From Dorm to Dominance: Growing Pains as Facebook Turns 15

Facebook, trudging through its awkward teenage years, is turning 15 on Monday.

 

Launched in 2004 as “TheFacebook,” the service was originally intended only for Harvard students. It’s now a massive global business that connects some 2.3 billion users. It was born in an era of desktop computers, years before the iPhone, and ran no ads.

 

At the time it was impossible to imagine that someday countries like Russia and Iran would try to use it for sophisticated information operations in order to influence elections around the world.

In 2004, CEO Mark Zuckerberg’s biggest problem may have been almost getting kicked out of Harvard. Zuckerberg’s 2019 worries include the threat of government regulation of the empire he has built and the gnawing possibility that despite its stated lofty goals around connecting people and building community, Facebook may not be good for the world.

 

Today, it’s hard to take a subway in New York or a tram in Budapest, Hungary without overhearing the word “Facebook” or “Instagram” in conversation or seeing their apps open on passenger phones. The social network has transformed the world, for better and for worse, and its effect will be debated for years.

 

Here are some numbers that give an idea of Facebook’s past, present and future:

Number of monthly users as of Dec. 31, 2018: 2.32 billion
Number of daily users as of this date: 1.5 billion
Number of people in the world with internet access: 3.9 billion
Year Facebook reached 1 billion users: 2012
Number of users affected by the Cambridge Analytica data-mining scandal: up to 87 million
2018 revenue: $55 billion
2018 profit: $22 billion
Number of employees in 2018: 35,587
Number of employees in 2004: About 7
Year the iPhone launched: 2007
Year Facebook launched its iPhone app: 2008
Year Facebook bought Instagram: 2012
Money it paid to buy it: $1 billion
Money it paid to buy WhatsApp a year later: $19 billion
Amount Facebook spent lobbying the U.S. government in 2018: $12.6 million
Amount it spent lobbying the U.S. government in 2010: $259,507
Initial public offering stock price on May 18, 2012: $38
Lowest stock price, reached on Sept. 4, 2012: $17.55
Highest stock price, reached on July 25, 2018: $218.62
Market value Facebook lost the next day , a stock market record: $119 billion
Kuwait's GDP: $120 billion
Mark Zuckerberg's net worth as of Friday: $62.4 billion
Date he said the idea that fake news on Facebook influenced elections was "pretty crazy": Nov. 10, 2016
Date he wrote on Facebook he regrets saying that: Sept. 27, 2017
Number of hours Zuckerberg testified before Congress in April 2018 on election interference, privacy and other issues: 10
Number of followers he has on Facebook: 119 million
Number of kids he has: 2 

Sources: Facebook, International Telecommunications Union, Forbes, FactSet, lobbying disclosure forms

Report: Huawei CFO May Fight Extradition by Claiming US Political Motive

Huawei executive Meng Wanzhou, who was arrested in Canada and faces possible extradition to the United States, is exploring a defense that claims U.S. charges against her are politically motivated, the Globe and Mail newspaper reported on Monday.

Meng, the chief financial officer of China’s Huawei Technologies Co. Ltd., is the central figure in a high-stakes dispute between the United States and China. Canada arrested Meng in December at the request of the United States and last month she was charged with wire fraud that violated U.S. sanctions on Iran.

“The political overlay of this case is remarkable,” Richard Peck, lead counsel for Meng, told the Toronto newspaper in a telephone interview.

“That’s probably the one thing that sets it apart from any other extradition case I’ve ever seen. It’s got this cloud of politicization hanging over it,” Peck added.

The office of Canadian Justice Minister David Lametti and Peck did not immediately respond to requests for comment. A Huawei spokesman declined comment.

In December, U.S. President Donald Trump said in a Reuters interview he would intervene in the Justice Department’s case against Meng if it would serve national security interests or help close a trade deal with China.

Canada fired John McCallum, its ambassador to China, in January after he said Meng could make a strong argument against being sent to the United States.

“He [Mr. McCallum] mentions some of the potential defenses – and certainly, I think any person that knows this area would see the potential for those defenses arising,” Peck told the newspaper.

Meng’s lawyers are also planning to challenge whether her alleged conduct would be deemed criminal under Canadian law, the Globe and Mail said.

Tech Women in Silicon Valley Likely to Be Foreign-Born

Pushpa Ithal may not fit the stereotype of the typical Silicon Valley CEO — she’s female, foreign-born, and a mother.

Nevertheless, Ithal is an entrepreneur, living the Silicon Valley dream of running her own startup.

Like her, many foreign-born tech women are finding a place in the Valley — as tech companies have become more and more dependent on foreign-born workers to create their products and services.

Silicon Valley, the global center for high-tech innovation, could be renamed “Immigrant Valley.” When it comes to technical talent, the engine of Silicon Valley is fueled by foreign-born workers, many of whom are from humble roots. And having worked hard to get here, many have ambitions beyond their day jobs.

One of them is Ithal.

On Sundays, she and her two children, ages 5 and 10, pick out the clothes the kids will wear the coming week. Each outfit is placed on a labeled hanger. Then she does the same with the week’s snacks.

“So there are no surprises for the kids,” Ithal said.

Being organized is one of Ithal’s strategies for juggling parenting and running her own startup. And while that juggle is commonplace in Silicon Valley, Ithal is part of a distinct club — foreign-born women in tech. 

Hailing from countries such as India and China, these women make up the majority of all women in certain Silicon Valley fields and are often the only females on male-dominated teams in tech companies. 

Their uniqueness does not stop there. Foreign-born women in tech are more likely to be married and have children than their U.S.-born female coworkers.

​Immigrant Valley

Born in Bangalore, India, Ithal has worked for big tech companies and startups. Her husband, also from India, has built successful startups. Starting her own firm, however, was a leap.

“I came here all the way, let’s risk it,” recalled Ithal, founder and CEO of a company called MarketBeam, which is an AI-driven social marketing company.

More than 60 percent of tech workers in Santa Clara and San Mateo counties, home to Google, Facebook, LinkedIn and other U.S. tech firms, are immigrants, according to the Silicon Valley Institute of Regional Studies. Immigrants work at all levels of the industry. Many are executives, company founders and venture capitalists.

But foreign-born women stand out. In an industry where women make up about 20 percent of the technical workforce, many of these jobs are filled by foreign-born women.

Technical roles

Nearly three-quarters of all women in their prime working year and in technical occupations in Silicon Valley are foreign-born, according to the institute. In computers and mathematics, foreign-born women make up nearly 80 percent of the female workforce.

