Category Archives: China

DoJ Anti-Trust Case Advancing v. Social Tech Companies

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The Department of Justice is preparing to open a broad probe into whether Amazon, Facebook, and other big tech companies are illegally harming their competitors, the department said in a press release on

The investigation is the latest antitrust probe looking into “Big Tech” and is separate from the potential investigations into Amazon, Apple, Facebook, and Alphabet that are reportedly being brought up against them by the DOJ and FTC.

Watch the FAANG stocks.

What are FAANG Stocks?

Facebook (FB), Amazon (AMZN), Apple (AAPL), Netflix (NFLX), and Alphabet (GOOG) are the five technology giants trading publicly in the market. Investors grouped these companies into one acronym to capture the collective impact that these companies have on the markets.

The Big FAANG Theory: 5 Reasons To Stop Dancing With Your Favorite Big 5 | Seeking Alpha

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In the case of Big Tech and Anti-Trust, the issue is to protect competition and ensure benefits to the consumer. There are at least 3 Anti-Trust laws under consideration for the Department of Justice to pursue a case or cases against big tech.

  • The Sherman Antitrust Act
  • The Clayton Act
  • The Federal Trade Commission Act

The Sherman Antitrust Act since 1890 stands to protect a free market economy and outlaws contracts, combinations or price fixing. In short, it is a crime to monopolize.

The Clayton Act is a civil statue that prohibits mergers or acquisition that harm competition.

The Federal Trade Commission Act prohibits unfair interstate methods of commerce that include false testimony to Federal agencies, mail or wire fraud and obstruction of justice.

These Acts in composition prevent corporate cartel action in a free market system. Previous cases have included telecom companies like AT&T, Proctor and Gamble and Roche Holding, a Swiss pharmaceutical company.

The DoJ has been reviewing all things big tech for a while so just a simple review has already happened. Digital platforms are not responsive to consumer demands when it comes to privacy, access to small business and entrepreneurs and retail operations.

Congress has proposed regulation and even Facebook’s Mark Zuckerberg admitted he was open to oversight or regulation in congressional testimony. So far, big tech has not addressed the concerns of users including possible corruption, censor algorithms or slanted search results.

Users have lost trust but have little choices for other platforms that offer better free enterprise usage. Is this now a discussion and investigation on consumer welfare and protection? Yes. This comes down to an congested intersection of corporations, terms of use, subjective results, narrow competition ranges and innovation all under the guise of power and money.

There is market domination and the little guy is sideline or bought out causing harm to innovation and user expectations.

Wray’s Senate Testimony on China

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Two significant items that prove Chinese espionage activities in the United States: a) Chinese Talent Plan b) Corporate Party Cells

This website has published several articles regarding the Chinese propaganda operation in the U.S. public school system and up to and including the university level.

As part of the Chinese mission to steal intellectual property beyond the insertion of censorship, culture and propaganda, China has at least two other successful objectives, the talent plan and the party cells.

China’s New Talent Policy: Objectives and Opportunities ...

A 5 page summary document on the talent plan is found here.

(U) Chinese Talent Programs are a vital part of Chinese industry. Talent programs recruit experts to fill technical jobs that drive innovation and growth in China’s economy. National, provincial, and municipal talent recruitment programs provide opportunities for experts to work in industry and academic organizations supporting key areas deemed critical to China’s development. The talent programs recruit experts globally from businesses, industry, and universities with multiple incentives to work in China. Associating with these talent programs is legal and breaks no laws; however, individuals who agree to the Chinese terms must understand what is and is not legal under US law when sharing information. A simple download of intellectual property (IP) or proprietary information has the potential to become criminal activity.

(U//FOUO) The large number of foreign students, researchers, scientists, and professionals in the United States, combined with current technological capabilities, allows foreign governments to contact and recruit individuals with the hopes to acquire advanced technology without research costs. While the majority of the population are law abiding individuals, anyone has the capability to acquire information. The theft of information can come from current or former employees, business partners, consultants, contractors, temporary hires, foreign agents, suppliers, or even vendors who have access to proprietary information. Read on here.

