Day: January 19, 2018

Facebook to Prioritize ‘Trustworthy’ News

Social media giant Facebook said Friday that it would begin to prioritize “trustworthy” news outlets on its site in order to counteract “misinformation.”

The company said it would ask its more than 2 billion users to rank the news organizations they trusted in order to prioritize “high-quality news” over less trusted sources. It said the new ranking system would seek to separate news organizations trusted only by their own subscribers from ones that are broadly trusted across society.

Facebook Chief Executive Mark Zuckerberg wrote in a blog post that the company was not “comfortable” deciding which news sources are the most trustworthy in a “world with so much division.”

“There’s too much sensationalism, misinformation and polarization in the world today,” he wrote.

“Social media enables people to spread information faster than ever before, and if we don’t specifically tackle these problems, then we end up amplifying them,” Zuckerberg added.

​Outside experts rejected

He said Facebook considered asking outside experts to choose the most reputable news sources, but that doing so would most likely have led to an “objectivity problem.” He said the company decided to rely on member surveys as the most “objective” way to rank trust in news sources.

Zuckerberg said it’s important that Facebook’s News Feed “promotes high-quality news that helps build a sense of common ground.”

He also announced that Facebook would shrink the content on its News Feed from 5 percent to 4 percent. This means users will see fewer posts from news organizations while scrolling through their feeds in favor of more posts from friends.

Facebook has been struggling with how to handle its distribution of news in an era of fake news and claims of media bias.

The social media company has faced accusations that it helped spread misinformation as well as Russian-linked content meant to influence the 2016 U.S. elections.

Also last year, U.S. Republican lawmakers expressed concern that Facebook was suppressing stories from conservative news sources.

The Pew Research Center has found that more than two-thirds of Americans are getting at least some of their news from social media, making such outlets prime sources of information.

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Soccer Great Pele Cancels Appearance in England Because of Fatigue

Brazilian soccer great Pele has canceled a trip to England where he was to receive an award from the English Football Writers’ Association.

A spokesman for Pele said the former soccer (football) player was resting at his home in Guaruja, Brazil, and that reports that he had been taken to a hospital were “fake news.”

“He said he’s not going [to England] because it’s going to be very tiring, very stressful,” said spokesman Pepito Fornos.

Pele, 77, was supposed to attend a dinner in his honor Sunday at the Savoy Hotel in London, organized by the Football Writers’ Association. The group said Pele would not appear after having collapsed from what appeared to be severe exhaustion.

Pele has frequently been admitted to hospitals in the past few years for kidney and prostate problems, and has also undergone hip surgery.

Fornos said Pele had reduced his scheduled appearances recently so he could receive more therapy for his hip issues.

Pele appeared in a wheelchair in Moscow in December for the draw for this year’s World Cup. Fornos said Pele was planning to attend the World Cup in Russia.

Pele is the only player to win three World Cups, helping Brazil to win victories in 1958, 1962 and 1970.

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Former IBM Developer Sentenced for Espionage, Theft of Trade Secrets

A former software engineer for IBM in China has been sentenced to five years in prison for stealing the source code for highly valuable software developed by the tech company, the U.S. Justice Department announced Friday.

Xu Jiaqiang, 31, was sentenced Thursday by a federal judge in White Plains, New York, months after he pleaded guilty to three counts of economic espionage and three counts of theft, possession and distribution of trade secrets.

Prosecutors said Xu stole the source code for computer performance-enhancing software while working for IBM from 2010 and 2014, with the intent to benefit China’s National Health and Family Planning Commission. 

Acting Assistant Attorney General Dana J. Boente of the Justice Department’s national security division said the agency “will not hesitate to pursue and prosecute those who steal from American businesses.”

Xu, a Chinese national, “is being held accountable for engaging in economic espionage against an American company,” Boente said in a statement.

U.S. Attorney Geoffrey S. Berman for the Southern District of New York said, “Xu’s prison sentence should be a red flag for anyone attempting to illegally peddle American expertise and intellectual property to foreign bidders.”

IBM was not identified in court documents. But a LinkedIn profile of Xu identifies him as a system developer for IBM in China from 2010 to 2014 with a master’s degree from the University of Delaware.

A Justice Department spokesman declined to say whether the company in question was IBM. IBM didn’t immediately respond to a request for comment.

