Trump signs ‘buy American, hire American' order to end H-1B ‘misuse'

April 19, 2017

Washington, Apr 19: US President Donald Trump issued an executive order on Tuesday curtailing the purported misuse of guest workers visa in a showy, populist, on-the-road gesture ostensibly aimed at protecting American jobs, a move that is expected to moderately affect the Indian infotech industry.

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The order effectively raises the bar for foreign guest workers used by US and Indian companies to do work that American workers were thought to be unwilling or unable to do. Trump and his protectionist supporters say this is not true, and the original goal of the guest worker programme of bringing in highly-qualified foreign workers to do high-end jobs has been subverted by companies bringing in entry-level workers to replace US workers and depress wages.

In his first trip to the blue-collar country that voted for him in droves because of his pledge to protect US jobs, Trump went to a tool factory at Kenosha, Wisconsin, in the Chicago-Milwaukee industrial corridor (and Speaker Paul Ryan's district), to show he intends to live up to his promise to staunch the loss of jobs. There he signed what was called a double-barrelled "Buy American, Hire American" executive order that will tighten guest worker visas such as H-1B, and require American agencies to buy more goods and services from US companies and workers.

The executive order does not impose the moratorium on guest worker visas that Trump had called for during his presidential campaign, much less terminate or curtail the 85,000 H-1B visas every year of which Indians snag more than half. Instead, through a series of administrative recommendations, directives, and changes, including calling for an overhaul of the lottery system used to determine the metrics on which H-1B visas are sponsored, Trump hopes to eliminate what critics of the programme allege is a systematic abuse of the visa regime, particularly by Indian body-shopping companies.

Indeed, the order comes too late to affect this year's 65,000 20,000 H-1B visa quota, petitioning for which opened on April 3, resulting in a lottery that is already underway. The executive order is also not expected to affect other guest worker programmes, such as the H-2B seasonal worker visa used by US farms and agriculturists and Trump's own resorts. There is no word yet about the H-4 visa that allowed spouses of H-1B professionals to work in the US under certain conditions.

But the executive order takes aim at winnowing out poorly-qualified, less-skilled workers — many of them seeking immigration opportunities — of the kind India's mediocre engineering colleges churn out by the thousands, and who are brought into the US via dodgy immigrant-run colleges in America and body-shoppers who procure guest worker visas for them for entry level jobs.

US officials who briefed journalists on the background of the US president's executive order said 80 per cent of petitioners who enter the US under the current visa programme are paid less than the median wage for workers in their fields, suggesting that they not only displaced American workers but also undercut wages. They also maintained that the US graduates about twice as many STEM students each year as find jobs in STEM fields.

But Indian IT majors have contested many of these numbers and assumptions, while acknowledging that there may be a few dodgy body-shopping outfits that may have sullied the market, pointing out that more than 50 per cent of graduating STEM students in the US are from the immigrant/foreign-born pools, and populist measures cannot hide the genuine shortage of skilled workers for long. India's IT majors also challenge the allegations that H-1B workers are underpaid, saying US law forbids this.

"By law, we are an equal employment, equal opportunities employer. Even when we have expats coming into the country, their average salary is benchmarked to be higher than the 50th quartile, so, on an average, they get more than the average of the population. So the assumption that they are actually underpaid is factually incorrect, because they cannot be," TCS CEO Rajesh Gopinathan told PTI.

While some experts believe Trump's executive order could potentially allow more high-skilled foreign engineers to work in the US — although they will have to jump through the hoops to prove their skill levels given more rigorous certification requirements — others are warning that the upshot of the executive order will accelerate outsourcing.

"If you are not going to allow people to come in to do the jobs, then the jobs will go out where they can be done," another Indian industry executive who asked not be named said, while maintaining that the effect on the Indian IT industry will not be substantial.

TCS, Wipro, Infosys among Indian majors have embarked on major STEM education programmes in the US, working with colleges and high schools while employing more and more US citizens, to overcome the stigma arising from charges of displacing American workers.

