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Internet addiction on the rise among Malaysian youths, Asians one of the most addicted to the Internet

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Enough evidence to show links to anxiety, decreased job productivity, says expert. CYBERJAYA: A 14-year-old boy loved gaming so much that he did not leave his home for half a year until his parents hauled him to therapy for Internet addiction. This sounds like a story that happens in Japan, China or South Korea, where teenagers have died from binging on their computers. But this case happened right here in Kuala Lumpur. At the International Society of Internet Addiction (Isia) Conference here, researchers said they were most worried that Malaysian youth were increasingly using the Internet in excess, with local studies revealing that 37% of Malaysian parents felt their children’s online life was interfering with their home and school obligations while 18% said their children were sacrificing basic social activities. The research, led by child psychologist and Isia spokesperson Dr Norharlina Bahar, found that males under the age of 24, from the Klang Valley, Ipoh or Penang, were the most susceptible to Internet addiction in Malaysia. “Most spend time on online games and browsing social media and there is enough evidence to show links to anxiety, depression, physical health problems, school disconnection, unemployment, decreased job productivity and social isolation,” she said. Studies have also found frequent use of the Internet could translate to low self-esteem, depression, boredom and attention-deficit hyperactive disorder. “There is no denying that Internet eases our life but when it affects your mental health capacity and interferes with your day-to-day work, then you need help,” she added. In the case of the young boy, Dr Norharlina said he became irritable and angry when he was cut off from the digital world by his parents as part of the treatment. “This is becoming a bigger problem now,” she said.

China space economy developing rapidly, the most accurate atomic clock in the world

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The commercialization of rocket launches will boost the industry by bringing space tourism income and attracting private investment, experts said. ChinaRocket Co. Ltd, a subsidiary of China Academy of Launch Vehicle Technology, the country's largest developer of ballistic missiles and carrier rockets, was established on Wednesday, marking the commercialization of China's space industry, the Xinhua News Agency reported. "Chinese commercial space enterprises are lagging behind the global market due to lack of complete production chain in the commercial space industry and experience in commercial space activities like space tourism," Li Hong, president of the academy, said at a press conference on Wednesday. "Commercializing rocket launches will help develop the industry as many private companies will be interested in the sector," Jiao Weixin, a professor at the School of Earth and Space Science of Peking University, told the Global Times on Thursday. Jiao said the establishment of the company signals that State-controlled space industry is stepping into ordinary people's daily life. Han Qingping, president of ChinaRocket, said at the press conference that the company would focus on keeping the cost 30 percent lower than an average launch through the "standardization of the interface between satellite and rocket as well as advance preparation."

Johor’s biggest corruption cases: land and housing scandal, slapped with 33 counts of graft

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After weeks of investigation, state executive councillor Datuk Abd Latif Bandi is finally brought to court to face 33 counts of graft. The land and housing scandal - one of Johor’s biggest corruption cases - is however set to widen as graft busters warn of more suspects to be charged soon. MACC expected to haul up more people in land and housing scandal JOHOR BARU: One of the state’s largest corruption scandals is about to get bigger as more people are expected to be hauled up to court in the coming weeks. Malaysian Anti-Corruption Commission (MACC) deputy chief commissioner (operations) Datuk Azam Baki said they might be charged with the case involving Johor executive councillor Datuk Abd Latif Bandi either this month or next. Among those to be charged, he said, were those who had been arrested previously. However, he declined to reveal their names so as not to jeopardise MACC’s investigation, saying that no VIPs were involved. “We are in the midst of completing our probe with the Deputy Public Prosecutor before charging them in court soon,” he told reporters after meeting MACC investigation director Datuk Simi Abd Ghani and Johor MACC director Datuk Azmi Alias here yesterday. Azam said it was also possible for Abd Latif, who was jointly accused with property consultant Amir Shariffuddin Abd Raud of committing 33 counts of graft yesterday, to face another round of charges then. It was reported that eight suspects, including Abd Latiff ’s eldest son as well as his special officer, were nabbed by the MACC on Feb 24. Anti-graft officers detained them after sifting through stacks of documents seized from the state government and developers. They also seized luxury goods, including 21 cars such as Bentley, Mercedes-Benz and Porsche, five high-powered motorcycles and 150 handbags. On its probe into the purchase of real estate in Australia by Mara Incorporated Sdn Bhd, Azam said MACC called up 24 witnesses and visited seven premises, including a law firm, the offices of both Mara Inc and an appraiser, and their associates. “All related documents have also been seized. We have gathered more new information, and it is a continuous investigation from the previous case in 2015,” he said. “We need more time to complete this case as it involves another country. “We have put in a request under a mutual legal assistance with the Australian AttorneyGeneral’s office but have yet to receive any response. “We will also prepare the documents to be sent to Australia,” he said. MACC had previously recorded the state- ment of suspended Mara chairman Tan Sri Annuar Musa over the same investigation. Annuar also handed over several documents relevant to the case. The issue came to light after Australian newspaper The Age claimed that several senior Mara officials and a former politician had spent millions of Malaysian Government funds to buy an apartment block, known as Dudley International House, in Melbourne Azam said his officers were also in the midst of preparing a report into alleged match fixing by football players from the Malaysian Indian Sports Council-Malaysia Indian Football Association. “We expect this case to be completed within two to three weeks after we hand over the report to the deputy public prosecutor for charging.

Get-rich-quick schemes thriving in Penang: many losers in the money game!

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CALL them pyramid, Ponzi or get-rich-quick schemes and people might shy away. But call them money games, and suddenly they are just games, is that right? What can be so diabolical about that? Penang lang (people) are very much into money games. That's what Ben, a Penangite who now lives in Australia, found out when he came back for a holiday three weeks ago. Ben’s friends and relatives tried to rope him into money games. They themselves had "invested" in a few "games". He was astounded by their obsession. It does seem as if money games are on the minds of many Penangites now. I hear about them at the coffee shops and watering holes. And yes, many of my buddies are into them too. You will likely be the odd one out if you are not into such schemes these days. JJPTR is a now household acronym after almost two years in the market. It stands for JJ Poor-to-Rich and the very name resonated well with middle-class families. Its 20% monthly payouts were always on time, until the recent hacking job. Then came Richway Global Venture, Change Your Life (CYL) and BTC I-system, but they too are said to be in troubled waters these days. Attempts by many journalists to contact them have been unsuccessful. The money game list is quite long, and Penang has the dubious honour of being the home base for many. Another friend, Robert, had a jolt when a doctor he knew told patients to put their money into such a scheme. A doctor! From the cleaners at his office to the hawkers and professionals he met, everyone, it seems, was convinced. None questioned how the high returns could come to fruition in such a short time. But Robert is a harsh critic of these games and would not go anywhere near them. He didn't believe in their economic "principles". He even got into a big fight with his father, who put money into JJPTR. And now, Robert has been proven right. Fortunately, his father was one of the lucky ones because he managed to recoup his principal sum, on top of the thousands more he had received over the past few months. Billy, a man well-versed in such operations, said operators would always use forex trading or investment in foreign projects as cover stories to woo new members. They paint vivid pictures of those joining becoming part of big-time developments in Third World countries like Cambodia and Vietnam. Once you get closer to them, they will tell you outright it is a money game and that you are among the pioneers, sure to make a profit before the scheme bursts. Things tend to be smooth sailing for the first few months. You see money coming back in and pride yourself in taking the risk. But soon the saturation point is reached as new members to the pyramid slow to a trickle. Then you can expect the scheme to collapse. Billy pointed out that the higher the return on investment, the faster the scheme bursts. That's because the operator cannot get enough new members to keep the scheme sustainable. At the same time, he has to deal with huge monthly payouts. Some in Penang may remember the chance to invest in a cafe chain known as Island Red Cafe around 10 years ago. Then there was that company that sold gold bars and coins. There was also a Swiss cash scheme which took the country by storm. As long as there is greed, such schemes will always re-emerge. As they say, a fool and his money are soon parted. Honestly, the quickest way to double your money is to fold it in half and put it back in your pocket.

