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Tag: China

  • Mike Daisey, Steve Jobs, and A Controversial Monologue

    Mike Daisey is a respected writer, actor, and performer of the stage who has toured the world with his one-man-shows. So why is he embroiled in such a controversy regarding Apple and it’s founder, Steve Jobs?

    For statements he makes in his latest monologue, entitled “The Agony And Ecstasy Of Steve Jobs”, which were broadcast on a public radio program called “This American Life”. The statements include Apple’s relationship with Chinese factory workers and their conditions, which Ira Glass, the host of the program, says were proven to be false after the show’s fact-checkers were unable to verify his account of meeting those workers.

    The monologue has been at the Public Theater since its debut last year, but Oskar Eustis, the theater’s artistic director, has now added a disclaimer before the opening of the show and has edited out the parts he “doesn’t feel he stand behind”.

    Daisey defended his work on his blog, stating, What I do is not journalism. The tools of the theater are not the same as the tools of journalism. For this reason, I regret that I allowed “This American Life” to air an excerpt from my monologue. “This American Life” is essentially a journalistic ­- not a theatrical ­- enterprise, and as such it operates under a different set of rules and expectations.”

    In a post made today, Daisey vented about the whole experience, calling it “galling” that the public is so “eager to dance on his grave… so they can return to ignoring everything about the circumstances under which their devices are made.”

    He also points out, “There is nothing in this controversy that contests the facts in my work about the nature of Chinese manufacturing. Nothing. I think we all know if there was, Ira would have brought it up.”

    Charles Isherwood of the New York Times reviewed “The Agony And Ecstasy Of Steve Jobs”, calling it an “eye-opening exploration of the moral choices we unknowingly or unthinkingly make when we purchase nifty little gadgets like the iPhone and the iPad and the PowerBook.” Despite his appreciation for the show, however, Isherwood took a different view after the controversy broke.

    “The problem is Mr. Daisey’s particular brand of theater is experienced by the audience as direct and honest testimony to events that he witnessed,” he wrote in the Times. “But in his stage shows Mr. Daisey is the sole voice we hear, and while his monologues undoubtedly contain much writing that is obviously opinion, when it comes to describing his experience, we take him at his word.”

  • PayPal Bringing Its Services To China And India

    PayPal Bringing Its Services To China And India

    PayPal is one of the largest names in the online payment industry. It makes it super easy to make online transactions across national borders. Making the transactions with other people within your borders is a bit trickier if you happen to live in certain countries. PayPal is hoping to change that for China and India.

    PayPal announced today their intentions to bring domestic transactions through their service to the people of China and India. Of course, the biggest issue in terms of entry lies with China and PayPal is currently “applying for a domestic payment license” within the country according to PC World.

    China would be a fantastic market for PayPal to enter due to its estimated 193 million e-commerce users. Besides government regulations, PayPal has another obstacle in their way – AliPay. AliPay is the already established e-payment group under the Alibaba Group. AliPay owns the largest share of the online payment market at 46.9 percent.

    This leaves PayPal with quite the challenge when and if they enter the Chinese marketplace. Analysts speaking to PC World seem to agree with one saying that the “competition will be fierce.” In what could be an even larger threat, however, is obtaining the business license.

    Chinese law requires that any online payment system be Chinese owned. Alibaba Group is an internationally owned company so it was required to spin off AliPay into its own Chinese-centric business. What if PayPal fell under the same regulations? Would they create a new company just for China?

    It’s important to note that PayPal operates within Hong Kong. While it doesn’t automatically give PayPal the go ahead for mainland China, it probably is a bargaining tool. The amount of transactions that flow into Hong Kong everyday must entice the Chinese government into wanting PayPal for the mainland.

    Fortunately, PayPal would face no such hurdles in India. While the online payment economy is much smaller in India, it can only go up from here. Research had indicated that 4.5 percent of all retail transactions will be performed online in India by 2016. This leaves PayPal the perfect spot to swoop in and get in on India during its growth phase.

    All of this is just the next step in PayPal’s move to expand beyond their initial offering. They recently announced PayPal Here which is a mobile payment system for small businesses. Just think if PayPal was able to get PayPal Here into China, it would explode.

    The company has also moved into big box retail by offering PayPal Checkout to customers of The Home Depot. The service allows customers to buy products with only their phone number and a PIN.

    It will be a while before PayPal hears back on whether or not they will be allowed to operate in China. We’ll keep you updated on any developments.

  • This American Life Source Lied About Apple, Foxconn Details

    Popular public radio show This American Life is retracting an episode it aired back in January which condemned major electronics companies Apple and Foxconn. The retraction follows a revelation that the episode’s chief source, Mike Daisey, invented and embellished facts cited on the program.

