Tag Archives: Australia

U.S. and allies accuse China of global hacking spree

By Steve Holland and Doina Chiacu

WASHINGTON (Reuters) – The United States and its allies accused China on Monday of a global cyberespionage campaign, mustering an unusually broad coalition of countries to publicly call out Beijing for hacking.

The United States was joined by NATO, the European Union, Britain, Australia, Japan, New Zealand and Canada in condemning the spying, which U.S. Secretary of State Antony Blinken said posed “a major threat to our economic and national security.”

Simultaneously, the U.S. Department of Justice charged four Chinese nationals – three security officials and one contract hacker – with targeting dozens of companies, universities and government agencies in the United States and abroad.

The Chinese Embassy in Washington did not immediately respond to a request for comment. Chinese officials have previously said China is also a victim of hacking and opposes all forms of cyberattacks.

While a flurry of statements from Western powers represent a broad alliance, cyber experts said the lack of consequences for China beyond the U.S. indictment was conspicuous. Just a month ago, summit statements by G7 and NATO warned China and said it posed threats to the international order.

Adam Segal, a cybersecurity expert at the Council on Foreign Relations in New York, called Monday’s announcement a “successful effort to get friends and allies to attribute the action to Beijing, but not very useful without any concrete follow-up.”

Some of Monday’s statements even seemed to pull their punches. While Washington and its close allies such as the United Kingdom and Canada held the Chinese state directly responsible for the hacking, others were more circumspect.

NATO merely said that its members “acknowledge” the allegations being leveled against Beijing by the U.S., Canada, and the UK. The European Union said it was urging Chinese officials to rein in “malicious cyber activities undertaken from its territory” – a statement that left open the possibility that the Chinese government was itself innocent of directing the espionage.

The United States was much more specific, formally attributing intrusions such as the one that affected servers running Microsoft Exchange earlier this year to hackers affiliated with China’s Ministry of State Security. Microsoft had already blamed China.

U.S. officials said the scope and scale of hacking attributed to China has surprised them, along with China’s use of “criminal contract hackers.”

“The PRC’s Ministry of State Security (MSS) has fostered an ecosystem of criminal contract hackers who carry out both state-sponsored activities and cybercrime for their own financial gain,” Blinken said.

U.S. security and intelligence agencies outlined more than 50 techniques and procedures that “China state-sponsored actors” use against U.S. networks, a senior administration official said.

Washington in recent months has focused heavy attention on Russia in accusing Russian hackers of a string of ransomware attacks in the United States.

The senior administration official said U.S. concerns about Chinese cyber activities have been raised with senior Chinese officials. “We’re not ruling out further action to hold the PRC accountable,” the official said.

The United States and China have already been at loggerheads over trade, China’s military buildup, disputes about the South China Sea, a crackdown on democracy activists in Hong Kong and treatment of the Uyghurs in the Xinjiang region.

Blinken cited the Justice Department indictments as an example of how the United States will impose consequences.

The defendants and officials in the Hainan State Security Department, a regional state security office, tried to hide the Chinese government’s role in the information theft by using a front company, according to the indictment.

The campaign targeted trade secrets in industries including aviation, defense, education, government, health care, biopharmaceutical and maritime industries, the Justice Department said.

Victims were in Austria, Cambodia, Canada, Germany, Indonesia, Malaysia, Norway, Saudi Arabia, South Africa, Switzerland, the United Kingdom and the United States.

“These criminal charges once again highlight that China continues to use cyber-enabled attacks to steal what other countries make, in flagrant disregard of its bilateral and multilateral commitments,” Deputy U.S. Attorney General Lisa Monaco said in the statement.

(Reporting by Steve Holland, David Shepardson, Doina Chiacu and Lisa Lambert; Editing by Chizu Nomiyama and Grant McCool)

China, U.S. can coexist in peace but challenge is enormous – White House

By David Brunnstrom and Humeyra Pamuk

WASHINGTON (Reuters) – White House Indo-Pacific coordinator Kurt Campbell said on Tuesday that it was possible for China and United States to coexist in peace but the challenge was enormous and Beijing had become increasingly assertive.

At an event hosted by the Asia Society think tank, Campbell said President Joe Biden will host a summit later this year with the leaders of Australia, India and Japan – the so-called “Quad” grouping that Washington see as a means of standing up to China.

Asked when he expected a first meeting between Biden and Chinese leader Xi Jinping and whether this could come at the G20 summit in October, he replied: “My expectation will be that we’ll have some sort of engagement before too long.”

