China, Russia hold off on congratulating Biden; U.S. allies rally round

By Cate Cadell and Dmitry Antonov

BEIJING/MOSCOW (Reuters) – China and Russia held off congratulating U.S. President-elect Joe Biden on Monday, with Beijing saying it would follow usual custom in its response and the Kremlin noting incumbent Donald Trump’s vow to pursue legal challenges.

Democrat Biden clinched enough states to win the presidency on Saturday and has begun making plans for when he takes office on Jan. 20. Trump has not conceded defeat and plans rallies to build support for legal challenges.

Some of the United States’ biggest and closest allies in Europe, the Middle East and Asia quickly congratulated Biden over the weekend despite Trump’s refusal to concede, as did some Trump allies, including Israel and Saudi Arabia.

German Chancellor Angela Merkel on Monday called for the European Union and United States to work “side by side,” holding up Biden as an experienced leader who knows Germany and Europe well and stressing the NATO allies’ shared values and interests.

Beijing and Moscow were cautious.

“We noticed that Mr. Biden has declared election victory,” China’s foreign ministry spokesman Wang Wenbin told a daily media briefing. “We understand that the U.S. presidential election result will be determined following U.S. law and procedures.”

In 2016, Chinese President Xi Jinping sent congratulations to Trump on Nov. 9, a day after the election.

Relations between China and the United States are at their worst in decades over disputes ranging from technology and trade to Hong Kong and the coronavirus, and the Trump administration has unleashed a barrage of sanctions against Beijing.

While Biden is expected to maintain a tough stance on China — he has called Xi a “thug” and vowed to lead a campaign to “pressure, isolate and punish China” — he is likely to take a more measured and multilateral approach.

Chinese state media struck an optimistic tone in editorials, saying relations could be restored to a state of greater predictability, starting with trade.

KREMLIN NOTES TRUMP’S LAW SUITS

The Kremlin said it would wait for the official results of the election before commenting, and that it had noted Trump’s announcement of legal challenges.

President Vladimir Putin has remained silent since Biden’s victory. In the run-up to the vote, Putin had appeared to hedge his bets, frowning on Biden’s anti-Russian rhetoric but welcoming his comments on nuclear arms control. Putin had also defended Biden’s son, Hunter, against criticism from Trump.

“We think it appropriate to wait for the official vote count,” Kremlin spokesman Dmitry Peskov told reporters on a conference call.

Biden cleared the threshold of 270 Electoral College votes needed to win the White House on Saturday, four days after the Nov. 3 election. He beat Trump by more than 4 million votes nationwide, making Trump the first president since 1992 to lose re-election.

Asked why, in 2016, Putin had congratulated Trump soon after he had won the Electoral College and beaten Democrat Hillary Clinton, Peskov said there was an obvious difference.

“You can see that there are certain legal procedures that have been announced by the current president. That is why the situations are different and we therefore think it appropriate to wait for an official announcement,” he said.

Peskov noted that Putin had repeatedly said he was ready to work with any U.S. leader and that Russia hoped it could establish dialogue with a new U.S. administration and find a way to normalize troubled bilateral relations.

Moscow’s ties with Washington sank to post-Cold War lows in 2014 when Russia annexed Crimea from Ukraine. Biden was serving as vice president under President Barack Obama at the time.

Relations soured further over U.S. allegations that Moscow had meddled in the 2016 U.S. presidential election to try to tilt the vote in Trump’s favor, something the Kremlin denied.

(Additional reporting by Brenda Goh, Tony Munroe and Lusha Zhang in Beijing; Darya Korsunskaya and Gabrielle Tétrault-Farber in Moscow; Sabine Siebold in Berlin; Editing by Nick Tattersall and Catherine Evans)

Europe’s COVID curbs prompt pushback amid bleak countdown to Christmas

By Guy Faulconbridge and Richard Lough

LONDON/PARIS (Reuters) – A wave of COVID lockdowns and curbs has stirred resistance across Europe, with the right-wing British politician who helped force a referendum on Brexit harnessing popular anger at a new lockdown by recasting his Brexit Party under a new banner.

