National News Regulator prepares 4G guideline for govt nod

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1 DSEX 5, Gold (Ounce) $1, Dollar (Buy) (Sell) REPO Rate (03/04/2017) 3.15% CSCX 10, Oil (Barrel) $51.32 Euro (Buy) (Sell) REPO Rate (02/04/2017) 3.06% Source: DSE and CSE Source: Bloomberg Source: One Bank Limited Source: Bangladesh Bank (W AV)) National News Regulator prepares 4G guideline for govt nod India to offer $5b line of credit to BD BD-India MoU likely on 'economic geology' Govt declines WB funds for ensuring security of state firms Janata weighed down by restructured large loans BB raises credit card loan ceiling Keep VAT low for gas and electricity: economists Better Work forum applauds progress, calls for more actions Govt, owners, workers to settle conflicts thru' talks TIB against allowing undisclosed money in next budget BSEC may issue cyber security guidelines for listed cos International News India, UK talk up post-brexit trade prospects US business seeks action, not trade war, in Xi-Trump summit IMF releases $1b loan for cash-strapped Ukraine National News Regulator prepares 4G guideline for govt nod The telecom regulator has finalised its proposed licensing guideline for 4G services, which will be sent to the government shortly for final approval. Bangladesh Telecommunication Regulatory Commission has proposed 15 percent revenue sharing with the operators from fourth generation (4G) services. 1 P a g e

2 Mobile operators are currently sharing 5.5 percent of their gross revenue from 2G and 3G services with BTRC, in addition to 1 percent as contribution to the social obligation fund. We have proposed Tk 15 crore as licence fees for 15 years and another Tk 7.5 crore as annual fees, BTRC Chairman Shahjahan Mahmood told The Daily Star yesterday. After getting the approval, we will offer 4G licences to the existing operators, who will be able to launch 4G within a couple of months as they are already enjoying technological neutrality in the 2100 band, said Mahmood. The mobile operators already tested their network for 4G services in the 2100 band and got a reasonable 50 to 100 Mbps of speed for both uploads and downloads. At present, they are offering 3G services in this band, which they acquired in 2013 in an auction at a price of $21 million per MHz. BTRC also proposed Tk 150 crore for bank performance guaranty, which has to be paid in two separate segments. Operators will have to pay Tk 75 crore for the rollout obligation and another Tk 75 crore to clear future dues, if any. Under the rollout obligation, operators will have to extend 4G services in all the divisional headquarters within the first nine months of getting the licence; they are also bound to rollout these services in the district headquarters within 18 months, according to the guideline. They will get a total of three years to rollout 4G services across the country. If operators comply with these obligations, they will be eligible to get a refund of Tk 25 crore in each segment, said an official involved in the guideline formation process. The regulator recommends allowing the entry of one new player in the market; the entrant will have to purchase spectrum in the upcoming auction. The commission also formed a committee on drafting the spectrum auction guideline and that will be completed soon, said the BTRC chairman. BTRC has 15 MHz of unsold spectrum in the 2100 band, 10.6 MHz in the 1800 band and some spectrum in the 900 band that was released from Airtel after its merger with Robi. Mobile operators use the 2100 band for 3G services and 900 and 1800 bands for 2G services. But after getting technology neutrality, they can use the latter two bands for 4G services, which will be cost effective. For the auction, the government earlier approved $25 million for each MHz of spectrum, but now they are planning to add $7-$8 million per MHz for technology neutrality, said the BTRC chief. For their existing spectrum, operators have to pay an additional $7-$8 million per MHz for technology neutrality as well, added Mahmood. The rate is yet to be fixed. Technology neutrality allows the operators to offer any service in any band, which will reduce the operators' cost of doing business and improve service quality. 2 P a g e