Earn your money the right way: no quick buck, get paid only for honest, hard work

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Get-rich quick schemes drawing the interest of those who want to make a quick buck but really, there is no substitute in getting paid for honest, hard work AS a Penangite, I am always asked by my colleagues and friends in the Klang Valley why is it that most get-rich-quick schemes are located in the island state and the investors mostly its citizens. I have asked that same question myself, since I’ve heard enough stories of relatives and friends who have been entangled in this web of financial crookery. It’s not something new. It used to be called the pyramid scheme and Ponzi but, like most, it is just another scam. The new term is ‘money game’ and it’s probably called this to warn new participants that there will be winners and losers, like in any other game. However, no one is listening because most people are merely interested in the quick returns from their investments. There are some reasons why Penang lang (Hokkein for people) have warmed up to these quick-rich con jobs. Penang is a predominantly Chinese state and rightly or wrongly, the appetite for risk there is higher. Some may dismiss risk as a euphemism for gambling, but the bottom line is, many of its denizens are prepared to roll the dice. Given that there are so few police reports lodged against operators, despite the huge number of investors, indicates the readiness of these players to try their luck. They clearly are aware of the element of risk involved when they lay their money down, but the huge returns override any rational thinking. No risk, no gain, they probably tell themselves. Making police reports against operators also runs the risk of “investors” getting their money stuck if the accounts of the scammers are frozen. Risk-taking is nothing new to many Penangites. This is a state with a horse-racing course and plenty of gaming outlets. Is it any surprise then that a spat is currently playing out between politicians over allegations that illegal gaming outlets are thriving there? One politician believes the state government does not have the authority to issue gambling licences and “to single out Penang also ignores the fact that gambling is under the Federal Government’s jurisdiction. We don’t issue such licences.” It’s bizarre because no one issues permits to illegal gaming outlets. That’s why they are called illegal. But there are some fundamental sociological explanations to this fixation on earning extra money in the northern state. The cost of living has gone up there ... and everywhere, too. For the urban middle class, it is a monthly struggle managing the wages – after the deductions – settling the housing and car loans, and accounting for household items such as food, petrol, utility and tuition for the children. The cost of living in Penang may be lower than that in the Klang Valley, but it is not cheap either. Any local will tell you that the portion of char koay teow has shrunk, although the price remains the same. But unlike the Klang Valley, where career development and opportunities are greater, the same cannot be said of the island state. Many of us who were born and brought up in Penang, moved to Kuala Lumpur because we were aware of the shortage of employment opportunities there. We readily sacrificed so much, moving away from our parents and friends, relinquishing the relaxed way of life and the good food for a “harder” life in the Klang Valley. We paid the price for wanting a better life. Job advancement means better salaries, but in Penang, where employers have a smaller base, they are unable to match the kind of pay packages offered in KL. So, an extra few hundred ringgit from such investments does make a lot of difference to the average wage earner. It is not unusual for many in the federal capital to take a second job to ensure they can balance their finances. I don’t think many Penangites expect to be millionaires, at least not that quickly, although JJPTR has become a household acronym since hitting the market in the last two years. As most Malaysians by now know, it stands for JJ Poor-to-Rich, the name resonating well with middle class families. Its founder, Johnson Lee, with his squeaky clean, boyish looks, assured over 400,000 people of his 20% monthly pay-outs and even more incredibly, convinced many that billions of ringgit vanished due to a hacking job. Then came Richway Global Venture, Change Your Life (CYL) and BTC I-system, among others. And almost like clockwork, Penang has now earned the dubious reputation of being the base for get-rich-quick schemes. Having written this article while in Penang, I found out this issue continues to be the hottest topic in town, despite the recent crackdowns by the authorities. My colleague Tan Sin Chow recently reported in the northern edition of The Star that “money games are on the minds of many Penangites.” On chat groups with friends and former schoolmates, it has certainly remained very much alive. Tan wrote: “Another friend, Robert, had a jolt when, a doctor he knew, told patients to put their money into such a scheme. A doctor! “From the cleaners at his office to the hawkers and professionals he met, everyone, it seems, was convinced. None questioned how the high returns could come to fruition in such a short time.”

Goodbye Motorola! How Chicago’s greatest tech company fell to earth?

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Under the Galvin family, Motorola had soaring achievements. This was the company, remember, that invented the cellphone. Those days are over. What went wrong?

Goodbye, Silicon Valley

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Chinese-born talents are abandoning California for riches back home with the rise of China's new titans. A FEW years ago, Wang Yi was living the American dream. He had graduated from Princeton, landed a job at Google and bought a spacious condo in Silicon Valley. But one day in 2011, he sat his wife down at the kitchen table and told her he wanted to move back to China. He was bored working as a product manager for the search giant and felt the pull of starting his own company in their homeland. It wasn’t easy persuading her to abandon balmy California for smog-choked Shanghai. “We’d just discovered she was pregnant,” said Wang, now 37, recalling hours spent pacing their apartment. “It was a very uneasy few weeks before we made our decision, but in the end she came around.” His bet paid off: his popular English teaching app Liulishuo or LingoChamp raised US$100mil (RM397mil) in July, putting him in the growing ranks of successful Silicon Valley alumni lured back to China by the promise of a brighter future. His decision is emblematic of an unprecedented trend with disquieting implications for Valley stalwarts from Facebook Inc to Alphabet Inc’s Google. US-trained Chinese-born talent is becoming a key force in driving Chinese companies’ global expansion and the country’s efforts to dominate next-generation technologies like artificial intelligence and machine learning. Where college graduates once coveted a prestigious overseas job and foreign citizenship, many today gravitate towards career opportunities at home, where venture capital is now plentiful and the government dangles financial incentives for cutting-edge research. “More and more talent is moving over because China is really getting momentum in the innovation area,” said Ken Qi, a headhunter for Spencer Stuart and leader of its technology practice. “This is only the beginning.” Chinese have worked or studied abroad and then returned home long enough that there’s a term for them – “sea turtles”. But while a job at a US tech giant once conferred near-unparalleled status, homegrown companies – from giants like Tencent Holdings Ltd to up-and-comers like news giant Toutiao – are now often just as prestigious. Baidu Inc – a search giant little-known outside of China – convinced ex-Microsoft standout Qi Lu to helm its efforts in AI, making him one of the highest-profile returnees of recent years. Alibaba Group Holding Ltd’s coming-out party was a catalyst. The e-commerce giant pulled off the world’s largest initial public offering in 2014 – a record that stands – to drive home the scale and inventiveness of the country’s corporations. Alibaba and Tencent now count among the 10 most valuable companies in the world, in the ranks of Amazon.com Inc and Facebook. Chinese venture capital rivals the United States: three of the world’s five most valuable startups are based in Beijing, not California. Tech has supplanted finance as the biggest draw for overseas Chinese returnees, accounting for 15.5% of all who go home, according to a 2017 survey of 1,821 people conducted by think-tank Centre for China & Globalisation and jobs site Zhaopin.com. That’s up 10% from their last poll, in 2015. Not all choose to abandon the Valley. Of the more than 850,000 AI engineers across America, 7.9% are Chinese, according to a 2017 report from LinkedIn. That naturally includes plenty of ethnic Chinese without strong ties to the mainland or any interest in working there. However, there are more AI engineers of Chinese descent in the United States than there are in China, even though they make up less than 1.6% of the American population. Yet the search for returnees has spurred a thriving cottage industry. In WeChat and Facebook cliques, headhunters and engineers from the diaspora exchange banter and animated gifs. Qi watches for certain markers: if you’ve scored permanent residency, are childless or the kids are prepping for college, expect a knock on your digital door. Jay Wu has poached over 100 engineers for Chinese companies over the past three years. The co-founder of Global Career Path ran online communities for students before turning it into a career. The San Francisco resident now trawls more than a dozen WeChat groups for leads. “WeChat is a good channel to keep tabs on what’s going on in the circle and also broadcast our offline events,” he said. Ditching Cupertino or Mountain View for Beijing can be a tough sell when China’s undergoing its harshest Internet crackdown in history. But its tech giants hold three drawcards: faster growth in salaries, opportunity and a sense of home. China’s Internet space is enjoying bubbly times, with compensation sometimes exceeding American peers’. One startup was said to have hired an AI engineer for cash and shares worth as much as US$30mil (RM119mil) over four years. For engineers reluctant to relinquish American comforts, Chinese companies are going to them. Alibaba, Tencent, Uber-slayer Didi Chuxing and Baidu are among those who have built or are expanding labs in Silicon Valley. Career opportunities, however, are regarded as more abundant back home. While Chinese engineers are well represented in the Valley, the perception is that comparatively fewer advance to the top rungs, a phenomenon labelled the “Bamboo Ceiling”. “More and more Chinese engineers who have worked in Silicon Valley for an extended period of time end up finding it’s much more lucrative for them career-wise to join a fast-rising Chinese company,” says Hans Tung, a managing partner at venture firm GGV who’s organised events to poach talent.

Attacks against Malaysian multi-billionaire Robert Kuok from UMNO leaders and Raja Petra uncalled for!

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The recent attacks against multi-billionaire Robert Kuok, including those from Umno leaders and a prominent blogger, are regrettable, says MCA. Party secretary-general Datuk Seri Ong Ka Chuan said it was a well-accepted fact that Kuok is a successful international entrepreneur. “Kuok has made tremendous contributions to the country. These comments are made to spread hatred and create disunity,” he said. Ong said Culture and Tourism Minister Datuk Seri Nazri Aziz has no right to request any Malaysian citizen to give up their citizenship. “This is not within his jurisdiction,” he said. Last week, blogger Raja Petra Kamarudin posted three articles in his website Malaysia Today, alleging Kuok was funding various political parties to overthrow the Government. In response, Kuok refuted allegations and that he would reserve the right to take action against the portal. MCA publicity spokesman Datuk Seri Ti Lian Ker concurred with Ong, saying there was no need to resort to harsh remarks against the 94-year-old tycoon. “MCA is of the view that Kuok is a businessman who has benefited Malaysians in general. “He is our business icon and revered by Malaysians from all ethnic backgrounds,”he said. Ti said Kuok has every right to support whichever political party and that there were existing laws to deal with any attempts to undermine the Government. “As a businessman, he could have supported many political parties and politicians from Barisan and Pakatan too. There’s no need to overreact by being ill-mannered in this instance,” he said. But Ti pointed out that all businessmen who have benefited from Barisan’s policies should be thankful and reciprocate with support. Two prominent Johor Barisan leaders – Tan Sri Shahrir Abdul Samad and Datuk Seri Dr Wee Ka Siong – came out to defend Kuok, saying they believed the tycoon would not interfere in national politics. Dr Wee dismissed Raja Petra’s claims as “unreliable”. “What was said on his blog was just a spin. There is no evidence. It is not persuasive,” said the MCA deputy president and Ayer Hitam MP.

