“This event definitely strengthens the hands of the United States,” said Heather McMahon, a former senior director at the President’s Intelligence Advisory Board. “Anytime an espionage operation is exposed, [it] gives the advantage to the targeted nation.”
Blinken was preparing to see top officials in China on Sunday and Monday in a follow-up to President Joe Biden’s meeting with Chinese paramount leader Xi Jinping in Bali in November. At the time, Biden pledged to “maintain open lines of communication” with Beijing amid worsening bilateral tensions.
The Pentagon’s announcement Thursday of an alleged Chinese surveillance balloon hovering over Montana changed that plan. In canceling Blinken’s trip, at least for now, the State Department said the incident “would have narrowed the agenda in a way that would have been unhelpful and unconstructive.”
Beijing admitted Friday that the balloon was Chinese, reversing its initial claims of ignorance, and said it was a civilian airship used primarily for meteorological purposes that had been blown into U.S. airspace by high winds.
That admission and the Chinese Foreign Ministry’s rare expression of “regrets” for the incident in a statement published on Friday suggests Beijing is in damage control mode at a time when it’s trying to stabilize ties with the U.S.
The revelation “has pushed China a little bit on the back foot,” said Zack Cooper, former assistant to the deputy national security adviser for combating terrorism at the National Security Council and now a senior fellow at the American Enterprise Institute.
And that could give Blinken an edge in his efforts to prod Beijing to deliver meaningful results when he eventually travels to China.
John Kamm, who has decades of experience negotiating with Chinese officials in his role as founder of the Dui Hua prisoner advocacy organization, said “it puts pressure on China to do something as a goodwill gesture in response to what they’ve done.”
Much of Blinken’s planned two days with Chinese Foreign Minister Qin Gang — and a possible meeting with Xi — would have been lost to ritual recitations of respective U.S.-China positions on issues ranging from Taiwan and trade tensions to concerns about Beijing’s human rights record, its growing nuclear arsenal and its alignment with Russia’s war on Ukraine.
In an interview before the balloon was reported, David R. Stilwell, former assistant secretary of State for the Bureau of East Asian and Pacific Affairs, said the meeting was unlikely to produce movement on any of those issues. “Beijing uses ‘talks’ to reduce pressure — while giving nothing of significance — and to humiliate the other side,” Stillwell said.
Still, some say Blinken could have seized the opportunity to make heavier demands in person.
“If Tony went now, Xi and the Chinese would be deeply embarrassed, grateful that he came, wanting to put it behind him,” said Danny Russel, a former senior Asia hand in the Obama administration. The balloon incident could have become “a teachable moment,” he said.
Delaying the trip risks the Chinese becoming more defensive over time, and less inclined to come to a meeting of the minds, said Russel, who nonetheless stressed that he understood the Biden administration’s calculations.
The Chinese government had recently shifted to a softer diplomatic tone — an effort by Beijing to reduce U.S.-China tensions while it grapples with a disastrous Covid outbreak and an economic downturn.
Blinken’s indefinite postponement of his Beijing trip until “the conditions are right” has won him measured praise from GOP lawmakers.
Delaying the trip is “a right call for now,” Rep. Mike Gallagher (R-Wis.) chair of the House Select Committee on the Strategic Competition between the U.S. and the Chinese Communist Party, said in a video he tweeted on Friday.
The trip postponement “is an appropriate step to underscore the seriousness” of the balloon’s intrusion, Rep. Darin LaHood (R-Ill.) said in a statement.
Blinken can now see if Beijing’s eagerness for even symbolic gestures of reduced bilateral rancor produces Chinese diplomatic sweeteners for a rapid rescheduling of Blinken’s China travel plans.
But time may not be on Blinken’s side given the crowded Chinese political calendar.
“The Chinese have their national legislative session in early March, and House Speaker [Kevin] McCarthy is projected to visit Taiwan around Easter, so the trip may not happen until the late spring, where the bilateral atmosphere arguably will be even more challenging,” said Chris Johnson, president and chief executive of the China Strategies Group, a risk consultancy.
