Archive for ‘BBC’

14/03/2019

Anger over ‘disgusting’ food found in Chinese school kitchen

Rotten breadImage copyrightSUPPLIED
Image captionRotting bread was among the food found in the kitchen

One of China’s most prestigious high schools has been the target of public anger after piles of expired mouldy food were found in its canteen kitchen.

Mouldy bread, rotting meat and seafood were discovered at the Chengdu No 7 Experimental High School.

One parent told the BBC of his horror and disgust, saying the food was “stinky and disgusting” and compared it to pig slop.

The school has now apologised, saying it is deeply “embarrassed”.

Food safety scandals are not uncommon in China and they often leave authorities scrambling to defuse public outrage.

How did they discover the food?

The scandal first emerged when a small group of parents were on Monday invited to attend a tree planting event at the private high school in Chengdu, the capital city of China’s Sichuan province.

While at the school, a group of parents discovered mouldy bread, rotting meat and seafood items in the canteen kitchen canteen.

It is not clear why exactly they chose to stop by the kitchen, but one parent that the BBC’s Lulu Luo spoke to referenced an incident earlier last November where numerous school children came down with stomach-aches, constipation and various other ailments.

Rotten foodImage copyrightSUPPLIED
Image captionWhat looks like seafood and meat were seen in cardboard boxes

“[The items looked like they had] been in a freezer for years, [it looked] like zombie meat,” the father, who has a daughter and son enrolled in the school said.

“I smelled the pork, it was stinky. [There was] ginger, which looked disgusting too.”

Food strewn on the groundImage copyrightSUPPLIED
Image captionAnd chestnuts were seen strewn on the floor
Rotten foodImage copyrightSUPPLIED
Image captionWhat appears to be tripe is also seen covered in dirt of some kind

According to the father, the private school costs 39,000 yuan (£4,380; $5,800) a year – about 20 times the amount a public school would cost.

“We don’t even let kids have leftover food at home… I spent tens of thousands of dollars and my kids are having pigwash there,” he said.

“I dare not tell my younger son… I’m worried he might not dare to eat canteen food after that. My daughter has been telling me she has a stomach-ache. I [told] her she might have just over exercised.

“It breaks my heart.”

How did parents react?

Horrified, the group of parents shared the pictures on social media, which were soon discovered by other parents.

According to the same parent, the school immediately transported the mouldy food away in two trucks.

One truck was intercepted and stopped by a swarm of angry parents who showed up at the school in protest, he said.

Parents protestingImage copyrightSUPPLIED
Image captionHundreds of parents stormed the school in protest

Videos that emerged on social media on Wednesday showed hundreds of parents angrily protesting outside the school gates.

Police were seen using brute force against them, with one video showing a group of policemen slamming a man against the ground.

In another video, parents can be seen clutching their eyes in pain, with some local news outlets saying police used pepper spray against them.

Chengdu police later posted a statement on Weibo saying 12 people had been arrested.

It said the parents had “severely disrupted” traffic and insulted the police. They were later released on the same day.

Presentational grey line

‘Why should they be trusted with anything?’

Stephen McDonell, BBC China correspondent

People overseas sometimes mistakenly think that there are not many protests in China. Actually, acts of dissent break out quite often and can erupt suddenly.

If family members are harmed, especially when under the care of a school or a kindergarten or a hospital, then orderly, calm communities can transform with scenes of anger spilling out onto the streets.

Faulty medicine, tainted milk powder, investment scams and perceived abuse of students under the care of teachers have all triggered public anger directed at the officials whose job it is to keep the community safe.

If the Chinese Communist Party is not enormously worried about these incidents they have all led to collapse in public faith in the system.

If local officials cannot even manage to give school children lunch which is not covered in mould then why should they be trusted with anything?

Presentational grey line

What has the school said?

The Chengdu school later released an apology, and said it would stop taking food from its current supplier.

The school is one of the most prestigious in China and had in the past been named among China’s “Top 10 outstanding private schools”.

It said that those responsible would be dealt with by the law, saying it was “embarrassed” by the incident and that it would not happen again.

However, the parent the BBC spoke to said the case was not an “isolated incident”, saying that the same supplier catered to “over 100,000 students from across 20 schools”.

Wenjiang district government – the district in Chengdu that the school is in – issued a statement on Wednesday that said eight people responsible for food safety at the school were being investigated by authorities.

It said that 36 students from the school had been admitted into the local hospital for a check-up -all were later discharged.

The district government also said that the raw food would be sent for testing, adding that a “comprehensive and in-depth investigation” would be held into the matter.

Source: The BBC

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10/03/2019

India and Pakistan: How the war was fought in TV studios

An Indian man watches live news channels broadcasting images of Indian Air Force (IAF) Wing Commander pilot Abhinandan Varthaman returning to India from the India-Pakistan Wagah border in New Delhi on March 1, 2019.Image copyrightGETTY IMAGES
Image captionAn Indian man watches the news broadcasting images of the released Indian pilot

As tensions between India and Pakistan escalated following a deadly suicide attack last month, there was another battle being played out on the airwaves. Television stations in both countries were accused of sensationalism and partiality. But how far did they take it? The BBC’s Rajini Vaidyanathan in Delhi and Secunder Kermani in Islamabad take a look.

It was drama that was almost made for television.

The relationship between India and Pakistan – tense at the best of times – came to a head on 26 February when India announced it had launched airstrikes on militant camps in Pakistan’s Balakot region as “retaliation” for a suicide attack that had killed 40 troops in Indian-administered Kashmir almost two weeks earlier.

A day later, on 27 February, Pakistan shot down an Indian jet fighter and captured its pilot.

Abhinandan Varthaman was freed as a “peace gesture”, and Pakistan PM Imran Khan warned that neither country could afford a miscalculation, with a nuclear arsenal on each side.

Suddenly people were hooked, India’s TV journalists included.