Rocky times ahead for China FDI in Malaysia

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“The series of comments made on Chinese investments by the PM have affected the confidence of Chinese investors. Those who originally wanted to come are adopting a wait-and-see attitude, while those already in are careful about their expansion plans,” says Li in an interview with Sunday Star. The outspoken leader of Chinese firms notes that businessmen from the mainland are “worried”, although some comments of the Prime Minister were later “clarified” by other Cabinet Ministers or the PM’s Office. “Malaysia must remember that by targeting Chinese investors in an unreasonable way, this will scare away not only FDI from China, but also from other countries as well,” adds Li. Since his five-day official visit to China that ended on Aug 21, the 93-year-old Malaysian leader has caused anxiety to all by making shocking announcements. While summing up his China trip on Aug 21, he declared he would cancel the RM55bil East Coast Rail Link (ECRL) and two gas pipelines being built by Chinese firms. As the ECRL is of strategic importance to China’s Belt and Road Initiative – the policy which Dr Mahathir has repeatedly voiced his support for, Beijing would expect a renegotiation of the contract terms rather than an outright cancellation. Dr Mahathir had reasoned that with national debt of over RM1 trillion, Malaysia could not afford these projects. In addition, these contracts are tainted with unfair terms and smacked of high corruption. Although the Prime Minister said Chinese leaders understood Malaysia’s situation, reactions of Chinese nationals on social media were unforgiving with many suspecting Dr Mahathir “has other motives”. Many see Dr Mahathir as attempting to raise Malaysia’s bargaining power in the negotiation for compensation for the cancelled projects. China, according to social media talk, is asking for RMB50bil as compensation. On social media, there are also suggestions that Dr Mahathir is aiming at his predecessor as most China-linked projects were launched during the rule of Najib. During the rule of Najib, Malaysia-China relations were intimate. This has resulted in the influx of major construction and property companies from the mainland, followed by banks and industries. But on May 9, Dr Mahathir’s Pakatan Harapan coalition toppled the Barisan Nasional government of Najib after the most bitterly fought general election in local history. The second-time premier has put the blame on Najib for the massive 1MDB financial scandal, which Najib has denied, and mismanagement of the country’s finance. And while the Chinese nationals are all riled up by the cancellation of ECRL, Dr Mahathir came up with an ill-advised statement. Last week he ordered a wall surrounding Alliance Steel, which is investing US$1.4bil (RM6bil) for a massive steel complex, to be demolished. This was seen as unreasonably targeting a genuine FDI. Although the foreign ministry later clarified that the leader had mistaken the wall to be built around the Malaysia-China Kuantan Industrial Park (MCKIP), the anger of Chinese nationals lingers on. The industrial park is a G-to-G project to jointly promote bilateral investments. There is an even bigger sister industrial park in China that houses many Malaysian firms. All these were built during Najib’s reign. Dr Mahathir’s statement has also caught the attention of China’s Global Times, the mouthpiece of the Communist Party of China. In an editorial on Aug 28, the news portal warned: “Many words of Kuala Lumpur can spread to China via the Internet, causing different reactions. How the Chinese public sees China-Malaysia cooperation is by no means inconsequential to Malaysia’s interests.” It noted “while Dr Mahathir advocates pursuing a policy of expanding friendly cooperation with China ... but when it comes to specific China-funded projects, his remarks gave rise to confusion. Like this time, it is startling to equate the controversy surrounding a factory wall with state sovereignty.” Global Times added: “When such remarks are heard by Chinese people, the latter find it piercing. They will definitely make Chinese investors worry about Malaysian public opinion and whether such an atmosphere will affect investment in the country.” In fact, it would be unwise for the government to disrupt MCKIP. Co-owned by Chinese, IJM Corporation and Pahang government, this industrial park has lured in Chinese FDI of over RM20bil. It is an important economic driver in the East Coast and has aimed to create 19,000 jobs by 2020. While the “wall” statement might be seen as a minor mistake, Dr Mahathir’s flawed announcement last Monday that foreigners would be barred from buying residential units in the US$100bil (RM410bil) Forest City stirred another uproar. On Aug 27, Reuters quoted Dr Mahathir as saying: “That city that is going to be built cannot be sold to foreigners. Our objection is because it was built for foreigners, not built for Malaysians. Most Malaysians are unable to buy those flats.” Currently being developed by Country Garden Holdings of China, this 20-year long project, built on reclaimed land in Johor Bahru, aims to house 700,000 people. As about 70% of the house buyers are Chinese, some locals fear this could turn into a China town. Unlike Alliance Steel that has stayed silent, Country Garden fought back by seeking clarifications from the PM’s Office. In a statement, the major Chinese developer said all its property transactions had complied with Malaysian laws. Citing Section 433B of the National Land Code, it added a foreign citizen or a foreign company may acquire land in Malaysia subject to the prior approval of the State Authority. In addition, it said Dr Mahathir’s comment did not correspond with the content of the meeting he had with Country Garden founder and chairman Yeung Kwok Keung on Aug 16. During the meeting, Dr Mahathir said he welcomed foreign investments which could create job opportunities, promote technology transfer and innovations. In fact, this forest city project – along with ECRL – were the main targets of attack by Dr Mahathir before the May 9 election. Opposition to these projects had helped drive Dr Mahathir’s election campaign, during which he said was evidence of Najib selling Malaysia’s sovereignty to China. These projects, together with major construction contracts won by Chinese and the inflow of industrial investments, place the total value of Chinese deals at more than RM600bil in Malaysia. But few would expect Dr Mahathir to use his powerful position to resume his attacks on China-linked projects so soon after his so-called “fruitful visit” to Beijing. During his official visit to Beijing, the Malaysian leader was accorded the highest honour by China, due mainly to respect for “China’s old friend” and strong Malaysia-China relations built since 1975. Dr Mahathir was chauffeured in Hongqi L5 limousine, reserved for the most honourable leaders, and greeted in an official welcome ceremony by Premier Li Keqiang. He was also guest of honour at a banquet at Diaoyutai State Guesthouse hosted by President Xi Jinping. But beneath these glamorous receptions, there were reservations exuded by the Chinese for this leader whose premiership is scheduled to end in two years. There were no exciting business deals signed in Beijing. There was absence of high diplomatic rhetoric that “Malaysia-China ties have been elevated to another historic high”, oft-repeated during Najib’s past visits. Many even notice that Premier Li and Dr Mahathir had a cool handshake after their short joint press conference in Beijing. And although China promised to buy Malaysian palm oil, the statement was qualified with “price sensitivity”, which means it will not buy above market price. In addition, there was no mention of “buying palm oil without upper limit”, which was promised to Najib last year. If Dr Mahathir’s original intention was to target Forest City and its owners, his move has certainly backfired. The country will have to pay a price for his off-the-cuff statement. The “new policy” will have serious ramifications as it would hit the value of the properties not only in Forest City but also in other China-linked and non-Chinese projects. Country Garden’s Danga Bay project will also be hit. It now faces a more daunting task of selling the balance of about 2,000 units in Danga Bay, according to a Starbiz report. Other Chinese developers like R&F Princess Cove and Greenland Group will be affected. VPC Alliance Malaysia managing director James Wong told Starbiz there may be legal suits against the government. “That may force Country Garden to scale down because it has invested a lot with its industrial building systems factory and an international school, among other investments. It will impact Country Garden and Malaysia’s property sector negatively,” Wong said. “Foreign buyers and other foreign companies will shy away,” Wong added.

Vanishing Jobs Growth Spells Deep Trouble for South Korea

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Unemployment and jobs growth in South Korea haven’t looked so bad since the wake of the global financial crisis, undermining President Moon Jae-in’s economic agenda. Data released Wednesday show the unemployment rate jumping to 4.2 percent, the highest since early 2010, and much greater than any economists forecast. Jobs growth slumped to just 3,000 last month, also the worst figure in more than eight years. Moon, who came into office pledging to create jobs and raise incomes for regular workers, has seen his popularity slide amid criticism that he’s hurting employment by aggressively increasing the minimum wage. While pay hikes planned for this year and 2019 are here to stay, Finance Minister Kim Dong-yeon said the government would consider adjusting some policies. He conceded that the jobs market wouldn’t improve much anytime soon. Disappearing Jobs Growth Number of jobs added: South Korea added just 3,000 jobs in August, the least since 2010 Source: Statistics Korea Moon’s administration points to the fallout from corporate restructuring and the shrinking working-age population as the source of the problems in the labour market. Businesses counter that hiking the minimum wage 16% this year, with another bump of almost 11% to come next year, has made job layoffs inevitable. Small business owners in particular, from convenience stores to fast-food franchises, have shed workers. Adding to the economic unease in South Korea is the risk that US President Donald Trump may hit car exporters with auto tariffs, even after Seoul agreed to renegotiate its trade deal with the US. Unemployment Spike South Korea's unemployment rate in August reached the highest since 2010 Seasonally adjusted unemployment rate Source: Statistics Korea South Korean bonds climbed and the won fell after jobs figures, which appeared to squash any near-term prospect of the central bank raising interest rates. The finance minister said economic policies that are geared toward wage-based growth are moving in the “right direction”. Yet the government also acknowledged the need for more communication and market analysis in order to gain trust from companies and the people, he said. The presidential office described the recent increase in unemployment as inevitable pain that accompanies a change in the structure of the economy, Yonhap News reported. Like many other countries, South Korea is experiencing a widening gap between the rich and the poor. It’s confounding policy makers and exacerbating political divisions.

