Vietnamese Consumers Resist China as Officials Try to Get Along

When Ha Tran of Ho Chi Minh City shops for food, clothes or electronics, she avoids merchandise she can tell comes from Vietnam’s giant neighbor, China. It might not work, she said, and China is no friend of Vietnam anyway.

“China exports many low-quality products to Vietnam, but we know they don’t export products to other countries around the world (that are) that bad, so we try to avoid the products that are made in China,” said Ha, 24, a design company worker in the Vietnamese financial hub city. Vietnamese prefer to buy stuff from Japan or the West. “We’ve tried (Chinese goods) many times in the past but it turns out like they get broken very easily.”

Political ties between Vietnam and China are another “factor” discouraging purchases, she said.

 

Ha is hardly a shopping renegade. Consumers around Vietnam typically shun “Made-in-China” purchases to protest what they see as poor-quality goods from a country that already has a record of disputes with their country. The two sides dispute, for example, a tract of territory in the South China Sea east of Vietnam. Competing claims sparked naval battles 1974 and 1988. The two also fought a land border war in the 1970s.

Vietnamese feel China has an unfair upper hand in the maritime dispute by using its larger military to control the contested Paracel Islands.

Consumers make up a growing force in Vietnam, as the Boston Consulting Group forecasts more than a third of the country’s nearly 93 million people to be middle class or higher by 2020. Fast growth in export manufacturing has added to Vietnam’s wealth since 2012 by creating jobs.

“If they find a product that might be the same price, and they find out that one product is Chinese and another product is from Japan, Korea or anywhere else, you know which one they’re going to go for,” said Oscar Mussons, senior associate with the Dezan Shira & Associates business consultancy in Ho Chi Minh City. “Vietnamese people see them not as big brothers, but as rivals.

“This is also because of recent problems, like Chinese are hitting national icons like the islands in the South China Sea,” Mussons said. “For Vietnamese, this is something that cannot be accepted in any way, even through you don’t hear much about or the government doesn’t try to make much publicity about it.”

 

Vietnamese officials have tried to sideline political disputes with China since anti-Chinese riots of 2014 killed more than 20 people and threatened to scare off investors. China’s go-ahead to construct an oil rig in the disputed sea touched off the rioting.

But Vietnam still counts China as its biggest trade partner. Combined imports and exports came to $25.5 billion in the first four months of the year, according to Vietnamese media reports. Export manufacturers in Vietnam rely as well on China for raw materials.

On top of the political issues, Vietnamese consumers widely suspect China sends lower-quality merchandise to its shelves. Giant Chinese firms, often bigger than Vietnamese counterparts, can send over excess merchandise for sale at low prices because of their production run sizes.

“Generally amongst Vietnamese, China-made products are perceived to be of low quality. Some of this is fact, but some of this is also driven by social media posts and ensuing perceptions,” said Jason Moy, principal with the Boston Consulting Group in Singapore. Lower-income, less educated consumers are particularly prone to those perceptions, he added. “Hence, Chinese products are generally selected when they are the last or only option.”

Trade in shoes, toys and daily necessities along the land border particularly leaves cheap but possibly suspect Chinese goods in Vietnam, where lower-income people buy them for their low prices, said Le Hong Hiep, research fellow with ISEAS Yusof Ishak Institute in Singapore. Goods trucked across the border in some cases have “pushed Vietnamese merchandise out of their traditional markets,” Le said.

An organized boycott against Chinese goods after the riots of 2014 gained little traction because poorer people couldn’t afford merchandise from other places, he said.

Although Chinese smartphones are gaining a solid reputation, Ha said she once bought a made-in-China phone for her mother because it was all they could afford. It broke after “several months,” she said, so the family bought another phone.

Only Chinese thong flip-flops are worth the money, she said, because at about $1 per pair you can afford to scrap and replace a pair after a few uses.

“People are conscious of the kind of low standards, low quality of Chinese products,” Le said. “I think one of the reasons is that many of these products are consumer items and small items, and they are imported by border trade, not through official channels which normally have stricter regulations and inspections to ensure the quality.”

 

Shoppers with more money prefer Japanese products as top quality, especially ever-popular motor scooters and consumer electronics, Moy said.Korean food and consumer electronics are also gaining favor with consumers, he said. 

From: MeNeedIt

Amazon to Close on Whole Foods Buyout Monday

Amazon will close its $13.7 billion buyout of Whole Foods Market Inc. on Monday and plans to cut prices on grocery staples.

