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Jose Mujica was Uruguay's former rebel leader, icon of cannabis reformation and former leader. He died at the age of 89.
Jose Mujica has died at the age of 89. He was a former guerrilla who became president of Uruguay. His unpretentious manner and progressive reforms won him countless articles in international media. Mujica's straight-talking style, which is known by many Uruguayans as "Pepe", was the driving force behind the leftist government of this small South American nation from 2010 to 2015. He did so after convincing voters that his radical past had been closed. In a message on X, President Yamandu Orsi wrote: "It's with great sadness that we announce the passing of our comrade Pepe Mjica." "Thank you for all you did for us, and for the deep love you have for your people." Mujica, as president of Colombia, took a liberal position on civil liberties issues that was considered groundbreaking at the time. Mujica signed laws allowing homosexual marriages and abortions during early pregnancy. He also supported a proposal for legalizing marijuana sales. Both were major shifts for Latin America's Catholic Church, while the second was almost unheard of at the time. Mujica chose to remain in his modest house in a suburb near Montevideo, where he ran a small farm, during his tenure as president. He was often seen driving around in an old VW Beetle and eating at restaurants downtown where office workers ate lunch. He also avoided wearing a suit and tie. In an interview in May 2024, in the same house with a tin roof that he and his wife, the former senator Lucia Topolansky shared, he stated that he still had the old Beetle in "phenomenal condition". He added that he liked a tractor ride because it was "more enjoyable" than driving a car, and you have "time to think." Mujica was criticized for his tendency to ignore protocol. His blunt, and sometimes uncouth, statements forced him, both under the pressure of political opponents and allies, to explain himself. His down-to earth style and progressive thoughts won him the hearts of many Uruguayans. Mujica stated during the interview in 2024 that "the problem is that people are running the world by old folks who have forgotten what it was like to be young." Mujica was 74 years old when he became President. He received 52% of votes, despite concerns from some voters about his age. Lucia Topolansky has been Mujica's partner since their Tupamaros days. She served as her vice president and they married in 2005. They remained active in politics after leaving office. They attended the inaugurations in Latin America and gave crucial support to candidates in Uruguay including Orsi who assumed office in March 2025. The couple stopped growing flowers in their smallholding, but continued to grow vegetables. Topolansky would pickle tomatoes each season. BARREN BACKS Jose Mujica was born in 1935 on his birth certificate, but he claims that there was a mistake and he was born one year earlier. He described his childhood as "dignified poverty." Mujica lost his father when he was between 9 and 10 years old. As a child, he worked with his mother to maintain their farm where they raised chickens and cows. When Mujica first became interested in politics in Uruguay, the left was weak and fragmented. He began his career as a politician in the progressive wing of center-right National Party. He joined the Marxist Tupamaros Guerrilla Movement in the late 1960s. The group was a Marxist guerrilla that sought to weaken Uruguay’s conservative government by committing robberies and political kidnappings. Mujica said later that he had never killed anyone, but was involved in violent clashes between police and soldiers. He was also shot six times. The Uruguayan security forces had the upper hand on the Tupamaros when the military took power in 1973. This marked the beginning of a 12 year dictatorship during which 200 people were killed and kidnapped. Many more were imprisoned and tortured. Mujica spent nearly 15 years in prison, most of them in solitary confinement. He slept at the bottom a horse trough, with nothing but ants to keep him company. He was able to escape twice. Once by tunneling through a house. He later admitted that his biggest "vice" was talking to himself as he neared 90. This was a reference to the time he spent in isolation. Mujica returned to politics after the restoration of democracy in the 3 million-person farming country, and gradually became a prominent leftist figure. He was the agriculture minister of Tabare Vazquez's center-left coalition, which would succeed him as president from 2015 to 2020. Mujica had a strong support base on the left, but he also maintained a fluid dialog with his opponents in the center-right by inviting them to barbecues. We can't pretend that we agree on everything. "We have to accept what is and not what we want," he said. He believes that drugs should be decriminalized under "strict state control" and that addiction needs to be addressed. "I don't defend drug use. "I cannot defend (a prohibition) because we now have two problems, drug addiction which is a serious disease and narcotrafficking which is even worse," he said. He remained optimistic in retirement. After a cancer diagnosis, he told the youth: "Life is beautiful but it wears you out and you fall." The point is to begin again every time you fall. If there is anger in your heart, turn it into hope.