Per the applied website:

China initiated “the Recruitment Program of Global Experts” (known as “the Thousand Talents Plan”) since the end of 2008, under which it would bring in overseas top talents to China over the next five to ten years. Relying upon National Key Innovation Projects, National Key Disciplines and National Key Laboratories, central SOEs and state-owned commercial and financial institutions, and various industrial parks( mainly the high-tech development zones), this plan called for strategic scientists or leading talents who can make breakthroughs in key technologies or can enhance China’s high-tech industries and emerging disciplines.

By the end of May 2014,more than 4180 overseas high-level talents have been introduced in “1000 Talent Plan” by 10 times. When they go (back) to China, they are playing a positive role in the scientific innovation, technological breakthrough, discipline construction, talent training and hi-tech industry development, as an important force in the construction of the innovative country.

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May Day Story: Chinese Government’s Communist ‘Party Cells ...

As for the Party cells, China, Inc. meaning all Chinese corporations/businesses are to have a department or cell within the company that is a mobilized team ensuring all business activities and employees adhere to the Communist Party mandates.

In November, at the most important Communist Party meeting, which takes place every five years, Mr. Xi called on officials to strengthen the party in “government, the military, society and schools, north, south, east and west.” The message was quick to reach party members lower down in the ranks.

Soon after Mr. Xi’s speech, party officials in the central province of Hunan issued a notice to members instructing them to write the party into legal documents for private and state-owned companies alike. The document was accidentally made public when a local state-owned newspaper published it, but it was quickly taken down.

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In July, executives from more than a dozen top European companies in China met in Beijing to discuss their concerns about the growing role of the party in their local operations, Reuters reported.

One senior executive whose company was represented at the meeting told Reuters some firms were under “political pressure” to revise terms of their joint ventures with state-owned partners to allow the party the final say over business operations and investment decisions.

The business component with the party cells is quite important to consider when there is Chinese investment in the United States. When it comes to foreign applications, the U.S. Treasury may need to alter the approval process for all things China inside the United States given the history of theft. As for schools and business, it may be a consideration for the Chinese government to put up an export bond. Consider this is all going on as China defense industry is now the top arms maker ahead of all Western military contractors and manufacturers.

Stupid Republicans in the House and Senate, Cheap Foreign Labor

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Some of the names in the Republican House and Senate we have reasons to like very much but we should have a problem with this legislation. How about America First to start? You see, Silicon Valley did some very successful Congressional lobbying. The tech companies include Microsoft, Amazon, Equifax, Cisco, Google and Facebook to name a few. In summary, America does not have enough techies to do the jobs of the future, so rather than augmenting education or do career retraining, let’s go to China and India….swell eh? We lift visa quotas, bring in cheaper labor, put Americans out of work and launch another employment crisis, right? This too is fundamentally changing the whole immigration model again and placing foreign workers above American workers. American manufacturers go to China to build stuff because it is cheap labor. H.R. 1044 ends up doing the same thing right here in America.

Trump CANNOT sign this, please tell him so as you read on.

Image result for foreign cheap labor in the united states photo

The House of Representatives has taken a step in the direction of eliminating green card backlogs by passing the Fairness for High-Skilled Immigrants Act of 2019 (H.R. 1044) introduced by Representatives Zoe Lofgren (D-CA) and Ken Buck. (R-CO). The support was bi-partisan and passed in a 365 to 65 vote.  The bill would:

  • Increase per country quotas from 7% to 15% in the family-based categories;
  • Establish a “first-come first-served” employment-based visa system (including EB-5 investor visas) by eliminating the “per country” caps;
  • Establish a three-year transition period during which 10-15% of the visas would be set aside for countries other than India or China; and
  • Ensure that immigrants who have approved employment-based immigration visa petitions at the time of enactment do not lose their places “in line.”

Representative Lofgren estimates that it would take a decade for the per country lines to equalize.  The expectation is that if there is no increase in the number of visas available the wait time will even out to roughly seven years for everyone.  Others have suggested that eliminating the quotas will only incentivize more immigration from India and China and thus eliminate any benefit.

Senators Mike Lee (R-UT) and Kamala Harris (D-CA) introduced a companion bill in the Senate (S. 386) back in February.  That bill which also has bi-partisan support was referred to committee on July 9, 2019.