Campbell said the challenge for the United States would be to come up with a strategy that presented China with opportunities, but also a response if it takes steps “antithetical to the maintenance of peace and stability”.

There were likely to be “periods of uncertainty, perhaps even periods of occasional raised tensions,” he said.

“Do I think it’s possible that the United States and China can coexist and live in peace? Yes I do. But I do think the challenge is enormously difficult for this generation and the next,” he said.

He said Beijing had been increasingly assertive in recent times, taking on many countries simultaneously, a strategy that contrasted with how it operated in the 1990’s.

​ He criticized China’s approach to U.S. ally Australia.

“I’m not sure they have the strategic thinking to go back to a different kind of diplomacy towards Australia right now. I see a harshness in their approach that appears unyielding”

On Taiwan, the self-ruled U.S.-backed island China sees as part of its territory and wants to reclaim, Campbell maintained a cautious approach.

He said the United States supports having a strong unofficial relationship with Taiwan but does not support its independence.

“We fully recognize, understand the sensitivities involved here,” he said. “We do believe that Taiwan has a right to live in peace. We want to see its international role, particularly in areas like vaccines, and issues associated with the pandemic, they should have a role to play here, they should not be shunned in international community.”

(Reporting by David Brunnstrom and Humeyra Pamuk; Editing by Angus MacSwan)

Spy phones ‘in gangsters’ back pockets’ betray hundreds to police

By Colin Packham and Toby Sterling

CANBERRA/AMSTERDAM (Reuters) -A global sting in which organized crime gangs were sold encrypted phones that law enforcement officials could monitor has led to more than 800 arrests and the confiscation of drugs, weapons, cash and luxury cars, officials said on Tuesday.

The operation by the U.S. Federal Bureau of Investigation, Australian and European police ensnared suspects in Australia, Asia, Europe, South America and the Middle East involved in the global narcotics trade, the officials said.

Millions of dollars in cash were seized in raids around the world, along with 30 tonnes of drugs including more than eight tonnes of cocaine.

Australian Prime Minister Scott Morrison said the operation had “struck a heavy blow against organized crime – not just in this country, but … around the world”.

Operation Greenlight/Trojan Shield, conceived by Australian police and the FBI in 2018, was one of the biggest infiltrations and takeovers of a specialized encrypted network.

It began when U.S. officials paid a convicted drug trafficker to give them access to a smartphone that he had customized, on which he was installing ANOM, also styled An0m, a secure encrypted messaging app. The phones were then sold to organized crime networks through underworld distributors.

The FBI helped to infiltrate 12,000 devices into 300 criminal groups in more than 100 countries, Calvin Shivers of the FBI’s Criminal Investigative Division told reporters in The Hague.

COCAINE IN FRUIT

In a pattern repeated elsewhere, one Australian underworld figure began distributing phones containing the app to his associates, believing their communications were secure because the phones had been rebuilt to remove all capabilities, including voice and camera functions, apart from ANOM.

As a result, there was no attempt to conceal or code the details of the messages – which police were reading.

“It was there to be seen, including ‘we’ll have a speedboat meet you at this point’, ‘this is who will do this’ and so on,” Australian Federal Police Commissioner Reece Kershaw said.

“We have been in the back pockets of organized crime … All they talk about is drugs, violence, hits on each other, innocent people who are going to be murdered.”

The phones were such a hit that Italian mafiosi, Asian triads, biker gangs and transnational drug syndicates all began using them, providing the FBI and its partner forces around the world with a trove of 27 million messages.

Shivers said the FBI had been able to see photographs of “hundreds of tons of cocaine that were concealed in shipments of fruit”.

PRINTERS FOR GUN PARTS

Australian police said they had arrested 224 people, including members of outlawed motorcycle gangs, and disrupted 21 murder plots.

On Monday alone, they seized 104 firearms, including a military-grade sniper rifle, as well as almost A$45 million ($35 million) in cash, including A$7 million from a safe buried under a garden shed in a suburb of Sydney.

In Europe, there were 49 arrests in the Netherlands, 75 in Sweden and over 60 in Germany, where authorities seized hundreds of kilograms of drugs, more than 20 weapons and over 30 luxury cars and cash.

Finnish police not only detained almost 100 suspects and seized 500 kg of narcotics but also found a warehouse with 3-D printers used to manufacture gun parts.

The operation also revealed that gangs were being tipped off about police actions, which prompted “numerous high-level public corruption cases in several countries,” according to an affidavit from an FBI agent.

