Trump, Powell met Monday at White House to discuss economy

By Howard Schneider

WASHINGTON (Reuters) – U.S. President Donald Trump and Federal Reserve Chair Jerome Powell met at the White House on Monday morning, their second meeting since Powell started the job in February 2017 and soon after became the target of frequent criticism from the president who had appointed him.

The Fed announced the meeting in a morning press release, noting they met “to discuss the economy, growth, employment and inflation.”

“Everything was discussed including interest rates, negative interest, low inflation, easing, Dollar strength & its effect on manufacturing, trade with China, E.U. & others, etc.,” Trump tweeted soon after, calling the session “good & cordial.”

The Fed’s wording closely followed its description of Powell’s first meeting with Trump, this past February, over a dinner that also included Vice Chair Richard Clarida.

Trump’s tweet marked a change in tone. The president in recent months derided Powell and colleagues as “pathetic” and “boneheads” for not cutting interest rates, and in August labeled Powell personally as an enemy of the United States on a par with China leader Xi Jinping.

The Fed in its statement was careful to note what wasn’t discussed: Powell’s expectations for future monetary policy. Trump has for more than a year charged the Fed with undermining his economic policies by, in his view, keeping interest rates too high, and depriving the United States of what Trump feels are the benefits of the negative rates of interest set by the European and Japanese central banks.

The U.S. central bank has cut rates three times this year – in part to offset what it views as damage done by the Trump administration’s trade war with China. But after their last meeting, in October, policymakers signaled they would lower rates no further unless the economy takes a serious turn for the worse.

Less than 24 hours after that decision, Trump laid into Powell again, saying people are “VERY disappointed” in him and the Fed. And only last week, Trump lobbed another dig in a tweet that noted inflation was low: “(do you hear that Powell?)”

CONSISTENT

Powell “did not discuss his expectations for monetary policy, except to stress that the path of policy will depend entirely on incoming information that bears on the outlook for the economy,” the Fed said in its statement.

Powell appeared before congressional committees twice last week, and the Fed said his comments to Trump were “consistent” with his statements to lawmakers.

“Chair Powell said that he and his colleagues on the Federal Open Market Committee will set monetary policy, as required by law, to support maximum employment and stable prices and will make those decisions based solely on careful, objective and non-political analysis.”

The meeting included Treasury Secretary Steven Mnuchin.

Powell met with Trump in February, and in each of the three following months the two had a brief phone conversation. That compares with the three times his predecessor, Janet Yellen, met President Barack Obama at the White House; Yellen also met with Trump during her final year as Fed chair.

Powell’s has made much more extensive and deliberate efforts to court members of the House and Senate, even as Trump expressed regret for appointing Powell and reportedly explored whether he could remove him.

Fed chairs are appointed to four-year terms by the president, but once confirmed by the Senate are intended to be insulated from White House political pressure over how to manage monetary policy. They can only be removed “for cause,” not over a disagreement over policy.

Meetings between Fed chairs and presidents are not unprecedented but they are infrequent, as opposed to the nearly weekly sessions that central bankers have with the head of the Treasury.

(Reporting by Howard Schneider and Ann Saphir; Editing by Andrea Ricci)

Trump says he might be willing to testify in impeachment inquiry

Trump says he might be willing to testify in impeachment inquiry
By Matt Spetalnick and Patricia Zengerle

WASHINGTON (Reuters) – U.S. President Donald Trump on Monday indicated publicly for the first time that he might be willing to testify in the impeachment inquiry over his efforts to pressure Ukraine “even though I did nothing wrong.”

Lawmakers in the Democratic-led impeachment process in the U.S. House of Representatives have not formally called Trump as a witness in the inquiry into whether he used foreign policy to try to get Ukraine to investigate domestic political opponent Joe Biden.

During former U.S. Special Counsel Robert Mueller’s investigation of Russian interference in the 2016 U.S. election, Trump said he was willing to testify but ultimately gave only written answers. House Democrats said on Monday they are investigating whether those answers are untruthful, according to CNN.

Denying any wrongdoing, the Republican president has railed on Twitter and elsewhere against the impeachment inquiry and attacked witnesses by name.

House Speaker Nancy Pelosi, a Democrat, said on Sunday in a CBS interview that Trump has every opportunity to present his case, including coming before intelligence committee hearings.

“Even though I did nothing wrong, and don’t like giving credibility to this No Due Process Hoax, I like the idea & will, in order to get Congress focused again, strongly consider it!” Trump said on Twitter.

