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Germany’s leader and top CEOs have arrived in Beijing. They need China more than ever | CNN Business

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Germany’s leader and top CEOs have arrived in Beijing. They need China more than ever | CNN Business


Hong Kong/London
CNN Enterprise
 — 

German Chancellor Olaf Scholz arrived in China on Friday with a workforce of high executives and a transparent message: enterprise with the world’s second largest financial system should proceed.

Scholz met with Chinese language chief Xi Jinping at Beijing’s Nice Corridor of the Individuals after touchdown within the capital Friday morning, in keeping with a Chinese language state media account. The German chancellor can also be anticipated to satisfy with Premier Li Keqiang.

Becoming a member of Scholz for the whirl-wind sooner or later go to is a delegation of 12 German business titans, together with the CEOs of Volkswagen

(VLKAF), Deutsche Financial institution

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(DB), Siemens

(SIEGY) and chemical compounds large BASF

(BASFY), in keeping with an individual aware of the matter. They’re set to satisfy with Chinese language firms behind closed doorways.

The group entered China with out taking part within the normal seven-day resort quarantine. Photos confirmed hazmat-clad medical employees greeting their jet at Beijing’s Capital Worldwide Airport to check the official delegation for Covid-19.

Throughout the Friday morning assembly between the 2 leaders, Xi known as for Germany and China to work collectively amid a “advanced and unstable” worldwide scenario, and stated the go to would “improve mutual understanding and belief, deepen pragmatic cooperation in varied fields and plan for the following section of Sino-German relations,” in keeping with a readout from state broadcaster CCTV.

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Scholz’s go to — the primary by a G7 chief to China in roughly three years — comes as Germany slides in the direction of recession. But it surely has fired up issues that the financial pursuits of Europe’s largest financial system are nonetheless too intently tied to these of Beijing.

Because the invasion of Ukraine this 12 months, Germany has been pressured to ditch its lengthy dependence on Russian vitality. Now, some in Scholz’s coalition authorities are rising nervous concerning the nation’s deepening ties with China. Beijing has declared its friendship with Russia has “no limits,” whereas China’s relations with the USA are deteriorating.

The strain was highlighted just lately by a fierce debate over a bid by Chinese language state delivery large Cosco to purchase a 35% stake within the operator of one of many 4 terminals on the port of Hamburg. Below strain from some members of the federal government, the dimensions of the funding was restricted to 24.9%.

The potential deal has raised issues in Germany that nearer ties with China will go away vital infrastructure uncovered to political strain from Beijing, and disproportionately profit Chinese language firms.

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However Germany is hardly able to rock the boat with Beijing because it grapples with the problem of reviving its struggling financial system. Its shoppers and corporations have borne the brunt of Europe’s vitality disaster, and a deep recession is looming.

If the European Union and Germany had been to decouple from China, it will result in “giant GDP losses” for the German financial system, Lisandra Flach, director of the ifo Heart for Worldwide Economics, advised CNN Enterprise.

The Kiel Institute for the World Financial system estimates {that a} main discount in commerce between the European Union and China would shave 1% off of Germany’s GDP.

Germany must shore up its export markets as ties with Russia, as soon as its principal provider of pure fuel, proceed to unravel.

On the subject of China, Germany received’t wish to “lose additionally this market, this financial accomplice,” stated Rafal Ulatowski, an assistant professor of political science and worldwide research on the College of Warsaw.

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“They [will] attempt to maintain these relations so long as it’s attainable.”

As Western nations have imposed swingeing financial sanctions on Russia, China has publicly maintained its “neutrality” within the warfare whereas ramping up its commerce with Moscow.

That has triggered a backlash in Europe, the place some firms are already changing into cautious of doing enterprise in China due to its stringent “zero Covid” restrictions.

Strain on Berlin can also be mounting over China’s human rights document. In an open letter Wednesday, a coalition of 70 civil rights teams urged Scholz to “rethink” his journey to Beijing.

“The invitation of a German commerce delegation to affix your go to will likely be seen as a sign that Germany is able to deepen commerce and financial hyperlinks, at the price of human rights and worldwide regulation,” they wrote within the memo, printed by the World Uyghur Congress. Based mostly in Germany, the group is run by Uyghurs elevating consciousness of allegations of genocide in China’s Xinjiang area.