    This American Life’s creator and host announced the retraction in a blog post today, citing “significant fabrications” discovered in the story. The program’s host notes that the story was not commissioned by This American Life, but rather was an excerpt of Daisey’s (a performance artist) one-man show “The Agony and the Ecstasy of Steve Jobs.” In the show, Daisey tells how he visited a factory owned by Foxconn that manufactures iPhones and iPads in Shenzhen China. His show highlights a number of labor and human rights violations he encountered in visits to Apple factories.

    Glass noted that Daisey lied to him and producer Brian Reed during pre-broadcast fact-checking, but he was quick to accept responsibility for airing the show. “That doesn’t excuse the fact that we never should’ve put this on the air. In the end, this was our mistake,” he wrote. As a part of the retraction, this week’s episode of his show will include an entire hour dedicated to detailing the errors of “Mr. Daisey Goes to the Apple Factory.”

    “We’re horrified to have let something like this onto public radio,” Glass continued, “Many dedicated reporters and editors – our friends and colleagues – have worked for years to build the reputation for accuracy and integrity that the journalism on public radio enjoys.”

    “[W]e should’ve killed the story,” remarked the host, in reference to a fact-checking incident in which Daisey claimed he was no longer able to reach his Chinese translator, “But other things Daisey told us about Apple’s operations in China checked out, and we saw no reason to doubt him. We didn’t think that he was lying to us and to audiences about the details of his story. That was a mistake.”

    The response to the original episode, “Mr. Daisey and the Apple Factory,” was significant. It quickly became the single most popular podcast in This American Life’s history, with 888,000 downloads (more than 130,000 more than the average) and 206,000 streams to date. After hearing the broadcast, listener Mark Shields started a petition calling for better working conditions for Apple’s Chinese workers, and soon delivered almost a quarter-million signatures to Apple. As a consequence of the scrutiny, Apple announced its plan to allow for the first time a third-party auditor to review working conditions at the company’s manufacturing plants. It also released a list of its suppliers.

    Daisey was found out in part by American Public Media’s Marketplace China Correspondent Rob Schmitz, who noticed inconsistencies in his own journalistic experiences and Daisey’s claims. Schmitz developed extensive first-hand knowledge of the issues surrounding Apple and Foxconn’s manufacturing practices while reporting for Marketplace. A report by Schmitz will be included in this weekend’s This American Life. In it, Schmitz confronts Daisey and Daisey admits to fabricating events and characters. He also expresses regret:

    “I’m not going to say that I didn’t take a few shortcuts in my passion to be heard,” Daisey tells Schmitz and Glass. “My mistake, the mistake I truly regret, is that I had it on your show as journalism, and it’s not journalism. It’s theater.”

    Glass announced that both and audio download and a transcript of the program will be available online Friday night. The show typically airs on Sunday.

    Image Source: Gotta Be Mobile

  • Washington Post Masthead On A Chinese Government Publication

    Freedom of speech — and thus, consequently, freedom to advertise — are fundamental principles of a free democracy and a thriving capitalist democracy, right? That’s what we’re told in this country from a young age. Well it turns out those freedoms are also employed by the Chinese Communist Party. In America. Namely, in The Washington Post.

    This is the source of an ethical controversy that has sprung up recently in the arena of journalism. Each month, the Post runs a paid supplement called China Watch, along with a regularly-updated website of the same name. The “paid” part gets done by the Chinese government. In return, China gets to publish articles produced by China Daily, the house organ of the Chinese government, in the Post, and using its masthead. Articles in China Watch portray China and its government in the way you might expect–that is, positively, or else with a particular diplomatic glibness. Ad copy, some call it. Others call it propaganda.

    It’s a hard boundary to find, that line between advertising and propaganda. People who don’t like being sold to are quick to label all advertising as propaganda of a kind, while free market advocates might suggest that if you pay for it, and if you make it clear that you paid for it, then even a government can simply advertise. The Washington Post says that it makes no attempt to conceal the paid nature of China Watch. Both print editions of the publication and its corresponding website bear a small disclaimer box in their top right corners. But critics of the Post’s partnership with China Daily argue that the disclaimer is not nearly as prominent on the page as the Post’s masthead at the top of the insert. While readers have technically been informed that China Watch has been paid for, critics argue that the prominence of the Post’s masthead makes a bigger statement, confusing readers who might think the Post at least officially endorses China Watch content. The web-edition of the pro-China publication is hosted under the Washington Post domain name. Moreover, the Post neglects to disclose who pays for the ads.

    (image)

    Of course, there’s no law generally requiring companies to disclose details about their advertising partners to the general public. However, things are a bit different when you’re dealing with a representative from a foreign government. The Post’s dealings with China Daily could run afoul of the Foreign Agents Registration Act, which requires that foreign agents and their activities be properly identified to the American public. Such disclosure involves more than a box in the upper-right-hand corner.

