China launches its first unmanned mission to Mars

By Ryan Woo

WENCHANG, China (Reuters) – China successfully launched an unmanned probe to Mars on Thursday in its first independent mission to another planet, in a display of its technological prowess and ambition to join an elite club of space-faring nations.

China’s largest carrier rocket, the Long March 5 Y-4, blasted off with the probe at 12:41 p.m. (0441 GMT) from Wenchang Space Launch Center on the southern island of Hainan.

In 2020, Mars is at its closest to Earth, at a distance of about 55 million km (34 million miles), in a window of about a month that opens once every 26 months.

The probe is expected to reach Mars in February where it will attempt to land in Utopia Planitia, a vast plain in the northern hemisphere, and deploy a rover to explore the planet for 90 days.

If successful, the Tianwen-1, or “Questions to Heaven”, the name of a poem written two millennia ago, will make China the first country to orbit, land and deploy a rover in its inaugural mission.

There will be challenges ahead as the craft nears Mars, Liu Tongjie, spokesman for the mission, told reporters ahead of the launch.

“When arriving in the vicinity of Mars, it is very critical to decelerate,” he warned.

Liu said the probe would orbit Mars for about two and a half months and look for an opportunity to enter its atmosphere and make a soft landing.

“Entering, deceleration and landing (EDL) is a very difficult (process),” he said.

Since 1960, half of all the 50-plus missions to Mars including flybys failed, due to technical problems.

China previously made a Mars bid in 2011 with Russia, but the Russian spacecraft carrying the probe failed to exit the Earth’s orbit and disintegrated over the Pacific Ocean.

Eight spacecraft – American, European and Indian – are either orbiting Mars or on its surface with other missions underway or planned.

The United Arab Emirates launched a mission to Mars on Monday, an orbiter that will study the planet’s atmosphere.

NEW SINO-U.S. FRICTIONS?

The United States may launch a probe as soon as end-July to Mars. It will deploy a rover called Perseverance, the biggest, heaviest, most advanced vehicle sent to the Red Planet by the National Aeronautics and Space Administration (NASA).

NASA’s InSight is currently probing the interior of Mars on a plain called Elysium Planitia. Curiosity, a car-sized rover deployed by NASA, is studying soil and rocks in Gale Crater, searching for the building blocks of life.

Asked if Tianwen-1 would present new frictions with the United States, Liu told Reuters the Chinese mission is a scientific exploration project not to compete with anyone but cooperate with each other.

“From our point of view, Mars is large enough for multiple countries to explore and carry out missions,” Liu said in an interview, when asked if there was a chance the Chinese rover would meet with Curiosity and InSight.

Liu declined to give a cost estimate for China’s mission.

China’s probe will carry 13 scientific instruments to observe the planet’s atmosphere and surface, searching for signs of water and ice.

“Scientists believe there was an ancient ocean in the southern Utopia Planitia. At a place where an ancient ocean and land meet, scientists hope to make a lot of discoveries,” Liu said.

(Reporting by Ryan Woo in Wenchang; Additional reporting by Liangping Gao in Beijing; Writing by Jane Wardell and Gabriel Crossley; Editing by Neil Fullick, Robert Birsel, William Maclean)

U.S. orders China to shut Houston consulate as spying accusations mount

By Cate Cadell and David Brunnstrom

BEIJING/WASHINGTON (Reuters) – The United States gave China 72 hours to close its consulate in Houston amid accusations of spying, marking a dramatic deterioration in relations between the world’s two biggest economies.

The U.S. State Department said on Wednesday the Chinese mission in Houston was being closed “to protect American intellectual property and Americans’ private information.”

China’s foreign ministry said Washington had abruptly issued the demand on Tuesday and called it an “unprecedented escalation.” The ministry threatened unspecified retaliation.

The Chinese Embassy in Washington had received “bomb and death threats” because of “smears & hatred” fanned by the U.S. government, spokeswoman Hua Chunying wrote in a tweet.

“The U.S. should revoke its erroneous decision,” she said. “China will surely react with firm countermeasures.”

Communist Party rulers in Beijing were considering shutting the U.S. consulate in the central city of Wuhan in retaliation, a source with knowledge of the matter said.

U.S.-based China experts said Beijing could also opt to target more important consulates in Hong Kong, Shanghai or Guangzhou, something that could hurt American businesses.