Regardless of the spy balloon’s short-term diplomatic fallout and the possible short-term advantage Blinken could reap from it, the longer-term prospects for U.S.-China relations remain grim.
“Beijing is hoping talks provide a timeout from bilateral friction that allows it to focus on domestic issues; the U.S. wants China to agree to guardrails that allow relations to remain abrasive without getting too hot,” said Robert Daly, director of the Kissinger Institute on China and the United States at the Wilson Center. “Those goals are probably irreconcilable.”
[ad_2]
#balloon #upended #Blinkens #trip #China #good
( With inputs from : www.politico.com )
U.S. Secretary of State Antony Blinken speaks. | Pool photo by Stefani Reynolds
By Phelim Kine
Updated:
Secretary of State Antony Blinken’s Beijing trip has been postponed due to concerns over the suspected Chinese spy balloon flying over the U.S., according to a Washington, D.C.-based foreign diplomat.
“We were told this morning” by the State Department, the diplomat told POLITICO. The diplomat was granted anonymity because the person was not authorized to speak on the record.
Blinken had been scheduled to meet with top officials in China Feb. 5-6 in a follow-up to President Joe Biden’s meeting with Chinese paramount leader Xi Jinping in Bali in November, in which Biden pledged to “maintain open lines of communication” with Beijing at a time of worsening bilateral tensions.
[ad_2]
#Blinkens #China #trip #postponed #Chinese #balloon
( With inputs from : www.politico.com )
The ministry earlier said any violation was unintentional as it urged calm in Washington.
“China is a responsible country,” Mao Ning, a Chinese Foreign Ministry spokesperson, said in a Friday press briefing. “It has always strictly abided by international law and has no intention of violating the territory and airspace of any sovereign country. As I said just now, we are learning about the verification situation and hope that both sides can handle it calmly and cautiously.”
The Pentagon had already assessed it had “very high confidence” the balloon was Chinese and had been sent to the U.S. to collect sensitive information.
A senior Defense Department official told reporters Thursday that the U.S. prepared fighter jets to shoot down the balloon, but senior Pentagon leaders opted against it due to fears of falling debris hurting people on the ground.
An official said the balloon has “limited value” compared to what intelligence China is able to gather using satellites, although the department is taking “steps” to protect against possible foreign intelligence collection of sensitive information, without elaborating. The official requested anonymity in order to discuss sensitive issues.
The news of the balloon sighting surfaced Thursday, angering lawmakers including Speaker Kevin McCarthy, who called for an intelligence briefing.
“China’s brazen disregard for U.S. sovereignty is a destabilizing action that must be addressed, and President Biden cannot be silent,” McCarthy tweeted. “I am requesting a Gang of Eight briefing.”
Rep. Mike Quigley (D-Ill.) said on CNN Friday that low-orbit Chinese satellites have flown over the U.S. for years.
“They’re there all the time,” he said. “I don’t want the American people to think this is something new and that all of a sudden we have a concern that we didn’t have before. Those concerns are there. They have to be mitigated, they have to be addressed. We have to confront the Chinese government.”
The balloon was spotted over Montana, including over Malmstrom Air Force Base, which houses ground-launched intercontinental ballistic missiles.
Montana Sen. Steve Daines demanded a briefing from the Biden administration Thursday night.
“Given the increased hostility and destabilization around the globe aimed at the United States and our allies, I am alarmed by the fact that this spy balloon was able to infiltrate the airspace of our country and Montana,” the Republican said in a statement.
[ad_2]
#China #regrets #balloon #violated #U.S #airspace
( With inputs from : www.politico.com )
New Delhi: Apple reported $65.8 billion in revenue for iPhones in the holiday quarter, down 8 per cent (year-over-year).
However, on a constant currency basis, iPhone revenue was roughly flat, according to the company.
Apple faced supply chain disruptions in October and November as China faced Covid surge and protests erupted at its key supplier Foxconn’s main factory in the country.
