American Ban on ZTE offers much food for thought & pain together with ZTE


This photo taken on April 19, 2018 shows the ZTE logo on a building in Nanjing in China’s eastern Jiangsu province.AFP/Getty Images
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Ban on ZTE offers much food for thought

The US ban on sales of chips and components to China’s telecommunications company ZTE shocked Chinese society. Some Chinese people are furious at US behavior, others think ZTE deserves it, while some advocate Beijing take it as a warning and boost the country’s domestic semiconductor industry. Some are more pessimistic and feel China cannot beat the US in a trade war.

The ZTE case can be argued as a show of high-tech hegemony by the US. It is absurd for Washington to pull this maneuver at the eleventh hour simply because ZTE failed to cut bonuses for its 35 employees as promised. The logic works for US society and the West is watching the case for fun. But certain Chinese people are also taking pleasure in it.  This is the reality.

It must be admitted that the US is powerful and it has started to punch China hard. The rise of China has reached a juncture where Beijing has prompted Washington to ponder its status as the world’s No.1 and provided a somewhat disjointed West with a reason to strengthen its solidarity. The impulse to contain China’s rise is emerging among Western elites. Radical and even risky policies toward China are gaining increasing support.

China needs a strong will, an open mind and the capacity to fight back. Through political solidarity and a robust economy, Beijing should be tough enough to withstand the slings and arrows. China needs to incubate and shape strategic technology research and development.

The reason why chip technology has experienced such limited progress despite years of advocacy is that the Chinese system has not yet formed a key driving force for it.

Beijing must develop its “nuclear weapons” in the field of economics to make the outside world fear strategic confrontation with China.

China should also make friends worldwide, including Western nations, so as to unite all the forces that can be united. It must not overly focus on gains and losses in friction with others. Beijing must protect its interests, but in the meantime it cannot isolate itself doing so.

China needs to accept diverse opinions on the internet, governing them but also adapting to them so as to prevent online opinions from impacting on society’s overall judgment and confidence.

It is hoped that China will develop a greater core competitiveness which other countries cannot match. This is an expectation of all Chinese people.

American business to pain together in ZTE case

The US government sales ban of American components to the ZTE Corporation will surely inflict significant damage to the company. However, the pattern of globalization shows that not only will the US not secure a victory, it will also suffer a harsh blowback. The US stock market came to a similar conclusion, and media from around the world calculated that the US’ future losses will be significant.

Qualcomm is a major mobile chip supplier for ZTE mobile phones. According to Reuters, Qualcomm will be harmed during this strike because ZTE is an important client, and its competitors could benefit from ZTE choosing alternative manufacturers. Furthermore, Qualcomm might suffer more setbacks when China retaliates on the US for this ban.

According to studies by various media organizations, the full implementation of the seven-year sales ban on ZTE will amount to combined loss of $6.8 billion for Qualcomm, Acacia Communications, and Oclaro Inc. It will also affect more than 32,000 employees. Due to this estimation, Acacia Communications stocks dropped 35.95 percent this week. Additionally, Intel and Microsoft will be hit by shockwaves in the tech industry.

Over the years, China has grown to become the largest sales market for US electronic chips, providing US companies with substantial funds for research and development. Losing the Chinese market might cause these US companies to decline in quality, which could result in a bleak financial future.US semiconductor companies are facing real threats as they will likely be taken over by their opponents.

The US will also be hurt from increasing suspicions to its business environment. The US government ended ZTE’s business dealings with American companies by force, due to “35 employees’ bonuses issues” for the company with 80,000 employees. Is the American business environment still trustworthy? Does this not imply that the US government can bully whoever it wishes? Cooperation with American companies is already difficult and being reviewed by the US government for political correctness will not make matters easier.

Some Westerners criticize the risks of doing business with Chinese companies, but not one multinational company has experienced the same mistreatment ZTE has been subjected to. The proper name for ZTE’s case could be called “35 people bonus crisis” and if this is what starts the cooperation breakdown between the US and China, or globalization in general, it will be one of the most bizarre jokes in history.

China will hit back in the best way it knows and inflict losses for American companies in China. Washington should not have any delusions of tolerance from China after causing such damage to its businesses.

