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New trains, new tracks: US rail to get much-needed facelift

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Workers are seen at an Amtrak facility in New Castle County, Delaware in November 2023
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Old-fashioned, slow, infrequent and often non-existent, trains have long been the poor relation of cars and planes in the United States.

President Joe Biden’s administration is hoping to change that as it unveils major rail investments on Friday including the United States’ first high-speed train — between Los Angeles and Las Vegas — which it aims to complete by 2028.

The move is part of a larger ambition to double passenger numbers on America’s railways by 2040.

“This is a country that wouldn’t be the country it is today without railroads,” said Transportation Secretary Pete Buttigieg, noting that the United States now lags “behind other nations when it comes to passenger rail.”

Major rail projects are part of the infrastructure investment plan that Biden pushed through shortly after taking office, which allocated $66 billion for passenger trains.

This is the largest sum allocated to passenger rail since the formation of Amtrak in 1971.

The quasi-public company was set up to relieve private freight of the burden of passenger transport, and now operates inter-city rail lines across the country.

The aim of the additional financing is to usher in a “new era of passenger rail,” Laura Mason, Amtrak’s executive vice-president in charge of the renovation work, told AFP.

“This will be truly transformational for US passenger rail,” she said, adding that much of today’s network runs on infrastructure “built well over 100 years ago.”

Dozens of projects will benefit from the new funding, from the creation of new lines to the extension of existing ones.

In addition to the Los Angeles-Las Vegas line, another between San Francisco and Los Angeles is in the works, with each to receive up to approximately $3 billion.

The frequency of services will also be boosted, while ageing stations will be renovated, and new, faster and more comfortable trains are planned.

For instance, the shuttered line connecting the city of New Orleans, Louisiana with Mobile, Alabama is due to reopen almost 20 years after it was destroyed by Hurricane Katrina.

And the Amtrak station in Baltimore, Maryland, is being refurbished to accommodate more trains, and a new tunnel will be dug nearby to increase traffic speed.

– ‘Skeletal’ network –

The train played a crucial role in expansion across the western United States in the 19th century, but today’s network is “skeletal,” Jim Mathews, the head of the US Rail Passengers Association, told AFP.

As a result, “there are a lot of trips that are just not possible,” he said.

A journey in the northeast between Boston, New York and Washington, “would be a relatively painless experience,” he explained.

“It would be slower than it should be (but) that’s going to get better soon,” he said, adding that new trains and upgraded infrastructure will soon help speed up journey times.

On the other hand, crossing the country from east to west takes between two and two-and-a-half days.

“You’ll have to change trains in Chicago,” Mathews said. “And if you want a sleeping compartment, you have to book that months in advance.”

It’s not just a question of repairing train tracks and building new trains, but also “changing how people move, and how do we encourage mode shift out of cars, out of airplanes, onto trains,” said Mason from Amtrak.

– Amtrak Joe –

Despite the challenges, the current context is a favorable one for train travel, Mason insisted.

“We’re seeing a real change coming out of pandemic and how people want to move,” she said, adding that passenger numbers were growing.

Some were doing it for environmental concerns, while others chose train travel for its tranquility, convenience for work because of Wi-Fi, or simply “for the experience,” she added.

In the waiting area at Washington’s Union Station, Alan Beaubien, who lives in Florida, was in town on a business trip.

“Once I’m in the northeast, I will always use the train,” he told AFP.

But “when you get into more the Midwest or the West, you don’t have as many options,” he said.

Chukwuemeka Chuks-Okeke is another loyal Amtrak user.

“There’s obviously no traffic, and I enjoy taking the train. It’s relaxing,” he told AFP at Union Station.

“We could do a better job at reducing our carbon footprint and by taking trains.”

Last month Biden, who used the train between his Delaware home and Washington so much as a US senator that he earned the nickname “Amtrak Joe,” insisted that the $66 billion in funding was just the “beginning.”

“There’s so much more we can do,” he said.

“You can go and get a train in China, go to 210 miles an hour,” he added, nodding to the progress made in high speed rail by the world’s second-largest economy.

