The Industrial and Commerce Bank of China (ICBC) has enabled a feature allowing users to convert their digital yuan to cash at over 3,000 automated teller machine (ATM) locations in Beijing, Xinhua news agency reported.

ICBC thus has become the first bank in the country to launch such a feature. It made it possible for customers to switch with ease between digital and non-digital versions of government-issued currency, called renminbi in China.

According to Xinhua, the Agricultural Bank of China or AgBank, which is one of the nation’s “big-four” lenders, had installed a similar feature at over 10 ATMs in the capital city’s Wangfujing shopping area.

The People’s Bank of China (PBOC) plans to have its sovereign digital currency ready in time for the 2022 Winter Olympics. It said that the new currency, which doesn’t have an official name but is known by its internal shorthand DCEP – or Digital Currency Electronic Payment – will share some features with cryptocurrencies.

The digital yuan is projected to replace cash in circulation. It will be linked to the holder’s smartphone number, with transactions taking place through an app. Users will be able to transfer money between accounts by tapping their phones, much like having physical cash change hands. Pilot testing programs of the digital renminbi have been underway in major cities across the country. Authorities have been also handing out millions of yuan in free digital currency in public lotteries.

(CNN)China has administered more than 1 billion Covid-19 vaccine doses, an astonishing milestone that comes as the country rolls out an unrivaled inoculation drive.

A total of 1,010,489,000 doses have been given as of Saturday, China's National Health Commission (NHC) said in a statement.

Those doses are almost 40% of the 2.5 billion shots administered globally.

The NHC said 100 million doses were given in the five days up to and including Saturday, according to state media outlet Xinhua.

The 1 billion number is all the more remarkable given that China's rollout had a stuttering start.

China only reached its first million administered doses on March 27 -- two weeks behind the US. But the pace picked up significantly in May, with more than 500 million shots given over the past month, according to data from the NHC.

"It took China 25 days to climb from 100 million doses to 200 million doses, 16 days to increase from 200 million to 300 million, and six days from 800 million to 900 million," Xinhua reported.

China's about to administer its billionth coronavirus shot. Yes, you read that right

China's about to administer its billionth coronavirus shot. Yes, you read that right

Beijing has successfully contained the virus but several recent local outbreaks, including in the northern Anhui and Liaoning provinces and Guangdong in the south, have fueled fears of infections, prompting a rush to get vaccinated in affected regions.

China has also begun to vaccinate people under the age of 18, with teenagers eligible to receive the Sinopharm and Sinovac vaccines.

For those still reluctant, China has a powerful tool in its arsenal: a top-down, one-party system that is all-encompassing in reach and forceful in action, and a sprawling bureaucracy that can be swiftly mobilized.

Beijing aims to vaccinate at least 70% of eligible people by the end of the year, Xinhua reported, citing the deputy head of the NHC Zeng Yixin.

Around 1.4 billion people live in China. Due to this, the country's administered doses per 100 people is still behind nations such as the US and Britain.

But if its inoculation drive can keep up the current pace, Beijing will catch up fast.

LHASA, China--Tourism is booming in Tibet as more Chinese travel in-country because of the coronavirus pandemic, posing risks to the region’s fragile environment and historic sites.

The number of visitors is limited to 5,000 per day at the Potala Palace, the former home of the Dalai Lamas. Balancing tourist demand with the need to minimize wear and tear on the massive hillside structure is a constant challenge, said Gonggar Tashi, the head administrator.

“The biggest challenge for us is the contradiction between the protection and usage of the cultural relics,” Tashi told journalists in Lhasa, the Tibetan capital.

He spoke during a government-organized tour that gave foreign journalists rare access to Tibet, but under the watchful eye of officials who set the agenda.

The growing numbers of tourists appear unconcerned by political controversies long circling Tibet. China’s communist forces entered the region in 1951, and the Dalai Lama, Tibet’s traditional spiritual and political leader, fled to India during an abortive uprising against Chinese rule in 1959.

