US Business

The United States and Taiwan have launched talks aimed at deepening their trade ties as Washington vies to bolster its influence in the region to counter China. 

The process, labeled the US-Taiwan Initiative on 21st-Century Trade, follows an agreement President Joe Biden announced last week with 12 Asian economies, which excluded Taiwan.

Like that effort, the discussions with Taiwan will not involve tariffs or market access — items that would require congressional approval, officials said.

In a statement, the US Trade Representative said that “both sides will work at pace… to develop an ambitious roadmap for negotiations for reaching agreements with high-standard commitments and economically meaningful outcomes.”

Taiwan’s lead trade negotiator John Deng said the talks would “open up more room for economic cooperation.”

“We can say this is a historic breakthrough,” he added, speaking at a press conference in Taipei.

Despite the limited scope of the talks — which a senior administration official said was in keeping with the “unofficial” relationship with Taipei — they are likely to anger Beijing, which claims Taiwan as part of its territory and bristles at any sign Washington is treating the self-governing democracy as an independent nation.

Beijing frequently engages in saber-rattling to underline its point — for example on Monday it made the second-largest incursion into Taiwan’s air defense zone this year, with Taipei reporting 30 jets entering the area.

US Secretary of State Antony Blinken has accused China of “increasingly provocative rhetoric and activity.” 

– ‘Robust’ relationship –

China has also tried to stop any international recognition for the island, opposing its participation in global fora. 

But Biden is under pressure to deepen ties with Taiwan after a bipartisan group of 52 senators urged him to include the island in the Indo-Pacific Economic Framework (IPEF) launched last week, which includes about 40 percent of the global economy.

They argued in a letter to Biden that leaving an important trading partner out would “allow the Chinese government to claim that the international community does not in fact support meaningful engagement with Taiwan.”

A senior official said there is still time to add Taiwan to that effort.

“We didn’t include Taiwan in the initial launch. However, going forward, we intend to take a flexible and adaptable approach to IPEF participation,” the official told reporters.

The official reiterated Washington’s “long-standing one China policy,” but said the Biden administration also maintains a “robust unofficial relationship with Taiwan and… is committed to deepening it.”

– ‘Concrete ways’ –

Deputy USTR Sarah Bianchi and Taiwan’s Deng met on Wednesday to launch the new initiative. 

The trade agency said it was “intended to develop concrete ways to deepen the economic and trade relationship, advance mutual trade priorities based on shared values, and promote innovation and inclusive economic growth for our workers and businesses.”

The first meeting under the initiative will be held in Washington later in June, and will cover customs procedures and regulations, including rules governing agriculture trade, worker rights and the fight against “harmful non-market policies.”

Another administration official said the goal is to produce a “high framework, binding agreement,” but gave no timeframe for reaching a deal.

Taiwan is the 10th largest export market for the United States, as well as a vital source of semiconductors. 

A global shortage of the latter is hitting industries that rely on them from cars to smartphones, and pushing inflation higher.

A spokesman for the Taiwanese government on Wednesday emphasized the “crucial role” the island plays in the semiconductor supply line. 

“In light of the increasing trade conflict between China and the US, and also the fallout from the Covid pandemic to the world’s economy… the US government has realized that it needs to strengthen the economic and political links with Taiwan to ensure the stability and safety of the supply chain,” Lo Ping-cheng added.

The US Commerce Department has launched a separate dialogue with Taipei on tech and investment — two other areas covered by IPEF.

If Tuscany has Chianti, the Italian region of Emilia-Romagna has “Motor Valley”, an area that boasts one of the highest concentrations of luxury sports cars and motorbikes in the world.

The so-called Land of Motors, covering around 1,000 square kilometres of prime agricultural land roughly between Bologna and Modena, is home to Lamborghini and Ferrari, Maserati and Ducati, in addition to less well-known brands.

Every year — with a hiatus for coronavirus — industry types and fans flock to Modena for a weekend to talk business and admire the spectacular cars and bikes displayed around town.

Among those on show this year was a Pagani Huayra, a futuristic hypercar produced just a few kilometres away in Pagani’s base at San Cesario sul Panaro, where vehicles are made to measure — and start at a cool 2.6 million euros ($2.8 million).

Christopher Pagani, the son of the founder and communications chief, told AFP it takes between eight and nine months to manufacture a car, with customers normally waiting two years between order and delivery.

“In 2022 we are producing some 40 to 45 cars. They are all special because every customer has the opportunity to get in touch with us, visit us, and go on this journey,” he said.

In the factory — dubbed the “workshop” — a few dozen mostly young people work in the hushed and ordered environment of a science lab.

For the brand, weight is everything and they use 40 different types of carbon fibre, as well as titanium and aluminium to make the car as light as possible.

But Pagani said talks were underway with clients about a potential electric version, even if would be heavier due to the battery, as part of a trend towards greener vehicles.

– Best place to be –

Pagani’s father, Horacio, founded the company in 1998 after working at Lamborghini, another of Italy’s top luxury brands based in the area.

