WASHINGTON (Reuters) -The Trump administration on Monday strengthened an executive order barring U.S. investors from buying securities of alleged Chinese military-controlled companies, following disagreement among U.S. agencies about how tough to make the directive.

The Treasury Department published guidance clarifying the executive order, released in November, would apply to investors in exchange-traded funds and index funds as well as subsidiaries of Chinese companies designated as owned or controlled by the Chinese military.

The “frequently asked questions” release, posted on the Treasury website on Monday, came after Reuters and other news outlets reported that a debate was raging within the Trump administration over the guidance. The State Department and the Department of Defense (DOD) had pushed back against a bid by Treasury Department to water down the executive order, a source said.

Specifically, some media outlets reported that Treasury was seeking to exclude Chinese companies’ subsidiaries from the scope of the White House directive, which bars new purchases of securities of 35 Chinese companies that Washington alleges are backed by the Chinese military, starting in November 2021.

The guidance released on Monday specifies that the prohibitions apply to “any subsidiary of a Communist Chinese military company, after such subsidiary is publicly listed by Treasury.” It added that the agency “intends to list” publicly traded entities that are 50% or more owned by a Chinese military company or controlled by one.

“Treasury’s published FAQ represents a clear victory for the U.S. security community in its determined effort to preserve strong capital markets sanctions associated with [the executive order] — the first of their kind,” said Roger Robinson, a former White House official who supports curbing Chinese access to U.S. investors.

The November executive order sought to give teeth to a 1999 law, which mandated that the Department of Defense compile a list of Chinese military companies. The Pentagon, which only complied with the mandate this year, has so far designated 35 companies, including oil company CNOOC Ltd and China’s top chipmaker, Semiconductor Manufacturing International Corp.

Since the November order, Index providers have already begun shedding some of the designated companies from their indexes.

Additional Reporting by Humeyra Pamuk in Washington and Karen Freifeld in New York; Editing by Matthew Lewis and Stephen Coates

Foreign direct investment in the Russian Far East has grown significantly since 2013, according to Deputy Prime Minister Yuri Trutnev. Special economic zoning and concessions have stoked investor interest in the region.

“When we started working on the development of the Far East in 2013, the share of foreign direct investment was just two percent. Today it accounts for 32 percent, which is a 16-fold increase,” Trutnev told Rossiya 24 TV channel on Monday. “The volume of investments has already exceeded 1.3 trillion rubles ($17.6 billion).”

The deputy PM added that the volume of private investment in the Far East is expected to grow to five trillion rubles (over $67 billion).

According to him, more than 100 billion rubles ($1.3 billion) of budget funds are being invested within the framework of a program for social development, and more than 1,000 social facilities are under construction.

Some 18 priority development territories, as well as the Vladivostok Free Port, have been created under the Far East’s development program. Hundreds of foreign companies have already obtained resident status.

The priority development territories in the Russian Far East provide the country’s citizens as well as foreigners with tax and customs concessions. In 2017, Russia lifted Far East visa requirements for 18 countries to boost tourism and develop the region.

As president of Mongolia, Khaltmaagiin Battulga has placed great store by his intention to purge local corruption and the holding by the country’s elite of assets in offshore tax havens.

Battulga made it a central plank of his election campaign that when he became president he would move swiftly and decisively to punish those responsible and to repatriate funds and investments held in offshore tax havens.

Since becoming president in 2017, however, he has been noticeably slow to do much to make this happen. The reason for his reluctance may be explained by the revelation that he and his family have close involvement in an offshore company.

In April 2017, Mongolia amended the law on conflicts of interest which strictly prohibits government officials and their close relatives and associates from owning property or companies offshore. The penalty for violation is the loss of office. Under that law, Singapore is such a designated offshore zone.

It can be disclosed that Genco Holding, a Singapore registered company, is 50 percent owned by Battulga through his daughter Namuun, and the remaining 50 percent is owned by Battulga’s investment manager Billy Lim via his son Dennis. Namuun Battulga and Dennis Lim are directors of the company.