3 Earlier in February, Prime Minister's ICT Affairs Adviser Sajeeb Wazed Joy directed BTRC to introduce 4G services in the country as soon as possible. He also approved technology neutrality, which operators have been demanding for a long time. Currently, 4G services are available in all the neighbouring countries, except Bangladesh. As of February there are around 6.67 crore mobile internet users in Bangladesh, 3 crore of whom use 3G services. Source: India to offer $5b line of credit to BD India hopes to fund 17 projects in Bangladesh through a proposed $5-billion line of credit, which is likely to be finalised during Prime Minister Sheikh Hasina s visit to the neighbouring country later this week. The bulk of the funds are expected to be used for connectivity projects - railway projects, road construction and maintenance - as India eyes transit to the northeast and Southeast Asia via Bangladesh. Bangladesh finance minister AMM Muhith is currently visiting Delhi to fine-tune modalities of the line of credit, reports Economic Times. The loan has a 20-year repayment term, including a grace period of five years and a 1 per cent annual interest rate along with a 0.5 per cent commitment fee. Officials said that besides railway connectivity links, ferry services connecting Assam, Bangladesh and West Bengal, and running cruise liners between the two countries, along with several road projects, could be part of 40 pacts and memorandums of understanding that are likely to be signed during Hasina's visit. The connectivity initiatives will also enable Bangladesh to have smooth transport links with other parts of South and Southeast Asia including Nepal and Bhutan, officials on India said. China has offered $24 billion in development aid to Bangladesh but officials from Dhaka said that India is a special friend as a neighbour and others, including China are only partners. Bangladeshi officials, on anonymity, said that in the case of China, the project is identified first and then the money is given. But India offers a line of credit first and then identifies the projects. Through transport initiatives, India and Bangladesh plan to revive historical connectivity links snapped after Partition and 1965 Indo-Pak War. Hasina is due to arrive on Friday but her main day of engagements in India will be Saturday, when she is scheduled to meet Indian Prime Minister Modi, hand over awards to families of Indian army men slain in 1971 war and attend a banquet thrown in her honour by the President. West Bengal Chief Minister Mamata Banerjee has been invited to attend the dinner as well. Source: BD-India MoU likely on 'economic geology' Bangladesh and India move to foster 'economic geology' under a new accord with the focus on collaboration in the exploration of gas, coal and other mineral resources, officials said Tuesday. 3 P a g e

4 The two countries are set to sign a Memorandum of Understanding (MoU) in this regard during the upcoming visit of Prime Minister Sheikh Hasina to New Delhi. The entire package of MoU that has already been finalized received necessary nod from the Prime Minister's Office, officials concerned told the FE. They said the memo will specifically be aimed fostering closer cooperation in the areas of 'economic geology' with special emphasis on mutual cooperation in the exploration of natural gas, coal and new resources. 'Geological Survey of Bangladesh' and its Indian counterpart, 'Geological Survey of India', will be the two parties and signatories to the MoU to be signed during the premier's tour, scheduled for April This happens to be the first such accord between the two countries in the areas covering geological resources. Energy will be on top of the agenda during the upcoming visit of Prime Minister Sheikh Hasina, with a number of Indian energy giants racing to tap the growing demand for new energy sources in Bangladesh. Earlier, during the secretary-level energy dialogue between India and Bangladesh last month, the two countries primarily agreed to work on an MoU for bigger collaboration in geological surveys. One of the main areas of joint activities between the two countries under this memo will be mineral resource development, notably coal, mineral sand and limestone, insiders informed. Other areas where mutual cooperation will be sought include Quaternary Geology, particularly sediment transport and distribution, sustainability of mangrove ecosystem like Sundarbans and delta development. In addition, issues of regional stratigraphy including tertiary system, engineering geology for sustainable urban planning and mitigation of geo-hazards, especially earthquakes and landslides, will be covered under the umbrella accord (MoU). "The mutual agreement in the areas of geological survey is especially important as the two countries, by nature, are sharing common landscapes such as same sea, hills, floodplains and unique geological histories with the same interest to develop regional planning," said a high official of the Geological Survey of Bangladesh. Energy Ministry officials said they are expecting the MoU to help in developing different disaster-resilience infrastructures where geo-science can play a major role in promoting two-way trade and commerce. In addition, they said, this would also pave the way for sustainable mineral resource development, geo-hazards assessment and management to achieve minerals and energy security of both countries. Source: Govt declines WB funds for ensuring security of state firms The government yesterday declined financing from the World Bank for a project on modernisation of state-owned financial institutions as the prime minister has reservations about external involvement in the matter. The Washington-based multilateral lender was supposed to provide 70 percent of the funds for the Tk 1,580-crore project, under which the state-owned banks would be automated and cybersecurity enhanced among others. 4 P a g e