At the heart of the inquiry is a July 25 phone call in which Trump asked Ukrainian President Volodymyr Zelenskiy to open a corruption investigation into former U.S. Vice President Biden and his son, Hunter Biden, and into a discredited theory that Ukraine, not Russia, meddled in the 2016 U.S. election.

The hearings could pave the way for the House to approve articles of impeachment – formal charges – against Trump. That would lead to a trial in the Senate on whether to convict Trump and remove him from office. Republicans control the Senate and have shown little support for Trump’s removal.

House Speaker Pelosi, in her interview on CBS’s “Face the Nation” said: “The president could come right before the committee and speak all the truth that he wants if he wants to take the oath of office … or he can do it in writing. He has every opportunity to present his case.”

Trump’s written answers to federal investigators in the Mueller probe were under renewed scrutiny on Monday, CNN said. The House’s general counsel told a federal court in Washington that lawmakers were examining whether the answers were untruthful, the report said.

Last week, Trump’s former deputy campaign chairman, Rick Gates, testified in the trial of Trump ally Roger Stone that Trump’s 2016 campaign was keen to keep abreast of the release of emails by WikiLeaks website potentially damaging to the Republican’s opponent, Democratic candidate Hillary Clinton.

Gates’ testimony appeared to conflict with sworn written statements that Trump gave Mueller, CNN reported.

HEARINGS THIS WEEK

The public phase of hearings shifts into higher gear this week when a parade of officials will face questioning by Democratic lawmakers seeking details that could link Trump to a pressure campaign against Ukraine.

Eight more witnesses are due to testify in the second week of the televised hearings. They include Gordon Sondland, the U.S. ambassador to the European Union, whose direct interactions with Trump are likely to be a main focus in the investigation of whether the president made security aid to Ukraine contingent on it agreeing to dig up dirt on Biden, who is a leading contender for the Democratic nomination to take on Trump in 2020.

Several witnesses testified last week that they were alarmed over the pressure tactics used against Ukraine, as well as the role of Trump’s personal lawyer, Rudy Giuliani.

The latest round of hearings will stretch from Tuesday to Thursday before the House Intelligence Committee. Democrats are looking into whether Trump abused his power in part by withholding $391 million in aid to Ukraine as leverage to get Kiev to investigate Biden. The money, approved by the U.S. Congress to help U.S. ally Ukraine combat Russia-backed separatists, was later provided.

At the first impeachment hearing last Wednesday, Republicans repeatedly blasted Democrats for not calling an anonymous whistleblower to testify publicly or behind-closed doors. The whistleblower account of the July 25 call led to Democrats opening the inquiry.

“There’s one witness, one witness that they won’t bring in front of us, they won’t bring in front of the American people, and that’s the guy who started it all, the whistle-blower,” Republican Jim Jordan said on Nov. 13.

Democrat Peter Welch responded at the time, “I would be glad to have the person who started it all come in and testify. President Trump is welcome to take a seat right there.”

(Reporting By Matt Spetalnick, Patricia Zengerle; additional reporting by Karen Freifeld, Susan Cornwell, Susan Heavey and Sarah N. Lynch; Writing by Matt Spetalnick and Grant McCool; Editing by Alistair Bell)

China tells U.S. and Britain to stop interfering in Hong Kong affairs

By Estelle Shirbon

LONDON (Reuters) – China’s ambassador to London on Monday accused foreign countries including the United States and Britain of interfering in Chinese internal affairs through their reactions to the violent clashes taking place in Hong Kong.

The Asian financial hub, which was handed over to China by former colonial ruler Britain in 1997 but enjoys a degree of autonomy under the “one country, two systems” formula, has been plunged into chaos for almost six months.

In a dramatic escalation, Hong Kong police were laying siege to a university in Hong Kong, firing rubber bullets and tear gas to push back anti-government protesters armed with petrol bombs and other weapons to stop them from fleeing.

In London, Ambassador Liu Xiaoming called a news conference at the Chinese Embassy to comment on events in Hong Kong and criticise Western governments and media for their responses to the crisis.

“Some Western countries have publicly supported extreme violent offenders,” he said.

“The U.S. House of Representatives adopted the so-called Hong Kong Human Rights and Democracy Act to blatantly interfere in Hong Kong affairs, which are China’s internal affairs.

“The British government and the foreign affairs committee of the House of Commons published China-related reports making irresponsible remarks on Hong Kong.”

Liu also said that by criticising violent actions by the authorities as well as by the protesters, Britain was in effect taking sides.

