Don't open 'pandora's box' in Middle East: China warns US over Iran issue

Washington, May 6: At a time when the coronavirus pandemic has squeezed them, multi-national companies in America are laying off workers while paying cash dividends to their shareholders. Thus making the workers bear the brunt of the sacrifices while the shareholders continue to collect.

The Washington Post said in one of its reports that five big American companies have paid a combined USD 700 million to shareholders while cutting jobs, closing plants and leaving thousands of their workers filing for unemployment benefits.

Since the pandemic was declared an emergency, Caterpillar has suspended operations at two plants and a foundry, Levi Strauss has closed stores, and toolmaker Stanley Black & Decker has been planning layoffs and furloughs.

Steelcase, an office furniture manufacturer, and World Wrestling Entertainment have also shed employees.

Executives of those companies told the Post that the layoffs support the long-term health of their companies, and often the executives are giving up a piece of their salaries. Furloughed workers can apply for unemployment benefits.

But distributing millions of dollars to shareholders while leaving many workers without a paycheck is unfair, critics argue, and belies the repeated statements from executives about their concern for employees' welfare during the coronavirus crisis.

Caterpillar, for example, announced a USD 500 million distribution to shareholders April 8, about two weeks after indicating that operations at some plants would stop. The company however declined to divulge how many workers are affected.

"We are taking a variety of actions globally, but we aren't going to discuss the number of impacted people," spokeswoman of the company, Kate Kenny, said in a reply to an email by the Post.

This spate of dividends is also likely to revive long-standing debates about economic rewards.

"There are no hard-and-fast rules about this," said Amy Borrus, deputy director of the Council of Institutional Investors, a group that argues for shareholder rights and represents pension funds and other long-term investors.

Many large US companies choose to issue a regular, quarterly dividend to shareholders, often increasing it, and they boast about these payments because they help keep the share price higher than it might otherwise be. Those companies might be reluctant to announce that they are cutting or suspending their dividend during a crisis, Borrus was further quoted as saying.

But "companies have to be mindful of the optics of paying dividends if they're laying off thousands of workers," she added.

On March 26, Caterpillar had announced that because of the pandemic, it was "temporarily suspending operations at certain facilities." Two plants, in East Peoria, Ill., and Lafayette, Ind., were coming to a halt, as well as a foundry in Mapleton, Ill., according to news reports.

"We are taking a variety of actions at our global facilities to reduce production due to weaker customer demand, potential supply constraints and the spread of the covid-19 pandemic and related government actions," Kenny said via email.

"These actions include temporary facility shutdowns, indefinite or temporary layoffs," she added.

Similarly, Levi Strauss announced April 7 that the company would stop paying store workers, and about 4,000 are now on furlough. On the same day, the company announced that it was returning USD 32 million to shareholders.

"As this human and economic tragedy unfolds globally over the coming months, we are taking swift and decisive action that will ensure we remain a winner in our industry," Chip Bergh, president and chief executive of the company, also told the Post.

Stanley Black & Decker announced on April 2 that it was planning furloughs and layoffs because of the pandemic. Two weeks later, it issued a dividend to shareholders of about USD 106 million.

The notion that a company's primary purpose is to serve shareholders gained prominence in the 1980s but has come under attack in recent years, even from business executives, the newspaper reported.

Corporate decisions to suspend dividends and buybacks are complex, however, and it is difficult to know whether these suspensions of dividend and buyback programs were motivated by a desire to conserve cash in anticipation of bad times, and how much they are prompted by a sense of obligation to employees.

Over recent decades, the mandate to "maximize shareholder value" has become orthodoxy, for many, and it is often unclear what motivates companies to pare dividends or buybacks for shareholders, said William Lazonick, an emeritus economics professor at the University of Massachusetts at Lowell, who has been one of the leading critics of companies that distribute cash to shareholders through stock buybacks and dividends rather than reinvesting the profits into employees, innovation and production.

Dubai/Washington, Jan 7: Iran's Supreme Leader Ayatollah Ali Khamenei wept in grief with hundreds of thousands of mourners thronging Tehran's streets on Monday for the funeral of military commander Qassem Soleimani, killed by a U.S. drone on U.S. President Donald Trump's orders.

The coffins of General Qassem Soleimani and Iraqi militia leader Abu Mahdi al-Muhandis, who also died in Friday's attack in Baghdad, were draped in their national flags and passed from hand to hand over the heads of mourners in central Tehran.

Responding to Trump's threats to hit 52 Iranian sites if Tehran retaliates for the drone strike, Iran's President Hassan Rouhani pointedly wrote on Twitter: "Never threaten the Iranian nation." And Soleimani's successor vowed to expel U.S. forces from the Middle East in revenge.