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US Farm Agency restores climate-related pages after farmer's lawsuit
After being sued by environmental and farm groups, the U.S. Department of Agriculture has restored some climate change related webpages it had removed since the inauguration of President Donald Trump. Trump's administration has frozen or canceled funding for climate-friendly farming, claiming that the work is not in line with its priorities. About 11% of U.S. greenhouse gas emissions are attributed to agriculture. According to a lawsuit filed by the Northeast Organic Farming Association of New York on February 24, the Natural Resources Defense Council and the Environmental Working Group, a USDA official instructed staff to remove any pages focused on climate changes on January 30, which led to the removal of information on loan and funding options, investment through the Inflation Reduction Act and policy documents. In a Monday court filing, the USDA stated that it would restore all pages removed and complete the restoration in two weeks. The USDA didn't immediately respond to our request for comment. Nydia Gutierrez, a spokeswoman for Earthjustice who represented the plaintiffs, confirmed that on Tuesday some pages detailing IRA funded clean energy projects had been restored. Farmers rely on USDA websites to protect them from extreme weather, wildfires and droughts. In a press release, Earthjustice's Jeffrey Stein said that he was ready to make sure USDA kept its promise to restore the resources. (Reporting and editing by Sandra Maler; Leah Douglas)
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Deutsche Boerse, Euronext step up battle against IPO flight to US
In the face of U.S. competitors, two of Europe's largest stock exchange operators have stepped up their efforts to keep local IPOs. Marketing and research are challenging the perception that New York listed companies command higher valuations. The stock exchanges of Europe and the UK were hit by a lack of IPOs during the last two years. A number of local companies have chosen to float in the U.S. because of its larger pools of capital, and higher valuations. Deutsche Boerse (which operates the Frankfurt Stock Exchange) warns of sluggish post IPO performance, increased costs, and the threat litigation for firms listing in the U.S. The study found that two-thirds (including Germany) of the companies listed in Europe rose on their first trading day, whereas only half of European companies listed in the U.S. saw their stock rise on their debut. Over time, the European IPOs also performed better than those in the United States. The data does not mention valuations at IPO. However, the exchange highlighted several examples in its report of European listed companies trading at a higher premium than their U.S. listed peers. Euronext operates seven markets, including Amsterdam and Paris. It plans to reissue the same paper, challenging the belief that U.S. listed firms are valued higher than their European counterparts, its spokesperson said. Stefan Maassen is the head of capital market and corporates for Deutsche Boerse. He said: "We see more of a competition between Europe and U.S. markets in terms of listing, than within Europe." Exchanges receive fees from companies listing on their platforms, as well as from brokers who trade securities. They are considered essential by policymakers in attracting investment. DEEP MARKETS The US capital markets' size and depth are attractive to those who want to list their companies. According to LSEG, based on the closing prices of Monday, the S&P500 has a capitalisation of almost $49.5 trillion. This is four times more than Europe's Stoxx 600. Officials in Europe are also considering new listing regulations to improve the access to finance. The London Stock Exchange, which in March circulated a document titled "Mythbusting", questioned the perception that U.S. listed companies are valued higher than those in London. In its document, Deutsche Boerse said that it had found the average share price of U.S.-listed German companies has fallen by 13% since 2004. It cited trivago.com and Mytheresa.com as two examples. Both have seen their prices fall since flotation. Frankfurt issuers have seen a 24% increase. New Financial, a capital markets think-tank, found that 130 European companies, worth $667 billion, chose to either list or relocate their primary listing in the United States during the last decade. According to the think-tank, 70% of these are trading at a discount from their original listing price, with an average decline of 9%. In a speech on Tuesday, Christian Sewing, CEO of Deutsche Bank, commented on the move of European companies to the U.S. Deutsche Boerse warns that cross-border listed firms may face greater lawsuit risks. Some market participants do argue that the possibility of litigation provides shareholders with a path to redress. Exchange executives claim that the tariff-induced turmoil in U.S. markets may also increase the appeal of European exchange markets. Some market participants, such as Eva-Maria Wiecko of Rothschild & Co's Head of Equity Market Solutions for Germany and Austria, are more sceptical. In recent years, the U.S. stock market has experienced inflows. However, European markets have seen a large amount of outflows. Wiecko stated that "the recent rebalancing is a fraction of this number, underlining the continued relative strength" of the U.S. Market. Charlie Conchie reported. ($1 = 0.8950 euros). Emma-Victoria Farr, Tom Sims and Anousha Sakoui contributed to the report; Emelia Sithole Matarise edited it.