The numbers surprised Rachel Massaro, vice president of Joint Venture Silicon Valley and senior researcher at the institute. It’s her job to contribute to an annual index of Silicon Valley that looks at housing, transportation and population.

“I double-checked, triple-checked the number just to make sure it was even real,” Massaro said.

Many things contribute to foreign-born women dominating tech — the dearth of women seeking a technical education in the United States, and an emphasis on tech education for girls in other countries, with many seeing technical skills as a path to financial independence and possibly a work visa in the U.S.

There are also stereotypes of what women can and should do with their lives both in the U.S. and overseas.

​Working and raising children

Looking more closely at these women, Massaro found a few other surprises — 71 percent of foreign-born female tech workers ages 25-44 are married, compared to 39 percent of native-born female tech workers.

And they are more likely to be mothers — 44 percent have children, compared to 27 percent of U.S.-born female workers.

One of those women is Lingling Shi, who was born in China. She saw studying computer science as her ticket.

“Computer science, for most of us, it’s easier to apply for a green card,” she said. “It’s not my main interest, I’ll be honest.”

But Shi has succeeded in each of her jobs — she brushes up on any new technical areas online in the evenings — and is now vice president of digital banking technology at East West Bank. With her husband, who is also from China and in tech, she is raising her son.

“I guess for Chinese, the family building is most important thing,” she said.

No amount of career success would fulfill her parents’ desire for grandchildren. The message from family is clear, Shi said — “Oh, you are VP of Engineering now, but you don’t have a kid?”

Many women from India and China are “under a set of cultural expectations and norms that they will have a family right away — and they will excel in their careers,” said AnnaLee Saxenian, dean of the UC Berkeley School of Information, who has written about immigrants in tech.

“These women are really kind of super women in the tasks that they take on,” she added.

As Silicon Valley looks to bring more women into the technical workforce, these women provide a model of how to thrive.

Check Your Compass: Magnetic North Pole Is on Move

True north isn’t quite where it used to be.

Earth’s north magnetic pole has been drifting so fast in the last few decades that scientists that past estimates are no longer accurate enough for precise navigation. On Monday, they released an update of where true north really was, nearly a year ahead of schedule.

The magnetic north pole is wandering about 34 miles (55 kilometers) a year. It crossed the international date line in 2017, and is leaving the Canadian Arctic on its way to Siberia.

The constant shift is a problem for compasses in smartphones and some consumer electronics. Airplanes and boats also rely on magnetic north, usually as backup navigation, said University of Colorado geophysicist Arnaud Chulliat, lead author of the newly issued World Magnetic Model. GPS isn’t affected because it’s satellite-based.

Magnetic north has military uses

The military depends on where magnetic north is for navigation and parachute drops, while NASA, the Federal Aviation Administration and U.S. Forest Service also use it. Airport runway names are based on their direction toward magnetic north and their names change when the poles moved. For example, the airport in Fairbanks, Alaska, renamed a runway 1L-19R to 2L-20R in 2009.

The U.S. National Oceanic and Atmospheric Administration and United Kingdom tend to update the location of the magnetic north pole every five years in December, but this update came early because of the pole’s faster movement.

The movement of the magnetic north pole “is pretty fast,” Chulliat said. 

Pole’s pace has increased

Since 1831 when it was first measured in the Canadian Arctic it has moved about 1,400 miles (2,300 kilometers) toward Siberia. Its speed jumped from about 9 mph (15 kph) to 34 mph (55 kph) since 2000. 

The reason is turbulence in Earth’s liquid outer core. There is a hot liquid ocean of iron and nickel in the planet’s core where the motion generates an electric field, said University of Maryland geophysicist Daniel Lathrop, who wasn’t part of the team monitoring the magnetic north pole.

“It has changes akin to weather,” Lathrop said. “We might just call it magnetic weather.”

The magnetic south pole is moving far slower than the north. 

In general Earth’s magnetic field is getting weaker, leading scientists to say that it will eventually flip, where north and south pole changes polarity, like a bar magnet flipping over. It has happened numerous times in Earth’s past, but not in the last 780,000 years. 

“It’s not a question of if it’s going to reverse, the question is when it’s going to reverse,” Lathrop said.

Flip will take time

When it reverses, it won’t be like a coin flip, but take 1,000 or more years, experts said. 

Lathrop sees a flip coming sooner rather than later because of the weakened magnetic field and an area over the South Atlantic has already reversed beneath Earth’s surface.

That could bother some birds that use magnetic fields to navigate. And an overall weakening of the magnetic field isn’t good for people and especially satellites and astronauts. The magnetic field shields Earth from some dangerous radiation, Lathrop said.

Report: Norway’s Arctic Islands at Risk of ‘Devastating’ Warming

Arctic islands north of Norway are warming faster than almost anywhere on Earth and more avalanches, rain and mud may cause “devastating” changes by 2100, a Norwegian report said on Monday.

The thaw on the remote Svalbard islands, home to 2,300 people and where the main village of Longyearbyen is 1,300 kms (800 miles) from the North Pole, highlights risks in other parts of the Arctic from Alaska to Siberia.

Average temperatures on Svalbard have leapt between three and five degrees Celsius (5.4-9.0 Fahrenheit) since the early 1970s and could rise by a total of 10C (18F) by 2100 if world greenhouse gas emissions keep climbing, the study said.

Almost 200 governments promised in the 2015 Paris climate agreement to limit a rise in average global temperatures to “well below” 2C (3.6F) above pre-industrial times by 2100. Worldwide, temperatures are up about 1C (1.8F).

On Svalbard, the envisaged rise in temperatures would thaw the frozen ground underpinning many buildings, roads and airports, cause more avalanches, “slushflows” and landslides, melt glaciers and threaten wildlife such as polar bears and seals that rely on sea ice to hunt.

“A 10 degree warming, with the implications for Arctic nature, ice-dependent species, will be devastating,” Climate and Environment Minister Ola Elvestuen told Reuters.

Norway will have to increase investment to relocate buildings from avalanche paths and drill deeper infrastructure foundations as permafrost thaws, the report said.

Two people died in 2015 when an avalanche destroyed 10 houses in Longyearbyen.

Many other parts of the Arctic, especially its islands, are also warming far quicker than the world average as the retreat of snow and sea ice exposes darker water and ground that soaks up ever more of the sun’s heat.

Temperatures on Svalbard would stay around current levels only if governments make unprecedented cuts in global emissions, the report said. Not enough

“No one is doing enough” to limit greenhouse gas emissions, Elvestuen said of government actions. “We have to do more … The use of oil and gas has to go down.” Norway is western Europe’s biggest oil and gas exporter.