Singapore documents show that until 2007, Battulga also held a senior position at Genco Holding. At that time, he was an elected member of Parliament and should not have been engaging in any business activity, especially as an officer of a company based offshore.

Battulga was a shareholder in Genco Holding and transferred his stake to his daughter. According to Singapore documents, Genco Holding was established with a share capital of $1 million. Genco is described as a wholesale trader in a variety of goods, including electronic components.

In Mongolia, Battulga’s reputation is that of a highly successful businessman and strongman. A sambo wrestling champion, he loves his tough-guy image, sporting a fedora and naming his Mongolian company Genco, the same title as the Corleone family front business in The Godfather mafia epic – a favourite of Battulga’s.

Genco grew on the back of the privatisation of state interests, acquiring hotels and food production factories. The company also moved into taxi services, retailing, lotteries, night clubs, and restaurants.

Battulga founded another company, Camex, in Mongolia, and its subsidiaries obtained 17 valuable licenses for coal, gold, and copper. Battulga owned 90 percent of Camex, and Batsukh Yadamsuren, or as he is widely known, Ard Batsukh, owned the other 10 percent. In 2007, Battulga transferred his Camex stock to Namuun and to his sister, Tsendsuren Khaltmaa.

This was all declared publicly in Mongolia. What was not known until now, however, was that ownership of the Mongolia Camex was in fact soon transferred to another Camex company, registered in Singapore. This Camex leases offices from Genco Holding and operates from the same Singapore address.

Camex in Singapore is owned by a company called Well Delight, located in another offshore haven, the British Virgin Islands. Well Delight in turn belongs to two other BVI companies, Best State and Sino Access. The shareholders of these BVI companies are Mashbat Bukhbat, secretary-general of the Judo Federation where Battulga was president, Ard Batsukh, and Hui Shin Lim Celestina, daughter of Billy Lim. The two parent offshore companies were later sold to another BVI company called Brave Lion. The purpose of this offshore web is unclear – except to make it harder to penetrate and to hide the identity of the ultimate owner.

In 2010, it was reported by the Hong Kong Stock Exchange that the Tugrug Nuur coal deposit in Mongolia had been sold by Battulga for $250 million to Chinese-owned Ming Shin Waterworks Holdings Limited, registered in the Cayman Islands. Who is behind Ming Shin?

The existence of a Battulga-owned firm in Singapore is bound to provoke questions and considerable anger in Mongolia. At the same time, he may want to show just how much due diligence he did regarding the destination of $250 million from the sale of one of the country’s natural assets.

Ulaanbaatar /MONTSAME/ Technology and equipment upgrades are underway at Baganuur and Shivee-Ovoo coal mines under the “Erdenes Mongol” LLC with a view to ensuring reliable and normal operations of the coal mines, electricity source suppliers in the country.

On December 24, Minister of Finance Ch.Khurelbaatar and Director of Infrastructure and Environment Finance Group of the Japan Bank for International Cooperation (JBIC) M.Tanimoto established a financing agreement of MNT 37.5 billion virtually to increase capacity of machinery and equipment of “Baganuur’ and “Shivee Ovoo” JSCs.

Financing of the loan with low-interest rate will enable to use Japanese technology and equipment, supply mining equipment to the abovementioned two companies as well as to establish Investment Fund in partnership with JBIC and make investment in projects to run by subsidiary and associated companies of “Erdenes Mongol’ LLC.

With funding of the export loan by the JBIC, first phase of renovation has been made this year by procuring 20 pieces of equipment worth USD 18.3 million.

Baganuur and Shivee-Ovoo coal mines are going under largest technical renovation after 22 years since the first renovation made in 1998 with soft loan of the World Bank and Japan within “Mongol coal” project.

16 new cases of COVID-19 were confirmed in Mongolia over the past day, all new cases were found in Ulaanbaatar, Head of Surveillance Department of the National Center for Communicable Diseases A.Ambaselmaa said on Dec 28.

A total of 8,894 PCR tests for coronavirus were conducted nationwide.

According to the Ministry of Health, the total confirmed cases of coronavirus in Mongolia reached 1,137, including 711 recoveries.

416 are being treated at hospitals, no deaths were reported.