The Houston move comes in the run-up to the November U.S. presidential election, in which President Donald Trump and his Democratic rival, Joe Biden, have both tried to look tough towards China.

Speaking on a visit to Denmark, U.S. Secretary of State Mike Pompeo repeated accusations about Chinese theft of U.S. and European intellectual property, which he said were costing “hundreds of thousands of jobs.”

While offering no specifics about the Houston consulate, Pompeo referred to a U.S. Justice Department indictment on Tuesday of two Chinese nationals over what it called a decade-long cyber espionage campaign that targeted defense contractors, COVID-19 researchers and hundreds of other victims worldwide.

Pompeo also referred to recent speeches by the head of the FBI and others that highlighted Chinese espionage activities.

“President Trump has said: ‘Enough. We are not going to allow this to continue to happen,'” he told reporters. “That’s the actions that you’re seeing taken by President Trump, we’ll continue to engage in this.”

Republican Senator Marco Rubio, acting chairman of the Senate Intelligence Committee, described the Houston consulate on Twitter as the “central node of the Communist Party’s vast network of spies & influence operations in the United States.”

Trump was due to hold a news conference at 5.30 p.m. (2130 GMT), the White House said.

The New York Times quoted the top U.S. diplomat for East Asia, David Stilwell, as saying that the Houston consulate had been at the “epicenter” of the Chinese army’s efforts to advance its warfare advantages by sending students to U.S. universities.

“We took a practical step to prevent them from doing that,” Stilwell told the Times.

Stephen Biegun, the State Department’s number two diplomat, told the U.S. Senate Foreign Relations Committee the decision was made in response to “longstanding areas of concern.”

He said these included intellectual property theft and commercial espionage, as well as unequal treatment of U.S. diplomats, exporters, investors and media in China and abuse by China’s security services of the welcoming U.S. posture toward Chinese students and researchers.

A Chinese diplomat, speaking to Reuters on condition of anonymity, denied the spying allegations and said the Houston mission acted like other Chinese consulates in the United States – issuing visas, and promoting visits and businesses.

‘RACE TO THE BOTTOM’

U.S.-China ties have worsened sharply this year over issues ranging from the coronavirus and telecoms-gear maker Huawei to China’s territorial claims in the South China Sea and clampdown on Hong Kong.

Jonathan Pollack, an East Asia expert with the Brookings Institution, said he could not think of anything “remotely equivalent” to the move against the Houston consulate since the U.S. and China opened full diplomatic relations in 1979.

“The Trump Administration appears to view this latest action as political ammunition in the presidential campaign… It’s part of the administration’s race to the bottom against China,” he said.

Overnight in Houston, firefighters went to the consulate after smoke was seen. Two U.S. government officials said they had information that documents were being burned there.

Chinese Foreign Ministry spokesman Wang Wenbin said the consulate was operating normally.

But its closure within a short period of time by Washington was “an unprecedented escalation of its recent actions against China,” Wang said.

A source with direct knowledge of the matter said China was considering closing the U.S. consulate in Wuhan, where the State Department withdrew staff and their families early this year due to the coronavirus outbreak that first emerged in the city.

China’s foreign ministry did not immediately respond to a request for comment on whether it would shut the consulate.

Wang said the U.S. government had been harassing Chinese diplomats and consular staff for some time and intimidating Chinese students. He said the United States had interfered with China’s diplomatic missions, including intercepting diplomatic pouches. The State Department did not respond to a request for comment on the Chinese accusations.

(Reporting by Cate Cadell in Beijing and David Brunnstrom in Washington; additional reporting by Nikolaj Skydsgaard in Copenhagen, Patricia Zengerle, Daphne Psaledakis, Mark Hosenball, Steve Holland and Arshad Mohammed in Washington, Michelle Nichols and Echo Wang in New York and Rama Venkat in Bengaluru; Writing by David Brunnstrom and Nick Macfie; Editing by Peter Graff and Rosalba O’Brien)

Global coronavirus cases exceed 15 million: Reuters tally

By Jane Wardell and Gayle Issa

SYDNEY/LONDON (Reuters) – Global coronavirus infections surged past 15 million on Wednesday, according to a Reuters tally, with the pandemic gathering pace even as countries remain divided in their response to the crisis.

In the United States, which has the highest number of cases in the world with 3.91 million infections, President Donald Trump warned: “It will probably, unfortunately, get worse before it gets better.”