Khamenei, 80, led prayers at the funeral, pausing as his voice cracked with emotion. Soleimani, 62, was a national hero in Iran, even to many who do not consider themselves supporters of Iran's clerical rulers.

Aerial footage showed people, many clad in black, packing thoroughfares and side streets in the Iranian capital, chanting "Death to America!" - a show of national unity after anti-government protests in November in which many demonstrators were killed.

The crowd, which state media said numbered in the millions, recalled the masses of people that gathered in 1989 for the funeral of the Islamic Republic's founder, Ayatollah Ruhollah Khomeini. Soleimani, architect of Iran's drive to extend its influence across the Middle East, was widely seen as Iran's second most powerful figure behind Khamenei.

His killing of Soleimani has prompted concern around the world that a broader regional conflict could flare.

Trump on Saturday vowed to strike 52 Iranian targets, including cultural sites, if Iran retaliates with attacks on Americans or U.S. assets, and stood by his threat on Sunday, though American officials sought to downplay his reference to cultural targets. The 52 figure, Trump noted, matched the number of U.S. Embassy hostages held for 444 days after the 1979 Iranian Revolution.

Rouhani, regarded as a moderate, responded to Trump on Twitter.

"Those who refer to the number 52 should also remember the number 290. #IR655," Rouhani wrote, referring to the 1988 shooting down of an Iranian airline by a U.S. warship in which 290 were killed.

Trump also took to Twitter to reiterate the White House stance that "Iran will never have a nuclear weapon" but gave no other details.

'ACTIONS WILL BE TAKEN'

General Esmail Ghaani, Soleimani's successor as commander of the Quds Force, the elite unit of Iran's Revolutionary Guards charged with overseas operations, promised to "continue martyr Soleimani's cause as firmly as before with the help of God, and in return for his martyrdom we aim to rid the region of America."

"God the Almighty has promised to take martyr Soleimani's revenge," he told state television. "Certainly, actions will be taken."

Other political and military leaders have made similar, unspecific threats. Iran, which lies at the mouth of the key Gulf oil shipping route, has a range of proxy forces in the region through which it could act.

Iran's demand for U.S. forces to withdraw from the region gained traction on Sunday when Iraq's parliament passed a resolution calling for all foreign troops to leave the country.

Iraqi caretaker Prime Minister Abdel Abdul Mahdi told the U.S. ambassador to Baghdad on Monday that both nations needed to implement the resolution, the premier's office said in a statement. It did not give a timeline.

The United States has about 5,000 troops in Iraq.

Soleimani built a network of proxy militia that formed a crescent of influence - and a direct challenge to the United States and its regional allies led by Saudi Arabia - stretching from Lebanon through Syria and Iraq to Iran. Outside the crescent, Iran nurtured allied Palestinian and Yemeni groups.

He notably mobilised Shi'ite Muslim militia forces in Iraq that helped to crush ISIS, the Sunni militant group that had seized control of swathes of Syria and Iraq in 2014.

Washington, however, blames Soleimani for attacks on U.S. forces and their allies.

The funeral moves to Soleimani's southern home city of Kerman on Tuesday. Zeinab Soleimani, his daughter, told mourners in Tehran that the United States would face a "dark day" for her father's death, adding, "Crazy Trump, don't think that everything is over with my father's martyrdom."

NUCLEAR DEAL

Iran stoked tensions on Sunday by dropping all limitations on its uranium enrichment, another step back from commitments under a landmark deal with major powers in 2015 to curtail its nuclear programme that Trump abandoned in 2018.

In response, European signatories may launch a dispute resolution process against Iran this week that could lead to a renewal of the United Nations sanctions that were lifted as part of the deal, European diplomats said on Monday.

Diplomats said France, Britain and Germany could make a decision ahead of an EU foreign ministers' meeting on Friday that would assess whether there were any ways to salvage the deal.

After quitting the deal, the United States imposed new sanctions on Iran, saying it wanted to halt Iranian oil exports, the main source of government revenues. Iran's economy has been in freefall as the currency has plunged.

Trump adviser Kellyanne Conway said on Monday that he was still confident he could renegotiate a new nuclear agreement "if Iran wants to start behaving like a normal country."

Tehran has said Washington must return to the existing nuclear pact and lift sanctions before any talks can take place.

The United States advised American citizens in Israel and the Palestinian territories to be vigilant, citing the risk of rocket fire amid heightened tensions. As a U.S. ally against Iran, Israel is concerned about possible rocket attacks from Gaza, ruled by Iranian-backed Palestinian Islamists, or major Iran proxy Hezbollah in Lebanon.