“I think when the British government criticises Hong Kong police, criticises the Hong Kong government in handling the situation, they are interfering into China’s internal affairs,” he said.

“They look like they are balanced but as a matter of fact they are taking sides. That is our position.”

The ambassador also attacked Western media, saying that reporting on Hong Kong was misleading and did not give enough prominence to violence perpetrated by the protesters. He also dismissed Western media reports on the separate issue of what U.N. experts and activists condemn as repression in China’s western Xinjiang region as “pure fabrication”.

As the ambassador’s news conference was unfolding, the British Foreign Office issued the latest in a series of statements about Hong Kong.

“The UK is seriously concerned by the escalation in violence from both the protesters and the authorities around Hong Kong university campuses,” a Foreign Office spokesman said.

“It is vital that those who are injured are able to receive appropriate medical treatment, and that safe passage is made available for all those who wish to leave the area. We need to see an end to the violence, and for all sides to engage in meaningful political dialogue ahead of the District Council elections on Sunday.”

Also during the news conference at the embassy, a spokesman for Prime Minister Boris Johnson called on all sides to show restraint.

The European Commission on Monday also called on law enforcement authorities to keep their action “strictly proportionate”.

(Additional reporting by Andrew MacAskill, Elizabeth Piper and Guy Faulconbridge; Editing by Alison Williams)

U.S. states declare emergencies to help farmers hit by propane shortage

(Reuters) – At least eight U.S. Midwest states declared emergencies in recent weeks over regional shortages of propane needed by grain farmers to dry their crops amid a late harvest and wet weather.

Illinois, North Dakota, South Dakota, Minnesota, Nebraska, Iowa, Indiana and Wisconsin eased restrictions on the transport of propane to help alleviate the local shortages. There is no nationwide shortage and residential propane prices recently were about 22% below that of a year ago.

Spring flooding in U.S. Midwest farming states led to late harvests that have triggered a surge in demand for the fuel used to reduce moisture in corn crops to ready for sale or to safely store the grain.

“The late harvest and high demand for petroleum products throughout the Midwest have resulted in low supplies of propane as well as difficulty transporting,” according to a notice on Iowa Governor Kim Reynolds’ website.

The state’s declaration relaxes size and weight limits on vehicle transport. An earlier proclamation eased operating-hour rules on propane carriers. The latest rule, like most of the other states’ orders, is effective for a month.

Propane carriers faced four- to six-hour waits last week at the Conway, Kansas, propane terminal that is the nation’s second-largest, and drivers were facing restrictions due to the wait, one official said.

“There is plenty of propane on hand in the country,” said Greg Noll, executive vice president of Propane Marketers Association of Kansas. “We just need to get it from the points that have it on hand to the points where it is needed.”

Texas, which is home to the nation’s largest storage in Mont Belvieu, reported no emergency or shortage.

Consumers have not faced shortages because most homeowners would have had their tanks filled by now, said Noll.

Residential propane prices at the start of the U.S. heating season were under $2 a gallon, or about 22% lower than at the start of winter last year, according to government data issued on Monday.

Propane and propylene stocks were 97.6 million barrels the week ended Nov. 8, up nearly 14 million barrels from a year-ago, the U.S. Energy Information Administration reported last week. It said average wholesale propane prices in the Midwest were 78 cents a gallon excluding taxes, flat from a year earlier.

(Reporting by Arpan Varghese and Nakul Iyer in Bengaluru, Gary McWilliams in Houston; editing by Bill Berkrot)

North Korea’s Kim Jong Un supervises air drills while U.S. and South Korea postpone drills: KCNA

SEOUL (Reuters) – North Korean media reported on Monday that leader Kim Jong Un supervised air force drills for the second time in three days, even as the United States and South Korea decided to postpone their joint air drills to ease denuclearisation talks with North Korea.

The U.S. and South Korea said on Sunday they would postpone upcoming military drills, known as the Combined Flying Training Event, in an effort to bolster a stalled peace push with North Korea. Washington denied the move amounted to another concession to Pyongyang.

The drills, already planned to be scaled back from previous years, would have simulated air combat scenarios and involved an undisclosed number of warplanes from both the United States and South Korea to test readiness.

On Monday, North Korean state news agency KCNA said Kim supervised an airborne landing training of sharpshooter sub-units of the Air and Anti-Aircraft Force of the North Korean army.

Kim “said that it is necessary to wage a drill without notice under the simulated conditions of real war” for “improving the preparedness” of North Korean military units, KCNA said.