Kershaw said the Australian underworld figure, who had absconded, had “essentially set up his own colleagues” by distributing the phones, and was now a marked man.

“The sooner he hands himself in, the better for him and his family.” ($1 = 1.2893 Australian dollars)

(Additional reporting by Joseph Menn, Tom Allard, Jonathan Barrett, Essi Lehto, Riham Alkousaa and Caroline Copley; Writing by Raju Gopalakrishnan and Philippa Fletcher; Editing by Stephen Coates and Kevin Liffey)

Australia’s Victoria extends Melbourne COVID-19 lockdown for 2nd week

By Renju Jose

SYDNEY (Reuters) -The Australian state of Victoria extended on Wednesday a snap coronavirus lockdown in its capital of Melbourne for a second week, as it scrambles to rein in a highly contagious variant first detected in India, but will ease some curbs elsewhere.

Last Thursday’s lockdown in Australia’s second most populous state was to have run until Thursday, following the detection of the first locally acquired cases in three months, but infections rose and the number of close contacts reached several thousand.

“If we let this thing run its course, it will explode,” the state’s acting Premier James Merlino told reporters in Melbourne. “This variant of concern will become uncontrollable and people will die.”

“No one…wants to repeat last winter,” he added, referring to one of the world’s strictest and longest lockdowns that the southeastern state imposed in 2020 to leash a second wave of infections.

More than 800 people died in that outbreak, accounting for about 90% of Australia’s total deaths since the pandemic began.

Snap lockdowns, regional border curbs and tough social distancing rules have largely helped Australia suppress prior outbreaks and keep its COVID-19 figures relatively low, at just over 30,100 cases and 910 deaths.

Though Victoria’s daily cases have been in the single digits since the lockdown was imposed, officials fear even minimal contact could help spread the variant involved in the latest outbreak.

Six new locally acquired cases were reported on Wednesday, versus nine a day earlier, taking to 60 the tally of infections in the latest outbreak.

Health authorities have said the variant could take just one day to pass from person to person, versus the five or six days of contact required for transmission of earlier variants.

For now, Melbourne’s five million residents face a second week of being allowed to leave home only for essential work, healthcare, grocery shopping, exercise or a vaccination.

But this restriction is likely to be relaxed for people elsewhere in the state, depending on any local transmission in the next 24 hours, while other measures, such as mandatory masks, will stay.

The latest outbreak has been traced back to a traveler who returned from overseas, authorities have said. The individual left hotel quarantine in the state of South Australia after testing negative, but subsequently tested positive in Melbourne.

Casino operator Crown Resorts Ltd, Victoria’s biggest single-site employer with 11,500 staff, had said at the start of the lockdown it would stand down staff but pay them wages for rostered hours.

After Wednesday’s extension, Crown has said it would make only a “one-off discretionary” payment, however.

Since the early days of the pandemic, Australian employers have relied on federal subsidies to pay staff stood down during lockdowns, but the government ended that scheme in March.

Merlino, the acting Victoria premier, called for the federal government to reinstate the subsidies in light of the lockdown. Federal Treasurer Josh Frydenberg said the government was open to new support measures but would talk to officials in Victoria before committing to specifics.

(Reporting by Renju Jose with additional reporting by Byron Kaye; Editing by Kenneth Maxwell and Clarence Fernandez)

Biden looks abroad for electric vehicle metals, in blow to U.S. miners

By Ernest Scheyder and Trevor Hunnicutt

(Reuters) – U.S. President Joe Biden will rely on ally countries to supply the bulk of the metals needed to build electric vehicles and focus on processing them domestically into battery parts, part of a strategy designed to placate environmentalists, two administration officials with direct knowledge told Reuters.

The plans will be a blow to U.S. miners who had hoped Biden would rely primarily on domestically sourced metals, as his campaign had signaled last autumn, to help fulfill his ambitions for a less carbon-intensive economy.

Rather than focus on permitting more U.S. mines, Biden’s team is more focused on creating jobs that process minerals domestically into electric vehicle (EV) battery parts, according to the people.

Such a plan would help cut U.S. reliance on industry leader China for EV materials while also enticing unions with manufacturing work and, in theory, reduce pandemic-fueled unemployment.

The U.S. Commerce Department is organizing a June conference to attract more EV manufacturing to the country. Biden’s proposed $1.7 trillion infrastructure plan earmarks $174 billion to boost the domestic EV market with tax credits and grants for battery manufacturers, among other incentives. The department declined to comment.

