign against alleged Chinese influence operations and espionage activity.

The State Department said it also would take action to help ensure all Chinese embassy and consular social media accounts were “properly identified.”

“We’re simply demanding reciprocity. Access for our diplomats in China should be reflective of the access that Chinese diplomats in the United States have, and today’s steps will move us substantially in that direction'” U.S. Secretary of State Mike Pompeo told a news briefing.

It was the latest U.S. step to restrict Chinese activity in the United States in the run-up to the November presidential election, in which President Donald Trump has made a tough approach to China a key foreign policy platform.

Pompeo also said Keith Krach, the State Department’s undersecretary for Economic Growth, had written recently to the governing boards of U.S. universities alerting them to threats posed by the Chinese Communist Party.

“These threats can come in the form of illicit funding for research, intellectual property theft, intimidation of foreign students and opaque talent recruitment efforts,” Pompeo said.

He said universities could ensure they had clean investments and endowment funds, “by taking a few key steps to disclose all (Chinese) companies’ investments invested in the endowment funds, especially those in emerging-market index funds.”

On Tuesday, Pompeo said he was hopeful Chinese Confucius Institute cultural centers on U.S. university campuses, which he accused of working to recruit “spies and collaborators,” would all be shut by the end of the year.

Last month, Pompeo labeled the center that manages the dozens of Confucius Institutes in the United States “an entity advancing Beijing’s global propaganda and malign influence” and required it to register as a foreign mission.

The State Department announced in June it would start treating four major Chinese media outlets as foreign embassies, calling them mouthpieces for Beijing.

It took the same step against five other Chinese outlets in February, and in March said it was slashing the number of journalists allowed to work at U.S. offices of major Chinese media outlets to 100 from 160 due to Beijing’s “long-standing intimidation and harassment of journalists.”

(Reporting by Humeyra Pamuk and David Brunnstrom; Editing by Chizu Nomiyama and Bill Berkrot)

Steroids cut death rates among critically ill COVID-19 patients, major study finds

By Kate Kelland

LONDON (Reuters) – Treating critically ill COVID-19 patients with corticosteroid drugs reduces the risk of death by 20%, an analysis of seven international trials found on Wednesday, prompting the World Health Organisation to update its advice on treatment.

The analysis – which pooled data from separate trials of low dose hydrocortisone, dexamethasone and methylprednisolone – found that steroids improve survival rates of COVID-19 patients sick enough to be in intensive care in hospital.

“This is equivalent to around 68% of (the sickest COVID-19) patients surviving after treatment with corticosteroids, compared to around 60% surviving in the absence of corticosteroids,” the researchers said in a statement.

The WHO’s clinical care lead, Janet Diaz, said the agency had updated its advice to include a “strong recommendation” for use of steroids in patients with severe and critical COVID-19.

“The evidence shows that if you give corticosteroids …(there are) 87 fewer deaths per 1,000 patients,” she told a WHO social media live event. “Those are lives … saved.”

“Steroids are a cheap and readily available medication, and our analysis has confirmed that they are effective in reducing deaths amongst the people most severely affected by COVID-19,” Jonathan Sterne, a professor of medical statistics and epidemiology at Britain’s Bristol University who worked on the analysis, told the briefing.

He said the trials – conducted by researchers in Britain, Brazil, Canada, China, France, Spain, and the United States – gave a consistent message throughout, showing the drugs were beneficial in the sickest patients regardless of age or sex or how long patients had been ill.

The findings, published in the Journal of the American Medical Association, reinforce results that were hailed as a major breakthrough and announced in June, when dexamethasone became the first drug shown to be able to reduce death rates among severely sick COVID-19 patients.

Dexamethasone has been in widespread use in intensive care wards treating COVID-19 patients in some countries since then.

Martin Landray, a professor of medicine and epidemiology at the University of Oxford who worked on the dexamethasone trial that was a key part of the pooled analysis published on Wednesday, said the results mean doctors in hospitals across the world can safely switch to using the drugs to save lives.