    Nor is this the only instance of dealings where The Post has been accused of serving as a mouthpiece for the Chinese government. In an editorial last month, Patrick Pexton, The Post’s own Ombudsman, lambasted the newsroom for at the very best, lazy journalism, and at the worst, kowtowing to the Chinese PR machine. Particularly at issue in the editiorial was the February 13 publication in The Post of an “interview” with Chinese Vice President Xi Jinping. It was later revealed that the “interview” was hardly an interview at all — Post reporters submitted written questions to Jinping, and in return they received a response to questions that had been modified, deleted, and added. Pexton disagreed with the newsroom’s decision to print the reponse:

      So, The Post submits written questions — already a far cry from a live face-to-face unscripted interview with journalists — and the Chinese say, thanks, but we don’t like your questions, so we’ll provide our own questions and answers. Take it or leave it.

      The Post took it. I think it should have left it.

    Of course, Pexton pointed out, this is a complicated issue. While both the printing of the interview propaganda and the lack of transparency regarding China Watch suggest the Post is soft, even misleading, in its coverage of China, The Post also does its fair share of reporting that embarrasses the Chinese government and others. It’s a difficult world to navigate, especially when dealing with China, which often withholds press visas, or grows mum around reporters asking too many uncomfortable questions.

    It’s not just The Post that faces this difficultly. China is sitting on a billion citizens, nuclear weapons, the world’s fastest-growing economy, and $1.2 trillion of U.S. debt. So it has a lot of weight to throw around with governments and major corporations, let alone media outlets. But is it right for The Post to lend its masthead and domain name to China Watch? Pexton observes:

      That’s the thing about China, whether you are The Washington Post, the U.S. government or Apple computers. There is interdependence in the relationship, and constant negotiation and compromise. The Chinese know it, and they take advantage of it.

    Right might not always come into play these days.

    Hat Tip: The Washington Free Beacon

  • China Making Games for Facebook

    China Making Games for Facebook

    Even though Facebook has been banned in China since 2009, Chinese developers are still producing software for the social networking giant. And with this, Facebook has been able to portray an idea of potential growth in China for potential investors.

    shanda games

    David Lim, a Facebook mobile developer relations division engineer, recently told Bloomberg that China makes up roughly 20% of its partner network in Asia, with Chinese developers targeting overseas users. Lim adds, “we now have Chinese-language help pages for developers, and we are working on giving them better support. Developers in mainland China are important to us.”

    China had 513 million internet users at the end of 2011, more than the population of the U.S. and Japan combined, but sites like Facebook, Twitter and Google + are banned in that country. Internet pornography, gambling and anti-communist sentiment are also not permitted, and China expects locals governments to monitor and censor the web use regarding correlating locales. As Facebook filed its initial public offering, the comment on China was, “users are generally restricted from accessing Facebook from China. We do not know if we will be able to find an approach to managing content and information that will be acceptable to us and to the Chinese government.”

    Still, Shanda Games Ltd., the third largest online games company in China, is developing titles for Facebook users, according to Shanda CEO Alan Tan.

    So, in China, users can access a fake Facebook called renren, all the while developing apps for the real Facebook, and then “weib” about it on the fake Twitter.

  • China To Deploy Moon Rover In 2013

    China is set to launch their third lunar probe next year. The probe will be called the chang’e-3 and it will be the first probe to have legs so that it can land safely on the moon’s irregular surface. A secure landing will be essential because the country has designed a moon rover which will be carried to the moon and set in motion by the probe.

    Ye Peijian, chief designer of the Chang’e missions comments on the new probe:

    “The probe will take more scientific equipment than its predecessors mainly to detect, collect and analyze samples on the moon,”

    Experts have mapped-out about half a dozen prime locations for the landing of the probe. Right now the moon’s Bay of Rainbows, formally called Sinus Iridum, is the primary target for set-down, but that could change as conditions change.

    The mission will be distinctively different than past missions because of the lunar rover. The rover will patrol the moon’s surface for ninety days collecting samples and mapping the topography, which will be one of the most difficult tasks.

    Ye comments:

    “It will be the most difficult part of the mission as the rover must avoid dropping into big holes on the moon and climb over some small pits and rocks,”

    It is unknown what the rover will be called or what it looks like. Apparently the Chinese public will name the rover sometime this year. How this will be done is also not mentioned.

    What is known is that the rover features a solar plate which will unfold during sunlight hours to absorb energy, but will retract and protect the rover’s vital power supply during the freezing darkness hours. All of its functions will be controlled by scientists on Earth.

    More details about the mission and the name of the rover will be revealed as 2012 unfolds. We will keep readers up to date on Chang’e-3 as more information becomes available.

  • Chinese Man Buys A Fake iPhone, Stabs A Counterfeiter To Death

    What’s the angriest you’ve ever been after a purchase? What about that time your friend sold you that used video game that “worked like new” but when you opened it you found it covered with scratches and unplayable? How about that signed baseball card with the signature that rubbed off the second you got it home?