Indian Prime Minister Narendra Modi gestures as he speaks during the National Democratic Alliance (NDA) "Sankalp" rally in Patna in the Indian eastern state of Bihar on March 3, 2019.Image copyrightAFP
Image captionIndian PM Narendra Modi is accused of exploiting India-Pakistan hostilities for political gain

So were they more patriots than journalists?

Rajini Vaidyanathan: Indian television networks showed no restraint when it came to their breathless coverage of the story. Rolling news was at fever pitch.

The coverage often fell into jingoism and nationalism, with headlines such as “Pakistan teaches India a lesson”, “Dastardly Pakistan”, and “Stay Calm and Back India” prominently displayed on screens.

Some reporters and commentators called for India to use missiles and strike back. One reporter in south India hosted an entire segment dressed in combat fatigues, holding a toy gun.

And while I was reporting on the return of the Indian pilot at the international border between the two countries in the northern city of Amritsar, I saw a woman getting an Indian flag painted on her cheek. “I’m a journalist too,” she said, as she smiled at me in slight embarrassment.

Print journalist Salil Tripathi wrote a scathing critique of the way reporters in both India and Pakistan covered the events, arguing they had lost all sense of impartiality and perspective. “Not one of the fulminating television-news anchors exhibited the criticality demanded of their profession,” she said.

Media captionIndia and Pakistan’s ‘war-mongering’ media

Secunder Kermani: Shortly after shooting down at least one Indian plane last week, the Pakistani military held a press conference.

As it ended, the journalists there began chanting “Pakistan Zindabad” (Long Live Pakistan). It wasn’t the only example of “journalistic patriotism” during the recent crisis.

Two anchors from private channel 92 News donned military uniforms as they presented the news – though other Pakistani journalists criticised their decision.

But on the whole, while Indian TV presenters angrily demanded military action, journalists in Pakistan were more restrained, with many mocking what they called the “war mongering and hysteria” across the border.

In response to Indian media reports about farmers refusing to export tomatoes to Pakistan anymore for instance, one popular presenter tweeted about a “Tomatical strike” – a reference to Indian claims they carried out a “surgical strike” in 2016 during another period of conflict between the countries.

Media analyst Adnan Rehmat noted that while the Pakistani media did play a “peace monger as opposed to a warmonger” role, in doing so, it was following the lead of Pakistani officials who warned against the risks of escalation, which “served as a cue for the media.”

What were they reporting?

Rajini Vaidyanathan: As TV networks furiously broadcast bulletins from makeshift “war rooms” complete with virtual reality missiles, questions were raised not just about the reporters but what they were reporting.

Indian channels were quick to swallow the government version of events, rather than question or challenge it, said Shailaja Bajpai, media editor at The Print. “The media has stopped asking any kind of legitimate questions, by and large,” she said. “There’s no pretence of objectiveness.”

In recent years in fact, a handful of commentators have complained about the lack of critical questioning in the Indian media.

Indians celebrated on hearing news of the strikesImage copyrightAFP
Image captionIndians celebrated news of the strikes

“For some in the Indian press corps the very thought of challenging the ‘official version’ of events is the equivalent of being anti-national”, said Ms Bajpai. “We know there have been intelligence lapses but nobody is questioning that.”

Senior defence and science reporter Pallava Bagla agreed. “The first casualty in a war is always factual information. Sometimes nationalistic fervour can make facts fade away,” he said.

This critique isn’t unique to India, or even this period in time. During the 2003 Iraq war, western journalists embedded with their country’s militaries were also, on many occasions, simply reporting the official narrative.

Secunder Kermani: In Pakistan, both media and public reacted with scepticism to Indian claims about the damage caused by the airstrikes in Balakot, which India claimed killed a large number of Jaish-e-Mohammad (JeM) militants in a training camp.

Hamid Mir, one of the most influential TV anchors in the country travelled to the area and proclaimed, “We haven’t seen any such (militant) infrastructure… we haven’t seen any bodies, any funerals.”

“Actually,” he paused, “We have found one body… this crow.” The camera panned down to a dead crow, while Mr Mir asked viewers if the crow “looks like a terrorist or not?”

There seems to be no evidence to substantiate Indian claims that a militant training camp was hit, but other journalists working for international outlets, including the BBC, found evidence of a madrassa, linked to JeM, near the site.

A cropped version of a satellite image shows a close-up of a madrasa near Balakot, Khyber Pakhtunkhwa province, Pakistan, March 4, 2019. Picture taken March 4, 2019.Image copyrightPLANET LABS INC./HANDOUT VIA REUTERS
Image captionThe satellite image shows a close-up of a madrassa near Balakot in Pakistan’s Khyber Paktunkhwa

A photo of a signpost giving directions to the madrassa even surfaced on social media. It described the madrassa as being “under the supervision of Masood Azhar”. Mr Azhar is the founder of JeM.

The signpost’s existence was confirmed by a BBC reporter and Al Jazeera, though by the time Reuters visited it had apparently been removed. Despite this, the madrassa and its links received little to no coverage in the Pakistani press.

Media analyst Adnan Rehmat told the BBC that “there was no emphasis on investigating independently or thoroughly enough” the status of the madrassa.

In Pakistan, reporting on alleged links between the intelligence services and militant groups is often seen as a “red line”. Journalists fear for their physical safety, whilst editors know their newspapers or TV channels could face severe pressure if they publish anything that could be construed as “anti-state”.

Who did it better: Khan or Modi?

Rajini Vaidyanathan: With a general election due in a few months, PM Narendra Modi continued with his campaign schedule, mentioning the crisis in some of his stump speeches. But he never directly addressed the ongoing tensions through an address to the nation or a press conference.

This was not a surprise. Mr Modi rarely holds news conference or gives interviews to the media. When news of the suicide attack broke, Mr Modi was criticised for continuing with a photo shoot.

Imran KhanImage copyrightAFP
Image captionImran Khan was praised for his measured approach

The leader of the main opposition Congress party, Rahul Gandhi, dubbed him a “Prime Time Minister” claiming the PM had carried on filming for three hours. PM Modi has also been accused of managing his military response as a way to court votes.