 

Starting Monday, Whole Foods will offer lower prices on bananas, eggs, salmon, beef, and other products. Looking ahead, the Seattle company hopes to give Amazon Prime members special savings and other in-store benefits.

Also, certain Whole Foods products will be available through Amazon.com, AmazonFresh, Prime Pantry and Prime Now.

Whole Foods shareholders approved the deal Wednesday, and the Federal Trade Commission said it would not block the deal. Amazon will pay Whole Foods shareholders $42 per share, marking an 18 percent premium from its stock price the day before the tie-up was announced on June 16.

Earlier this month, Amazon.com Inc. sold $16 billion of bonds in order to pay for the purchase.

By buying Whole Foods, Amazon is taking a bold step into brick-and-mortar, with more than 460 stores and potentially very lucrative data about how shoppers behave offline.

Meanwhile, rivals are scrambling to catch up with the e-commerce giant. Wal-Mart Stores Inc., which has the largest share of the U.S. grocery market, is expanding its grocery delivery service with ride-hailing service Uber and announced Wednesday that it will join forces with Google to let shoppers order goods by voice on Google devices.

From: MeNeedIt

Washington Budget Bickering Could Hurt US Credit Rating Again

Experts at credit rating agencies are watching Washington’s political squabbling over budgets and spending closely, and they might make another cut in the U.S. credit rating if the Republican-controlled White House, Senate and House cannot reach an agreement.

President Donald Trump has promised to build a massive wall along the southern U.S. border in a bid to stop illegal immigration. Trump has said he will press Congress hard to fund the controversial measure, even if it stalls action on other budget issues and forces the government to shut down.

Some of Trump’s fellow Republicans who ran on promises to limit or cut government spending are reluctant to fund the measure, and most rival Democrats oppose the wall.

U.S. law provides for a “debt ceiling,” meaning the Treasury cannot borrow more money unless Congress agrees to raise the limit. That limit was reached months ago, and the federal government will apparently run out of cash by the end of September or early October if nothing changes.

The political situation is made more complex by the fast-approaching end of the budget year and the need for Congress to agree on next year’s spending priorities.

Congress and presidents have bickered over budgets in the past, and in 2011 a debt ceiling impasse prompted the Standard & Poor’s agency to make the first downgrade of the U.S. credit rating.

The Fitch agency Wednesday said failure to raise the debt ceiling in a timely manner would prompt a review of the nation’s credit rating. Fitch currently gives the United States its top rating.

Moody’s experts Thursday wrote that they expected Washington politicians to work out their differences, but that failure to reach an agreement could prompt the government to shut down, disrupting the economy more and more if the impasse drags on.

Moody’s noted that a previous government shutdown prompted lenders to demand higher interest rates, raising the cost of government by about $1.3 billion in just one year.

Moody’s and other experts have urged Congress to remove the debt ceiling because it does not restrain spending but does add “to the noise” around the budget process.

From: MeNeedIt

Ebola Survivors Found to Suffer Multiple After-effects

Patients who survive infection with the Ebola virus often continue to face numerous health problems. New research finds 80 percent of Ebola survivors suffer disabilities one year after being discharged from the hospital.

Approximately 11,000 people died in the Ebola outbreak that hit West Africa from 2014 to 2016; tens of thousands more who were infected survived.

Of those survivors, many battled vision problems and headaches that lasted for months.

Researchers at the University of Liverpool and the Liverpool School of Tropical Medicine are studying what’s called post-Ebola syndrome. One of the senior authors of the study, Dr. Janet Scott, says researchers are unsure why survivors experience such disabilities.

“I’m not sure we’ve quite gotten to the bottom of it yet,” Scott said. “The idea that you go through something as horrific as Ebola and just walk away from that unscathed was always a bit of a vain hope.  So, it could be the inflammatory response. It could be damage to the muscles, and it could be the persistence of virus in some cases. It could be all of those things.”

Scott says problems found in Ebola survivors’ eyes may provide clues to what is happening elsewhere in the body.

“They show some quite distinct scarring patterns,” she said. “There’s definitely scar tissue there. We can see it in the eyes. We can’t see it in the rest of the body, but I’m sure it’s in the rest of the body because the patients are coming in with this huge range of problems.”

The disabilities were reported in past Ebola outbreaks, as well. However, because past outbreaks were smaller and there were few survivors, researchers were not able to do major, long-term studies on the aftereffects.

This time, said Scott, “There are 5,000 survivors or thereabouts in Sierra Leone, and more in Guinea and Liberia. So, it’s an opportunity from a research point of view to find out the full spectrum of sequelae … the things that happen after an acute illness.”