Ulaanbaatar /MONTSAME/ A geological exploration team from “Erdenes Silver Resource” LLC of “Erdenes Mongol” LLC has successfully conducted exploration to determine gold reserves that met international quality standard, increasing gold reserve of Treasury Fund of Mongolia by 53.14 tons.

This is a cooperation result of Mongolian geologists, scholars and researchers of mining sector.

The geological research team of “Erdenes Silver Resource” LLC has conducted the exploration to determine gold reserve for four months as developing proper working plan and collaborating with the Ministry of Mining and Heavy Industry, National Geological Service, Geological Research Center, Geological Central Laboratory, School of Geology and Mining, “Khanlab” LLC, “Geoanalytic” LLC, “Lend Test” LLC and experts P.Batchuluun and B.Baldorj.

By the Government resolution, the Mineral Resources and Petroleum Authority granted exploration license to “Erdenes Silver Resource" LLC on August 27, 2020 on 22641,51 hectares in a place called Ovoot khyar (XV-21670) located in Tsogttsetsii soum of Umnugobi aimag.

On the edge of Victoria, south-east to Melbourne lies the small country town of Yarram. With a population of just over 2000 people, Yarram is now becoming known for its extraordinary murals, titled ‘Heesco Town’, designed by street-artist Khürelbaataryn Khosnaran, better known as Heesco.

Born and raised in Ulaanbaatar, Mongolia, Heesco always had a love for painting and drawing. He recalls being 13-14, living in Poland, exploring fine art galleries, and marvelling at the work of great painting masters.

Providing life to dull canvases, Heesco’s unique style is also influenced by comic books and heavy metal album covers.

He says, “[I was drawn to the] freedom of art.”

“I liked the idea of the career of an artist. They are free to do whatever they want to and express any kind of ideas and opinions.”

Heesco says that art is something he “cannot go without” and that finding a career in art has been a great joy in his life.

Hiromi Tango: An extraordinary Japanese-Australian artist

As with his work on ‘Heesco Town’, Heesco admits there is something special about working for different communities and seeing how his art can completely change the environment.

“Especially as my work is public and outside, it belongs to everyone,” Heesco says, adding, “even if it changes one person’s day then it is worth it.”

It took a while before Heesco incorporated the beauty of Mongolian culture in his work.

He says, “I was creating graffiti and hip-hop characters in traditional Mongolian dress. It was interesting to match these different, opposite cultures and create such visual mashups.”

“Not many people know about Mongolian history, despite there being centuries and centuries of material there. It never takes me long to find something new,” he adds.

“We are very proud of Heesco, a proud Mongolian Australian, and are working closely with him in support of his artistic talents as well as promoting Mongolia in Australia. There is a lot to learn about Mongolian culture and Heesco has put Mongolia on the map with a unique style of street art. He is an example of what you can achieve if you put your mind to it,”

– said His Excellency Chuluunhuu Batlai Ambassador of Mongolia to Australia.

Heesco’s murals are joyous, filled with vibrancy and colour. One of his signature works- a collaboration with other artists depicting former Prime Minister Malcolm Fraser- represents values of unity that Heesco feels strongly about.

He says that at the time he made this mural, he had been creating many works depicting political figures in a more negative light.

“It occurred to me that it is easy to attack those people and criticise them,” Heesco says, “I wanted to do something that was more positive.”

While Heesco was working on murals in Yarram for a friend, local farmer Eric Greenaway suggested that he make several more murals for the town and title the project ‘Heesco Town’.

Heesco says that this project has introduced an abundance of tourism into the area; something that has helped the community immensely following the bushfires and the impact of the pandemic on the area.

“People started coming up to me, telling me different stories,” Heesco says.

“[The murals are a] collaboration between local businesses, residents and myself. Very quickly all sorts of stories started to emerge.”

‘Heesco Town’ is unique and meaningful and continues to shape the local identity of Yarram.

Heesco says, “it is good to see how it has changed the town, but I would not be able to do it without the locals.”

by:

KELLIE MALONEY

Kellie is studying a Bachelor of Communications and a Bachelor of Arts in International Studies at UTS. She has a passion for travelling and experiencing other cultures through music, film, art and food.