The United Kingdom, which has the highest official death toll in Europe from COVID-19, is grappling with more than 20,000 new coronavirus cases a day and scientists have warned the “worst-case” scenario of 80,000 dead could be exceeded.

Cast by his supporters as the godfather of the movement to quit the European Union, Brexit Party founder Nigel Farage said Johnson had terrified Britons into submission with a second lockdown.

“The single most pressing issue is the government’s woeful response to coronavirus,” Farage and Brexit Party chairman Richard Tice said in a joint article in the Daily Telegraph, announcing his Reform UK party.

“Ministers have lost touch with a nation divided between the terrified and the furious. The debate over how to respond to COVID is becoming even more toxic than that over Brexit.”

Instead of a lockdown, Farage proposed targeting those most at risk and said people should not be criminalized for trying to live normal lives such as meeting family for Christmas.

France, Germany, Italy, Britain, the Netherlands and other countries have announced second lockdowns or strict new curbs as infections surge.

Small shopkeepers in France have complained about being forced to close while supermarkets are allowed to sell “non-essential goods” such as shoes, clothes, beauty products and flowers because they also sell food.

CHRISTMAS CANCELLED?

Finance Minister Bruno Le Maire said on Monday French supermarkets would face the same limits on selling non-essential goods but shop owners were not allowed to challenge the lockdown, in place until at least Dec. 1.

“I am not optimistic that in just four weeks we will lower the number of new cases to the level announced by the president (5,000 new cases per day),” said epidemiologist Dominique Castigliola, director of research at the National Institute of Health and Medical Research.

“We will need more time. I don’t think we’ll be able to hold big family meals at Christmas. That seems very unlikely to me.”

German Chancellor Angela Merkel last week denounced populists who say the coronavirus is harmless as dangerous and irresponsible.

“Throughout the winter months, we will have to limit private contacts,” she told a news conference. “The light at the end of the tunnel is still quite a long way off.”

Police in the Spanish capital, Madrid, on Sunday raided 81 illegal parties, 18 drinking sessions known in Spain as “botellones,” and 10 bars which broke COVID-19 curbs.

Protests flared against new restrictions across Italy last week, with violence reported in Milan and Turin. Italy will tighten restrictions but is holding back from a lockdown, Prime Minister Giuseppe Conte said on Monday.

Italy’s daily tally of infections has increased 10-fold over the last month.

“It is a monumental debacle. The fact that Italy is in the same situation as other countries in Europe is no comfort to me,” virologist Andrea Crisanti told Reuters. “We had five months to strengthen our surveillance, tracking and prevention systems and instead we are heading towards a new lockdown.”

More than 46.37 million people have been infected globally and 1,198,168​ have died from the respiratory disease, according to a Reuters tally. The United States, which holds a presidential election on Tuesday, leads the world with more than 9 million cases and 230,700 deaths.

Iran, the Middle East country worst hit by COVID-19, reported a record 440 deaths in the past 24 hours.

World shares recovered from one-month lows as strengthening factory data in China and Europe offset news of lockdowns, while investors prepared for more volatility arising from the U.S. presidential election.

U.S. President Donald Trump has continually downplayed the virus, mocking Democratic challenger Joe Biden for wearing a mask and social distancing at campaign rallies, a tactic which enlivens his base supporters but infuriates his opponents.

Trump has also ridiculed his top coronavirus task force adviser, Anthony Fauci, who has contradicted Trump’s assertions that the U.S. fight against the virus is “rounding the turn”.

The United States reported 67,862 new cases on Sunday, the highest number it has reported on the last day of any week. The seven-day average hit 81,540, a new record, and has risen for 30 days in a row.

(Reporting by Reuters bureaux worldwide; Writing by Nick Macfie; Editing by Giles Elgood/Mark Heinrich)

COVID-19 again? Reinfection cases raise concerns over immunity

By Kate Kelland

LONDON (Reuters) – The case of a man in the United States infected twice with COVID-19 shows there is much yet to learn about immune responses and also raises questions over vaccination, scientists said on Tuesday.