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Dollar drops as global stocks rise after US inflation data
The dollar dropped and the major U.S. indexes rose on Tuesday, after data showed that U.S. consumer prices increased less than expected in March. This was when President Donald Trump announced a series of tariffs which have caused havoc to global markets. European shares rose for the fourth session in a row, while global stocks also rose. Crude oil prices increased, thanks to a temporary reduction in U.S. - China tariffs. On Monday, the U.S. announced that it would suspend its trade war with China for 90 days. It will also reduce reciprocal duties as well as other measures. They will continue to negotiate a permanent agreement. The agreement has reignited the appetite of investors for stocks, commodities and cryptocurrencies. Tuesday's inflation numbers have also helped fuel this move. The Bureau of Labor Statistics reported that its consumer price index increased by 0.2% in April. This brings the annual growth down to 2.3%, from 2.4%. Economists surveyed by predicted a rise of 0.3% per month and 2.4% annually. Bill Adams, chief economics for Comerica Bank, Dallas, wrote in a letter that the report was good. In 2025, inflation should be manageable by most consumers and business. Wall Street saw the S&P 500, and Nasdaq advance on the back of softer than expected inflation figures and the easing in U.S. China trade tensions. The S&P rose 54.07, or 0.92% to 5,898.13 while the Nasdaq Composite climbed 329.41, or 1.76 %, to 19,038.10. Under pressure from UnitedHealth, the Dow Jones Industrial Average dropped 177.27, or 0.42% to 42,233.19. The firm had suspended its annual forecast, and its CEO resigned. Dollar retreated from its sharp gains of the previous session due to the inflation data. Last seen down by 0.69% versus a basket. The euro increased by 0.85% to $1.1181. Peter Cardillo is the chief market economist of Spartan Capital, a New York-based firm. The European stock market ended the day slightly higher with a 0.1% gain, their highest level since March. Emerging Market stocks dropped 4.28 points or 0.37% to 1,157.57. The broadest MSCI index of Asia-Pacific stocks outside Japan fell by 0.51% to 603.95 while Japan's Nikkei gained 1.43% to 38,183.26. After the Geneva talks, the U.S. announced it would reduce tariffs on Chinese imports from 145% to 30%, and China said that it would lower duties on U.S. imported goods from 125% to 10%. The change in U.S. China trade relations has caused traders to lower their expectations of Federal Reserve rate reductions, believing that policymakers will have more flexibility to lower rates as inflation risks decrease. The traders are now pricing in a 56 basis point reduction this year. This is down from the forecasts of over 100 basis points made in April when concerns about Trump's tariffs reached their highest level. Cardillo stated that "the Fed is on the right track and until there are any real changes in terms of ending the trade war by June, a rate cut in June remains in doubt." Economists and fund managers have stated that the 90-day break is welcomed, but it hasn't changed the larger picture. Christopher Hodge said that the tariffs would still be higher after all was said and done and this will have a negative impact on U.S. economic growth. The ratings agency Fitch estimates that the U.S. tariff rate has dropped to 13.1% from 22.8% before the agreement, but is still above the 2.3% at the end 2024. The yield on the benchmark U.S. 10 year notes increased by 4.8 basis point to 4.505%. And the yield of the 2-year note, which moves typically in line with expectations about interest rates for the Federal Reserve rose by 1.9 basis point to 4.021%. Spot gold rose 0.41%, to $3,246.82 per ounce. U.S. Gold Futures closed 0.6% higher, at $3,247.80. U.S. crude oil rose by 2.81%, to $63.69 per barrel. Brent crude increased to $66.63 a barrel, an increase of 2.57%.