Xu appeared on the FBI’s radar screen in 2014 after the bureau received a tip that Xu, who had by then left the company, claimed to have the source code to one of company’s most closely guarded software packages and was using it in “business ventures” unrelated to its clients.  

The software is described as a cluster file system sold to governments and large companies and used to enhance computer performance.

Undercover FBI agents posing as an investor and project manager for a large data storage company approached Xu, who tried to sell them the software and admitted that he’d built it with stolen source code, according to prosecutors.

IBM employees later confirmed to the FBI that the software had been built by someone with access to the company’s proprietary source code.

Xu was arrested in December 2015 after meeting with an undercover agent at a White Plains hotel.  

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‘Game of Thrones’ Ice Hotel Opens in Finland

A “Game of Thrones”-themed ice hotel complete with a bar and a chapel for weddings has opened in northern Finland in a joint effort by a local hotel chain and the U.S. producers of the hit TV series.

Lapland Hotels said Friday they chose “Game of Thrones” to be the theme for this season’s Snow Village, an annual ice-and-snow construction project covering 20,000 square meters (24,000 sq. yards) in Kittila, 150 kilometers (93 miles) above the Arctic Circle.

Snow Village operations manager Janne Pasma told Finnish national broadcaster YLE that he was a huge fan of the series and it was “a dream come true” that HBO Nordic agreed to go along.

The hotel, which stays open until April, suggests that guests stay only one night due to below-zero temperatures.

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IOC: More Initiatives Coming to Promote Korean Unity

Olympics organizers on Friday welcomed an agreement between North and South Korea to unite athletes at the upcoming Winter Games in Pyeongchang, and promised that “much more exciting initiatives” promoting Korean unity will emerge this weekend.

“Watch this space,” International Olympic Committee presidential spokesman Mark Adams told the Associated Press in an interview, a day before a crucial meeting of Korean delegations at Olympics headquarters in Lausanne. He declined to elaborate, saying the decisions would come Saturday.

Referring to a detailed peace-making agreement between the rival countries announced Thursday by South Korea’s Unification Ministry, including a joint team in the women’s hockey tournament, Adams said it was “great … but these are discussions.”

The announcement from South Korea, which hasn’t yet been finalized by the IOC, would mark the first time the two national Olympic committees would be competing together in a single team.

“I can tell you that there will also be some much more exciting initiatives coming through as well tomorrow,” Adams added.

Some have questioned the fine print of the agreement announced by the two Koreas, saying it gives the combined hockey squad a far larger roster than any other national team.

Asked how the IOC planned to maintain the integrity of the sport, Adams said: “People would say that these are exceptional circumstances, and we need exceptional measures.”

“This is about the Olympic spirit,” Adams added. “And the Olympic spirit is about nations competing, athletes competing, and we will do our best make sure that it sends a signal that sport can improve the world.”

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Christa McAuliffe’s Lost Lessons Finally Taught in Space

Christa McAuliffe’s lost lessons are finally getting taught in space.

Thirty-two years after the Challenger disaster, a pair of teachers-turned-astronauts will pay tribute to McAuliffe by carrying out her science classes on the International Space Station.

As NASA’s first designated teacher in space, McAuliffe was going to experiment with fluids and demonstrate Newton’s laws of motion for schoolchildren. She never made it to orbit: She and six crewmates were killed during liftoff of space shuttle Challenger on Jan. 28, 1986.

Astronauts Joe Acaba and Ricky Arnold will perform some of McAuliffe’s lessons over the next several months. Acaba planned to share the news during a TV linkup Friday with students at her alma mater, Framingham State University near Boston.

Four lessons — on effervescence or bubbles, chromatography, liquids and Newton’s laws — will be filmed by Acaba and Arnold, then posted online by the Challenger Center, a not-for-profit organization supporting science, technology, engineering and math education.

The center’s president, Lance Bush, said he’s thrilled “to bring Christa’s lessons to life.”

“We are honored to have the opportunity to complete Christa’s lessons and share them with students and teachers around the world,” Bush said in a statement.

NASA’s associate administrator for education, Mike Kincaid, said the lessons are “an incredible way to honor and remember” McAuliffe as well as the entire Challenger crew.

Four of the six lessons that McAuliffe planned to videotape during her space flight will be done. A few will be altered to take advantage of what’s available aboard the space station.

The lessons should be available online beginning this spring.

Acaba returns to Earth at the end of February. Arnold flies up in March. NASA is billing their back-to-back missions as “A Year of Education on Station.”