Get-rich-quick ‘Bitcoin Formula’ exposed: Vincent Tan denies investing US$250m

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Vincent Tan denies investing US$250m in get-rich-quick 'Formula' PETALING JAYA: Berjaya Corp Bhd founder and executive chairman Tan Sri Vincent Tan Chee Yioun (<<pic) has denied investing US$250 million in a project known as "The Formula" which allegedly promises huge profits and quick riches. Tan said in a statement today said that the 'The Formula' is supposedly a share trading platform that allows trades executed through it to beat the stock market with an accuracy of 80% thereby allowing users to make huge profits. "I refer to a current online media entitled 'Vincent Tan gives back to the people with his latest project" wherein it is reported that I have invested US$250 million in a project known as "The Formula" with a wish to make Malaysians wealthy. "I would like to categorically deny that I have made an investment in this project or that I am in any way involved in it and there is absolutely no truth in this report which I believe has been put out by unscrupulous persons to deceive the public," Tan said. Tan has reported the matter to the relevant authorities so that appropriate action can be taken and urged the public to take caution on promises of quick riches and not to fall prey to scams. Tan said this is not the first time his name has been used in similar instances for the purpose of lending credibility to online investment scams. On June 28 (see below), Tan exposed a dubious startup trading platform called "Bitcoin Formula" which used his name and doctored photos to promote its business. An article claiming he had invested in and was promoting Bitcoin Formula, together with some photographs, was circulated on social media. The article was accompanied by a few photographs, one showing Tan allegedly awarding a cheque for RM500,000 to Bitcoin Formula for winning the "Project of the Year" prize in a computer engineering "hackathon" in Kuala Lumpur, and another picture of him apparently speaking about Bitcoin Formula at a social media business summit. Both pictures were in fact images altered with the use of photo-editing software and had originally been taken by theSun in March 2014 and January last year. A check with the Companies Commission of Malaysia found that no company by the name of Bitcoin Formula exists.

World’s first artificial intelligence (AI) news anchor

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The new AI anchors, launched by Xinhua and Beijing-based search engine operator Sogou during the World Internet Conference in Wuzhen, can deliver the news with “the same effect” as human anchors because the machine learning programme is able to synthesise realistic-looking speech, lip movements and facial expressions, according to a Xinhua news report on Wednesday. Develop and control: Xi urges China to use AI in race for tech future “AI anchors have officially become members of the Xinhua News Agency reporting team. They will work with other anchors to bring you authoritative, timely and accurate news information in both Chinese and English,” Xinhua said. The AI anchors are now available throughout Xinhua’s internet and mobile platforms such as its official Chinese and English apps, WeChat public account, and online TV webpage. The world's first artificial intelligence (AI) news anchor made "his" debut at the ongoing fifth World Internet Conference in east China's Zhejiang Province. The news anchor, based on the latest AI technology, has a male image with a voice, facial expressions and actions of a real person. "He" learns from live broadcasting videos by himself and can read texts as naturally as a professional news anchor. The AI news anchor was jointly developed by Xinhua News Agency, the official state-run media outlet of China, and Chinese search engine company Sogou.com. According to Xinhua, "he" has become a member of its reporting team and can work 24 hours a day on its official website and various social media platforms, reducing news production costs and improving efficiency. Celebrity anchors are regarded as important assets at major news networks in the US. The highest paid news anchor, CNN’s Anderson Cooper, is reportedly paid US$100 million a year, while Diane Sawyer at ABC and Sean Hannity at Fox News earn US$80 million each. Celebrity anchors in China are generally paid a lot less because they work for state-run TV stations but they often earn extra money from product endorsements and book sales. Predicting Beijing’s thinking via AI and People’s Daily But AI anchors may one day challenge the human variety because of their ability to work 24 hours a day provided human editors keep inputting text into the system. Xinhua said the achievement was a “breakthrough in the field of global AI synthesis”, pioneering the synthesis of real-time audio and video with AI-created anchors in the news field. Search engine Sogou, which also does research and development in AI, is providing the underlying technology for the project. China plans to be a world leader in artificial intelligence by 2030

Huawei founder and CEO Ren Zhengfei survived a famine, but can he weather President Trump?

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Ren Zhengfei leads Huawei Technologies, one of the world's largest manufacturer of telecommunication hardware and mobile phones. Ren is the son of school teachers and grew up in a mountainous town in southern China's Guizhou Province. Ren held technician posts in China's military and worked for Shenzhen South Sea Oil before establishing Huawei with the equivalent of $3,000 in 1987. Huawei today does business in more than 170 countries with 180,000 employees. At the sprawling Huawei Technologies campus in Shenzhen, the foodcourt's walls are emblazoned with quotes from the company's billionaire founder and chief executive Ren Zhengfei. Then there's the research lab that resembles the White House in Washington. Perhaps the most curious thing, though, are three black swans paddling around a lake. For Mr Ren, a former People's Liberation Army soldier turned telecom tycoon, the elegant birds are meant as a reminder to avoid complacency and prepare for unexpected crisis. That pretty much sums up the state of affairs at Huawei, whose chief financial officer, Ms Meng Wanzhou, who's also Mr Ren's daughter, is in custody in Canada and faces extradition to the United States on charges of conspiracy to defraud banks and violate sanctions on Iran. The arrest places Huawei in the cross-hairs of an escalating technology rivalry between China and the US, which views the company, a critical global supplier of mobile network equipment, as a potential national security risk. Hardliners in President Donald Trump's administration are especially keen to prevent Huawei from supplying wireless carriers as they upgrade to 5G, a next-generation technology expected to accelerate the shift to Internet-connected devices and self-driving cars. Mr Ren is a legendary figure in the Chinese business world. He survived Mao Zedong's great famine and went on to build a telecom giant with US$92 billion (S$126 billion) in revenue that strikes fear among some policymakers in the West. Huawei is the No. 1 smartphone maker in China, and this year eclipsed Apple to become second maker globally, according to research firm IDC. Though it has a low profile compared with China's Internet giants, Huawei's revenue last year was more than Alibaba Group Holding, Tencent Holdings and and Baidu Inc combined. About half of its revenue now comes from abroad, led by Europe, the Middle East and Africa. The company's high-speed global expansion has come under fire for years, starting with the Committee on Foreign Investment in the US' derailing of an acquisition in 2008. More recently, Australia, New Zealand and the US have blocked or limited the use of Huawei gear. The arrest and prosecution of Ms Meng in US courts comes amid a far bigger US-China struggle for technology dominance in the decades ahead - and could have huge, and potentially severe, consequences for Huawei. Mr Ren declined an interview request from Bloomberg News. "It gives Trump a bargaining chip," said Mr George Magnus, an economist at Oxford University's China Centre. "She's the daughter of the CEO, Ren Zhengfei, himself a former PLA officer, and Huawei's alleged dealings with Iran are just the latest in a string of concerns." An outright ban on buying American technology and components, should it come to that, would deal Huawei a crushing blow. Earlier this year, the Trump administration imposed just such a penalty on ZTE Corp, also a Chinese telecom, and threatened its very survival before backing down. Both Huawei and ZTE are banned from most US government procurement work. A full-blown, commercial ban in the US would not only apply to hardware components, but also cut off access to the software and patents of US companies, Mr Edison Lee and Mr Timothy Chau, analysts with Jefferies Securities, wrote in a report. "If Huawei cannot license Android from Google, or Qualcomm's patents in 4G and 5G radio access technology, it will not be able to build smartphones or 4G/5G base stations," they note. The company's legal troubles in the US may also spill into other markets. "Government telecommunication infrastructure requirements are essentially locking out the Chinese supplier in critical growth markets," noted Morningstar Research equity analyst Mark Cash in an e-mail. "Additionally, telecom providers without government imposed restrictions may start limiting their usage of Huawei equipment for their 5G network build-outs." If there's a Darth Vader in the minds of Chinese national security hawks in Washington worried about China's rising tech power, it's Mr Ren. In China, though, he's feted as a national hero, who rose from humble beginnings to the pinnacle of wealth and status in Chinese society. His grandfather was a master of curing ham in his village in Zhejiang province, which afforded Mr Ren's father the chance to become the village's first university student, according to a 2001 essay by Mr Ren about his upbringing, which was published on a website linked to the Chinese Academy of Social Sciences. His father, Mr Ren Moxun, was a Communist Youth League member, who later worked as a teacher and an accountant at a military factory, but who kept up his rebel fervour under the Kuomintang by selling revolutionary books. After moving to rural Guizhou province, he met his wife Cheng Yuanzhao and gave birth to Mr Ren Zhengfei, the oldest of two sons and five daughters. The family lived on modest teaching salaries. In one of Mr Ren's speeches, he remembered how his mother read him the story of Hercules, but withheld the ending until he came home with a good report card. Famine Years During the Great Leap Forward campaign that started in the late 1950s, a famine came to his home town after Communist Party industrialisation and collectivisation policies went off the rails. Mr Ren recalled in his essay how his mother stuffed into his hand each morning a piece of corn pancake while asking about his homework. His good grades gained him entry to the Chongqing Institute of Civil Engineering and Architecture. After graduation, he worked in the civil engineering industry until 1974, when he joined the PLA's Engineering Corps as a soldier, and worked on a chemical fibre base in Liaoyang. Huawei says he rose to become deputy director, but did not hold military rank. He does, however, often pepper his speeches with military references. "Our managers and experts need to act like generals, carefully examining maps and meticulously studying problems," Mr Ren said in a speech posted on a website for Huawei employees. Mr Ren's Communist Party credentials aren't as deep as his father's. He attended the 12th National Congress of the Communist Party in 1982, and once cited the party's dogma of "a struggle that never ends" when defending the company's tough work hours. But Mr Ren was a bookworm as a child and was denied acceptance into the Communist Youth League, according to the book Huawei: Leadership, Culture And Connectivity, a book co-authored by David De Cremer, Tian Tao and Wu Chunbo. He didn't become a Communist Party member in the PLA until late in his military career. However, a 2012 House permanent Select Committee on Intelligence report on Huawei asked why a private company had a Communist Party Committee, which has become common among China's Internet giants. Mr Ren retired from the army in 1983, and joined his first wife to work at a Shenzhen company involved in the city's special economic zone. It was around then that he had to sell off everything to pay a debt related to a business partner, and lost his job at Shenzhen Nanyou Group, as well as his first marriage, according to Ren Zhengfei And Huawei by author Li Hongwen. Comeback Play After a period of sleepless nights while living with family members, Mr Ren saw an opportunity. When China began its economic opening under Deng Xiaoping, the telephone penetration rate was lower than the average rate in Africa, or 120th in the world. He founded Huawei with four partners in 1987 with 21,000 yuan in initial working capital, just above the minimum threshold required under Shenzhen rules. Huawei started out as a trader of telecom equipment, but the company's technicians studied up on switchboards and were soon making their own. Workers put in long hours in Shenzhen's swampy heat with only ceiling fans. Mr Ren kept up morale with subtle gestures, like offering pigtail soup to workers putting in overtime. The company became known for its "mattress culture" in which workers would pass out on office mattresses from exhaustion. In 2006, a 25-year-old worker Hu Xinyu, who had made a habit of working into the wee hours and then sleeping at the office, died of viral encephalitis. Some Huawei employees subsequently committed suicide. The deaths triggered a revision of the company policy on overtime, and the creation of a chief health and safety officer role. It wasn't the only move Mr Ren made to stabilise morale. He used to pay his workers only half their salaries on payday, but eventually decided to convert the other half of employee salaries and bonuses into shares. The company's 2017 report shows that he has a 1.4 per cent stake, giving him a net worth of US$2 billion. Wolf Culture Huawei struggled for market share, with foreign companies using so-called "wolf culture" of aggressive salesmanship, which sometimes materialised in the form of Huawei employees flooding sales events with several times more salespeople than competitors. The company ventured into international markets in the 2000s, with telecom equipment that was more affordable than products of competitors such as Cisco Systems. Huawei later admitted to copying a small portion of router code from Cisco and agreed to remove the tainted code in a settlement. Mr Ren since stepped up the company's research and development. Of its 180,000 employees, about 80,000 are now involved in R&D, according to the company's 2017 report, and the company has been known to recruit some of China's top talent out of universities. The company recently refocused on existing markets after the US government called Huawei a national security threat, and cited concerns over its possible control of 5G technologies. Mr Trump signed a Bill banning government use of Chinese tech including Huawei's, and has even contacted allies to get them to avoid using Huawei equipment. Collectively owned by its employees, the company is known for a culture of discipline, in which no one, Mr Ren included, has their own driver or flies first class on the company dime. Lately, Mr Ren has been warning employees against using fake numbers or profit to enhance performance. The company set up a data verification team in 2014 within the finance department, which was overseen by Mr Ren's daughter.