At a campaign rally in his home state of Gujarat he seemed unflustered by his critics, quipping “they’re busy with strikes on Modi, and Modi is launching strikes on terror.”

Secunder Kermani: Imran Khan won praise even from many of his critics in Pakistan, for his measured approach to the conflict. In two appearances on state TV, and one in parliament, he appeared firm, but also called for dialogue with India.

His stance helped set the comparatively more measured tone for Pakistani media coverage.

Officials in Islamabad, buoyed by Mr Khan’s decision to release the captured Indian pilot, have portrayed themselves as the more responsible side, which made overtures for peace.

On Twitter, a hashtag calling for Mr Khan to be awarded a Nobel Peace Prize was trending for a while. But his lack of specific references to JeM, mean internationally there is likely to be scepticism, at least initially, about his claims that Pakistan will no longer tolerate militant groups targeting India.

Source: The BBC

06/03/2019

Huawei: The story of a controversial company

The African Union headquarters in Addis Ababa is a shiny spaceship-like structure that glistens in the afternoon sun.

With its accompanying skyscraper, it stands out in the Ethiopian capital.

Greetings in Mandarin welcome visitors as they enter the lifts, and the plastic palm trees bear the logos of the China Development Bank.

African Union HQ, Addis Ababa

African Union HQ, Addis Ababa

 

Everywhere, there are small indications that the building was made possible through Chinese financial aid.

In 2006, Beijing pledged $200m to build the headquarters. Completed in 2012, everything was custom-built by the Chinese – including a state-of-the-art computer system.

For several years, the building stood as a proud testament to ever-closer ties between China and Africa. Trade has rocketed over the past two decades, growing by about 20% a year, according to international consultancy McKinsey. China is Africa’s largest economic partner.

But in January 2018, French newspaper Le Monde Afrique dropped a bombshell.

It reported that the AU’s computer system had been compromised.

The newspaper, citing multiple sources, said that for five years, between the hours of midnight and 0200, data from the AU’s servers was transferred more than 8,000km away – to servers in Shanghai.

This had allegedly continued for 1,825 days in a row.

Le Monde Afrique reported that it had come to light in 2017, when a conscientious scientist working for the AU recorded an unusually high amount of computer activity on its servers during hours when the offices would have been deserted.

It was also reported that microphones and listening devices had been discovered in the walls and desks of the building, following a sweep for bugs.

The reaction was swift.

Both AU and Chinese officials publicly condemned the report as false and sensationalist – an attempt by the Western media to damage relations between a more assertive China and an increasingly independent Africa.

But Le Monde Afrique said that AU officials had privately expressed concerns about just how dependent they were on Chinese aid – and what the consequences of that could be.

In the midst of all of this, one fact remained largely unreported.

The main supplier of information and communication technology systems to the AU headquarters was China’s best-known telecoms equipment company – Huawei.

The company says it had “nothing” to do with any alleged breach.

Huawei “served as the key ICT provider inside the AU’s headquarters”, said Danielle Cave of the Australian Strategic Policy Institute, in a review of the alleged incident.

Huawei headquarters in Shenzhen, China

Huawei headquarters in Shenzhen, China

“This doesn’t mean the company was complicit in any theft of data. But… it’s hard to see how – given Huawei’s role in providing equipment and key ICT services to the AU building and specifically to the AU’s data centre – the company could have remained completely unaware of the apparent theft of large amounts of data, every day, for five years.”

There is no evidence to indicate that Huawei’s telecoms network equipment was ever used by the Chinese government – or anyone else – to gain access to the data of their customers.

Indeed, no-one has ever gone on record to confirm that the AU system was compromised in the first place.

But these reports played into years of suspicions about Huawei – that a large Chinese company might find itself unduly influenced by the Chinese government.

Ren and the rise of Huawei

“When I first started out 30 years ago… we didn’t really have any telephones. The only phones we had were those hand-cranked phones that you see in old World War II films. We were pretty undeveloped then.”

Huawei’s founder and chairman Ren Zhengfei is reminiscing to the BBC about the origins of the world’s second-biggest smartphone firm, while sitting in the Huawei headquarters in Shenzhen – a symbol of the success that he’s worked his whole lifetime for.

A long marbled staircase, covered in plush red carpet, greets you as you first walk in.

At the top of the stairs, a giant painting depicts a traditional Chinese New Year scene.

Inside Huawei's Shenzhen HQ

Inside Huawei’s Shenzhen HQ

A few kilometres away in Dongguan, Huawei’s latest campus is even more eye-catching.

The site – designed to accommodate the company’s 25,000 R&D staff – comprises 12 “villages”, each of which recreates the architecture of a different European city, among them Paris, Bologna and Granada.

It’s as if Silicon Valley had been re-imagined by Walt Disney. Long corridors of Roman pillars and picturesque French cafes adorn the campus, with a train connecting the different areas, running through manicured gardens and past an artificial lake.

It’s a world away from the environment that Mr Ren found himself in when he first started the company in 1987. “I founded Huawei when China began to implement its reform and opening up policy,” he says. “At that time, China was shifting from a planned economy to a market economy. Not only people like myself, but even the most senior government officials, did not have the vaguest idea of what a market economy was. It seemed it was hard to survive.”

Ren was born in 1944 in Southern China – a tumultuous, chaotic place, one of the poorest regions in an already destitute country.

For a long time, hardship was all he ever knew.

He was from a family of seven children. “They were very poor,” says David De Cremer, who has co-written a book on Ren and Huawei.

“I think hardship is something that you can see throughout his life, and which he keeps emphasising himself.”

To escape that life of poverty and drudgery, Ren did what many young Chinese men of that era did. He joined the army.

Soldiers from the People's Liberation Army, 1972

Soldiers from the People’s Liberation Army, 1972

“I was a very low-ranking officer in the People’s Liberation Army,” he says. “I served in an ordinary construction project, not a field unit. At the time, I was a technician of a company in the military, and then I became an engineer.”