The two were teaching middle school math and science on opposite sides of the world — Acaba in Florida and Arnold in Romania — when NASA picked them as educator-astronauts in 2004. The idea to complete McAuliffe’s lesson plans came about last year.

“As former teachers, Ricky and Joe wanted to honor Christa McAuliffe,” said Challenger Center spokeswoman Lisa Vernal.

McAuliffe was teaching history, law and economics at Concord High School in New Hampshire when she was selected as the primary candidate for NASA’s teacher-in-space project in 1985.

Her backup, Barbara Morgan, is on the Challenger Center’s board of directors. Morgan was NASA’s first educator-astronaut, flying on shuttle Endeavour in 2007 and helping to build the space station.

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Anti-smoking Plan May Kill Cigarettes — and Save Big Tobacco

Imagine if cigarettes were no longer addictive and smoking itself became almost obsolete; only a tiny segment of Americans still lit up. That’s the goal of an unprecedented anti-smoking plan being carefully fashioned by U.S. health officials.

But the proposal from the Food and Drug Administration could have another unexpected effect: opening the door for companies to sell a new generation of alternative tobacco products, allowing the industry to survive — even thrive — for generations to come.

The plan puts the FDA at the center of a long-standing debate over so-called “reduced-risk” products, such as e-cigarettes, and whether they should have a role in anti-smoking efforts, which have long focused exclusively on getting smokers to quit.

“This is the single most controversial — and frankly, divisive — issue I’ve seen in my 40 years studying tobacco control policy,” said Kenneth Warner, professor emeritus at University of Michigan’s school of public health.

The FDA plan is two-fold: drastically cut nicotine levels in cigarettes so that they are essentially non-addictive. For those who can’t or won’t quit, allow lower-risk products that deliver nicotine without the deadly effects of traditional cigarettes.

This month the government effort is poised to take off. The FDA is expected to soon begin what will likely be a years-long process to control nicotine in cigarettes. And next week, the agency will hold a public meeting on a closely watched cigarette alternative from Philip Morris International, which, if granted FDA clearance, could launch as early as February.

The product, called iQOS, is a pen-like device that heats Marlboro-branded tobacco but stops short of burning it, an approach that Philip Morris says reduces exposure to tar and other toxic byproducts of burning cigarettes. This is different from e-cigarettes, which don’t use tobacco at all but instead vaporize liquid usually containing nicotine.

For anti-smoking activists, these new products may mean surrendering hopes of a knockout blow to the industry. They say there is no safe tobacco product and the focus should be on getting people to quit. But others are more open to the idea of alternatives to get people away from cigarettes, the deadliest form of tobacco.

Tobacco companies have made claims about “safer” cigarettes since the 1950s, all later proven false. In some cases the introduction of these products, such as filtered and “low tar” cigarettes, propped up cigarette sales and kept millions of Americans smoking. Although the adult smoking rate has fallen to an all-time low of 15 percent, smoking remains the nation’s leading preventable cause of death and illness, responsible for about one in five U.S. deaths.

Anti-smoking groups also point to Big Tobacco’s history of manipulating public opinion and government efforts against smoking: In 2006, a federal judge ruled that Big Tobacco had lied and deceived the American public about the effects of smoking for more than 50 years. The industry defeated a 2010 proposal by the FDA to add graphic warning labels to cigarette packs. And FDA scrutiny of menthol-flavored cigarettes — used disproportionately by young people and minorities — has been bogged down since 2011, due to legal challenges.

“We’re not talking about an industry that is legitimately interested in saving lives here,” said Erika Sward of the American Lung Association.

But some industry observers say this time will be different.

“The environment has changed, the technology has changed, the companies have changed — that is the reality,” said Scott Ballin, a health policy consultant who previously worked for the American Heart Association.

Under a 2009 law, the FDA gained authority to regulate certain parts of the tobacco industry, including nicotine in cigarettes, though it cannot remove the ingredient completely. The same law allows the agency to scientifically review and permit sales of new tobacco products, including e-cigarettes. Little has happened so far. Last year, the agency said it would delay the deadline for manufacturers to submit their vapor-emitting products for review until 2022.

The FDA says it wants to continue to help people quit by supporting a variety of approaches, including new quit-smoking aids and opening opportunities for a variety of companies, including drugmakers, to help attack the problem. As part of this, the FDA sees an important role for alternative products — but in a world where cigarettes contain such a small amount of nicotine that they become unappealing even to lifelong smokers.