With China and the US trading blows in this situation, the US economy and trade relations will delve into chaos. Investments of American companies in China far exceed Chinese companies in the US, meaning that the US has more to lose since these investments will not be spared during this fight.

Most importantly, Chinese society will lose faith in cooperation with American high-tech companies. The “35 people bonus crisis” will also serve as a push for China determination to develop its semiconductor industry to replace America’s components.

China will endure a sting in the high-tech sector confrontation, but the US will suffer lasting pain. China has been slow to develop its semiconductor technology because it is cheaper to purchase American products in the past. Developing chips and operating systems will require massive market support and China’s yearly import of $200 billion can definitely cover the funding for this research.

The consequences of punishing ZTE is now out of Washington’s control. The intertwined economies of China and the US are like “conjoined twins” and separation will cause major pain for both sides. Washington’s thinking that this is a unilateral punishment is naïve, and this short-sighted judgement will be paid at the expense of American companies and enterprises. – – Global Times
Related  

Why China cannot concede in trade war

Washington has unrealistic fantasies about “balancing
China-US trade.” It tries to solve US economic issues with sticks and
threats rather than painstaking reforms. Simply put, it attempts to make
a hard sell. The world is required to buy whatever the US produces at
its convenience, and developing countries like China cannot make
technological progress in the process.

China to open wider: How will US react?

If Washington thinks China’s upgrade of its opening-up
was triggered by US menaces, it is making a historic mistake in its
relationship with Beijing. Whether the Sino-US trade war is aggravated
depends on Washington. It is hoped US actions accord with Trump’s
pleasant tweets rather than more old carrot-and-stick

Opening-up China’s future growth path

The community with shared future for mankind is a goal of
China to lead the world forward into the future. The Belt and Road
initiative is one of the paths toward it. The world has never seen a
major power emerging with a peaceful and cooperative manner. Some people
say that China is only pretending to rise peacefully. After Beijing’s
new measures were announced at Tuesday’s forum, the world should have
gained a better understanding of China.

Trump’s car tariff tweet distorts truth

With the development of China’s economic growth and
strength of science and technology, further opening-up and lowering of
tariffs will be the future trend. But how China will do this will be
decided based on WTO rules and China’s own interests. This is China’s
sovereignty. Beijing will never listen to the command of Washington.

 

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VR gaming gears up for the mainstream


A group of gamers wearing VR headsets at Zero Latency Singapore. The VR arcade in Singapore is the latest to pop up around the world as backers of the technology seek to shake off teething problems and break into the mainstream. — AFP

Arcades seek to take virtual reality gaming mainstream

 

SINGAPORE: Gamers wearing headsets and wielding rifles adorned with flashing lights battle a horde of zombies, letting out the occasional terrified shriek.

The virtual reality arcade in Singapore is part of a wave of such venues being opened as backers of the technology seek to shake off teething problems and break into the mainstream.

The buzz around virtual reality (VR) gaming has seen Taiwan-based HTC, Sony and Facebook-owned Oculus VR battling to woo consumers with a range of headgear.

But it has been slow to really take off, partly due to the hefty price of top-end headsets, beginning at around US$350 (RM1,362), and the challenges in setting up complex VR systems at home.
But VR arcades, which have been springing up around the world, particularly in Asia, are now giving people the chance to try it out more easily and for a fraction of the price.

“Given the complications of at-home, PC-based VR systems, pay-per-use, location-based entertainment venues can fill the gap,” said Bryan Ma, from International Data Corporation (IDC), a consumer technology market research firm, in a recent note on the industry.

Several VR gaming companies have made forays into Singapore, seeing the ultra-modern, affluent city-state that is home to hordes of expatriates as a good fit.

The zombie fight-out was taking place at a centre where participants stalked a room with a black floor and walls.

“I did paintball before, it’s quite fun… but I think the whole scene is much more interesting here,” said Jack Backx, a 55-year-old from the Netherlands, who was playing with colleagues from the oil and gas industry on a work day out.

The location is run by VR gaming group Zero Latency, which started in Australia and has expanded to nine countries. It uses “free-roam” virtual reality – where gamers move around in large spaces and are not tethered to computers with cables.

It’s not all intense, shoot-’em-ups – VR group Virtual Room has an outlet in Singapore that transports gamers to scenarios in the prehistoric period, a medieval castle, ancient Egypt and even a lunar landing.