    Most everyone has been duped before, but did it make you feel homicidal?

    In Zhengzhou city, China(the location of one of Foxconn’s biggest Apple factories), one jilted market shopper got a little stabby when he discovered that the iPhone he had just purchased was not really an iPhone, but a counterfeit device constructed only well enough assuage any suspicions at the moment of sale.

    The suspect, identified by ChinaHush as a Mr. Feng, was arrested last week after assaulting multiple people in a market plaza inside Zhengzhou. According to the reports, Feng was there looking for the particular guy who sold him his fake iPhone, but settled for some individuals that looked to be associated with the counterfeit trade.

    After getting home with his fake iPhone a realizing he’d been had, Feng apparently went back to the market plaza only to discover that the seller was long gone. Feng then continued to visit the plaza every day looking for the culprit – one day bringing a kitchen knife along.

    On that day, Feng happened upon another transaction in the same area. He saw what looked like a similar transaction to the one that fooled him, with the fake iPhone appearing to resemble the one sold to him. “Very upset after being cheated,” Feng attacked the sellers with the knife – killing one.

    The reports indicate that the victim died of blood loss after having a major artery in his leg severed.

    Although it’s unclear why Feng expected anything other than a fake iPhone while making purchases on the street, one thing is clear: When you truly want an iPhone – there is no substitute.

  • Cloud Computing To Create 14 Million New Jobs By 2015

    Cloud Computing To Create 14 Million New Jobs By 2015

    According to a new study by IDC, the growth of cloud computing is on track to create nearly 14 million new jobs globally by 2015. IDC’s research, which was commissioned by Microsoft, predicts revenues from cloud innovation could reach $1.1 trillion per year by 2015, which, combined with cloud efficiencies, will drive significant organizational reinvestment and job growth.

    “The cloud is going to have a huge impact on job creation,” says Susan Hauser, Microsoft corporate vice president of the Worldwide Enterprise and Partner Group. “It’s a transformative technology that will drive down costs, spur innovation, and open up new jobs and skillsets across the globe.”

    One way in which the cloud is helping companies to be more innovative is by freeing up IT managers to work on more mission-critical projects.

    “We deployed Microsoft Office 365 and Windows Intune for one of our clients, and the comment we heard from the chief operations officer is that he can actually schedule a meeting with the IT director to talk about strategic applications,” said Carol Reid, sales director for Agile IT, a Microsoft Tier 3 Cloud Champion Member headquartered in San Diego, Calif. “Whereas before, the IT director was chasing fires and tending to pretty basic plumbing, he now has the bandwidth to pursue truly strategic projects that move the business forward.”

    Microsoft has also staked their claim in the cloud with Microsoft Web Apps, their suite of Office software that is accessed via cloud computing, and SkyDrive, the company’s cloud storage service. The services are accessible via computer or mobile device.

    “For most organizations, cloud computing should be a no-brainer, given its ability to increase IT innovation and flexibility, lower capital costs, and help generate revenues that are multiples of spending,” said John F. Gantz, chief research officer and senior vice president at IDC. “A common misperception is cloud computing is a job eliminator, but in truth it will be a job creator — a major one. And job growth will occur across continents and throughout organizations of all sizes because emerging markets, small cities and small businesses have the same access to cloud benefits as large enterprises or developed nations.”

    The report also indicates specific industries will generate job growth at different rates, and that public cloud investments will drive faster job growth than private cloud investments. Microsoft also estimates that cloud–related jobs will accrue evenly to businesses with 500 or fewer employees and those with more than 500 employees.

    The booming economies of China and India are expected to account for nearly half of all new cloud-related jobs. China, in fact, is estimated to create nearly five million jobs thanks to investments in cloud computing. To illustrate more on how cloud computing will develop across the world, Microsoft put together a small infographic that details the global impact of cloud services on different countries’ economies.

    Click here to view a larger version.

    Ultimately, the cloud will be an important force in helping to restore worldwide economic health, Hauser said. “The cloud is the No. 1 topic among CIOs from around the world,” she added. “They want to know how they can use it to fuel growth. And they want to be sure they have the right people and skills in place to make it happen.”

  • Chinese Overcome Firewall, Use Facebook

    Chinese Overcome Firewall, Use Facebook

    For unknown reasons, Chinese web users were able to get past that country’s firewall, and briefly access typically blocked social networking sites like Facebook, Youtube and Twitter. China typically blocks any website its government might deem as a threat to social stability, and puts similar products in place which censor whatever they’d like, including renren, the Chinese Facebook.

    “I can suddenly access YouTube! No need to breach the firewall!” Weibo member (Weibo is akin to Twitter) Arvin Xie posted Tuesday. “I used Facebook for the first time yesterday,” Zhang Wenjin told Reuters. The 23-year-old student at Shanghai’s prestigious Jiao Tong University also signed up for an account, adding, “I went on and took a look. I’m sure there were suddenly a lot of people who signed up on Facebook yesterday.”

