U.S. rejects China’s claims in South China Sea, adding to tensions

By Humeyra Pamuk, Arshad Mohammed and Yew Lun Tian

WASHINGTON/BEIJING (Reuters) – The United States on Monday rejected China’s claims to offshore resources in most of the South China Sea, drawing criticism from China which said the U.S. position raised tension in the region, highlighting an increasingly testy relationship.

China has offered no coherent legal basis for its ambitions in the South China Sea and for years has been using intimidation against other Southeast Asian coastal states, U.S. Secretary of State Mike Pompeo said in a statement.

“We are making clear: Beijing’s claims to offshore resources across most of the South China Sea are completely unlawful, as is its campaign of bullying to control them,” said Pompeo, a prominent China hawk within the Trump administration.

The United States has long opposed China’s expansive territorial claims on the South China Sea, sending warships regularly through the strategic waterway to demonstrate freedom of navigation there. Monday’s comments reflect a harsher tone.

“The world will not allow Beijing to treat the South China Sea as its maritime empire,” Pompeo said.

The U.S. statement supports a ruling four years ago under the UN Convention on the Law of the Sea (UNCLOS) that invalidated most of China’s claims for maritime rights in the South China Sea.

Chinese foreign ministry spokesman Zhao Lijian condemned the U.S. rejection of China’s claim.

“It intentionally stirs up controversy over maritime sovereignty claims, destroys regional peace and stability and is an irresponsible act,” he said at a regular briefing.

“The U.S. has repeatedly sent large fleets of sophisticated military planes and ships to the South China Sea … The U.S. is the troublemaker and destroyer of regional peace and stability.”

China claims 90% of the potentially energy-rich South China Sea, but Brunei, Malaysia, the Philippines, Taiwan and Vietnam also lay claim to parts of it.

About $3 trillion worth of trade passes through the waterway each year. China has built bases atop atolls in the region but says its intentions are peaceful.

MORE CONFIDENT?

Analysts said it would be important to see if other countries adopted the U.S. stance and what, if anything, Washington might do to reinforce its position and prevent Beijing from creating “facts on the water” to buttress its claims.

“The Southeast Asian claimants, especially Vietnam, will feel more confident in asserting their jurisdictional rights under UNCLOS,” said Ian Storey, senior fellow at the ISEAS-Yusof Ishak Institute in Singapore.

The Philippines strongly supported a rules-based order in the South China Sea and urged China to comply with the four-year-old arbitration ruling, its defense minister, Delfin Lorenzana, said.

Taiwan welcomed the U.S. statement.

“Our country opposes any attempt by a claimant state to use intimidation, coercion, or force to resolve disputes,” Taiwan foreign ministry spokeswoman Joanne Ou told reporters.

The relationship between the United States and China has grown increasingly tense recently over various issues including China’s handling of the novel coronavirus and its tightened grip on Hong Kong.

China routinely outlines the scope of its claims in the South China Sea with reference to a so-called nine-dash line on its maps that encompasses about nine-tenths of the 3.5-million-square-kilometer waters.

“This is basically the first time we have called it illegitimate,” Chris Johnson, an analyst with the Center for Strategic and International Studies, said of Pompeo’s statement.

“It’s fine to put out a statement, but what you going to do about it?”

(Reporting by Humeyra Pamuk, Arshad Mohammed, Matt Spetalnick, Daphne Psaledakis. Additional reporting by Yew Lun Tian in Beijing, Ben Blanchard in Taipei, and Karen Lema in Manila; Editing by Leslie Adler and Lincoln Feast, Robert Birsel)

What you need to know about the coronavirus right now

(Reuters) – Here’s what you need to know about the coronavirus right now:

Restrictions reimposed across Asia-Pacific region

From Melbourne to Manila, Hong Kong and India’s tech capital Bengaluru, lockdowns and strict social distancing restrictions are being reimposed across the Asia-Pacific after a surge in new coronavirus cases fanned fears of a second wave of infections.

Many parts of Asia, the region first hit by the coronavirus that emerged in central China late last year, are finding cause to pause the reopening of their economies, some after winning praise for their initial responses to the outbreak.

The number of coronavirus infections around the world hit 13 million on Monday, according to a Reuters tally, climbing by a million in just five days. Reuters’ global tally, which is based on government reports, shows COVID-19 accelerating fastest in Latin America, the number of deaths there exceeding the figure for North America for the first time on Monday.