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April 11,2020

Washington, Apr 11: China is considered a developing country, make the United States too a developing one, US President Donald Trump said on Friday, alleging that Beijing has taken advantage of his country.

"China has been unbelievably taken advantage of us and other countries. You know, for instance, they are considered a developing nation. I said well then make us a developing nation too,” Trump told reporters at his daily White House news conference on coronavirus.

The president was responding to a question on China.

“They get big advantages because they are a developing nation. India, a developing nation. The United States is a big developed nation. Well, we have plenty of development to do,” he said.

Reiterating that United States was taken advantage of by the World Trade Organization, Trump said the Chinese economy started booming after it joined WTO with the help of the US.

“If you look at the history of China, it was only since they went into the WTO that they became a rocket ship with their economy. They were flatlined for years and years,” he said.

“Frankly, for many, many decades. And it was only when they came into the WTO that they became a rocket ship because they took advantage of all -- I'm not even blaming them. I'm saying how stupid were the people that stood here and allowed it to happen,” he said.

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The Trump Administration will now allow that to happen, he said.

“If they don't treat us fairly, will leave. But now we're starting to win cases,” he said.

Alleging that China has taken advantage of the United States for 30 years, he said, China has taken advantage of the US through WTO and using rules that are unfair to the United States.

"They should have never been allowed it, this should have never been allowed to happen", he added.

“When China joined and was allowed to join under those circumstances the WTO, that was a very bad day for the United States because they have rules and regulations that were far different and far easier than our rules and regulations,” he said.

“Plus. They took advantage of them down to the last. China took advantage of them like few people would even think to take advantage of them and again they are considered right a developing nation,” he added.

The United States, he rued, is not considered a developing nation.

“The were given advantages (for being a developing nation). For many years China has ripped off the United States. Then I came along and right now, as you know, China is paying 25 percent," said Trump, adding that the US is now gaining "billions and billions and billions of dollars in tariffs from China”.

The US is not paying, he asserted.

“Not every country is China but China would devalue their currency and they would also pour out money and they essentially were paying most of those tariffs not us,” he said.

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February 12,2020

Feb 12: China on Wednesday reported another drop in the number of new cases of a viral infection and 97 more deaths, pushing the total dead past 1,100 as postal services worldwide said delivery was being affected by the cancellation of many flights to China.

The National Health Commission said 2,015 new cases had been reported over the last 24 hours, declining for a second day. The total number of cases in mainland China reached 44,653, although many experts say a large number of others infected have gone uncounted.

The additional deaths raised the mainland toll to 1,113. Two people have died elsewhere, one in Hong Kong and one in the Philippines.

In the port city of Tianjin, just southeast of Beijing, a cluster of cases has been traced to a department store in Baodi district. One-third of Tianjin’s 104 confirmed cases are in Baodi, the Xinhua state news agency reported.

A salesperson working in the store’s small home appliance section became the first individual in the cluster to be diagnosed on Jan. 31, Xinhua said. The store was already closed at that point, then disinfected on Feb. 1. Nevertheless, several more diagnoses soon followed.

The next to have their infections confirmed were also salespeople at the store. They had not visited Wuhan recently and, with the exception of one married couple, the patients worked in different sections of the store and did not know one another, according to Xinhua.

Japan’s Health Ministry said that 39 new cases have been confirmed on a cruise ship quarantined at Yokohama, bringing the total to 174 on the Diamond Princess.

The U.S. Postal Service said that it was “experiencing significant difficulties” in dispatching letters, parcels and express mail to China, including Hong Kong and Macau.

Both the U.S. and Singapore Post said in notes to their global counterparts that they are no longer accepting items destined for China, “until sufficient transport capacity becomes available.”

The Chinese mail service, China Post, said it was disinfecting postal offices, processing centers and vehicles to ensure the virus doesn’t spread via the mail and to protect staff.

It said the crisis is also impacting mail that transits China to other destinations including North Korea, Kazakhstan, Kyrgyzstan, Mongolia, Tajikistan, Turkmenistan, Uzbekistan and Vietnam.

