US 'Was' The Largest Contributor To The WHO

 Four and a half years after Donald Trump’s first attempt of withdrawing the United States from the World Health Organization, which was undone by his successor Joe Biden before taking affect, the newly inaugurated president wasted no time to take care of unfinished business.

As Statista's Felix Richter reports, as one of many first-day actions, Donald Trump signed an executive order on Monday, announcing the U.S. withdrawal from the WHO due to the organization’s alleged mishandling of the Covid-19 pandemic, its “failure to adopt urgently needed reforms, and its inability to demonstrate independence from the inappropriate political influence of WHO member states.”

Trump also criticized the organization for demanding “unfairly onerous payments” from the U.S. in comparison to other member states and from China in particular.

As Statista shows in the chart below, the United States is (was) indeed the largest contributor to the WHO.

According to the latest figures published by the organization, the U.S. donated $1.28 billion to the WHO’s budget for the 2022-2023 biennium, including $218 million in assessed contributions, $1.02 billion in voluntary contributions and $47 million in contributions to a contingency fund for emergencies.

China, in comparison, contributed a total of $157 million during the same period, including $115 million in assessed contributions.

In an official statement, the WHO expressed its regret over the U.S. announcement to withdraw, highlighting the organization’s crucial role in protecting the health of the world’s people and the United States’ special role as a founding member and decade-long partner.

“We hope the United States will reconsider and we look forward to engaging in constructive dialogue to maintain the partnership between the USA and WHO, for the benefit of the health and well-being of millions of people around the globe,” the statement concludes.

For the 2022-2023 period, the WHO’s total approved budget amounted to $10.4 billion, meaning that the U.S. contributed 12 percent to the approved budget.

Since the budget includes a $2-billion shortfall in funds, the actual U.S. share of total WHO funding was higher at roughly 15 percent.

https://www.zerohedge.com/geopolitical/us-was-largest-contributor-who

'Direction Of Global Crises To Depend On Trump's Next Steps, Russia's Lavrov Says'

 by Adam Morrow via The Epoch Times,

The outcome of several international crises will depend on decisions made by the Trump administration, Russian Foreign Minister Sergey Lavrov has said.

President Donald Trump returned to the White House on Jan. 20 for his second, albeit non-consecutive, four-year term in office.

“A lot depends on the United States,” Lavrov said at a meeting of Russia’s Security Council held only hours before Trump’s inauguration in Washington.

According to Moscow’s top diplomat, several key allies of Washington—including Australia, Japan, South Korea, and New Zealand—are all “completely guided by the position of the White House.”

“In this sense, they are waiting to see what its final position will be,” Lavrov said.

He added that “numerous conflicts,” including the ongoing war in Ukraine, would likely be impacted by decisions taken by Trump and his administration.

“The global media and social networks have been flooded with news from Washington, coinciding with the arrival of Trump and his team in the [U.S.] capital,” Lavrov said, according to the Kremlin’s transcript of the meeting.

“Speculation, analytical assessments, and forecasts are also intensifying regarding how this event [Trump’s inauguration] may influence various conflicts across different regions of the world.”

At the same Security Council meeting, Russian President Vladimir Putin congratulated Trump on becoming the 47th president of the United States.

Putin also voiced hope of holding talks with Trump to reach a permanent settlement of the war in Ukraine, which will enter its third year next month.

“Moscow is open for dialogue with the United States that will be built on an equal and mutually respectful basis,” the Russian leader said.

Eliminating the conflict’s “root causes,” he added, “is the most essential thing.”

Trump has pledged to quickly resolve the conflict in Ukraine, although it remains unclear how he plans to do so.

Earlier this month, Trump told a meeting of U.S. Republican state governors that Putin “wants to meet, and we are setting it up.”

Upon his return to the Oval Office, where he signed a raft of executive orders, Trump said on Jan. 20 that he could speak to his Russian counterpart “very soon.”

When asked by reporters the following day if any arrangements had been made for a phone call between the two leaders, a Kremlin spokesman said, “Not yet.”

‘Bold Actions’

In a related development, the head of Russia’s sovereign wealth fund appeared to praise Trump, saying the latter’s raft of executive orders showed “decisive leadership.”

The executive orders, which Trump signed within hours of his inauguration, aim to increase U.S. energy production, curb illegal immigration, and reverse the previous administration’s climate agenda, among other agendas.