The 25-year old from Reno, Nevada, tested positive in April after showing mild symptoms, then got sick again in late May with a more serious bout, according to a case report in the Lancet Infectious Diseases medical journal.

Scientists said that while known incidences of reinfection appear rare – and the Nevada man has now recovered – cases like his were worrying. Other isolated cases of reinfection have been reported around the world, including in Asia and Europe.

“It is becoming increasingly clear that reinfections are possible, but we can’t yet know how common this will be,” said Simon Clarke, a microbiology expert at Britain’s Reading University.

“If people can be reinfected easily, it could also have implications for vaccination programs as well as our understanding of when and how the pandemic will end.”

‘STILL DON’T KNOW ENOUGH’

The Nevada patient’s doctors, who first reported the case in a non peer-reviewed paper in August, said sophisticated testing showed that the virus strains associated with each bout of infection were genetically different.

“These findings reinforce the point that we still do not know enough about the immune response to this infection,” said Paul Hunter, a professor in medicine at Britain’s University of East Anglia.

Brendan Wren, a professor of vaccinology at the London School of Hygiene & Tropical Medicine, said the Nevada case was the fifth confirmed example of reinfection worldwide.

“The demonstration that it is possible to be reinfected by SARS-CoV-2 may suggest that a COVID-19 vaccine may not be totally protective,” he said. “However, given the (more than) 40 million cases worldwide, these small examples of reinfection are tiny and should not deter efforts to develop vaccines.”

(Reporting by Kate Kelland; Editing by Andrew Cawthorne)

One in 10 may have caught COVID, as world heads into ‘difficult period’: WHO

By Stephanie Nebehay and Emma Farge

GENEVA (Reuters) – Roughly one in 10 people may have been infected with the coronavirus, leaving the vast majority of the world’s population vulnerable to the COVID-19 disease it causes, the World Health Organization said on Monday.

Mike Ryan, the WHO’s top emergency expert, was addressing the agency’s Executive Board, where the United States made a thinly veiled swipe at China for what it called a “failure” to provide accurate and timely information on the outbreak.

But Zhang Yang of China’s National Health Commission, said: “China has always been transparent and responsible to fulfill our international obligations.” China maintained close contacts with all levels of the U.N. health agency, she added.

Ryan said that outbreaks were surging in parts of southeast Asia and that cases and deaths were on the rise in parts of Europe and the eastern Mediterranean region.

“Our current best estimates tell us about 10% of the global population may have been infected by this virus. It varies depending on country, it varies from urban to rural, it varies depending on groups. But what it does mean is that the vast majority of the world remains at risk,” Ryan said.

“We are now heading into a difficult period. The disease continues to spread,” he said.

The WHO and other experts have said that the virus, believed to have emerged in a food market in the central Chinese city of Wuhan late last year, is of animal origin.

The WHO has submitted a list of experts to take part in an international mission to China to investigate the origin, for consideration by Chinese authorities, Ryan said, without giving details.

U.S. assistant health secretary Brett Giroir said that it was critical that WHO’s 194 member states receive “regular and timely updates, including the terms of reference for this panel or for any field missions, so that we can all engage with the process and be confident in the outcomes”.

Germany, speaking for the EU, said the expert mission should be deployed soon, with Australia also supporting a swift investigation.

Meanwhile, Alexandra Dronova, Russia’s deputy health minister, called for an evaluation of the legal and financial repercussions of the Trump administration announcing the U.S. withdrawal from the WHO next July.

The United States will not pay some $80 million it owes the WHO and will instead redirect the money to help pay its U.N. bill in New York, a U.S. official said on Sept. 2.

(Reporting by Stephanie Nebehay and Emma Farge; writing by Stephanie Nebehay; Editing by Hugh Lawson and Alison Williams)

Exclusive: New global lab network will compare COVID-19 vaccines head-to-head

By Kate Kelland

LONDON (Reuters) – A major non-profit health emergencies group has set up a global laboratory network to assess data from potential COVID-19 vaccines, allowing scientists and drugmakers to compare them and speed up selection of the most effective shots.