5 The project was placed in yesterday's meeting of the Executive Committee of National Economic Council, which was attended by Prime Minister Sheikh Hasina. Upon seeing the project proposal, Hasina said there is no need to improve the security of the country's own institutions with foreign money, according to meeting sources. The project was then withdrawn. She said the institutions have enough money and their security has to be ensured by the local experts using those funds. Hasina then directed the Economic Relations Division to see if the WB money can be used in other projects. After the meeting, Planning Minister AHM Mustafa Kamal told reporters that the government itself can do the work of enhancing the state banks' cybersecurity and hence no external involvement is necessary. Agrani Bank Chairman Zaid Bakht said the country has acquired sufficient expertise to ensure cybersecurity. However, for training the manpower external know-how can be taken, he said, adding that if low-cost fund is available for the project it can be accepted. But the government must attach condition that it will have the absolute authority in selection of foreign consultants. It is difficult for the government-owned institutions to implement the projects with own funds as the excess liquidity lying with the banks is depositor's money, said an official of another state-owned bank. Most of the government-owned financial institutions are loss-making concerns, so it is difficult for them to implement projects of such scale, he added. At the yesterday's meeting, seven new and revised projects involving a total of Tk 7,890 crore were passed. Of the amount, more than Tk 4,000 crore will be provided by the development partners. Source: Janata weighed down by restructured large loans Janata Bank is under trouble as some of its large borrowers whose loans were restructured under a special policy of the central bank are not paying installments regularly. The state lender restructured the highest amount of credits among the banks since Bangladesh Bank introduced a separate loan restructuring policy for big defaulters worth Tk 500 crore or more in Eleven corporate groups have availed the facilities. Of them, seven are the clients of Janata Bank. The seven clients are: Beximco, Jamuna, Thermax, SA Group, BR Spinning, AnnonTex and Ratanpur. The total restructured loan stood at Tk 14,400 crore, of which 35 percent or Tk 5,000 crore were regularised by Janata Bank. SA Group, BR Spinning and Ratanpur Group have failed to continue paying installments. The three groups owe over Tk 800 crore to Janata Bank. These business groups had sought further extension of the special treatment, including a cut in interest rate and an increase in grace period. But BB has declined to entertain the requests. The three groups had a total loan of over Tk 2,300 crore regularised by various banks. Of them, SA group has had loan of over Tk 900 crore restructured, BR Spinning over Tk 570 crore and Ratanpur over Tk 800 crore, according to BB data. Of the seven groups, BR Spining and Ratanpur have already become defaulters as they did not pay installments on time, said Abdus Salam, managing director of Janata Bank. 5 P a g e

6 He said the grace period of BR Spinning was extended, but it still has failed to pay installments. The group is preparing to file a writ with the High Court so the default status is stayed. It is a big problem for the banking sector as defaulters are filing writ petitions against their default status to take fresh loan. As a result banks cannot take actions or reject their loan proposals, he said. Salam said SA Group has paid a small portion of the loans. We have already served notice to these groups to pay installments regularly, he said. The Janata CEO said it is not that these business groups which are not paying installments regularly are really in bad shape; rather they think they may be able to get the preferential treatment again. Maksudur Rahman, managing director of Ratanpur Group, said the company has requested the central bank to reduce the installment amount. The installment amount is too high for us to pay regularly. But still we have continued to pay the installment. Rahman said banks were supposed to lend to the large borrowers to enable them to run businesses smoothly but the lenders did not do it. As a result we have not been able to expand our business, which has made us defaulter again, he added. Among the seven business groups, Beximco is the largest client of Janata Bank with the conglomerate has had Tk 1,800 crore of loans restructured. Under the central bank's restructuring policy, different banks have restructured over Tk 4,800 crore of loans of Beximco. Some other banks are also in trouble after restructuring large loans as the borrowers do not repay their loans regularly. Some borrowers are paying some money only to keep their loans regular, said a senior executive of a private bank. The banking sector regularised loans amounting to Tk 113,775 crore from July 2013 to December Of the amount, Tk 82,392 crore was rescheduled and Tk 31,383 crore restructured. Of the rescheduled amount, Tk 30,000 crore was regularised taking advantage of the relaxed policy while Tk 52,244 crore in compliance with the rescheduling policy. According to BB, the recovery of the rescheduled loans under the relaxed policy is unsatisfactory. The recovery rate of the loans regularised under the special policy was only percent while it was percent for the loans rescheduled under the existing policy, according to BB. Of the total rescheduled amount, percent or Tk 5,116 crore were default loans. The central bank relaxed its loan rescheduling policy in December 2013 to help businesses overcome losses inflicted by political turmoil. Though the policy expired in June 2014, the central bank continued to allow the rescheduling until December of the year in the face of pressure from influential business people. Source: BB raises credit card loan ceiling Bangladesh Bank has raised the ceiling on borrowing through credit card from commercial banks without collateral to Tk 10 lakh from Tk 5 lakh. The banks will also be allowed to disburse loan worth Tk 25 lakh through credit card to a client with taking liquid securities like fixed or pension deposit schemes. Previously, the permissible amount was Tk 20 lakh. 6 P a g e