Shutdown in California

California’s governor on Monday clamped new restrictions on businesses as coronavirus cases and hospitalizations soared, and the state’s two largest school districts, in Los Angeles and San Diego, said children would be made to stay home in August.

Governor Gavin Newsom, a Democrat, ordered bars closed and restaurants, movie theaters, zoos and museums across the nation’s most populous state to cease indoor operations. Gyms, churches and hair salons must close in the 30 hardest-hit counties.

“It’s incumbent upon all of us to recognize soberly that COVID-19 is not going away any time soon, until there is a vaccine and/or an effective therapy,” Newsom said at a news briefing.

The decision to cancel in-person classes puts the districts at odds with U.S. President Donald Trump, who has said he might withhold federal funding or remove tax-exempt status from school systems that refuse to reopen.

‘Worst-case’ winter toll

Britain faces a potentially more deadly second wave of COVID-19 in the coming winter that could kill up to 120,000 people over nine months in a worst-case scenario, health experts said on Tuesday.

With COVID-19 more likely to spread in winter as people spend more time together in enclosed spaces, a second wave of the pandemic “could be more serious than the one we’ve just been through,” said Stephen Holgate, a professor and co-lead author of a report by Britain’s Academy of Medical Sciences.

“This is not a prediction, but it is a possibility,” Holgate told an online briefing. “Deaths could be higher with a new wave of COVID-19 this winter, but the risk of this happening could be reduced if we take action immediately.”

The United Kingdom’s current death toll from confirmed cases of COVID-19 is around 45,000, the highest in Europe.

Good news from hard-hit Belgium

Belgium, which has reined in the coronavirus after becoming the worst-hit mid-sized country in the world, reported zero new coronavirus-related deaths in 24 hours on Tuesday for the first time since March 10.

As in many European countries that were hard-hit by the pandemic in March and April, Belgium sharply reduced infections by imposing a lockdown, which is now being lifted.

The total number of deaths reported by the national public health institute Sciensano remained at 9,787. In the country of 11.5 million people, that works out to around 850 deaths per million, the worst in the world apart from the tiny city state of San Marino. The peak daily death toll was 343 on April 12.

Bastille Day with a difference

France held a scaled-down annual Bastille Day celebration on Tuesday, with none of the usual tanks and troops parading down Paris’s Champs Elysees avenue, in a concession to the COVID-19 epidemic still stalking Europe.

Instead, President Emmanuel Macron, standing in the back of a military jeep, reviewed ranks of socially-distanced troops on the Place de la Concorde square after a flypast by military aircraft.

“I wish, with all the French, with the armies themselves, to pay a vibrant tribute to health workers and those who, in all sectors, have enabled public, social and economic life to continue,” Macron said in message released ahead of the parade.

(Compiled by Linda Noakes and Karishma Singh; editing by Emelia Sithole-Matarise)

Hong Kong leader says pro-democracy ‘protest’ vote might have violated new security laws

By Jessie Pang and James Pomfret

HONG KONG (Reuters) – Hong Kong leader Carrie Lam said on Monday that an unofficial city-wide election conducted by the pro-democracy camp over the weekend might have violated new national security laws by “subverting state power”.

The weekend election drew more than 600,000 votes, in what democrats described as a symbolic protest vote against tough new laws imposed by Beijing on the freewheeling former British colony.

The vote at around 250 polling stations was held to decide the strongest pro-democracy candidates to contest key Legislative Council elections in September.

The city’s opposition camp is aiming to seize majority control in the 70-seat legislature for the first time from pro-Beijing rivals by riding a wave of anti-China sentiment stirred by the law, which critics say has gravely undermined Hong Kong’s freedoms.

The city returned to Chinese rule in 1997 with a guarantee of wide-ranging autonomy.

The new law punishes secession, subversion, terrorism and collusion with foreign forces with up to life in prison and allows mainland Chinese security agents to operate officially in Hong Kong for the first time.

Lam told reporters that if the democrats’ aim to gain a legislative majority was to obstruct government policies, “then it may fall into the category of subverting the state power”. She didn’t elaborate.

One of the organizers of the election, Benny Tai, told reporters that the results of the poll had been leaked ahead of an official announcement. But he said there had been no personal data breach of the voters.

Last Friday, Hong Kong police raided the office of the independent pollster helping with the election, and officers copied some information from computers there.