Speaking to Reuters ahead of announcing the labs involved, Melanie Saville, director of vaccine R&D at the Coalition for Epidemic Preparedness Innovations (CEPI), said the idea was to “compare apples with apples” as drugmakers race to develop an effective shot to help control the COVID-19 pandemic.

The centralized network is the first of its kind to be set up in response to a pandemic.

In a network spanning Europe, Asia and North America, the labs will centralize analysis of samples from trials of COVID-19 candidates “as though vaccines are all being tested under one roof”, Saville said, aiming to minimize the risk of variation in results.

“When you start off (with developing potential new vaccines) especially with a new disease, everyone develops their own assays, they all use different protocols and different reagents – so while you get a readout, the ability to compare between different candidates is very difficult,” she told Reuters.

“By taking the centralized lab approach … it will give us a chance to really make sure we are comparing apples with apples.”

The CEPI network will initially involve six labs, one each in Canada, Britain, Italy, the Netherlands, Bangladesh and India, Saville said.

Hundreds of potential COVID-19 vaccines are in various stages of development around the world, with shots developed in Russia and China already being deployed before full efficacy trials have been done, and front-runners from Pfizer, Moderna and AstraZeneca likely to have final-stage trial results before year-end.

Typically, the immunogenicity of potential vaccines is assessed in individual lab analyses, which aim to see whether biomarkers of immune response – such as antibodies and T-cell responses – are produced after clinical trial volunteers receive a dose, or doses, of the vaccine candidate.

But with more than 320 COVID-19 vaccine candidates in the works, Saville said, the many differences in data collection and evaluation methods are an issue.

As well as potential variations in markers of immunity, there are differences in how and where samples are collected, transported and stored – all of which can impact the quality and usefulness of the data produced, and make comparisons tricky.

And with a range of different vaccine technologies being explored – from viral vector vaccines to ones based on messenger RNA – standard evaluation of their true potential “becomes very complex”, she said.

“With hundreds of COVID-19 vaccines in development … it’s essential that we have a system that can reliably evaluate and compare the immune response of candidates currently undergoing testing,” she said.

By centralizing the analysis in a lab network, much of what Saville called the “inter-laboratory variability” can be removed, allowing for head-to-head comparisons.

CEPI says all developers of potential COVID-19 vaccines can use the centralized lab network for free to assess their candidates against a common protocol. For now, the network will assess samples from early-stage vaccine candidate testing and first and second stage human trials, but CEPI said it hoped to expand its capacity to late stage (Phase III) trial data in the coming months.

Results produced by the network will be sent back to the developer, with neither CEPI nor the network owning the data.

CEPI itself is co-funding nine of the potential COVID-19 vaccines in development, including candidates from Moderna, AstraZeneca, Novavax and CureVac.

(Reporting by Kate Kelland, editing by Mark Potter)

French labs show how global supply bottlenecks thwart effort to ramp up testing

By Richard Lough

PARIS (Reuters) – Mass testing was meant to be the answer to the second wave. Politicians promised that with enough tests, conducted quickly enough, they could keep the coronavirus in check, without having to resort to lockdowns that crippled economies six months ago.

But so far, with a surge sweeping Europe just as students return to school and university, it hasn’t quite worked out that way. There aren’t enough tests, and they are taking too long.

Pierre-Adrien Bihl, who runs four labs that together conduct 800 tests a day in eastern France, has one explanation for what has gone wrong: a global supply chain that can’t keep up.

“I spend my days checking orders have been made and received and hassling my supplier to deliver, deliver, deliver,” he said. “But all their clients demand the same thing.”

French President Emmanuel Macron, like other European leaders, has pressed for a swift increase in tests. His government promises that anyone who needs a test can get one.

But five companies that operate laboratories in Paris and eastern France told Reuters there was simply no way they could work any faster, as long as they are struggling to obtain chemicals and test kits that are mainly produced abroad.