“We can do it here in the United States.”

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ByteDance says ‘no plans’ to sell TikTok after US ban law

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A new US law requires TikTok to sever all ties with its Chinese parent ByteDance or face a ban in the United States
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Chinese tech giant ByteDance has said it has no plans to sell TikTok after a new US law put it on a deadline to divest from the hugely popular video platform or have it banned in the United States.

US lawmakers set the nine-month deadline on national security grounds, alleging that TikTok can be used by the Chinese government for espionage and propaganda as long as it is owned by ByteDance.

The Information, a tech-focused US news site, reported that ByteDance was looking at scenarios for selling TikTok without the powerful secret algorithm that recommends videos to its more than one billion users around the world.

ByteDance denied it was considering a sale.

“Foreign media reports about ByteDance exploring the sale of TikTok are untrue,” the company posted Thursday on Toutiao, a Chinese-language platform it owns.

“ByteDance does not have any plans to sell TikTok.”

TikTok has been a political and diplomatic hot potato for years, first finding itself in the crosshairs of former president Donald Trump’s administration, which tried unsuccessfully to ban it.

It has forcefully denied any link to the Chinese government, and said it has not and will not share US user data with Beijing.

TikTok says it has also spent around $1.5 billion on “Project Texas”, under which US user data would be stored in the United States.

Its critics say the data is only part of the problem, and that the TikTok recommendation algorithm — the “secret sauce” for its success — must also be disconnected from ByteDance.

TikTok CEO Shou Zi Chew has said the company will take the fight against the new law to the courts, but some experts believe that for the US Supreme Court, national security considerations could outweigh free speech protection.

– Bullish investors –

The estimated valuations of TikTok are in the tens of billions of dollars, and any forced sale would present major complications.

Among those with deep enough pockets, US tech giants such as Instagram-parent Meta or Google would likely be blocked from buying the app over competition concerns.

Further, many investors consider TikTok’s recommendation algorithm to be its most valuable feature.

But any sale of such technology by a Chinese company would require approval from Beijing, which designated such algorithms as protected technology following Trump’s attempt to ban TikTok in 2020.

Beijing has so far vocally opposed any forced sale of TikTok, saying it will take all necessary measures to protect Chinese companies.

While TikTok is a global phenomenon, it represents a small fraction of ByteDance’s revenue, according to analysts and investors. 

ByteDance has enjoyed explosive growth in recent years, becoming one of the most valuable companies in the world. Its international investors, including US firms General Atlantic and SIG as well as Japan’s SoftBank, have stakes worth billions.

“TikTok US is a very small part of the overall business. It is an exciting part of the story, for sure, but… relative to the overall size, it’s a very small part,” ByteDance investor Mitchell Green, of US-based Lead Edge Capital, told CNBC television last month.

“If it was kicked out of the US, we would not sell.”

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Five things we learned at the China Auto Show

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The consumer tech giant is the latest entrant to China's cut-throat EV market, with its new SU7 model the star of the show
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One of China’s largest auto shows kicked off in Beijing on Thursday, with electric vehicle makers keen to show off their latest designs and high-tech accessories to consumers in the fiercely competitive market.

Here are the key developments from Auto China’s first day of action:

– Xiaomi –

The consumer tech giant is the latest entrant to China’s cut-throat EV market, with its new SU7 model the star of the show.

Less than one month after its launch, almost 76,000 pre-orders have been placed, Xiaomi said, an accumulation of orders that will take months to deliver given its current production capacity.

Xiaomi boss Lei Jun was swarmed at Auto China on Thursday by legions of loyal fans, eager to follow the entrepreneur’s every move around the convention complex.

– XPeng –

Among car giant Tesla’s main rivals in the Chinese market is XPeng, which announced plans to begin large-scale deployment of AI-assisted driving in its vehicles in May.

“The AI learns the driver’s habits and can then imitate their driving” and enhance security, company boss He Xiaopeng told an audience while presenting the X9, a seven-seater “so spacious it can accommodate five bicycles in its trunk”.

– CATL –

Also present at the show was Chinese battery giant CATL, founded in 2011 in the eastern city of Ningde and now the undisputed global leader in EV batteries.

