Internet Giants Told: Accept Cyber Curbs to Be Welcome in China

Google and Facebook will have to accept China’s censorship and tough online laws if they want access to its 751 million internet users, Chinese regulators told a conference in Geneva on Monday.

Google and Facebook are blocked in China, along with Twitter Inc and most major Western news outlets.

“That’s a question maybe in many people’s minds, why Google, why Facebook are not yet working and operating in China,” said Qi Xiaoxia, director general of the Bureau of International Cooperation at the Cyberspace Administration of China (CAC). In Google’s case, it left China of its own accord in 2010.

“If they want to come back, we welcome,” Qi told the Internet Governance Forum at the U.N.’s European headquarters.

“The condition is that they have to abide by Chinese law and regulations. That is the bottom line. And also that they would not do any harm to Chinese national security and national consumers’ interests.”

China’s Communist Party has tightened cyber regulation in the past year, formalizing new rules that require firms to store data locally and censor tools that allow users to subvert the Great Firewall that blocks sites including Facebook and Google.

Their rival Apple operates subject to strict censorship, having removed dozens of popular messaging and virtual private network (VPN) apps from its China App Store this year to comply with government requests.

In June, China introduced a new national cybersecurity law that requires foreign firms to store data locally and submit to data surveillance measures.

“We are of the idea that cyberspace is not a space that is ungoverned. We need to administer, or supervise, or manage, the internet according to law,” Qi said.

“Can you guess the number of websites in China? We have five million websites. That means that the Chinese people’s rights of speech and rights of expression are fully ensured.”

It was not clear what her figure of five million was based on. According to the website internetlivestats.com, there are 1.3 billion websites on the World Wide Web, defining a website as a unique hostname which can be resolved, using a name server, into an IP address.

Reporting by Tom Miles, additional reporting by Cate Cadell in Beijing, Editing by William Maclean.

Families Field Test Autonomous Vehicles

It’s all fun and games until a family gets behind the wheel. That’s the whole idea behind Volvo’s Drive Me project. Automated vehicles are now being test driven by families as part of a multi-stage experiment that’s taking place in Norway. VOA’s Steve Redisch reports.

Apple’s 2017 iPhone Models Give Taiwan’s Weary Tech Sector a Reprieve

A boom in production of Apple iPhones is helping lift the economy of Taiwan, an industrial center that still relies on high-tech manufacturing contracts despite increasing competition from offshore.

Apple’s phone sales in the third quarter this year grew 5.7 percent over the same period of 2016, ahead of a cross-brand increase of 3 percent to 383 million units, market research firm Gartner says.

Orders for older iPhones as well as the iPhone X, which is seen taking off next year, have solidified orders for parts supplied by tech firms in Taiwan, analysts say.

Tech specialists say the Silicon Valley icon is looking this year to Taiwanese firms for chip production, camera modules, displays and final assembly.

Taiwanese-owned Foxconn Technology often assembles Apple gear at sprawling factories in China, for example. Taiwan Semiconductor Manufacturing Co., the world’s biggest chipmaker, is building the A11 processor for the iPhone 8, local media reports say.

“It’s a good shot in the arm,” said John Brebeck, Taipei-based managing director of the Hong Kong investment consultancy Peace Field. “If you’ve got Apple making a new chip, if you’ve got the OLED (display) guys and if you’ve got Foxconn with the assembly, the camera module guys, that’s a pretty big chunk of Taiwan GDP.”

A reprieve as offshore competition intensifies

Officials in Taipei worry that China will take a growing share of the world’s hardware manufacturing business, a trend spotted in 2013 when Taiwan’s tablet PC assembly began moving across the strait. China’s costs are generally lower and production scales higher.

Taiwanese high-tech, an aging industry worth about one-fifth of the island’s $528 billion GDP, has long depended on Apple among other developers for orders.

Tech hardware contracts often follow from years of trusted relationships based on quality supplies or assembly, Gartner’s Taipei-based research vice president Tracy Tsai said, citing orders for Macs as an example.

Mac shipments should grow 4 percent this year and 3 percent in 2018 as users replace older devices, she said.

“Notebooks are a something that’s very focused on previous quality and the numerous standards maintained by suppliers, what they measure up to,” Tsai said. “It’s not so easy to change it all, so (it’s) still mainly about Taiwan.”

Apple declined to comment for this report, and its Taiwanese contractors seldom discuss the sources of their business.

Cycles in global demand for consumer electronics highlight Taiwan’s dependence on high-tech. When demand sagged in 2015 and early 2016, Taiwan’s income from exports shrank for 17 straight months. It has stabilized since then.

A tale of cameras and displays

Taiwan-based Largan Precision has made iPhone modules over at least the past six years, analysts believe. But the iPhone X comes with three-dimensional cameras equipped for face recognition, and given the depth of that new technology Largan may share orders.