The top five countries with the most cases is rounded out by Brazil, India, Russia and South Africa. But, the Reuters tally shows the disease is accelerating the fastest in the Americas, which account for more than half the world’s infections and half its deaths.

Globally, the rate of new infections shows no sign of slowing, according to the Reuters tally, based on official reports.

After the first COVID-19 case was reported in Wuhan, China, in early January, it took about 15 weeks to reach 2 million cases. By contrast, it took just eight days to climb above 15 million from the 13 million reached on July 13.

Health experts stress that official data almost certainly under-reports both infections and deaths, particularly in countries with limited testing capacity.

The official number of coronavirus cases at 15,009,213 is at least triple the number of severe influenza illnesses recorded annually, according to World Health Organization data, while the death toll of more than 616,000 in seven months is close to the upper range of yearly influenza deaths.

RELAX OR TIGHTEN

With the first wave of the virus still to peak in several countries and a resurgence of case numbers in others, some countries are reintroducing strict social distancing measures while others relax restrictions.

Stung by low approval ratings for his handling of the epidemic and downplaying the risks during the early stages, Trump made a significant shift in rhetoric on Tuesday, encouraging Americans to wear a face mask.

While the epidemic worsened in the United States, Trump’s focus ahead of a presidential election in November has been on reopening the economy, and governors in the hard-hit states of Texas, Florida and Georgia continue to push back hard against calls for stricter restrictions.

In Brazil, more than 2.15 million people have tested positive including President Jair Bolsonaro, and more than 81,000 people have died. While Bolsonaro has played down the outbreak, its scale has made Brazil a prime testing ground for potential vaccines.

India, the only other country with more than 1 million cases, reported almost 40,000 new cases on Wednesday. Having been keen to reopen its economy, India is now facing the twin challenge of combating the pandemic and massive flooding in the country’s northeast.

Two ministers in South Africa’s cabinet were admitted to hospital with COVID-19, as Africa’s most-industrialized country counted a total 372,628 confirmed cases and 5,173 deaths.

Other countries are reintroducing restrictions in response to fresh outbreaks.

In Spain, the number of people allowed on Barcelona’s beaches was limited after crowds flocked to the seaside over the weekend despite advice to stay home.

In Australia, residents of Melbourne, the country’s second biggest city, were ordered to wear masks in public from Wednesday after the country reported a record 501 new cases.

Officials in Canada were closely watching a spike in cases as the economy reopens, attributing the rise in part to large numbers of young people gathering in bars.

China, meanwhile, announced that passengers on inbound flights must provide negative COVID-19 test results before boarding, as authorities seek to reduce the risk of imported cases amid increased international travel.

(Reporting By Jane Wardell and Gayle Issa; Editing by Simon Cameron-Moore)

U.S. accuses Chinese nationals of hacking spree for COVID-19 data, defense secrets

By Raphael Satter and Christopher Bing

WASHINGTON (Reuters) – The U.S. Justice Department on Tuesday indicted two Chinese nationals over their role in what the agency called a decade-long cyber espionage campaign that targeted defense contractors, COVID researchers and hundreds of other victims worldwide.

U.S. authorities said Li Xiaoyu and Dong Jiazhi stole terabytes of weapons designs, drug information, software source code, and personal data from targets that included dissidents and Chinese opposition figures. The cyber criminals were contractors for the Chinese government, rather than full-fledged spies, U.S. officials said.

U.S. Assistant Attorney General for National Security John Demers said at a virtual press conference the hackings showed China “is willing to turn a blind eye to prolific criminal hackers operating within its borders.”

“In this manner, China has now taken its place, alongside Russia, Iran, and North Korea, in that shameful club of nations that provides safe haven for cyber criminals in exchange for those criminals being on call for the benefit of the state.”

Messages left with one of several accounts registered in the name of Li’s digital alias, oro0lxy, were not immediately returned. Reuters could not immediately locate contact details for Dong. The Chinese Embassy in Washington did not immediately return a message seeking comment, although Beijing has repeatedly denied hacking the United States.

The indictment mostly did not name any companies or individual targets, but U.S. Attorney William Hyslop, who spoke alongside Demers, said there were “hundreds and hundreds of victims in the United States and worldwide.” Officials said the investigation was triggered when the hackers broke into a network belonging to the Hanford Site, a decommissioned U.S. nuclear complex in eastern Washington state, in 2015.