Cook said that Covid-related challenges “significantly impacted the supply of iPhone 14 Pro and iPhone 14 Pro Max and lasted through most of December”.
“Because of these constraints, we had significantly less iPhone 14 Pro and iPhone 14 Pro Max supply than we planned, causing ship times to extend far beyond what we had anticipated,” he noted.
Cook said that as a result of a challenging environment, “our revenue was down 5 per cent year over year”.
“But I’m proud of the way we have navigated circumstances, seen and unforeseen, over the past several years, and I remain incredibly confident in our team and our mission and in the work we do every day,” he said in an earnings call with analysts.
“Our customers continue to rave about the astounding camera capabilities and unprecedented battery life and the groundbreaking suite of health and safety features. The iPhone 14 lineup pushes the limits of what users can do with a smartphone,” he added.
During the quarter, Mac revenue came in at $7.7 billion, which was in line with what Apple had expected.
During the quarter, iPad revenue grew 30 per cent to a total of $9.4 billion.
LONDON — As nations around the world scramble to secure crucial semiconductor supply chains over fears about relations with China, the U.K. is falling behind.
The COVID-19 pandemic exposed the world’s heavy reliance on Taiwan and China for the most advanced chips, which power everything from iPhones to advanced weapons. For the past two years, and amid mounting fears China could kick off a new global security crisis by invading Taiwan, Britain’s government has been readying a plan to diversify supply chains for key components and boost domestic production.
Yet according to people close to the strategy, the U.K.’s still-unseen plan — which missed its publication deadline last fall — has suffered from internal disconnect and government disarray, setting the country behind its global allies in a crucial race to become more self-reliant.
A lack of experience and joined-up policy-making in Whitehall, a period of intense political upheaval in Downing Street, and new U.S. controls on the export of advanced chips to China, have collectively stymied the U.K.’s efforts to develop its own coherent plan.
The way the strategy has been developed so far “is a mistake,” said a former senior Downing Street official.
Falling behind
During the pandemic, demand for semiconductors outstripped supply as consumers flocked to sort their home working setups. That led to major chip shortages — soon compounded by China’s tough “zero-COVID” policy.
Since a semiconductor fabrication plant is so technologically complex — a single laser in a chip lithography system of German firm Trumpf has 457,000 component parts — concentrating manufacturing in a few companies helped the industry innovate in the past.
But everything changed when COVID-19 struck.
“Governments suddenly woke up to the fact that — ‘hang on a second, these semiconductor things are quite important, and they all seem to be concentrated in a small number of places,’” said a senior British semiconductor industry executive.
Beijing’s launch of a hypersonic missile in 2021 also sent shivers through the Pentagon over China’s increasing ability to develop advanced AI-powered weapons. And Russia’s invasion of Ukraine added to geopolitical uncertainty, upping the pressure on governments to onshore manufacturers and reduce reliance on potential conflict hotspots like Taiwan.
Against this backdrop, many of the U.K.’s allies are investing billions in domestic manufacturing.
The Biden administration’s CHIPS Act, passed last summer, offers $52 billion in subsidies for semiconductor manufacturing in the U.S. The EU has its own €43 billion plan to subsidize production — although its own stance is not without critics. Emerging producers like India, Vietnam, Singapore and Japan are also making headway in their own multi-billion-dollar efforts to foster domestic manufacturing.
US President Joe Biden | Samuel Corum/Getty Images
Now the U.K. government is under mounting pressure to show its own hand. In a letter to Prime Minister Rishi Sunak first reported by the Times and also obtained by POLITICO, Britain’s semiconductor sector said its “confidence in the government’s ability to address the vital importance of the industry is steadily declining with each month of inaction.”
That followed the leak of an early copy of the U.K.’s semiconductor strategy, reported on by Bloomberg, warning that Britain’s over-dependence on Taiwan for its semiconductor foundries makes it vulnerable to any invasion of the island nation by China.