    The mysterious firewall breach lasted Monday and Tuesday, with internet users being able to access the sites on PC’s and mobile devices. As of today, access to Facebook, Google and Twitter was again blocked. Some internet users in China pay for virtual private networks which bypass firewalls, but the government is also cracking down on this as well.

    Chinese users were also recently able to access to the mobile version of Google +, leading to many comments on Barack Obama’s re-election page, interestingly asking him to basically help save them from their government. China has over 500 million online users, the largest web community in the world, and studies have shown that the Chinese people are more engaged in social media than users are in the U.S.

  • Obama’s Google+ Flooded With Chinese Comments

    Obama’s Google+ Flooded With Chinese Comments

    President Obama has a Google Plus page for his re-election. Recently, people in China found they were suddenly able to acces the page. From there things went quite nuts.

    Postings have flooded the page in what some people are calling the “Occupy Obaba” movement by the Chinese. Rather than some form of protest against Obama, as the name would suggest, most of these postings are messages imploring the American president to help the people of China in their state of oppression.

    A few examples -with translations:

    中国政府不代表中国人! – The Chinese government does not represent the Chinese people.

    求绿卡 – Seeking a green card.

    尊敬的奥巴马总统,抱歉在您的信息下发表不相关的评论。处于对贵国一贯尊重人权的赞同和信任,固在此留言希望贵国政府能够在国际社会中呼吁归还盲人律师陈光诚的自由 .谢谢! – Dear President Obama,I’m sorry to write some irrelevant comments under your post. Due to my appreciation and trust to your country’s consistent respect to human right, I left this message, to implore the government of your country to call for the freedom of the blind lawyer Chen Guangcheng in international community , thank you!

    總統先生:懇請你消滅中共,解放中國人 – Mr. President: the urge you get rid of the CCP, the liberation of the Chinese people.

    我擦盯着回复就屁啊屁啊的蹦 – I rub staring reply on fart fart ah jump. [Literal translation.]

    And one in Russian:

    судя по количеству присутствующих здесь китайских товарищей -судьбу выборов в Америке будет решать великий Китай – Judging by the number of Chinese comrades present here, outcome of the U.S. elections will solve the great China.

  • Windows Phone in 23 New Countries

    Windows Phone in 23 New Countries

    Microsoft plans to bring it’s Windows Phone 7 OS to 23 new countries, as well as make the operating system available for use on more low-end devices, in an attempt to reclaim lost business from Google’s Android and Apple’s iOS. Microsoft plans to open up shop in China, Thailand, Venezuela and the 20 other countries by the end of the month, according to Terry Myerson, corporate vice president of Microsoft’s Windows Phone division. This will boost Microsoft’s phone market to 63 countries, a 60% increase.

    Al Hilwa, an analyst from International Data Corporation, states that global smartphone sales will top 1 billion units in 2015, with “China as the biggest single market – and Google and Apple aren’t as entrenched in these emerging markets, which provides an opportunity for Microsoft.” Regardless, cheap Android phones are gaining traction in developing markets. “That opportunity may be fleeting in that we are seeing a lot of Android phones come down to the low end,” Hilwa said. “They need more phones, more carriers, more prices, more languages.”

    As Microsoft doesn’t manufacture their own handhelds, it has adjusted its software to run on cheaper devices, like the upcoming Nokia Lumia 610, and its Asha series, unveiled today at the Mobile World Congress in Barcelona. Windows Phone 7 has been adjusted to require only half the memory to operate than previously, and runs on Qualcomm 7X27A chips, cutting manufacturing costs by roughly 30-40%, according to Myerson. Windows phones could cost $100-$200 to make, which should lead to cheaper phone prices in new markets. Microsoft is also working on adapting certain apps that won’t yet run on the slower and cheaper OS, and seeks to persuade more carriers to offer prepaid Windows Phones, a service that is popular in the emerging markets.

    Myerson added that app stores in Argentina, Indonesia, Malaysia, Peru and the Philippines have gone up recently to help promote the coming phones.

  • Chinese Officials Raid “Apple China” Warehouse, Seize iPhone Gas Stove

    Most everybody knows that when you go to China, you have to be careful of the products you buy. While many of the products you can buy in China are, of course, genuine, there are also a lot of knock-offs. If you find a deal on a Rolex watch, for example, that’s too good to be true, you can bet that it’s probably a fake. There have even been examples of a variety of fake electronics – from gaming consoles to tablets and smartphones – reported in the country.