China will overtake the US to become the world's largest economy by 2028, five years earlier than previously forecast, a report says.

The UK-based Centre for Economics and Business Research (CEBR) said China's "skilful" management of Covid-19 would boost its relative growth compared to the US and Europe in coming years.

Meanwhile India is tipped to become the third largest economy by 2030.

The CEBR releases its economic league table every year on 26 December.

Although China was the first country hit by Covid-19, it controlled the disease through swift and extremely strict action, meaning it did not need to repeat economically paralysing lockdowns as European countries have done.

As a result, unlike other major economies, it has avoided an economic recession in 2020 and is in fact estimated to see growth of 2% this year.

The US economy, by contrast, has been hit hard by the world's worst coronavirus epidemic in terms of sheer numbers. More than 330,000 people have died in the US and there have been some 18.5 million confirmed cases.

The economic damage has been cushioned by monetary policy and a huge fiscal stimulus, but political disagreements over a new stimulus package could leave around 14 million Americans without unemployment benefit payments in the new year.

US and Chinese economies 2010-2035. Gross domestic product in $US trillions (constant prices). Chart shows Chinese and US economic output over time with China overtaking the US around 2028 .

"For some time, an overarching theme of global economics has been the economic and soft power struggle between the United States and China," says the CEBR report. "The Covid-19 pandemic and corresponding economic fallout have certainly tipped this rivalry in China's favour."

The report says that after "a strong post-pandemic rebound in 2021", the US economy will grow by about 1.9% annually from 2022-24 and then slow to 1.6% in the years after that.

By contrast the Chinese economy is tipped to grow by 5.7% annually until 2025, and 4.5% annually from 2026-2030.

China's share of the world economy has risen from just 3.6% in 2000 to 17.8% now and the country will become a "high-income economy" by 2023, the report says.

The Chinese economy is not only benefitting from having controlled Covid-19 early, but also aggressive policymaking targeting industries like advanced manufacturing, said CEBR deputy chairman Douglas McWilliams.

"They seem to be trying to have centralised control at one level, but quite a free market economy in other areas," he told the BBC. "And it's the free market bit that's helping them move forward particularly in areas like tech."

But the average Chinese person will remain far poorer in financial terms than the average American even after China becomes the world's biggest economy, given that China's population is four times bigger.

In other predictions:

The post-Brexit UK economy will grow by 4% annually from 2021-25 and 1.8% annually from 2026-30 (after shrinking in 2020)

India had overtaken the UK as the fifth-biggest economy in 2019 but has slipped behind it again due to the pandemic's impact. It won't take over again until 2024, the CEBR says

India's economy will go on to overtake Germany in 2027 and Japan in 2030

Mongolia reported 39 more COVID-19 cases in the past 24 hours after 14,646 tests had been conducted across the country, the National Center for Communicable Diseases (NCCD) said Sunday.

Thirty-eight of the new cases were locally transmitted or reported in the capital city of Ulan Bator, Amarjargal Ambaselmaa, head of the NCCD's Surveillance Department, said at a press conference.

The other one is a Mongolian national who has recently returned home from Europe on a chartered flight, said Ambaselmaa.

The country now has 1,121 confirmed cases, including 678 locally transmitted ones, according to the center.

A total of 711 patients have recovered so far with no deaths reported. Enditem

Ulaanbaatar /MONTSAME/. MONTSAME News Agency took an interview from Ambassador Extraordinary and Plenipotentiary of the Republic of India to Mongolia M.P.Singh on the occasion of the 65th anniversary of the establishment of diplomatic relations between the two countries.

-What was your first impression of Mongolia?

-My first impression on Mongolia in short words is SIMPLY STUNNING & BEAUTIFUL. Mongolia, with its captivating scenic surroundings, pure and untamed nature with some exceptionally friendly and hospitable people, beacons and attracts you instantly. I would call Mongolia as a Hidden Tourist Gem and adventurers’ paradise that has vast & incredible landscapes, snow covered mountains, golden sand dunes, heavenly lakes interspersed with Buddhist chanting in Monasteries. And I must hasten to add that the horses, camels, sheep and hawks that are my personal favourite.