CLEAR BENEFITS

“These results are clear, and instantly usable in clinical practice,” he told reporters. “Among critically ill patients with COVID-19, low-dose corticosteroids … significantly reduce the risk of death.”

Researchers said the benefit was shown regardless of whether patients were on ventilation at the time they started treatment. They said the WHO would update its guidelines immediately to reflect the fresh results.

Until the June findings on dexamethasone, no effective treatment had been shown to reduce death rates in patients with COVID-19, the respiratory disease caused by the new coronavirus.

More than 25 million people have been infected with COVID-19 and 856,876​ have died, according to a Reuters tally.

Gilead Sciences Inc’s remdesivir was authorized by United States regulators in May for use in patients with severe COVID-19 after trial data showed the antiviral drug helped shorten hospital recovery time.

Anthony Gordon, an Imperial College London professor who also worked on the analysis, said its results were good news for patients who become critically ill with COVID-19, but would not be enough to end outbreaks or ease infection control measures.

“Impressive as these results are, this is not a cure. We now have something that will help, but it is not a cure, so it’s vital that we keep up all the prevention strategies.”

(Reporting by Kate Kelland; Editing by Mark Heinrich and Catherine Evans)

Special Report: Pentagon’s latest salvo against China’s growing might – Cold War bombers

By David Lague

HONG KONG (Reuters) – On July 21, two U.S Air Force B-1B bombers took off from Guam and headed west over the Pacific Ocean to the hotly contested South China Sea. The sleek jets made a low-level pass over the aircraft carrier USS Ronald Reagan and its escorting fleet, which was exercising nearby in the Philippines Sea, according to images released by the U.S. military.

The operation was part of the Trump administration’s intensifying challenge to China’s ruling Communist Party and its sweeping territorial claims over one of the world’s most important strategic waterways. While senior Trump officials launch diplomatic and rhetorical broadsides at Beijing, the U.S. Defense Department is turning to the firepower of its heavily armed, long-range bombers as it seeks to counter Beijing’s bid to control the seas off the Chinese coast.

Since late January, American B-1B and B-52 bombers, usually operating in pairs, have flown about 20 missions over key waterways, including the South China Sea, the East China Sea and the Sea of Japan, according to accounts of these flights from U.S. Air Force statements and official social media posts. These missions, military analysts say, are designed to send a crystal-clear signal: The United States can threaten China’s fleet and Chinese land targets at any time, from distant bases, without having to move America’s aircraft carriers and other expensive surface warships within range of Beijing’s massive arsenal of missiles.

In this response to the growing power of China’s military, the Pentagon has combined some of its oldest weapons with some of its newest: Cold War-era bombers and cutting-edge, stealthy missiles. The supersonic B1-B first entered service in 1986; the newest plane in the B-52 fleet was built during the Kennedy administration. But these workhorses can carry a huge payload of precision weapons. A B-1B can carry 24 of the U.S. military’s stealthy new Long Range Anti-Ship Missiles, which entered service in 2018 and can strike targets at ranges of up to 600 kilometers, according to U.S. and other Western officials.

“A single B-1 can deliver the same ordnance payload as an entire carrier battle group in a day,” said David Deptula, dean of the Washington-based Mitchell Institute for Aerospace Studies and a retired U.S. Air Force Lieutenant General. And, in a crisis, he added, bombers can be rapidly deployed.

“Depending on where they are, ships can take weeks to get in place,” said Deptula. “But by using bombers, they can respond in a matter of hours,” he adds, noting that the U.S. object is to deter war. “Nobody wants to engage in conflict with China.”

Chinese and western military strategists warn that a conflict between the two nuclear-armed powers could be difficult to contain.

In a clash with China, this fast response from the bomber force could be vital while the U.S. and its allies rush naval reinforcements to the Pacific to bolster the vastly outnumbered U.S. naval fleet stationed in the region, according to current and former U.S. and other Western military officers.

A spokeswoman for Pacific Air Forces, Captain Veronica Perez, said the U.S. Air Force had increased its publicity about its bomber missions to assure allies and partners of Washington’s commitment to global security, regional stability and a free and open Indo-Pacific. “Though the frequency and scope of our operations vary based on the current operating environment, the U.S. has a persistent military presence and routinely operates throughout the Indo-Pacific,” she said.