Asia leads the way

VR arcades have been springing up in other places. China was an early hotbed for virtual reality gaming although the industry has struggled in recent times, while they can also be found in countries across the region including Japan, Taiwan and Australia.

Many key industry milestones over the past two years have been in Asia but arcades have appeared elsewhere – London’s first one opened last year while there are also some in the United States.

Consumer spending on virtual reality hardware, software and services is expected to more than double from US$2.2bil (RM8.56bil) in 2017, to US$4.5bil (RM17.51bil) this year, according to gaming intelligence provider SuperData Research.

For the best-quality experience, it can be relatively expensive – a session in Singapore costs Sg$59 (RM175).

“The equipment here is not cheap,” said Simon Ogilvie, executive director of Tomorrow Entertainment, which runs the Zero Latency franchise in Singapore.

The industry faces huge challenges.

China offers a cautionary tale – according to IDC, VR arcades have struggled there after expanding too quickly.

There have also been warnings that improvements in home-based technology may eventually lead to VR gaming centres suffering the same fate as traditional arcades that were once filled with Pac-Man and Street Fighter machines.

“The rise and fall of coin-operated videogame arcades in the 1980s suggests that such VR arcades may eventually fade in relevance as home-based computing power and prices fall within mass consumer reach,” said the note from IDC’s Ma.

Rebecca Assice, who runs Virtual Room in Singapore, said one challenge was getting people interested in the first place as many still did not know about the arcades.

“VR is still a really new industry,” she said. “A lot of people just don’t know this sort of activity exists.” — AFP

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Silicon Valley faces tech backlash: maybe needs to be taken down to size


Polarising content and Russian manipulation of social media are fuelling calls for greater regulation of firms like Google and FB. — 123rf.com

 

Demonstrators at a rally in opposition to white supremacists and the postponed right-wing “March on Google” protest of James Damore’s firing that was originally planned the same day. — Bay Area News Group/TNS

Once a darling, tech hub Silicon Valley is under attack for its technologies which are damaging our lives.

ONCE upon a time, there was a beautiful land filled with bright minds and gleaming prospects.

People called it Silicon Valley, and out of it flowed knowledge, ideas and innovations that gave us almost-unthinkable powers to learn, to communicate, to transform our lives into exactly what we wanted them to be. The region’s denizens toiled happily at the cutting edge, and day by day, they were making the world a better place.

But today, this beautiful land is under attack from within and without. The products and services it sends out into the world are being called addictive, divisive and even damaging, raising the cry that instead of making the world better, they are making it worse.

As technology plays a deeper and more pervasive role in nearly every aspect of our lives, the industry that has upended everything from shopping and travel to education and human relationships is facing a backlash the likes of which Silicon Valley has never seen.

Polarising online content and Russian manipulation of social media platforms have fuelled calls from the right and the left for greater regulation of firms like Google, Facebook and Twitter. World wide web inventor Tim Berners-Lee, Republican US Senator John McCain, leftist billionaire George Soros, Salesforce CEO Marc Benioff and conservative Fox News host Tucker Carlson have all joined the chorus demanding the government take action.


Terrific or terrible?

Critics argue that the big tech firms have become too economically dominant, intruded too far into our lives and have too much control over what gets seen and shared online. At the same time, critics contend, those same companies have failed to take responsibility for the misuse of their services by malevolent actors, for the spread of fake news and for the way their platforms and algorithms can be gamed.

Stanford computer science students are protesting Apple, demanding it make less addictive devices.

The #MeToo movement has amplified a debate over sexual harassment and diversity in Silicon Valley. And conservatives have attacked the whole region as a liberal echo chamber that stifles precisely the open debate it claims to embrace.

Thus the backlash.

“What makes it categorically different now is that this is the first time I have seen that people are saying, ‘Hmmm, maybe Silicon Valley needs to be taken down to size,’ said Leslie Berlin, project historian for Stanford University’s Silicon Valley Archives. “This notion that what Silicon Valley represents actually threatens rather than embodies what makes the country great, that is new.”

Berners-Lee in an open letter recently called the tech giants “a new set of gatekeepers” whose platforms can be “weaponised” to widen social rifts and interfere in elections. Benioff told CNBC in January that social media was “addictive” and should be regulated like cigarettes.