He left the military in 1983 when China began to downsize its forces, and went into the electronics business.

By his own admission, he wasn’t a great businessman at first.

“I was someone who had been in the military all my life at the time, used to doing what I was told,” he says. “Suddenly, I began to work in a market economy. I was at a total loss. So I too suffered losses, I too was deceived, and I was cheated.”

But he was quick to learn, and was a keen student of Western business practices and European history.

“I did research on what exactly a market economy was all about,” he says. “I read books on laws, including those about European and US laws. At that time, there were very few books on Chinese laws, and I had to read those on European and US laws.”

Five years later, he founded Huawei – the name can be translated as “splendid achievement” or “China is able” – to sell simple telecoms equipment to the rural Chinese market. Within a few years, Huawei was developing and producing the equipment itself.

Sometime in the early 90s, Huawei won a government contract to provide telecoms equipment for the People’s Liberation Army.

By 1995, the company was generating sales of around US$220,000, mainly from selling to the rural market.

The following year Huawei was given the status of a Chinese “national champion”. In practice, this meant the government closed the market to foreign competition.

At a time when China’s economy was growing by an average of 10% per year, this was no small advantage. But it was only when Huawei started to expand overseas in 2000, that it really saw its sales soar.

In 2002, Huawei made US$552m from its international market sales. By 2005 its international market contracts exceeded its domestic business for the first time.

Ren’s early days in business instilled in him a desire to protect his company from the whims and fancies of the stock market. Huawei is privately held and employee-owned. This gave Ren the power to plough more money back into research and development. Each year, Huawei spends US$20bn on R&D – one of the biggest such budgets in the world.

“Publicly listed companies have to pay a lot of attention to their balance sheets,” he says. “They can’t invest too much, otherwise profits will drop and so will their share prices. At Huawei, we fight for our ideals. We know that if we fertilise our ‘soil’ it will become more bountiful. That’s how we’ve managed to pull ahead and succeed.”

One story from the early days of the company tells how Ren was cooking for his staff (he loves to cook, or so the story goes). Suddenly he rushed out of the kitchen and announced to the room: “Huawei will be a top three player in the global communications market 20 years from now!”

And that’s exactly what happened. In fact, those ambitions were surpassed.

Today, Huawei is the world’s biggest seller of network telecommunications equipment.

From aspiring to be a company like Apple, it now sells more smartphones than Apple.

But shadows have continued to loom over Huawei’s international success.

Ren and Huawei’s links to the Chinese Communist Party have raised suspicions that the company owes its meteoric rise to its powerful political connections in China. The US has accused Huawei of being a tool of the Chinese government.

It’s an accusation which Ren denies. “Please don’t think that Huawei has become what it is today because we have special connections,” he says. “Even 100% state-owned companies have failed. Do good connections mean you will succeed then? Huawei’s success is still very much due to our hard work.”

The case against

It was 1 December 2018. US President Donald Trump and China’s President Xi Jinping were dining on grilled sirloin followed by caramel rolled pancakes at the G20 summit in Buenos Aires.

They had a lot to discuss. The US and China were in the middle of a trade war – imposing tariffs on each other’s goods – and growth forecasts for both countries had recently been cut as a result. This was adding to the fear of a slowing global economy.

In the event, the two leaders agreed a truce in the trade war, with Donald Trump tweeting that “Relations with China have taken a BIG leap forward!”

Xi Jinping and Donald Trump at dinner, December 2018

Xi Jinping and Donald Trump at dinner, December 2018

But thousands of kilometres north in Canada, an arrest was taking place that would throw doubt on this rapprochement.

Meng Wanzhou, Huawei’s chief financial officer and Ren Zhengfei’s eldest daughter, had been detained by Canadian officials while transferring between flights at Vancouver airport.

The arrest had come at the request of the US, who accused her of breaking sanctions against Iran.

“When she was detained, as her father, my heart broke,” says Ren, visibly emotional. “How could I watch my child suffer like this? But what happened, has happened. We can only depend on the law to solve this problem.”

Meng Wanzhou being driven to court in Canada

Meng Wanzhou being driven to court in Canada

Huawei’s problems were just beginning. Nearly two months later, the US Department of Justice filed two indictments against Huawei and Ms Meng.

Under the first indictment, Huawei and Ms Meng were charged with misleading banks and the US government about their business in Iran.

The second indictment – against Huawei – involved criminal charges including obstruction of justice and the attempted theft of trade secrets.

Both Huawei and Ms Meng deny the charges.

January 2019: Acting US attorney general Matthew Whittaker announces charges against Huawei and Meng Wanzhou

January 2019: Acting US attorney general Matthew Whittaker announces charges against Huawei and Meng Wanzhou

The charge of stealing trade secrets centres on a robotic tool – developed by T-Mobile – known as Tappy.

According to legal documents, Huawei had tried to buy Tappy, a device which mimicked human fingers by tapping mobile phone screens rapidly to test responsiveness.

T-Mobile was in partnership with Huawei at the time, but it rebuffed the Chinese firm’s offers, fearing it would use the technology to make phones for T-Mobile’s competitors.

It’s alleged that one of Huawei’s US employees then smuggled Tappy’s robotic arm into his satchel so that he could send its details to colleagues in China.

After the alleged theft was discovered, the Huawei employee claimed that the arm had mistakenly fallen into his bag.

Huawei claimed that the employee had been acting alone, and the case was settled out of court in 2014. But the latest case is built on email trails between managers in China and the company’s US employees, linking Huawei management to the alleged theft.

The indictment also details evidence of a bonus scheme from 2013, offering Huawei employees financial rewards for stealing confidential information from competitors.

Huawei has denied any such scheme exists.

Meng Wanzhou, photographed in 2014

Meng Wanzhou, photographed in 2014

This is not the first time that Huawei has been accused of stealing trade secrets. Over the years companies like Cisco, Nortel and Motorola have all pointed the finger at the Chinese firm.