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California Senator calls on NOAA restore "billion-dollar" disaster database
Adam Schiff, a Democratic Senator from California, urged Commerce Secretary Howard Lutnick and acting National Oceanic and Atmospheric Administration secretary on Tuesday to restore a disaster database tracking U.S. disasters worth billions of dollars. He said that its removal prevented legislators, insurance companies and tax payers from seeing the rising cost of natural disasters as well as planning for future extreme events. NOAA announced that it would remove the "billion dollar weather and climate catastrophes" database "in line with evolving priorities", the latest example of how the agency has ended ongoing scientific datasets. Schiff, who represents California in the Senate, warned that the NOAA is understaffed for the hurricane season that begins on June 1. He said that 30 out of 122 National Weather Service offices lack chief meteorologists. Why it's important The database revealed that billion-dollar catastrophes increased from a few per annum in the 1980s, to 23 on average per year during the last four years. Climate scientists attribute this to the rise in global temperatures. The database revealed that in 2024 there were 27 disasters with losses exceeding $1 billion. CONTEXT As part of its efforts to boost oil, gas, and mining operations the Trump administration has acted quickly to reverse all federal spending on climate change. It also removed any regulations aimed at addressing emissions of greenhouse gases. KEY QUOTE In a statement, Schiff stated that the termination of this database "suggests this program was targeted" because it showed Americans how climate change is fueling more frequent weather disasters worth billions of dollars. If this is true, it's disturbing that the government would rather keep the public in darkness about climate change, hindering the country's capability to prevent and reduce the human, environmental, and economic costs of extreme weather. (Reporting and Editing by Rod Nickel.)
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UK Trade remedies body recommends country specific quota caps for steel imports
The Trade Remedies Authority of Britain (TRA) suggested on Tuesday that country specific quotas should be imposed for certain categories steel imports in order to protect its domestic industry. Since the beginning of the year, Britain has tried to protect its domestic steel industry from an oversupply in the world. It has also extended safeguards on the domestic market and has maintained anti-dumping restrictions for some imports. According to the latest recommendation of TRA, quotas will be implemented in October 2010 and limit how much steel certain countries can import duty-free. Nick Baird, TRA Chair said that the recommendations will "protect the UK steel industry against the destabilising effects of global overcapacity". In March, the TRA expanded its review of steel after U.S. president Donald Trump announced a 25 percent tariff on this sector. Last week, Britain reached an agreement to eliminate these tariffs. However, the two parties must still formalise their agreement. Sector representatives are unsure when the levies will be removed. The U.S. Steel Tariffs are still in place for other countries. This means that there is more available steel on the market, which could end up being diverted towards Britain. Last month, the UK government intervened in order to take control of the last producer of virgin steel in the country. According to Thursday's recommendation, each country will only be able to supply 40% of the remaining quota for three categories of steel, whose UK imports are dominated respectively by Vietnam, South Korea, and Algeria. Imports above that amount will be subjected to a 25% duty. The TRA recommended that the "carry-over" of quotas unused for a quarter into the following quarter be abolished from July. The recommendations will be subject to a further review and approval by the government. UK Steel, however, said that the measures "did little to effectively protect the UK steel industry against the vast quantities of surplus steel seeking to be dumped on our shores". Gareth Stace, UK Steel's Director General, said: "It is time for the government to take action and replace the ineffective steel protections with a robust mechanism of trade defense based on quotas that are designed to fit the realities of the market today and the rest of the world." Reporting by Muvija, Alistair Smout, and Catarina demony. Mark Potter (Editing)
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US sanctions companies that it claims sent Iranian oil to China
The U.S. Treasury Department imposed sanctions Tuesday on more than twenty companies that are part of a network it claims has been sending Iranian oil to China for years. This comes days after Iran and the United States completed a fourth round nuclear talks. Treasury reported that the network was responsible for shipping oil worth billions to China, on behalf of Iran’s Armed Forces General Staff, and Sepehr Energy (the front company of Sepehr Energy), Treasury stated. The department sanctioned CCIC Singapore PTE and other companies, including CCIC Singapore PTE. It said that CCIC Singapore PTE helped Sepehr conceal the oil's Iranian source. They also carried out the pre-delivery checks required before oil could be transferred to China. Huangdao Inspection and Certification Co Ltd was also sanctioned for assisting Sepehr. Treasury sanctioned Qingdao Linkrich International Shipping Agency Co Ltd, which they said assisted Sepehr Energy chartered vessels with their arrival at Qingdao Port and their discharge as its designated agent. According to Tammy Bruce, State Department spokesperson, the sale of oil funded the development of Iranian missiles and drones as well as nuclear proliferation and attacks on the U.S. Navy, Israel and ships in the Red Sea by the Houthi militants group. Bruce stated, "We will continue using all tools available to us to hold the regime responsible." The sanctions imposed on Tuesday are the latest to be imposed since U.S. president Donald Trump re-instituted his "maximum press" campaign against Iran. Prior to Tuesday's sanctions, China's "teapots" of independent oil refineries were targeted. Analysts said that the measures had increased pressure on Iran and China. However, Washington would need to impose sanctions against China's state owned enterprises in order to have a broader impact. Tehran and Washington both say they prefer diplomacy in resolving the decades-old nuclear dispute. However, they are deeply divided over several redlines including Iran's enrichment of uranium. (Reporting and editing by Nick Zieminski, Matthew Lewis and Timothy Gardner in Washington)