China’s defense ministry did not respond to questions from Reuters.

LOWEST POINT

While the bomber missions continue, relations between Washington and Beijing have reached their lowest point since the 1989 Tiananmen crackdown. In a show of force, Chinese fighter jets crossed the mid-line of the Taiwan Strait while U.S. Secretary for Health, Alex Azar, was visiting Taipei on Aug. 10 to congratulate the government of President Tsai Ing-wen on its successful containment of the COVID-19 virus. Azar was the most senior American official to visit Taiwan in four decades.

Taiwan’s missile radars tracked the Chinese fighters in only the third such incursion across the median line since 2016, the Taiwanese government said. Beijing condemned the visit. It regards the island as a province of China and hasn’t ruled out the use of force to bring it under Communist Party control.

In a series of speeches ahead of Azar’s visit, top Trump officials had hammered China on multiple fronts, including its military build-up, territorial ambitions, domestic political repression, intellectual property theft, espionage, trade practices and its failure to alert the world to the danger of COVID-19.

In one of the most harshly worded attacks on China from an American official in decades, U.S. Secretary of State Mike Pompeo said on July 23 that China’s military, the People’s Liberation Army (PLA), was not a normal fighting force.

“Its purpose is to uphold the absolute rule of the Chinese Communist Party elites and expand a Chinese empire, not protect the Chinese people,” he said. “And so our Department of Defense has ramped up its efforts, freedom of navigation operations out and throughout the East and South China Seas and in the Taiwan Strait as well.” In July, Pompeo declared most of Beijing’s claims of sovereignty over the South China Sea illegal.

With the combination of bombers and long-range missiles, the United States is trying to turn the tables on the PLA. Over more than two decades, China has assembled a force of ground, sea and air-launched missiles that would make it deadly for warships of the U.S. Navy and its allies to approach the Chinese coast in a conflict. This Chinese strategy is specifically tailored to threaten U.S. aircraft carrier battle groups and the network of bases that form the backbone of American power in Asia.

In a demonstration of this capability, the PLA launched one of its so-called carrier-killer missiles, the DF-26, in an exercise in the South China Sea following the deployment in July of two U.S. aircraft carriers to the area, China’s official military media reported in early August. And a U.S. defense official told Reuters that on Aug. 26, China launched four medium-range ballistic missiles that hit the South China Sea between Hainan Island and the Paracel Islands.

But the PLA Navy’s huge and rapidly expanding fleet is also vulnerable to long-range missiles. China has built the world’s biggest navy, including new aircraft carriers, amphibious assault ships and powerful cruisers and destroyers. And the PLA’s extensive network of bases and ports would also be targets for missiles.

In a conflict, U.S. bombers over the Western Pacific could target PLA Navy warships at their bases on the Chinese coast or underway inside the so-called first island chain, the string of islands that run from the Japanese archipelago through Taiwan, the Philippines and on to Borneo, enclosing China’s coastal seas. Chinese warships would be even more vulnerable if they broke out through the island chain into the Western Pacific, outside the coverage of the PLA’s land-based air defenses and strike aircraft.

THE FIREPOWER GAP

In the aftermath of the Cold War, Washington assumed it had uncontested control of the oceans and neglected to arm its surface fleet with modern, long-range anti-ship missiles. To be sure, the U.S. and its allies, particularly Japan, still have a powerful fleet of attack submarines that would pose a deadly menace to PLA warships. But the bombers help fill the firepower gap in the U.S. surface fleet while the Pentagon is re-purposing existing missiles and introducing new versions to its destroyers and cruisers, according to maritime strategists.

The bomber deployments are one element of a much wider reshaping of forces and tactics that the U.S. and its allies in East Asia have launched to deter China from attacking Taiwan, expanding its hold over the South China Sea or seizing other disputed territories. These include the uninhabited group of isles in the East China Sea known as the Senkaku Islands in Japan and the Diaoyu Islands in China, which are claimed by both Tokyo and Beijing.