Hong Kong’s Constitutional and Mainland Affairs Bureau said in a statement late on Monday that it had received public complaints that the weekend poll may have “jeopardized the integrity of the electoral process”.

It added it was now conducting an investigation and might later refer the case to law enforcement agencies.

The preliminary results showed several incumbent democratic lawmakers like Ted Hui and Eddie Chu taking the most votes in some districts.

But a group of aspiring young democrats, or “localists”, also performed strongly, reflecting a potential changing of the guard as the democrats gear up for the September poll.

“It’s just the beginning,” one candidate, Sunny Cheung, a runner-up in one district putting him on the democratic ticket for September, told Reuters.

“I will try to persuade more people to support us,” he added, saying localists like himself were gaining more mainstream support.

(Reporting by Jessie Pang and James Pomfret; Editing by Nick Macfie)

Disney to shut Hong Kong Disneyland again as coronavirus cases rise

By Helen Coster

(Reuters) – Walt Disney Co. is temporarily closing its Hong Kong Disneyland theme park from July 15 amid rising coronavirus cases in the Chinese-ruled city, the company said Monday.

The announcement came two days after Disney reopened its biggest resort, Walt Disney World in Orlando, Florida, as coronavirus cases surged in the state.

“As required by the government and health authorities in line with prevention efforts taking place across Hong Kong, Hong Kong Disneyland park will temporarily close from July 15,” a Disney spokeswoman said in a statement.

The Hong Kong Disneyland Resort hotels will remain open with adjusted services. They have put in place enhanced health and safety measures, the company said.

Hong Kong recorded 52 new cases of coronavirus on Monday, including 41 that were locally transmitted, according to health authorities. Since late January, Hong Kong has reported 1,522 cases and local media reported an eighth death on Monday.

Hong Kong is tightening social distancing measures amid growing worries about a third wave of coronavirus infections. The government will limit group gatherings to four people – from 50 – a measure last seen during a second wave of the outbreak in March.

Hong Kong Disneyland reopened in June. Hong Kong Tokyo reopened in July; Disneyland Shanghai reopened in May.

Disney’s reopening of its parks in Asia helped provide assurance about moving ahead in Florida, Josh D’Amaro, chairman of Disney’s parks, experiences and products division told Reuters in an interview on Saturday.

Florida has emerged as an epicenter of COVID-19 infections. Over the past two weeks, the state reported 109,000 new coronavirus cases, more than any other U.S. state.

(Reporting by Helen Coster in New York. Additional reporting by Lisa Richwine in Los Angeles, Editing by Nick Zieminski)

Global coronavirus cases rise above 13 million

By Gayle Issa

(Reuters) – Global coronavirus infections passed 13 million on Monday, according to a Reuters tally, marking another milestone in the spread of the disease which has killed more than half a million people in seven months.

The first case was reported in China in early January and it took three months to reach one million cases. It has taken just five days to climb to 13 million cases from 12 million recorded on July 8.

The number of cases is around triple that of severe influenza illnesses recorded annually, according to the World Health Organization.

There have been more than 568,500 deaths linked to the coronavirus so far, within the same range as the number of yearly influenza deaths reported worldwide. The first death was reported on Jan. 10 in Wuhan, China, before infections and fatalities surged in Europe and then later in the United States.

Many hard-hit countries are easing lockdowns put in place to slow the spread of COVID-19. Other places, such as the Australian city of Melbourne, are implementing a second round of shutdowns.

The Reuters tally, which is based on government reports, shows the disease is accelerating the fastest in Latin America. The Americas account for more than half the world’s infections and half the deaths.

The United States reported a daily global record of 69,070 new infections on July 10. In, 1.86 million people have tested positive, including President Jair Bolsonaro, and more than 72,000 people have died.

India, the country with the third-highest number of infections, has been contending with an average of 23,000 new infections each day since the beginning of July.

In countries with limited testing capacity, case numbers reflect only a proportion of total infections. Experts say official data likely under-represents both infections and deaths.

(Reporting by Gayle Issa; Editing by Frances Kerry, Nick Macfie and Toby Chopra)

WHO advance team on way to China to set up probe into virus origin

By Stephanie Nebehay

GENEVA (Reuters) – An advance team from the World Health Organization (WHO) has left for China to organise an investigation into the origins of the novel coronavirus which sparked the global pandemic, a spokeswoman said on Friday.