According to legend, Ferruccio Lamborghini, the wealthy owner of a tractor factory, turned his hand to sports cars in the 1950s after complaining about the Ferraris he owned.

Enzo Ferrari is said to have told him that if he didn’t like what he made, he should go and build his own.

Ferrari’s Maranello site is located outside Modena, while the region also boasts Dallara, which provides cars for IndyCar racing in the United States, and motorbike firm Energica. 

“The success dates a long way back, it is the fruit of several generations,” said Andrea Corsini, who handles transport, infrastructure and tourism for the Emilia Romagna region.

The name “Motor Valley” alludes to California’s Silicon Valley, where a grouping of tech companies drew talent and cash.

Here, manufacturers found a ready skills base among farmers who, in the immediate aftermath of World War II, had to learn to repair their own machinery.

Today, the area comprises 16,000 companies, four racing tracks, six training centres, and employs more than 90,000 people, according to think tank Riparte l’Italia.

“In terms of job opportunities and contacts with companies, this is the best place to be,” said 24-year-old Emilio, studying car engineering in the south of Italy, who came to Modena for the weekend.

The sector records a turnover of 16 billion euros a year, of which seven billion is in exports, and is in good health, with Bugatti, Ferrari, Lamborghini, Bentley and Porsche all posting record results in 2021.

It was also here that Bugatti produced in the early 1990s its celebrated B110 GT, sold for a staggering 500 million lire (around 260,000 euros at the time).

A Japanese tax official was arrested over his alleged involvement in a fraud ring that recruited 200 people to steal $1.5 million of Covid-19 aid, media and police said Thursday.

The 24-year-old and his friends are accused of convincing people to apply for government subsidies for business owners through deception, according to public broadcaster NHK and other outlets.

They reportedly lured around 200 participants — mostly university and high-school students — through a messaging app, promising that the money would be invested in cryptocurrency.

A Tokyo police spokesman told AFP a “24-year-old public servant” was arrested Wednesday “for fraudulently obtaining money under the name of virus subsidies”, along with a 22-year-old who worked for an unnamed company.

Reports said the alleged fraudsters are suspected of stealing a total of 200 million yen ($1.54 million), but the initial arrests are for a smaller amount of around one million yen, with the rest under investigation.

Five other people, all in their 20s, have also reportedly been arrested over the case.

The scheme’s mastermind may still be on the loose, however, with police chasing a man in his 30s who left Japan for Dubai in February, according to the Yomiuri Shimbun daily.

It is not the first time Japan has seen scandals over financial aid for people struggling during the pandemic.

Last month, a man given $360,000 in error was arrested after saying he gambled away the money online, while this week, three family members were reportedly arrested for illegally receiving 960 million yen in Covid-19 aid. The father is on a wanted list after fleeing to Indonesia.

Elon Musk knows how to dominate a news cycle, but for all the coverage of the world’s richest man, the tech billionaire’s early life in apartheid-era South Africa remains sketchy.

Amid Musk’s roller-coaster pursuit of Twitter, his father Errol Musk told AFP in an interview that he had tried to raise his sons “as South African boys”, instilling in them the same discipline he learnt in the military.

“I was a strict father. My word was the law. They learnt from me,” the 76-year-old said.

He said that even as a pre-schooler, Elon had set his sights on becoming the wealthiest man alive, crediting that uber-macho “South African boy” upbringing with driving his ambition.

“It’s part of the way we lived, the way I lived. We strove to be the best we could,” he told AFP in an interview from his home in the quaint oceanside town of Langebaan, 120 kilometres (70 miles) from Cape Town.

“I strove to be the best in the type of business that I was in,” the retired engineer and property developer said.

“It’s sort of our make-up. So we sort of expect that.”

Musk was born in Pretoria on June 28, 1971, to Errol and Maye, a Canadian model and dietitian who grew up in South Africa. 

He was the oldest of three children, closely followed in age by his brother Kimbal and sister Tosca.

He left South Africa at the height of apartheid to avoid the unpopular army draft.

After his parents’ acrimonious divorce, Elon decided to live with his father — taking an overnight train alone when he moved in.

“I go down to Johannesburg Station and there was this little Elon, beaming face, come up on the train by himself, nine years old,” his father recalled.

Yet Elon has said on numerous occasions that he had an unhappy childhood.

As an adult, father and son suffered a major split when Errol had a child in 2017 with a stepdaughter four decades his junior.

“Elon thought that was not very good. From my point of view, I take life as it comes,” the elder Musk said.

But he says their relationship has since improved. 

“We care about each other,” Errol said.

– ‘Typically Elon’ –

Errol says his son has always been unusual — long before his controversial outbursts on Twitter.

As a child, Elon spoke without a filter, played pranks and often joined adult conversations, he recalled.

“Even as young as four years old, he would tend to sit with adult people,” said Errol.