Tensions are on the rise around these islands, now under Japanese control. The commander of U.S. forces in Japan, Lieutenant General Kevin Schneider, pledged in July that America would help Japan monitor “unprecedented” Chinese incursions into waters around the Senkakus that were challenging Tokyo’s administration. Within an hour of Schneider’s comments, China’s foreign ministry fired back that the islands were “Chinese territory.”

Long-range U.S. bombers operating from distant airfields would remain a threat if Chinese missile attacks disabled key U.S. bases in Japan, South Korea and Guam. These bases, mostly a carry-over from World War Two and the Korean War, were built at a time when China had very limited means to attack them.

Now it does. In a clear acknowledgement that Guam is now at risk, the U.S. Air Force announced on April 17 it would end its continuous rotation of bombers to the island base and withdraw them to the U.S. mainland.

The absence of a permanent bomber presence at Guam is a blow to Washington’s ability to deter China and North Korea, air power experts say. The island in the Western Pacific is less than a five-hour flight from the South China Sea.

“It makes it look like the Chinese military build-up has worked,” said Peter Layton, a visiting fellow at Griffith University in Australia and a retired Australian air force Group Captain who has worked at the Pentagon. “They are now taken out of range.”

Since then, the United States has sent bombers to Guam for short-term deployments from their continental bases. U.S. air power researchers suggest that the availability of better training facilities at mainland U.S. bases was also a factor in the decision to withdraw the bombers. But in further evidence of Guam’s vulnerability, the head of the U.S. Indo-Pacific Command, Admiral Philip Davidson, has asked Congress to fund a powerful missile defense system for the island by 2026.

Another hurdle for the Pentagon: America’s bomber force is shrinking just as the PLA challenge grows. From a force of more than 400 at the end of the Cold War, the U.S. bomber fleet has shrunk to 158 aircraft. Of those planes, 62 are B-1Bs and 76 are B-52S. The United States also has a smaller force of 20 newer B-2 stealth bombers.

The air force plans to retire 17 B-1Bs next year to concentrate resources on the remaining bombers until the planned introduction of a new generation of stealthy bomber, the B-21, toward the end of this decade. This bomber is expected to sharply improve the U.S. Air Force’s ability to penetrate Chinese airspace. Northrop Grumman is now building the first prototype, according to air force officials.

‘NOT LIKE FIGHTING SADDAM’

As the risk of conflict rises, some Western air power experts doubt that U.S. bombers would deliver a decisive advantage in a clash with the PLA. They say the Chinese military has spent decades preparing formidable, integrated air defenses. Even if the U.S. bombers were able to sink PLA Navy warships and stealthily penetrate Chinese airspace to strike some ground targets, they say it would not necessarily translate into victory against a vast and powerful adversary.

And, they warn, it might be impossible to fight a limited conflict on China’s periphery. “It is not like fighting Saddam Hussein, it would be a major world war,” said Layton, the retired Australian air force officer. “Both sides have nuclear weapons and there is the potential for escalation. If either side is losing, what is going to happen then?”

Alongside relying on its bombers, the United States has been forced to develop other plans to offset the Chinese missile and naval threat. The U.S Marine Corps is planning to disperse smaller units armed with long-range anti-ship and land-attack missiles through the first island chain, where they could threaten the Chinese navy and land targets on China’s mainland.

The U.S. Army also intends to spread forces through the first island chain and other outposts in the Western Pacific. It is planning a series of major exercises this year and next where troops would deploy to islands in the region, according to senior commanders and top Pentagon officials.

New weapons are in the pipeline that would give specially formed army task force units the firepower to strike at Chinese warships and other targets in a conflict. The U.S. Army’s top commander, General James McConville, told an online seminar hosted by the Washington-based Center for Strategic and International Studies in late July that a very long-range hyper sonic missile was under development and tests had been successful. And soldiers would have the tools to attack an enemy’s navy. “We are going to have mid-range missiles that can sink ships,” McConville said.