-What do you plan for increase the bilateral-relations between two countries?

-Indeed, I assumed charge as Ambassador at an exciting time in our relationship when our bilateral relations are on ascendance and there is a strong momentum. So I am glad that you asked about the USD 1.236 billion first Oil Refinery of Mongolia being constructed in Dornogobi with the assistance from Indian government. This is a milestone project and a testimony of our close friendship and strategic partnership for supporting speedy economic development of Mongolia.

This refinery expected to be completed by 2023 is capable of producing 1.5 million metric tons or about 80% of current Mongolian oil requirement will usher in ‘energy security’, create more employment opportunity, save foreign exchange and most likely will bring down the domestic oil prices.

With a view to help its domestic operations and maintenance, India is also assisting with capacity building for the upcoming Oil Refinery by arranging tailor made training suited to local environment for Mongolian Engineers, Technicians, IT personnel, HR officials in specialized Indian Institutions. Starting this year, we have allocated 40 fully funded Indian scholarships. Coming to the second part of your question, quite naturally, mega project of this size would touch every aspect of economic activity in Mongolia and certainly result in generating greater interest among Indian companies, businessmen, professionals in Mongolian market to avail trade and commercial opportunities. We are expecting the peak numbers of Indians in Mongolia to be around 2000 to 3000 from the current size of about 250 or so in next few years.

-What do you plan for the education sector?

-Education sector is so vital and critical to progress of any nation. Acknowledging its importance, various initiatives of Indian government are now driving the 3rd largest education system in the world with a sharp focus on development of education infrastructure using transformative and innovative approaches in higher & technical education, making the learning, scientific research, knowledge and end-user based. There are 39,050 colleges in India, 903 universities and estimated value of education sector in India is about US$91.7 bn. In 2017, 36.64 million students were enrolled in higher education in 2017. Newer areas of innovation like AI, Robotics are supporting Indian strengths in IT & Communication Technology. Let me tell you that the sheer scale that IT & BPO have played in Indian economy reflected in the vital statistics like US$126 Billion revenues in 201-18 with 8% share in India’s GDP controlling 56% in global outsourcing market & 45% share in services export, could also be a guiding yardstick for Mongolia to follow.

Naturally we would like to share with Mongolia, Indian expertise and domain knowledge in IT and engineering to support its capacity building and human resource to propel socio-economic growth and development. Under the platform of Indian Technical & Economic Cooperation (ITEC) and ICCR, specialized short- and medium-term scholarship courses are provided to Mongolia for enhancing capacity in the critical engineering, banking, governance, fintech, IT, agriculture, dairy, renewable energy, media marketing etc. through 300 scholarships every year in over 250 courses in 100 premier Indian institutions.

During last 3 decades, about 3500 Mongolian professionals have been trained in India.

We would continue to support this initiative. Also in January 2020, the first Student Exchange Programme will also commence with 30 Mongolian students visiting India for 20 days during winter vacations.

-India is famous for its tourist attractions. Could you please tell us about India tourism environment?

-You are so right. The ‘Holy Land’ of India is an exotic, spiritual and recreation, 365-day tourist destination that attracted about 10 million foreign tourists in 2018. Through its numerous curated experiences to world heritage sites, snow-covered Himalayas, silver sand beaches, golden deserts, national parks, pristine palaces, venerable shrines for worship, fairs & festivals, traditional cuisine, and myriad shopping experiences, India is the 7th largest tourism economy in the world.

The World Travel & Tourism Council expects India to become the 4th largest travel and tourism economy in less than a decade. Tourism industry created about 14.6 million jobs in last 5 years registering a growth of 5.6% and brining in about US$25 billion Foreign Exchange Earnings. With relaxation of visa regime & e-visa facility now available to 167 countries, it will surely contribute further to hastening the pace of tourist arrivals and additional foreign earnings.

-Mr. Ambassador, what was your diplomatic career history?