Li and Dong were “one of the most prolific group of hackers we’ve investigated,” said FBI Special Agent Raymond Duda, who heads the agency’s Seattle field office.

A July 7 indictment made public on Tuesday alleges that Li and Dong were contractors for China’s Ministry of State Security, or MSS, a comparable agency to the U.S. Central Intelligence Agency. The MSS, prosecutors said, supplied the hackers with information into critical software vulnerabilities to penetrate targets and collect intelligence. Targets included Hong Kong protesters, the office of the Dalai Lama and a Chinese Christian non-profit.

As early as Jan. 27, as the coronavirus outbreak was coming into focus, the hackers were trying to steal COVID-19 vaccine research of an unidentified Massachusetts biotech firm, the indictment said.

It is unclear whether anything was stolen but one expert said the allegation shows the “extremely high value” that governments such as China placed on COVID-related research.

“It is a fundamental threat to all governments around the world and we expect information relating to treatments and vaccines to be targeted by multiple cyber espionage sponsors,” said Ben Read, a senior analyst at cyber-security company FireEye.

He noted that the Chinese government had long relied on contractors for its cyber-spying operations.

“Using these freelancers allows the government to access a wider array of talent, while also providing some deniability in conducting these operations,” Read said.

(Reporting by Chris Sanders; Editing by Chizu Nomiyama and Richard Chang)

U.S. aircraft carriers return to South China Sea amid rising tensions

By James Pearson

HANOI (Reuters) – For the second time in two weeks, the United States has deployed two aircraft carriers to the South China Sea, the U.S. Navy said on Friday, as China and the United States accuse each other of stoking tensions in the region.

The USS Nimitz and USS Ronald Reagan carried out operations and military exercises in the contested waterway between July 4 and July 6, and returned to the region on Friday, according to a U.S. Navy statement.

“Nimitz and Reagan Carrier Strike Groups are operating in the South China Sea, wherever international law allows, to reinforce our commitment to a free and open Indo-Pacific, a rules based international order, and to our allies and partners in the region,” Rear Admiral Jim Kirk, commander of the Nimitz, said in the statement.

The presence of the carriers was not in response to political or world events, the statement added, but relations between Washington and Beijing are currently strained over everything from the new coronavirus to trade to Hong Kong.

Heated rhetoric has been on the rise in the region, where Brunei, Malaysia, the Philippines, Taiwan and Vietnam challenge China’s claim to about 90% of the sea.

China held military drills in the sea earlier this month, drawing strong condemnation from both Vietnam and the Philippines, at the same time as the two carriers first crossed the waterway for what the U.S. Navy said were pre-planned exercises.

The U.S. Navy says its carriers have long carried out exercises in the Western Pacific, including in the South China Sea, which extends for some 1,500 km (900 miles). At one point recently, the United States had three carriers in the region.

About $3 trillion of trade passes through the South China Sea each year. The United States accuses China of trying to intimidate Asian neighbors who might want to exploit its extensive oil and gas reserves.

(Reporting by James Pearson; Editing by Simon Cameron-Moore)

Fauci bullish on prospects for U.S. vaccine, not worried about China winning race

By Julie Steenhuysen

(Reuters) – The leading U.S. expert on infectious diseases, Dr. Anthony Fauci, predicted on Wednesday the country will meet its goal of a coronavirus vaccine by year’s end and was unmoved by the prospect that China would get there first.

While there are no guarantees, “I feel good about the projected timetable,” Fauci told Reuters in an interview.

His comments follow promising early stage data for the Moderna Inc’s coronavirus vaccine, released on Tuesday, that was developed with scientists at the National Institute of Allergy and Infectious Diseases, which Fauci directs.

Many experts see a safe and effective vaccine as the only way out of the pandemic that has infected millions and killed more than 575,000 people worldwide.

Fauci said Moderna’s results were especially promising because the vaccine appeared to offer the type of protection seen in a natural infection.

In vaccine development, “one of the things that you hope for is that your vaccine induces a response that’s comparable to a natural infection, because theoretically, the best vaccine you could possibly ever get is a natural infection.”

Moderna’s candidate, which is set to enter the last stage of testing on July 27, is just one of more than a hundred vaccines in development globally, but only one of a few contenders that have earned millions of dollars in backing from Operation Warp Speed, the White House program that aims to deliver more than 300 million doses of a safe and effective COVID-19 vaccine by January.