“It’s not that hard to dig a hole. What’s hard is getting that stuff out and getting it to processing facilities. That’s what the U.S. government is focused on,” said one of the sources.

The approach would see the United States rely on Canada, Australia, and Brazil – among others – to produce most of the critical raw materials needed, while it competes for higher-value jobs turning those minerals into computer chips and batteries, according to the two sources.

Securing the full supply chain from metals to batteries does not require the United States to be the primary producer of the raw materials, said one of the sources.

A full strategy will be finalized after a year-long supply chain review involving national security and economic development officials.

Biden officials want to ensure the administration’s EV aspirations are not imperiled as domestic mines face roadblocks, the sources said, both from environmentalists and even some Democrats.

“It rings hollow when I hear everyone use this as a national defense argument, that we have to build new mines to have a greener economy,” said U.S. Representative Betty McCollum, a Democrat who has introduced legislation that would permanently block Antofagasta Plc’s proposed Twin Metals copper mine in Minnesota.

Ali Zaidi, deputy White House national climate advisor, said the administration was focused on a strategy that “leverages our domestic resources in a way that’s responsible”, noting that included recycling in the supply chain.

While U.S. projects from small and large miners alike will feel the impact, the pain from any blocked projects will fall disproportionately on smaller, U.S.-focused companies. Many large miners also have global projects that could benefit from the administration’s plan.

“We can no longer push the production of the products we want to places we cannot see and to people we will never meet,” said Mckinsey Lyon of Perpetua Resources Corp, which is trying to develop Idaho’s Stibnite mine to produce gold and antimony used to make EV battery alloys.

INVESTMENTS

The U.S. government in April became the largest shareholder in mining investment firm TechMet, which controls a Brazilian nickel project, a Rwandan tungsten mine and is a major investor in a Canadian battery recycler.

Washington also funds research into Canadian cobalt projects and rare earths projects in Malawi, among other international investments.

The State Department’s Energy Resource Governance Initiative (ERGI) is one of the main programs Washington plans to use to help allies discover and develop lithium, cobalt and other EV metals. To be sure, Washington is not ignoring domestic mining.

The U.S. Department of Energy has awarded grants to help old coal mines find ways to produce rare earths. U.S. officials have also funded MP Materials Corp, which owns the country’s only rare earths mine, though it relies on Chinese processors.

But the bulk of Biden’s approach is designed to sidestep battles with environmentalists and save capital for other fights, according to one administration source. During a visit to a Ford Motor Co plant in Michigan on May 18, Biden called for government grants for new EV battery facilities. He mentioned Australia’s lithium reserves during the tour, but not large U.S. supplies of the key battery mineral.

Republicans say Biden’s EV plans will be impossible to achieve without more U.S. mines.

“These ‘not-in-my-backyard’ extremists have made clear they want to lock up our land and prevent the mining of minerals,” U.S. Representative Lauren Boebert, a Colorado Republican, told a House Natural Resources Committee forum held the same day as Biden’s Michigan visit.

PLACATING LABOR

Biden’s approach comes with risks, including angering political supporters within the labor movement who want the administration to have an openness to resource extraction and the attendant jobs.

“Let’s let Americans extract these minerals from the earth,” said Aaron Butler of United Association Local 469 union, which does work for Rio Tinto Ltd’s proposed Resolution copper mine project in Arizona and endorsed Biden in the elections. “These are good-paying jobs.” Many of the skills that labor unions would use to build mines, including concrete and electrical work, can also be used to build EV metal processing plants.

The National Mining Association, an industry trade group, has been lobbying the White House and Congress to support domestic projects, arguing that the coronavirus pandemic showed the importance of localizing supply chains.

Biden’s White House is now quietly working to enlist labor support as it tries to build a case that its green policies are creating jobs, ahead of the 2022 midterm elections that could determine whether the strategy wins congressional backing, according to two organized labor sources familiar with the campaign Biden officials have reached out to unions across the country asking for specific job-boosting projects the administration can take credit for, the labor sources said.

(Reporting by Ernest Scheyder in Houston and Trevor Hunnicutt in Washington; Editing by Amran Abocar and Marguerita Choy)

AstraZeneca woes grow as Australia, Philippines, African Union curb COVID shots

By Reuters Staff

(Reuters) – Australia and the Philippines limited use of AstraZeneca’s COVID-19 vaccine on Thursday, while the Africa Union dropped plans to buy the shot, dealing further blows to the company’s hopes to deliver a vaccine for the world.