-Well, my assignments in Cuba, Vietnam, Thailand, Canada, England and Dubai and responsibilities in Indian Protocol have enabled me to travel to over 105 countries thus allowing me to gain better understanding of different cultures, people, history, customs and assimilate their unique experiences in the line of my duty. I discovered that in this world, various countries have different lifestyle, varying levels of economic progress and living yet there are so many commonalities and convergences in their aspirations, their dreams, their pursuit for peace and happiness.

Mongolia, as I mentioned earlier, continues to be one of the few nations in the world that still retains old world rustic charm and beauty with people living peacefully in close harmony with untamed nature, following simple and honest living. I personally feel that with its eternal blue sky, own unique culture, dance and music, form of arts, a high gender equality index, enormous respect for elders and children, Mongolia is an ideal place for stress free living.

-What did you learn about Mongolian culture?

-In our 8 months here in Mongolia and reading of several books made me realize some absolutely amazing facts about Mongolia, some of which even you may not be aware like Ulaanbaatar city means ‘Red Hero’, population density is just 2.2 persons per km, horses outnumber humans by about 14 times and sheep outnumber by about 35 times, perhaps the first passport was issued by Chinggis Khan who ruled over the largest empire in the world and introduced written Mongolian script, snow leopards are native to Mongolia, Kublai Khan established Beijing city etc.

I found Mongolia to be the last bastion of untamed nature and some astonishing landscapes & beauty and home to the truly last wild horses. Notwithstanding its cold climate, Mongolia has the most friendly and hospitable people ever ready to open their home and hearts to the guests, and their children could easily disarm you with a truly genuine smile.

-Lastly, Mr Ambassador what is your main focus while here?

-Of course, my focus primarily would be to drive mutually beneficial more trade and economic content commensurate with our huge goodwill for India and in line with excellent bilateral and friendly relationship. Towards this, my priority number 1, 2 and 3 would continue to be the USD 1.236 billion Oil Refinery project. Additionally, I would also like to concentrate on timely completion of USD 20 million Atal Bihari Centre of Excellency in IT – construction of which is expected to commence in 2020 as well as establishment of Cyber Security Centre, India-Mongolia Friendship School in Ulaanbaatar city, and Training of 1000 Mongolian English teachers in the near future. To attract and promote Indian interest in Mongolian mining, mineral and oil sector, the Embassy had organized first Oil and Gas Expo in May 2019 which was attended by 32 top Indian multinational companies including Tata, ASCONs, IGSEC, L & T.

During 2020 – which also happens to be 65th anniversary of India-Mongolia diplomatic relations – we would attempt to push economic cooperation in non-traditional sectors like Tourism, Fintech, Pharmaceutical & Healthcare, Higher and Technical Education, Agriculture, Dairy and Animal Husbandry sectors. The 3 Ds – Dharma, Democracy and Development – are the pillars of India-Mongolia historical, time tested and close friendship of many centuries that pre-dates 1955 when diplomatic relationship was established. In 1961, India was one of the first countries to support membership of Mongolia into UN and in 1991, India actively pushed for its membership in NAM. Mongolia supported India’s resolution in UN for independence of Bangladesh in 1972.

In recent times, historic visit of Prime Minister Modi brought in a paradigm shift into our relationship in 2015 when India in keeping with its ‘Act East’ policy declared ‘Strategic Partnership’ with its important friend and ‘third neighbour’, Mongolia and announced USD 1 billion LoC for infrastructure development, now being used for construction of refinery. To nourish and nurture India-Mongolia relationship and to maintain sustained momentum of our friendship, during the last 20 months Foreign Minister, Home Minister and Petroleum Ministers and many other high-level dignitaries have visited Mongolia. Likewise, visits to India by Mongolian Foreign Minister, Minister of Mining and Heavy Industry, Defence Minister, Chairman of the Civil Service Council and most recently visit of the President Battulga in Sep 2019 have further cemented, reinforced and enhanced our bilateral relationship.

Let me conclude by saying that going beyond our strong historical ties, we look forward to India-Mongolia future with keen interest, great expectation and enthusiasm. While we share wonderful friendship, the best in our relationship is yet to come.