Millions of visitors come to Tibet every year, and 2020 saw a 12.6% increase from the previous year, said Ge Lei, deputy director of the China Tourism Marketing Association. He expects the amount of visitors to roughly double by 2026.

The glut of visitors, far exceeding Tibet’s population of 3.5 million people, means caution is necessary to protect the environment and culture, he said.

Tourists are drawn to the “mystique and myth of Tibet as a remote snow-bound land,” said Travis Klingberg, a cultural geographer at NYU Shanghai. “But Tibet has become a place of beautiful natural landscapes meaningful to the Chinese nation.”

Tibet has shifted its focus from international to domestic visitors as China’s middle class has grown, said Emily Yeh, a professor of geography at the University of Colorado Boulder.

Tibetans have at times complained about Chinese tourists disrespecting cultural traditions, including stepping on prayer flags, she said.

The tourism sector reinforces government propaganda, Yeh said. The ruling Communist Party says it liberated hundreds of thousands of serfs when it overthrew the theocracy in 1951 and has since brought economic development to the high plateau that borders the Himalayas.

“Rewriting of history is very much a part of the tourism landscape,” Yeh said.

Among the most popular natural sites is Namtso Lake, ringed by snow-capped peaks and Buddhist shrines, with yak herds and migrating birds on the horizon. Further development of the site must be done carefully to avoid damaging what makes it attractive, Ge said.

“It will be hard to protect the ecology and culture of Tibet ... if we don’t have a long-term plan,” he said. “So it is very important to establish a set of values and rules of behavior for travel in Tibet while building the facilities.”

This profile is intended to serve as public goods to facilitate upstream country diagnostics, policy dialogue, and strategic planning by providing comprehensive overviews of trends and projected changes in key climate parameters, sector-specific implications, relevant policies and programs, adaptation priorities and opportunities for further actions. Mongolia is a landlocked country of East Asia characterized by unique ecosystems and cultures. The contribution of agriculture to Mongolia’s economy has declined in recent years, constituting 12% of GDP, compared to the 50% contribution from the service sector. Historical climate warming is believed to have taken place at some of the fastest rates in the world in Mongolia and other shifts in climate dynamics are already strongly impacting on lives and livelihoods. In response, Mongolia has engaged closely with international efforts to mitigate climate change and its impacts.

This profile provides a number of key messages regarding the future of climate risk for Mongolia, including:

Mongolia has already experienced significant climate changes, with warming of over 2°C and declines in rainfall reported between 1940 and 2015.

The intensity of extreme climate-driven hazards including heat wave, drought, and river flood, is expected to increase.

Without concerted disaster risk reduction efforts and support to communities to adapt Mongolia’s poorest communities face significant damage and loss.

Focus is needed on the interplay between climate changes and current development trends in Mongolia, unplanned development in flood exposed areas and air pollution issues could interact with climate changes to enhance health risks and inequalities.

Ulaanbaatar /MONTSAME/. As reported by the National Statistics Office, the nation's inflation was at 6.2 percent by May 2021. The inflation rate was 6.1% in May 2018, 8.0% in May 2019, 3.3% in May 2020 and reached 6.2% in May 2021, increased by 2.9 percentage points from the same period of previous year. The increase was mainly due to 13.1 percent price increase in food and non-alcoholic beverages, and a five percent price increase in housing, water, electricity, gas, and fuels.

In terms of contribution of price changes of goods and services groups to 6.2% inflation rate in May 2021, 3.6 units (58.1%) were contributed from changes in prices of food and non-alcoholic beverages group. Moreover, 35.5% of 6.2% inflation rate was mainly contributed by an increase in prices of imported goods and services. However, the contribution of prices of imported goods and services increased by 14.3 percentage points compared to May 2020.

From May 2020 to March 2021, the domestic inflation rate fluctuated between 2-3 percent, falling below the central bank's target. Analysts say this indicates a decline in economic activity during that period. During the pandemic, the government regulated price reductions for some goods and services. On the supply side, changes in the prices of government-regulated goods and services contributed to higher inflation, according to the central bank. In addition, commodity prices have been rising sharply with the easing of lockdown measures and while the economy recovers.