The vaccine – developed with Oxford University and considered a frontrunner in the global vaccine race – has been plagued by safety concerns and supply problems since Phase III trial results were published in December, with Indonesia the latest country forced to seek doses from other vaccine developers.

The Philippines suspended the use of AstraZeneca shots for people below 60 after Europe’s regulator said on Wednesday it found rare cases of blood clots among some adult recipients although the vaccine’s advantages still outweighed its risks.

Australia recommended people under 50 should get Pfizer’s COVID-19 vaccine in preference to AstraZeneca’s, a policy shift that it warned would hold up its inoculation campaign.

The African Union is exploring options with Johnson & Johnson having dropped plans to buy AstraZeneca’s vaccine from India’s Serum Institute, the head of the Africa Centers for Disease Control and Prevention told reporters.

AstraZeneca’s shot is sold at cost, for a few dollars a dose. It is by far the cheapest and most high-volume launched so far, and has none of the extreme refrigeration requirements of some other COVID-19 vaccines, making it likely to be the mainstay of many vaccination programs in the developing world.

But more than a dozen countries have at one time suspended or partially suspended use of the shot, first on concerns about efficacy in older people, and now on worries about rare side effects in younger people.

That, coupled with production setbacks, will delay the rollout of vaccines across the globe as governments scramble to find alternatives to tame the pandemic which has killed more than 3 million.

‘EXTREMELY RARE’

Italy joined France, the Netherlands, Germany and others in recommending a minimum age for recipients of AstraZeneca’s shot on Wednesday and Britain said people under 30 should get an alternative. South Korea also suspended use of the vaccine in people under 60 this week, while approving Johnson & Johnson’s shot.

AstraZeneca has said it is working with the British and European regulators to list possible brain blood clots as “an extremely rare potential side-effect”.

South Africa also paused AstraZeneca vaccinations last month because of a small trial showing the shot offered minimal protection against mild to moderate illness caused by the dominant local coronavirus variant.

AstraZeneca is grappling with production issues that have led to shortfalls of its shot in several countries.

Indonesian Health Minister Budi Gunadi Sadikin said on Thursday the country was in talks with China on getting as many as 100 million COVID-19 vaccine doses to plug a gap in deliveries after delays in the arrivals of AstraZeneca shots.

India has put a temporary hold on all major exports of AstraZeneca’s shot made by the Serum Institute of India (SII), the world’s biggest vaccine-maker, as domestic infections rise.

That has affected supplies to the GAVI/WHO-backed global COVAX vaccine-sharing facility through which 64 poorer countries are supposed to get doses from the SII, the program’s procurement and distributing partner UNICEF told Reuters last month.

Britain is slowing its vaccine rollout due to a shipment delay from India and is at loggerheads with the EU over exports. Australia has also blamed delays in its immunization campaign on supply issues in Europe.

AstraZeneca has cited reduced yields at a European factory behind the supply shortfall to the European Union.

Exclusive: EU denies blocking 3.1 million AstraZeneca shots to Australia

By Colin Packham

CANBERRA/BRUSSELS (Reuters) – The European Union on Tuesday denied blocking shipments of 3.1 million doses of AstraZeneca’s COVID-19 vaccine to Australia, as the bloc steps up scrutiny of vaccine exports to address shortages.

An Australian government source told Reuters that the EU had blocked 3.1 million shots and the country had little hope of getting the remaining 400,000 doses it has been promised on time.

The dispute underscores massive shortfalls of the AstraZeneca shot across the EU and complicates Australia’s inoculation campaign, which is more than 80% behind its original schedule.

“We cannot confirm any new decision to block vaccine exports to Australia or to any other country,” a European Commission spokesman told a news conference.

A Commission spokeswoman said the bloc had rejected only one of 491 COVID-19 vaccine export requests since it enhanced export transparency in late January, but added that seven requests were currently being reviewed – and therefore shipments were on hold until a decision was made.

She declined to say whether a new shipment to Australia was among those being reviewed. But an EU official said there was no request for export to Australia under review.

The only rejected request out of nearly 500 received has been so far a shipment of 250,000 doses to Australia in March. From Jan 30 to March 24, the EU exported 1 million doses to Australia, the Commission said in a press release.

The EU has repeatedly said that AstraZeneca may not be allowed to export from the EU until it fulfils its contractual obligations towards the bloc, a position that has led the company to refrain from submitting some export requests.