He recounted one occasion when “one man said to him, ‘Hey little chap, why don’t you join the kids and run around?’ And he’d say, ‘No, I prefer to listen to you’.”

When young Elon announced that he planned to be a millionaire, his father remembered, another adult scoffed at the boy.

He remembered “this man laughing, holding his drink and cigarette and saying, ‘When you grow up you’ll see. It’s not like that… you’re going to be disappointed’.”

Elon responded, “‘Well, I think you’re stupid’,” said Errol.

“That’s typically Elon,” said the father.

He also recalled a time when Elon made a hurtful comment to a schoolmate about his father’s suicide.

The boy pushed Elon down a staircase at school, injuring him so badly he had to be hospitalised.

When he heard what had happened, Errol wanted to defend his son.

“But I realised Elon overstepped the mark with this little boy. I had to drop it,” he said.

After that incident, Errol moved Elon to the prestigious Pretoria Boys High School.

One of the school’s ex-headmasters confirmed to AFP that Elon had donated one million rand ($64,500, 60,000 euros) to his alma mater.

– ‘Very caring’ –

The donation was organised through Musk’s assistant. That’s also how his father communicates with him.

During the interview with AFP, Errol received what he said was an email from Elon offering to pay for recent eye surgery.

“Elon is a very caring person. He really means it when he says that he wants to save humanity. This is not a slogan or some sort of pitch. This is real.”

Errol recalls his 70th birthday as another example of Elon’s generosity.

“I’m a South African man. I’m not concerned about my birthday. But it was very nice,” said Errol.

Unbeknown to him, Elon had invited a bunch of his celebrity friends, including Hollywood stars.

During the lunch, they discussed his support for former US president Donald Trump.

“They all had a good laugh at that, and how could I be so stupid as to support Trump?”

That was his last physical interaction with his son, six years ago. They rarely speak on the phone — something he says is not unusual. 

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The charging of the Louvre’s former director in an antiquities trafficking investigation has shone a light on a vast, transnational criminal problem that remains fiendishly difficult to target. 

Ancient burial grounds around the world have increasingly become “open-air supermarkets” for everyone from petty thieves to organised criminals, said Vincent Michel, professor of archaeology at the University of Poitiers in France.

He describes a “sophisticated chain” stretching from sites in unstable places such as Iraq, Syria and Libya — but also many other parts of the world — via transit countries to auction houses and private collectors in Europe and the United States, and increasingly Asia and the Gulf. 

It is an illicit trade that “serves mafias, drug traffickers and terrorist groups, abusing collectors and museums with complete impunity”, said Michel. 

The ex-director of the Louvre in Paris, Jean-Luc Martinez, was charged last week over the purchase of a pink granite stele depicting the pharaoh Tutankhamun and four other historic works for eight million euros ($8.5 million) by the museum’s branch in Abu Dhabi. 

Martinez, who has strongly denied any wrong-doing, is accused of turning a blind eye to fake certificates of origin for the pieces, a fraud thought to involve several other art experts, according to French investigative weekly Canard Enchaine.

Such allegations are far from a rarity in the art world where the value of looted antiquities is thought to reach into the “tens or even hundreds of millions of euros” per year, according to Michel. 

He trains police, judges and customs officials to help counter the trade but resources are notoriously limited in the sector, and he has called for deeper public awareness and a more concerted interdisciplinary fight. 

“This transnational crime feeds a predatory economy that undermines our national security. It is also an irreversible attack on heritage because a looted object, taken out of its context, loses all scientific value,” Michel said.

– Global reach – 

The Covid-19 pandemic has only deepened the challenge. 

Egyptian authorities say the number of illegal digs jumped massively in recent years to hit 8,960 in 2020. 

Looters use metal detectors to hunt gold, silver and bronze items, often stored in perfect condition in tombs thanks to the arid climate. 

But the problem is not limited to poorer countries. 

France has seen an uptick in looting from archaeological sites, said Xavier Delestre, who works for the regional cultural authorities based in Marseilles. 

He said high-value items were often laundered through so-called “freeports” — tax haven storage sites with minimal oversight in places like Geneva, Luxembourg and Singapore — emerging with false back-stories. 

Lower-value items ended up on social media and online stores. 

– ‘Almost undetectable’ – 

Michel said counterfeiters are “incredibly ingenious” when it comes to masking the illicit origin of items, creating documents with a careful mix of false and true information, fabricating false export permits or purchase invoices — even UNESCO certificates. 

Once reintroduced into the legal market, “a looted item is almost undetectable,” he added. 

Internet sales have made it even harder for law enforcement officials to trace criminals and keep a handle on the problem.

A 2019 report by US counter-trafficking organisation ATHAR tracked 95 Arabic-language Facebook groups specialising in antiquities trafficking, with a total of nearly two million members. 

“Facebook offers a veritable digital toolbox for traffickers to utilise, including photo and video uploads, live streaming, disappearing ‘Stories’, payment mechanisms, and encrypted messaging,” the report said.