7 The BB issued a circular to managing directors and chief executive officers of all banks saying that the consumer product market in the country had been growing rapidly over the last few years and rising per capita income had enabled a growth in consumer spending. Considering the existing market price and the increasing demand for consumer goods, the BB decided to increase the credit ceiling through the credit card and personal loan products. The central bank has increased the credit ceiling for borrowers through the personal loans without taking any securities to Tk 5 lakh from the previous limit of Tk 3 lakh. The banks will be allowed to disburse Tk 20 lakh to a borrower through their personal loan products with taking liquid securities. The previous limit was Tk 10 lakh. The BB, however, instructed the banks to provide consumer finance such a way that, in any case, the loan growth rate under consumer financing must not exceed the growth rate of their total loans. Source: Keep VAT low for gas and electricity: economists Two economists yesterday suggested keeping the value-added tax rates low for electricity and energy instead of collecting 15 percent from commoners. It will be better if the VAT on electricity and fuel is withdrawn. But if not possible, it will be good to keep the rate as low as possible, said Wahiduddin Mahmud, a noted economist, at the pre-budget meeting organised by the National Board of Revenue. Mahmud, also a former adviser to a caretaker government, said universal inputs like electricity and energy should not attract any VAT from a rational point of view. But VAT is collected from these areas for revenue collection. Mahmud also suggested making the compliant and tax dodgers' names public to curb evasion and encourage compliance. He said tax evasion is one of the main problems in Bangladesh. Some are not paying taxes for lack of awareness while some are dodging for self interest. But the main reason is social attitude where non-payment of tax is treated as normal. As a result, none feels guilty for non-payment. A list of tax and VAT paying businesses can be put up at the open spaces of markets for motivation. Compliant VAT paying firms can also be given recognition, the economist said. Tax payment should be made part of social norm where non-compliance should be viewed as humiliation. Tax should be paid from the fear of social embarrassment. He also suggested the revenue authority to continue with its awareness campaigns to motivate people to pay tax. About the new VAT law, he said its implementation will make determine whether it is good or bad. Enforcement is the real test, Mahmud said, while stressing on the need for getting more firms to sign up for Business Identification Number. Businesses should be encouraged so that they can maintain their accounts and records properly, he said, while recommending the taxmen to cross-check the statements submitted by businesses to the NBR for tax compliance and to banks for getting loans. About the realtors' pleas for allowing investment of undisclosed income without any questioning, he said: It is not the tax authority's concern if the income is legal or illegal -- it is the job of the Anti-Corruption Commission. 7 P a g e