The U.S. and its allies also intend to link all their surveillance systems and weapons together in a regional network so that tracking information about a target could be shared between radar stations, satellites, surface warships, submarines, aircraft and land forces. In this system, a stealth fighter flying from a carrier could detect an enemy warship and relay this information to an army unit on an island, which could attack the foe with an anti-ship missile.

On May 21, two U.S. B-1B bombers from Guam flew to an area near Misawa Air Base in Japan, where they conducted long-range anti-ship missile training with a P-8 Poseidon maritime surveillance aircraft and the aircraft carrier USS Ronald Reagan, according to a U.S. Pacific Air Force statement. This exercise demonstrated that the U.S. had the capability to “hold any target at risk, anytime and anywhere,” said Perez, the Pacific Air Forces spokeswoman.

The ships and aircraft involved in this exercise likely practiced the sharing of target information to mount a simulated attack, according to U.S. and Asian military experts. On other missions this year, the American bombers have held joint exercises with U.S., Japanese and South Korean fighters.

CHINESE AIRSPACE

In this networked battlefield, the Pentagon’s old warhorses of the air would be an even more formidable rival.

The speed and range of America’s Cold War-vintage bombers would allow them to approach Chinese targets from different directions and fire salvos of difficult-to-detect missiles at multiple ships, according to current and retired U.S. air force officers. With even longer range missiles that Washington has in the pipeline, such attacks could be mounted from well outside the range of China’s powerful, land-based air defenses. American bombers can also drop precision-guided mines to block strategically important ocean passages or ports.

And the U.S. B-2 stealth bombers could penetrate more deeply into Chinese airspace and attack key targets with sharply less chance of detection than the older bombers. These bombers already carry a heavy payload of precision, land-attack munitions and could also be configured to carry the Long Range Anti-Ship Missile.

A B-1B could take off from the continental United States, refuel from tanker aircraft en route, and arrive over the Western Pacific in about 15 hours, according to Deptula and other military aviation analysts. From Hawaii the trip would take about nine hours, they say. Even closer, from northern Australia, the transit would take six hours without refueling.

The Australian government announced in February it would spend $814 million upgrading a key air base at Tindal in the Northern Territory, including a major extension to its runway. Part of the reason for the upgrade is to support expanded U.S. Air Force operations, the Australian government said. American bombers are already using the base.

The B-1B originally served as a nuclear bomber. That role has been phased out. It now carries around 34 metric tonnes (75,000 pounds) of conventional guided and unguided weapons, the biggest payload of any U.S. aircraft. In the military operations launched after the attacks of Sept. 11, 2001, these bombers were flown hard for almost two decades to provide ground support to American and allied troops in the Middle East and Afghanistan.

With the Pentagon having turned its competitive sights on China, the B-1B is now increasingly employed as a ship killer. In future, it could also be armed with a new hyper sonic missile, the Air-Launched Rapid Response Weapon (ARRW), now in testing, and a new long-range cruise missile, according to senior U.S. Air Force commanders. Hyper sonic missiles traveling at more than five times the speed of sound would be hard to intercept.

The B-52 is an even older icon of American might, in service since the mid-1950’s. It carries a slightly smaller payload than the B-1B. As part of this weapons load, it can be armed with up to 14 upgraded versions of the Cold War-era Harpoon anti-ship missile. And, it could also be configured in future to carry 20 Long Range Anti-Ship Missiles, according to air power experts. Along with the B-2, the B-52 can also launch nuclear missiles.

While these older bombers remain potent, American air power experts say a strong force of B-21 stealth bombers will be much more effective when they begin entering service later this decade. The new bomber is being developed in a highly classified program. “All the indications are that it is proceeding well in the development phases,” said Deptula.

(Reporting by David Lague in Hong Kong. Edited by Peter Hirschberg.)

Scientists see downsides to top COVID-19 vaccines from Russia, China

By Allison Martell and Julie Steenhuysen

TORONTO/CHICAGO (Reuters) – High-profile COVID-19 vaccines developed in Russia and China share a potential shortcoming: They are based on a common cold virus that many people have been exposed to, potentially limiting their effectiveness, some experts say.