“President Trump’s bold actions today prove that decisive leadership can change the course of history, unlocking economic growth and transforming global challenges into opportunities for dialogue,” Kirill Dmitriev, CEO of the Russian Direct Investment Fund (RDIF), said on Jan. 21.

A U.S.-educated former Goldman Sachs banker, Dmitriev helped establish contacts between Russian officials and Trump during the latter’s first term in the White House.

Dmitriev is currently subject to U.S.-led sanctions, which Moscow regards as illegal and politically driven.

The RDIF has not indicated whether Dmitriev would play a role in future contacts between Moscow and the Trump administration.

According to the Kremlin, Dmitriev met Putin on Jan. 13—a week before Trump’s inauguration—to discuss the RDIF’s investment portfolio, which is currently valued at 2.3 trillion rubles ($22.53 billion).

https://www.zerohedge.com/geopolitical/direction-global-crises-depend-trumps-next-steps-russias-lavrov-says

Meta ex-COO Sandberg sanctioned in investor lawsuit for deleting emails

 Meta Platforms' former chief operating officer, Sheryl Sandberg, was sanctioned by a judge on Tuesday for deleting emails related to litigation over Facebook's Cambridge Analytica privacy scandal, despite being told to preserve the messages.

The judge, Vice Chancellor Travis Laster, of Delaware Chancery Court, said evidence showed Sandberg used a personal account under a pseudonym and erased messages that were likely relevant to the shareholder lawsuit.

The sanction will make it harder for Sandberg to tell her side of the story and avoid liability at the eight-day, non-jury trial scheduled for April. The judge also ordered her to pay the expenses related to the sanctions motion incurred by the shareholders, which include California's huge teachers' retirement system known as CalSTRS.

"Because Sandberg selectively deleted items from her Gmail account, it is likely that the most sensitive and probative exchanges are gone," Laster wrote in his opinion published on Tuesday.

Meta and an attorney for Sandberg did not immediately respond to a request for comment.

Sandberg had argued she was forthcoming about the personal account and rarely used it for business and when she did, others were copied on the messages so the information was preserved.

Laster imposed a higher standard of "clear and convincing evidence," rather than "preponderance" of evidence, for Sandberg's affirmative defenses, which are her arguments and evidence for why she should not be held liable.

The case was brought in 2018, when it emerged that Facebook allowed data from millions of users to be accessed by Cambridge Analytica, a political consulting firm that worked for Donald Trump's successful campaign for U.S. president in 2016.

Shareholders sued the company's directors and officers for allegedly harming investors by continually violating a 2012 consent order with the Federal Trade Commission to protect users' data.

Shareholders also allege the company's board bargained to pay a larger fine of $5 billion to the FTC in 2019 so that founder Mark Zuckerberg would not have personal accountability. Zuckerberg is expected to be deposed for a second time before the start of the trial, according to court records.

In 2023, Laster refused to dismiss the lawsuit, which he said was a "case involving alleged wrongdoing on a truly colossal scale."

Shareholders also asked Laster to sanction Jeffrey Zients, who was former President Joe Biden's chief of staff and who also used and deleted personal emails when he was on Meta's board. The judge said that Zients' messages were less pertinent because he joined the Meta board in 2018, after the Cambridge Analytica scandal, and was not a company officer.

https://www.usnews.com/news/top-news/articles/2025-01-21/meta-ex-coo-sandberg-sanctioned-in-investor-lawsuit-for-deleting-emails

Trump officials ask US health agencies to pause external communications, Washington Post reports

 The administration of U.S. President Donald Trump has instructed federal health agencies to pause all external communications, such as health advisories, weekly scientific reports, updates to websites and social media posts, the Washington Post reported on Tuesday, citing a dozen current and former officials and sources.

The instructions were delivered on Tuesday to staff at agencies inside the Department of Health and Human Services, including officials at the Food and Drug Administration, the Centers for Disease Control and Prevention, and National Institutes of Health, the newspaper reported. The agencies had no immediate comment.

Trump took office on Monday.

The Washington Post said that it was not clear from the guidance given by the new administration whether the directive would affect more urgent communications, such as foodborne disease outbreaks, drug approvals and new bird flu cases.

Stefanie Spear, a Department of Health deputy chief of staff, instructed agency staff on Tuesday morning to pause external communications, the newspaper reported.