The virus is believed to have emerged in a wholesale market in the central Chinese city of Wuhan late last year, since then closed, after jumping the species barrier from the animal kingdom to infect humans.

The two WHO experts, specialists in animal health and epidemiology, will work with Chinese scientists to determine the scope and itinerary of the investigation, WHO spokeswoman Margaret Harris said, declining to name them.

“They have gone, they are in the air now, they are the advance party that is to work out the scope,” she told a briefing.

This would involve negotiations on issues including the composition of the fuller team, she added.

“One of the big issues that everybody is interested in, and of course that’s why we’re sending an animal health expert, is to look at whether or not it jumped from species to a human and what species it jumped from,” Harris said.

“We know it’s very, very similar to the virus in the bat, but did it go through an intermediate species? This is a question we all need answered,” she said.

U.S. President Donald Trump and Secretary of State Michael Pompeo have said it may have originated in a laboratory in Wuhan, although they have presented no evidence for this and China strongly denies it. Scientists and U.S. intelligence agencies have said it emerged in nature.

“If there was wrongdoing – and we may never know that for sure – it will be very hard to uncover,” Lawrence Gostin, a professor at Georgetown Law in Washington, D.C., told Reuters.

“The wet market was closed immediately. There is no independent record, evaluation or investigation of a potential zoonotic source, so it will be very hard to go back and piece together,” he said.

(Reporting by Stephanie Nebehay in Geneva and Michael Shields in Zurich; Editing by Angus MacSwan and Gareth Jones)

U.S. tech giants face hard choices under Hong Kong’s new security law

By Brenda Goh and Pei Li

SHANGHAI/HONG KONG (Reuters) – U.S. tech giants face a reckoning over how Hong Kong’s security law will reshape their businesses, with their suspension of processing government requests for user data a stop-gap measure as they weigh options, people close to the industry say.

While Hong Kong is not a significant market for firms such as Facebook, Google and Twitter, they have used it as a perch to reach deep-pocketed advertisers in mainland China, where many of their services are blocked. But the companies are now in the cross hairs of a national security law that gives China authority to demand that they turn over user data or censor content seen to violate the law – even when posted from abroad.

“These companies have to totally reassess the liability of having a presence in Hong Kong,” Charles Mok, a legislator who represents the technology industry in Hong Kong, told Reuters.

If they refuse to cooperate with government requests, he said, authorities “could go after them and take them to court and fine them, or imprison their principals in Hong Kong”.

Facebook, Google and Twitter have suspended processing government requests for user data in Hong Kong, they said on Monday, following China’s imposition of the new national security law on the semi-autonomous city.

Facebook, which started operating in Hong Kong in 2010, last year opened a big new office in the city.

It sells more than $5 billion a year worth of ad space to Chinese businesses and government agencies looking to promote messages abroad, Reuters reported in January. That makes China Facebook’s biggest country for revenue after the United States.

The U.S. internet firms are no strangers to governments demands regarding content and user information, and generally say they are bound by local laws.

The companies have often used a technique known as “geo-blocking” to restrict content in a particular country without removing it altogether.

But the sweeping language of Hong Kong’s new law could mean such measures won’t be enough. Authorities will no longer need to get court orders before requesting assistance or information, analysts said.

Requests for data about overseas users would put the companies in an especially tough spot.

“It’s a global law … if they comply with national security law in Hong Kong then there is the problem that they may violate laws in other countries,” said Francis Fong Po-kiu, honorary president of Hong Kong’s Information Technology Federation.

CONTENT QUESTION

While the U.S. social media services are blocked in mainland China, they have operated freely in Hong Kong.

Other U.S. internet platforms are also rich with content that is banned in mainland China and may now be judged illegal in Hong Kong.

U.S. video streaming site Netflix, for example, carries “Joshua: Teenager vs. Superpower”, a 2017 documentary on activist Joshua Wong whose books were removed from Hong Kong public libraries last week.

“Ten Years”, a 2015 film that has been criticized by Chinese state media for portraying a dystopian future Hong Kong under Chinese Communist Party control, is also available on its platform.

Netflix declined to comment.

Google’s YouTube is a popular platform for critics of Beijing. New York-based fugitive tycoon Guo Wengui has regularly voiced support for Hong Kong protesters in his videos. Google did not immediately respond to a request for comment.