Senator Rand Paul, who opposed the “Fairness” Act, introduced the BELIEVE Act (Backlog Elimination, Legal Immigration and Employment Visa Enhancement Act) (S. 2091) on July 11, 2019.  That bill, like the House bill, would establish a “first-come-first-served” employment-based visa system but would also:

  • Quadruple the number of employment-based visas by doubling the number available annually and then exempting dependents from the “count”;
  • Grant green cards to children of temporary workers who would normally “age-out” as long as they have graduated from a U.S. university and have been in the U.S. for at least ten years;
  • Issue employment authorization to spouses and children of temporary workers in E, H and L status;
  • Provide employment and travel authorization to those waiting in line for employment-based green cards as a safeguard; and (importantly for nurses and physical therapists)
  • Exempt all shortage occupations from green card limits.

Any equalization will eliminate long lines for some employers and industries while adding wait times for others.  Proponents of the new bills believe that the equalization would create economic benefits by, among other things, making the United States more competitive with other countries like Canada that have been able to take advantage of prospective immigrants’ frustrations with the long delays in the U.S. immigrant visa process.

The Other Items Complicating a China Trade Deal

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Beyond the traditional trade talks between the U.S. Trade Representative and envoy with Beijing, there are complicating factors that enter into the debates and it is generally dealing with military aggression and espionage. So consider the following items:

  1. New Delhi: China has recently leased vast tracts of land along the coast of the Koh Kong province of Cambodia to turn into a seaside resort. An area of 45,000 hectares — 20 per cent of the coastline — has been leased for 40 years for a paltry annual rent of US $1 million.

    A Chinese private company called Union Development Group (UDG) is undertaking the project, named the Dara Sakor Seashore Resort Long Term Project.

    However, there has also been increased military cooperation between Beijing and Phnom Penh, and the US has raised concerns, with Vice-President Mike Pence writing to Cambodian PM Hun Sen that these facilities could be put to military use.

    Paul Chambers, professor of international affairs at the Naresuan University in Thailand, has claimed that senior Cambodian officials privately admitted that Hun Sen was considering approving a Chinese naval base at Kiri Sakor. The Chinese resort in Cambodia that can overnight be ...

    Hun Sen has claimed there are no foreign troops on Cambodian soil, but China has been accused of using debt traps to get its way. And according to satellite imagery accessed by ThePrint, there is a real possibility of the resort project currently under construction turning into a Chinese military base.

  2.   BRUSSELS (Reuters) – China’s ZTE opened a cybersecurity lab in Brussels on Wednesday, aiming to boost transparency four months after bigger telecoms equipment rival Huawei [HWT.UL] did the same to allay concerns about spying.Chinese vendors of network gear are being scrutinized by the United States and some of its allies who believe the equipment could be used by Beijing to spy on customers if deployed in 5G networks, which are beginning to be built around the world.

    Huawei, the world’s biggest maker of telecoms network gear, has been blacklisted by the U.S. government, meaning that U.S. companies need special approval – which they are unlikely to get – to export products to the Chinese company.

  3. The Chinese military has deployed military personnel and armored medical vehicles to Germany for joint drills, a first for the Chinese People’s Liberation Army as it attempts to forge closer ties with Europe.

    The joint exercise — Combined Aid 2019 — is focused on preparing troops with the medical service units of the Chinese and German armed forces to respond to humanitarian crises, such as mass casualty incidents and serious disease outbreaks, China’s Xinhua News Agency reported.

    The exercise follows a cooperative military medical training exercise in 2016 in Chongqing, where the PLA and the German Bundeswehr practiced responding to an imaginary earthquake scenario.

  4. Over one million Uyghurs and Muslims from other ethnic minority groups have been detained by the Chinese government and sent to “re-education” internment camps. Sources indicate that detainees are psychologically and physically abused. Uyghurs outside the camps in Xinjiang are also not free, as they are kept under constant surveillance, often using advanced technology. The Chinese government is increasingly testing this technology in Xinjiang and exporting it nationally and globally, with concerning implications for democracy and human rights.
  5. (UPI) — China is condemning a recent U.S. decision to sell $2.2 billion worth of weapons to Taiwan, saying the “reckless” policy tampers with Chinese sovereignty.

    Beijing’s foreign ministry spokesman Geng Shuang said Tuesday at a regular press briefing China opposes U.S. weapons sales to Taiwan, a country China recognizes as a breakaway province.

    “The United States has recklessly interfered in Chinese domestic affairs,” Geng said. “It has undermined China’s sovereignty and security interests.”