This week, Bihl said, he had to take his diagnostic machine offline for nearly 24 hours, after a four-day delay in the delivery of some single-use parts.

The shutdown forced Bihl to reduce testing appointments until the backlog could be made up, he said, adding that such shutdowns were taking place three or four times a month.

Arthur Clement, who runs four laboratories, said the U.S. manufacturer of his diagnostic machine, Cepheid, was sending him just 300 test kits per month at the end of the summer, as cases surged.

With his labs performing 25,000 tests per month, Clement had to send nearly all of them out to a third party, where they were taking up to 7-10 days to get results. Cepheid did not respond to a request for comment.

Clement ordered a new diagnostic machine from a South Korean manufacturer two months ago, which finally arrived last Friday, and now he says he can perform all tests in-house and deliver results in a day.

GLOBAL MARKET

In Paris, queues snake out of testing centers each day, with lines forming before sunrise at some. People with COVID symptoms are waiting on average three days for their results, according to official data, though for some the wait can be double.

France is now conducting more than 1.2 million polymerase chain reaction (PCR) tests per week in response to the epidemic, which has killed more than 31,000 people in the country and infected nearly half a million.

The French health ministry denies that there is a nationwide shortage of chemicals. It says there have been localized shortages in some parts of the country, but the overall supply is adequate. Health Minister Olivier Veran has said France has access to supplies of reagents equivalent to double the actual demand for tests.

But laboratories can’t just order chemicals from anywhere: testing machines typically require proprietary chemical kits and tools, some of which can be obtained only from the manufacturer.

The ministry recommends laboratories diversify their suppliers of testing machines, to mitigate the risk of one supply chain becoming blocked. But that means buying extra machines to duplicate capacity, which costs more money and can take months.

Suppliers of the machines to French labs include Cepheid and Becton Dickinson in the United States, Switzerland’s Roche, and France’s Biomerieux and Eurobio Scientific.

Cepheid, Roche and Eurobio Scientific did not respond to requests for comment on the supply of COVID equipment and reagents.

Becton Dickinson told Reuters in an email it was delivering more than 1 million tests per month globally. It acknowledged that this has fallen short of demand, but said it aims to scale up to 1.9 million per month by late 2020.

Biomerieux said its sites in France had spare capacity.

Lionel Barrand, one of the five laboratory operators who spoke to Reuters, said the supply-chain crunch was partly rooted in France’s reliance on imported reagents. He estimated 90% of COVID-19 reagents used in France were sourced overseas.

“We depend heavily on the global market,” said Barrand, who heads a laboratory industry group, the Syndicat National des Jeunes Biologistes.

Some of the French laboratories worry that U.S. suppliers such as Cepheid and Becton Dickinson are prioritizing labs in the United States, where healthcare costs are higher and profit margins bigger.

Becton Dickinson said it allocates test kits using quotas, which are set on the basis of the number of its testing machines in a country and the severity of outbreaks.

“We do not use pricing, margins or profit as a factor in our allocations,” the company said.

(Reporting by Richard Lough; Additional reporting by Matthias Blamont; Editing by Peter Graff)

IEA says oil demand recovery set to slow for rest of 2020

By Noah Browning

LONDON (Reuters) – The International Energy Agency (IEA) trimmed its 2020 oil demand forecast on Tuesday, citing caution about the pace of economic recovery from the pandemic.

The Paris-based IEA cut its 2020 outlook by 200,000 barrels per day (bpd) to 91.7 million bpd in its second downgrade in as many months.

“We expect the recovery in oil demand to decelerate markedly in the second half of 2020, with most of the easy gains already achieved,” the IEA said in its monthly report.

“The economic slowdown will take months to reverse completely … in addition, there is the potential that a second wave of the virus (already visible in Europe) could cut mobility once again.”

Renewed rises in COVID-19 cases in many countries and related lockdown measures, continued remote working and a still weak aviation sector are all hurting demand, the IEA said.

China – which emerged from lockdown sooner than other major economies and provided a strong prop to global demand – continues a strong recovery, while a virus upsurge in India contributed to the biggest demand drop since April, the IEA said.