“We still have to provide an opportunity for adults who want to get access to satisfying levels of nicotine,” but without the hazards of burning tobacco, said FDA Commissioner Dr. Scott Gottlieb. He estimates the FDA plan could eventually prevent 8 million smoking-related deaths.

​’Smoke-free future’

Philip Morris International and its U.S. partner Altria will try to navigate the first steps of the new regulatory path next week.

At a two-day meeting before the FDA, company scientists will try and convince government experts that iQOS is less-harmful than cigarettes. If successful, iQOS could be advertised by Altria to U.S. consumers as a “reduced-risk” tobacco product, the first ever sanctioned by the FDA.

Because iQOS works with real tobacco, the company believes it will be more effective than e-cigarettes in getting smokers to switch.

Philip Morris already sells the product in about 30 countries, including Canada, Japan and the United Kingdom.

iQOS is part of an elaborate corporate makeover for Philip Morris, which last year rebranded its website with the slogan: “Designing a smoke-free future.” The cigarette giant says it has invested over $3 billion in iQOS and eventually plans to stop selling cigarettes worldwide — though it resists setting a deadline.

Philip Morris executives say they are offering millions of smokers a better, less-harmful product.

Matthew Myers of the Campaign for Tobacco-Free Kids still sees danger. He says FDA must strictly limit marketing of products like iQOS to adult smokers who are unable or unwilling to quit. Otherwise they may be used in combination with cigarettes or even picked up by nonsmokers or young people who might see the new devices as harmless enough to try.

“As a growing percentage of the world makes the decision that smoking is too dangerous and too risky, iQOS provides an alternative to quitting that keeps them in the market,” Myers says.

It’s unclear whether existing alternatives to cigarettes help smokers quit, a claim often made by e-cigarette supporters. Research from the Centers for Disease Control and Prevention suggests about 60 percent of adult e-cigarette users also smoke regular cigarettes.

The case for lower nicotine

Experts who study nicotine addiction say the FDA plan is grounded in the latest science.

Several recent studies have shown that when smokers switch to very low-nicotine cigarettes they smoke less and are more likely to try quitting. But they also seek nicotine from other sources, underscoring the need for alternatives. Without new options, smokers would likely seek regular-strength cigarettes on the black market.

Crucial to the FDA proposal is a simple fact: Nicotine is highly addictive, but not deadly. It’s the burning tobacco and other substances inhaled through smoking that cause cancer, heart disease and bronchitis.

“It’s hard to imagine that using nicotine and tobacco in a way that isn’t burned, in a non-combustible form, isn’t going to be much safer,” said Eric Donny, an addiction researcher at the University of Pittsburgh.

A study of 800 smokers by Donny and other researchers showed that when nicotine was limited to less than 1 milligram per gram of tobacco, users smoked fewer cigarettes. The study, funded by the FDA, was pivotal to showing that smokers won’t compensate by smoking more if nicotine intake is reduced enough. That was the case with “light” and “low-tar” cigarettes introduced in the 1960s and 1970s, when some smokers actually began smoking more cigarettes per day.

Still, many in the anti-smoking community say larger, longer studies are needed to predict how low-nicotine cigarettes would work in the real world.

Legal risks

Key to the FDA plan is the assumption that the two actions will happen at the same time: as regulators cut nicotine in conventional cigarettes, manufacturers will provide alternative products.

But that presumes that tobacco companies will willingly part with their flagship product, which remains enormously profitable.

Kenneth Warner, the public policy professor, said he would be “astonished” if industry cooperates on reducing nicotine levels.

“I don’t think they will. I think they will bring out all of their political guns against it and I’m quite certain they will sue to prevent it,” he said.

In that scenario, the FDA plan to make cigarettes less addictive could be stalled in court for years while companies begin launching FDA-sanctioned alternative products. Tobacco critics say that scenario would be the most profitable for industry.

“It’s like Coke, you can have regular Coke, Diet Coke, Coke Zero, we’ll sell you any Coke you like,” said Robin Koval, president of the Truth Initiative, which runs educational anti-tobacco campaigns.

But the FDA’s Gottlieb says the two parts of the plan must go together. “I’m not going to advance this in a piecemeal fashion,” he said.

When pressed about whether the industry will sue FDA over mandatory nicotine reductions, tobacco executives for Altria and other companies instead emphasized the long, complicated nature of the regulatory process.