Inger Hanssen-Bauer, head of the Norwegian Centre for Climate Services, which produced the report, said the findings were a warning for the rest of the Arctic.

“The main message is that these changes are happening so fast,” she told Reuters.

Ketil Isaksen, a lead author at the Norwegian Meteorological Institute, urged researchers to pay more attention to landslides as the permafrost melts. “There is now a lot of focus on snow avalanches, but landslides in summer should be taken more into account,” he said.

Social Media Giants Blamed for British Teenage Suicides

“She had so much to offer.”

Ian Russell is speaking of his 14-year-old daughter Molly, the youngest of three sisters, who committed suicide in 2017, leaving a note that read, “I am sorry. I did this because of me.”

After Molly’s suicide, her parents examined the teenager’s social media use and discovered she was interacting with other teenage users caught in the grip of depression and who were suicidal and self-harming. The users were almost grooming themselves and goading each other to take drastic action.

“I have no doubt that Instagram helped kill my daughter,” Molly’s father told the BBC in an explosive interview that drew a public apology from U.S. social media giant Facebook, owner of the photo sharing site Instagram, as well as a promise to do more to tackle suicide and self-harming posts.

“We’re going to look at this from top to bottom and change everything we’re doing, if necessary, to get this right,” Nick Clegg, a former British deputy prime minister and now Facebook’s head of global affairs, said in a statement.

The promise, though, has done little to tamp down criticism.

In the past eight years, the suicide rate among British teenagers has nearly doubled. Last year around 200 schoolchildren killed themselves. Tech giants do not bear all of the responsibility for the deaths, their critics say, but they are abetting them by not doing enough to help stop them.

Amid growing public uproar, the British government has said next month, it will unveil groundbreaking legislation designed to enforce a legal duty of care on such firms.

“Social media companies clearly need to do more to ensure they are not promoting harmful content to vulnerable people,” said a government official.

The British plan to order social media providers to protect users against material that promotes suicide methods and self-harm will be watched closely by policymakers in other European countries, who are also grappling with how to cope with malign consequences of social media use.

Germany is cracking down on what Facebook does with users’ personal data. In France, the government is “embedding” regulators inside social media companies to investigate how they combat online hate speech.

Since January, Facebook, in particular, has been targeted for criticism in the United States. The company operates a unique suite of apps, but U.S. critics say the social media giant is too casual about social responsibilities.

U.S. lawmakers accuse Facebook of doing too little to stop Russian meddling in the 2016 presidential race, and along with YouTube and Twitter, it has been attacked for being slow in taking down jihadist posts and videos.

Laying the groundwork for the British measure, the country’s chief medical officer will announce this week that Facebook, Instagram, Snapchat and WhatsApp figure as important links in a dangerous chain leading from self-harm to suicide.

Sally Davies will urge parents to be more alert and to limit, as well as monitor, their children’s screen time.

The legislation is likely to be based on recommendations from a British parliamentary committee which wrapped up an inquiry last week and concluded social media use is disrupting young users’ sleep patterns, distorting their body image and leaving them exposed to bullying, grooming and sexting.

The panel said that self-regulation will no longer suffice.

“We must see an independent, statutory regulator established as soon as possible, one which has the full support of the government to take strong and effective actions against companies who do not comply,” the committee said.

Clegg said some of the criticism is over-wrought. In a television interview last week, he said the company had “saved the lives” of thousands of potentially suicidal users by flagging them to authorities.

Recent academic studies, including one by psychologists at Oxford University, suggest that social media use has no major adverse impact on mental health. The Oxford University study concluded that “wearing glasses has more negative effect on adolescent mental health.”

But the academic studies are not assuaging critics, and some lawmakers cast doubt on their overall accuracy, saying they do not look closely enough on teenage girls, who seem the most vulnerable.

“Worryingly, social media companies — who have a clear responsibility toward particularly young users — seem to be in no rush to share vital data with academics that could help tackle the very real harms our young people face in the virtual world,”  said lawmaker Norman Lamb.

More than 30 British families have complained that social media giants have blocked or hindered their access to social media data after their children’s suicides. A requirement on firms to share data which can help identify and protect teenagers at risk will likely be among the new legal requirements the government unveils, officials said.

 

 

Africa’s Growing Economies, Youth Create E-Waste Challenge

A new report says the world produces at least 50 million tons of electronic waste each year, and that number is expected to double 30 years from now. The impact of all that electronic junk is especially felt in Africa.

Mobile phones are increasingly common gadgets across Africa. You can get a phone for as little as $10 in the streets of Nairobi.

Most Kenyans, however, don’t know how to safely dispose of their old phones when they get a new one. 

“I have a spoiled phone. I have kept at home maybe for future use or dispose it one day…mostly if it’s not working, I can decide to throw it away. It depends on how it has spoiled. I throw it away,” Winnie says.

It’s this kind of behavior that has environmentalists concerned, as many phones, once thrown away, end up in rivers and oceans.

The U.N. Environmental Program estimates that 50 million tons of electronic waste was produced in 2018. It says that number could climb to 120 million tons by the year 2050.

One half of so-called e-waste comprises personal devices like computers, smartphones and tablets. 

Simon Omengo uses unorthodox means to dispose of his electronic gadgets.

“Since its motherboard failed then automatically I disposed it. I threw it in the toilet. I burn it, I break into pieces because it’s useless to me now,” Omengo says.

Winnie says the government needs to come up with ways to safely dispose of old devices.

“Our government (needs) to come up with a place where we can take all the gadgets, especially the phones which are spoiled. We go and dispose them there and they will know how they will dispose them, rather than just scattering around because some of the people they just throw them in the dust pin and its hazard to the environment,” Winnie says.

Experts say electronic devices are becoming complicated to repair and some don’t last long.

With more devices being thrown away, one Kenya-based group, Enviroserve, is trying to change how Africa’s e-waste is managed by stripping down re-useable metals and plastics from phones. Some materials remain in Kenya, while other parts like batteries are shipped abroad. 

Shaun Mumford, the head of the company, says old phones have been simply dumped in Kenya for years. 

“It wasn’t done in a way that is useful, and also it was staying here. So what we are able to do instead of Africa being the dumping ground, which historically been the case, we are able to deal with what makes sense here and send back out of the country things that need to be dealt with properly,” Mumford says.

More than half the population is under the age of 30 and the demand for the latest electronics – and dumping the old ones – is only growing. 