But US fears about Huawei are about much more than industrial espionage. For more than a decade, the US government has seen the company as little more than an arm of the Chinese Communist Party.

These concerns have been brought to the fore with the advent of “fifth generation” or 5G mobile internet, which promises download speeds 10 or 20 times faster than at present, and much greater connectivity between devices.

As the world’s biggest telecoms infrastructure provider, Huawei is one of the companies best placed to build new 5G networks. But the US has warned its intelligence partners that awarding contracts to Huawei would be tantamount to allowing the Chinese spy on them.

US Secretary of State Mike Pompeo recently cautioned against Huawei, saying, “If a country adopts this and puts it in some of their critical information systems, we won’t be able to share information with them.”

US Secretary of State Mike Pompeo

US Secretary of State Mike Pompeo

The UK, Germany and Canada are reviewing whether Huawei’s products pose a security threat.

Australia went a step further last year, and banned equipment suppliers “likely to be subject to extrajudicial directions from a foreign government”.

Huawei was not mentioned by name, but Danielle Cave of the Australian Strategic Policy Institute says the company posed a national security risk because of its government links.

She cites an article in Chinese law that makes it impossible for any company to refuse to help the Chinese Communist Party in intelligence gathering.

“Admittedly, what is missing from this debate is the smoking gun,” she says.

“For the average person who has a Huawei smartphone it’s not a big deal. But if you’re a Western government that has key national security to protect – why would you allow this access to a company that is in the political system that China is in?”

For his part, Ren says that Huawei’s resources have never and would never be used to spy for the Chinese government.

“The Chinese government has clearly said that it won’t ask companies to install backdoors,” he says. A “backdoor” is a term used to describe a secret entry point in software or a computer system that gives access to the person or entity who installed it to the inner workings of the system.

“Huawei will not do it either,” he continues. “Our sales revenues are now hundreds of billions of dollars. We are not going to risk the disgust of our country and our customers all over the world because of something like that. We will lose all our business. I’m not going to take that risk.”

Xi’s China

Zhou Daiqi is Huawei’s chief ethics and compliance officer.

He’s been with the company for nearly 25 years, in a number of different positions – chief engineer, director of the hardware department, head of the research centre in Xi’an, according to his biography on the company’s website. He is also understood to combine his high-ranking executive duties with another role – party secretary of Huawei’s Communist Party committee.

All companies in China are required by law to have a Communist Party committee.

Zhou Daiqi's profile on Huawei's website

Zhou Daiqi’s profile on Huawei’s website

The official line is that they exist to ensure that employees uphold the country’s moral and social values. Representatives of the committee are also often tasked with helping workers with financial problems.

But critics of China’s one-party system argue that they allow the state to exert control on corporate China. And they say the level of this control has increased in recent years.

“[President] Xi Jinping is exerting greater control over the business community in China,” says Elliott Zaagman, who regularly advises Chinese companies on their PR strategy. “As these companies gain power and influence overseas, the party doesn’t want to lose control over them.”

Ren, however, argues that the role of Huawei’s Communist Party committee is far less important than many in the West believe.

“[It] serves only to educate its employees,” he says. “It is not involved in any business decisions.”

In China, most chief executives are Communist Party members.

Every year, they dutifully turn up to the National People’s Congress along with local and national party chiefs, officials and chief executives.

It’s where the big economic decisions are voted on – although no proposal is put forward which hasn’t already been agreed upon.

Still, big CEOs come to show their commitment to the party, and to contribute to working papers that are meant to help the government understand the concerns of the business community.

Being a member of the party is very much a networking opportunity – in the way one would join a business association.

Elliott Zaagman argues that this is a system that demands loyalty.

“There is no separation from the party and the state,” he says.

“The system in China encourages the lack of transparency in companies like Huawei.”

The worry is that these close links mean that if the Communist Party asked a company to do something, they would have no choice but to comply.

And if that company is one that is involved in sensitive global telecoms infrastructure projects, it’s easy to see why Western observers would be worried.

There is no evidence to indicate that Huawei is in any way under the orders of the Chinese government, or that Beijing has any plans to dictate business plans and strategy at Huawei – particularly when it comes to spying.

But the way in which the Chinese Communist Party has robustly defended Huawei has raised questions about how independent the company is of its influence.

For example, Beijing stated that Ms Meng’s detention was a rights abuse .

And while her extradition case to the US was moving forward, China detained two Canadian citizens and accused them of stealing state secrets. Critics say the detentions are linked to Ms Meng’s arrest.

December 2018: Chinese police patrol outside Canada's embassy in Beijing

December 2018: Chinese police patrol outside Canada’s embassy in Beijing

While not commenting on the arrest of the Canadians, Ren says China’s defence of Huawei is understandable.

“It is the Chinese government’s duty to protect its people,” he says. “If the US attempts to gain competitive edge by undermining China’s most outstanding hi-tech talent, then it is understandable if the Chinese government, in turn, protects its hi-tech companies.”

Over the past few years, there have been signs of a bigger push by the government to get private companies, and in particular tech firms, to cooperate with party rules – even when they are firmly resistant.

 A Didi Chuxing logo adorns a building in Hangzhou, China

 A Didi Chuxing logo adorns a building in Hangzhou, China

China’s ride-hailing giant Didi Chuxing’s troubles are an example of the struggles Chinese firms face when they try to uphold their independence in the face of government pressure.

Chinese attitudes to data collection and data privacy are different to those in the West – many people don’t care if businesses have access to their data, arguing that it adds to the convenience of life and work.

Government access to data in China is not the free-for-all that many outside of China assume it to be

Samm Sacks, CSIS

So it wasn’t unusual when, after the murders of two of its passengers by Didi drivers, regulators used the scandal to force Didi to share more corporate data with the government. But Didi resisted – citing customer privacy. Under Chinese law, it had no choice but to comply.

When it did, it handed over “three boxes of data printed on paper, including 95 hard copies for authorities to review”.