    Now it looks like one Chinese company has decided to try and cash in on the popularity of Apple’s iPhone in a way that’s a little… novel. According to the Chinese blog Sina (Google Translation), a company calling ltself “Apple China” was caught selling an iPhone gas stove. From the pictures Sina posted (including the one above) it looks like they stuck an Apple logo and the word “iphone” on a perfectly ordinary stove. Law enforcement officials in Wuhan, China raided a warehouse and seized boxes full of the stoves. In addition to the image above, Sina posted two other images of a Chinese officer holding the stove. In the background you can see the boxes of stoves. Check them out below, then tell us what you think in the comments.

    iPhone Gas Stove

    iPhone Gas Stove

  • Foxconn FLA Audit: Inside Apple Production

    It costs Apple $250,000 to join the Fair Labor Association (FLA). ABC News’ Bill Weir was in China for the first ever FLA audit of Apple’s production floor inside Foxconn and it wasn’t surprising what he found. But, before I get into that, I think it’s interesting to mention that Apple had plans to partner with the FLA long before the ominous New York Times article was published featuring the so called, unsafe working conditions inside Foxconn.

    So what did Bill Weir show us inside Foxconn? Actually what we saw was what you would see if you took a tour of any modern production facility in the United States. The tour began with visitors putting on static-grounding devices (what Bill referred to as bunny suits) and entering a particulate controlled environment. Electronic components are extremely sensitive to the electric charges that our bodies generate as we go through our daily motions. The charges must be grounded or they will be sent through the electronic hardware of Apple devices and destroy them before they are even complete.

    Next we saw regular assembly line work taking place; people deburring metal cases, others cleaning screens, some snapping small components together, groups pushing carts, all kinds of activities that are common place in any production outfit. Judging from the video, I didn’t see anything unique or wildly out of place at the factory. This is not to say that abuses aren’t taking place, but abuses take place in every manufacturing facility, in China, The U.S., or elsewhere.

    What was unique was that many of the workers lived in nearby dorms. The employees report that the dorms are overcrowded, the pay is low, and the hours are long. By the way, most employees are working twelve hour shifts which feature two hours of breaks. This sound remarkably similar to production shifts in America. Workers at Foxconn are being compensated at a rate of two to three dollars per hour for regular shifts. In America, workers make between nine and fifteen dollars per hour for similar work. Aside from living at the dorms, everything sound fairly common.

    I think it is interesting that Apple fans have become so frantic over the working conditions in China when there are so many labor abuses right here in the United States. Tim Cook, Apple CEO claims that they keep tighter reins on safety than most others in the industry and I think we will find that those are not just shallow platitudes.

    FLA president, Auret van Heerden, made some commentary on what he first saw at Foxconn before the audits were started:

    “I was very surprised when I walked onto the floor at Foxconn, how tranquil it is compared with a garment factory. So the problems are not the intensity and burnout and pressure-cooker environment you have in a garment factory. It’s more a function of monotony, of boredom, of alienation perhaps.”

    So I agree that manufacturing can be boring and devoid of mental stimulation, it is a legitimate way to earn a living, and in China, it is probably one of few ways to guarantee a steady income. Is it a sweatshop? Yes, it probably is, but where else and how else can mass production take place? I think it would be great if we could pay Foxconn employees more, but are Apple consumers ready to have the costs passed on to them?

    I hope we find that the FLA’s audit is merely a formality to ensure future safety and that Foxconn is on the up and up with production safety, but my impression from what we have seen so far is that the FLA will find evidence of some abuse. What we should keep in mind is that China and Foxconn are growing at an unbelievably fast rate and that some issues will be ignored and overlooked. All and all, I think Apple, Foxconn, and China are headed in the right direction.

  • Chinese Court Rules In Favor Of Apple, Can Keep Selling iPads

    It looks like Apple’s arguments yesterday in court worked as the Shanghai Pudong New Area People’s Court is going to allow the company to keep selling iPads in the city. Three out of the five Apple stores in China are in Shanghai so this a massive win for the company.

    Reuters is reporting that sources in China are saying that Apple has won its first major battle against Proview. If you’ve been following the story at all, this is a major win for Apple as they had been ruled against in the smaller courts across the country.

    As we reported yesterday, Apple was arguing that Proview didn’t own the rights to the iPad name. Apple had acquired the iPad name from Proview’s Taiwanese branch and the sale accounted for all the Asian countries that the name was used in. Proview claims that the Taiwanese branch had no right to sell the Chinese trademark.

    While Apple has avoided an injunction against the sale of their massively successful iPad, they’re still fighting another case in the Shanghai courts. Proview is seeking compensation from Apple for what they see as trademark infringement. It remains to be seen if the court will side with Proview or Apple in regards to that decision.

    Regardless, this is great news for Apple as it would allow them to sell the iPad 3 in China. The device is already rumored for a March launch and an injunction now would have thrown a monkey wrench into their plans.

    It almost looks like we’re at the end of the legal drama between Proview and Apple. We’ll keep you updated on any developments. I doubt that Proview will be able to take the case to U.S. courts now after this ruling, so expect a settlement within the next few days.