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Copec warns that the China pulp market may be challenged by US tariffs
Empresas Copec, a Chilean conglomerate of industrial companies, said that the Chinese market could be more difficult for its forestry product if paper manufacturers struggle to increase sales due to uncertainty about U.S. Tariff policies. In a recent presentation, Cristian Infante, the head of Copec’s forestry division Arauco, said that most of the customers who export to the U.S. don’t really know the price at which their goods will be sold. "They're trying as hard as they can to buy as little." Arauco sells wood panels and pulp worldwide and contributes to the majority of Copec’s earnings. However, its core earnings fell by over 22% during the first quarter of 2025 due to lower pulp prices and smaller volume shipped. Infante warns that prices may continue to fall in May. When Chinese customers start to feel that prices are near the bottom of the market, they'll start talking. "When that will happen, is a good question," he said, noting recent news about Talks between the U.S. had made futures markets jump. Infante, Copec's U.S. Market Director, said that he viewed the market as stable at the moment, despite the fact that costs for resins used to make wood panels had increased due to the volatility of new import tax policies. He said, "I wouldn’t say that it’s booming." "This volatility we've experienced due to the tariff problem has affected the market." Copec, however, said that in Europe, uncertainty and concern are increasing due to the potential implementation of new U.S. Tariffs and possible trade conflicts with other nations. (Reporting and editing by Kyra Madry; Sarah Morland is the reporter)
Philippines' more assertive hand in dispute over South China Sea tests Beijing
In the Presidential Situation Room in February of last year, senior Philippines officials were faced with a difficult decision. Coast guard officers displayed photos that they said were of a military grade laser pointed by China at a Philippines vessel in disputed waters a few days before.
Eduardo Ano was the national security advisor and chairman of the South China Sea Taskforce. He had to decide if he wanted to risk Beijing's anger by releasing the photos, or if he didn't want to aggravate his giant neighbor.
The retired general said to the officials, "The public deserves know." "Publish the photos." The meeting, which was previously kept secret, marked a crucial moment as Manila launched a publicity campaign to draw attention to the escalating territorial dispute in South China Sea. Ramming of vessels, the use of water cannons, and diplomatic protests that followed have sharply increased tensions.
"It was a pivotal moment and the birthing of transparency policy," National Security Council spokeswoman Jonathan Malaya told . Malaya attended the meeting and recounted what happened. The goal was to impose severe consequences on Beijing's image, reputation and standing. Malaya claimed that President Ferdinand Marcos Jr. had instructed officials to "civilianise, and internationalise", the dispute. They achieved this by embedding foreign reporters on missions and using the coastguard. He said that this was an important part of building international support to the Philippines because foreign governments are also our audience.
This report on the Philippines' policy change and its implications is based upon interviews with 20 Philippine officials and Chinese diplomats, as well as regional analysts and analysts. The analysts said that the publicizing of China's actions in conjunction with Manila's strengthened military alliance with the U.S. had limited Beijing's ability escalate maritime issues, but increased the risk of Chinese economic retaliation as well as U.S. participation. The meeting in February 2023 took place just days after Marcos gave the U.S. the right to access four additional military bases within the Philippines. This rekindled defence ties which had been weakened under Rodrigo Duterte.
"China has very few options for escalation without invoking the U.S. - Philippines mutual defence treaty or risking a war between Chinese and U.S. troops," said Ian Storey of Singapore's Yusof Ishak Institute.
Marcos also launched a diplomatic offensive to gain support from countries like Canada, Germany and India for the Philippines.
Oil and gas are abundant in the South China Sea. Around $3 trillion worth of trade is carried out through the South China Sea every year. The U.S.'s access to Philippine bases may be important in a conflict over Taiwan. China, whose claims over most of the sea have been invalidated by an International Tribunal in 2016, alleges that Philippine vessels illegally invade waters around disputed shoals. Marcos will take office in June of 2022. The Chinese government has warned him not to misjudge the situation.
Jay Batongbacal, a Philippine lawyer and legal scholar, said: "This is poker. This is brinkmanship." "Brinkmanship" is pushing things to the limit, to see who will lose their nerve. Poker is a game that involves bluffing, deception and one could do both at once.