On Saturday, KCNA had reported that Kim watched a “combat flight contest” of the flight commanding officers of the Air and Anti-Aircraft Force. A photo in state newspaper Rodong Sinmun showed him smiling amid pilots gathered around him.

It was unclear when Kim oversaw these events, or whether it was on the same day. There were no mention of U.S. or South Korea in the KCNA reports.

U.S. President Donald Trump on Sunday told Kim, “You should act quickly, get the deal done” with the United States, and signed off “See you soon!” on Twitter.

(Reporting by Joyce Lee; Editing by Tom Brown)

Gang violence hits Mexican leader’s ratings, U.S. warns of ‘parallel government’

Gang violence hits Mexican leader’s ratings, U.S. warns of ‘parallel government’
MEXICO CITY (Reuters) – Support for Mexico’s president has fallen some ten percentage points during a surge in gang-related violence, a poll showed on Friday, just as the U.S. ambassador voiced concern about “parallel government” by cartels in parts of the country.

The Nov. 6-11 survey of 1,000 Mexicans for newspaper El Universal showed President Andres Manuel Lopez Obrador had an approval rating of 58.7%, down from 68.7% in late August. The poll had a margin of error of 3.1 percentage points.

Although Lopez Obrador’s popularity remains strong compared with many world leaders, nearly one year into his administration, skepticism is growing about his performance on the back of several shocking security lapses to recently roil Mexico.

Last month the president took flak from critics when it emerged security forces had released a son of the notorious kingpin Joaquin “El Chapo” Guzman after heavily-armed cartel gunmen overwhelmed security forces and briefly took control of the northern city of Culiacan.

That criticism was compounded by outrage and condemnation of the government from some U.S. lawmakers when suspected cartel gunmen massacred three mothers and six children of dual U.S.-Mexican nationality in northern Mexico last week.

U.S. President Donald Trump has responded by suggesting Mexico should join the United States to fight the cartels, fueling concerns that the American leader could use gang violence to put pressure on the Mexican government as he has over migration.

Speaking on Thursday, the U.S. ambassador in Mexico City, Christopher Landau, offered a terse assessment of the situation, saying there were parts of Mexico in which drug cartels formed a kind of “parallel government”.

“It can’t be that the territory where they have this kind of power continues to expand across the country,” Landau said on Thursday during an event in the northern city of Monterrey in remarks that were later broadcast on television.

“The future of Mexico is so important that if we don’t fight this now, it’s going to get much worse,” he added.

A dozen years of gang-fueled violence have claimed well over 200,000 lives in Mexico and murders hit record levels last year.

Taking office in December, the veteran leftist Lopez Obrador has pledged to address the root causes of crime and is pursuing a less confrontational approach to pacifying the country.

He quickly created a new militarized police force, or National Guard, to tackle the problem. But at the behest of Trump, thousands of its members have been sent to the borders of Mexico to help contain illegal immigration from Central America.

(Reporting by Dave Graham; Editing by Marguerita Choy)

U.S. raps global health summit over abortion, sex education

By Nita Bhalla

NAIROBI (Thomson Reuters Foundation) – Ten countries – including the United States, Brazil and Egypt – criticised a global conference on sexual and reproductive health on Thursday, saying it promoted abortion and sex education.

Heads of state, financial institutions and donors were among the 9,500 delegates in Nairobi this week to address maternal mortality, violence against women and voluntary family planning.

But 10 of the United Nation’s 192 member states said they did not support the International Conference on Population and Development’s (ICPD) use of the term “sexual and reproductive health and rights” as it could be used to promote abortion.

Valerie Huber, senior policy advisor with the U.S. Department of Health and Human Services, said not all countries had been fully consulted ahead of the event, organised by the United Nations, Denmark and Kenya.

“There is no international right to abortion. In fact, international law clearly states that everyone has the right to life,” said Huber.

“We cannot support sex education that fails to adequately engage parents and which promotes abortion as a method of family planning,” she said in a joint statement on behalf of the group.

In 2017, President Donald Trump reinstated a decades-old, U.S. government policy that restricts international aid to charities that support abortion.

The so-called global gag rule has forced the closure of health clinics, outreach programs and refugee services by charities, risking the health of millions of women, reproductive rights experts said.

UNDER ATTACK

Sexual and reproductive rights campaigners said the U.S.-led statement was discouraging with women’s rights already threatened by far-right, populist rhetoric across the world, including moves to restrict abortion in the United States.