    The U.S. State Department on Monday approved two potential arms sales to Taiwan, worth $2.2 billion.

    The weapons to be sold to Taiwan include 108 Abrams tanks, 250 Stinger missiles and related equipment.

    On Tuesday Geng reminded reporters Beijing does not recognize Taiwanese sovereignty.

    “Taiwan is an inseparable part of Chinese territory,” the foreign ministry spokesman said. “Do not underestimate the Chinese government and the people’s will to defend national sovereignty and territory.”

    Geng added the United States was in “severe violation” of Beijing’s “One-China” policy.

    Tensions have grown between Taiwan and China since President Tsai Ing-wen assumed office in 2016.

    Tsai’s recent decision to stay in the United States for four nights during a “layover” has angered China. Beijing, under its law, bans the Taiwanese leader from making contact with U.S. politicians.

 

Hey Social Media, Here Comes Anti-Trust Scrutiny

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It has started with Google and this site has warned users of the Internet to stop using Google for years for various reasons. Now there are more. Oh, the Department of Justice may not stop with Google, so watch out Facebook, Yahoo News, Apple, Amazon and Twitter. Why?

Have you noticed how twisted news stories are? Have you noticed selective search engine results? Have you noticed search intrusions? Have you noticed censorship that may affect politics, truths or even voting habits?

How to Become a Social Media Marketing Pro for Less Than ...

Well, it begins with these social media/tech companies stopping competition, free speech and lying by omission. Reliance on these investigative activities begin with the Sherman Anti-Trust Act. This is a law where the Federal government opposes monopolies when it comes to contracts, trade and commerce. Add in the Federal Trade Commission Act and consider the timing as we move towards the 2020 General Election(s).

A short definition of the Antitrust Laws is found here.

In part from C-Net:

The move by the Justice Department comes as Google and other Silicon Valley giants face renewed antitrust scrutiny in the United States. Sen. Elizabeth Warren, a Democratic 2020 presidential candidate, has made it a key part of her platform to break up the big tech companies, including Google, Facebook and Amazon. Earlier this month, Chris Hughes, a Facebook co-founder, also called for the breakup of the company he helped create.

In February 2018, President Donald Trump had signaled via his Federal Trade Commission leadership choice that he was open to investigating big tech companies.

Former US Attorney General Jeff Sessions last September reportedly met with state attorneys general to discuss whether Google and Facebook could be suppressing conservative views, after forming a task force to look into problems in the tech industry. However, once Sessions stepped down in November, the plan to follow up with the Justice Department was shelved.

The Journal report follows reports in March that Google could be facing an investigation over violations of antitrust or consumer protection regulations.

Google has also faced antitrust pressures from regulators in Europe. In March, the search giant was hit with a $1.7 billion fine from the European Commission for “abusive” online ad practices. The Commission said Google exploited its dominance by restricting its rivals from placing their search ads on third-party websites.

Last year, the EU’s executive arm fined Google a record $5 billion for unfair business practices around Android, its mobile operating system. The investigation focused on Google’s deals with phone manufacturers, requiring them to preload specific Google apps and services onto Android phones. After the EU announced the fine, Trump tweeted, “I told you so.”

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Earlier Monday, the Wall Street Journal reported that the Federal Trade Commission will examine how Facebook’s practices affect digital competition. The Washington Post reported over the weekend that Amazon has come under heightened scrutiny by U.S. regulators. And on Friday, the Journal reported that the Justice Department is preparing a probe of Google, sending shares of parent company Alphabet down more than 7% Monday.

The possible Apple probe is linked to the Google probe, Reuters reported, and stems from meetings between the DOJ and the FTC.

The headlines together paint a daunting picture for Silicon Valley and the stock market’s most valuable companies. Big tech has long faced scrutiny from European regulators, but has so far shrugged off calls for government regulation in the U.S.

Apple has drawn increased criticism in recent months for what some — including streaming giant Spotify — see as anti-competitive behavior in the App Store. Apple owns and operates the online marketplace, collecting subscription fees from developers.

The so-called “Apple tax” accounts for a sizable percentage of Apple’s burgeoning services revenue segment, but draws the ire of developers who, in some cases, compete with Apple’s own apps in the store.

Spotify’s EU complaint against Apple, filed in March, is pending investigation by European authorities. More here.