Taiwan, which Beijing considers part of its territory, makes more than 90 percent of the world’s advanced chips, with its Taiwan Semiconductor Manufacturing Company (TSMC) vital to the manufacture of British-designed semiconductors.
U.S. and EU action has already tempted TSMC to begin building new plants and foundries in Arizona and Germany.
“We critically depend on companies like TSMC,” said the industry executive quoted above. “It would be catastrophic for Western economies if they couldn’t get access to the leading-edge semiconductors any more.”
Whitehall at war
Yet there are concerns both inside and outside the British government that key Whitehall departments whose input on the strategy could be crucial are being left out in the cold.
The Department for Digital, Culture, Media and Sport (DCMS) is preparing the U.K.’s plan and, according to observers, has fiercely maintained ownership of the project. DCMS is one of the smallest departments in Whitehall, and is nicknamed the ‘Ministry of Fun’ due to its oversight of sports and leisure, as well as issues related to tech.
“In other countries, semiconductor policies are the product of multiple players,” said Paul Triolo, a senior vice president at U.S.-based strategy firm ASG. This includes “legislative support for funding major subsidies packages, commercial and trade departments, R&D agencies, and high-level strategic policy bodies tasked with things like improving supply chain resilience,” he said.
“You need all elements of the U.K.’s capabilities. You need the diplomatic services, the security services. You need everyone working together on this,” said the former Downing Street official quoted above. “There are huge national security aspects to this.”
Referring to lower-level civil servants, the same person said that relying on “a few ‘Grade 6’ officials in DCMS — officials that don’t see the wider picture, or who don’t have either capability or knowledge,” is a mistake.
For its part, DCMS rejected the suggestion it is too closely guarding the plan, with a spokesperson saying the ministry is “working closely with industry experts and other government departments … so we can protect and grow our domestic sector and ensure greater supply chain resilience.”
The spokesperson said the strategy “will be published as soon as possible.”
But businesses keen for sight of the plan remain unconvinced the U.K. has the right team in place for the job.
Key Whitehall personnel who had been involved in project have now changed, the executive cited earlier said, and few of those writing the strategy “have much of a background in the industry, or much first-hand experience.”
Progress was also sidetracked last year by lengthy deliberations over whether the U.K. should block the sale of Newport Wafer Fab, Britain’s biggest semiconductor plant, to Chinese-owned Nexperia on national security grounds, according to two people directly involved in the strategy. The government eventually announced it would block the sale in November.
And while a draft of the plan existed last year, it never progressed to the all-important ministerial “write-around” process — which gives departments across Whitehall the chance to scrutinize and comment upon proposals.
Waiting for budget day
Two people familiar with current discussions about the strategy said ministers are now aiming to make their plan public in the run-up to, or around, Chancellor Jeremy Hunt’s March 15 budget statement, although they stressed that timing could still change.
Leaked details of the strategy indicate the government will set aside £1 billion to support chip makers. Further leaks indicate this will be used as seed money for startups, and for boosting existing firms and delivering new incentives for investors.
U.K. Chancellor Jeremy Hunt | Leon Neal/Getty Images
There is wrangling with the Treasury and other departments over the size of these subsidies. Experts also say it is unlikely to be ‘new’ money but diverted from other departments’ budgets.
“We’ll just have to wait for something more substantial,” said a spokesperson from one semiconductor firm commenting on the pre-strategy leaks.
But as the U.K. procrastinates, key British-linked firms are already being hit by the United States’ own fast-evolving semiconductor strategy. U.S. rules brought in last October — and beefed up in recent days by an agreement with the Netherlands — are preventing some firms from selling the most advanced chip designs and manufacturing equipment to China.
British-headquartered, Japanese-owned firm ARM — the crown jewel of Britain’s semiconductor industry, which sells some designs to smartphone manufacturers in China — is already seeing limits on what it can export. Other British firms like Graphcore, which develops chips for AI and machine learning, are feeling the pinch too.