Nissan Cancels Plans to Make SUV in UK

Nissan announced Sunday it has cancelled plans to make its X-Trail SUV in the UK — a sharp blow to British Prime Minister Theresa May, who fought to have the model built in northern England as she sought to shore up confidence in the British economy after it leaves the European Union.

Nissan said it will consolidate production of the next generation X-Trail at its plant in Kyushu, Japan, where the model is currently produced, allowing the company to reduce investment costs in the early stages of the project.

That reverses a decision in late 2016 to build the SUV at Nissan’s Sunderland plant in northern England, which employs 7,000 workers. That plant will continue to make Nissan’s Juke and Qashqai models. The announcement Sunday made no mention of any layoffs relating to the X-Trail SUV decision.

“While we have taken this decision for business reasons, the continued uncertainty around the UK’s future relationship with the EU is not helping companies like ours to plan for the future,” Nissan Europe Chairman Gianluca de Ficchy said in a statement.

Less than two months before Britain is scheduled to leave the European Union on March 29, Britain still doesn’t have an agreement on what will replace 45 years of frictionless trade. This has caused an enormous amount of concern among businesses in Britain, which fear the country is going to crash out of the vast EU trade bloc without a divorce deal, a scenario economists predict would hurt the U.K. economy.

The Nissan decision, first reported by Sky News, is a major setback for May’s Conservative government, which had pointed to Nissan’s 2016 announcement that Sunderland would make the SUV — months after the country’s Brexit referendum — as proof that major manufacturers still had confidence in Britain’s economic future.

Nissan’s announced its plans to build the X-Trail and Qashqai models in Sunderland after the government sent a letter to company officials offering undisclosed reassurances about its ability to compete in the future.

British politicians have sharply criticized May’s Brexit deal and voted it down in Parliament.

May’s government has refused to rule out a no-deal Brexit, saying the threat strengthens her hand with EU negotiators. Parliament voted last week to give May more time to try to iron out a compromise with the bloc.

Nissan’s change of heart comes just days after Britain’s carmakers issued a stark assessment about Brexit’s impact on the industry, warning that their exports are at risk if the U.K. leaves the EU without an agreement.

Investment in the industry fell 46 percent last year and new car production dropped 9.1 percent to 1.52 million vehicles, in part because of concerns over Brexit, the Society of Motor Manufacturing said.

The group’s chief executive, Mike Hawes, described the threat of a no-deal Brexit as “catastrophic.”

He says the drop in investment is only a foreshadowing of what could happen if the U.K. leaves the EU on March 29 without a deal.

“With fewer than 60 days before we leave the EU and the risk of crashing out without a deal looking increasingly real, UK Automotive is on red alert,” Hawes said Thursday. “Brexit uncertainty has already done enormous damage to output, investment and jobs.”

 

Start a Start-up: University in Texas Helps Students Become Entrepreneurs

In December 2018, Apple announced its plans to build a new campus in Austin. Texas is rapidly becoming more and more attractive for tech companies and is often called a second Silicon Valley, thanks to affordable housing, highly qualified workers and the abundance of universities that train IT professionals. Mariia Prus traveled to Dallas to see how universities help their students become entrepreneurs. Joy Wagner has her report.

Scientists Enlist Incredibly Tiny Allies in Cancer Fight

Researchers and doctors are using incredibly tiny particles — fluorescent nanoparticles — in a quest for new ways to fight cancer. Some nanoparticles, just billionths of a meter across, are engineered to carry special dye that glows when it hits cancer cells. Oregon State University scientists say this makes it easier for surgeons to find and remove tumors. Iryna Matviichuk visited Portland and learned the new procedure is closer to testing in human patients. Anna Rice narrates her report.

Millions of Cancer Patients Suffer Needlessly From Pain

In advance of World Cancer Day (February 4), the World Health Organization is issuing new cancer pain control guidelines aimed at ending the needless suffering experienced by millions of people afflicted with this illness. 

Cancer is a leading cause of death globally.  The World Health Organization reports there are more than 18 million new cases every year and 9.6 million deaths, most in low-or middle-income countries.

Great advances have been made in the treatment of cancer, but measures to relieve the horrific pain experienced by patients lag woefully behind.  WHO hopes to remedy this with its new guidance on pain management.

Director of WHO’s Department for the Management of Noncommunicable Diseases, Etienne Krug, says controlling pain should be an essential part of cancer treatment.  Yet, he says pain is very often neglected as part of that treatment, a situation he considers unacceptable.

“Nobody, cancer patients or not cancer patients should live or die in pain in the 21st century.  We have the knowledge of how to treat pain,” said Krug. “We have the medicines of how to address it.  It is a question of making sure everybody has that knowledge and everybody has access to the necessary treatment.” 

Krug says the situation is most acute in the poorer countries because pain management systems tend not to be in place.  But he notes even in the rich countries people are still living and dying in pain.

WHO says opioid painkillers like oral morphine are an essential treatment for moderate to severe cancer pain.  But WHO Noncommunicable Coordinator, Cheriana Varghese says some governments have enacted regulatory and legal barriers against their use in reaction to the global scare of opioid and morphine addiction.

“When a government of a country wants to introduce opioids, there is always this looming danger that this is going to get out of hand,” Varghese said. “And, so the governments are more conservative because of this.”

Varghese says there are sufficient safeguards against the abuse of opioids and morphine.   He says these painkillers should be given only by trained health care providers, doctors and nurses.  He adds oral preparation should be given whenever possible to prevent addiction.

 

End of an Era: China-Silicon Valley Relationship Chills

The trade dispute between the U.S. and China is disrupting Silicon Valley.

What had been a steady flow of Chinese money into tech firms appears to be slowing. Investors are concerned about the “headline risk” of doing business with Chinese investors.

And in some cases, U.S. startups are shunning Chinese investment.

These changes come after years of investment and collaboration between China and Silicon Valley. But the trade dispute, coupled with U.S. policymakers’ concerns about Chinese investments in sensitive technologies, such as artificial intelligence, have increased scrutiny of cross border deals on all sides.

A drop in investment

In 2018, Chinese firms invested more than $2 billion in U.S. technology firms, but that was a drop of nearly 80 percent from the year before, according to a Forbes report citing S&P Global Market Intelligence.

While Chinese investors took stakes in roughly the same number of U.S. tech deals — 80 compared to 89 in 2017 — that was off from the peak in 2016 when Chinese investors were part of 107 deals. Among the biggest recipients of Chinese investment in 2018 were Farasis Energy, a battery maker, and Epic Games, a gaming company, according to the Rhodium Group.