Military Hospital 34 in Freetown, Sierra Leone, also took part in the study, helping to recruit 27 Ebola survivors and 54 close contacts who were not infected. About 80 percent of survivors reported disabilities compared to 11 percent of close contacts.

“The problems we’re seeing in Ebola survivors, this is not due just to the tough life in Sierra Leone. This is more than likely down to their experience in Ebola,” Scott said.

The research was led by Dr. Soushieta Jagadesh, who said “a year following acute disease, survivors of West Africa Ebola Virus Disease continue to have a higher chance of disability in mobility, cognition and vision.”

“Issues such as anxiety and depression persist in survivors and must not be neglected,” she added.

Scott hopes the findings can be used to provide better care in the event of another Ebola outbreak, no matter where it is. In the West Africa outbreak, the first goal was to contain the epidemic, followed by reducing the death rate.

“If I was treating an Ebola patient again, it has to be more than just surviving,” Scott said. “You have to try to make people survive well. Surviving with half your body paralyzed or with your vision impaired and being unable to care for your family or earn a living isn’t really enough. So, what I would like to do is to focus on that aspect to make people survive better and survive well.”

From: MeNeedIt

US Space Company Makes History With Client from China

Imagine a post office for space. That is the job of U.S. space company NanoRacks. Just down the street from NASA’s Johnson Space Center in Houston, NanoRacks is one of many companies benefitting from the U.S. space program’s support for a broader range of commercial interests.

“There has been a shift in federal funding into more of this commercial space transportation program,” said David Alexander, director of the Rice Space Institute and professor of physics and astronomy at Rice University in Houston.

“What that has allowed these companies to do is essentially have an anchor client, an anchor customer and then build up their manifest and build up their client base and think of lots of new ways of accessing space for many different purposes,” Alexander added.

Watch: US Space Company Makes History with Client from China

​The space business

For a price, NanoRacks can help almost anyone, anywhere send an experiment or small satellite to the International Space Station in orbit around the Earth. The company made history this summer with a client from China.

“We’re all about democratizing access to space. It’s really important to me that we involve as many nations as possible,” NanoRacks Chief Executive Officer Jeffrey Manber said.

The company has helped deliver space experiments and satellites of customers from 30 countries, including academic institutions in Eastern Europe, Peru and Vietnam.

The Beijing Institute of Technology, one of NanoRacks’ latest customers, became the first from China to have an experiment brought onboard the International Space station.

“They’re doing an experiment on DNA and how it mutates in microgravity,” Michael Lewis, chief technology officer of NanoRacks, said.

The research operation in China did not respond to VOA’s request for an interview, but NanoRacks’ Manber said findings from the Chinese experiment could have groundbreaking implications.

“They’ve shown abnormal results when DNA is subjected to space. That could mean, we can’t travel to Mars,” Manber said.

​Getting Chinese experiment to ISS

Getting the Chinese experiment to the International Space Station was complicated because U.S. federal law prohibits NASA from working directly with China because of fears the Chinese could steal U.S. technology.

“First we brought it to the Obama administration. They were very concerned there was no ties to the People’s Liberation Army,” Manber said.

After two years, NanoRacks received approval from U.S. lawmakers.

A statement from NASA said, “NASA complied with all legal requirements to notify the Congress of this activity, and all of the ISS (International Space Station) partners approved the inclusion of the experiment from the Beijing Institute of Technology.”

However, there was one stipulation.

“We had to make sure that there was no technology transfer. No IT connection to the space station,” Lewis said. “We had a creative solution. We said, ‘OK, we’ll make sure that we plug in the experiment, and it’s not even connected data wise,’” he added.

Lewis said the self-contained autonomous Chinese experiment flew to the International Space Station on the SpaceX CRS-11 Dragon spacecraft. The experiment received only power from the space station and spent about three weeks there before returning to Earth.

“On the science side, a lot of us scientists would welcome the partnerships. There’re other issues we don’t think about. Much of the Chinese space program is done through the military and the technology development they have gone through in the last few years, again, have been very successful,” Alexander said.

Aside from national security concerns, scientists and businesses are pushing for more international collaboration in space.

“You can’t do deep space exploration alone. The American government cannot do it without the American private sector, and America cannot do it without international colleagues. It’s too expensive. It’s too longer term,” Alexander said.