More than just a trade war, US in skirmises with China over IT, trade and ‘national security’

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Nobody is supposed to win any war, and the US is anxiously proving that true in skirmishes with China over IT, trade and ‘national security’. CHINA will not have Ivanka Trump arrested if she were to transit through Hong Kong airport, even now. Beijing does not have the intent or capacity for that – nor the recklessness required for it, particularly in the throes of a trade war. But US authorities had Sabrina Meng Wanzhou arrested while transiting through Vancouver airport. Ivanka and Sabrina are prominent businesswomen, but there are also differences between them. Ivanka is the daughter of President Donald Trump. In China and elsewhere, Sabrina is the daughter of modern China and its historic rise. Critics of Sabrina’s arrest call it a kidnapping. The charges against her are unclear, the intent lacks transparency, and the action itself is unprecedented even for US double standards and a maverick president. British politician George Galloway condemned Sabrina’s arrest as piracy, a death wish and an act of war. Prof Jeffrey Sachs calls it almost an act of war on China’s business world exposing Washington’s “supreme hypocrisy.” He finds the official pretext lacking credibility. Sachs says that in the past nine years alone, the US penalised 25 other companies from almost as many countries for violating unilateral US sanctions on doing business in third, fourth or fifth countries. Yet in all these cases the US held the company responsible rather than an individual officer of the company. The case against Huawei had taken an unprecedented and disturbing character from the start. Jack Ma says the trade war itself is only part of the complicated and now troubling relationship between the US and China. It is so messy that he sees any resolution only in another 20 years. At one level, today’s US phobia about doing business with China relates to what Washington calls security concerns. Huawei founder and Sabrina’s father Ren Zhengfei was reportedly an elected official of the Communist Party of China (CPC) in 1982. What would that mean for Ma of Alibaba, confirmed only two weeks ago as a current card-carrying member of the CPC? Nobody outside Washington seems too bothered. Business, especially international trade, is supposed to be above petty political differences in a very diverse world. But apparently, pettiness matters in a trade war scenario veering towards a cold war. The trade war mindset and the persecution of Huawei are situated within global superpower and geopolitical rivalry between the world’s two biggest economies. China is still a developing country despite its many achievements, and is determined to press ahead with more growth to develop its poorer regions. Huawei is in the forefront of this national resurgence. The US remains the world’s technology leader and sole superpower – and intends to stay that way. Since a hyper-competitive international environment does not always favour it, it has resolved to block any challenge while complaining about trade with China. Owing to China’s population size, significant GDP growth per capita would mean development on a massive scale. And because of reliance on international markets and global supply chains, connectivity makes infrastructure and IT vital. The current US position on China consists of the phobias and manias of senior administration officials around Trump. Among the most prominent is economics hawk Prof Peter Navarro, head of the White House National Trade Council. The author of Death By China was conspicuously left out of Trump’s cordial visit to China last year. Since then, Navarro has moved closer to the Oval Office. So have other hawks circling China. John Bolton is a Bush-era neo-conservative savouring entry into Trump’s inner circle. That did not happen in the first year, but now he is National Security Adviser. Bolton is notorious as instigator of the Iraq invasion. Now he has focused his foreign aggression on a trade war, indicating he had more to do with Sabrina’s arrest than Trump himself. US Trade Representative Robert Lighthizer is another hawk eager to target Beijing. He regards China as a “trade threat” and has grown personally close to Trump. The Economist called US Commerce Secretary Wilbur Ross a protectionist, and he has submitted to the hawkish trend against China. His shares in some China companies are no longer an issue, especially after he has turned his China experience to serve US nationalist interests. Yet for all their devices, the attack on China by targeting Huawei will not dampen – much less stop – China’s rise. It will teach China to be more vigilant about trade partners, steel it for future pitfalls, and redouble its efforts to grow stronger. Already there are signs of Sabrina’s arrest being counter-productive, with other forms of blowback against US interests virtually assured. First, Beijing’s support for Chinese firms like Huawei operating internationally will grow. Even greater state-industry collaboration in China’s national interests, particularly when abroad, can be expected. Second, China’s corporate sector will offer even greater support for the Government and the CPC in return. As this happens at multiple levels, China’s international competitiveness can only heighten. Third, public support in China for Chinese companies has also grown, fuelling the rise of Chinese nationalism. Even before Sabrina’s arrest, a nationwide survey found majorities in 300 Chinese cities would boycott US companies. Fourth, public support for the Chinese state and the CPC continues to accumulate. Whenever the national interest is threatened, all sectors close ranks against the common foe. Fifth, the action against Huawei has provoked China and triggered its people’s national pride. The extent to which this will multiply is still uncertain, but a clear sense of it is evident in social media. Sixth, international support for China and its campaign for free trade are set to grow. This involves more than just companies fearful of similar actions for violating US sanctions, since the US has alienated itself from even its allies. Seventh, the Chinese diaspora in Canada has come out in support of Sabrina and other unfortunate Chinese nationals caught in such a situation. It has become more than just a national or criminal matter. Eighth, Chinese Americans may also feel the racist pinch of US policy and act similarly. Will they then become suspects to their own Government? Malaysian entrepreneur and Harvard MBA Tan Hock Eng’s Singapore-based Broadcom was supposed to take over California-based Quallcom in the biggest IT deal in the world. But in March this year the US scrapped the deal in the name of “national security interests.” To many ethnic Chinese that was a racist move. Ninth, while some countries may sympathise with China over Huawei, others may just be put off by the US action and attitude. The result would be a net loss for US standing and prestige. To provoke a rising China and get away with it requires consistently deft handling and masterful strategies. Both are lacking in Washington. Trump has not been focused enough to even make senior administration appointments after two years. Melania Trump has also been pressuring her husband to dismiss the Deputy National Security Adviser. The departure of senior staff has already been peaking on its own, many for personal reasons. Then Robert Mueller’s continuing investigations and indictments will add further to the dismissals.