While deals continue to come together in 2019, the recent indictment of a Huawei executive has added to a new chill between the two regions, according to observers in Silicon Valley.

​A technology war

In China, the battle is seen as less about Huawei and its alleged wrongdoing and more as a proxy for a “technology war” between countries over technological supremacy.

“The Huawei incident seems like an action against an individual corporation, but it is actually bigger than this,” said Hu Xingdou, a Beijing-based scholar. “This is about one state’s technology war against another state, about which one will occupy the technology high ground in the future.”

One recent change in the U.S. has been the expansion of a government program that reviews foreign investment in areas deemed sensitive.

Despite the expanded U.S. regulatory reviews, Chinese investments in U.S. tech firms are mostly getting through, said Chuck Comey, a partner at Morrison Foerster, a law firm.

As for Chinese companies buying or merging with U.S. tech ones? 

“It ain’t happening,” he said.

​Saying ‘no’ to Chinese investment

The increased tensions have given investors — and even some potential recipients of investment — some pause. One U.S. company, which had accepted Chinese investment in the past, told Reuters that it declined investment from Chinese investors in its most recent round.

“We decided for optical reasons it just wouldn’t make sense to expose ourselves further to investors coming from a country where there is now so much by way of trade tensions and IP tensions,” said Carson Kahn, CEO of Volley, an artificial intelligence training firm.

At a recent event in Silicon Valley about China and U.S. investments, speakers on a panel discussed how the geopolitical tensions affected their business. While several predicted that in the long run, the current friction between the two countries will have a minimal effect on cross-border business between China and Silicon Valley, there was a sense that an era has ended.

“We’ve kind of taken for granted,” said Kyle Lui, a partner at DCM, a global venture capital firm, “that the prior decade plus there’s been lots of strong collaboration between the U.S. and China.”

Mexican President’s Flub Becomes Wage Win at Border Factories

A mass strike at 48 “maquiladora,” or manufacturer, plants in Mexico’s border city of Matamoros is heading for victory, bringing pay raises for laborers who make less than $1 an hour, or about 100 pesos a day, assembling auto components and TV sets for export to the United States, and causing jitters for the business community.

The labor battle broke out in mid-January after President Andres Manuel Lopez Obrador decreed a doubling of the minimum wage in Mexico’s border zones, apparently unaware that some union contracts at the maquiladora plants are indexed to minimum wage increases. The decree sparked a wave of walkouts involving about 25,000 workers.

The maquiladoras claim the strikes threaten the very existence of their industry, which has attracted more than 5,000 mostly foreign-owned plants and 2 million jobs by paying very low wages. Union leaders say those worries are overblown, noting that workers at the border plants still earn far less than their counterparts in the United States.

Less than a week after the strike broke out, a majority of the export plants in Matamoros — 29 companies with a total of about 34 factories — have agreed to the union demands, a rare victory that owes a lot to something the president probably didn’t intend to happen.

​Minimum wage and labor contracts

After taking office Dec. 1, Lopez Obrador doubled the minimum wage in communities along the U.S. border to 176.20 pesos a day, the equivalent of $9.28 at current exchange rates. With maquiladora pay averaging about 146 pesos ($7.70) a day, the Matamoras workers went on strike to demand the 20 percent raise be applied to everybody, even those making above the minimum, and a one-time bonus of about $1,685.

“Perhaps he didn’t take into account what was in the labor contracts,” said Javier Zuniga, an activist with the Miners’ Union who has helped coordinate the strike. “The president acted in good faith, but he didn’t measure the impact that it was going to have on union contracts, and the workers came out winners for once.”

Since the 1990s, many companies in Matamoros, which is across the border from Brownsville, Texas, signed contracts indexed to minimum wage hikes. It was a way to keep wages down, given that in most previous years, annual increases were about equal to the inflation rate.

One such contract signed in March 2018 at the Kongsberg Interior Systems plant, which makes automotive cables, stipulates that “the company will reach an agreement with the union to increase wages by the same percent that minimum wages are increased.”

In addition, many companies’ annual bonuses are calculated by multiplying minimum wage increases by 365, a figure that in past years usually amounted to only about $100.

A real union

“They (the government) never thought there was a real union, or that there were (contract) clauses like that,” said Cirila Quintero, a sociology professor at Colegio de la Frontera Norte who has studied the Matamoros union that has represented maquiladora workers for more than a quarter century.

The Industrial Workers and Laborers’ Union of Matamoros, which was founded initially in 1932 to represent cotton workers, is unusual in Mexico because it has won gains for its members that don’t exist in contracts anywhere else in the country. Far more common are pro-company “ghost” unions that sign contracts without consulting the workers they purportedly represent.

Lopez Obrador has been wary of antagonizing the business sector, and he appears to be an unwilling hero in opening the floodgates of labor discontent. Both Quintero and Luis Aguirre, the head of Mexico’s association of maquiladora companies, said federal officials actively discouraged the Matamoros union from seeking the pay increases. The Labor Department refused to confirm that, saying only that it sent mediators to Matamoros to try to defuse the dispute.

“This will give rise to unemployment and cause at least 15 of these companies to flee,” Aguirre warned. His group, the Maquiladora and Export Manufacturers Industry, said in a statement that the wage demands may spread to other areas along the border “where the industry is present and will project a very bad image for foreign direct investment.”

Still, most of the Matamoros companies have quietly agreed to the workers’ demands, and they would be hard-pressed to find any place near the U.S. market where they could pay less than $1 an hour.

Wage demands likely to spread 

Other Mexican border cities with assembly plants, like Tijuana and Ciudad Juarez, “don’t have this point” in their contracts, Quintero noted. “But what is going to happen is that workers are going to demand their raises to 176 pesos,” the new minimum, and probably across the board, he said.

Lopez Obrador has come under pressure from the business sector to rein in wage demands, but he is unlikely to do so.

The only thing he has promised Mexico’s labor movement is to guarantee union freedom and stay out of unions’ internal affairs. For workers, that is a big step forward in a country where the labor movement has been smothered for decades by old-guard union bosses and pro-company “protection” contracts often signed before factories even open.

Tech Firms, States Spar With US Government Over Net Neutrality

Tech companies and nearly two dozen U.S. states clashed with the government in federal court Friday over the repeal of net neutrality, a set of Obama-era rules aimed at preventing big internet providers from discriminating against certain technology and services. 

 

Judges challenged arguments made by both sides in the face-off in an appeals court in Washington.  

  

Lawyers for the states and the companies tried to persuade the three-judge panel to restore the net neutrality regime, set in 2015 but repealed in December 2017 at the direction of a regulator appointed by President Donald Trump. The companies challenging the FCC action include Mozilla, developer of the Firefox web browser, and Vimeo, a video-sharing site. 