Increasing global oil output and the downgraded demand outlook also mean a slower draw on crude oil stocks which piled up at the height of lockdown measures, it added.

The agency now predicts implied stock draws in the second half of the year of about 3.4 million barrels per day, nearly one million bpd less than it predicted last month, with July storage levels in developed countries again reaching record highs.

However, preliminary data for August showed industry crude oil stocks fell in the United States, Europe and Japan.

As output cuts eased among producers from the Organization of the Petroleum Exporting Countries (OPEC) and allies such as Russia, global oil supply rose by 1.1. million bpd in August.

After two months of increases, recovery among countries outside the OPEC+ pact stalled, with production in the United States falling 400,000 bpd as Hurricane Laura forced shut-ins.

(Reporting by Noah Browning; editing by Jason Neely)

Uber promises 100% electric vehicles by 2040, commits $800 million to help drivers switch

By Tina Bellon

(Reuters) – Uber Technologies Inc on Tuesday said every vehicle on its global ride-hailing platform will be electric by 2040, and it vowed to contribute $800 million through 2025 to help drivers switch to battery-powered vehicles, including discounts for vehicles bought or leased from partner automakers.

Uber, which as of early February said it had 5 million drivers worldwide, said it formed partnerships with General Motors and the Renault, Nissan, Mitsubishi alliance.

In addition to the vehicle discounts, Uber said the $800 million includes discounts for charging and a fare surcharge for electric and hybrid vehicles, the cost of which would be partially offset by an additional small fee charged to customers who request a “green trip.”

Uber said that vehicles on its rides platform in the United States, Canada and Europe will be zero-emission by 2030, taking advantage of the regulatory support and advanced infrastructure in those regions.

The deals with GM and the Renault alliance focus on the U.S., Canada and Europe. Uber said it was discussing partnerships with other automakers.

Uber’s plan follows years of criticism by environmental groups and city officials over the pollution and congestion caused by ride-hail vehicles and calls for fleet electrification.

Lyft Inc, Uber’s smaller U.S. rival, in June promised to switch to 100% electric vehicles by 2030, but said it would not provide direct financial support to drivers.

Uber said its goal is to reduce the overall cost of ownership for electric vehicles, which are currently more expensive than gasoline cars.

The company also released data on its emission footprint and said it would publish reports going forward.

Before the pandemic, electric cars accounted for only 0.15% of all U.S. and Canadian Uber trip miles – roughly in line with average U.S. electric car ownership. At around 12%, the share of plug-in hybrid and hybrid cars was roughly five times as high as the U.S. average.

Ride-hail trips overall account for less than 0.6% of transportation-sector emissions, according to U.S. data, but the total number of on-demand vehicles has significantly increased since Uber’s launch nearly a decade ago, with 7 billion trips last year, according to Uber’s February investor presentation.

Uber said its U.S. and Canadian trips with a passenger produce 41% more carbon dioxide per mile than an average private car once miles spent cruising between passengers are included.

Uber’s plans could be a boon to the auto industry. Stricter environmental regulation, particularly in Europe, is forcing automakers to invest billions to overhaul their operations while consumer demand for electric vehicles remains subdued. Uber is also working with BP, EVgo and other global charging providers to provide discounts and expand the location of charging stations for ride-hail drivers – generally considered a main hurdle to wider EV adoption. Beginning on Tuesday, all U.S. and Canadian Uber drivers in a fully battery-powered electric vehicle will receive $1 extra per trip, and an additional 50 cents in major U.S. cities if passengers choose to pay extra when booking a “green trip.”

(Reporting by Tina Bellon in New York; Editing by Peter Henderson and Leslie Adler)

J&J to start mid-stage coronavirus vaccine trials in three European countries

By Nathan Allen

MADRID (Reuters) – Johnson & Johnson’s Janssen unit will begin mid-stage trials for its coronavirus vaccine in Spain, the Netherlands and Germany next week, Spain’s health minister said on Friday, as the U.S. drugmaker expands testing for its experimental shot.

