Day: May 28, 2018

In an effort to stem the outcry over the arrest of two black men at one of its stores, Starbucks will close 8,000 U.S. stores Tuesday afternoon for anti-bias training for its employees. 

On April 12, two black men went to a Philadelphia store and did not buy anything; instead, they told the store manager they were waiting for a friend to join them. They were asked to leave and an employee called police, which led to their arrest, prompting protests and accusations of racism. 

A video of the incident that was posted on social media became a major embarrassment for the coffee chain.

Soon after, Starbucks announced a policy change, welcoming anyone to sit in its cafes or use its restrooms, even if they don’t buy anything.

Previously, it was left to individual store managers to decide whether people could access Starbucks premises without making a purchase. 

“We are committed to creating a culture of warmth and belonging where everyone is welcome,” Starbucks said in a statement. 

The company has asked employees to follow established procedure when dealing with “disruptive behaviors,” and are still asked to call 911 in case of “immediate threat or danger” to customers or employees. 

The men who were arrested in April, settled with Starbucks earlier this month for an undisclosed sum and an offer of a free college education for each of them. 

They also reached a deal with the city of Philadelphia for a symbolic $1 each and a promise from city officials to set up a $200,000 program for young entrepreneurs.

 
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Starbucks will close more than 8,000 stores nationwide Tuesday to conduct anti-bias training, the next of many steps the company is taking in an effort to restore its tarnished diversity-friendly image.

The coffee chain’s leaders reached out to bias training experts after the arrest of two black men at a Philadelphia Starbucks last month.

The plan has brought attention to the little-known world of “unconscious bias training” used by corporations, police departments and other organizations. It’s designed to get people to open up about implicit biases and stereotypes in encountering people of color, gender or other identities.

A video previewing the training says it will include recorded remarks from Starbucks executives as well as rapper and activist Common. From there, the company says, employees will “move into a real and honest exploration of bias.”

 
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China told the World Trade Organization’s dispute settlement body on Monday that U.S. accusations that Beijing forced companies to hand over technology as a cost of doing business in China were groundless.

U.S. President Donald Trump has accused China of stealing American ideas and announced a plan for a $50 billion tariff penalty against Chinese goods.

Both sides launched legal complaints at the WTO over the issue earlier this year.

“There is no forced technology transfer in China,” Chinese Ambassador Zhang Xiangchen told the meeting, according to a copy of his remarks provided to Reuters.

“According to the U.S.’s view, China forces the U.S. companies to transfer technologies by imposing joint venture requirements, foreign equity limitations and administrative licensing procedures,” Zhang said.

“But the fact is, nothing in these regulatory measures requires technology transfer from foreign companies.”

Zhang said the U.S. argument involved a “presumption of guilt.” The U.S. Trade Representative believed U.S. firms in China faced an obligation to hand over technology, while failing to produce a single piece of evidence.

Some of its claims were “pure speculation,” he said, adding that the USTR saw Chinese M&A activity as a Chinese government conspiracy.

‘Diligence and entrepreneurship’

Technology transfer was a normal commercial activity that benefited the United States most of all, he said, while Chinese innovation was driven by “the diligence and entrepreneurship of the Chinese people, investment in education and research, and efforts to improve the protection of intellectual property.”

Legal experts say Washington needs WTO backing to implement its tariffs as far as they relate to WTO rules, while China has rejected the tariff plan wholesale and resorted to WTO action to stop it.

Under WTO rules, if disputes are not settled amicably after 60 days, the complainant can ask for a panel of experts to adjudicate, escalating the dispute and triggering a legal case that takes years to settle.

The United States, which launched its complaint on March 23, could have used the dispute meeting on Monday to take that step. China could do so at next month’s meeting.

But since the dispute erupted, U.S.-China trade policy has been the subject of high-level bilateral talks. Trump tweeted cryptically that “our trade deal with China is moving along nicely” but that it probably needed a “different structure.”

The United States put China’s technology transfer policies on the agenda of Monday’s meeting, without elaborating. A copy of the U.S. remarks was not immediately available.
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New Zealand will slaughter more than 100,000 cows in an effort to eradicate a bacterial disease.