“The U.K. needs to — at pace — understand what it wants its role to be in the industries that will define the future economy,” said Andy Burwell, director for international trade at business lobbying group the CBI.
Where do we go from here?
There are serious doubts both inside and outside government about whether Britain’s long-awaited plan can really get to the heart of what is a complex global challenge — and opinion is divided on whether aping the U.S. and EU’s subsidy packages is either possible or even desirable for the U.K.
A former senior government figure who worked on semiconductor policy said that while the U.K. definitely needs a “more coherent worked-out plan,” publishing a formal strategy may actually just reveal how “complicated, messy and beyond our control” the issue really is.
“It’s not that it is problematic that we don’t have a strategy,” they said. “It’s problematic that whatever strategy we have is not going to be revolutionary.” They described the idea of a “boosterish” multi-billion-pound investment in Britain’s own fabricator industry as “pie in the sky.”
The former Downing Street official said Britain should instead be seeking to work “in collaboration” with EU and U.S. partners, and must be “careful to avoid” a subsidy war with allies.
The opposition Labour Party, hot favorites to form the next government after an expected 2024 election, takes a similar view. “It’s not the case that the U.K. can do this on its own,” Shadow Foreign Secretary David Lammy said recently, urging ministers to team up with the EU to secure its supply of semiconductors.
One area where some experts believe the U.K. may be able to carve out a competitive advantage, however, is in the design of advanced semiconductors.
“The U.K. would probably be best placed to pursue support for start-up semiconductor design firms such as Graphcore,” said ASG’s Triolo, “and provide support for expansion of capacity at the existing small number of companies manufacturing at more mature nodes” such as Nexperia’s Newport Wafer Fab.
Ministers launched a research project in December aimed at tapping into the U.K. semiconductor sector’s existing strength in design. The government has so far poured £800 million into compound semiconductor research through universities, according to a recent report by the House of Commons business committee.
But the same group of MPs wants more action to support advanced chip design. Burwell at the CBI business group said the U.K. government must start “working alongside industry, rather than the government basically developing a strategy and then coming to industry afterwards.”
Right now the government is “out there a bit struggling to see what levers they have to pull,” said the senior semiconductor executive quoted earlier.
Under World Trade Organization rules, governments are allowed to subsidize their semiconductor manufacturing capabilities, the executive pointed out. “The U.S. is doing it. Europe’s doing it. Taiwan does it. We should do it too.”
Cristina Gallardo contributed reporting.
[ad_2]
#Britains #semiconductor #plan #AWOL #splash #billions
( With inputs from : www.politico.eu )
SRINAGAR: Asking Home Minister Amit Shah to opt for a Jammu to Srinagar yatra if the security situation has improved in Jammu and Kashmir, Congress leader Rahul Gandhi said the Chinese sitting on Indian land must be dealt with by the centre. He was speaking to the media in Srinagar after the conclusion of the 134-day-long yatra during which he addressed 15 news conferences.
Rahul said a Ladakhi delegation clearly said that 2000 square km of the Indian Territory was taken by the Chinese.
“Government is under the impression that the Chinese have not taken any land from India. I recently met some ex-army people and even a delegation from Ladakh has clearly said that 2,000 sq km of Indian territory has been taken over by the Chinese,” Rahul said. “They also said that many patrolling points that used to be in India are now firmly in Chinese hands.”
Terming it “extremely dangerous”, Rahul said: “The approach Government is following by completely denying that the Chinese have taken our land is dangerous and it will give them more confidence to do more aggressive things. We have to deal with the Chinese firmly and tell them they are sitting on our land, won’t be tolerated.”
Asked about the situation on the ground in Jammu and Kashmir, Rahul Gandhi said he met people and is extremely unhappy.
“Target killing and bomb blasts are happening in Jammu and Kashmir and if the security situation has improved then the conversation the security personnel are having with me should not have been required,” Rahul said. “If the situation is so good why don’t the BJP people walk from Jammu to Lal Chowk? Why doesn’t Amit Shah walk from Jammu to Kashmir if the situation is so secure? I don’t think that argument holds.”