According to Samm Sacks of the Center for Strategic and International Studies (CSIS), the case demonstrates that “government access to data in China is not the free-for-all that many outside China assume it to be”.

She says this indicates that there appears to be “a kind of tug of war between the government and companies over data”.

How this plays out will determine how Chinese companies are viewed by foreign governments when they do business overseas.

Companies like Huawei have grown up in a system where to survive and thrive they needed strong links to the Chinese government – there was and is no other choice. But these links could harm their reputation abroad.

“It’s two different systems,” says Zaagman. “Think of it like an electrical outlet. China’s plug doesn’t fit in to the outlets we have in the West.”

What’s at stake

“Basically you want to connect to everything that can be connected.”

Zhu Peiying, head of Huawei’s 5G wireless labs, is showing off devices that can connect to the new technology. From a smart toothbrush that collects data about how well you brush your teeth, to a smart cup that reminds you when you should drink some water, this is a world where everything you can think of is being measured and analysed.

At its most sophisticated, everything in entire cities would be connected – driverless cars, the temperature of buildings, the speed of public transport – the list is endless.

Huawei is thought to be a year ahead of its competitors in terms of its technological expertise and what it can offer customers, according to industry sources.

It’s also thought that the company can offer prices that are about 10% cheaper than its competitors, although critics claim this is because of state support.

Ren dismisses this, saying that Huawei doesn’t receive government subsidies.

He says the real reason behind the US resistance to Huawei is its superior technology.

“There’s no way the US can crush us,” he says. “The world needs Huawei because we are more advanced. Even if they persuade more countries not to use us temporarily we could just scale things down a bit.”

Many analysts say that Huawei’s exclusion from US networks could actually cause the US to fall behind in its 5G capabilities.

“It would mean we wouldn’t be able to participate in any blended network [using Huawei] in Europe or Asia,” says Samm Sacks of CSIS. “That would put us at a significant disadvantage.”

What this would mean in reality is a world of two internets – or what analysts are calling a “digital iron curtain” – dividing the world into parts that do business with Chinese companies like Huawei, and those that don’t.

Because of US pressure on its allies, Huawei has been on an aggressive public relations campaign to win over customers and government stakeholders.

In recent days, Vodafone’s boss Nick Read called on the US to share any evidence it has about Huawei, while Andrus Ansip, the European Commission’s vice president for the digital single market, said in a tweet that he had met with Huawei’s rotating CEO to discuss the importance of being open and transparent, as they explored ways of working together.

But suspicions about Huawei remain.

One security firm reports a sharp rise in inquiries by Asian government clients about Huawei.

“Some have asked us how much they should worry about whether Huawei is really a liability,” says an analyst who consults to Asian governments, on condition of anonymity.

Ren is sanguine about such concerns.

“For countries who believe in them [suspicions about Huawei] we will hold off,” he says. “For countries who feel Huawei is trustworthy, we may move a little faster. The world is so big. We can’t walk across every corner of it.”

But this is about more than just one company or one CEO and his family.

Increasingly, this is perceived as a battle between two world orders, and which one is the future.

In the early days of China opening up, US presidents like George HW Bush espoused the merits of engagement.

“No nation on Earth has discovered a way to import the world’s goods and services while stopping foreign ideas at the border,” he said in a 1991 speech. “Just as the democratic idea has transformed nations on every continent, so, too, change will inevitably come to China.”

1989: George HW Bush in Beijing - he encouraged economic engagement with China

1989: George HW Bush in Beijing – he encouraged economic engagement with China

Previous US administrations believed that economic engagement in China would lead to China following a freer, more “liberal” path.

There’s no denying China has made remarkable strides in the past 40 years. The economy grew by an annual average of 10% for three decades, helping to lift 800 million people out of poverty. It is now the second-largest economy in the world, only surpassed by the US.

Some estimates put China’s economy ahead of America’s by 2030.

It achieved this while maintaining one-party rule and the supremacy of the Communist Party.

But its success has raised concerns that it is only possible with a huge amount of government control over the country’s companies. The fear is that control could be used to achieve the Communist Party’s goals – which are at this point unclear.

“It’s a double-edged sword for China,” says Danielle Cave. “[Because of its laws] the Chinese Communist Party has made it virtually impossible for Chinese companies to expand without attracting understandable and legitimate suspicion.”

Added to this, China has become more authoritarian under Xi Jinping’s rule.

President Xi Jinping 

President Xi Jinping 

“Xi is systematically undermining virtually every feature that made China so distinct and helped it work so well in the past,” writes Jonathan Tepperman, editor in chief of Foreign Policy.

“His efforts may boost his own power and prestige in the short term and reduce some forms of corruption. On balance, however, Xi’s campaign will have disastrous long-term consequences for his country and the world.”

But Ren dismisses this, insisting that China is more open than ever before.

“If this meeting took place 30 years ago,” he says of our interview, “it would have been very dangerous for me. Today, I can be straightforward when answering difficult questions. This shows that China has a more open political environment.”

Still, Ren is hopeful of the direction China will take in the future.

“China has more or less tried to close itself off from the outside world for 5,000 years,” he says. “Yet we had found ourselves poor, lagging behind other nations. It was only in the past 30 years since Deng Xiaoping opened China’s doors to the world that China has become more prosperous. Therefore, China must continue to move forward on the path of reform and opening-up.”

In one of Huawei’s vast campus sites across Shenzen, lies a man-made lake. Swimming in these serene waters are two black swans.

There is a story that Ren put the birds here to remind employees of “black swan” events – unpredictable and catastrophic financial eventualities that are impossible to prepare for. He dismisses this as an urban myth, but it’s hard not to read something into it.

For Huawei, and Ren, these are highly uncertain times with no way of telling what lies ahead.