CanSino Biologics’ vaccine, approved for military use in China, is a modified form of adenovirus  type 5, or Ad5. The company is in talks to get emergency approval in several countries before completing large-scale trials, the Wall Street Journal reported last week.

A vaccine developed by Moscow’s Gamaleya Institute, approved in Russia earlier this month despite limited testing, is based on Ad5 and a second less common adenovirus.

“The Ad5 concerns me just because a lot of people have immunity,” said Anna Durbin, a vaccine researcher at Johns Hopkins University. “I’m not sure what their strategy is … maybe it won’t have 70% efficacy. It might have 40% efficacy, and that’s better than nothing, until something else comes along.”

Vaccines are seen as essential to ending the pandemic that has claimed over 845,000 lives worldwide. Gamaleya has said its two-virus approach will address Ad5 immunity issues.

Both developers have years of experience and approved Ebola vaccines based on Ad5. Neither CanSino nor Gamaleya responded to requests for comment.

Researchers have experimented with Ad5-based vaccines against a variety of infections for decades, but none are widely used. They employ harmless viruses as “vectors” to ferry genes from the target virus – in this case the novel coronavirus – into human cells, prompting an immune response to fight the actual virus.

But many people already have antibodies against Ad5, which could cause the immune system to attack the vector instead of responding to the coronavirus, making these vaccines less effective.

Several researchers have chosen alternative adenoviruses or delivery mechanisms. Oxford University and AstraZeneca based their COVID-19 vaccine on a chimpanzee adenovirus, avoiding the Ad5 issue. Johnson & Johnson’s candidate uses Ad26, a comparatively rare strain.

Dr. Zhou Xing, from Canada’s McMaster University, worked with CanSino on its first Ad5-based vaccine, for tuberculosis, in 2011. His team is developing an inhaled Ad5 COVID-19 vaccine, theorizing it could circumvent pre-existing immunity issues.

“The Oxford vaccine candidate has quite an advantage” over the injected CanSino vaccine, he said.

Xing also worries that high doses of the Ad5 vector in the CanSino vaccine could induce fever, fueling vaccine skepticism.

“I think they will get good immunity in people that don’t have antibodies to the vaccine, but a lot of people do,” said Dr. Hildegund Ertl, director of the Wistar Institute Vaccine Center in Philadelphia.

In China and the United States, about 40% of people have high levels of antibodies from prior Ad5 exposure. In Africa, it could be as high as 80%, experts said.

HIV RISK

Some scientists also worry an Ad5-based vaccine could increase chances of contracting HIV.

In a 2004 trial of a Merck & Co Ad5-based HIV vaccine, people with pre-existing immunity became more, not less, susceptible to the virus that causes AIDS.

Researchers, including top U.S. infectious diseases expert Dr. Anthony Fauci, in a 2015 paper, said the side effect was likely unique to HIV vaccines. But they cautioned that HIV incidence should be monitored during and after trials of all Ad5-based vaccines in at-risk populations.

“I would be worried about the use of those vaccines in any country or any population that was at risk of HIV, and I put our country as one of them,” said Dr. Larry Corey, co-leader of the U.S. Coronavirus Vaccine Prevention Network, who was a lead researcher on the Merck trial.

Gamaleya’s vaccine will be administered in two doses: The first based on Ad26, similar to J&J’s candidate, and the second on Ad5.

Alexander Gintsburg, Gamaleya’s director, has said the two-vector approach addresses the immunity issue. Ertl said it might work well enough in individuals who have been exposed to one of the two adenoviruses.

Many experts expressed skepticism about the Russian vaccine after the government declared its intention to give it to high-risk groups in October without data from large pivotal trials.

“Demonstrating safety and efficacy of a vaccine is very important,” said Dr. Dan Barouch, a Harvard vaccine researcher who helped design J&J’s COVID-19 vaccine. Often, he noted, large-scale trials “do not give the result that is expected or required.”

(Additional reporting by Christine Soares in New York, Kate Kelland in London, Polina Ivanova in Moscow and Roxanne Liu in Beijing; Editing by Caroline Humer and Bill Berkrot)