In Ulaanbaatar, inflation was at 6.7 percent in May. According to the Bank of Mongolia, inflation is expected to rise to 7-8 percent by the fourth quarter of this year.

Ulaanbaatar /MONTSAME/. A specialized laboratory for hide and leather research has been established at the School of Industrial Technology of the Mongolian University of Science and Technology.

Statistics show that 80 percent of livestock hide is discarded without being processed. However, by putting the laboratory into operation, it will become possible to properly utilize up to 90 percent. More specifically, the laboratory will define the characteristics of the hide and leather as well as whether it meets quality standards. In other words, it will become easy for manufacturers to decide whether to use the material for making products such as shoes or bags.

Despite counting 60-70 million heads of livestock annually, only 10 thousand items of hide are processed each year. The hide of sheep, goats, and cattle are predominantly processed. In the last few years, however, horsehide has also begun to increase in use.

The laboratory will specifically define which parts of the hide are suitable for making certain products. For instance, following a study that found that horsehide is suitable for manufacturing coats due to its softness, horsehide began to be increasingly processed in the country. Thus, herders are currently being advised by researchers and manufacturers to protect their livestock’s skin and hide by protecting them from various insects as well as to not use lacquers in marking them.

Hide and leather manufacturers expressed their hope in the laboratory to make significant contributions in the development of the light industry.

Ulaanbaatar /MONTSAME/. Manual on Reporting Suspicious Transactions for financial and non-financial professional service providers and intermediaries was published by the Financial Regulatory Commission (FRC). The contents of the manual include the following:

General concept of anti-money laundering and combatting the financing of terrorism;

How to identify and detect suspicious transactions and their characteristics;

Records of customers’ documents; and

Organization, frequency and scope of internal training.

The FRC and the Financial Information Unit have conducted online training involving 359 entities; from among those responsible for reporting. During the training, the manual was introduced to participant.

Source: Financial Regulatory Commission

Last week Mongolians went to the polls to vote for a new President. The Mongolian Presidential elections saw the victory of former Prime Minister Ukhnaa Khurelsukh of the Mongolian People’s Party (MPP). Khurelsukh won in a landslide, securing 68% of the votes against the 20,1% and 6%, won by Sodnomzundui Erdene of the Democratic Party (DP), and Dangaasuren Enkhbat of the Right Person Electorate Coalition, respectively.

Khurelsukh will take over from Khaltmaa Battulga, who was prevented from seeking reelection after a controversial attempt to amend the Mongolian Constitution. The MPP had in 2019 modified the Constitution in an effort to consolidate power and inserted a clause that limits presidents to one six-year mandate. The Mongolian Presidency is a largely ceremonial position; most power is held by the State Great Khural, Mongolia’s parliament, as well as Prime Minister and cabinet. Since 2016 the MPP holds a supermajority in the State Great Khural and consequently determines who the Prime Minister will be and who will make up the cabinet. Erdene, the DP candidate, had warned the Mongolian population against the possibility of a dictatorship under the MPP during the elections. Indeed, Khurelsukh is expected to grant the MPP a higher degree of control over the country’s levers of power.

Background to the Elections

Khurelsukh was forced to resign with his Cabinet on January 21, 2021, due to protests sparked by Mongolia’s response to Covid-19. By November 2020 the Mongolian State Emergency Committee imposed strict countrywide measures in response to community spread of Covid-19. However, these restrictions sparked public anger which stoked widespread protests demanding freedom and the right to assembly. Subsequently, protesters demanded the ousting of various authorities, including the Cabinet and the Prime Minister.

The Prime Minister’s resignation prompted skepticism; his position was stronger than ever, given the MPP’s control of the Cabinet and the Great Khural. It has become evident now that his resignation as Prime Minister was a tactic aimed at bypassing a constitutional requirement that would have otherwise barred him from running as President.