Employees believe Huawei will survive widespread bans in West with ‘Wolf spirit’ culture

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Former Huawei employee in US laments government's 'endless assaults on the company' ○ Huawei's so-called 'wolf culture' helped it become successful in foreign countries ○ The top global telecom equipment provider has been going through a tough year in 2018 ○ Chinese and foreign employees hold different views on Huawei's rapid expansion and aggressive corporate strategy When Jason Li was assigned to the Mobile World Congress at the beginning of 2011, shortly after he joined China's Huawei Technologies, he impressed Ren Zhengfei, the former military officer who founded the company in 1987, with a presentation about the company's products in English. "He [Ren] came to the company's stand the day before the congress kicked off and asked me where I studied before joining the company. I said New Zealand," Li said, noting that Ren immediately suggested that this newly recruited employee should fly to the UK office and help build a local talent center as part of Huawei's global expansion. The Shenzhen-based company has experienced a rapid expansion over the past 30 years, and has footprints in more than 170 countries and regions. However, it has been under the spotlight recently as Meng Wanzhou - its chief financial officer - was arrested by the Canadian authorities in Vancouver on December 1 at the request of the US on suspicion of violating US trade sanctions. Under pressure from the US, more governments in the West have been considering blocking Huawei's core products over security concerns, which is considered as a major setback in its development into a multinational giant. Former employees of Huawei like Li spent years working overseas, and describe Huawei's corporate culture as a "wolf culture" that helped it become successful. However, this "wolf culture" also sparked controversy, and might have harmed its current operations. Arduous journey When Li started working at Huawei's London office, he started everything from zero. From 2012 to 2014, he had traveled to over 20 countries and spent most of his days in countless hotels and airports, sacrificing much of his spare time to reach out to more foreign telecom carriers and companies. "As soon as I left Egypt after a business trip to Cairo years ago, the country plunged into civil conflict, and some of my former coworkers were stuck in the hotel. And one time in Nigeria, we were exposed to yellow fever," he told the Global Times, referring to those days at Huawei as an unforgettable memory. Long working hours on challenging projects with constant business trips to remote areas are common descriptions of the workplace culture at the world's largest telecoms equipment maker. "Employees at Chinese telecom companies such as Huawei and ZTE endured hardships in an earlier stage of global expansion," Xiang Ligang, a veteran industry analyst close to Huawei, told the Global Times in a recent interview. Ren, the founder of Huawei, is considered one of the most successful Chinese executives during the country's reform and opening-up. He was influenced by the military theories of Mao Zedong, according to a book on Huawei's development published in April. Like Mao's military theories, which advocated taking small and medium cities and extensive rural areas first as part of a revolution, Ren started from remote and less developed areas to avoid fierce competition with foreign rivals. "In some countries in Africa and South America, telecom operators could not afford expensive products. They also lacked staff members for maintenance and operations. This gave more room for companies like Huawei and ZTE, which continuously assigned staff to those areas, to grow," Xiang said. Huawei beat Ericsson and Nokia in the global mobile infrastructure market in 2017, as the Chinese company took 28 percent of the market share and became the largest mobile infrastructure provider worldwide, according to the latest industry report from IHS. "In the early days, Huawei assigned most of its senior executives to the overseas market to explore business opportunities," Xiang said, noting that accepting these assignments later became an unwritten rule. Lingering conflicts Huawei's corporate culture has a long-lasting influence on its staff. An former employee who worked as a programmer at Huawei's then headquarters in Nanshan district, Shenzhen in the early 2000s said that he worked for Huawei for about one year and a half shortly after he graduated from college but the short experience there has instilled a lasting impact on his future career. He learned to be hardworking, persistent and low-key. Even after he left Huawei, he sometimes, as if he had been brainwashed, still would read aloud the internal letters written by Ren Zhengfei circulated online to his then-girlfriend-now-wife, partly as a way to woo and impress her, and partly as a way to draw inspiration and strength for himself. The employee in his early 40s who only spoke on condition of anonymity said he worked long hours from about 10 am to 10 pm every working day at Huawei. When he was tired, he would sleep on the mattress under his desk. "All co-workers did the same, especially the managers," he said. "When a new project kicked in, we would work overnight." This so-called wolf spirit - a high-pressure workplace - is also known as a "mattress culture," as many of its engineers work so hard that they use blankets and mattresses to sleep at the office. And this military-style management was sometimes rejected by its foreign staff overseas, which led to deeper culture clashes. "As far as I know about this so-called military style management, it's implementing the corporate policy in the most efficient way," Li said. For example, when he worked at the company's London office, all the staff there were required to punch in and out every day, following strict discipline. "Sometimes, foreign employees preferred more flexible working hours, especially when it was bad weather. But the headquarters rejected this request," he said, noting that localizing its business in foreign markets was a bumpy road over some similar daily issues. For some foreign employees, being part of a growing Chinese company is still remarkable experience. "I have great respect for what the company has achieved… Huawei's growth and expansion have been amazingly impressive. It was exciting to be a part of that," William Plummer, the company's former US vice president of external affairs, told the Global Times. Plummer, who is considered an eight-year veteran bridging the Chinese company with the US government, was reportedly laid off by Huawei in April amid rising tension between China and the US. He noted that the experience with Huawei was sometimes frustrating both "due to the US government's endless assaults on the company, and the company's inability to trust and listen to non-Chinese experts in dealing with such matters." The company has been going through a tough year in 2018. In January, major US carrier AT&T suspended potential cooperation with Huawei in its mobile business over security concerns. And the "Five Eyes" nations (Australia, Canada, New Zealand, UK, US) decided to take aim at all Chinese telecoms equipment companies. Australia slashed its use of Chinese-made products in August, followed by New Zealand and the UK. In particular, the US government targeted Huawei for years, as American counterintelligence agents and prosecutors began exploring possible cases against its leadership back in 2010, according to the New York Times.