8 He also stressed on revising the minimum registration value of land, citing that a large portion of properties are transferred at prices much higher than the minimum value. As a result, many honest taxpayers become owners of illegal income. This cannot be, he added. The cost of gas and electricity has already increased for the hike in rates by the government, said Towfiqul Islam Khan, research fellow of the Centre for Policy Dialogue. In such a scenario, a hike in VAT rate to 15 percent will affect consumers. At present, consumers have to pay 5 percent VAT on electricity bills. He went on to suggest the NBR to gradually increase the VAT rate to 15 percent for goods and services like electricity and that too with advance warning. It will be helpful for consumers and investors to plan ahead, Khan added. At the programme, PwC Bangladesh, led by its Managing Partner Mamun Rashid, submitted its recommendations for fiscal 's budget. There should be no doubt that the VAT law will be implemented from July, said NBR Chairman Md Nojibur Rahman. We have already started the countdown, he said, adding that a debate will be held in the capital soon between the VAT department and businessmen regarding the VAT law. Basic food, education and healthcare have been kept out of the purview of VAT in the new law, said Jahangir Hossain, member of NBR's VAT Policy. Also, businesses whose annual turnover is less than Tk 30 lakh will remain out of the VAT umbrella. Such a waiver prevails nowhere in the world, he added. Source: Better Work forum applauds progress, calls for more actions The Better Work Bangladesh programme held its second stakeholder and buyer forum in Dhaka yesterday where experts lauded its impact on the garment sector and also called for stepping up efforts to improve working conditions and increase factories' competitiveness. Some 300 national and international garment sector representatives attended the forum, including partners from the government, employer associations and unions, as well as 80 members from international brands, according to a statement of the International Labour Organisation (ILO). We are here to unite diverse stakeholders, promote decent work for all and help the garment industry in Bangladesh thrive, said Louis Vanegas, programme manager of the Better Work Bangladesh programme, in the statement. The Better Work Bangladesh programme is a partnership between the ILO and the International Finance Corporation. It aims to contribute to improving the life of the workers, their families and their communities, and increase the competitiveness of the ready-made garment sector in Bangladesh. Vanegas said the Better Work programme is currently engaging 120 factories and helping shift the mindset of garment employers in Bangladesh from seeing compliance as an obligation to being a business necessity that makes them more competitive. 8 P a g e

9 Srinivas Reddy, director of the ILO country office, said following its launch in 2014, the Better Work programme has introduced an entirely new concept of supporting garment factories to boost their compliance while at the same time enhancing productivity. I firmly believe that the Better Work programme can make a valuable contribution to the working conditions and competitiveness of individual factories. It can also help take the industry to the next level, Reddy said. Bangladesh Employers' Federation Secretary-General Farook Ahmed said the programme could help achieve the 2021 goals and elevate the country's status to middle-income nation. He said the programme needs to be flexible taking into account Bangladesh's ground reality. Miran Ali, a director of Bangladesh Garment Manufacturers and Exporters Association, said Bangladesh's garment sector is on its way to becoming the most sustainable and transparent industry in the world. Source: Govt, owners, workers to settle conflicts thru' talks The government, apparel factory owners and labour leaders have agreed to resolve the labour-related conflicts through discussion among themselves instead of taking those to various international forums. They reached the consensus in the first meeting of the tripartite advisory council on ready-made garment (RMG) sector, headed by State Minister for Labour and Employment Mujibul Haque at his secretariat office in the capital on Tuesday. "We might have some problems in the country's RMG sector. But, those can be addressed internally. It is shameful and embarrassing for us, if such issues are taken to other global platforms before informing the government," the state minister said. Terming the garment sector 'important', he assured the stakeholders of taking necessary measures for resolving any problem in the sector. Earlier, the government formed the 20-member council, comprising of six representatives each from the government, the workers and the factory owners - Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) - to address the labourrelated issues that sometimes create volatility in the labour-intensive RMG industry. BGMEA President Siddiqur Rahman said any problem at plant level lessens the buyers' confidence, and the owners do not want to face such problems. He assured all that they would solve the problems through discussion with all parties concerned including the workers. Nazma Akter, assistant secretary general of Industriall Bangladesh Council, suggested the government to handle the labour-related issues more smartly. "Trust and confidence between the owners and the workers must be enhanced." Admitting some improvements in the workers' rights situation, she also suggested better coordination among other related ministries to resolve legal issues and allow trade unions. 9 P a g e