None of these companies has yet said how they will handle requests from Hong Kong to block or remove content, and the risk of being caught in political crossfire looms large.

“The foreign content players have to rethink what they display in Hong Kong,” said Duncan Clark, chairman at consultancy BDA China.

“The downside is very big if they get U.S. senators on their backs for accommodating. Any move they make will be heavily scrutinized.”

(Reporting by Brenda Goh and Pei Li; Additional reporting by Cate Cadell in Beijing and Anne Marie Roantree in Hong Kong; Editing by Jonathan Weber and Robert Birsel)

U.S. will act to deny China access to Americans’ data, says Pompeo

By Humeyra Pamuk

WASHINGTON (Reuters) – The Trump administration will take steps to ensure the Chinese government does not gain any access to the private information of American citizens through telecommunications and social media, U.S. Secretary of State Mike Pompeo said on Wednesday, when asked if the U.S. was planning to ban Chinese-owned app Tiktok.

Pompeo also praised U.S. technology giants Google, Twitter Inc and Facebook Inc for ‘refusing to surrender’ user data to the Hong Kong government and urged other companies to follow suit, after China’s establishment of a sweeping new national security law for the semi-autonomous city.

Speaking two days after he said Washington was “certainly looking at” banning Chinese social media apps, including TikTok, Pompeo said the U.S. evaluation was not focused on a particular company but that it was a matter of national security.

“The comments that I made about a particular company earlier this week fall in the context of us evaluating the threat from the Chinese Communist Party,” Pompeo said. He added that Washington was working to ensure that Beijing does not gain access to any private data or health records of Americans.

“So what you’ll see the administration do is take actions that preserve and protect that information and deny the Chinese Communist Party access to private information that belongs to Americans,” he said.

U.S. lawmakers have raised national security concerns over TikTok’s handling of user data, saying they were worried about Chinese laws requiring domestic companies “to support and cooperate with intelligence work controlled by the Chinese Communist Party.”

On Monday, Tiktok told Reuters it has never provided user data to China. The app, which is not available in China, has sought to distance itself from its Chinese roots to appeal to a global audience.

Pompeo’s remarks also come amid increasing U.S.-China tensions over the handling of the coronavirus outbreak, China’s actions in the former British colony of Hong Kong and a nearly two-year trade dispute between the U.S. and China.

Pompeo reiterated the need for allies and the international community to help shape the global telecoms infrastructure free of the Chinese government’s influence.

“The infrastructure of this next hundred years must be a communications infrastructure that is based on a Western ideal,” he said.

(Reporting by Humeyra Pamuk, Susan Heavey and Daphne Psaledakis; Editing by Bernadette Baum)

U.S. says ‘deeply concerned’ by Beijing’s detention of Chinese law professor

Flags of U.S. and China are displayed at American International Chamber of Commerce (AICC)'s booth during China International Fair for Trade in Services in Beijing, China, May 28, 2019. REUTERS/Jason Lee

By Humeyra Pamuk

WASHINGTON (Reuters) – The United States on Tuesday said it was deeply concerned about China’s detention of Xu Zhangrun, a law professor who has been an outspoken critic of the ruling Communist Party, and urged Beijing to release him.

Xu, 57, a professor at the prestigious Tsinghua University, came to prominence in July 2018 for denouncing the removal of the two-term limit for China’s leader, which allows Xi to remain in office beyond his current second term.

According to a text message circulated among Xu’s friends and seen by Reuters, he was taken from his house in suburban Beijing on Monday morning by more than 20 policemen, who also searched his house and confiscated his computer.

“We are deeply concerned by the PRC’s detention of Professor Xu Zhangrun for criticizing Chinese leaders amid tightening ideological controls on university campuses in China. The PRC must release Xu and uphold its international commitments to respect freedom of expression,” U.S. State Department spokeswoman Morgan Ortagus wrote in a tweet.

The detention comes as a new national security law came into effect in Hong Kong last week. The sweeping legislation that Beijing imposed on the former British colony punishes what China defines as secession, subversion, terrorism and collusion with foreign forces, with up to life in prison.

Critics say the aim of the law is to stamp out a pro-democracy movement that brought months of protests, at times violent, to the city last year.

The imposition of the new law further deteriorated ties between Washington and Beijing, which had been at loggerheads for months over the handling of the coronavirus pandemic and a nearly two-year trade war.