 

The net neutrality rules had banned cable, wireless and other broadband providers from blocking or slowing down websites and apps of their choosing, or charging Netflix and other video services extra to reach viewers faster. 

 

The practice of slowing down transmission is known as “throttling.” 

 

The action by the Federal Communications Commission rolling back the neutrality rules “is a stab in the heart of the Communications Act,” said attorney Pantelis Michalopoulos, referring to the Depression-era law that established the FCC. 

Information vs. telecom service

 

The FCC wrongly classified the internet as an information service rather than a telecom service, using that as a rationale for not cracking down on misconduct by big internet providers, Michalopoulos said, who represents Mozilla and the other companies in the case.  

  

Government lawyers, as well as big internet providers such as AT&T, Verizon and Comcast, argued to keep net neutrality repealed. 

 

Thomas Johnson, the FCC’s general counsel, said the agency’s “light-touch” regulatory scheme, requiring the internet providers to disclose their practices and operations, provides adequate safeguards. The internet — used more extensively to transmit information — is different both in nature and function from phone service, Johnson maintained. It therefore should be regulated as an information service and not subject to the utility-style oversight of phone companies, he said.   

  

The politically charged issue has emerged from its origins as an engineering challenge to become an anti-monopoly rallying point and even a focus for “resistance” to the Trump administration.  

  

Once Trump took office, net neutrality became one of his first targets as part of broader government deregulation. The FCC chairman he appointed, Ajit Pai, made rolling back net neutrality a top priority. 

 

On the other side, support for net neutrality comes from many of the same people who also are critical of the data-vacuuming tech giants that benefit from it. Politicians have glommed on to the cause to appear consumer-friendly. 

 

The Democratic takeover of the House in November’s midterm elections could revive efforts to enshrine net neutrality in federal law, though Trump likely would veto any such attempts. 

 

At the hearing in the U.S. Appeals Court for the District of Columbia, Judge Stephen Williams questioned Michalopoulos’s assertions that the FCC had wrongly classified the internet as an information service. Telephone services, too, offer an array of customer products, he said. On the question of broadband providers charging premiums for faster service, Williams said a large majority of consumers prefer cheaper, lower-speed options, citing polls. 

Judges’ views

 

The judges are weighing whether the FCC had the authority to nix the 2015 rules and get out of the business of enforcing net neutrality. It appeared that Williams was sympathetic to the FCC’s arguments, while Judge Patricia Millett raised possible legal avenues for the companies and states suing the agency, and Judge Robert Wilkins was the swing vote, said Doug Brake, director of broadband and spectrum policy for the Information Technology and Innovation Foundation, a Washington think tank.  

  

The judges could decide to can the repeal or send it back to the FCC for a redo if they have specific objections.  

  

“Today we fought for an open and free internet that puts consumers first,” Mozilla Chief Operating Officer Denelle Dixon said after the hearing. “We believe the FCC needs to follow the rules like everyone else.”

Trump Health Chief Asks Congress to Pass Drug Discount Plan

The Trump administration’s top health official asked Congress on Friday to pass its new prescription drug discount plan and provide it to all patients, not just those covered by government programs like Medicare.

The plan would take now-hidden rebates among industry players like drug companies and insurers and channel them directly to consumers when they go to pay for their medications. 

Patients with high drug copays stand to benefit from the proposal, while people who take no prescription drugs, or who rely on generics mainly, would probably pay somewhat more, since premiums are expected to rise.

A day after unveiling the plan as a proposed regulation, Health and Human Services Secretary Alex Azar raised the stakes by calling on Congress to make it law and broaden it to include people covered by employer health insurance, not just Medicare and Medicaid beneficiaries.

“Congress has an opportunity to follow through on their calls for transparency … by passing our proposal into law immediately and extending it into the commercial drug market,” Azar said in a speech at the Bipartisan Policy Center think tank.

Trump under pressure

Ahead of next week’s State of the Union speech, President Donald Trump is under political pressure to show results for his promise to slash prescription drug costs. Data show that prices for brand-name drugs have continued to rise, though at a somewhat slower pace. Polls show consumers across the political spectrum want government action.

Democrats say the administration’s plan doesn’t go far enough because it still leaves drug companies free to set high list prices. They say drug pricing is like a black box, and it’s impossible to tell if prices reflect actual costs or if companies are charging what they think the market will bear.

House Speaker Nancy Pelosi, D-Calif., says she’s also worried that the plan would raise premiums. HHS acknowledges Medicare prescription premiums would go up $3 to $5 a month.

Proposal draws interest

Nonetheless, the administration’s proposal appears to be in the mix as Congress gears up to craft legislation addressing prescription drug costs. Friday evening, the Republican chairman of the Senate Health, Education, Labor and Pensions Committee, expressed his support. Rebates “ought to lower costs to patients, and this is a good first step towards that goal,” Sen. Lamar Alexander, R-Tenn., said in a statement.

The complex plan would work by doing away with an exemption from federal anti-kickback rules that currently allows drugmakers, insurers and middlemen called pharmacy benefit managers to negotiate rebates among themselves.

Drug companies pay rebates to make sure their medications are covered by insurance plans that are the intermediaries between them and patients. HHS says hidden rebates can amount to up to 30 percent of a drug’s list price. Insurers say they use the money from rebates to hold down premiums for all consumers.

Under the plan, the current anti-kickback exemption for industry rebates would be replaced with a new one for discounts offered directly to consumers. 

Azar said the idea would reshape the drug pricing system, shifting it away from hidden rebates to upfront discounts, creating pressure on drugmakers to keep prices down. The proposal was co-authored with the HHS inspector general’s office.

Potential consequences

Experts say it will take time to sort out all the potential consequences.

Peter Bach, director of the Center for Health Policy and Outcomes at New York’s Memorial Sloan Kettering Cancer Center, said the current system of rebates harms patients who take costly drugs with high copays. 

Think people with cancer, patients with intractable illnesses such as multiple sclerosis or rheumatoid arthritis, and those who take brand-name medicines with no generic competition. Patients’ cost sharing is often based on list prices, not the cost of the drug after rebates.

“Simply put, those on no medications at all will just see their premiums go up and see no savings because they don’t take any medicine,” said Bach. “Those on generics only may be essentially in this category (as well). 

“But those on expensive medications … they will see savings in total,” he added. More than half a million people filled at least $50,000 in prescriptions in 2014, according to an Express Scripts report. 