“I’m not going to speculate about what may happen at the end of a multiyear process,” said Jose Murillo, an Altria vice president. “It will be science and evidence-based and we will be engaged at every step of the way.”

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North Korea Cancels Visit to South by Arts Delegation

North Korea on Friday abruptly canceled plans to send a delegation led by the head of a hugely popular girl band to South Korea over the weekend to check preparations for a trip by a North Korean art troupe she also leads during next month’s Pyeongchang Winter Olympics.

South Korea’s Unification Ministry said North Korea didn’t explain why it was “suspending” the two-day visit by the seven-member advance team that it proposed just hours earlier through a cross-border communication channel.

It wasn’t immediately clear whether the visit, which was to begin on Saturday, was permanently canceled or postponed. The ministry said it will try to gather further information from the North regarding the decision.

The rival Koreas earlier this week agreed that the 140-member Samjiyon art troupe, which will include singers, dancers and orchestra members, will perform twice in South Korea during the games in a sign of warming ties between the countries. It will be part of a North Korean Olympic delegation that will also include athletes, officials, state media reporters, a cheering group and a taekwondo demonstration team.

South Korea has also proposed that it send a 12-member delegation to North Korea on Monday to inspect preparations for a joint cultural event at the North’s scenic Diamond Mountain and a training session between non-Olympic skiers at the North’s Masik ski resort ahead of the Olympics in the South, the ministry said.

The little-known Samjiyon art troupe is led by Hyun Song Wol, who also heads the popular female Moranbong Band hand-picked by North Korean leader Kim Jong Un.

Hyon has been the focus of intense South Korean media interest since she attended inter-Korean talks at the border on Monday that reached agreement on the troupe’s visit. Hyon’s gestures during the talks as well as her makeup, looks, navy blue suit and green shoulder bag received widespread coverage.

The reconciliation mood between the Koreas began after North Korean leader Kim Jong Un said in a New Year’s speech that he was willing to send a delegation to the Olympics. While South Korea hopes to use the games to improve relations with its rival after a year of animosity involving North Korea’s rapidly expanding nuclear weapons program, some experts view Kim’s overture as an attempt to weaken U.S.-led international sanctions against the North and buy time to further advance his nuclear weapons program.

Hyon is also an alternate member of the ruling Workers’ Party’s Central Committee. Her visit would have made her the highest-profile North Korean to visit South Korea since its International Olympic Committee representative, Chang Ung, came last July.

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Time After Time: Luxury Watchmaker to Sell Pre-owned Pieces

Swiss luxury watchmaker Audemars Piguet said it would launch a second-hand business this year, becoming the first big brand to announce plans to tap into a fast-growing market for pre-owned premium watches.

The company told Reuters it would launch the business at its outlets in Switzerland this year. If this proved successful, it would roll out the operation in the United States and Japan.

“Second-hand is the next big thing in the watch industry,” Chief Executive Francois-Henry Bennahmias told Reuters in an interview at the SIHH watch fair in Geneva this week.

Going to the ‘dark side’

Luxury watchmakers have hitherto eschewed the second-hand trade, fearing diluting the exclusivity of their brands and cannibalizing their sales. They have instead ceded the ground to third-party dealers.

But some are now looking to change tack, driven by an industry-wide sales slowdown combined with a second-hand market that is expanding rapidly, fuelled by online platforms like Chrono24 and The RealReal.

“At the moment, in watches, we leave it to what I call the ‘dark side’ to deal with demand for pre-owned pieces,” added Bennahmias, whose company is known for its octagonal Royal Oak timepieces that sell for 40,000 Swiss francs ($41,680) on average.

“Anybody but the brands (is selling second hand) — it’s an aberration commercially speaking,” he said.

Others may follow

Several smaller brands, including H.Moser & Cie and MB&F, have signaled interest in the second-hand trade.

“It is important to control the sale of second-hand watches to protect the owners and the value of watches already in the market by keeping the grey market in check,” H.Moser & Cie boss Edouard Meylan told Reuters.

MB&F, which plans to launch second-hand sales via its website this year, told Reuters it expected to typically give a 20-30 percent discount on second-hand watches. A spokesman said customers buying from established watch brands could feel confident they were getting genuine products in good working order and with a valid warranty.