Carlson wants Google treated like a public utility because it “shuts down free speech for political reasons”.

Former president Barack Obama, at a February conference at MIT, said social media was Balkanizing public discourse, creating “entirely different realities” that contribute to “gridlock and venom and polarisation in politics”.

Even Facebook has jumped in with an unusual mea culpa, issuing a news release in February admitting it was “far too slow to recognise how bad actors were abusing our platform”.

Raking in the money

Despite its critics, Silicon Valley remains hugely successful and influential, with 21% of employed people working in tech, according to a 2017 Federal Reserve Bank report. Though the region’s economy has shown some signs of slowing, job growth in Silicon Valley has been more than double the national rate since the beginning of the economic recovery in 2010.

And the region remains home to the two most valuable public companies in the world, Apple and Google’s parent firm Alphabet, as well as world-class universities. Every day, people around the world benefit from Silicon Valley-built tools that have transformed communication, opened access to information, and made life easier.

The notion that Silicon Valley’s best days are over is far from new – people have been predicting its demise ever since the advent of the microprocessor, said Berlin.

“It was going to be the oil shocks of the 1970s that were going to take it down, and then competition from Japan, India and China, the Dot Com bust, Y2K – it’s just been one thing after another, the 2008 crash,” Berlin said. “Time and again, Silicon Valley has bounced back from these perceived threats. Silicon Valley has always been sort of the golden child of the Golden State.”

But this time, Berlin and others see something shifting.

“It is unprecedented,” UC Berkeley Haas School of Business professor Abhishek Nagaraj, said of the backlash. “I think this is because of how deeply penetrated tech is in people’s lives.”

Nagaraj, who studies the tech industry, compared the demonisation of Silicon Valley to the outcry against Wall Street after deceptive investment banking practices knocked the United States into the Great Recession.

“It appears as if, basically, tech is the new finance,” Nagaraj said.

Overwhelming force

Increasingly, the public views the tech industry as a force against which they are powerless, said San Jose State University anthropology professor Jan English-Lueck, who researches Silicon Valley’s culture.

“It’s now on people’s radar screen to be a place of the elite, where they’re changing the world in a way that ordinary people don’t have an influence on that change,” EnglishLueck said.

While the devices and social media platforms created by hugely successful Silicon Valley tech firms have given us new ways to connect, they’ve also thrown the worst of human nature into our faces, said English-Lueck.

“You don’t have to look in somebody’s eyes when you’re telling someone something ugly,” English-Lueck said. “That’s really exaggerated people’s ability to hate.”

She believes the optimistic view of technology as the great liberator and connector helped keep major tech firms from building more safeguards into their platforms to prevent vicious online attacks, dissemination of fake news and nation-state intrusions.

“Do we want free speech and free action that’s amplified by the Internet?” she said. “Sometimes we don’t want that.”

Stephen Milligan, CEO of pioneering San Jose data-storage firm Western Digital, doesn’t think technology can solve everything.

But Milligan doesn’t buy the notion that Silicon Valley has lost its bloom. The region’s companies are still trying to solve “real problems” in the world and having a positive impact on people’s lives.

“It’s still cool,” Milligan said. “I actually think it’s more cool.”

Silicon Valley boosters such as Peggy Burke, CEO of Palo Alto branding agency 1185, will tell you the technology industry can fix the problems it creates.

“You have to weigh the good and the bad, and if the bad gets so bad that it outweighs the good, someone will solve for that,” Burke said. “If there’s a problem – traffic, transportation, housing, stopping Russians, fake news – someone in the Valley right now is working on solving for that problem. I’ve been in the Valley for 30 years and I’ve seen it happen over and over.”

A reckoning for the region is likely, but it won’t be a fatal one, Berkeley’s Nagaraj said. The problems arising from technology will exacerbate the ongoing decentralisation of innovation, as boot camps bring entrepreneurial skills to new regions, and clusters of expertise – in “deep learning” artificial intelligence in Toronto, for example – lead to cooperative projects linking the Valley to other areas, he said.

“It’s going to be a much more collaborative process than one of replacement,” he said. “We are moving to a world where not all the big hits come from Silicon Valley.”