Some officials cited by the newspaper were quoted as saying that the move is aimed at helping newly installed Trump health officials understand the vast flow of information coming out of health agencies.

https://www.usnews.com/news/us/articles/2025-01-21/trump-officials-ask-us-health-agencies-to-pause-external-communications-washington-post-reports

Microsoft relaxes data center grip on OpenAI amid $500 billion joint venture

 Microsoft on Tuesday said it has changed some key terms of a deal with OpenAI after the ChatGPT creator announced a joint venture with Oracle and Japan's SoftBank Group to build up to $500 billion of new AI data centers in the United States.

President Donald Trump gathered the leaders of the "Stargate" effort at the White House on Tuesday to announce the deal, saying it was intended to help keep the United States ahead of China and other rivals in the global AI race, using chips from Nvidia.

Since 2019, Microsoft has had arrangements with OpenAI that gave the Redmond, Washington-based company the exclusive right to build new computing infrastructure for OpenAI. Microsoft, in a blog post, said it has "approved OpenAI's ability to build additional capacity, primarily for research and training of models."

That opened the door for OpenAI to work with Oracle.

A person familiar with the deal said that Stargate is a joint venture structured as new entity in which OpenAI has an equity stake, governance rights and operational control. It will have a separate board appointed by the founding members and its own CEO, this person said. The venture will also have other investors including United Arab Emirates firm MGX.

Microsoft, along with Nvidia and Arm, will be a "technology partner" in the new venture, but is not listed as an equity funder. SoftBank CEO Masayoshi Son is will be the entity's board chairman, according to a statement from OpenAI posted on social media site X.

But Microsoft said that it still retains the exclusive right to offer OpenAI's API - technology shorthand for application programming interface, which is the main way that software developers and business customers buy OpenAI's services. That means Oracle will not be able to host OpenAI's primary source of revenue.

Oracle did not immediately respond to a request for comment on Microsoft's statements.

Microsoft said it has "revenue sharing agreements that flow both ways" with OpenAI.

"The key elements of our partnership remain in place for the duration of our contract through 2030, with our access to OpenAI’s IP, our revenue sharing arrangements and our exclusivity on OpenAI’s APIs all continuing forward," Microsoft said.

Microsoft also said "OpenAI recently made a new, large Azure commitment that will continue to support all OpenAI products as well as training," referring to Microsoft's Azure cloud computing service.

https://www.aol.com/microsoft-relaxes-data-center-grip-011928410.html

US Racing Against Time To Reclaim Supply Chain From China: Former Commerce Official

 by Terri Wu and Jan Jekielek via The Epoch Times (emphasis ours),

A former Department of Commerce official recently urged American officials and the general public to adopt an elevated sense of urgency to address the threat of U.S. supply chain dependence on communist China.

An engineer checks a laser cutting machine, to be sold to automotive manufacturers for the production of new energy vehicles, at a facility in Wuhan, in China's central Hubei province on June 12, 2023. STR/AFP via Getty Images

“We are running out of time. We really need to race to solve this,” Nazak Nikakhtar, former assistant secretary for Industry and Analysis during the first Trump administration, recently told EpochTV’s “American Thought Leaders,” adding that the problem had been neglected for “at least two decades.”

In her view, the issue stems from the deliberate strategic actions of the Chinese communist regime. She said that for many years, Beijing has engaged in unfair trade practices—often paying subsidiaries to flood the global market with cheap made-in-China products that others can’t compete with, thereby gaining control of an industry’s supply chain and moving on to undercut the next one.

Compared to China’s dominance in the production of steel, batteries, solar cells, and personal protective equipment—all of which the American public is aware of due to the tariffs imposed during the Trump and Biden administrations—China’s dominance in lab-grown industrial diamond production is equally critical yet lesser known.

These diamonds are essential for cutting tools—crucial for building, drilling, and manufacturing. The affected industries range from cars to aerospace and defense. According to the U.S. Geological Survey (USGS), China produces 95 percent of the world’s synthetic diamonds, and U.S. dependence on imports has fluctuated between 80 and 95 percent since 2018.

On Dec. 3, China’s ruling communist party banned the export of industrial diamonds to the United States, along with gallium, germanium, and antimony—materials critical for making semiconductors. The decision was announced a day after the United States added advanced semiconductor manufacturing equipment and software to its export controls to curb Beijing’s access to these critical elements for developing artificial intelligence.

Diamonds for Industrial Power

Also referred to as “super hard materials,” industrial diamonds are part of “Made in China 2025,” the Chinese communist regime’s ten-year industrial policy aimed at achieving dominance in advanced manufacturing worldwide.

Since 2012, the regime has classified the manufacturing of diamonds and related equipment as “strategic new sectors.” Central and local authorities developed policies that promoted these businesses and provided subsidies.