From: MeNeedIt

Trump’s NAFTA Termination Comment Falls Flat in Arizona

President Donald Trump’s comments at a Phoenix rally that he will probably end up terminating the North American Free Trade Agreement brought cheers from the crowd but groans from the state’s top business group.

Arizona Chamber of Commerce and Industry President Glenn Hamer posted a video calling any termination a “terrible mistake” within hours of Trump’s remarks Tuesday night. Hamer is in Mexico on a trade mission with a bipartisan delegation of about two dozen state lawmakers.

 

“It would be a mistake that the administration would feel each and every day,” Hamer said. “And why would that be? The administration has set a noble goal of 3 percent growth. You can’t get there if your start unraveling trade agreements.

 

“You need good tax policy, you need good regulatory policy and you need good trade policy,” he said.

Trump hints NAFTA is done

Trump said at the campaign-style rally that he believes Mexico and Canada are coming out ahead on the 23-year-old trade agreement. Renegotiations began in recent weeks.

 

“Personally, I don’t think we can make a deal, because we have been so badly taken advantage of,” Trump said. “I think we’ll end up probably terminating NAFTA at some point, OK? Probably.”

Modernizing agreement

Republican Sens. Jeff Flake and John McCain have called for modernizing an agreement they say has brought huge benefits for Arizonans.

 

Flake has put on a full court press in recent months, launched an effort in May to highlight what he calls the agreement’s “huge boon to Arizona and the U.S.” He’s put out videos featuring people and businesses that have benefited from the trade pact.

On Wednesday, he said he won’t stop that effort.

“I will continue to speak up for the countless Arizonans whose jobs and businesses rely on the billions of dollars that NAFTA injects into our state’s economy,” Flake said in a statement.

 

From: MeNeedIt

SpaceX Unveils Sleek, White Spacesuit for Astronaut Travel

SpaceX has unveiled a sleek white spacesuit for astronauts on its crewed flights coming up next year.

Chief executive Elon Musk made the big reveal via Instagram on Wednesday. He says it’s not him in the new suit, rather a SpaceX engineer.

SpaceX is developing a crew version of its Dragon cargo capsule for NASA astronauts. Boeing is also working to get U.S. astronauts flying again from home soil. Boeing is going blue for spacesuits for its Starliner capsules.

U.S. astronauts last rocketed away from Cape Canaveral, Florida, in 2011. They’ve since been riding Russian rockets to get to the International Space Station.

Musk says the new SpaceX suit has been tested on Earth — and works. He says it was incredibly hard to balance aesthetics and function.

From: MeNeedIt

Study: Few Nations See Beyond Hunger in Fighting Malnutrition

Food alone cannot solve the world’s malnutrition crises but only three countries are looking beyond hunger to the other major driver, according to a global study released Thursday.

Water, sanitation and hygiene, usually treated by governments and NGOs as a separate policy area from food and nutrition, make up the second leading cause of stunted growth in children, after underweight births, said the report.

But only Cambodia, Niger, and Zimbabwe among the 10 countries covered by the report are linking their response to malnutrition and water by bringing together the responsible agencies, according to charity WaterAid.

“Improving child health is a long-term issue. It’s not as simple as giving food and that improves malnutrition — right?” Dan Jones of WaterAid told Reuters.

Jones said governments that treat food and water separately cannot prevent malnutrition. Instead, they must tackle the poor sanitation that causes malnutrition, via infection and disease.

In 2016, 155 million children younger than five were stunted due to a lack of nutrition, according to the United Nations World Health Organization.

Diseases caused by dirty water and lack of sanitation such as gut infections, intestinal worms, and diarrhea prevent young bodies from absorbing the nutrients needed for growth, according to WaterAid, which produced the report with charities Action Against Hunger and SHARE.

Jones said malnutrition can leave children with invisible cognitive, emotional and physical damage.

Yet the effects are clear, and span all areas of development, from economic growth to schooling, said Jones.

“If they have clean water … girls, when they grow up to be mothers, are more likely to give birth to healthy children, and to be able to help them to grow and develop and provide them with clean water and food — and those children can go to school and concentrate in school,” said Jones.

Jones singled out Cambodia for linking up its response.

One in three Cambodian children younger than five is stunted, but Prime Minister Hun Sen has brought together the ministries responsible for nutrition, health, agriculture, and water and sanitation to create a joint response.

“It sounds very obvious, but those ministers really talking to each other can make a huge difference,” Jones said.

From: MeNeedIt

With Tax Talk Heating Up, Republicans Modify Plan for Businesses

Congressional Republicans, seeking to address the complaints of small businesses, are floating changes to their controversial proposal to eliminate business tax deductions for debt interest payments, business lobbyists said Tuesday.