  • Apple Begins Fight Over iPad Name In Shanghai Court

    The legal drama between Apple and Proview hit new heights today as arguments from both sides were heard in a Shanghai court.

    As you’re all probably familiar with by now, Proview claims to own the iPad trademark in China. A claim that Apple says is bogus as they claim to have bought the iPad trademark across numerous Asian countries, including China, years ago.

    Reuters is reporting that the case in Shanghai today has Proview arguing for the immediate halt of iPad sales in the city. If enacted, the injunction would be a major hit against Apple as three out of five Apple stores in the country are located in the city.

    Apple fought back with the best defense they had – Proview can’t even do anything with the iPad name. Hu Jinnan, a lawyer representing Apple, said that Proview “has no product, no markets, no customers and no suppliers.” In essence, Apple is suggesting that Proview is only seeking monetary gain. An accusation that Proview has denied.

    Apple also possibly made the best argument of the day by linking iPad sales with state interest. They said that the ban “would not only hurt Apple sales but it would also hurt China’s national interest.”

    The Shanghai Pudong New Area People’s Court, where the case is being heard, has not made a decision yet and there’s no timeline for when we will get one. Proview seems to think they will receive a verdict soon.

    Even if the court was to rule in favor of Proview, Apple would have the chance to appeal the decision to a higher court. The lower courts have proven to be in favor of Proview, but as the case climbs the court system, there’s bound to be a judge that will rule in Apple’s favor.

    We’ll keep you updated as this fascinating case continues.

  • As Smartphone Owner Growth Grows, So Mobile App Markets Must Grow

    In the next three years, the number of smartphone shipments worldwide is expected to more than double. That might be easy to believe if, for instance, we were talking about five shipments doubling to ten. Big deal. In actuality, though, those numbers are going to go from 472 million in 2011 to 982 million by 2015.

    That’s nearly ONE BILLION SMARTPHONES. That’s almost 1 smartphone per person in the developed world.

    And as far as smartphone owners go, in a couple of years we will simply call those people “China” because of the country’s insane growth of mobile app adoption in 2011: From January to October, the number of smartphone owners using apps on a daily basis grew 870%.

    Lookout Mobile Security put together an infographic illustrating this and more startling info about the astronomical growth rates of smartphone users and the apps they love. It’s hard to imagine that, just ten years ago, words like “smartphones” and “apps” were scarcely even in the collective conscious of humanity.

  • China Telecom To Begin Selling iPhones Next Month

    China Telecom To Begin Selling iPhones Next Month

    China Telecom has announced that they will start carrying Apple’s iPhone 4S next month. All models of the iPhone will be available on a selection of the company’s plans. Chinese customers who want an iPhone can pre-order one beginning March 2. The phone will be available for purchase on March 9.

    Of the three major Chinese mobile carriers, China Telecom is the second to get the iPhone. China Unicom has had the device for some time. The third carrier, China Mobile, does not currently have the technology to offer the iPhone on its network.

    The deal will no doubt be a big boost to Apple in China, where the iPhone has struggled to gain a foothold. A recent report showed that the iPhone’s market share in China had slipped to fourth place behind Samsung, Nokia, Huawei Technologies, and ZTE Corporation. Apple’s struggles in the huge Chinese mobile market have been attributed in part to the fact that only one of China’s three main carriers carry the iPhone.

  • Russia Urges UN Envoy to Syria on Twitter

    Russia proposed that the UN send a special envoy to Syria on Twitter Tuesday, to help coordiniate security and humanitarian efforts. Russia’s foreign ministry has urged the U.N. Security council to prompt the U.N. Security General to set these efforts in motion.

    This comes after Russia’s U.N. Ambassador Vitaly Churkin stated the world should help correct the humanitarian crisis in Syria on Monday, after Damascus permitted the Red Cross to bring aid to some regions. Russia had also recently opted out of the “Friends of Syria” meeting in Tunisia, citing that the oraganizers failed to invite any members of the Syrian government.

    Russian Foreign Ministry spokesman Alexander Lukashevich said the meeting in wouldn’t facilitate a dialogue, saying that “the global community should act as friends of the entire Syrian people, and not just one part.”

    Syria is the last ally Russia has in the Middle East, and Moscow has maintained close ties with Damascus since the Cold War era, when Syria was led by President Bashar Assad’s father, Hafez Assad. Russia, along with China, have already vetoed two Security Council plans that were backed by the Arab League, fearing a repeat of the resolution in Libya. In that instance, Russia refused to vote, which cleared the way for months of NATO air force attacks that assisted Libyans to end Moammar Gadhafi’s regime.