China's Foreign Ministry responded to ' questions by saying that the Philippines was stoking tensions at sea with "provocative acts in an effort to infringe China's territorial and maritime sovereignty".
China said it would protect its interests and resolve the conflict peacefully by dialogue.
A spokesperson for the U.S. State Department said that Manila's transparency campaign had been successful in bringing greater attention to China’s "disregard of international law" as well as its actions which put Philippine servicemen at risk.
The spokesperson refused to comment on the possibility of a U.S. involvement in military operations, but did say that the U.S. was prepared to support the Philippines should it face economic coercion by China.
"AWAKE AT NIGHT" The conflict concerns Scarborough Shoal (also known as Second Thomas Shoal) and Scarborough Shoal (also known as Scarborough Shoal), where the Philippine Navy maintains an rusting BRP Sierra Madre warship that was beached by Manila in 1999, to support its sovereignty claims. It is manned by a small crew. Chinese ships attempted to block resupply mission by encircling Philippine vessel and firing water cannons which in March broke a boat's glass, injuring the crew. China claimed to have acted professionally and lawfully. Manila released video footage of the incident. In February, Philippine vessels recorded their Chinese counterparts erecting a barricade across the Scarborough Shoal entrance. Both sides have traded accusations this week over a collision that involved their vessels near Second Thomas Shoal.
Jay Tarriela, spokesman for the Philippine Coast Guard, taunts Chinese officials on X and state media. He also posts drone footage of maritime conflicts. He said that if he had been doing something wrong, he would have been closed down.
Tarriela claimed that the transparency campaign had been successful in galvanizing support for Manila, while China's threshold of aggression has not changed despite the increase in incidents.
He said, "They still rely on their water cannons... They are stuck with this kind of tactic."
Center for Strategic and International Studies reported in January that the number of Chinese ships around Second Thomas Shoal, during Philippine resupply mission has increased from an average of one ship in 2021 to 14 in 2023. According to Philippine officials, China's Coast Guard came within metres from the Sierra Madre last month and seized supplies that were airdropped for troops stationed at that location. China's navy, which patrolled the area, claimed that Filipino soldiers had pointed guns at their coast guard. Manila, however, stated they were just holding their weapons.
Officials in the Philippines say that they are concerned about a deadly accident escalating into hostilities.
Jose Manuel Romualdez told that "that keeps a lot us awake at nights".
Manila wants to avoid the economic pressures it experienced a decade earlier, when Chinese customs delays caused Philippine bananas rotting on Chinese docks.
China accounted for 14.8% or $11 billion of the Philippines' total exports in 2023. China is the Philippines top importer, mostly refined petroleum products and electronic goods.
Romualdez stated that Manila hopes China will "see the importance of continuing our economic activities while trying to peacefully solve the issue".
Edcel John Ibarra is a political science professor at the University of the Philippines. He said Marcos could provoke China to "a tougher approach", including non-tariff restrictions and tourism restrictions. He cited changes China made in May, which allow the coast guard to hold foreigners without trial and for 60 days.
Manila's intensity has shocked its neighbors. Vietnam and Malaysia have also had maritime disputes with Beijing. They have been more careful about the information they have released from their skirmishes.
One Asian diplomat who did not wish to be identified said: "We're all watching and talking between ourselves." "The Philippines has developed a new strategy to stand up to Beijing on a point where there is friction."
Marcos stated in December that diplomacy had not achieved much with China, and urged Southeast Asia to "come up with a new paradigm".
China's official media has expressed dissatisfaction with the transparency campaign.
Global Times, a state-sponsored newspaper, said in a May op-ed that the Philippines had "played the victim in order to deceive the international public opinion". Manila's strategy has included a key element of solidifying the U.S. Alliance. In May of last year, both countries clarified that their defence treaty covers the coastguard. Marcos took part in an unprecedented summit, with his U.S. counterparts and Japanese counterparts, on April.
An official from the United States who was involved in U.S. China talks said that Chinese officials complained behind closed doors about these diplomatic breakthroughs, adding that Beijing is "feeling squeezed".
Zha Daojiong of the School of International Studies at Peking University says that China is in a deadlock and will continue to "essentially react" to flashpoints such as Second Thomas Shoal.
He said, "I guess that by responding to the Philippines action they want to maintain the message that the shoal in question is still in dispute."
(source: Reuters)