Insurers and pharmacy benefit managers like Express Scripts and CVS oppose the administration plan, saying it will undercut their ability to bargain with drugmakers for lower prices. 

Companies please with plan

Drugmakers have applauded the administration’s action. 

Consumers are worried about prices for brand-name drugs, particularly new medications that promise breakthrough results. Generics account for nearly 90 percent of prescriptions filled, but brand-name drugs account for more than 70 percent of the spending.

Azar contends that under the current system everybody but the patient benefits from high prices. A high list price makes room for bigger negotiated rebates for insurers and middlemen. And drugmakers then merely build that expectation into their prices.

Before joining the Trump administration, Azar was a top executive for drugmaker Eli Lilly. That led to criticism that he would be an industry pawn. But the drugmakers vehemently disagree with some of his other ideas, including an experiment using lower international drug prices to cut some Medicare costs.

Why Wealthy Americans Are Renting Instead of Buying

Although they can afford to purchase a home, more well-to-do Americans are choosing to rent instead.

The number of U.S. households earning at least $150,000 annually that chose to rent rather than buy skyrocketed 175 percent between 2007 and 2017, according to an analysis by apartment search website RentCafe, which used data from the Census Bureau to reach its conclusions.

This new breed of renters challenges long-held assumptions that Americans rent a place to live primarily because they can’t afford to buy a home.

“Lifestyle plays an important part in their decision to rent,” study author Alexandra Ciuntu told VOA via email. “Renting in multiple cities at once has its perks, and so does changing one trendy location after another.”

Business and technology hubs like San Francisco and Seattle have the highest numbers of wealthy renters.

“Given the escalating house prices, it seems like a verifiable better decision to go with renting for longer,” Ciuntu said. “Given that in San Francisco, for example, $200,000 buys you just 260 square feet, it’s understandable why top-earners give renting a serious try before deciding whether to invest in a property or not.”

In fact, in both San Francisco and New York, wealthy renters outnumber well-to-do buyers. There are more high-earning renters — 250,000 — in New York City that anywhere else in the country.

“Ten years ago we would have associated real estate equity with life stability, whereas the two are not necessarily interrelated nowadays,” Ciuntu said. “Renting proves to be a more flexible option for those enjoying a dynamic and rich lifestyle. From a more millennial standpoint, this is no longer a brief solution before settling down, but rather an attractive world of possibilities.”

However, this rental enthusiasm doesn’t mean folks in the wealthiest brackets are rejecting homeownership, according to Ciuntu. Between 2007 and 2017, Chicago added 9,800 more wealthy owners than high-income renters, Seattle gained 13,400, and Denver added almost 18,000 more well-to do earners than wealthy renters.

WHO Reports Progress in Controlling Ebola in Congo

Six months after the outbreak of Ebola was declared in the Democratic Republic of Congo’s North Kivu province, the World Health Organization is expressing cautious optimism that it is making headway in controlling the spread of the deadly virus.  

Latest figures reported by the WHO show 752 cases of Ebola, including 465 deaths.

WHO Regional Director for Africa, Matshidiso Moeti, says progress in containing the spread of the virus is due to a number of public health measures, including the training of health workers on infection prevention and control, closer engagement with communities, case investigation and contact tracing.  

She says the use of a vaccine and promising new drugs have been a boon to these efforts.

“I feel optimistic,” Moeti said. “I am very clear that we need to continue this work. We need to make sure that in the places where we have made progress, we build on this progress and we do not go back. And, we are being very, very conscious of the fact that we need to invest to improve the preparedness both in the DRC areas that are highest at risk and, most importantly, in the surrounding countries that are at risk.”  

The risk of the virus spreading to countries like Uganda, Rwanda and South Sudan is very high because of the heavy cross-border traffic among the countries, Moeti said. However, she added, surveillance and preparedness activities have been enhanced on both sides of the border.

She says there is extensive monitoring at border crossings and improvements have been made in screening people for the virus. In addition, 2,600 health care workers in Uganda have been vaccinated. Moeti said a similar vaccination campaign began two days ago in South Sudan.

US Researchers Look for Long-Lasting Ebola Vaccine

South Sudan is vaccinating health workers against Ebola in case the virus crosses the border from the Democratic Republic of Congo. Ebola has stricken more than 700 people in the DRC and killed more than 400. The World Health Organization said the death rate is 59 percent. 

Half a world away in Ohio, U.S. researchers are racing to develop a new, long-lasting vaccine against Ebola. At Cincinnati Children’s Hospital Medical Center, Dr. Paul Spearman is leading a clinical trial that tests two experimental Ebola vaccines.

“Researchers are looking for new ways to stop these outbreaks and to treat people who become infected and develop Ebola virus disease. The development of preventive vaccines for Ebola is a top global public health priority,” said Spearman, director of the Division of Infectious Diseases at Cincinnati Children’s and the lead investigator in the trial.

Volunteers first receive one of the vaccines. A week later, they get the other one. Spearman said this one-two shot is promising and could provide rapid protection against Ebola.

These are weakened live-vector vaccines that cannot grow in human cells, but they produce strong immune responses to Ebola virus proteins.

Karnail Singh, Ph.D., also at Cincinnati Children’s, heads the program that tests volunteers’ blood samples. The researchers test the samples collected before the volunteers are injected with the experimental vaccines and again afterward.

Singh said that way, researchers can compare the samples and see if the vaccines provide immunity. The researchers also plan to take blood samples six months after the first two injections. If the vaccine is still effective, they hope to repeat the process six months later. These intensive lab studies and the rapid prime-boost schedule have not been done before in developing a vaccine against Ebola.

In Congo, health workers are using a vaccine developed during the Ebola outbreak in West Africa that raged from 2013 until 2016. It protects the Zaire strain of Ebola circulating in Congo. But there are two other deadly strains of Ebola. Health officials want vaccines that protect against all of them. 

The vaccine being tested at Cincinnati Children’s has not yet been compared to the one being used in Congo, but it may protect against at least one other strain of Ebola. The goal is to produce a vaccine that is safe, effective and long-lasting.

The researchers in Cincinnati hope their work will improve the understanding of how to build immunity to other viruses or bacteria that can cause disease.

Robust Job Gain in January Shows US Economy’s Durability

U.S. employers shrugged off last month’s partial shutdown of the government and engaged in a burst of hiring in January, adding 304,000 jobs, the most in nearly a year.

The healthy gain the government reported Friday illustrated the job market’s resilience nearly a decade into the economic expansion. The U.S. has now added jobs for 100 straight months, the longest such period on record.