Source: By Ethan Baron – The San Jose Mercury News/Tribune News Service

 

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Tycoon Robert Kuok stands tall amid the bashings from Umno leaders


Well-regarded: Kuok in his office in Hong Kong. Picture taken from ‘Robert Kuok: A Memoir’.

 

DURING the two week-Chinese New Year celebrations, with the tossing of yee sang for better times ahead, the key topic of conversation among the Chinese revolved around the general election.

But the sudden eruption of high-level political attacks on Robert Kuok last weekend sent shockwaves through the community. Since then, the richest man in Malaysia has been the talk of the town.

The onslaught could not be taken lightly as Kuok is not just any ordinary businessman but someone of stature held in high esteem not only in Malaysia and China, but also by the global Chinese community.

It is a known fact that Kuok helped to lay the groundwork for the end of communist insurgency in Malaysia, played a role in easing racial tension after the May 13 racial riots and contributed funds to Umno and MCA during elections.

His generous donations have benefited the poor and rich.

Kuok has always stood tall among everyone.

Dubbed the “Sugar King of Asia”, Kuok has set up a huge international empire with businesses spanning from commodity trading to hotels, sugar and oil palm plantations, wheat flour milling, property development and entertainment.

In Malaysia, he retains control of Shangri-La Hotels and the wheat flour business after selling his sugar and property businesses.

Hence, the Chinese community here feels hurt to see their business icon being smeared based on hearsay. They see grave injustice done to this man whose loyalty and commitment to the country is being questioned.

However, due to suspicion that the whole episode could be a politically driven scheme ahead of GE14 for various reasons, Chinese community leaders only spoke up after Kuok defended himself.

While many are aware that Kuok’s recent memoir had irked some quarters due to his disdain for the New Economic Policy (1971-90), they are perplexed by the timing of this smear campaign.

Kuok’s political revelations in his book have also earned him brickbats from some people.

This round, the criticisms against the tycoon were based on three articles posted by blogger Raja Petra Kamaruddin on the online portal Malaysia Today.

The most startling allegation made by the controversial blogger, who has a record of stirring up racial hatred towards local Chinese in past writings, was that Kuok had donated hundreds of millions to the DAP in a bid to overthrow the Umno-led government.

Without verifying the content, Malay critics and senior Umno politicians told Kuok to be grateful to the Government as the tycoon had built his early sugar, rice and flour empire based on his good ties with Umno leaders.

The remarks by Tourism and Culture Minister Datuk Seri Nazri Aziz were particularly scathing, as crude and offensive words were used. In addition, he told Kuok to surrender his citizenship.

The critics might have misconstrued earlier statements by Datuk Seri Najib Tun Razak, who had said that some of the richest people, including Kuok, owed their success to opportunities created through government policies.

“If we look at the list of names of the richest people in Malaysia, such as Robert Kuok, who gave him the key to become the rice and sugar king? It was given to him by the ruling government,” said the Prime Minister at an event in Selangor on Feb 24.

“Yes, he is driven, hardworking, industrious and disciplined – but that is not enough. Everyone still needs the key to creating these opportunities,” he added.

Although DAP leaders promptly denied receiving money from Kuok, this failed to stop the tirade of aspersions cast against Kuok.

It was obvious that Kuok had to defend himself. He issued a statement last Monday, saying all allegations against him were “untrue, unjustified and amounted to libel”.

The 94-year-old Kuok, who moved his business headquarters from Kuala Lumpur to Hong Kong in 1975, denied funding The Malaysian Insight portal or opposition parties to overthrow the Government.

He also denied that he was anti-government, a racist or a Chinese chauvinist.

While Kuok’s hint of instituting libel suits might have some deterrent effect, the proposal by MCA president Datuk Seri Liow Tiong Lai to the Prime Minister to intervene in the matter could have shut the mouths of Umno leaders.

Liow tweeted: “I have conveyed the feelings of the Chinese community to the PM. We hope that the PM will intervene to put this issue to rest. Mr Kuok has contributed greatly towards the development of the nation.”

If the vicious attacks on Kuok were allowed to continue, the first casualty in GE14 could be MCA and Gerakan, and ultimately Barisan Nasional, as angry Chinese could be provoked to vote against the coalition in GE14.

And the unintended winner from this latest episode could be the opposition side.