    So far, this is the sole reaction to Russia’s urging of a UN Envoy to Syria:

  • More Hollywood Films to be Released in China

    China has added 14 slots to the 20 Hollywood blockbusters they already allow into the country per year, as long as the additional films are in Imax or 3D. At the close of China vice president Xi Jinping’s recent visit to the U.S., some Chinese trade sanctions on Hollywood were lifted, which could lead to more 3D and Imax movies being greenlit. Hollywood films currently account for 40% of China’s box office, even in their small number. The new agreement now allows foreign filmmakers to keep 25% of profits, up from 13%. “The industry has been living with the numbers in terms of percentages and quotas for 20 years. It begged for a conclusion,” says Chris Dodd, chairman of the Motion Picture Association of America.

    After spending the day with Jinping in Los Angeles, Biden pressed on the trade dispute in question as the two had dinner, stating “we’re really close,” said an official who was present. “It would be great to get this done.”

    Jean Prewitt, president of the Independent Film and Television Alliance adds, “we do think it’s a breakthrough,” according to the Los Angeles Times. “For the first time we really have the building blocks to begin to work competitively in that marketplace,” she added. Presently, about 40 foreign indie films get a release in China each year, along with the typical 20 from Hollywood, with producers haggling over 2-3% of the gross. Now, they will be able to get roughly what they get elsewhere, in China. The new agreement might not only affect revenue – Su Mu, a professor at Beijing’s film academy, claims Chinese cinema has basically been ‘tricking’ moviegoers into theaters through the use of big name movie stars as of late, instead of making worthwhile films with actual production values and plots. “More U.S. movies may force domestic producers to take a correct attitude toward their works and learn from others,” Mu tells the Guardian.

    Market trends suggest that Hollywood blockbusters are in demand in China, and in 2011, 803 new theaters opened, many of which were equipped to handle Imax and 3D movies. “This is a very big deal,” adds Chris Dodd, describing the new arrangement. Biden and Jinping agreed the new rules will be under review in 5 years.

  • See Foxconn’s Apple Operations In China

    We’ve been covering the unfolding saga of Apple and their supplier Foxconn and the supposed worker abuses at their plants in China. We have covered everything from worker suicides at the plants, to petitions from concerned citizens, to inside interviews with Foxconn employees. Most recently we reported that Apple has partnered with the Fair Labor Association to conduct audits of operations in China and that workers compensation was increasing. Now, we are able to bring you exclusive footage from inside Foxconn’s walls. ABC News and Nightline bring us the following video:

    video platformvideo managementvideo solutionsvideo player

    As the video shows in the Nightline preview, Bill Weir traveled inside China and inside Foxconn in hopes of discovering evidence to support accusations of abuse by the Apple supplier. Perhaps the tour is an effort by Apple to illustrate their commitment to enhancing working conditions in China. On the other, hand it could be a contrived production put on by Foxconn to appease outraged consumers and to minimize any damage caused by the recent negative press. Either way, on tuesday you can view the entire Nightline story as they go into Foxconn and out on the production floor. I’ll be watching to see what they find and reporting back to you.

  • iPads Should Be Pulled From Shops, Lower Chinese Court Says

    Apple’s legal battle with Proview over the iPad patent got a little more troubling for the company today as a lower Chinese court ruled that stores in China should stop selling iPads. While this ruling may only affect the Guangdong province, which is close to the southern coast of the country near Hong Kong, Proview, which is based in China, has 40 other lawsuits going on in other cities throughout China to halt the sales of iPads.

    Apple argues that it purchased the worldwide rights to the iPad trademark from Proview but that Proview is now refusing to honor the agreement in China. Proview, alternately, still claims ownership to the trademark and, in addition to trying to halt the sales of the iPad in China, are seeking $2 billion from Apple in the U.S. courts as a means of compensation for Apple’s alleged trademark infringement.

    In a statement released on Monday, Apple maintained that its case is ongoing in mainland China and it has submitted an appeal to Guandgong’s High Court against an earlier decision in favor of Proview. In the statement, Apple spokeswoman Carolyn Wu reiterated Apple’s claim that it purchased the trademark for ten countries several years ago from Proview and a court in nearby Hong Kong has previously sided with Apple.

    Thus far, iPads have only been pulled from stores on a city-by-city basis as there has been no national action on the trademark dispute. Given that the iPad 3 will be landing as soon as next month, Apple will undoubtedly be looking to hasten the legal process toward a resolution as quickly as possible. However, given the process of rulings-and-appeals-and-more-rulings, don’t be surprised if this continues to drag on for the foreseeable future.

    Previous woes resulting from the dispute with Proview have sent Apple’s shares stumbling a bit, but no significant losses appear to be happening today – yet. Last week, Apple’s shares took a small tumble after news of a ruling in favor of Proview in Shenzhen hit the wires, but Apple shares seem to have slightly recovered and leveled off as of writing this. Then again, all Apple needs to do is shake down another tidbit of iPad 3 info from the rumor tree and their stocks will likely boom again.

    Also, if there’s one thing Apple knows, it’s that you don’t put anything between Apple products and Chinese consumers and they’ve got the resources to continue this fight as long as needed.