AstraZeneca did not immediately reply to a request for comment on Tuesday.

With inoculation rollouts running far behind those of Britain and the United States, the EU tightened its oversight of vaccine exports last month, giving it greater scope to block shipments. “They’ve blocked 3.1 million shots so far,” said the Australian government source, adding that it had only received 300,000 doses and a further 400,000 doses were scheduled to arrive by the end of April.

“We haven’t given up hope but we’ve stopped counting them in our expected supplies,” the source said. The person declined to be named because he is not authorized to talk about the matter.

WELL BEHIND SCHEDULE

Australia had until Tuesday only confirmed the block of 250,000 AstraZeneca doses from the EU, which Canberra said then would not delay its inoculation timetable.

An EU official said it was not responsible for AstraZeneca’s failure in upholding commitments to other countries. The drug maker aims to deliver only 100 million doses to the bloc by the end of June out of 300 million it had pledged.

It is unclear whether Australia plans to ask Britain or the United States to ship AstraZeneca doses.

Australian Prime Minister Scott Morrison said on Tuesday the missing shipments were responsible for it not meeting its inoculation schedule. “In early January, we anticipated we would have the 3.1 million vaccines. Those vaccines were not supplied to Australia,” Morrison told reporters in Canberra. “That is the reason.”

The AstraZeneca vaccine arriving from Europe were to underpin the early stages of Australia’s vaccine drive, supplementing 50 million shots of the vaccine that will be produced locally by CSL Ltd.

Australia has recorded just 909 coronavirus deaths since the pandemic began and said on Tuesday it would launch a quarantine and COVID-testing free travel bubble with New Zealand this month after effectively eradicating the virus by closing borders last year.

Australia’s vaccine program is running well behind schedule, having started much later than some other countries due to the low case numbers, and the AstraZeneca blockages leave it struggling to step up the pace.

Only about 670,000 people have been inoculated against an initial target of 4 million by end-March.

While the government blamed the slow rollout for supply issues from Europe, Australian state governments have also complained about slower-than-expected distribution and a lack of certainty on supplies.

(Reporting by Colin Packham and Renju Jose; Additional reporting by Francesco Guarascio in Brussels; Editing by Miyoung Kim, Nick Macfie and John Stonestreet)

Australia urges EU to send 1 million COVID-19 vaccines for PNG amid fresh outbreak

By Colin Packham

CANBERRA (Reuters) – Australia said on Wednesday it will ask the European Union to release 1 million doses of a COVID-19 vaccine to help Papua New Guinea (PNG) battle a dangerous outbreak that authorities fear could spread to other parts of the region.

The request could inflame existing tensions between Canberra and Brussels amid claims of vaccine nationalism after the EU recently blocked an Australia-bound shipment of the doses.

Prime Minister Scott Morrison on Wednesday said the vaccines were contracted to Australia and were now badly needed to contain a surge in coronavirus cases in the Pacific island nation, parts of which are just a short boat ride from Australian territory.

“We’ve contracted them. We’ve paid for them and we want to see those vaccines come here so we can support our nearest neighbor, PNG, to deal with their urgent needs in our region,” Morrison told reporters in Canberra.

“They’re our family, they’re our friends. They’re our neighbors. They’re our partners… This is in Australia’s interests, and is in our region’s interests.”

“We confirm that the President of the European Commission has received a letter from the Australian Prime Minister on this topic and we will reply in due time,” a spokeswoman for the EU executive said on Wednesday.

Australia will donate 8,000 locally produced COVID-19 vaccines to PNG as an immediate response to the outbreak, and would make a million doses available as soon as they arrived from Europe, he said.

Earlier this month, the EU, at Italy’s request, blocked a shipment of 250,000 doses of the AstraZeneca PLC vaccine to Australia, citing vaccine shortages in Europe.

It later denied Australia’s request to review the blockage, the first such refusal since Brussels established a mechanism to monitor vaccine flows in late January.

PNG has officially recorded over 2,300 cases since the pandemic began, a figure experts say vastly underestimates the true outbreak.

Prime Minister James Marape earlier this week said COVID-19 had “broken loose” as he warned local hospitals would soon be overwhelmed.

Marape has urged people to avoid unnecessary travel but his warning came as thousands of people gathered to mourn the death of Michael Somare, PNG’s first prime minister after independence from Australia.

Australian Chief Medical Officer Paul Kelly said the limited coronavirus testing being done in PNG was showing alarming results.