Startup opportunities abound

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THE past few years have seen an increase of entrepreneurs in the local tech startup sector. With better access to funding, there is ample opportunity for new business ideas to take off. But while the number of startups in Malaysia has increased, industry observers say we are merely scratching the surface of where the industry could be. According to Yusuf Jaffar, programme manager of Global Accelerator Programme from Malaysian Global Innovation & Creativity Centre (MaGIC), there is an estimate of 3,000 startups in Malaysia. Compared to the over 1 million registered enterprises here, startups make up only 0.25% of total companies registered. In contrast, Singapore has 42,000 startups, making up some 8.88% of companies in the island state. In the region, South Korea has an estimated 30,000 startups, while Indonesia and India has over 4,700 and 7,700 respectively. Although the numbers in Indonesia and India look low, Yusuf points out that they have a vibrant startup ecosystem. “India has 1,200 new startups every year, and this does not include the ones that are failing. These are the ones that are surviving or thriving. This shows vibrancy of ecosystem. Getting there: Hall says Malaysia’s startup ecosystem is rapidly maturing. Getting there: Hall says Malaysia’s startup ecosystem is rapidly maturing. “For Malaysia’s ecosystem to grow, we need to rapidly increase our number of startups. We need more entrepreneurs here and we need more ideas,” he says. He names four components that are needed for the industry to grow – more startups, capital, markets and talent. In terms of capital, Yusuf notes that venture capital (VC) penetration in Malaysia is relatively high with 110 VC firms. Statistically, he says, there are a lot of funds available in Malaysia with US$1.75bil in VC funding for the local ecosystem, of which, only 50% has been spent to-date. However, most of these funds go into funding Series A (US$1mil-US$3mil) and B (US$3mil-US$10mil) rounds, whereby the startups have grown sizably. According to statistics, only 0.89% of VC capital went into early-stage investment, which amounted to about eight investments last year. In Singapore, 67% of VC funding goes to the early stage. It is crucial to have adequate funding for early stage investment to ensure that entrepreneurs can tap these funds to grow their ideas. “We are investing late,” says Yusuf. In Malaysia, he estimates that the success rate for startups is 20%. He adds that 90% of the current 242 unicorns – startup company valued at over US$1bil – in the world received VC funding from the get-go, underscoring the importance of VCs in making high-growth companies. Additionally, the frequency of investments in the local market is low. In 2017, there were only 77 investments made by VCs, or only 2.57% of startups received VC investment. Considering that there are 110 VC firms here, it is small wonder that entrepreneurs feel that there is a lack of funding available in the local market. Stacking up regionally Malaysia has often been cited as a country with great potential. We have a fairly well-educated population, infrastructure and a strong economy. However, the other countries in the region have somehow garnered more interest from investors. Singapore and Indonesia, in particular, have been receiving sizeable investments from VCs. The Indochina region has also been getting a lot of attention in recent times. And not many from the industry will forget that Malaysia-founded Grab eventually moved to Singapore given the more vibrant ecosystem across the straits. But Justin Hall, partner at Singapore-based Golden Gate Ventures, says that Malaysia’s startup ecosystem is rapidly maturing. “As we’re starting to see in other regional countries, Malaysian entrepreneurs are actively seeking to build out platforms and products that appeal to the entire South-East Asia, and not simply the domestic Malaysian market. “Regional funds are actively looking for and investing in Malaysian-born startups, and I see this trend accelerating as investors look out from Indonesia and Singapore,” says Hall. Last November, Golden Gate launched its Malaysian office in Kuala Lumpur to solidify its presence here. The firm had already utilised a quarter of its Fund II to invest in early-stage tech companies that are based or operating in Malaysia. It is planning to invest a further RM75mil in Malaysia-based startups. Smart capital: Ganesh notes that VCs can now pick and choose their investments because there are more startups around. — Bernama Smart capital: Ganesh notes that VCs can now pick and choose their investments because there are more startups around. — Bernama He notes that Malaysia also has a large digital consumer market. “It bears some striking similarities to other South-East Asian countries in terms of consumptive behaviour such as regulatory bottlenecks in certain industries, and regulatory, infrastructure, and logistical constraints. This means that products and services that resonate with Malaysian consumers and businesses might be easier to localise into other regional markets than, say, companies that specifically appeal to Singaporeans,” he adds. Hall opines that Malaysian companies are undervalued compared to Indonesia and Singapore, largely due to the sheer amount of capital being invested in the later markets. There were previously also some gaps in founder experience and capability between the markets, but that gap is rapidly closing. According to Hall, logistics and supply-chain focused startups will come into focus in 2019 as the e-commerce boom starts sizing up in the region. “We are really only scratching the surface of scalable, efficient, inter-country logistics and supply-chain platforms. We hope to continue finding and investing in the best, most talented entrepreneurs in South-East Asia this year,” he says. However, Commerce DotAsia Ventures Sdn Bhd executive chairman Ganesh Kumar Bangah notes that the startup frenzy in the region seen a few years ago has cooled off. “Valuations were very high three to four years ago. I think it has cooled off. There are still some startups who ask for crazy valuations, but they don’t get funded. VCs can now pick and choose because there are so many startups. They don’t compete with each other as much as before. “It is not like three or four years ago, where a startup can say, ‘if you don’t give me this value, the next guy who comes in will offer me that’. Today, there’s realism in the game. “There is still a lot of money in the region for the right companies. People are less willing to overpay for them,” he says. Building the ecosystem Governments play an important role in developing the startup ecosystem and in creating new markets for the ecosystem. Yusuf says favourable policy can mobilise funds and help grow the industry. He cites the example of Singapore, which has allocated S$5bil in matching grants for startups, effectively pouring in S$10bil for the sector. In the US, some US$84bil is invested into VCs annually, with the bulk of these funds coming from pension funds. Obviously, the funding ecosystem in Malaysia has a long way to go. But developments in the local market such as equity crowdfunding and Leap Market have opened up more funding avenues for startups looking to tap new money. Additionally, more people have shown interest in becoming angel investors, which would help fill the gap in the early-stage financing. “It is not that there is not enough money in the ecosystem. The case is, there’s not enough intelligent capital at the early stage here. Intelligent money means that these investors have the knowledge to value the startups, and have the ability to give them the add-ons to help them grow. “We don’t lack capital, we lack intelligent capital at the early stage. We’ve got a lot of people with money and a lot of them want to invest in technology but don’t know how,” notes Ganesh. Yusuf concurs. The Malaysian ecosystem lacks specialist talents who can run funds. Most of the local VCs are managed by generalists who may not be able to discern startup-specific issues and challenges.

Malaysian Securities Commission to weed out virtual scams

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KUALA LUMPUR: All companies engaging in digital assets will have to make themselves known to the Securities Commission (SC) by Friday, even if they have decided not to carry on once the regulatory framework comes into force. This includes operators who are not registered with Bank Negara under the anti-money laundering and counter financing of terrorism – digital currencies (sector six) and those operating “underground”. The SC will reserve the right to take action against those who fail to identify themselves by Friday on grounds of breaching the securities law. SC innovation, digital and strategy executive director Chin Wei Min said those who have identified themselves to the commission can operate up to March 1. “Even if they don’t want to be in this business anymore, whatever they are holding, whether it’s money, crypto assets or digital assets, should be returned to their clients. Otherwise, we will take action. “The reason we also allow people to continue with their withdrawals and sell down is to ensure that there is an orderly market. “The last thing we want is to cause confusion, and hopefully, there are no untoward fraudulent activities that people will capitalise on in this transition period and take advantage of investors,” he told a media briefing here yesterday. While the regulation does not affect operators who are not incorporated in Malaysia, the SC can still take action against them under the Capital Markets and Services Act 2007 if the products are marketed, sold, or its operations exist in Malaysia. Operators who identify themselves to the SC must state their intent, whether they want to resume their activities, of which certain obligations have to be met, or whether they want to wind down their business. The SC will put up a list of operators and companies that have registered and received a letter from the commission for investors to check if their monies are with legitimate sources. Chin also reiterated that operators are not allowed to accept new investors, list new products or conduct any sales and marketing activities during this period. A statement by the SC last Thursday said platform operators would not be allowed to accept new investors and are only allowed to facilitate the withdrawal or transfer of client assets with the written instruction of investors. They are also not allowed to conduct any initial coin offerings (ICOs) without prior authorisation. Chin called on all ongoing ICOs to cease activities and the monies or digital assets to be returned to investors until the operators apply for authorisation and after they understand the SC requirements. The guidelines are expected to be released by the end of the first quarter this year. “If you are looking at the ones that are out there currently, the standards of the white paper are of low quality. It is important that this falls under regulated activity. “We recognise that this is an alternative fundraising avenue. The idea here is to allow us to take out all the scams and fraudulent activities and at the same time, provide a platform for our early stage entrepreneurs to raise money,” said Chin, adding that the SC did not want people to take advantage of this as investors are pumping in money on the other end. This is a high-risk investment and Chin also hinted that there could be a certain threshold for investors. The Capital Markets and Services (prescription of securities) (digital currency and digital token) order 2019, which kicked in last Tuesday, will see those operating unauthorised ICOs or digital asset exchanges facing up to a 10-year jail term and up to a RM10mil fine. The Finance Ministry said it viewed digital assets as well as its underlying blockchain technologies as having the potential to bring about innovation in both old and new industries.

Why Huawei’s 5G technology is seen as a threat by the US

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The term 5G stands for a fifth generation — to succeed the current fourth generation of mobile connectivity that has made video sharing and movie streaming commonplace. The new technology will require an overhaul of telecommunication infrastructure. The 5G will do more than make mobile phones faster — it will link billions of devices, revolutionising transportation, manufacturing and even medicine. It will also create a multitude of potential openings for bad actors to exploit. The vulnerability helps explain the rising tension between the US and Huawei Technologies Co, China’s largest technology company. Huawei is pushing for a global leadership role in 5G, but American officials suspect that could help Beijing spy on Western governments and companies. “Huawei’s significant presence in 5G creates a new vector for possible cyber-espionage and malware,” Michael Wessel, a commissioner on the US-China Economic and Security Review Commission that advises Congress, said in an interview. By connecting whole new classes of products, 5G “creates new vulnerabilities”. The technology holds great promise. Forests of gadgets will communicate instantly via millions of antennas. Cars will talk to each other to avert lethal crashes, factory foremen will monitor parts supplies and doctors can perform remote surgery as video, sound and data flow without delay. Connections will be 10 to 100 times faster than current standards — quick enough to download an entire movie in seconds. Yet, US national security officials see billions of opportunities for spies, hackers and cyber-thieves to steal trade secrets, sabotage machinery and even order cars to crash. Citing security threats, the US has been pushing allies to block Huawei from telecommunication networks. The US Congress has banned government agencies from buying the company’s gear. Why is the United States intent on killing Huawei? Look at the data below: Huawei employs more than 10,000 Phd degree holders as well as many talented Russian mathematicians. Do you know how many Huawei employees earn more than 1 million yuan (RM603,280) a year? More than 10,000 people. Do you know how many Huawei employees earn more than five million yuan a year? More than 1,000 people! In China alone, Huawei’s research and development expenditure is 89.6 billion yuan. Among the Big Three, Alibaba employs 30,000 people, Baidu 50,000, Tencent about 30,000, leading to a total of 110,000; but Huawei’s global employees total 170,000. Alibaba’s profit is 23.4 billion yuan, Tencent’s 24.2 billion yuan, Baidu’s 10.5 billion yuan, and their profits total 58 billion yuan, but 70% is taken away by foreigners. Since 2000, Huawei has earned 1.39 trillion yuan from abroad. In taxes, Tencent pays more than seven billion yuan a year, Alibaba 10.9 billion yuan, and Baidu 2.2 billion. Huawei pays 33.7 billion yuan, which is more than the total of the earlier three firms. Huawei is a high-tech company, and technology represents the true strength of a country. In China, many companies can’t last long because there are always other companies ready to replace them, but Huawei is irreplaceable. Huawei is a 100% Chinese company that has not been listed and does not intend to go public because of the susceptibility to be controlled by capital (which the United States can simply print money to do). Huawei is the first private technology company in China ever to join the league of the world’s top 100. The Chinese should be proud of Huawei. FMT News Koon Yew Yin is a retired chartered civil engineer and one of the founders of IJM Corporation Bhd and Gamuda Bhd.