Democratic critics of Trump have said the Republican president was reckless in authorising the strike, with some saying his threat to hit cultural sites amounted to a vow to commit war crimes. Trump also threatened sanctions against Iraq and said Baghdad would have to pay Washington for an air base in Iraq if U.S. troops were required to leave.

Beijing, May 9: Mounting a strong defence of the ruling Communist Party of China, President Xi Jinping has said the COVID-19 fight has once again shown that the CPC leadership and the country's socialist political system can overcome any challenge.

Xi's comments came as China faced global criticism for its initial inaction to act against the novel coronavirus, which according to Chinese officials emerged in the central Chinese city of Wuhan in December last year.

Pressure is also mounting on Beijing to agree for an international probe on the origins of the vicious virus, including from the Wuhan Institute of Virology (WIV), as claimed by the US leadership.

China curbed the spread of the coronavirus in over a month and brought COVID-19 under control at its first epicentre in Wuhan in about three months, Xi, also the General Secretary of the CPC, said at a symposium held on Friday to get suggestions from non-ruling Communist Party of China (CPC) parties on COVID-19 prevention and control.

He termed the curbing of the COVID-19 pandemic as "hard-won achievements" for the world's most populous country and the second-biggest economy.

The COVID-19 fight has once again shown that the CPC leadership, China's socialist system and its governance system can overcome any challenge and make big contributions to the progress of human civilisation, he said.

Xi said China had basically curbed the spread of the virus in over one month, managed to bring the daily number of new domestically-transmitted cases down to single digits in about two months, and secured decisive achievements in protecting epicentres Wuhan and Hubei province in about three months.

"For a huge country with 1.4 billion people, these are hard-won achievements," he said

Besides the top CPC officials, the symposium was attended by members of the central committees of non-CPC parties in China, the All-China Federation of Industry and Commerce, and persons without party affiliation.

The speakers at the symposium praised the Chinese leadership in handling the crisis, saying it fully demonstrated the political advantage of China's socialist system and showed that China was a major responsible country.

Xi, who is also the head of the People's Liberation Army, praised China's one-party political system governed by the CPC.

His comments on the country's political system came as Beijing is also defending the role of the CPC as US President Donald Trump and Secretary of State Mike Pompeo have blamed the ruling party for not being transparent in the fight against the pandemic.

Both Trump and Pompeo have been pressing Beijing to allow American experts for a probe on whether the virus emerged from the WIV, China's premier research lab where viruses of different types are reportedly researched.

At the symposium attended by the top CPC officials, Xi's leadership came for praise for successfully handling the situation, the state-run Xinhua news agency reported.

"Attendees noted the major strategic achievements in the COVID-19 fight under the strong leadership of the CPC Central Committee with Comrade Xi Jinping at the core," the report said.

The meeting was held amid reports of murmurs of internal criticism within the CPC about Xi's handling of the coronavirus crisis.

While China's move of handling the coronavirus from January 23 by locking down Hubei province and its capital Wuhan to prevent the spread of the virus and curbing it by deploying 42000 medical personnel has been praised, Beijing is criticised for its slow reaction after it emerged in December last year.

China used less than a week to identify the full genome sequence of the novel coronavirus and isolate the virus strain, produced various testing kits and swiftly selected a number of effective drugs and treatments. Different types of vaccines have also entered clinical trials.

President Xi said during the COVID-19 fight, China upheld the centralised and unified leadership of the CPC and concentrated the nation's best doctors, the most advanced equipment and the most needed resources to treat patients, with all treatment expenses covered by the state.

It managed to maximise the testing and cure rates while minimising the infection and fatality rates.

As of Friday, the COVID-19 death toll in China remained at 4,633 with no new fatalities reported for several days while the total number of cases stood at 82,887. In contrast, Chinese officials point out the death toll in the US which has crossed 75,000 with over 1.2 million cases, besides the mounting global toll.

Almost all countries in the world have been under lockdown for weeks to control the spread of the virus.

Xi called for mobilising the whole society, leveraging the institutional strength of concentrating resources to get things done and tapping the composite national strength as well as closely relying on science and technology.

On international cooperation, Xi said China had helped countries and international organisations to the best of its ability, demonstrating the nation's sense of responsibility as a major and responsible country.

Xi also stressed fixing the shortcomings in the country's major epidemic prevention and control mechanism and for the national public health system to raise the ability to deal with major public health emergencies.

He emphasised on targeted and effective measures to guard against the importation of cases and prevent a resurgence of the epidemic.