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It recommended Berlin was “loosening financial dependence on one authoritarian energy, solely to deepen financial dependence on one other.”

In an op-ed printed in a German newspaper on Wednesday, Scholz stated he would use his go to to “deal with tough points,” together with “respect for civil and political liberties and the rights of ethnic minorities in Xinjiang province.”

A spokesperson for the German authorities addressed wider criticism final week, saying at a press convention that it had no intention of “decoupling” from its most essential buying and selling accomplice.

“[The chancellor] has mainly stated many times that he’s not a pal of decoupling, or turning away, from China. However he additionally says: diversify and decrease threat,” the spokesperson stated.

Final 12 months, China was Germany’s largest buying and selling accomplice for the sixth 12 months in a row, with the worth of commerce up over 15% from 2020, in keeping with official statistics. Collectively, Chinese language imports from, and exports to, Germany had been price €245 billion ($242 billion) in 2021.

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Nonetheless, the furore surrounding the Hamburg port deal is a reminder of the tradeoffs Germany has to confront if it desires to take care of shut ties with such a significant export market and provider.

A spokesperson for Hamburger Hafen und Logistik (HHLA), the corporate working the port terminal, advised CNN Enterprise on Thursday that it was nonetheless negotiating the cope with Cosco.

Flach, of the ifo Heart for Worldwide Economics, stated the deal warranted scrutiny as a result of “there isn’t any reciprocity: Germany can’t put money into Chinese language ports, as an illustration.”

A container ship from Cosco Shipping moored at the Tollerort Container Terminal owned by HHLA, in the harbor of Hamburg, Germany on Oct. 26.

Nevertheless, it’s straightforward to overstate the influence of the potential settlement, stated Alexander-Nikolai Sandkamp, assistant professor of economics on the Kiel Institute for the World Financial system.

“We’re not speaking a couple of 25% stake within the Hamburg harbor, and even the operator of the harbor, however a 25% stake within the operator of a terminal,” he advised CNN Enterprise.

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Jürgen Matthes, head of worldwide and regional markets on the German Financial Institute, advised CNN Enterprise that critics had been now not merely weighing the enterprise advantages of Chinese language funding within the nation.

“Politics and economics need to be checked out collectively and can’t be taken individually any longer,” he stated. “When geopolitics comes into play, the view of China has very a lot declined and develop into way more destructive.”

China’s latest therapy of Lithuania has additionally deepened issues that Beijing “doesn’t hesitate to easily break commerce guidelines,” Matthes added. The small, Jap European nation claimed final 12 months that Beijing had erected commerce obstacles in retaliation for its assist for Taiwan.

China has defended its downgrading of relations with Lithuania, saying it’s performing in response to the European nation undermining its “sovereignty and territorial integrity.” This 12 months, after a Lithuanian official visited Taiwan, Beijing additionally introduced sanctions in opposition to her and vowed to “droop all types of trade” along with her ministry.

Because the German delegation touches down on Friday, they are going to be confronted with one other subject, which has develop into the only largest headache for firms throughout China.

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“The largest problem for German companies stays China’s zero-Covid coverage,” stated Maximilian Butek of the German Chamber of Commerce in China.

“The restrictions are suffocating financial development and closely influence China’s attractiveness as a vacation spot for overseas direct funding,” he advised CNN Enterprise.

An aerial view of the urban landscape in Shanghai on Sept. 25. The city underwent a months-long Covid lockdown earlier this year.

He stated the broader restrictions had been so stifling that some firms had moved their regional headquarters to different areas, corresponding to Singapore. “Managing the entire area with out having the ability to journey freely is sort of inconceivable,” he added.

In a quick assertion, Volkswagen advised CNN Enterprise that its CEO was attending the journey since “there have been no direct conferences for nearly three years” as a result of coronavirus pandemic.

“In view of the fully modified geopolitical and world financial scenario, the journey to Beijing presents the chance for a private trade of views,” the automaker stated.