Congress has alleged a security lapse during the Bharat Jodo Yatra in Kashmir. Earlier on Friday, Congress leader Rahul Gandhi alleged that police arrangement “completely collapsed” during Bharat Jodo Yatra in Jammu and Kashmir and he had “to cancel” his walk.
Responding to a volley of several questions about Jammu and Kashmir, Rahul said the restoration of statehood should be the first step.
“Statehood and restoration of the democratic process is a fundamental and very important first step. The other steps will come later and I do not necessarily have to comment on it here,” he said. “All states have an assembly. The democratic process is the right of the people and it should be restored in Jammu and Kashmir. A solution should be found for the people of Ladakh as well.”
In response to a question about the revocation of Article 370 of the Constitution in 2019, Rahul Gandhi said the Congress Working Committee has already made its stand clear on the issue. Notably, Article 370 granted special status to the erstwhile state of Jammu and Kashmir was revoked by the Modi government on August 5, 2019.
A Democrat who chaired the House Armed Services Committee for four years was nowhere near as fatalistic.
“Anything is possible. I’m really worried when anyone starts talking about war with China being inevitable,” Rep. Adam Smith (D-Wash.) said, also on “Fox News Sunday.”
War with China is “highly unlikely,” and “generals need to be very cautious about saying we’re going to war,” he added.
Pushed by host Shannon Bream, McCaul cited China’s interest in possibly invading the island nation of Taiwan — which it considers part of its territory — as a catalyst for war, and he accused President Joe Biden’s administration of “projecting weakness.”
But Smith and McCaul agreed that the United States’ military supplies are insufficient in the face of possible conflict, in China or elsewhere.
“This is a huge problem,” Smith said. “We don’t have the industrial base, and we don’t have the ability to ramp up that industrial base.”
[ad_2]
#Top #House #Foreign #Affairs #Republican #agrees #possibility #war #China
( With inputs from : www.politico.com )
Srinagar: Questioning the Narendra Modi government’s stance on the issue of China, Congress leader Rahul Gandhi on Sunday said it is time to deal with China firmly.
“Only our prime minister thinks that China has not intruded in our land but the situation is otherwise and I think we need to deal with China firmly and we are not going to tolerate them sitting on our land,” he said with a meeting with a delegation from Ladakh and ex-servicemen amid reports that China has intruded in about 2,000 sq km and the country has lost many patrol points.
The Congress on Friday demanded discussion in the Parliament during budget session on losing 26 patrolling points at the LAC in Ladakh, and alleged that after 17 rounds of talks, the restoration of status quo was not acheived.
Citing the three-day Annual DGP-IGPs Conference in which a detailed security research paper was submitted for discussion, the Congress alleged that it revealed shocking facts about the rank apathy by the Modi government to China’s illegal occupation of Indian territory in the region.
Public authorities in the Netherlands are being told to steer clear of TikTok amid growing concerns across the EU and U.S. that the Chinese-owned video-sharing platform poses privacy risks.
Dutch ministries and agencies are mostly following a recommendation to shun TikTok accounts and stop government communication and advertising on the platform, two government officials told POLITICO. This is despite the app’s skyrocketing popularity in the Netherlands, where it has around 3.5 million users.
The Dutch pivot away from TikTok follows advice issued by the general affairs ministry to “suspend the use of TikTok for the government until TikTok has adjusted its data protection policy” announced in November. While the recommendation resembles a recent U.S. government decision from December to ban the use of TikTok on government devices, the Dutch guidance is far more limited in scope and enforcement.
It’s the latest example of how TikTok, owned by the Beijing-headquartered ByteDance, is facing headwinds in Europe, adding to its troubles in the U.S. The firm is already under investigation for sending data on European Union users to China. One of the video app’s fiercest European critics is French President Emmanuel Macron, who has called TikTok “deceptively innocent” and a cause of “real addiction” among users, as well as a source of Russian disinformation.