The Phase II trial will last two months and include 550 participants across the three countries, including 190 people in Spain, Salvador Illa told a news conference in Madrid.

“It’s a vote of confidence in our health system,” Illa said, adding it was the first human trial for a coronavirus vaccine to be approved in Spain.

The study will focus on healthy people between the ages of 18 and 55 as well as people over 65.

Johnson & Johnson said the study will evaluate the safety and the ability to induce an immune response from single dose and two-dose regimens of the vaccine candidate, the company said in a statement.

Spain, which has western Europe’s highest tally of coronavirus cases, is also working with AstraZeneca via the European Union’s vaccine procurement program to secure sufficient doses.

J&J’s website says if the latest trials are successful, it will begin final Phase III studies, in which even more volunteers will receive the experimental vaccine.

More than 150 potential vaccines are being developed and tested globally to combat the COVID-19 pandemic, with 30 in human trials.

There is so far no approved vaccine, except one authorized in Russia before large-scale trials.

J&J is carrying out tests in the United States and Belgium, and this week added Chile, Argentina and Peru to the list of Latin American nations where it plans to conduct Phase III trials on 60,000 volunteers, in a study that will also cover Brazil, Colombia and Mexico.

The company’s potential vaccine uses “viral vectors” to generate immune responses, similar to the approach taken by the University of Oxford and AstraZeneca in their experimental vaccine, as well as China’s CanSino.

(Reporting by Nathan Allen and Jose Elías Rodríguez; editing by Mark Potter and Jason Neely)

Economic clout makes China tougher challenge for U.S. than Soviet Union was – Pompeo

By Robert Muller

PRAGUE (Reuters) – China’s global economic power makes the communist country in some ways a more difficult foe to counter than the Soviet Union during the Cold War, U.S. Secretary of State Mike Pompeo said on a visit to the Czech Republic on Wednesday.

Pompeo called on countries around Europe to rally against the Chinese Communist Party (CCP), which he said leverages its economic might to exert its influence around the world.

“What’s happening now isn’t Cold War 2.0,” Pompeo said in a speech to the Czech Senate. “The challenge of resisting the CCP threat is in some ways much more difficult.”

“The CCP is already enmeshed in our economies, in our politics, in our societies in ways the Soviet Union never was.”

The Cold War reference came after China’s ambassador to London last month warned that the United States was picking a fight with Beijing ahead of the U.S. presidential election in November.

U.S.-China ties have quickly deteriorated this year over a range of issues including Beijing’s handling of the coronavirus; telecoms-equipment maker Huawei; China’s territorial claims in the South China Sea; and the clampdown on Hong Kong.

Pompeo’s visit to the Czech Republic, part of the Soviet bloc until the 1989 democratic Velvet Revolution, marked the first stop on a swing through the region to discuss cyber and energy security.

He used the occasion to swipe at both Russian and Chinese influence and lauded officials in the central European nation of 10.7 million who took on Beijing over the past year.

He cited the Czech Republic’s efforts to set security standards for the development of 5G telecommunications networks after a government watchdog warned about using equipment made by China’s Huawei.

Pompeo and Prime Minister Andrej Babis signed a declaration on 5G security in May, but the country has not made an outright decision to ban Huawei technology. Its President Milos Zeman has been promoting closer ties with China.

Pompeo also acknowledged the chairman of the Czech Senate Milan Vystrcil, who followed through on a plan by his deceased predecessor to visit Taiwan at the end of this month, a trip that has angered China.

Pompeo said some nations in Europe would take longer to wake up to the threats, but there was a positive momentum.

“The tide has turned (in the United States), just as I see it turned here in Europe as well. The West is winning, don’t let anyone tell you about the decline of he West,” he said.

“It will take all of us… here in Prague, in Poland, in Portugal. We have the obligation to speak clearly and plainly to our people, and without fear. We must confront complex questions… and we must do so together,” he said.

(Writing by Jan Lopatka; Editing by Michael Kahn, William Maclean)