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Regardless of Beijing’s Covid curbs and geopolitical tensions, Germany has each financial incentive to remain near China.

Its dependency on China might be seen throughout industries. Whereas about 12% of whole imports got here from China final 12 months, the nation was accountable for 80% of imported laptops and 70% of cellphones, Sandkamp stated.

The auto, chemical and electrical industries are additionally reliant on Chinese language commerce.

“If we had been to cease buying and selling with China, we might run into hassle,” Sandkamp added.

China made up 40% of Volkswagen’s worldwide deliveries within the first three quarters of this 12 months, and it’s additionally the highest marketplace for different automakers corresponding to Mercedes.

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Wariness amongst some German officers over the nation’s closeness with China may filter right into a extra restrictive commerce coverage, although financial cooperation remains to be in each events’ pursuits.

Final week, Germany’s financial system minister Robert Habeck advised Reuters that the federal government was efforting a brand new commerce coverage with China to cut back dependence on Chinese language uncooked supplies, batteries and semiconductors.

Unidentified sources additionally advised the information company that the ministry was weighing new guidelines that will make enterprise with China much less enticing. The ministry didn’t reply to a request for remark from CNN Enterprise.

However “regardless of all odds and challenges, China stays unequalled by way of market dimension and market development alternatives for a lot of German firms,” stated Butek, of the German Chamber.

He predicted that “the massive majority will keep dedicated to the Chinese language market and is anticipating to broaden their enterprise.”

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Corporations seem like toeing that line. Final week, BASF CEO Martin Brudermüller was quoted in Chinese language state media as saying that Germans ought to “step away from China-bashing and take a look at ourselves a bit self-critically.”

“We profit from China’s insurance policies of widening market entry,” he stated at an organization occasion, in keeping with state-run information company Xinhua, pointing to the development of a BASF chemical engineering web site in southern China.

— CNN’s Simone McCarthy, Chris Stern, Lauren Kent, Claudia Otto and Arnaud Siad contributed to this report.

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Who Are the Millions of Immigrants Trump Wants to Deport?

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Who Are the Millions of Immigrants Trump Wants to Deport?

President-elect Trump has promised to deport millions of people who are living in the United States without permission. This population is commonly referred to as “undocumented,” “unauthorized” or “illegal.” But these terms are not entirely accurate. A significant number are in the country with temporary permissions — though many are set to expire during Mr. Trump’s term.

For the last decade, the best estimates put this population at around 11 million. But the number of people crossing U.S. borders reached a record level in 2022 before falling last year. More recent estimates put the number of people without legal status or with temporary protection from deportation at almost 14 million in 2024.

Many of them have permission to be here, at least for now.

“It’s true that immigration is high, but it’s hard to sort out who is an undocumented immigrant,” said Robert Warren, a demographer and the former statistics director at what was then the U.S. Immigration and Naturalization Service. “Most of the public looks at everyone as undocumented — asylum-seekers, T.P.S., DACA — but it’s important to really figure out who is included.”

The New York Times compared estimates from several research organizations and the federal government, as well as more recent administrative data, to better understand who these immigrants are, how they got here, and which of them may be most vulnerable to deportation under Mr. Trump.

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Those with permission fall under the protection of many different programs.

What is perhaps most surprising — or misleading — about terms like “undocumented” and “unauthorized” is that as many as 40 percent of the people in this group do have some current authorization to live or work legally in the United States, according to one estimate by FWD.us, an immigration advocacy group that hired a demographer to study the population.

In an effort to deter illegal crossings, the Biden administration created a way for migrants to make an appointment to cross the southern border through a smartphone app called CBP One. The administration also created special pathways for people fleeing humanitarian crises in Afghanistan, Cuba, Haiti, Nicaragua, Ukraine and Venezuela and extended temporary protection from deportation for people from certain countries through a program known as Temporary Protected Status.

Immigrants who enter the country through these programs are following the current rules, but Mr. Trump and other Republicans have attacked them and said the programs are illegal.

Millions more people have applied for asylum and are allowed to remain in the country while their cases wend through immigration court — though very few asylum claims are ultimately granted. An Obama-era program known as DACA protects from deportation about 540,000 undocumented people brought to the country as children.