10 Delwar Hossain Khan, general secretary of Bangladesh Labour Federation, recommended monthly meeting of the factory management with the workers to make them feel that they are an essential part of the supply chain. The number of factory inspectors is insufficient to inspect some 8.0 million establishments across the country, he said, suggesting strengthening of both Department of Inspections for Factories and Establishments and Directorate of Labour. A Ministry of Commerce official informed the meeting that EU, US and other Sustainability Compact partners want to see more progress, particularly in the four issues mentioned in a special paragraph by International Labour Organization (ILO). He said Ministry of Labour and Employment is responsible for addressing three issues - amendment of labour law, trade union registration and protection of labour leaders from violent reprisals. He also recommended further progress, especially in smooth trade union registration as well as in stopping harassment and reprisal of the labour leaders. The Compact partners also want launching of consultation for making necessary amendments in the labour laws, the official noted. If the progress in this regard is not satisfactory, a high-level EU monitoring team will arrive in the country. It might cause a formal investigation to review Bangladesh's GSP eligibility in the European Union markets, he added. BGMEA vice presidents Mahmud Hasan Khan and Mohammed Nasir, among others, were also present in the meeting. Source: talks TIB against allowing undisclosed money in next budget Transparency Interna-tional Bangladesh (TIB) urged on Tuesday the government not to allow investment of undisclosed money in any sector, including real estate, in the national budget for FY Expressing its concern over the recent demand from various quarters, including real estate sector, to National Board of Revenue (NBR) for not asking the source of invested money, TIB executive director Iftekharuzzaman said providing legality to undisclosed money was conflicting with the Article 20 (2) of the Constitution. In a statement, he said the practice was also contrary to the government's pledge and helpful for spreading corruption. "Providing legality to earn undisclosed money is not only unethical, but continuously providing this kind of opportunity also does not play any positive role for the country's economy," he added. The opportunity is also an example of unexpected interference in the government's policy framework by the section that is helpful for corruption, the statement added. TIB thinks, it said, if the government allows the investment of undisclosed money in the next budget by agreeing 10 P a g e

11 with this kind of unethical demand, it will be a clear deviation from the government's commitments mentioned in its long-term plan Vision 2021, 7th five-year plan and national integrity strategy. The anti-corruption watchdog also urged the government to make a clear announcement about prohibiting the opportunity for investing undisclosed money forever. Source: BSEC may issue cyber security guidelines for listed cos Bangladesh Securities and Exchange Commission is likely to consider issuing separate guidelines on ensuring cyber security of the listed companies amid growing tension following Bangladesh Bank s reserve heist in The capital market regulator s indication came from a discussion with senior officials of banks and non-bank financial institutions on Cyber Security : A Business Imperative at its office in Agargaon in the city. ISSA Bangladesh organised the dialogue in association with BSEC. BSEC chairman M Khairul Hossain, commissioners Md Helal Uddin Nizami, Md Amzad Hossain and Swapan Kumar Bala, executive director Md Saifur Rahman and ISSA Bangladesh chapter president Maruf Ahmed, among others, participated in the dialogue. Bankers said that the IT professionals of the banks were in most painful situation since the $101 million reserve heist of Bangladesh Bank. M Khairul Hossain observed that if anybody is connected with internet, he/she is at stake of cyber attack and the risk was increasing geometrically. Technical knowhow could be a solution to tackle the situation, he said. Maruf Ahmed said that the US Securities and Exchange Commission has issued a set of guidelines for the listed companies due to the growing number of cyber crimes. The guidelines of the US SEC for the listed companies include maintaining accurate inventories, maintaining knowledge of normal operation, discovering vulnerabilities and track remediation progress based on risk assessment, prevent unauthorised activity, monitoring of malicious activity and data loss, and measuring compliance. He also said that his organisation was working with the BSEC as well. Asked, Saifur Rahman said although the commission was not thinking of issuing any guidelines on cyber security, it was working with different stakeholders regarding the issues and may come with separate guidelines for the listed companies in future. Source: International News India, UK talk up post-brexit trade prospects India and Britain on Tuesday talked up their prospects of developing a new trading relationship, as their finance ministers met in New Delhi to prepare for the United Kingdom's exit from the European Union. British finance minister Philip Hammond flew in to New Delhi for talks with Indian counterpart Arun Jaitley, days after Prime Minister Theresa May triggered the start of the Brexit process after last June's referendum vote to quit the European Union. Hammond played down the risks of a so-called "hard Brexit", in which Britain would lose access to the markets of the bloc's other 27 nations if the two sides cannot reach a consensus deal within a two-year deadline. 11 P a g e