A top U.S. Republican on tax policy acknowledged that modifications are in the works but did not provide details.

The debt interest proposal, long seen by Republican policymakers as necessary to help drive economic growth, is backed by large companies with ready access to equity financing that they could substitute for debt if eliminating the interest deduction made issuing debt too costly. Debt-dependent small-business owners, farmers and ranchers don’t have that luxury.

As Republicans in Congress and the Trump administration slog ahead with a push to overhaul the U.S. tax code, a key task is figuring out how to resolve conflicting groups’ priorities, with business debt interest a clear example.

The tax code has not been overhauled since 1986, partly because reconciling these conflicts can be so difficult.

“We’ve asked businesses large and small to look at that, test-drive it and give us back their feedback,” House of Representatives tax committee Chairman Kevin Brady said in remarks at an event in Louisville, Kentucky, on Tuesday, without offering specifics about the modified proposal.

His staff at the committee had no comment.

Businesses lobbyists said the panel’s lawmakers have quietly agreed to focus on exemptions for small businesses, including farmers and ranchers, and an exemption for land.

Interest deduction

Lawmakers have also discussed a possible partial elimination of the interest deduction, with an exemption for existing debt, or eliminating the deduction only for businesses deemed to have an excessive amount of debt, according to lobbyists.

Brady is one of the “Big Six” negotiators from Congress and the Trump administration who are guiding the tax reform debate.

At the Louisville event, he described rolling back the business interest deduction as a “trade-off” for another proposal to accelerate expensing, which would allow businesses to write off investments in plants and equipment more quickly.

He said net interest deduction is one of a number of tax breaks that lawmakers are looking to eliminate to help pay for lower business tax rates. Republicans say tax cuts will help drive annual U.S. economic growth above the 3 percent mark.

Independent analysts say that eliminating the interest deduction would raise more than $1 trillion in federal revenues.

Republicans want to cut the corporate income tax rate to 20-25 percent from 35 percent. But they have been hard-pressed to pay for such a cut since jettisoning a border-adjusted import tax that would have raised more than $1 trillion.

From: MeNeedIt

Florida Lab Sets New Magnet Strength Record

Engineers at a lab in Florida have been working quietly for 2½ years on building one of the most powerful magnets in the world.

And on Monday, they succeeded. The National High Magnetic Field Laboratory — whose main location is housed at Florida State University — met its goal and reclaimed its status as home to the world’s strongest resistive magnet.

They called it “Project 11,” a nod to the comedy film “This is Spinal Tap,” about a fictional heavy metal band whose guitarist boasts an amplifier whose volume goes up to 11, not just 10.

Lab officials said they tested a 41.4-tesla magnet, which is roughly 20 times the strength of a magnet used in medical imaging machines and vastly stronger than the ones that get stuck to the door of a household refrigerator. The Earth’s magnetic field, by comparison, is one-twenty thousandth (.00005) of a tesla. A tesla is a measure of magnetic field strength.

The new magnet, which cost $3.5 million to build, beat the old mark for resistive magnets, which was held by a 38.5-tesla magnet in China. The National MagLab had previously held the record for 19 years.

Greg Boebinger, the lab’s director, said the loss of the record prompted officials to tell engineers, “Go ahead and make the thing bigger, go ahead and use more power, just go full volume to 11 and see what you can do.”

Continuous operation

Resistive magnets are a type of electromagnet used for research. They differ from pulsed magnets, which can reach a higher Tesla but can sustain that power for only a fraction of a second. Resistive magnets can run continuously. Superconducting magnets use less power but tap out at a lower field strength. Hybrid magnets combine superconducting and resistive elements and can reach even higher fields. The National MagLab has the world’s strongest hybrid magnet, which reaches 45 tesla.

Researchers say they can use these powerful magnets to answer many questions, such as: What kinds of materials will work best in quantum computers? How does a potential Alzheimer’s drug change the brain? What molecules make up a sample of crude oil — and will it be worth drilling for?

The new record-setting magnet is powerful enough that lab officials use non-magnetic tools, but it’s not as powerful as some imagine.

“Local people think we change the weather,” said Boebinger, who said he gets asked about Magneto all the time. “We don’t even change the magnetic field outside our building.”

Instead, the magnetic field created by the new magnet will be used by researchers and scientists from around the world as a way to look at and study various types of materials and perhaps make breakthroughs in medicine, engineering and energy.

From: MeNeedIt