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The Biden administration also deferred deportation for other groups of people, like those who have applied for protection because they were victims of or witnesses to a crime.

Trump has limited power to immediately remove these groups.

Many of the permissions offering humanitarian relief are set to expire during the Trump administration, including some that Mr. Biden recently extended. If the incoming administration were to try to end these protections sooner, it would likely face lawsuits.

Mr. Trump could immediately stop accepting new applications for humanitarian parole. It may be harder to cancel the status of those who are already here.

Nor can Mr. Trump easily deport the 2.6 million people who are awaiting a hearing or a decision on an asylum claim. He could try to hire more immigration judges to decide these cases, but even with a significant infusion of new funds, it would take years to work through the backlog.

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DACA is no longer accepting new applications, and the future of the program is uncertain because of a lawsuit filed by several Republican state attorneys general.

People can have more than one status, and many of these groups overlap.

Many people in the country with temporary permission fall under overlapping programs.

For example, the bulk of the people who arrived through one of the Biden-era humanitarian pathways were granted parole for two years. Many of them now also have Temporary Protected Status. Along with those who used the CBP One app to cross the southern border, they can also apply for asylum within the first year they are in the United States.

These immigrants come from all over the world.

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Note: Not all countries are shown. Data as of 2022. The growth shown for select countries is based on administrative data.

Source: Pew Research Center.

More than half of those who are in the United States without authorization have been here for 10 years or more.

Mexicans remain by far the largest group of people living in the country without authorization, but their share has declined significantly since the 1990s, according to data from the Pew Research Center.

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An influx of people fleeing humanitarian and economic crises came from Central America during Mr. Trump’s first term, and many of them are still in the country.

Mexican officials and other leaders in the region say they have not been able to meet with the incoming administration about its deportation plans.

Few immigrants can be swiftly removed. Even fewer are in custody.

Out of all those who are unauthorized, Mr. Trump has said the top priority for deportation will be criminals. There are around 655,000 noncitizens living in the U.S. with criminal convictions or pending charges, according to data from Immigration and Customs Enforcement, though many of these charges are for minor offenses such as traffic violations.

There were about 39,000 immigrants in ICE custody at the end of December, near capacity for holding facilities.

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The Trump administration may also focus its enforcement efforts on the nearly 1.4 million people whom an immigration judge has already ordered to be removed from the country.

Many of the rest have been living in the country for years and have developed ties to their communities, including having children born in the United States. It would require a significant amount of time and resources to locate and remove them.

Methodology and sources

There is no direct measure of the population living in the United States without authorization, as no major government survey collects information on immigration status.

In order to estimate the size of the unauthorized population, most researchers rely on a method that starts with survey data from the Census Bureau and then adjusts it using administrative records and other data to subtract the number of immigrants who are legally in the country from the total number of foreign-born residents.

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Recent estimates of the unauthorized population

The number of people waiting for an asylum claim comes from the Pew Research Center as of 2023. The number of people with Temporary Protected Status comes from the Congressional Research Service as of September 2024. The number of DACA recipients comes from U.S.C.I.S. as of September 2024. Figures for the number of people who have entered through humanitarian parole from specific countries and through a CBP One appointment at the southern border are from C.B.P as of December 2024. Many people may be counted in more than one of these groups.

Figures for the number of ICE cases pending and paused are for the national docket and come from the agency’s annual report as of September 2024. The number of noncitizens with a criminal charge or conviction comes from ICE, as of Jan. 8.

All numbers are rounded.

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TikTok says it will ‘go dark’ without US government action

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TikTok says it will ‘go dark’ without US government action

TikTok on Friday warned of an imminent blackout for its 170mn US users after the Supreme Court upheld a divest-or-ban law targeting the video app.

The law compels TikTok’s Chinese parent ByteDance to sell the platform by January 19 — the day before Donald Trump returns as US president — or face a nationwide ban.

“There is no doubt that, for more than 170mn Americans, TikTok offers a distinctive and expansive outlet for expression, means of engagement, and source of community,” the Supreme Court wrote in a unanimous opinion published on Friday.