Khurelsukh’s actions have caused many concerns to arise within the general public, the opposition, and foreign observers. Polarization, court rulings, constitutional amendments, and presidential decrees, coupled with Khurelsukh’s background with the Mongolian military (of which he is now commander-in-chief as the President), show the fragility of the current political situation. Furthermore, Mongolia’s election took place during a critical time for its already suffering economy deeply affected by the pandemic.

Ulaanbaatar’s Balancing Act

Mongolia’s geo-economic positioning makes it extremely difficult for Ulaanbaatar to operate without factoring in Moscow and Beijing. In fact, despite extensive attempts undertaken by the various Mongolian governments, Moscow is still Mongolia’s primary energy provider, and Beijing buys circa 90% of Mongolia’s core exports. Additionally, given the country’s current economic crisis, it is to be expected that the government will decide to lean more toward either Moscow or Beijing.

It is yet to be seen whether Khurelsukh will follow Battulga’s foreign policy focused only on Russia while begrudgingly acknowledging China’s growing prominence to its south. However, there might be a turn in Ulaanbaatar’s foreign policy. In fact, during his previous mandate, Khurelsukh seemed to be willing to deepen cooperation with China, as he underscored in a meeting with Wang Yi in 2020. Notably, Khurelsukh also expressed his support for the one-China policy and its domestic and foreign policy.

Additionally, Mongolia’s possible turn to China is dictated by other factors as well. First, Beijing has offered major Covid-relief: Mongolia has so far signed deals for 4.3 million vaccine doses, the bulk of which is produced by China’s Sinopharm vaccine. Second, China has been Mongolia’s primary commercial partner since the fall of the Soviet Union. Back then, Ulaanbaatar, desperate for new economic partners, restructured its economy to meet China’s needs for raw materials. Then as now, the Mongolian mining industry remains vital for Ulaanbaatar to maintain a stable relationship with Beijing. As a result, China remains Mongolia’s top export destination and import supplier in the first quarter of 2021, according to data released by the Mongolian National Statistics: 92.5% of Mongolia’s total exports and 39.1% of its total imports. The mining sector occupies more than 50% of Mongolia’s GDP and roughly 70% of its exports.

Mongolia after the Elections

But overdependence on China’s willingness to buy from Mongolia is extremely dangerous. If Beijing were to close border-crossings, preventing the trade of goods, it would devastate Mongolia’s economy, as the Covid-19 outbreak has shown. Mongolia’s reliance on the mining industry also results in environmental strain and degradation that will, in the long run, engender more economic burdens. Mongolia has seen a gradual degradation of its land, 20.9% of which is available for mining while 44% to 90% is affected by desertification, partially due to mining externalities. It also comes as no surprise that Chinese firms partially own the companies charged with inflicting environmental damage on Mongolia. Therefore, China holds considerable stakes over Mongolia’s mining companies, on top of being its primary export destination.

Mongolia’s dependence on China will probably increase in the years to come. Beijing’s Belt and Road Initiative represents a unique opportunity for Ulaanbaatar to act as a logistical transit hub, given that it lies perfectly in between China and Inner Asia. The MPP has called for increasing Mongolia’s focus on expanding its mining sites, especially the Oyu Tolgoi and Tavan Tolgoi (the closest mines to the Chinese border), and expedite cross-border trade. This decision would grant China power to directly access Mongolia’s land (given Chinese companies own shares in the companies that control the mining sites). Another project that would increase Ulaanbaatar’s reliance on Beijing is Mongolia’s attempt to access the port of Caofeidian in Hebei province. Use of this harbor, which is three times closer than the only other alternative, the port of Vladivostok, would grant Mongolia maritime access; however, Beijing will become Ulaanbaatar’s gateway to conduct commerce with the rest of the world, hence increasing the risk of Mongolia becoming a sort of Chinese province in the future.

Khurelsukh will assume office on July 10th. Alongside his cabinet and Mongolia’s legislature, the new President will need to make tough decisions confronting climate change, geopolitical shifts in East Asia, and domestic challenges. The former MPP candidate, despite his ceremonial position as President, will still play a key role in directing Mongolia’s course of action during his term.

by: Riccardo Villa

June 17 (Xinhua) -- Mongolia registered 2,642 new COVID-19 cases in the past 24 hours, the country's health ministry said Thursday.