Its factories produce more than a third of car batteries sold worldwide and are equipped in models from a long line of foreign manufacturers including Mercedes, BMW, VW, Tesla, Toyota, Honda and Hyundai.

Responding Thursday to one of the main criticisms of EVs — long charging times that restrict mobility — CATL announced a remedy: “Shenxing Plus”, an ultra-fast battery pack that the firm says earns one kilometre (0.62 miles) in range for every second of charging.

– Nio –

In contrast to much of the EV industry, Chinese automaker Nio focuses on battery-swap technology rather than recharging individual vehicles.

The Shanghai-based firm founded 10 years ago said Thursday it had accumulated nearly 2,500 battery swapping points across China.

Nio also presented its ET7, a sedan model the firm claims has a range of 1,000 kilometres.

– Tencent-Toyota alliance –

Japanese auto-making juggernaut Toyota also announced Thursday that it would join hands with Chinese tech and gaming giant Tencent in AI, a bid to capitalise on local consumers’ increasing appetite for advanced smart car features.

The cooperation will apply to Toyota vehicles sold in China, said Toyota, which like other foreign manufacturers, has struggled to keep up in the ultra-competitive market as the industry shifts to electric.

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US to give Micron $6.1 bn for American chip factories

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US lawmakers have approved billions of dollars to support the onshoring of semiconductor production
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Micron is set to receive up to $6.1 billion in grants from the US government to help build its semiconductor plants in New York and Idaho, the White House said Thursday.

The award, to be announced by President Joe Biden as he travels to Syracuse, New York, is the latest in a series of efforts by Washington to bring semiconductor production back to the country.

The United States has been working to ensure its lead in the chip industry, especially with regards to the development of artificial intelligence — both on national security grounds and in the face of competition with China.

The investment will help Micron “bring back leading-edge memory chip manufacturing to the United States for the first time in 20 years,” Chuck Schumer of New York, the Senate majority leader, told reporters.

The $6.1 billion in direct funding comes under the CHIPS and Science Act, a major package of funding and tax incentives passed by Congress in 2022 to boost research and US semiconductor production.

The White House said the funds will go to supporting construction of two facilities in Clay, New York, and one in Boise, Idaho, where Micron is headquartered.

The US Commerce Department will also make up to $7.5 billion in proposed loans available under a preliminary deal.

Micron is set to invest up to $125 billion across both states over the next two decades “to build a leading-edge memory manufacturing ecosystem,” according to the White House.

The US chipmaker’s total investment is due to create more than 70,000 jobs, including 20,000 direct construction and manufacturing roles.

– Supply chain shocks –

While semiconductors were invented in the United States, the White House noted that the country makes just around 10 percent of the world’s chips now — and “none of the most advanced ones.”

Micron CEO Sanjay Mehrotra called the step a “historic moment” for US semiconductor manufacturing, saying its US investments will “create many high-tech jobs.”

“Leading-edge memory chips are foundational to all advanced technologies,” said Commerce Secretary Gina Raimondo.

She added that returning the development and production of advanced memory semiconductor technology to the country is “crucial for safeguarding our leadership on artificial intelligence and protecting our economic and national security.”

Chips are needed in powering everything from smartphones to fighter jets, and are increasingly in demand by automakers, especially for electric vehicles.

But the global chip industry is dominated by just a few firms, including TSMC in Taiwan and California-based Nvidia.

The United States is dependent on Asia for chip production, making it vulnerable to supply chain shocks, such as during the Covid-19 pandemic or in the event of a major geopolitical crisis.

“We’re already seeing AI revolutionize our world and grow at an unprecedented pace,” said Schumer. 

“We cannot, cannot have these chips made overseas, especially by competitors like China. We cannot have them be the only supplier,” he added.

Apart from the grants to Micron, Biden is also expected to announce four new “workforce hubs” in the Upstate New York region, the state of Michigan, as well as the cities of Philadelphia and Milwaukee.

According to senior government officials, such hubs are a way to spur more commitments from employers and educational institutions.

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