Dutch officials have sought to strengthen ties with Washington in recent months as the U.S. pushes for more export controls on selling sensitive technology to China, including machines made by Dutch chips printing giant ASML. Dutch Prime Minister Mark Rutte this month met with U.S. President Joe Biden, where they discussed how to “quite frankly, meet the challenges of China,” the U.S. leader told reporters ahead of the meeting.
The Dutch policy on TikTok, which is effectively a pause rather than a ban, is mainly targeted at stopping the use of TikTok for “media” purposes, a spokesperson for the general affairs ministry said, and doesn’t explicitly instruct government officials to delete the app from phones.
The spokesperson said it’s hard to evaluate how strictly government services have abided by the advice since the ministry isn’t monitoring separate services’ use of the app. But the two officials said the advice had triggered a clear shift away from the Chinese-owned app, in line with growing security concerns across the West.
A junior Dutch government coalition party called in November for a full ban on the app “in its current form.” Asked by reporters what he thought of this proposal, Rutte said this was “the opinion of five seats in the Dutch lower chamber.”
TikTok admitted in early November that some of its China-based employees could access European TikTok user data. It also came under intense scrutiny in the U.S. over a report in Forbes magazine in December that employees had accessed data to track the location of journalists covering TikTok.
This month, TikTok Chief Executive Shou Zi Chew visited Brussels to assuage concerns in meetings with EU commissioners including Executive Vice President Margrethe Vestager, Vice President for Values Věra Jourová and Justice Commissioner Didier Reynders.
“I count on TikTok to fully execute its commitments to go the extra mile in respecting EU law and regaining [the] trust of European regulator,” Jourová said in a warning shot at the company. There could not be “any doubt that data of users in Europe are safe and not exposed to illegal access from third-country authorities,” she said.
TikTok said in a comment that it’s open to engaging with the Dutch government “to debunk misconceptions and explain how we keep both our community and their data safe and secure.”
UPDATED: This article was updated to add TikTok’s comment.
[ad_2]
#Dont #TikTok #Dutch #officials #told
( With inputs from : www.politico.eu )
When you’re feeling under the weather, the last thing you want to do is trek from pharmacy to pharmacy searching for basic medicines like cough syrup and antibiotics. Yet many people across Europe — faced with a particularly harsh winter bug season— are having to do just that.
Since late 2022, EU countries have been reporting serious problems trying to source certain important drugs, with a majority now experiencing shortages. So just how bad is the situation and, crucially, what’s being done about it? POLITICO walks you through the main points.
How bad are the shortages?
In a survey of groups representing pharmacies in 29 European countries, including EU members as well as Turkey, Kosovo, Norway and North Macedonia, almost a quarter of countries reported more than 600 drugs in short supply, and 20 percent reported 200-300 drug shortages. Three-quarters of the countries said shortages were worse this winter than a year ago. Groups in four countries said that shortages had been linked to deaths.
It’s a portrait backed by data from regulators. Belgian authorities report nearly 300 medicines in short supply. In Germany that number is 408, while in Austria more than 600 medicines can’t be bought in pharmacies at the moment. Italy’s list is even longer — with over 3,000 drugs included, though many are different formulations of the same medicine.
Which medicines are affected?
Antibiotics — particularly amoxicillin, which is used to treat respiratory infections — are in short supply. Other classes of drugs, including cough syrup, children’s paracetamol, and blood pressure medicine, are also scarce.
Why is this happening?
It’s a mix of increased demand and reduced supply.
Seasonal infections — influenza and respiratory syncytial virus (RSV)first and foremost — started early and are stronger than usual. There’s also an unusual outbreak of throat disease Strep A in children. Experts think the unusually high level of disease activity is linked to weaker immune systems that are no longer familiar with the soup of germs surrounding us in daily life, due to lockdowns. This difficult winter, after a couple of quiet years (with the exception of COVID-19), caught drugmakers unprepared.