Although the specific amounts are unclear, sporadic Chinese media reports have revealed annual subsidies of between 10 million yuan ($1.3 million) and 50 million yuan ($6.8 million) per company.

“Imagine a U.S. economy with zero manufacturing,” Nikakhtar warned.

USGS data indicate that the nation lacks a stockpile of industrial diamonds, and in 2023, the estimated domestic production of the diamonds met only 16 percent of the total volume needed in the United States.

“It’s just time to wake up. China has made clear that it is moving in this direction. We’ve got to take them at their word,” she said. “China has already shown us through its recent export controls that it means business, and it really has the ability to hurt the U.S. economy.”

In the past eight decades, Congress has delegated extensive authority to the president to set tariff rates. A few laws allow America’s chief executive to use tariffs to set foreign policy and protect national security interests.

During Nikakhtar’s tenure with the Commerce Department’s Bureau of Industry and Analysis, President Donald Trump invoked Section 232 of the Trade Expansion Act of 1962 in March 2018 to impose a 25 percent tariff on steel and a 10 percent levy on aluminum from all countries except Canada and Mexico.

In October 2021, President Joe Biden reached an agreement with the European Union and the United Kingdom and replaced the tariffs with quotas in return for lifting the retaliatory tariffs on U.S. exports.

Trump also used Section 301 of the Trade Act of 1974 to impose tariffs on Chinese imports worth approximately $300 billion annually. The Biden administration kept all the duties and added more last year, following a review conducted every four years.

As Trump begins his second term, Nikakhtar stated that the new administration is “very confident in how they’ve utilized the novel laws in the past” and will continue leveraging available legal mechanisms to apply tariffs to correct market distortions caused by unfair trade practices.

https://www.zerohedge.com/geopolitical/us-racing-against-time-reclaim-supply-chain-china-former-commerce-official

Major US Firms Demand Suppliers Embrace "China + 1" Factory Strategy

 The Covid pandemic sparked a wave of global trade uncertainty, prompting US companies to reevaluate their complex supply chains centered in China by either friend-shoring, near-shoring, or re-shoring. This shift toward friend-shoring in Southeast Asia (ex-China) has positioned Thailand as a pivotal ally in Washington's US-China decoupling strategy.

The 'America First' economic policy directed by President Trump will focus on, most importantly, re-shoring supply chains out of China and back to the US, followed by near-shoring and friend-shoring. Trump is also set to unleash tariffs on foreign goods as the US-China decoupling gathers pace. 

Focusing on friend-shoring trends, Goldman's Allen Chang, Verena Jeng, and others hosted the "Make in Thailand Tour" last week.

 

During the visit to AI server liquid cooling, automotive electronics, electric vehicles, and other high-tech factories in the Southeast Asian country, Chang found a growing number of US companies are requiring suppliers to have not only Chinese factories but also a "plus one" location outside the world's second-largest economy for diversification purposes. This has only sparked a boom in business activity in Thailand.

Chang's first takeaway from the visit to nine factories in Thailand is that geopolitical tensions between US-China are the primary driver of business expansion: 

Companies shared that US clients started to mention "China + 1" (production sites outside of China) in 2018, turned more serious in 2022 during COVID with China under lockdown, and increased focus further in 2024 during the US elections. Companies shared some of their clients have stated that they will no longer accept suppliers (for new projects) without "China + 1" by end of 2025. We see geopolitical tensions as the major reason companies are diversifying production into Thailand.

Here are the other main takeaways driving Thailand's expansion: 

• Clusters across Southeast Asia: Companies shared there are different clusters across countries in Southeast Asia, and supply chain usually moves with clients to secure timely services. Other than the consideration of distance to the clients, there are different features across different countries as well. For example, Vietnam is closest to China supply chain and developed early; Thailand is open for foreign investment with solid infrastructure; Malaysia's labours have higher education especially Penang where global-tier semiconductors leaders are developing the OSAT industry since 1970s.

•  AI servers, PCs, Automotive, LEO satellites are expanding in Thailand: Companies shared that three industries are showing a clear trend of supply chain expansion in Thailand: (1) AI servers supply chain: Quanta announced in Aug 2024 plans to invest US$24m; Inventec announced in late 2023 plans to invest US$152m; Auras' investment of US$49m to US$55m for the second factory in Thailand; ZDT's investment of US$250m; Delton's investment of US$180m; WTT's investment of US$75m; (2) PC supply chain: Chicony's investment of US$45m for the phase 2; (3) LEO satellites: Compeq's investment of US$302m; (4) Automotive: companies shared about more Chinese car OEMs expanding to Thailand, e.g. BYD, Chery, Neta, Greatwall, Geely, etc., leading to supply chain expansion.