12 "We have made the decision that we will not be part of the structure of the European Union, but we've also made very clear that we want to negotiate the maximum possible open trade relationship with the European Union," Hammond told a news conference after a joint economic and financial dialogue. "We hope to be able to negotiate a deep and special relationship with the European Union that will allow us to go on trading and investing in each other's economy, but at the same time allow us to rebuild our relationships with our partners and allies around the world." Source: US business seeks action, not trade war, in Xi-Trump summit Although worried about the prospect of a trade war, American businesses operating in China nonetheless want President Donald Trump to wring some concessions on market access from China's leader Xi Jingping when the two meet this week. Trump warned in a tweet last week the meetings at his Mar-a-Lago resort on Thursday and Friday will be "very difficult" and "American companies must be prepared to look at other alternatives." Trump has said he wants US companies to stop investing in China and instead create jobs at home. He has also accused China of manipulating its currency to boost exports. Critics within US industry have accused China of unfair government subsidies to its companies, and of flooding the US market with cheap products from steel to solar panels, while restricting foreign investment over vast swathes of the world's second-biggest economy. But they also worry Trump's policies on China are not entirely clear, with his trade team still not in place, and may be subject to a 'grand bargain' involving other issues such as North Korea. Trump is set to enter the meeting without several key advisors, including his pick for trade negotiator, Robert Lighthizer who has yet to be confirmed by Congress. His nominee as ambassador to China, Iowa Governor Terry Branstad, has also yet to be confirmed, while several posts in the US State Department that formulate Asia policy remain unfilled. "With this in mind, it is hard to imagine that there will be much in the way of concrete accomplishments at this summit, or even that there has been any significant interagency discussion on strategy leading up to it," said Randal Phillips, Mintz Group's Beijing-based managing partner for Asia and the former chief CIA representative in China. 'ACTIONS, NOT WORDS' Some of the largest US companies have contributed to the billions of dollars of foreign direct investment that have poured into China over the past two decades, creating hundreds of thousands of jobs. They include tech companies like Apple, which makes much of its iphone in China, automakers such as General Motors and Ford, heavy machinery firms like Caterpillar, retailers like Starbucks and makers of shaving foam and detergent, like Procter & Gamble. US steel producers want Trump to press Xi on Chinese steel prices, according to a source who has been in discussions with the administration in advance of the summit. US automakers complain about a disparity in tariffs: The United States has a 2.5 percent tariff on auto imports, China's is 25 percent. But the stakes are perhaps highest for American technology firms, who worry that China's new cyber-security law, which takes effect in June, sets potentially discriminatory standards for multinationals. 12 P a g e

13 The Information Technology & Innovation Foundation (ITIF), a think-tank whose board includes representatives from Apple, IBM Google and other tech heavyweights, has urged the Trump administration to pressure China to "stop rigging markets". It warned that possible retaliation from Beijing was not a reason for inaction. Trump has staked out various positions on China as president in his tweets, phone calls and statements. In a phone call with Xi after taking office, Trump gave ground on one of Beijing's most sensitive issues the status of Taiwan - after earlier suggesting he might not stick to Washington's long-held "one China" policy. Trump signed two executive orders on trade on Friday, one to improve import tariff collection and another to study the causes of the U.S. trade deficit. Trump said at the White House signing ceremony he and Xi were "going to get down to some serious business" and vowed that "the theft of American prosperity" by foreign countries would end. Chinese Vice Foreign Minister Zheng Zeguang said on Friday the US-China trade imbalance was mostly the result of differences in the two countries' economic structures and noted China had a trade deficit in services. China tops the list of countries who have trade surpluses with the United States, with a $347 billion surplus last year. TRADE WARS Some in the US business community worry about tit-for-tat retaliation in trade disputes with China. Jacob Parker, vice president of China operations at the U.S.-China Business Council, said the two presidents need to take "positive actions that would lead to a more durable relationship, not retaliatory actions that would lead to a trade war". The list of commercial issues between the two countries was so long, it would be impossible to make a major dent in them with one meeting, he said. Source: IMF releases $1b loan for cash-strapped Ukraine The International Monetary Fund will release the next $1 billion loan payment to Ukraine, which had been postponed following the blockade imposed on the separatist east of the country, the Ukrainian president said Monday. "The IMF board took the decision to grant Ukraine one billion dollars," President Petro Poroshenko wrote on his Facebook page, seeing it as "another sign of the reforms under way in Ukraine." Cash-starved Ukraine has been desperately waiting for the next instalment from a $17.5 billion rescue programme that has been held up repeatedly since it was agreed in 2015 over delays by Kiev to carry out reforms. Monday's announcement brought total funds disbursed under the arrangement so far to about $8.4 billion. The IMF had delayed its decision on the latest loan instalment, originally scheduled for March 20, saying it needed to reassess the "implications of recent developments for the programme". Source: 13 P a g e