The government and agricultural leaders announced Monday that it will spend over $600 million over the next decade to rid the country of Mycoplasma bovis, which causes udder infections, pneumonia, arthritis and other illnesses. The bacteria is not a threat to humans, but can cause production delays on farms.

“This is a tough call,” said Prime Minister Jacinda Ardern. “But the alternative is to risk the spread of the disease across our national herd.”

Mycoplasma bovis has been detected on more than three dozen farms since it was first detected in New Zealand last year, leading to the slaughter of about 26,000 cattle. The country is the world’s largest exporter of milk and dairy products.

 
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Myanmar’s anti-corruption commission has in recent weeks sued a senior bureaucrat and begun investigating a disgraced minister, indicating a crackdown on corruption promised by the government is finally happening. Often criticized as weak and unambitious, the commission’s stepped-up efforts suggest the Southeast Asian country is joining a regional trend.

On May 25, the Myanmar President’s Office confirmed the resignation of Planning and Finance Minister Kyaw Win, after the Anti-Corruption Commission revealed he was being investigated for bribery. The commission is also pursuing a criminal case against Food and Drug Administration Director-General Than Htut for allegedly demanding more than $11,000 in bribes from a construction company.

Anti-Corruption Commission chairman Aung Kyi told VOA that, at this stage in the probe against Kyaw Win, “I do not have any obligation to reveal what type of corruption he committed.” The commission has announced they delivered the investigation report to the President’s Office on May 25, but its findings aren’t yet public.

Last week, Myanmar’s upper house of parliament passed amendments to the Anti-Corruption Law that would grant the commission powers to investigate conspicuously wealthy office-holders on their own initiative. Currently, the commission, which was reconstituted in November, must wait for complaints to be submitted to it with “strong evidence.”

Political will

The commission had previously only pursued cases against low-ranking officials, and was noticeably absent in large scandals. One example was the multi-million-dollar misappropriation of development funds by the former chief minister of Magwe Region, who was merely ordered to return a portion of the money last year.

Ko Ye, national coordinator for the Myanmar Alliance for Transparency and Accountability, told VOA the recent moves seemed to signal genuine “political will,” which he considered the most important ingredient in any anti-corruption fight.

Marie Cauchois Pegie, advisor to the United Nations Office on Drugs and Crime — which is helping Myanmar meet its commitments under the U.N. Convention against Corruption it ratified in 2012 — told VOA the amendment was clearly a step forward.

However, the inadequate protection of whistle-blowers remains a critical shortcoming. Complainants risk counter-suits in a court system that many see as beholden to powerful interests.

With the amendment, the commission sought a reduction in maximum prison sentences for complainants providing “false” information from five years to six months. However, the upper house only approved a reduction to three years.

The corruption law mandates that “necessary protection” be provided to those supplying evidence. But, as Pegie notes, “implementation is not really foreseen,” and the country lacks a witness protection program.

Going after tigers

At the start of his tenure as finance minister in 2016, Kyaw Win earned a reputation for dishonesty by listing a Ph.D. on his resume from a made-up university. He has since presided over a slowdown in the economy and growing frustration among businessmen and investors, making him a politically expedient target.

Myanmar’s new president Win Myint, at his inauguration in March, declared fighting corruption a top priority. His first public meeting was with the Anti-Corruption Commission, in which he commanded them to be bolder in the face of interference from powerful figures.

Ahead of the 2020 election, the National League for Democracy government is anxious to deflect widespread criticism over the slowing pace of reform.

Myanmar political analyst Yan Myo Thein told VOA pervasive corruption in everyday life could turn an anti-graft drive into a vote winner. Yet, he said this would require the government to keep “going after tigers, not just flies.”

However, Hunter Marston, analyst at the Brookings Institution in Washington, told VOA it was possibly too late for such a drive to pay electoral dividends by 2020. Given Myanmar’s sluggish court system, this is plausible. He suggested a winning strategy might better focus on rural poverty-alleviation measures.

A regional mix

Elsewhere in Southeast Asia, the region’s mix of one-party states, multi-party democracies and military regimes make it hard to draw clear lines between the aims or approaches of governments conducting anti-graft drives.