Bigger brands Rolex, Patek Philippe, Swatch Group, Richemont and Breitling all declined to comment, when asked whether they planned to enter the second-hand market, while LVMH’s watch division was not immediately available.

Starting small

Audemars Piguet said it would initially allow customers to trade in old watches as part-exchange for new ones, and then sell the second-hand watches. It has not yet decided whether to buy second-hand watches for cash.

Experts say the second-hand luxury watches business, mostly done via online platforms or specialized retailers, is growing rapidly as a new generation of customers that values variety more than permanent ownership enters the luxury world.

In an example of the discounts offered online, a diamond-studded Audemars Piguet Royal Oak “with moderate scratches” sells for $9,450 on The RealReal, about a third of the estimated retail price.

Kepler Cheuvreux analyst Jon Cox said he estimated the size of the second-hand market at $5 billion a year in revenue, including watches sold at auction, and that it had outperformed the market for new pieces in the last couple of years.

That is still dwarfed by a new luxury watch sector worth 37 billion euros ($45.3 billion), according to consultancy Bain & Cie. However Swiss watch exports fell 3.3 percent in 2015 and 9.9 percent in 2016 before posting a modest 2.8 percent rise in the first 11 months of 2017.

US top market for pre-owned

The United States, where sales of new watches have been falling for years, is the No. 1 market for pre-owned watches, followed by Britain and Japan, said U.S. retailer Danny Govberg, who sells new watches for Rolex and other brands, but also an increasing number of second-hand timepieces.

His company said its second-hand sales had grown by 37-40 percent year-on-year over the past five years. In an example of prices, it said it listed a second-hand Audemars Piguet Royal Oak for $24,950 compared with a $32,000 retail price.

Together with a partner in Hong Kong and a Singapore-based investor, Govberg recently launched global e-commerce platform WatchBox for buying and selling pre-owned luxury watches.

“People sell us watches by the bucket,” he said.

He said many people sold watches to buy a new one so the pre-owned market was actually driving new sales, like in the car market. 

“The brands are still trying to figure it out, they don’t have the solution yet,” he said.

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Foreign Investors Will Take Heart in Vietnam’s Anti-Graft Crackdown

Foreign investors in Vietnam will welcome a fairer, more predictable set of business practices as the government pursues the heads of local firms over corruption, analysts believe.

Some foreign companies might review their own books to ensure clean accounting, as prosecutors investigate executives in Vietnamese firms over suspected graft. Most will laud the crackdown as steps toward transparency, fairness in business and better-run local partner companies, economists predict.

“The corruption cleanup, I think so far, seems to be well received,” said Song Seng Wun, an economist with the private banking unit of CIMB in Singapore. “There is at least on the surface an effort to clean up and be more transparent in the way of doing business as a way to ensure firmer ground.”

Increased confidence among foreign factory investors, who already like Vietnam for its cheap land and labor, would help buoy the Southeast Asian country’s overall economy.

Foreign investment anchors Vietnam’s $202 billion GDP, which the Asian Development Banks expects will expand by 6.5 percent this year.

​Corruption crackdown widens

High-level graft trials swept Vietnam in much of 2017 as citizens complained vociferously about a range of violations, from bribery during traffic stops to illegal land-use deals.

In September, a court in Hanoi handed a death sentence to the former chairman of state-owned gas and oil firm PetroVietnam and sentenced an official from Vietnam-based OceanBank to life imprisonment for “roles in a multimillion-dollar graft case that has riveted the nation,” according to the local media outlet VnExpress International.

Nguyen Xuan Son, who had served as chairman of the board, received the death penalty for misappropriating $13.6 million from the bank, the news outlet said.

This month, former ruling Communist Party Politburo member Dinh La Thang went on trial along with 21 other officials from PetroVietnam and its affiliates. He is accused of causing losses of about $35 million.

Trinh Xuan Thanh, former head of PetroVietnam Construction, faces charges in this case over violating economic management regulations and misappropriating property. He generated international attention in August when the German government accused agents from Hanoi of abducting him in Berlin as he was seeking asylum.

Observers say this trial is part of Communist Party General Secretary Nguyen Phu Trong’s broader campaign against corruption.

The nonprofit advocacy group Transparency International ranked Vietnam 113 of 176 countries and regions evaluated in 2016 for perceptions of corruption. New York-based business compliance consultancy Gan Integrity cites bribery, political interference and “facilitation payments” across industries in Vietnam.