“When people are being admitted into hospital in Port Moresby, half of women who are coming in due to pregnancy are positive,” Kelly told reporters in Canberra.

Morrison warned an “uncontrolled” outbreak could produce a new variant of the virus that would affect not only PNG but the wider region.

Canberra will suspend all travel to and from PNG from Wednesday midnight, he added.

Australia said in a statement on Wednesday it has approached the United States, Japan and India, members of the so-called Quad group of Asia Pacific nations, to seek additional help for PNG.

FIGHTING CHANCE

A senior Australian government source said while the EU had justified blocking the shipment to Australia due to Canberra’s success in containing the virus, that rationale would not hold with PNG.

Aid agencies echoed the desperate need for vaccines in the impoverished country of almost nine million people.

“PNG needs a fighting chance to beat this, and frontline doctors and nurses could be the difference between keeping this under control or utter catastrophe for PNG’s health system,” said Marc Purcell, chief executive of The Australian Council for International Development, which represents aid agencies.

The government source said Canberra would lodge its request with the EU this week and an answer was likely within days. He declined to be named as he is not authorized to talk to media.

(Reporting by Renju Jose in Sydney and Colin Packahm in Canberra; additional reporting by Francesco Guarascio in Brussels; Editing by Stephen Coates, Christopher Cushing and Sam Holmes)

U.S., India, Japan and Australia agree to provide a billion vaccine doses in Asia

By David Brunnstrom, Michael Martina and Jeff Mason

WASHINGTON (Reuters) – U.S. President Joe Biden and the leaders of Australia, India and Japan agreed in a summit on Friday to cooperate in providing up to a billion coronavirus vaccine doses to developing countries in the Indo-Pacific by the end of 2022, a move to counter China’s widening vaccine diplomacy.

Biden, hosting the first leader-level meeting of a group central to his efforts to counter China’s growing military and economic power, said a free and open Indo-Pacific region was “essential” to all four countries.

“The United States is committed to working with you, our partners, and all our allies in the region, to achieve stability,” he said.

Biden’s national security adviser, Jake Sullivan, said the leaders addressed key regional issues at the virtual meeting, “including freedom of navigation and freedom from coercion” in the South and East China Sea, the North Korean nuclear issue, and the coup and violent repression in Myanmar.

Sullivan told a news briefing the meeting discussed the challenges posed by China, although this was not the focus. He said that among the issues discussed were recent cyberattacks and semi-conductor supply-chain issues.

The Quad leaders committed to delivering up to one billion doses of COVID-19 vaccines to Southeast Asia by the end of 2022, Sullivan said .

Japanese Prime Minister Yoshihide Suga said he wanted the four “to forge strongly ahead toward the realization of a free and open Indo-Pacific” and that Japan had agreed to cooperate in providing vaccine-related support to developing countries.

He also told reporters he had expressed strong opposition to attempts by China to change the status quo in the region and that the four leaders had agreed to cooperate on the issue.

India and Australia also emphasized the importance of regional security cooperation, which has been enhanced by previous lower-level Quad meetings.

India Foreign Secretary Harsh Vardhan Shringla said the meeting had agreed U.S. vaccines would be manufactured in India, something New Delhi has called for to counter Beijing’s widening vaccine diplomacy.

In a joint statement the leaders pledged to work closely on COVID-19 vaccine distribution, climate issues and security.

“We strive for a region that is free, open, inclusive, healthy, anchored by democratic  values, and unconstrained by coercion,” they added, without mentioning China by name.

The meeting also agreed to set up a group of experts to help distribute vaccines, as well as working groups for cooperation on climate change, technology standards, and joint development of emerging technologies.

The leaders agreed to hold an in-person meeting later this year.

India, Australia and Japan have all faced security challenges from China, strengthening their interest in the Quad. Quad cooperation dates back to their joint response to the Indian Ocean earthquake and tsunami in 2004.

The Quad was revived under the Trump administration, which saw it as a vehicle to push back against China. The United States hosted a foreign ministers’ meeting in 2019, which was followed by another in Japan last year and a virtual session in February.

Friday’s meeting coincided with a major U.S. diplomatic drive to solidify alliances in Asia and Europe to counter China, including visits next week by Secretary of State Antony Blinken and Defense Secretary Lloyd Austin to Japan and South Korea.

Blinken will also meet in Alaska with China’s top diplomat, Yang Jiechi, and State Councillor Wang Yi – the first high-level in-person contact between the world’s two largest economies under the Biden administration.