Apple is expected to tap several suppliers for the related parts, said Bryan Ma, devices analysis vice president with market research firm IDC in Singapore.

Production of smartphone displays also shows pressure from China. Taiwanese display makers AU Optronics and Innolux ranked among IDC’s top five firms for market share in the third quarter.

But BOE Technology of Beijing reached the top spot with a 23.5 percent market share.

BOE gets subsidies from local government in China. It has held prices down and splits its business between higher-end OLED smartphone screens and the basic LCD type used by a range of consumer electronics, said Hattie He, an analyst for mobility service at Canalys in Shanghai. The Apple X uses OLED displays.

“To many Chinese vendors, BOE provides an affordable alternative to the international suppliers, gaining an edge in the OLED transition phase,” He said. “As display is part of the solution, being a leading provider will help BOE continue its growth.”

Chinese PC maker Lenovo and telecom equipment manufacturers Huawei Technologies and ZTE are reaching “sufficient scale to take their businesses worldwide,” Strategy&, a consulting group under PwC, said in a report. “They will be joined, in turn, by hundreds and then thousands more.”

Gains in 2018 from the iPhone X

Apple’s iPhone shipments next year will rise 8 percent to 240 million largely because of the X model, Ma with IDC says.

Apple had already returned to growth in China in the third quarter while posting “strong sales” in emerging markets such as India, Gartner says. The iPhone X got off to a late start, extending benefits to suppliers into next year.

“The expectation always has been that this 10th anniversary edition is going to hit big and clearly as the product came out it was obvious that they had done a lot in the product to make it dramatically different from generations of the past,” Ma said.

New Kind of Retirement Community: A Little India in Silicon Valley 

With people coming from around the world to work in Silicon Valley, some struggle with the best ways to care for their aging parents.

Increasingly, the solution is an “affinity” retirement community, where older people from places like India and China can live near — but not with — their adult children. These communities break from traditional custom that parents and children live together.

“The children are so busy these days, they are all the time working, taking care of their kids, so we do not want to interfere in their lives,” said Asha RaoRane, an Indian national who wanted to move to the U.S. to be near her three daughters who had immigrated to San Francisco.

Her daughters started exploring the idea of a traditional senior retirement community, but were having trouble finding an American community they thought their mother would fit into.

In July, RaoRane, 70, moved into Priya Living, an affinity-living community, meaning it caters to people with similar interests, such as yoga and meditation.

Arun Paul founded Priya Living as a place for his parents to live. The couple moved from Los Angeles four years ago and are still in a ground floor apartment.

“In living here in America, as the son of immigrants, I’ve realized that there’s very unique needs that immigrants have,” said Paul, a real-estate developer.

“That old system was based on a different time when women were in the house, really taking care, in many cultures, of their husband’s parents,” Paul said. “Obviously the role of women in society has changed globally.”

New friends

For Bhagyashree RaoRane, 38, finding Priya Living for her mother has been a dream come true.

“We walked in and instantly it was like walking into an Indian community in India,” said RaoRane, a filmmaker. “Even the building is painted the same color as so many of the buildings in India are painted.”

This type of independent senior community came as a shock to Nagendra Prasad, 62, and Manjula Neelakantaiah, 53, who came to Priya on a two-month visit from Bangalore, India, to see their daughter, an intern at Google.

“Really, in the beginning we were surprised,” Neelakantaiah said. “In India the younger people, they definitely take care of the aged people.”

Not always a good fit

For a few residents, Priya is not the perfect fit. Dr. Byravan Viswanathan and his wife, Lakshmi, were born and raised in India but spent much of their adult lives in a small town in Pennsylvania.

“We had oodles and oodles of good friends and they were not Indians — regular Americans,” he said. “We had become so Westernized, we have to adapt to Indian living again. Look around. There are six different Indian languages spoken right now at this table, languages I have never spoken or haven’t spoken in decades.” Viswanathan’s daughter is looking into finding a more American community for them.

All are welcome

While the vast majority of residents are from India, Paul stressed that Priya Living welcomes people of all backgrounds. There are a few non-Indians who call Priya home.

Carlos McCann, an 89-year-old WW II veteran, has been living in the complex for almost 20 years, long before it was purchased and remodeled to become the primarily Indian community.

“Everything has sort of come together at this location it’s like it’s the center of the world,” he said.

Indian Retirees Maintain Independence, Fun and Freedom Later in Life

Young people come from around the world to work in Silicon Valley, California. As these workers build a life away from home, many struggle with how to bring their aging parents to their new community. But what happens to foreign parents entering their later years in a new country? VOA’s Deana Mitchell visits a unique community in Silicon Valley that caters to retirees from India.

Facebook Highlights Dangers of Using Facebook

With nearly 2 billion users, Facebook’s survival depends on people continuing to use its service. 