• Lower labour costs, but lower efficiency as well: Companies shared direct labour compensation is around 20-50% lower compared to China, or at Rmb3,000 (US$410) per month; however, for those who speak Mandarin, the costs could be double. Besides, the efficiency is one-third of Chinese labor, and thus the cost is 10-20% higher than China. To reduce costs, most companies have automated production in Thailand, and leverage government support (e.g. tax benefits, tariff benefits, etc.).

• Hiring is not difficult: Companies shared that hiring is not difficult in Thailand, as there is also labour from countries nearby, e.g. Myanmar. Besides, the working environment is good (new air-conditioned factories) with accommodation or shuttle bus provided, making it easier to attract labour. Some companies shared they received about 90 applications for 20 labour positions.

• Training in China: To meet US clients' needs, most factories we visited target to start mass production by mid 2025. To secure a smooth production ramp up, most companies sent local labour to their factories in mainland China for training, and then back to Thailand. Some companies also shared they have 70% Chinese labour in their Thailand factories currently to secure a smooth trial run to production. In general, it takes 12-18 months for factory construction in Thailand (slower than China given there's rainy season in Thailand), 6 months for equipment set up, 6 months for local labour training in mainland China, leading to mass production target by mid 2025.

• OEM, ODM / assemblers are closer to airports and ports: We see OEMs, ODM / assemblers factories are 40-60mins drive from airports / ports, while supply chain / component makers are 2-3 hours drive away from airports / ports, but within 1 hour drive to OEMs, ODM / assemblers. Those who invested earlier in Thailand, also enjoy closer distance to airports / ports. For example, Chicony's Thailand factory dates back to 1989; Auras invested in Thailand in 2019; PI was also early in Thailand and moved to the inner lands to enjoy more tax benefits from the local government.

• Competition from local peers: All companies we visited didn't seem worried about local competitors given Technology is not the focus of Thailand (i.e., less students majoring in Electrical Engineering). The government is also open to foreign investment without requirement of forming JV with local peers or cultivating local peers. However, the government strongly encourages local production. For example, the government expects car assembly and components to be produced in Thailand, but not necessarily by Thailand companies.

• Government policies are supportive: Most companies we visited enjoy 8-year tax free, and they see a stable environment for business operations, with supportive government policies, such as BOI (Board of Investment of Thailand: up to 16 years tax free, tariff free for equipment and raw material imports, funding support for R&D centers, etc.) and EEC (Eastern Economic Corridor: tax free, tariff free for equipment and raw material imports, flexibility in foreign currency outward remittance, etc.). Infrastructure (e.g. road quality) and utilities (electricity, water supply) are also efficient, with stable labour conditions (e.g. less labour strike, disruptions etc).

• EV market in Thailand: Companies shared that the EV penetration rate in Thailand is around 13-14% (in 2024), or 80k units, which is the largest EV market in Southeast Asia, and the penetration rate could further go up in 2025-26E. The major EV brands in Thailand are all from China, with BYD enjoying 30%+ market share in Thailand's EV market, followed by Neta at 20%, and other major brands including Changan, SAIC, etc. Companies shared China remains the strongest market for EV, considering the infrastructure (e.g. charging stations) in Thailand is not yet as comprehensive as China.

Major restructuring of supply chains has been underway since Trump's first term as re-shoring, near-shoring, and friend-shoring trends will go into hyper-drive under Trump's second term. 

In a separate note, Goldman Chief Economist Jan Hatzius, alongside Alec Phillips, David Mericle, and others, commented on Trump's day one of office on Monday, calling the president's tariff reveal "more benign than expected." This was mainly because Trump did not comment on China's tariff policy while negotiations appeared ongoing with Chinese President Xi Jinping. However, Trump directed his trade efforts toward Canada and Mexico, threatening a 25% on both countries by February. 

As for Thailand, it has become an integral part of the US friend-shoring strategy. The big takeaway comes from the Goldman note on US companies demanding suppliers have a plus one factory outside of China, providing tailwinds for Thailand.

Meanwhile, economic tailwinds have likely produced the next yachting boom for the wealthy residents of Thailand.

https://www.zerohedge.com/technology/major-us-firms-demand-suppliers-embrace-china-1-factory-strategy