The ICPD conference marks 25 years since a landmark summit in Cairo when nations agreed to address issues such as maternal health, violence against women and equal opportunities.

Every day, more than 800 women die from preventable causes during pregnancy and childbirth, according to the U.N. Population Fund (UNFPA). More than 230 million women want to prevent pregnancy but are not using modern contraception.

One in three women globally have faced some form of physical or sexual violence in their lifetime, according to the UNFPA.

Organisers of the Nairobi summit denied any suggestion the event was exclusively focused on abortion or sex education.

“I believe their statement is based on some misunderstandings of what this is about,” IB Petersen, Denmark’s special envoy for the ICPD, told a news conference.

“This is not a pro-abortion summit – it is about the ICPD program of action – abortion is part of that.”

Petersen said the summit had already yielded results, citing a pledge by Kenya to end female genital mutilation by 2022.

Almost $10 billion in investments has also been pledged by countries – including Britain, Norway, Germany and Denmark – and a host of private organisations.

The UNFPA estimates countries need about $264 billion to end maternal deaths, gender-based violence, child marriage, and provide family planning to all women by 2030.

(Reporting by Nita Bhalla @nitabhalla, Editing by Claire Cozens and Lyndsay Griffiths. Please credit the Thomson Reuters Foundation, the charitable arm of Thomson Reuters, that covers humanitarian news, women’s and LGBT+ rights, human trafficking, property rights and climate change. Visit http://news.trust.org)

U.S. and China ‘getting close’ to trade deal: White House economic adviser

By Andrea Shalal

WASHINGTON (Reuters) – The United States and China are getting close to a trade agreement, White House economic adviser Larry Kudlow said on Thursday, citing what he called very constructive talks with Beijing about ending a 16-month trade war.

Kudlow said negotiators for the world’s two largest economies were in close touch via telephone but he gave no further details on the timing of a possible deal.

“We’re getting close,” he told an event at the Council on Foreign Relations in Washington. “The mood music is pretty good, and that has not always been so in these things.”

The United States and China have been locked in successive waves of tit-for-tat tariffs that have roiled financial markets and threaten to drag growth in the global economy to its lowest rate since the 2007-2008 financial crisis.

Markets are anxiously awaiting an agreement to end uncertainty that has slowed business investment around the globe. An agreement had appeared likely in May, but those prospects were dashed after U.S. negotiators said China backed away from the text of a draft agreement.

Kudlow’s comments could ease market concerns that flared again this week amid reports that the trade talks had hit a snag over how and when to reduce tariffs, and what level of agricultural purchases could be expected from China.

Markets also soured after U.S. President Donald Trump on Tuesday said he could impose substantial new tariffs on China if no deal was reached.

Kudlow told the audience he had just come from a meeting of the top Trump administration trade officials and was more optimistic.

“It’s not done yet, but there has been very good progress and the talks have been very constructive,” he told the event.

He also opened the door to the possibility that Trump and Chinese President Xi Jinping would not need to meet in person to clinch a deal.

Trump had hoped to sign the “phase one” agreement with China on the sidelines of the Asian-Pacific Economic Cooperation summit in Chile this month, but that possibility disappeared after Chile withdrew from hosting the event.

Kudlow said the White House had hoped to stick to that general timetable. He joked that his preference was for the deal to be signed in his office on the second floor of the White House.

“I don’t like to travel,” he quipped.

(Reporting by Andrea Shalal; editing by Sandra Maler and Grant McCool)

Some migrants waiting in Mexico for U.S. court hearings caught crossing illegally

By Ted Hesson

WASHINGTON (Reuters) – Roughly one in 10 migrants pushed back to Mexico to await U.S. court hearings under a Trump administration program have been caught crossing the border again, a top border official said on Thursday.

Acting U.S. Customs and Border Protection Commissioner Mark Morgan said during a White House briefing that migrants returned to Mexico under a program known as the Migrant Protection Protocols (MPP) have a 9% recidivism rate. Many of those migrants intend to seek asylum in the United States.

“Unfortunately, some of the individuals in the MPP program are actually going outside the shelter environment,” Morgan said. “They’re re-engaging with the cartels because they’re tired of waiting. And that’s when we’re hearing that some of that further abuse and exploitation is happening.”

Morgan said that around 50,000 people have been returned to Mexico under the program. Customs and Border Protection did not immediately respond to a request for more details on his comments.

The administration of Republican President Donald Trump launched the MPP program in January as part of a strategy to deter mostly Central American families from trekking to the U.S. border to seek asylum. Trump officials have argued the bulk of such claims for protection lack merit and that migrants are motivated by economic concerns.