That’s why observers were surprised by an unusual company blog post Friday that highlighted some of the potential harm of using the social media service. 

Titled Hard Questions: Is Spending Time on Social Media Bad for Us?,

the company cited studies that suggested some of the possible downsides of using social media. 

In one study, people who passively read about others’ lives reported feeling worse about themselves. One possibility is “negative social comparison” when reading about others online, the company said, because “people’s posts are often more curated and flattering” than how they are in their real, offline lives. 

But there’s a potential solution, according to Facebook, which reported $10 billion in revenue — its highest ever — in the last quarter: Don’t be a bystander to others’ lives. Use Facebook more and with friends and family.

Facebook users who spend more time on Facebook — actually post and interact with close friends — experienced more positive effects, according to a company study conducted with Carnegie Mellon University.

“Simply broadcasting status updates wasn’t enough,” the post said. “People had to interact one-on-one with others in their network.”

New features

The Facebook post came as some former top executives have spoken about Facebook’s potential negative effects on society and individuals. Facebook exploits a “vulnerability in human psychology,” Sean Parker, Facebook’s founding president, said recently.

To aid in supporting people’s well-being while using its service, the company recently tweaked its News Feed — what people see when they sign on — to promote friendships and demote what the firm called “clickbait headlines.” 

Also, it launched a new feature called “Snooze” that lets a user hide a person, Facebook page or group for 30 days without having to “unfollow.” It gives a Facebook user more control of what he or she sees, the company said. 

Effects on kids

The company acknowledged that people are worried about the short- and long-term effects of Facebook use on young people. It pledged $1 million toward research to “better understand the relationship between media technologies, youth development and well-being.”

Observers praised the company for acknowledging that using social media may have unintended, negative consequences, but noted that it was unusual for a corporation, one that typically presents itself as a force for good, to point out some of the risks of using its service. 

One unanswered question is whether Facebook with new features and tweaks can offset potential negative effects. 

Or will people put a Snooze button on Facebook? 

US Prosecutors Move to Cash in on $8.5M in Seized Bitcoin

U.S. attorneys in Utah prosecuting a multimillion-dollar opioid drug-ring are moving quickly to sell seized bitcoin that’s exploded in value to about $8.5 million since the alleged ringleader’s arrest a year ago.

The U.S. Attorney’s Office for Utah cites the digital currency’s volatility in court documents pressing for the sale. The bitcoin cache was worth less than $500,000 when Aaron Shamo was arrested on drug charges, but the value of the digital currency has skyrocketed since then.

Bitcoin was created as a digital alternative to the traditional banking system, and is prone to swings in value based on what people believe its worth.

For federal prosecutors in Utah, sales of seized assets like cars are routine, but bitcoin is new territory, spokeswoman Melodie Rydalch said Thursday.

Shamo is accused of selling pills containing the powerful opioid fentanyl on the dark web — an area of the internet often used for illegal activity — to thousands of people all over the U.S., at one point raking in $2.8 million in less than a year.

The 500,000-pill bust ranked among the largest of its kind in the country, and authorities also found $1 million of cash stuffed into trash bags.

Shamo has pleaded not guilty to a dozen charges.

The proceeds of the bitcoin sale will be held until the case is resolved, and then decisions will be made about where the money goes, Rydalch said. Seized asset sale proceeds usually goes to the agency that investigated, like the Drug Enforcement Administration.

Defense attorney Greg Skordas is not contesting the sale of his client’s bitcoins.

Although there’s no global consensus over the status of bitcoin — debate rages whether the virtual money is an asset or a currency — that hasn’t stopped officials in the U.S. and elsewhere from cashing in on the digital hauls seized from cybercriminals.

In 2014 the U.S. Marshals Service announced the auction of nearly 30,000 bitcoins seized from notorious dark web drug marketplace Silk Road. Other seizures have since netted the American government millions of dollars in a series of sales.

Other governments — from Australia to South Korea — have set up similar auctions over the years.

Associated Press writer Raphael Satter in London contributed to this report.

German Government Says It Backs ‘Open and Free Internet’

The German government says it backs an “open and free internet” following the U.S. decision to repeal net neutrality rules.

A spokeswoman for the Economy Ministry said Friday that Germany had “taken note” of the U.S. move but declined to comment directly on it.

However, spokeswoman Beate Baron said the German government supports rules introduced across the European Union last year forbidding discriminatory access to the internet.

Baron told reporters in Berlin that “an open and free internet is indispensable for the successful development of a digital society that everyone wants to take part in.”

The Republican-controlled U.S. Federal Communications Commission on Thursday repealed Obama-era rules requiring all web traffic to be treated equally.