The World Health Organization has named the disease caused by the virus as COVID-19, avoiding any animal or geographic designation to avoid stigmatization and to show the illness comes from a new coronavirus discovered in 2019.

The illness was first reported in December and connected to a food market in the central Chinese city of Wuhan, where the outbreak has largely been concentrated.

Zhong Nanshan, a leading Chinese epidemiologist, said that while the virus outbreak in China may peak this month, the situation at the center of the crisis remains more challenging.

“We still need more time of hard working in Wuhan,” he said, describing the isolation of infected patients there a priority.

“We have to stop more people from being infected,” he said. “The problem of human-to-human transmission has not yet been resolved.”

Without enough facilities to handle the number of cases, Wuhan has been building prefabricated hospitals and converting a gym and other large spaces to house patients and try to isolate them from others.

China’s official media reported Tuesday that the top health officials in Hubei province, of which Wuhan is the capital, have been relieved of their duties. No reasons were given, although the province’s initial response was deemed slow and ineffective. Speculation that higher-level officials could be sacked has simmered, but doing so could spark political infighting and be a tacit admission of responsibility.

The virus outbreak has become the latest political challenge for the party and its leader, Xi Jinping, who despite accruing more political power than any Chinese leader since Mao Zedong, has struggled to handle crises on multiple fronts. These include a sharply slowing domestic economy, the trade war with the U.S. and pushback on China’s increasingly aggressive foreign policies.

China is struggling to restart its economy after the annual Lunar New Year holiday was extended to try to curb the spread of the virus. About 60 million people are under virtual quarantine and many others are still working at home.

In Hong Kong, the diagnosis of four people living in an apartment building prompted worried comparisons with the deadly SARS pandemic of 17 years ago.

More than 100 people were evacuated from the building after a 62-year-old woman diagnosed with the virus was found living 10 floors directly below a man who was earlier confirmed with the virus.

Health officials called it a precautionary measure and sought to assuage fears of an epidemic, dismissing similarities to the SARS community outbreak at the Amoy Gardens housing estate in 2003.

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April 17,2020

Beijing, Apr 17: China denied Friday it had covered up the extent of its coronavirus outbreak, as it responded to growing questions from Western powers led by the United States.

A foreign ministry spokesman acknowledged that the virus's rapid spread had contributed to undercounting that resulted in China raising its death toll earlier Friday, but he added "there has never been any concealment, and we'll never allow any concealment."

The allegations China is too close to the World Health Organization (WHO), were an attempt at "smearing" Beijing, Zhao said.

US President Donald Trump has questioned China's handling of the pandemic and whether it had been completely transparent since the virus emerged in the central city of Wuhan late last year.

On Thursday, British Foreign Secretary Dominic Raab and French President Emmanuel Macron also expressed doubts about China's virus response.

These doubts were spotlighted again on Friday when authorities in Wuhan, which has borne the brunt of Chinese deaths, abruptly raised its death toll by 50 percent -- or 1,290 deaths -- to a new total of 3,869.

That also pushed the nationwide death toll up sharply to 4,632, based on official national data released earlier in the day.

Wuhan authorities cited several reasons for the missed cases, including that the city's medical staff were overwhelmed in the early days as infections climbed, leading to "late reporting, omissions or mis-reporting".

Zhao said such miscounting was to be expected in the initial stages of a major disease outbreak.

US President Donald Trump -- under fire himself for initially denying the seriousness of the pandemic -- has accused the WHO of doing the same and being too trusting of China's assurances over the outbreak.

On Tuesday he announced a suspension of US funding to the world body.

Asked about the US allegations, Zhao defended the WHO and China.

"I think they are all smearing China and cooking up stories about China," he said, without specifying which countries he was referring to.

China has largely brought the contagion under control domestically via tough measures including the unprecedented lockdown of Wuhan and tens of millions of people in surrounding areas, but not before it spread worldwide.

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