The question now is: Faced with so many challenges in the coming polls, could Barisan afford to sow a new seed of discontent and allow it to germinate unchecked?

The Prime Minister’s Office issued a statement, saying Kuok’s success is “an inspiration” for other entrepreneurs.

Though this brief statement and its “cooling effect” came a bit late in the political sense, it was better than nothing.

In addition, a tribute to Kuok posted by Najib’s brother Datuk Seri Nazir Razak on Instagram is also a comfort to the Chinese.

“I may not agree with all his views but he (Kuok) is a patriot, the icon of Malaysian business and a first-class gentleman,” said Nazir, the chairman of CIMB Group Holdings Bhd last Wednesday.

However, the injustice done to Kuok on such a scale is unlikely to be forgotten soon, as this incident has also stirred up some debates.

Is there any hidden political agenda to vilify Kuok before GE14? Do successful businessmen owe their allegiance to ruling political parties? Is it morally wrong to change your political stand?

Dr Oh Ei Sun, former political secretary of Najib, offers some explanations to Sunday Star: “Robert Kuok has shown his contempt for the NEP in his book. This may be seen as questioning Malay supremacy and this attitude must be nipped in the bud.”

He adds that Kuok may not be forgiven for stating the obvious, which many Chinese have wanted to voice out but could not for fear of losing business opportunities.

In his memoir, Kuok stated that although the Chinese have played a significant role in the economic development of Malaysia and other South-East Asian nations, many did not receive just and fair treatment.

Sin Chew Daily, quoting unnamed Barisan sources, says the bashing of Kuok also carried a warning message to the business community to think twice before they contribute election funds to opposition parties.

“These attacks also sent a message to the Malay community that they must be united to support Umno, which is being ditched by others it has helped to prosper,” said the Sin Chew report last Thursday.

Although a life member of the MCA, businessman Tan Sri Lee Kim Yew believes people owe no loyalty to political parties.

He tells Sunday Star: “A businessman is expected to be loyal to his country, not to ruling parties. Politicians and political parties come and go.

“Whoever becomes the government has a duty to create a conducive environment for the people to prosper and live harmoniously. If politicians are not worthy of support, people are free to switch their political stand in a democracy.”

Apart from ordinary people, the business community is also watching developments linked to Kuok with concern.

“If the issue on Robert Kuok is not handled properly, there will be a negative impact on the sentiment of investors. We are all following these developments,” says a businessman at a CNY dinner.

by Ho Wah Foon, The Star

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https://youtu.be/cCoO3JEKZ48 PETALING JAYA: The recent attacks against multi-billionaire Robert Kuok, including those from Umno leader..

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


https://youtu.be/cCoO3JEKZ48

PETALING JAYA: 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. – The Star

 

Goodbye, Silicon Valley


Greener pastures: Wang at his company’s headquarters in Shanghai. The successful Silicon Valley alumni was lured
back to China by the promise of a brighter future.

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.

“At Google, at LinkedIn, at Uber, at AirBnB, they all have Chinese engineers who are trying to figure out ‘should I stay, or should I go back’.”

More interesting than prospects for some may be the sheer volume of intimate data available and leeway to experiment in China.

Tencent’s WeChat, built by a small team in months, has become a poster-child for in-house creative licence.

Modern computing is driven by crunching enormous amounts of data, and generations of state surveillance has conditioned the public to be less concerned about sharing information than Westerners.

Local startup SenseTime for instance has teamed with dozens of police departments to track everything from visages to races, helping the country develop one of the world’s most sophisticated surveillance machines.

China’s 751 million Internet users have thus become a massive petri dish.

Big money and bigger data can be irresistible to those itching to turn theory into reality.

Xu Wanhong left Carnegie Mellon University’s computer science PhD programme in 2010 to work on Facebook’s news feed.

A chance meeting with a visiting team from Chinese startup UCAR Technology led to online friendships and in 2015, an offer to jump ship. Today he works at Kuaishou, a video service said to be valued at more than US$3bil (RM12bil), and commutes from 20km outside Beijing. It’s a far cry from the breakfast bar and lush spaces of Facebook’s Menlo Park headquarters.

“I didn’t go to the US for a big house. I went for the interesting problems,” he said.