Fauci, who has become a popular and trusted figure during the coronavirus outbreak, came under criticism from President Donald Trump and some of his Republican allies as Fauci cautioned against reopening the U.S. economy too soon.

Asked how he copes with the attacks on his character and allegiance to the president, Fauci told Reuters, “I don’t let it bother me. What we’re doing with vaccines, what we’re doing with therapeutics, what we’re doing with clinical trials is the real substance,” Fauci said.

VACCINE RACE

As U.S. states have begun to reopen businesses and coronavirus infections have soared, some White House officials have pointed fingers at China, where the virus first emerged late last year.

Fauci was unmoved by the prospect that China could cross the finish line first. Although he said he hopes China succeeds, he does not think they will win the vaccine race, at least not by much.

“I think everybody’s sort of on the same track.” If they do get there, he said, “They’re not going to get it particularly sooner than we get it. That’s for sure.”

Ultimately, he hopes multiple successful candidates prevail. “I don’t worry about anybody getting there first.”

Even if a vaccine succeeds in provoking an immune response, Fauci said it is still not clear how long that protection will last.

“These are questions that don’t have answers right now, because we’re only six months into the outbreak.” He said it may take a year before that immunity question is answered.

A recent Reuters poll found that a quarter of Americans are hesitant about taking a vaccine, voicing concern that the record pace of development could compromise safety. Fauci said he is aware of such concerns.

“It’s understandable, but unjustified,” he said. “We’re not compromising safety; we’re not compromising scientific integrity.”

Fauci said the normal development process of waiting for a vaccine to be proven effective before manufacturing begins wastes precious time.

“If the vaccine doesn’t work, the only thing you’ve lost is money.”

(Reporting by Julie Steenhuysen in Chicago; Editing by Lisa Shumaker)

Pompeo expects ‘completely whitewashed’ WHO China investigation

WASHINGTON (Reuters) – U.S. Secretary of State Mike Pompeo said on Wednesday he expected a World Health Organization (WHO) investigation into the origins of the novel coronavirus in China to be “completely whitewashed.”

Nearly 580,000 people globally have died from COVID-19, the disease caused by the coronavirus, and more than 13 million have been infected following an outbreak that started in Wuhan, China, last year.

The Geneva-based WHO said it was sending an team to China in early July to investigate how the outbreak started.

“This is a regime that failed to disclose the information they had about a virus that has now killed over 100,000 Americans … and now it is allowing the World Health Organization to go in to conduct what I am confident will be a completely, completely whitewashed investigation,” Pompeo told reporters.

The United States is the WHO’s most prominent critic, and has said it is leaving the U.N. agency.

President Donald Trump, who has been harshly criticized for his response to the outbreak in the United States, which has the world’s highest death toll at more than 136,000 people, has sought to blame China.

“I hope I am wrong. I hope it’s a thorough investigation that gets fully to the bottom, but I have watched the Chinese Communist Party’s behavior with respect to the virus that emanated from Wuhan and they have simply refused,” Pompeo said.

“They have destroyed samples. They have taken journalists and doctors who were prepared to talk about this and not permitted them to do what nations that want to play on a truly global scale and global stage ought to do: be transparent, and open, and communicate and cooperate,” he said.

(Reporting By Arshad Mohammed and Humeyra Pamuk; Editing by Sonya Hepinstall)

Unofficial Hong Kong vote sees new generation take over battle for democracy

By Jessie Pang and Yanni Chow

HONG KONG (Reuters) – A younger, more defiant generation of Hong Kong democrats has secured the most votes in unofficial primary elections in the Chinese-ruled city, setting the stage for a battle with pro-Beijing politicians for control of the city’s legislature.

The success of young contenders in the primaries organized by the pro-democracy camp on the weekend to pick candidates for a Sept. 6 election for a 70-seat city assembly comes amid widespread resentment of a national security law that Beijing imposed last month.

Beijing denounced the vote as illegal and warned it may have violated the new security law, which has raised fears for the freedoms that have underpinned Hong Kong’s open society and success as a financial hub.

Prominent pro-democracy activist Joshua Wong won in his district, but he has been disqualified from previous elections and could face similar hurdles this time.

Wong warned against any sweeping disqualification of candidates when he held a news conference with 15 other young politicians who won in their districts.

“If the government cracks down on us and disqualifies all the candidates who joined the primaries, it will cause more outrage in the international community and encourage more people to vote for the pro-democratic camp in September,” Wong said.