In Vietnam, a crackdown since 2016 has seen ex members of the Communist Party Politburo and Central Committee sentenced, and dozens tried in single cases.

Carl Thayer, emeritus professor at the University of New South Wales in Canberra, told VOA this has addressed a genuine spiraling of graft over the previous ten years, mostly linked to giant state-owned enterprises and associated banks.

However, he said a desire by the Communist Party to reassert control of the state has been a key impetus, and he downplayed the role of public opinion. Any recent popular dividend, he said, may have been “cancelled out by a crackdown on free expression and Internet communication.”

Aung Tun, a Myanmar independent researcher on corruption, said this authoritarianism made Vietnam an inappropriate model. He suggested Indonesia, a multi-party democracy with a strongly empowered anti-corruption commission and robust civil society, could point the way ahead.

However, Indonesia’s commission has pursued high-level targets since 2003, while corruption remains endemic. Its example suggests that clean government requires a degree of societal change that could take a generation, or more.

 
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Ivanka Trump’s brand continues to win foreign trademarks in China and the Philippines, adding to questions about conflicts of interest at the White House, The Associated Press has found.

On Sunday, China granted the first daughter’s company final approval for its 13th trademark in the last three months, trademark office records show. Over the same period, the Chinese government has granted Ivanka Trump’s company provisional approval for another eight trademarks, which can be finalized if no objections are raised during a three-month comment period.

Taken together, the trademarks could allow her brand to market a lifetime’s worth of products in China, from baby blankets to coffins, and a host of things in between, including perfume, make-up, bowls, mirrors, furniture, books, coffee, chocolate and honey. Ivanka Trump stepped back from management of her brand and placed its assets in a family-run trust, but she continues to profit from the business.

Noah Bookbinder, the executive director of Citizens for Responsibility and Ethics in Washington, said on Twitter that the recent approvals create “more conflicts of interest and more potential for using the White House for self-enrichment.” His government watchdog group was behind one of several lawsuits against President Donald Trump for violations of the emoluments clause of the constitution, which bars officials from accepting gifts from foreign states unless they are approved by Congress.

As Ivanka Trump and her father have built their global brands, largely through licensing deals, they have pursued trademarks in dozens of countries. Those global trademarks have drawn the attention of ethics lawyers because they are granted by foreign governments and can confer enormous value. Concerns about political influence have been especially sharp in China, where the courts and bureaucracy are designed to reflect the will of the ruling Communist Party.

Chinese officials have emphasized that all trademark applications are handled in accordance with the law.

More approvals are likely to come. Online records from China’s trademark office indicate that Ivanka Trump’s company last applied for trademarks — 17 of them — on Mar. 28, 2017, the day before she took on a formal role at the White House. Those records on Monday showed at least 25 Ivanka Trump trademarks pending review, 36 active marks and eight with provisional approval.

The World Intellectual Property Organization’s global brand database also shows that her company, Ivanka Trump Marks LLC, won three trademarks in the Philippines after her father took office. Two of them cover clothing, including lingerie and baby clothes, were filed on Feb. 8, 2017 and registered in June and November. The third, filed on Mar. 1, 2017, covers clothing and footwear and was registered in July.

Companies register for trademarks for a variety of reasons. They can be a sign of corporate ambition, but in many countries, like China, where trademark squatting is rampant, companies also file defensively, to block copycats from grabbing legal rights to a brand’s name. Trademarks are classified by category and may include items that a company does not intend to market. Some trademark lawyers also advise clients to register trademarks for merchandise that is manufactured in China, even if it’s not sold there.

Ivanka Trump does not have a large retail presence in China, but customs records show that the bulk of her company’s U.S. imports are shipped from China.

The brand’s secretive Chinese supply chains have been the subject of some controversy. A year ago Monday, three men working for China Labor Watch, a New York-based non-profit, were arrested while investigating labor abuses at Ivanka Trump suppliers in China. After thirty days in detention, they were released on bail, but continue to live under police surveillance.

Li Qiang, the group’s founder, said Monday that he hopes bail will be lifted soon and that the case will not go to trial.