Scientists Working on Writing Five-day Forecast for Solar Storms

Charged particles from the sun are responsible for the brilliant auroras at the earth’s poles. But there can be cases of too much of a good thing. When huge solar storms push massive waves of energized particles into Earth’s path, they can wreak havoc on our satellites and electric grid. That is why researchers are trying to figure out what causes solar storms. VOA’s Kevin Enochs reports.

Trump Touts Progress on Slashing Federal Regulations

U.S. President Donald Trump has touted progress on slashing federal regulations, which he says cost America trillions with no benefit. Speaking Thursday from the White House, the president said his administration had exceeded its goal of removing two federal regulations for every new one, by removing 22 for every new one. Opponents have criticized some of the deregulation, especially dismantling of the net neutrality rules that guarantee equal access to the internet. VOA’s Zlatica Hoke reports.

What Is Net Neutrality?

“Net neutrality” regulations, designed to prevent internet service providers like Verizon, AT&T, Comcast and Charter from favoring some sites and apps over others, have been repealed. On Thursday, the Federal Communications Commission voted to dismantle Obama-era rules that have been in place since 2015, but will forbid states to put anything similar in place.

Here’s a look at what the developments mean for consumers and companies.

What is net neutrality?

Net neutrality is the principle that internet providers treat all web traffic equally, and it’s pretty much how the internet has worked since its creation. But regulators, consumer advocates and internet companies were concerned about what broadband companies could do with their power as the pathway to the internet — blocking or slowing down apps that rival their own services, for example.

What did the governments do about it?

The FCC in 2015 approved rules, on a party-line vote, that made sure cable and phone companies don’t manipulate traffic. With them in place, a provider such as Comcast can’t charge Netflix for a faster path to its customers, or block it or slow it down.

The net neutrality rules gave the FCC power to go after companies for business practices that weren’t explicitly banned as well. For example, the Obama FCC said that “zero rating” practices by AT&T violated net neutrality. The telecom giant exempted its own video app from cellphone data caps, which would save some consumers money, and said video rivals could pay for the same treatment. Pai’s FCC spiked the effort to go after AT&T, even before it began rolling out a plan to undo the net neutrality rules entirely.

A federal appeals court upheld the rules in 2016 after broadband providers sued.

The telcos

Big telecom companies hated net neutrality’s stricter regulation and have fought them fiercely in court. They said the regulations could undermine investment in broadband and introduced uncertainty about what were acceptable business practices. There were concerns about potential price regulation, even though the FCC had said it won’t set prices for consumer internet service.

Silicon Valley

Internet companies such as Google have strongly backed net neutrality, but many tech firms were more muted in their activism this year. Netflix, which had been vocal in support of the rules in 2015, said in January that weaker net neutrality wouldn’t hurt it because it’s now too popular with users for broadband providers to interfere.

What happens next

With the rules repealed, net-neutrality advocates say it will be harder for the government to crack down on internet providers who act against consumer interests and will harm innovation in the long-run. Those who criticize the rules say the repeal is good for investment in broadband networks.

But advocates aren’t sitting still. Some groups plan lawsuits to challenge the FCC’s move, and Democrats — energized by public protests in support of net neutrality — think it might be a winning political issue for them in 2018 congressional elections.

FCC Scraps Net Neutrality Rules in US

There could soon be a major change in what Americans see on the internet after federal regulators voted Thursday to scrap traditional “net neutrality” rules. 

Thursday’s 3-2 vote by the Federal Communications Commission went along party lines, with Republican members voting to end the regulations and Democrats dissenting.

Individual states will also be barred from enacting their own rules governing the internet.

Net neutrality has been the norm since the internet was created more than 30 years ago. The FCC under former President Barack Obama formalized net neutrality rules in 2015.

The idea of net neutrality is for giant internet providers to treat all content equally. The Obama-era rules prevented them from giving preferential treatment to their own services and blocking and slowing down content from rivals.

Consumer groups and internet companies like net neutrality.

But FCC Chairman Ajit Pai, who was appointed by President Donald Trump, said the internet needs what he calls a “light touch” instead of what he believes is unnecessary government regulation.

WATCH: What is ‘net neutrality’?

“Prior to 2015, before these regulations were imposed, we had a free and open internet,” Pai told NBC ahead of the vote. “That is the future as well under a light touch, market-based approach. Consumers benefit, entrepreneurs benefit. Everybody in the internet economy is better off with a market-based approach.”

But Democratic FCC member Mignon Clyburn said the FCC was “handing the keys to the internet” to a “handful of multibillion-dollar corporations.”

British engineer Tim Berners-Lee, creator of the World Wide Web, said this week that getting rid of net neutrality rules meant internet service providers “will have the power to decide which websites you can access and at what speed each will load. In other words, they’ll be able to decide which companies succeed online, which voices are heard — and which are silenced.”

Officials in several states, including New York and Washington, said they would challenge the new rules in court.

Ken Bredemeier contributed to this report.