On Monday, U.S. Secretary of State Mike Pompeo said the United States is “certainly looking at” banning Chinese social media apps, including TikTok, suggesting it shared information with the Chinese government, a charge it denied.

(Reporting by Humeyra Pamuk; Editing by Sandra Maler and Alistair Bell)

‘At war time speed’, China leads COVID-19 vaccine race

By Sangmi Cha and Miyoung Kim

SEOUL/SINGAPORE (Reuters) – China is forging ahead in the race to develop a vaccine to help control the COVID-19 pandemic, with Sinovac Biotech’s experimental vaccine set to become the country’s second and the world’s third to enter final stage testing later this month.

While a laggard in the global vaccine industry, China, where the new coronavirus is thought to have originated, has brought state, military and private sectors together in a quest to combat a disease that has killed over 500,000 people worldwide.

Many other countries, including the United States, are coordinating closely with the private sector to try to win the vaccine development race, and China faces many challenges.

Its success in driving down COVID-19 infections makes it harder to conduct large-scale vaccine trials, and so far only a few other countries have agreed to work with it. After past vaccine scandals, Beijing will also have to convince the world it has met all safety and quality requirements.

But China’s use of command economy-type tools is so far yielding results.

A state-controlled entity, for example, completed two vaccine plants at what it called the “war time speed” of a couple of months, while state-owned enterprises and the military have allowed experimental shots to be used on staff.

The People’s Liberation Army’s medical research unit, which has been a driving force in China’s efforts to fight infectious diseases, is also working with private firms including CanSino to develop COVID-19 vaccines.

Challenging the West’s traditional dominance of the industry, China is behind eight of the 19 vaccine candidates in human trials, with Sinovac’s experimental shot and one jointly developed by the military and CanSino among the front runners.

It is also focused mainly on inactivated vaccine technology – a technology that is well known and has been used to make vaccines against diseases such as influenza and measles – something which could raise the chances of success.

By contrast, several Western rivals such as U.S.-based Moderna and Germany’s CureVac and BioNTech are using a new technology called messenger RNA that has never before yielded a product approved by regulators.

‘TRIED AND TRUE’

“It’s a tried and true strategy,” said Paul Offit, director of the Vaccine Education Center at Children’s Hospital of Philadelphia, about inactivated vaccine technology.

“If I had to pick a vaccine that I think would be the most likely to be safe and effective, it would be that one,” he said. Offit is also co-inventor of the rotavirus vaccine, RotaTeq, manufactured by Merck & Co Inc.

Four of the Chinese candidates in human trials are inactivated vaccines, including Sinovac’s and two vaccines from China National Biotec Group, a unit of state-owned China National Pharmaceutical Group (Sinopharm).

There are currently only two experimental COVID-19 vaccines in final Phase III trials – one from Sinopharm and another from AstraZeneca  and the University of Oxford. Sinovac’s is set to become the third later this month.

To speed up the process, China allowed Sinopharm and Sinovac to combine Phase I and Phase II trials for their vaccine candidates.

For CanSino’s experimental vaccine, the PLA research institute played a key role, with the two working on a method using an adenovirus – a similar approach to AstraZeneca’s.

The PLA has its own approval process for “military specifically-needed drugs”, and approved the military use of the candidate developed by its research unit and CanSino last month.

PLA lead scientist Chen Wei, who has been the face of its vaccine development effort, was among the first to take the experimental COVID-19 shot developed by her team, as well as its potential SARS treatment years before, according to state media.

CHALLENGES

China has challenges, though, as the epidemic has petered out in the country, hampering efforts to conduct large trials.

It has since shifted its focus overseas, but only a handful of countries have shown willingness to collaborate – UAE, Canada, Brazil, Indonesia and Mexico. Neither major European countries nor the United States have shown interest in China’s COVID-19 vaccines as they focus on their own projects.

China must also address concerns over its vaccine quality and safety issues following several scandals over substandard vaccines in recent years.

“The Chinese national regulatory authority has been improving its oversight,” said Jerome Kim, head of the International Vaccine Institute, a non-profit agency established as an initiative of the U.N. Development Program.

China introduced a law last year to regulate the vaccine industry, with heavier penalties for selling and making fake or low-quality vaccines than other drug products.

(Reporting by Roxanne Liu and Sangmi Cha; Additional reporting by Julie Steenhuysen in Chicago; Writing by Miyoung Kim; Editing by Mark Potter and Kate Kelland)