Source: The BBC

21/02/2019

India Catholic Cardinal Oswald Gracias ‘failed abuse victims’

Cardinal Oswald Gracias, Archbishop of Bombay, during the launch of the bishops' declaration on climate justice on 26 October 2018 in Rome, Italy.Image copyrightGETTY IMAGES
Image captionCardinal Oswald Gracias told the BBC it pained him to hear accusations that he had neglected victims of alleged abuse

One of the Catholic Church’s most senior cardinals has admitted that he could have better handled sexual abuse allegations that were brought to him.

Oswald Gracias, the Archbishop of Mumbai is one of four men organising a major Vatican conference on child abuse this week.

We found two separate cases where the cardinal, who is tipped by some to possibly become the next Pope, is claimed to have failed to respond quickly or offer support to the victims.

Victims and those who supported them allege that Cardinal Gracias did not take allegations of abuse seriously when they were reported to him.

India’s Catholics say there is a culture of fear and silence in the Catholic Church about sexual abuse by priests. Those who have dared to speak out say it has been an ordeal.

‘My heart was hurt’

The first case dates back to 2015 in Mumbai.

A woman’s life changed when her son returned from Mass at the church and told her that the parish priest had raped him.

“I could not understand what should I do?” she said. She did not know this yet, but this event would put her on a collision course with the Catholic Church in India.

Media captionWhy is India’s Catholic church silent about sexual abuse?

The man she reached out to for help was and remains one of the most senior representatives of the Church.

It was nearly 72 hours after the alleged rape that the family briefly met Cardinal Gracias, then president of the Catholic Bishop’s Conference of India and Federation of Asian Bishops’ Conferences.

The issue of sexual abuse within the Church is being called the Vatican’s biggest crisis in modern times, and the integrity of the Catholic Church is said to ride on the outcome of this conference.

Pope Francis, flanked by Archbishop of Bombay Cardinal Oswald Gracias (L) and other bishops, arrives at Synod Hall in Vatican City on 24 October 2015Image copyrightGETTY IMAGES
Image captionPope Francis with Cardinal Oswald Gracias (fourth from left)

Over the past year, the Catholic Church has been reeling under multiple allegations of sexual abuse around the world.

But while abuse claims have made headlines in North and South America, Europe and Australia, very little is known about the problems in Asian countries. In countries such as India there is a social stigma about reporting abuse.

Among Christians, who are a minority of nearly 28 million people, a culture of fear and silence makes it impossible to gauge the true scale of the problem.

Cardinal Blase Cupich of Chicago – a colleague of Cardinal Gracias on the four-member organising committee – has promised that decisive action in Rome and in dioceses worldwide will follow after the meeting so as to safeguard children and bring justice to the victims.

Cardinal Gracias will open the second day of the summit with a conversation about accountability in the Church.

Media captionBrigitte, a survivor of child sex abuse by a chaplain, explains why she is ready to speak now

This vital role given to him during this crucial conference has made some in India unhappy.

They say his track record in protecting children and women from abusers is questionable. Those we have spoken to who have taken cases to him say they received little support from him.

The mother of the abused boy said: “I told the cardinal about what the priest had done to my child, that my child was in a lot of pain. So he prayed for us and told us he had to go to Rome…my heart was hurt in that moment.

“As a mother, I had gone to him with great expectations that he would think about my son, give me justice, but he said he had no time, he only cared about going to Rome.”

The family say they requested medical help but were offered none.

The cardinal told us it pained him to hear this, and that he was not aware that the boy needed medical help – and if he had been asked, he would have immediately offered it.

The Archbishop's house in Mumbai

The cardinal admits he left for Rome that night without alerting the authorities.

By failing to call the police, Cardinal Gracias may have violated India’s Protection of Children from Sexual Offences Act, 2012 (POCSO).

The provisions of this law state that if the head of any company or institution fails to report the commission of an offence in respect of a subordinate under his control, they shall be punished with imprisonment for a term which may extend to one year, and with a fine.

The cardinal told us he had telephoned his bishop the next day, who told him the family had subsequently informed the police themselves.

Asked if he regretted not calling the police personally at the time, he said: “You know I’m being honest, I’m not 100% sure… but I must reflect on that. I admit whether immediately, the police should have got involved, sure.”

He says he was under a duty to evaluate the credibility of accusations by speaking to the accused man.

Emerging from that meeting, the family decided to go to a doctor.

“He took one look at my boy and said that something has happened to him. This is a police case. Either you report it or I will… so we went to the police that night,” the mother said.

A police medical examination found that the child had been sexually assaulted.

Indian Catholics pray during Friday afternoon service at the Holy Name Cathedral in Mumbai on 15 March 2013.Image copyrightGETTY IMAGES
Image captionIndia is home to about 19 million Catholics

A current priest who spoke to us on the condition of anonymity said this was not the first time allegations about this priest had been brought to the cardinal’s attention.

“I met him some years before this [alleged] incident,” the priest told us.

“There were strong rumours about [the accused priest] in the diocese, and like these are about abuse that is taking place. And yet he seems to be moving from one place to another, one parish to another. The cardinal told me directly that he is not aware directly of all these things.”

The cardinal says he cannot recall the conversation. He says he did not recollect any “cloud of suspicion” over the man.

‘A lonely battle’

As part of our investigation, we wanted to see if there were other allegations of the cardinal being slow to act.

We found an instance dating back almost a decade, brought to his attention just a couple of years after becoming archbishop of Mumbai.

Virginia Saldanha.
Image captionCatholic activist Virginia Saldanha says three legal notices were sent to the cardinal, threatening court action unless took action about the claims of abuse

In March 2009, a woman approached him with accusations of sexual abuse by another priest who conducted retreats.

She says that he took no action against the priest so she reached out to a group of female Catholic activists, who say they forced the cardinal to act.

Under pressure, he finally set up an enquiry committee in December 2011. Six months after the enquiry, there was still no action and the accused priest continued working in his parish.

“We had to send the cardinal three legal notices to act, threaten to take the matter to the courts if he did not act,” said Virginia Saldanha, a devout Catholic who has worked on the women’s desk of multiple Church-affiliated positions for over two decades.