“But Congress has determined that divestiture is necessary to address its well-supported national security concerns regarding TikTok’s data collection practices and relationship with a foreign adversary,” it added.

Following the ruling, Joe Biden’s administration said the outgoing president would not enforce the ban during his remaining days in office.

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“Given the sheer fact of timing, this administration recognises that actions to implement the law simply must fall to the next administration, which takes office on Monday,” the White House said.

But TikTok late on Friday said statements from the White House as well as from the Department of Justice had “failed to provide the necessary clarity and assurance to the service providers that are integral to maintaining TikTok’s availability” in the US.

It added: “Unless the Biden administration immediately provides a definitive statement to satisfy the most critical service providers assuring non-enforcement, unfortunately TikTok will be forced to go dark on January 19.”

Under the terms of the law, without a sale, it will be unlawful for companies to provide services to distribute or host the video app, or they will face fines of $5,000 per user.

It remains unclear whether tech groups such as Apple, Google and Oracle, which offer such services to TikTok in the US, would take the risk of continuing to partner with the company over the weekend. It is also unclear whether the app could also take itself offline deliberately, to protect its partners.

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Apple, Google and Oracle did not respond to requests for comment.

Trump said in a post on Truth Social after the ruling that his “decision on TikTok will be made in the not too distant future, but I must have time to review the situation”, adding that the court’s decision was “expected, and everyone must respect it”.

In a video posted on TikTok following the court’s decision, the group’s chief executive Shou Zi Chew gave no reassurances on whether the app would continue to function in the US on Sunday, but lavished Trump with praise.

“I want to thank president Trump for his commitment to work with us to find a solution that keeps TikTok available in the United States. This is a strong stand for the First Amendment and against arbitrary censorship,” he said, adding the president-elect “truly understands” the platform.

US attorney-general Merrick Garland said the court’s decision “enables the justice department to prevent the Chinese government from weaponising TikTok to undermine America’s national security”.

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Deputy US attorney-general Lisa Monaco said the “next phase of this effort — implementing and ensuring compliance with the law after it goes into effect on January 19 — will be a process that plays out over time”.

TikTok has said any spin-off would be technologically unfeasible, while Beijing has indicated it would oppose any sale.

The court’s ruling was handed down shortly after Trump on Friday said he had discussed TikTok on a call with China’s President Xi Jinping. It was the first call between the leaders in four years.

The Supreme Court’s ruling upholds one of the boldest legislative moves of Biden’s term just days before the Democratic president leaves the White House.

On Thursday, Trump’s incoming national security adviser Mike Waltz said the legislation “allows for an extension as long as a viable deal is on the table. Essentially that buys president Trump time to keep TikTok going”.

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Chinese officials have held preliminary discussions about whether billionaire Elon Musk — now a close ally of Trump — could broker a deal for the app’s sale, the Financial Times reported this week.

Some potential buyers and partners have been circling and lobbying Trump. These include Frank McCourt, an American media and sports businessman, who has established a consortium of investors that would bid for TikTok through his non-profit entity, Project Liberty.

TikTok chief Chew has mounted a charm offensive to cement Trump’s backing, including plans to attend a “victory rally” for the president-elect in Washington on Sunday and his inauguration on Monday, said two people familiar with the matter.

Concerns Beijing could use the app for espionage or to spread propaganda spurred the law, which was passed with strong bipartisan support last year.

Even though China “has not yet leveraged its relationship with ByteDance Ltd to access US TikTok users’ data”, the top court said, there was “no basis for concluding that the government’s determination that China might do so is not at least a ‘reasonable inferenc[e] based on substantial evidence’.”

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TikTok asked the Supreme Court to hear its case after a US appeals court rejected its challenge to the law, as well as its subsequent request to halt the measure pending further court proceedings.

The company sought to throw out the law by arguing it was unconstitutional and it violated First Amendment protections for free speech.

Additional reporting by Aime Williams in Washington and Stephen Morris and Michael Acton in San Francisco

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FAQ: As Trump inauguration moves inside, what to know on the last-minute changes

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FAQ: As Trump inauguration moves inside, what to know on the last-minute changes

President-elect Donald Trump’s inauguration ceremony is moving indoors to the Capitol rotunda due to a freezing blast of artic temps expected in D.C., he announced Friday.