Immigration advocates say asylum seekers sent to wait in Mexican border towns, for the weeks or months it takes for their cases to wind through backlogged immigration courts, face dangerous and possibly deadly conditions.

Migrants who claim fear of returning to Mexico can ask to stay in the United States for the duration of their court case. But just 1% of cases have been transferred out of the program, according to a Reuters analysis of federal immigration court data as of early October.

The administration has said the MPP program and other measures has helped lead to a decline in border arrests. In October, apprehensions along the U.S.-Mexico border fell for the fifth straight month, Morgan said.

The White House briefing followed a leadership change at the Homeland Security Department on Wednesday.

The Trump administration installed Chad Wolf, previously chief of staff to former Secretary Kirstjen Nielsen, as acting secretary. Wolf then announced that acting U.S. Citizenship and Immigration Services Director Ken Cuccinelli – an immigration hard liner – would be elevated to the No. 2 position at the department.

(Reporting by Ted Hesson; Editing by Mica Rosenberg and Lisa Shumaker)

Suspend Hong Kong status in event of China crackdown: U.S. commission

By David Brunnstrom

WASHINGTON (Reuters) – The U.S. Congress should enact legislation that would suspend the special economic status Hong Kong enjoys under U.S. law should China deploy forces to crush protests in the territory, a congressional advisory body said on Thursday.

The U.S.-China Economic and Security Review Commission (USCC), which is tasked with monitoring the national security implications of U.S. relations with Beijing, issued the call in its annual report among a series of tough proposals reflecting a “markedly more confrontational” relationship.

It said that, with Beijing seeking to build a “world class” military and warning of its willingness to take military action to defend its interests, Washington “must plan for worst-case scenarios, while trying to achieve the best ones.”

A push in the U.S. Congress for legislation to support pro-democracy protests in Hong Kong and pressure China to refrain from a violent crackdown has faced obstacles, raising questions about whether it will ever become law.

The House of Representatives unanimously passed Hong Kong human rights legislation last month, including a bill that would place Hong Kong’s special treatment under tighter scrutiny.

A Senate committee approved a similar measure in September but it has yet to be scheduled for a vote by the full body and the White House has not said whether President Donald Trump would sign or veto such a bill.

The commission’s recommendations go further, calling for legislation to suspend Hong Kong’s special status if China “deploys People’s Liberation Army or People’s Armed Police forces to engage in armed intervention in Hong Kong.”

It also urged Congress to direct the State Department to develop specific benchmarks to measure the “high degree of autonomy” the territory is meant to enjoy from Beijing.

Two senior senators began a process on Thursday aimed at quickly passing the Senate bill, amid a surge in violence following months of protests in Hong Kong.

Jim Risch, the Republican chairman of the Senate Foreign Relations Committee, and Marco Rubio, another Republican who is a senior member of the panel, want to pass the bill by unanimous voice vote, but it remains unclear when that might happen.

On Taiwan, which Beijing views as a renegade province but which Washington is bound to help defend, the USCC called for a Pentagon study to form the basis of a 15-year plan of action to deter any attempt by Beijing to absorb the island by force.

It also called for legislation to direct the administration to increase military exchanges and training with Taiwan.

“Just as nations sought freedom from the iron grip of the Soviet system, we are bearing witness to aspirations in both Hong Kong and Taiwan which require our reconsideration of the commitments we made under the one-country, two-systems model,” USCC vice chair, Robin Cleveland, said in introducing the report.

The commission highlighted the deepening ties between China and Russia, and said Congress should seek an intelligence assessment of the effect this could have on the United States and its allies and on how to respond.

USCC recommendations are nonbinding but have become increasingly influential with policy makers. Its prescriptions are routinely denounced by Beijing. China’s Washington embassy did not immediately respond to a request for comment.

The report focused closely on Chinese leader Xi Jinping’s bid to tighten his and the Communist Party’s grip on power and argued he should be referred to as “general secretary” of that party, rather than by the “unearned title of ‘President.'”

The USCC said U.S.-China relations had deteriorated “significantly” in the past year, during which time both sides imposed retaliatory tariffs in a damaging trade war and Beijing stepped up efforts to promote itself as a global leader able to project military power beyond the Indo-Pacific, as well as into space.

(Reporting by David Brunnstrom; Addtional reporting by Patricia Zengerle; Editing by Paul Tait and Jonathan Oatis)