When the cardinal replied, he said: “The priest is not listening to me.”

Blurred image of family
Image captionThe family says they have been ostracised from the church and isolated within their communities since reporting the sexual assault

During the time, Saldanha said she had to leave the church because “I could not bear to see that man giving Mass in the church. I did not feel like going there.”

The priest was eventually removed from his parish, but the reasons for his departure were never made public.

The punishment, decided by the cardinal personally in October 2011, was a “guided retreat and therapeutic counselling”.

When we pressed him about the speed of process and punishment, the cardinal said it was a “complicated case”.

After a stay in the seminary, the accused priest was briefly given a parish again and still conducts retreats.

Meanwhile, the family of the allegedly raped minor feel abandoned by the institution that they had built their lives around.

“It has been a lonely battle,” the mother concedes. They say they have been ostracised from the church and isolated within their communities.

“After complaining to the police, when we would go into church, people would refuse to talk to us, to sit next to us during Mass. If I went to sit next to someone… they would get up and leave,” she said.

The hostility she encountered eventually “made us leave the church. But it got so difficult for us that we eventually had to change our home as well. We left it all behind”.

Church members say that it is this hostility that makes it harder for victims and their families to speak up.

Caught between an apparently unsupportive clergy and hostile social network, many find their voices faltering.

Source: The BBC

19/02/2019

The US cannot crush us, says Huawei founder

The founder of Huawei has said there is “no way the US can crush” the company, in an exclusive interview with the BBC.

Ren Zhengfei described the arrest of his daughter Meng Wanzhou, the company’s chief financial officer, as politically motivated.

The US is pursuing criminal charges against Huawei and Ms Meng, including money laundering, bank fraud and stealing trade secrets.

Huawei denies any wrongdoing.

Mr Ren spoke to the BBC’s Karishma Vaswani in his first international broadcast interview since Ms Meng was arrested – and dismissed the pressure from the US.

“There’s no way the US can crush us,” he said. “The world cannot leave us because we are more advanced. Even if they persuade more countries not to use us temporarily, we can always scale things down a bit.”

However, he acknowledged that the potential loss of custom could have a significant impact.

What else did Mr Ren say about the US?

Last week, US Secretary of State Mike Pompeo warned the country’s allies against using Huawei technology, saying it would make it more difficult for Washington to “partner alongside them”.

Australia, New Zealand, and the US have already banned or blocked Huawei from supplying equipment for their future 5G mobile broadband networks, while Canada is reviewing whether the company’s products present a serious security threat.

Mr Ren warned that “the world cannot leave us because we are more advanced”.

“If the lights go out in the West, the East will still shine. And if the North goes dark, there is still the South. America doesn’t represent the world. America only represents a portion of the world.”

What did Mr Ren say about investment in the UK?

The UK’s National Cyber Security Centre has decided that any risk posed by using Huawei technology in UK telecoms projects can be managed.

Many of the UK’s mobile companies, including Vodafone, EE and Three, are working with Huawei to develop their 5G networks.

They are awaiting a government review, due in March or April, that will decide whether they can use Huawei technology.

Commenting on the possibility of a UK ban, Mr Ren said Huawei “won’t withdraw our investment because of this. We will continue to invest in the UK.

“We still trust in the UK, and we hope that the UK will trust us even more.

“We will invest even more in the UK. Because if the US doesn’t trust us, then we will shift our investment from the US to the UK on an even bigger scale.”

Huawei boothImage copyrightGETTY IMAGES
Image captionHuawei has denied that it poses any risk to the UK or any other country

What does Mr Ren think about his daughter’s arrest?

Mr Ren’s daughter Meng Wanzhou, Huawei’s chief financial officer, was arrested on 1 December in Vancouver at the request of the US, and is expected to be the subject of a formal extradition request.

In total, 23 charges are levelled against Huawei and Ms Weng. The charges are split across two indictments by the US Department of Justice.

The first covers claims Huawei hid business links to Iran – which is subject to US trade sanctions. The second includes the charge of attempted theft of trade secrets.

Mr Ren was clear in his opposition to the US accusations.

“Firstly, I object to what the US has done. This kind of politically motivated act is not acceptable.

“The US likes to sanction others, whenever there’s an issue, they’ll use such combative methods.

“We object to this. But now that we’ve gone down this path, we’ll let the courts settle it.”

Meng Wanzhou, Huawei Technologies Co Ltd"s chief financial officer (CFO), is seen in this undated handout photo obtained by Reuters December 6, 2018.Image copyrightREUTERS
Image captionMeng Wanzhou was arrested in Vancouver last December

What did Mr Ren say about Chinese government spying?

Huawei, which is China’s largest private company, has been under scrutiny for its links to the Chinese government – with the US and others expressing concern its technology could be used by China’s security services to spy.

Under Chinese law, firms are compelled to “support, co-operate with and collaborate in national intelligence work”.

But Mr Ren said that allowing spying was a risk he wouldn’t take.

“The Chinese government has already clearly said that it won’t install any backdoors. And we won’t install backdoors either.

“We’re not going to risk the disgust of our country and of our customers all over the world, because of something like this.

“Our company will never undertake any spying activities. If we have any such actions, then I’ll shut the company down.”

Presentational grey line

Is Huawei part of the Chinese state?

Analysis – Karishma Vaswani, BBC Asia business correspondent – Shenzhen

For a man known as reclusive and secretive, Ren Zhengfei seemed confident in the conviction that the business he’s built for the last 30 years can withstand the scrutiny from Western governments.

Mr Ren is right: the US makes up only a fraction of his overall business.

But where I saw his mood change was when I asked him about his links to the Chinese military and the government.

He refused to be drawn into a conversation, saying only that these were not facts, simply allegations.

Still, some signs of close links between Mr Ren and the government were revealed during the course of our interview.

He also confirmed that there is a Communist Party committee in Huawei, but he said this is what all companies – foreign or domestic – operating in China must have in order to abide by the law.

Source: The BBC

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