The unemployment rate did rise in January to 4 percent from 3.9 percent, the Labor Department said, but mostly for a technical reason: The number of people counted as temporarily unemployed jumped 175,000, with most of that increase consisting of federal workers and contractors affected by the shutdown.

The government on Friday also sharply revised down its estimates of job growth in November and December. Still, hiring has accelerated since last summer, a development that has surprised economists because hiring typically slows when unemployment is so low.

“The overwhelming conclusion from today’s numbers is that the U.S. labor market remained incredibly strong at the start of 2019,” said Leslie Preston, senior economist at TD Economics.

Diane Swonk, chief economist at Grant Thornton, said that many federal workers and contractors likely went out and found part-time work during the 35-day shutdown. The ability of many of them to do so is itself a sign of the job market’s strength, Swonk said.

Last month’s healthy job gain will assuage some concerns that had arisen about the U.S. economy. Global growth is weakening, the Trump administration is engaged in a trade war with China and higher mortgage rates have slowed home sales. Those factors have led many economists to forecast slower growth this year compared with 2018.

Yet strong hiring should boost household incomes, fueling more consumer spending, which would help drive economic growth.

Most sectors of the economy reported solid hiring gains in January. Education and health care added 55,000 jobs, retailers nearly 21,000 and professional and business services, which includes such higher-paying positions as engineers and architects, 30,000. 

Rising pay

The ongoing demand for workers is leading some businesses to offer higher pay to attract and keep staff. Average hourly wages rose 3.2 percent in January from a year earlier. That’s just below the annual gain of 3.3 percent in December, which matched October and November for the fastest increase since April 2009.

Teresa Carroll, an executive at the staffing firm Kelly Services, said her company has explained to many clients that they have to pay more to find the workers they need. Some employers are still reluctant to offer higher pay, which has made it harder for them to find and keep workers, she said.

“They’ve enjoyed two decades of minimal pay growth in general,” she said. “It’s our job to educate our clients about the labor market.”

On a monthly basis, from December to January, wages barely rose, though. That’s likely to keep the Federal Reserve unlikely to raise interest rates in the coming months, economists said. Chairman Jerome Powell said earlier this week that the case for raising the Fed’s benchmark rate had weakened. Many economists and investors took that as a sign that a rate increase is unlikely any time in the coming months.

Swonk cautioned that some quirks likely inflated last month’s job gain. For example, some of the furloughed federal workers and contractors who took part-time jobs during the 35-day government shutdown might have been counted as having two jobs during January. Now that the shutdown has ended, these people will go back to being counted as having just one job beginning in February.

And for most of January, the weather was relatively warm in much of the United States, which likely boosted construction employment. Builders added 52,000 jobs, the most in nearly a year.

The strong job market, though, is encouraging more people who weren’t working to begin looking. The proportion of Americans who either have a job or are seeking one — which had been unusually low since the recession ended a decade ago — reached 63.2 percent in January, the highest level in more than five years.

Jessica Jacumin began a permanent job a month ago as a cook at an assisted living facility in Augusta, Georgia, after working there as a paid intern. Before that, she had been out of work and mostly not looking while she spent 18 months studying culinary arts at Helms College, a career school sponsored by Goodwill Industries.

Though Jacumin, 42, and her husband both have Navy pensions, her new job has provided much-needed income and health insurance. That, in turn, has allowed their family to spend a bit more freely.

“I am right now planning our first family vacation in three years,” she said.

Jacumin, her husband and three children will head to Hilton Head in South Carolina in July.

Impact of shutdown

The partial government shutdown caused 800,000 workers to miss two paychecks. But because these workers will eventually receive back pay, they were counted as employed in the survey of businesses that produces the monthly job gain.

But in a separate survey of households that is used to calculate the unemployment rate, some of these people were counted as temporarily jobless. That’s a key reason why the unemployment rate rose despite the healthy job gain.

Most economists have forecast that the shutdown will likely slow economic growth for the first three months of this year. But some say that even businesses that lost income from the shutdown likely held onto their staffs, knowing that the shutdown would only be temporary.

The nonpartisan Congressional Budget Office estimates that the shutdown slowed annual growth for the January-March quarter by about 0.4 percentage point, to a rate of 2.1 percent, though that loss should lead to a bounce-back later this year.

The partial government shutdown has delayed the release of a range of government data about the economy, including statistics on housing, factory orders, and fourth-quarter growth.

The reports that have been released have been mixed. The Federal Reserve’s industrial production report showed that manufacturing output rose in December by the most in nearly a year, boosted by auto production. But consumer confidence fell in January for a third straight month.

EPA Taps Climate Skeptic for Science Advisory Panel

The U.S. Environmental Protection Agency added eight members on Thursday to its scientific advisory board tasked with providing independent input for agency policy, a list that includes at least one vocal climate-change doubter.

The EPA said John Christy, an atmospheric science professor at the University of Alabama, was among the new appointees to the advisory body, which now numbers 45 people and includes several appointees from past administrations.

Christy has downplayed the threat of climate change in congressional hearings and media appearances, arguing that scientific models overestimate warming, and that major steps to cut greenhouse gas emissions are not warranted.

Those views place him outside the mainstream scientific consensus, including from U.S. federal agencies, that global warming will have devastating consequences if not urgently addressed. But they dovetail with President Donald Trump’s policy of rolling back Obama-era climate-change regulations to free up more drilling and mining.

Christy did not immediately return a call seeking comment.

New appointees

Other new appointees include Hugh Barton, a toxicology and risk assessment consultant who formerly worked for pharmaceutical giant Pfizer Inc, and Richard Williams, an economics and benefit-cost analysis consultant who previously worked for the Food and Drug Administration.

“In a fair, open, and transparent fashion, EPA reviewed hundreds of qualified applicants nominated for this committee,” acting EPA Administrator Andrew Wheeler said in a statement. They “include experts from a wide variety of scientific disciplines who reflect the geographic diversity needed to represent all 10 EPA regions.”

Wheeler, a former coal industry lobbyist, has said he believes climate change is occurring, but told senators at his confirmation hearing earlier this month that he did not see it as an urgent problem.

Trump downplays climate change

Trump has also repeatedly downplayed the threat of climate change, and announced his intention shortly after taking office in January 2017 to pull the United States from a global accord to fight it.

The science advisory board was created by Congress to serve as a check on EPA policies and research.

The EPA in 2017 barred scientists who have won agency-awarded grants from serving on the panel, a move the administration said was aimed at reducing conflicts of interest, but which environmental groups said would keep qualified scientists out of contention.