China’s private companies reaching for the stars

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SATELLITES have become the latest gold mine or private companies in China as they rush to reach for the stars in the space sector. The country’s satellite industry, which used to be dominated by state-owned enterprises, is gradually changing and opening to private players. More than 90 Chinese start-ups, mostly focused on satellites or rockets, have taken their first steps in the space industry in the past four years, a senior industry expert from a Beijing-based satellite startup, who wished to remain anonymous, told China Daily based on the start-up’s internal research. “It means that on average, nearly two startups were founded every month in the past four years in China. It is significant if China is to grab a slice of the cake from the global competition in the budding space industry,” he said. According to The Space Report 2018 issued by The Space Foundation, the total market of the global space economy was US$384bil in 2017, a year-on-year increase of 7.4%. Of that, commercial activities accounted for more than 80%. Industry experts pointed out that China only accounts for 3%-5% of the space economy globally, but the country is gaining ground fast in terms of both scale and technology. Since 2014, Chinese authorities have launched policies and called for private players to actively participate in the country’s space industry. Earlier, the National Development and Reform Commission, along with the Ministry of Finance and the State Administration of Science, Technology and Industry for National Defence, also unveiled a 10-year blueprint to promote the commercial space sector. LinkSure Network, a Chinese free internet access provider, announced a plan in November last year to launch China’s first Wi-Fi satellite in 2019. It aims to send 272 satellites into space to provide free Wi-Fi globally by 2026. The first batch of investment will hit 3 billion yuan (US$447mil). Similar to Elon Musk’s Starlink plan, the satellites will be used to expand internet coverage and boost internet speeds, the Shanghai-based internet firm said. “The starting point of such a plan is to offer free internet connections to people around the world, especially those in underdeveloped areas or rough terrain,” said Wang Xiaoshu, rotating president of LinkSure Network. The company, founded in 2013, became a unicorn – a startup valued at more than US$1bil – in 2015 by raising US$52mil in its A-round of financing. “Satellite connection will be a great supplement to the ground network. The ground network, which relies on stations, has limitations due to, for example, weather and land form,” said An Yang, chief scientist of LinkSure’s satellite project. “On a global scale, the number of satellites is far from meeting the huge demand for communication. The future of the communication sector must be a combination of space and ground,” he said. Under the plan, revenue will come from services to high-end users as well as those provided to areas that the ground network is unable to reach, An said. The space era: In this undated photo, An Yang, chief scientist of the satellite project at LinkSure Network, introduces the company’s satellite system at a news conference in Beijing. — China Daily LinkSure is not the first. A string of startups have sent satellites into space for different purposes. For instance, Guoxing Yuhang Co Ltd, or ADA Space, a private firm based in Chengdu, Sichuan province, launched two artificial intelligence satellites at the end of last year. Though the country’s internet giants have not directly announced plans to develop, produce or launch satellites, they are showing a desire to do so. Tech conglomerate Alibaba Group launched a communication satellite to support its online shopping gala last year while Baidu chief executive officer Robin Li said earlier that he hoped more support could be given to private companies in the civilian space segment. Another tech giant Tencent Holdings Ltd has also jumped on the bandwagon by investing in US startup Moon Express, which was founded in 2013 by a group of space entrepreneurs. The US startup is looking to profit from the commercial space sector through leveraging core technologies including using drones to mine asteroids. Compared with state-owned companies, private firms are better at commercialisation including attracting and using money and resources, which will greatly improve efficiency, said Yang Feng, chief executive officer of Spacety, a commercial aerospace company specialising in developing commercial micro and nano satellites. “It is also a promising area that state-owned and private space companies can supplement and co-operate with each other,” he added. Notably, some private players have also entered the overseas market. China Communication Technology Co Ltd in Shenzhen, a satellite-based communication services provider, has been beefing up its overseas presence to exploit foreign opportunities. “We aim to extend our business to Africa this year and will tap into one or two Belt and Road economies each year,” said Wu Guangsheng, president of CCT. CCT is currently offering services and products in the US, Europe, the Middle East and nine other countries and regions that are participating in the Belt and Road Initiative. In 2017, its overseas revenue was about 9 billion yuan, which made up more than 60% of the total. It also plans to further explore South-East Asian markets including Indonesia, Malaysia and the Philippines, and promote its products in Central Asian economies such as Kazakhstan. Last year, the company entered the Philippines by acquiring G Telecoms Inc, the third-biggest telecom operator in the local market.

Bytedance, World’s Most Valuable Startup Is Home to a Complex Fortune

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Ownership structure used by Zhang Yiming is popular in tech Chinese authorities will soon allow so-called VIEs to list The 35-year-old founder of Bytedance Ltd. is worth about $13 billion, according to the Bloomberg Billionaires Index, making him China’s 9th-richest person and one of the fastest in modern times to amass a mega-fortune. The business, founded in 2012, has more than 1 billion active monthly users across eight mobile apps, including a news aggregator powered by artificial intelligence and a video-sharing platform. Zhang is the youngest self-made billionaire in Asia on the Bloomberg index, which tracks the world’s 500 richest people. His rapid wealth accumulation is a sign that China hasn’t lost its knack for creating mega-rich company founders despite a slowing economy. His rapid wealth accumulation -- he’s now the world’s 98th-richest person -- is a sign that China hasn’t lost its knack for creating mega-rich company founders despite a slowing economy. It also helps explain why authorities seem to be taking a more tolerant stance toward a corporate structure favored by the country’s technology tycoons, most of whom have chosen to list their businesses overseas. Zhang’s fortune is harder to calculate than the founders of Baidu Inc. and Tencent Holdings Ltd. in part because his company isn’t yet public. It’s also difficult because Bytedance is structured in the same way as the two tech behemoths -- a complicated ownership system known as a variable interest entity (VIE). Of the 44 Chinese tycoons on Bloomberg’s wealth index, eight are tech moguls with VIEs listed outside China. The billionaires’ combined net worth exceeded $150 billion as of March 21, and their stakes weren’t publicly known until the companies filed with regulators ahead of going public in New York or Hong Kong. VIEs have never been formally endorsed by the Chinese government. But in an acknowledgment of their importance, officials will soon permit VIEs to go public in the country, allowing them to list on a new technology-focused exchange set to launch in coming months. Complex Structure Bytedance is, for now, a closely held VIE with a complex structure that involves layers of holding companies. Its main business, Jinri Toutiao, is ultimately owned by Zhang and Bytedance Senior Vice President Zhang Lidong through a Beijing-registered holding firm, according to China’s National Enterprise Credit Information Publicity System. Zhang pledged his 98.8 percent stake to another Beijing company, which in turn is owned by a Hong Kong-registered firm. That entity, where Zhang is a director, is owned by a company registered in the Cayman Islands. The principals won’t be disclosed unless there’s an IPO prospectus. The Bloomberg Billionaires Index calculated Zhang’s net worth by pegging his stake at 65 percent and using the company’s valuation of $20 billion, a figure provided in 2017 by people with knowledge of the matter. The analysis assumes his stake has been diluted through funding rounds. Bytedance is said to have secured a $75 billion valuation in late 2018, making it the world’s most valuable startup -- though the figure isn’t used in the net worth calculation because the details haven’t been confirmed. Yin Ai, a Bytedance spokeswoman, declined to comment on Zhang’s wealth or the ownership structure. Zhang uses a VIE because Chinese regulations limit foreign investment across more than 30 sectors including the internet, telecommunications and education. The VIE structure -- which allows offshore companies to control domestic Chinese businesses through contractual agreements -- circumvents the rules and allows, for example, Baidu’s holding company to be based offshore (and list in the U.S.) while still being a dominant force in China. Internet giant Sina Corp. pioneered the VIE model so that it could transfer income from onshore operating businesses to an offshore holding company, an arrangement that meant the Cayman Islands entity could list on the Nasdaq Stock Market in 2000. There are risks to the structure for foreign investors, said Donald Clarke, a specialist in Chinese law at George Washington University. “A contract entered into for an unlawful purpose is invalid under Chinese law,” he said. “Any time the government wants to pull the plug, it can.” Still, that hasn’t stopped more than 100 companies using VIEs in offshore IPOs, according to research by Zhou Fang, a Beijing-based partner at law firm JunHe LLP, who predicts that more companies will follow. That growth helps explain why authorities are slowly embracing VIEs. Earlier this month, China enacted a foreign-investment law that allayed investor concerns about the future of such companies, while unicorn VIEs will be able to list on the new exchange in Shanghai, known as the Tech Board. “To some extent, it shows the government easing concerns over VIEs -- but they still care about who’s the ultimate controller of the company,” said Zhang Biwang, a partner at Allbright Law Offices. As long as the controller of the company remains a Chinese citizen, “the government won’t shut their eyes and ignore reality to make the companies give up VIEs.”
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