The same year the government told its legislature that numerous officials had been “neglecting their duties and failing to uphold moral standards and political virtues,” VnExpress reported.

​Local-foreign schism

Foreign-owned firms may review in-house accounting or money-handling procedures now to make sure they’re following rules in case a disgruntled employee contacts authorities, business experts say.

Western firms generally follow strict British anti-corruption laws when in Vietnam, though investors from elsewhere in Asia may use different standards, said Ralf Matthaes, managing director of Infocus Mekong Research, a market research company in Ho Chi Minh City.

Ford Motor Co. and Intel are among the best-known foreign investors. But most capital comes from South Korea, Singapore, Japan and Taiwan. Foreign-operated factories usually make goods, from garments to smartphones, for export.

“There are variances between different countries,” said Dustin Daugherty, senior associate in business intelligence with the consultancy Dezan Shira & Associates in Ho Chi Minh City.

Overall, he said, “they are much more compliance-oriented by far. They’re much more concerned about following the rules. There are fewer corners cut.”

In 2017, registered foreign direct investment in Vietnam reached $29.68 billion as of Dec. 20, an increase of 44 percent from the same period of 2016, according to Ministry of Planning and Investment data.

Foreign and local companies often benefit from each other now rather than competing. Local suppliers provide raw material to foreign-owned factories, for example, or offer back-end support. The state gas firm and OceanBank faced no direct competition from foreign investors.

But a clean company could lose out on land deals, subsidies or government procurement if competing with a corrupt one willing to make payoffs.

Eventually state firms may take on foreign ones overseas, said Carl Thayer, emeritus professor with the University of New South Wales in Australia. That shift would raise the urgency for fair play in business.

Vietnamese officials, he said, are “trying to once again a renewed effort to improve the performance of state-owned enterprise, equitize and privatize them, make them more efficient so they can deal with foreign competition and go abroad and perform.”

Corruption “doesn’t seem to affect the flow of foreign investment but it hurts Vietnam,” said Thayer, who specializes in Southeast Asian affairs.

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Highlights From Volvo Ocean Race as Teams Approach Hong Kong

It has been called the longest and toughest professional sporting event on earth. The eight-month Volvo Ocean Race is a 24-hour-a-day open-water marathon pitting sailing teams against one another as well as a mutual competitor: nature. Arash Arabasadi has the story.

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Tracking Shoes Help Keep Kids Safe

The worst nightmare for parents is probably a child wandering off and getting lost. And for parents who want to keep their kids within their reach and still give them a chance to play freely and be adventurous, a New York company is offering a solution. Faiza Elmasry has the story. Faith Lapidus narrates.

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Social Media Companies Accelerate Removals of Online Hate Speech

Social media companies Facebook, Twitter and Google’s YouTube have greatly accelerated their removals of online hate speech, reviewing over two thirds of complaints within 24 hours, new EU figures show.

The European Union has piled pressure on social media firms to increase their efforts to fight the proliferation of extremist content and hate speech on their platforms, even threatening them with legislation.

Microsoft, Twitter, Facebook and YouTube signed a code of conduct with the EU in May 2016 to review most complaints within a 24-hour timeframe.

The companies managed to meet that target in 81 percent of cases, EU figures seen by Reuters show, compared with 51 percent in May 2017 when the European Commission last monitored their compliance with the code of conduct.

EU Justice Commissioner Vera Jourova has said previously she does not want to see a removal rate of 100 percent as that could impinge on free speech. She has also said she is not in favor of legislating as Germany has done.

 A law providing for hefty fines for social media companies if they do not remove hate speech quickly enough went into force in Germany this year.

“I do not hide that I am not in favor of hard regulation because the freedom of speech for me is almost absolute,” Jourova told reporters in December.

“In case of doubt it should remain online because freedom of expression is [in a] privileged position.”

Of the hate speech flagged to the companies, almost half of it was found on Facebook, the figures show, while 24 percent was on YouTube and 26 percent on Twitter.

The most common ground for hatred identified by the Commission was ethnic origins, followed by anti-Muslim hatred and xenophobia, including expressions of hatred against migrants and refugees.

Following pressure from several European governments, social media companies stepped up their efforts to tackle extremist content online, including through the use of artificial intelligence.

The Commission will likely issue a recommendation, a soft law instrument, on how companies should take down extremist content related to militant groups at the end of February, an official said, as it is less nuanced than hate speech and needs to be taken offline more quickly.

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