The 16 – all but one under 30 and dressed in black T-shirts – are part of a so-called localist or resistance camp, which outshone the cohort of traditional democrats, which had secured 12 candidate slots as of Wednesday afternoon.

Full results are expected later in the day.

The localists – a term for those who do not see themselves as Chinese and focus on saving the former British colony’s freedoms – tend to be more assertive than traditional democrats.

The localists talk of resistance and saving democracy but they do not all have the same vision for Hong Kong’s future. Some dream of independence – anathema for Beijing – but do not speak of it openly, which would see them fall foul of the new security law and face up to life in prison.

Their performance in the primaries reflects frustration, especially among younger voters, with Hong Kong’s more moderate, traditional pro-democracy politicians.

“Localism has become the mainstream,” said localist candidate Henry Wong. “We will resist against the tyranny.”

The new security law punishes what Beijing broadly defines as secession, subversion, terrorism and collusion with foreign forces with up to life in prison and sees Chinese intelligence agents operating officially in the city for the first time.

Critics fear it will crush wide-ranging freedoms promised to Hong Kong when it returned to Chinese rule in 1997, while supporters say it will bring stability after a year of often violent anti-government protests.

‘DIFFICULT TO UNDERSTAND’

The law has already had a chilling effect on many aspects of life.

Earlier on Wednesday, former democracy lawmaker Au Nok-hin said he was pulling out as an organizer of the weekend vote amid accusations from Beijing that it was illegal.

“Withdrawal is the only choice … (to) protect myself and others,” Au said in a Facebook post.

A spokesman for Beijing’s top office in the city, the Hong Kong Liaison Office, said the pro-democracy camp’s bid for a legislative majority was an attempt to carry out a “color revolution,” referring to uprisings in other parts of the world.

In comments that critics said were aimed at instilling fear, the Liaison Office as well as Chinese government’s Hong Kong and Macau Affairs Office and the city’s leader, Carrie Lam, have all said the primaries could violate the national security law.

Benny Tai, another organizer of the pro-democracy polls, was defiant.

“For those who do not recognize democracy, or do not agree with democratic values, it is difficult to understand the meaning of the primary election,” Tai said.

Hong Kong police on Wednesday arrested the vice chairman of the city’s Democratic Party, Lo Kin-hei, on charges of unlawful assembly related to a protest in November.

The political tension in Hong Kong has alarmed the business community while the new law has raised concern in countries that support the “one country, two systems” formula of government meant to safeguard its freedoms.

On Tuesday, U.S. President Donald Trump ordered an end to Hong Kong’s special status under U.S. law to punish China for what he called “oppressive actions” against the city.

China said it would impose retaliatory sanctions on U.S. individuals and entities after Trump signed a law penalizing banks doing business with Chinese officials who implement the new law.

In an interview with state agency Xinhua, Chief Executive Lam said U.S. sanctions won’t hurt Hong Kong and in time, concern about the security law would prove unfounded.

In another blow to the city’s standing, the New York Times said it would shift part of its Hong Kong office to Seoul, as worries grow that the security law will curb media and other freedoms.

(Additional reporting by Aleksander Solum; Writing by Farah Master, Anne Marie Roantree and Marius Zaharia; Editing by Michael Perry, Robert Birsel)

Over 224,000 COVID-19 deaths forecast in US by November 1, says University of Washington’s IHME

(Reuters) – A newly revised University of Washington model projects the U.S. death toll from COVID-19 will climb to just above 224,000 by Nov. 1, up 16,000 from a prior forecast, due to rising infections and hospitalizations in many states.

But the latest forecast from the university’s Institute for Health Metrics and Evaluation (IHME), released late on Tuesday, also predicts the death toll could be reduced by 40,000 if nearly all Americans wore masks in public.

“Use of masks is up, but not as high as it should be. If 95% of Americans wore masks each time they left their homes, infection rates would drop, hospitalizations would drop, and forecast deaths would drop,” the IHME said in a statement.

The IHME’s new forecast came after Alabama, Florida and North Carolina on Tuesday reported record daily increases in deaths from COVID-19, marking grim new milestones of a second wave of infections surging across much of the U.S.

The new IHME forecast – 224,089 U.S. lives lost by Nov. 1 – was revised upward from the 208,254 deaths projected on July 7.