Inflation and the energy crisis have also been weighing on pharmaceutical companies, affecting supply.
Last year, Centrient Pharmaceuticals, a Dutch producer of active pharmaceutical ingredients, said its plant was producing a quarter lessoutput than in 2021 due to high energy costs. In December, InnoGenerics, another manufacturer from the Netherlands, was bailed out by the government after declaring bankruptcy to keep its factory open.
Commissioner Stella Kyriakides wrote to Greece’s health minister asking him to take into consideration the effects of bans on third countries | Stephanie Lecocq/EPA-EFE
The result, according to Sandoz, one of the largest producers on the European generics market, is an especially “tight supply situation.” A spokesperson told POLITICO that other culprits include scarcity of raw materials and manufacturing capacity constraints.They added that Sandoz is able to meet demand at the moment, but is “facing challenges.”
How are governments reacting?
Some countries are slamming the brakes on exports to protect domestic supplies. In November, Greece’s drugs regulator expanded the list of medicine whose resale to other countries — known as parallel trade — is banned. Romania has temporarily stopped exports of certain antibiotics and kids’ painkillers. Earlier in January, Belgium published a decree that allows the authorities to halt exports in case of a crisis.
These freezes can have knock-on effects. A letter from European Health Commissioner Stella Kyriakides addressed to Greece’s Health Minister Thanos Plevris asked him to take into consideration the effects of bans on third countries. “Member States must refrain from taking national measures that could affect the EU internal market and prevent access to medicines for those in need in other Member States,” wrote Kyriakides.
Germany’s government is considering changing the law to ease procurement requirements, which currently force health insurers to buy medicines where they are cheapest, concentrating the supply into the hands of a few of the most price-competitive producers. The new law would have buyers purchase medicines from multiple suppliers, including more expensive ones, to make supply more reliable. The Netherlands recently introduced a law requiring vendors to keep six weeks of stockpiles to bridge shortages, and in Sweden the government is proposing similar rules.
At a more granular level, a committee led by the EU’s drugs regulator, the European Medicines Agency (EMA), has recommended that rules be loosened to allow pharmacies to dispense pills or medicine doses individually, among other measures. In Germany, the president of the German Medical Association went so far as to call for the creation of informal “flea markets” for medicines, where people could give their unused drugs to patients who needed them. And in France and Germany, pharmacists have started producing their own medicines — though this is unlikely to make a big difference, given the extent of the shortfall.
Can the EU fix it?
In theory, the EU should be more ready thanever to tackle a bloc-wide crisis. It has recently upgraded its legislation to deal with health threats, including a lack of pharmaceuticals. The EMA has been given expanded powers to monitor drug shortages. And a whole new body, the Health Emergency Preparedness and Response Authority (HERA) has been set up, with the power to go on the market and purchase drugs for the entire bloc.
But not everyone agrees that it’s that bad yet.
Last Thursday, the EMA decided not to ask the Commission to declare the amoxycillin shortage a “major event” — an official label that would have triggered some (limited) EU-wide action— saying that current measures are improving the situation.
A European Medicines Agency’s working group on shortages could decide on Thursday whether to recommend that the Commission declares the drug shortages a“major event” — an official label that would trigger some (limited) EU-wide action. An EMA steering group for shortages would have the power to request data on drug stocks of the drugs and production capacity from suppliers, and issue recommendations on how to mitigate shortages.
At an appearance before the European Parliament’s health committee, the Commission’s top health official, Sandra Gallina, said she wanted to “dismiss a bit the idea that there is a huge shortage,” and said that alternative medications are available to use.
And others believe the situation will get better with time. “I think it will sort itself out, but that depends on the peak of infections,” said Adrian van den Hoven, director general of generics medicines lobby Medicines for Europe. “If we have reached the peak, supply will catch up quickly. If not, probably not a good scenario.”
Helen Collis and Sarah-Taïssir Bencharif contributed reporting.
[ad_2]
#Europe #running #medicines
( With inputs from : www.politico.eu )