Washington has said it will not hold back in its criticism of Beijing over issues ranging from Taiwan to Hong Kong and the genocide it says China is committing against minority Muslims.

Modi told the session the Quad had “come of age” and would “now remain an important pillar of stability in the region.” Australian Prime Minister Scott Morrison called the meeting “a whole new level of cooperation to create a new anchor for peace and stability in the Indo-Pacific.”

A fact sheet issued after the meeting said the United States, through its International Development Finance Corp, would work to finance Indian drugmaker Biological E Ltd to produce at least 1 billion COVID-19 vaccine doses by end of 2022.

It also said Japan was in discussions to provide concessional yen loans for India to expand manufacturing of COVID-19 vaccines for export.

The Biden administration told Reuters on Tuesday the United States and Japan would help fund Indian firms manufacturing vaccines for U.S. drugmakers Novavax Inc and J&J.

However, Indian government sources say U.S. curbs on exports of critical materials could hamper that effort and those to start large-scale distribution to Southeast Asia.

(Reporting by David Brunnstrom, Michael Martina, Jeff Mason and Doina Chiacu; additonal reporting by Kiyoshi Takenaka in Tokyo; Editing by Gareth Jones and Alistair Bell)

India sees early vaccine launch as AstraZeneca deliveries run late

By Krishna N. Das

NEW DELHI (Reuters) – India raced ahead with work on its coronavirus vaccine while Britain’s AstraZeneca said its deliveries were running “a little bit late” as countries around the world sought to conquer the pandemic and rescue their economies.

A vaccine is seen as the world’s best bet for taming a virus that has infected more than 48 million people, led to more than 1.2 million deaths, roiled economies and disrupted billions of lives since it was first identified in China in December.

Australia is beefing up its prospective arsenal against the pandemic to 135 million doses of various vaccine candidates.

“We aren’t putting all our eggs in one basket,” Prime Minister Scott Morrison said on Thursday.

Some 45 vaccine candidates are in human trials worldwide, with Pfizer Inc saying it could file in late November for U.S. authorization, opening up the possibility of a vaccine being available in the United States by the end of the year.

Moderna and AstraZeneca are close behind the largest U.S. drugmaker and are likely to have early data on their vaccine candidates before the end of the year.

An Indian government-backed vaccine could be launched as early as February – months earlier than expected – as last-stage trials begin this month and studies have so far showed it is safe and effective, a senior government scientist told Reuters.

Bharat Biotech, a private company that is developing COVAXIN with the government-run Indian Council of Medical Research (ICMR), had earlier hoped to launch it only in the second quarter of next year.

“The vaccine has shown good efficacy,” senior ICMR scientist Rajni Kant, who is also a member of its COVID-19 task force, said at the research body’s New Delhi headquarters.

“It is expected that by the beginning of next year, February or March, something would be available.”

Bharat Biotech could not immediately be contacted.

A launch in February would make COVAXIN the first India-made vaccine to be rolled out.

VACCINE KEPT FROZEN

AstraZeneca has signed multiple deals to supply more than three billion doses of its candidate to countries around the world.

But a summer dip in British coronavirus infections had pushed back test results, leading the drugmaker to delay deliveries of shots to the government.

Britain’s vaccines chief said on Wednesday it would receive just 4 million doses of the potential vaccine this year, against initial estimates for 30 million by Sept. 30.

AstraZeneca said on Thursday it was holding back deliveries while it awaits the data from late-stage clinical trials in order to maximize the shelf-life of supplies.

“We are a little bit late in deliveries, which is why the vaccine has been kept in frozen form,” CEO Pascal Soriot said on a conference call.

AstraZeneca and its partner on the project, the University of Oxford, said that data from late-stage trials should land this year.

The United States leads the world in both the number of COVID deaths and infections and the pandemic was a polarizing issue in Tuesday’s presidential election in which votes were still being counted.

Australia’s Morrison said the government would buy 40 million vaccine doses from Novavax and 10 million from Pfizer and BioNTech.

That adds to the 85 million doses Australia has already committed to buy from AstraZeneca and CSL Ltd should trials prove successful.

Among other vaccine candidates around the world, a growing number of Russians are unwilling to be inoculated once a vaccine becomes widely available, the Levada Centre, Russia’s only major independent pollster, said this week.

Russia, raising eyebrows in the West, is rolling out its “Sputnik V” vaccine for domestic use despite the fact that late-stage trials have not yet finished.

(Reporting by Reuters bureaus; Writing by Nick Macfie; Editing by Angus MacSwan)