At least 136,052 Americans have died from COVID-19, the illness caused by the novel coronavirus, while reported U.S. infections have surpassed 3.4 million, according to a tally by Reuters.

The IHME’s projections have been cited in the past by the White House and are watched closely by public health officials.

(Reporting by Nathan Layne in Wilton, Connecticut; Editing by Bernadette Baum)

China vows retaliation after Trump ends preferential status for Hong Kong

By Jeff Mason and Steve Holland

WASHINGTON (Reuters) – President Donald Trump on Tuesday ordered an end to Hong Kong’s special status under U.S. law to punish China for what he called “oppressive actions” against the former British colony, prompting Beijing to warn of retaliatory sanctions.

Citing China’s decision to enact a new national security law for Hong Kong, Trump signed an executive order that he said would end the preferential economic treatment for the city.

“No special privileges, no special economic treatment and no export of sensitive technologies,” he told a news conference.

Acting on a Tuesday deadline, he also signed a bill approved by the U.S. Congress to penalize banks doing business with Chinese officials who implement the new security law.

“Today I signed legislation, and an executive order to hold China accountable for its aggressive actions against the people of Hong Kong, Trump said.

“Hong Kong will now be treated the same as mainland China,” he added.

Under the executive order, U.S. property would be blocked of any person determined to be responsible for or complicit in “actions or policies that undermine democratic processes or institutions in Hong Kong,” according to the text of the document released by the White House.

It also directs officials to “revoke license exceptions for exports to Hong Kong,” and includes revoking special treatment for Hong Kong passport holders.

China’s foreign ministry said on Wednesday Beijing will impose retaliatory sanctions against U.S. individuals and entities in response to the law targeting banks, though the statement released through state media did not reference the executive order.

“Hong Kong affairs are purely China’s internal affairs and no foreign country has the right to interfere,” the ministry said.

Critics of the security law fear it will crush the wide-ranging freedoms promised to Hong Kong when it returned to Chinese rule in 1997, while supporters say it will bring stability to the city after a year of sometimes violent anti-government protests.

The security law punishes what Beijing broadly defines as subversion, secession, terrorism and collusion with foreign forces with up to life in prison.

U.S. relations with China have already been strained over the global coronavirus pandemic, China’s military buildup in the South China Sea, its treatment of Uighur Muslims and massive trade surpluses.

Trump’s handling of the coronavirus pandemic has raised doubts about whether he can win re-election on Nov. 3 amid a surge of new infections. He has attempted to deflect blame onto China.

“Make no mistake. We hold China fully responsible for concealing the virus and unleashing it upon the world. They could have stopped it, they should have stopped it. It would have been very easy to do at the source, when it happened,” he said.

Asked if he planned to talk to Chinese President Xi Jinping, Trump said: “I have no plans to speak to him.”

DOUBLE-EDGED SWORD?

Analysts say that completely ending Hong Kong’s special treatment could prove self-defeating for the United States.

Hong Kong was the source of the largest bilateral U.S. goods trade surplus last year, at $26.1 billion, U.S. Census Bureau data shows.

According to the State Department, 85,000 U.S. citizens lived in Hong Kong in 2018 and more than 1,300 U.S. companies operate there, including nearly every major U.S. financial firm.

The territory is a major destination for U.S. legal and accounting services.

The United States began eliminating Hong Kong’s special status under U.S. law in late June, halting defense exports and restricting the territory’s access to high-technology products as China prepared to enact the security legislation.

In May, Trump responded to China’s plans for the security law by saying he was initiating a process to eliminate the special economic treatment that has allowed Hong Kong to remain a global financial center.

He stopped short then of calling for an immediate end to privileges, but said the moves would affect the full range of U.S. agreements with Hong Kong, from an extradition treaty to export controls on dual-use technologies.

A U.S. official, speaking on condition of anonymity, said the administration was also preparing sanctions against Chinese officials and entities involved in the Hong Kong crackdown, including further U.S. travel bans and possible Treasury sanctions.

The timing remained unclear. The White House has previously threatened such sanctions but so far has only imposed restrictions on visas for an unspecified number of unnamed Chinese officials.

(Reporting by Jeff Mason and Steve Holland; Additional reporting by David Brunnstrom, Alexandra Alper, Patricia Zengerle, Eric Beech, Makini Brice and Matt Spetalnick; Editing by Leslie Adler and Peter Cooney)