This is the eighth straight day of record new infections, bringing the national tally to 85,770, the ministry said.

Meanwhile, 11 patients aged 37-95 died from the disease, bringing the national death toll to 414.

About 1,668,000 Mongolians have so far been fully vaccinated since the country launched a national vaccination campaign in late February, according to the ministry.

WASHINGTON, June 16 (Reuters) - A deal for a five-year ceasefire in a U.S. and EU dispute over aircraft subsidies on Tuesday reflected progress, but the underlying trade relationship remains fragile with many unresolved disagreements, diplomats and trade experts said.

The two economic powers agreed to set aside tariffs on $11.5 billion in U.S. and EU goods hit during the subsidy battle over Boeing Co (BA.N) and Airbus SE (AIR.PA) aircraft, to focus on fighting China’s clear ambition to build and sell its own commercial aircraft.

But the United States warned it could re-impose tariffs "if we’re no longer competing on a level playing field." That warning relates to the big outstanding differences over taxation of big American tech firms; steel and aluminum tariffs and reforms of the World Trade Organization, experts said.

The fact that the two sides failed to hammer out a permanent solution to the aircraft subsidy dispute, after months of optimistic noises from senior officials, showed how deep their differences run.

"It's not as good as what it could be or should be," said one diplomatic source of the five-year hiatus. "They've essentially kicked this into the long grass."

Tensions are also fraught because the Biden administration has moved slowly to review tariffs and other policies introduced by former President Donald Trump. Some European diplomats are frustrated. Many key roles at the U.S. Trade Representative's office remain unfilled, complicating negotiations.

STEEL AND ALUMINUM ROW

At the summit, Washington and Brussels also agreed to discuss U.S. tariffs on EU steel and aluminum imports before the end of the year and address excess capacity in the overall market, notably from China. But prospects for an agreement on rescinding the tariffs looked slim.

U.S. steel industry groups and unions are urging the Biden administration to keep in place the 25% steel and 10% aluminum tariffs imposed three years ago under Trump.

The U.S. tariffs affect 6.4 billion euros of EU metal exports. The European Commission, which wants them removed is challenging the U.S. tariffs at the WTO.

One senior U.S. trade official told reporters on Tuesday that the issue would be "difficult" to resolve.

A EU official said Washington refused point blank to agree to lift the steel and aluminum tariffs by Dec. 1, but said U.S. officials acknowledged that the issue was "something that creates tensions and that needs to be addressed."

In a conciliatory move, the European Commission, which oversees EU trade policy, last month suspended a June 1 doubling of retaliatory tariffs on Harley-Davidson Inc (HOG.N) motorbikes, U.S. whiskey and motorboats for six months, and refrained from taxing more U.S. products.

APPLE, FACEBOOK, GOOGLE

The United States is pushing for an agreement on a global minimum corporate tax, which could help move along multilateral negotiations over digital taxation.

But Washington told France, Italy and others that they face other tariffs if they implement domestic digital services taxes, which Washington says unfairly target U.S. companies, if no international consensus is reached.

U.S. officials have also expressed deep concern about draft rules announced by the EU that would require U.S. tech companies like Alphabet Inc's (GOOGL.O) Google, Apple Inc (AAPL.O) and Facebook Inc (FB.O) to provide far more information, including about takeovers, according to an administration source.

WTO PATENT WAIVERS AND REFORMS

EU officials are still smarting after Washington's abrupt decision to support a temporary waiver of intellectual property rights at the World Trade Organization to help speed production of COVID-19 vaccines.

They said Washington has failed to engage fully on reviving the WTO Appellate Body, its dispute settlement mechanism, after it was essentially dismantled by the former Trump administration.

“We are not really yet seeing a full engagement on the issue,” said one EU official, adding that the Biden administration was still reflecting “on what to do.”

Reporting by Andrea Shalal and Phil Blenkinsop; Editing by Heather Timmons and Cynthia Osterman