Then there are those for whom it’s about human connection: no amount of tech can erase the fact that Shanghai and San Francisco are separated by an 11-hour flight and an even wider cultural chasm.

Chongqing native Yang Shuishi grew up deifying the West, adopting the name Seth and landing a dream job as a software engineer on Microsoft’s Redmond campus.

But suburban America didn’t suit a single man whose hometown has about 40 times Seattle’s population.

While he climbed the ranks during subsequent stints at Google and Facebook, life in America remained a lonely experience and he landed back in China.

“You’re just working as a cog in the huge machine and you never get to see the big picture.

“My friends back in China were thinking about the economy and vast social trends,” he said.

“Even if I get killed by the air and live shorter for 10 years, it’ll still be better.” – Bloomberg

Related Link:

Next Crisis Will Start in Silicon Valley – Bloomberg

Chinese workers abandon Silicon Valley for riches back home …

Moving forward with affordable housing


One way to solve housing shortage problem is to build more houses.

“If we take a look at countries with commendable housing policies such
as Singapore and Hong Kong, we notice that the government plays a very
important role in building and ensuring a sufficient supply of housing
for their people.”

THE issue of affordable housing has been a hot potato for many countries, especially for a nation with a growing population and urbanisation like ours.

In my previous article, I mentioned that there was a growing shortage of affordable housing in our country according to Bank Negara governor Tan Sri Muhammad Ibrahim. The shortage is expected to reach one million units by 2020.

According to Bank of England governor Mark Carney, one of the most effective ways to address the issue is to build more houses. There are good examples in countries like United Kingdom, Australia and Singapore, which have 2.4, 2.6 and 3.35 persons per household respectively.

In comparison, the average persons per household in our country is 4.06 person, a ratio which Australia had already achieved in 1933! To improve the current ratio, we need to put more effort into building houses to bring prices down.

If we take a look at countries with commendable housing policies such as Singapore and Hong Kong, we notice that the government plays a very important role in building and ensuring a sufficient supply of housing for their people.

For example in Singapore, their Housing and Development Board (HDB) has built over one million flats and houses since 1960, to house 90% of Singaporeans in their properties. In Hong Kong, the government provides affordable housing for lower-income residents, with nearly half of the population residing in some form of public housing nowadays. The rents and prices of public housing are subsidised by the government and are significantly lower than for private housing.

To be on par with Australia (2.6 persons per household), our country needs a total of 8.6 million homes to house our urban population of 22.4 million people. In other words, we need an additional 3.3 million houses on top of our existing 5.3 million residential houses.

However, with our current total national housing production of about 80,000 units a year, it will take us more than 40 years to build 3.3 million houses! With household formation growing at a faster rate than housing production, we will still be faced with a housing shortage 40 years from now.

Therefore, even if the private sector dedicated all its current output to build affordable housing, it will still be a long journey ahead to produce sufficient houses for the nation. It is of course impossible for the private sector to do so as it will be running at a loss due to rising costs of land and construction.

In view of the above, the government has to shoulder the responsibility of building more houses for the rakyat due to the availability of resources owned by the government. Land, for example, is the most crucial element in housing development. As a lot of land resources are owned by government, they must offer these lands to relevant agencies or authorities to develop affordable housing.

I recall when I was one of the founding directors of the Selangor State Development Corp in 1970s, its main objectives was to build public housing for the rakyat.

However, today the corporation has also ventured into high end developments in order to subsidise its affordable housing initiatives. This will somehow distract them from focusing on the affordable housing sector.

Although government has rolled out various initiatives in encouraging affordable houses, it is also important for the authorities to constantly review the original objectives of the relevant housing agencies, such as the various State Economic Development Corporations, Syarikat Perumahan Negara Bhd, and 1 Malaysia People’s Housing Scheme, to ensure they have ample resources especially land and funding to continue their mission in building affordable housing.

A successful housing policy and easy access to affordable housing have a huge impact on the rakyat. It is hoped that our government escalates its effort in building affordable housing, which will enhance the happiness and well-being of the people, and the advancement of our nation.


Datuk Alan Tong has over 50 years of experience in property development. He is also the group chairman of Bukit Kiara Properties. For feedback, please email feedback@fiabci-asiapacific.com.
By Alan Tong

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