Police in Ganzhou, the southeastern Chinese city where the men were detained, could not be reached for comment. The Chinese law firm that handles Ivanka Trump’s intellectual property in China also did not immediately respond to requests for comment.

 
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Vietnam is imitating China in its efforts to grow economically and lags its larger neighbor only by about a decade, experts say.

The two communist countries, though political rivals, have built up their state-controlled economies on job creation through factory work for export. 

China opened that effort to foreign investment in 1978 and Vietnam got started 10 years later. Now Vietnam is grappling with corruption, traffic gridlock and the sinking performance of state-run companies as its middle class grows, all hallmarks of China’s development.

In the latest sign of similarity, Vietnam’s National Assembly is examining a bill to let the country run three special economic zones. It has a chance of passing next month. The zones would offer foreign factory investors tariff exemptions and long land leases, Vietnamese news website VnExpress International says. China created its first four zones in 1979 to attract foreign investment. It now has 32.

“I don’t know whether it’s deliberate or otherwise, but it seems there is that hint of taking that page from the CPC playbook — Chinese Communist Party,” said Song Seng Wun, economist in the private banking unit of CIMB.

“Vietnam has a Communist Party, so I suppose there is that kind of ‘if China is doing it, we can also perhaps adapt it to Vietnamese conditions.’”

Controlled economy and factory work

Governments in both countries turned to factory work to employ large, uneducated populations, said Ralf Matthaes, founder of the Infocus Mekong Research consultancy in Ho Chi Minh City.

Reliance on factory work, especially for export, drove Chinese economic growth of about 10 percent per year over the decade to 2010. Vietnam’s economy has expanded at more than 6 percent annually since 2015.

Vietnam, like China a decade ago, depends largely on production of low-tech exports such as garments, furniture and car parts. China is moving up the value chain into high tech, and leaning more on services.

Companies from Japan, Singapore, South Korea and the West often offshore factory work to China as well as Vietnam to save on labor costs. China has been dubbed the “world’s factory” and Vietnam a “China+1” destination for investors looking to expand production to a cheaper country.

“How do you employ a bunch of unskilled workers?” Matthaes said. “Obviously mass manufacturing is one way. I think even though Vietnam holds Singapore in high regards in terms of ‘Singapore’s our greatest model,’ it’s China.”

Five years ago Vietnam’s ambassador to Singapore called relations with the fellow Southeast Asian country a model as trade links were growing then. Vietnam, though dependent on China for trade, regards China as a political rival. They fought a border war in the 1970s and now dispute sovereignty over parts of the South China Sea.

Managing outcomes of fast growth

Outcomes of factory-driven economic growth that China saw a decade ago are showing now in Vietnam, analysts note.

The number of Vietnamese who are middle class and higher will double between 2014 and 2020 to about one-third of the country’s population of 93 million, the Boston Consulting Group says. China says just 3.1 of its 1.38 billion people lived in poverty last year.

In other signs of following China, Vietnamese workers are known for job hopping within a few months for higher pay and showing it off with expensive smartphones, new cars and meals at expensive restaurants. Traffic is starting to thicken in the financial center Ho Chi Minh City as it has in China’s major cities such as Beijing and Shanghai since 2000.

Vietnam’s crackdown on corruption that went public in 2017 also followed the Chinese anti-graft campaign that experts say became more rigorous in 2012.

It’s Vietnam’s turn now to make its state-owned firms perform well or be sold off, analysts say. State-owned enterprises, another feature of communist countries, dominated the Vietnamese stock exchange from its inception in 2000 through 2005 as those assets were sold, said Kevin Snowball, chief executive officer with PXP Vietnam Asset Management in Ho Chi Minh City.

Thousands of Vietnam’s state firms have been all or partly privatized. China began reforming its state firms about 20 years ago and is still pressing them to change following a decline in profits in 2015 due to issues with corporate governance and labor productivity.

“Vietnam established the stock market in order to sell state assets basically, because when it started, essentially everything that was listed was state owned up until the end of 2005,” Snowball said. 

“The government needs to spend probably 25 billion dollars a year on infrastructure development in order to keep encouraging (foreign direct investment) to come in, and sale of state assets is partially funding that,” he said.
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