In a post on his social media platform, Truth Social, Trump said he ordered Monday’s inauguration to be moved inside. The Joint Congressional Committee on Inauguration Ceremonies said in a statement that they’ll honor his request.

Of course, this last-minute change is having a major impact on everything from security to the thousands of spectators who booked hotel rooms and bought tickets to inaugural events.

Why is Trump’s second inauguration being held inside?

The D.C. area will be plunged into extreme cold as a piece of the polar vortex — an area of cold air that swirls around the Earth’s poles — brushes by the region.

Following some fresh snow during the day on Sunday, this extra-frigid air will move in Sunday night into Monday morning. Inauguration Day is often cold, but Monday looks to be especially brisk. The high is expected to be roughly 20°, with a low of 6°.

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“There is an Arctic blast sweeping the Country,” Trump posted on Truth Social. “I don’t want to see people hurt, or injured, in any way. It is dangerous conditions for the tens of thousands of Law Enforcement, First Responders, Police K9s and even horses, and hundreds of thousands of supporters that will be outside for many hours on the 20th (In any event, if you decide to come, dress warmly!).”

What parts of the 2025 inauguration will be inside?

Trump’s swearing-in ceremony will be conducted in the rotunda, where he will also deliver his inaugural address.

“The various Dignitaries and Guests will be brought into the Capitol. This will be a very beautiful experience for all, and especially for the large TV audience!” Trump wrote on Truth Social.

Capital One Arena in downtown D.C. will open for people to watch the ceremony and inaugural address on live video.

Then, instead of the traditional parade down Pennsylvania Avenue, the president will join supporters at Capital One Arena after his speech.

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“We will open Capital One Arena on Monday for LIVE viewing of this Historic event, and to host the Presidential Parade,” Trump posted on social media. “I will join the crowd at Capital One, after my Swearing In.”

Outdoor areas on the West Front of the U.S. Capitol, which were intended for tickets guests, will now be closed to those guests Monday, Capitol police said in a statement.

What’s staying the same?

Trump said in his post that other events would stay the same, including the victory rally at Capital One Arena scheduled for Sunday at 3 p.m.

He is still expected to attend three official inaugural balls Monday night.

If people had tickets to the inauguration, will they be able to use them at Capital One Arena?

Some 240,000 people hold tickets to attend inauguration on Monday. However, Capital One arena only can hold 20,000 people.

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News4 is still waiting for information as to what’s going to happen with those ticket holders. As of late Friday afternoon, several congressional social media accounts said they didn’t yet know and that ticket holders should keep checking back.

Will the inauguration security perimeter change?

That’s not yet clear. The U.S. Secret Service tells News4 they have contingency plans for matters like this. They said they may hold a news conference later Friday night or Saturday to go over the changes.

Trump is holding a rally at Capital One Arena on Sunday afternoon, the day before inauguration. As of late Friday afternoon, there was limited fencing set up around the arena. It’s unclear if that will now change.

There may also be a contingency plan being worked on, in case protesters go to the arena after Trump is sworn into office.

Are the planned Metro station closures still happening?

As of late Friday afternoon, Metro officials couldn’t say yet if there were any plans to change the number of Metro stations to be closed or to cancel those closures now that there won’t be a parade.

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The Gallery Place station next to Capital One Arena has entrances on H and F streets NW. Up until now, there were no plans to close those entrances outside the arena.

What other changes will have to happen?

It’s not just Metro and the Trump team that have to change everything. City leaders in D.C. have a lot of things that they have to now figure out.

There are 4,000 police officers coming in from around the country to line the parade route. Those officers will still be used because they still have to help watch the District to ensure everything is safe and to secure the areas around the inaugural balls.

When was the last time the inauguration was held inside?

President Ronald Reagan’s second inauguration in 1985 was held indoors due to a wind chill of -20°. It remains the coldest inauguration on record, with a high temperature of just 7°. The parade was also canceled that year, according to NBC News.

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