Silicon Valley Startups Turn to Chinese Backers for Funds

When Mark Pavlyukovskyy, founder of a do-it-yourself computer kit maker, was looking for investors last year, he wanted someone who knew the Chinese market.

Turns out, Pavlyukovskyy didn’t have to go to Beijing or Shanghai. Chinese venture capitalists are everywhere in Silicon Valley.

Last year, Pavlyukovskyy, a Ukrainian-born American entrepreneur working in San Francisco, raised $2.1 million from nine investors, including a Chinese firm based in the Valley.

“We’re looking not just for financial capital, but interpersonal capital with expertise and knowledge of the education market in China,” said Pavlyukovskyy. His company, Piper, sells a $299 augmented reality computer kit that children assemble themselves. Now, Piper is in schools in Hong Kong. Over 150,000 kits have been distributed around the world.

For the past decade, Silicon Valley money flowed to China as the communist country opened its markets and companies sought to expand there. That cross-border investing reversed as Chinese companies started to look outside their borders for investment opportunities. While Chinese investors have made their impact felt in the U.S. real estate, energy and transportation sectors, it was only in recent years they turned to tech.

Chasing U.S. innovation

Now, Chinese investors are pouring money into Silicon Valley deals, where it might take longer to see a return on an investment than in commercial real estate but where the potential to strike it big is higher.

“This is the very beginning,” said David Cao, who came from Singapore as a programmer before founding F50, a full-service investment firm, in 2014.

Fueling the Chinese capital is a perception that the majority of innovation is still coming out of the U.S., and that China is playing catch-up, said Chris Evdemon, who in 2014 opened Sinovation, the U.S. arm of Chuangxin, one of China’s leading early-stage venture firms. There are now 38 startups in his portfolio, which includes firms specializing in internet-of-things, robotics and education technology.

“We thought we should put some capital to work and see if we can be a great go-to market,” said Evdemon.

Chinese investors, particularly traditional media groups, are interested in firms specializing in virtual reality and augmented reality technologies, which might enhance digital entertainment. Other areas of interest for Chinese backers include robotics, artificial intelligence and technologies that focus on the financial, health and education markets. There are now more than 30 Chinese incubators in Silicon Valley.

Strategic U.S.-developed tech

But this wave of Chinese investment has called into question whether advanced technologies that are seen as critical to U.S. strategic interests are, instead, going to a competitor. A recent Pentagon report raised concerns about whether the Chinese government and Chinese investors in Silicon Valley were gaining access to key technologies through these investments.

Those concerns did not gain much attention at a recent cross-border investment summit held by F50 in Menlo Park. Instead, investors talked about how Chinese investors have become more savvy, with an emphasis on working with Silicon Valley companies to test their ideas in the U.S. first, before thinking about the Chinese market.

“I don’t see any barriers anymore between the two ecosystems,” said Evdemon. “I’m enjoying seeing wall gardens disappear.”

Scientists to March on Washington to Protest ‘Alternative Facts’

For nuclear physics graduate student Chelsea Bartram, White House adviser Kellyanne Conway’s “alternative facts” were the last straw.

President Donald Trump had disputed photographic evidence of the size of his inauguration crowd. Reporters challenged him. Conway’s response — that the administration gave “alternative facts” — has become a widely used hashtag for anything demonstrably untrue.

“A lot of us do care about this notion of an objective reality,”said Bartram, who is pursuing a doctorate at the University of North Carolina at Chapel Hill.

“Many scientists I know, myself included, spend so many hours in the lab sacrificing enormous amounts of their life for this abstract idea” that understanding reality can benefit human civilization, she said. “And then to have someone say, ‘Well, that’s not important anymore,’ it’s so devastating.”

So on Saturday, Bartram plans to join the March for Science, a protest in Washington and more than 500 other cities around the world supporting science’s role in government decisions on health, safety, the economy and more.

The march has more than 200 co-sponsors, including many major scientific and professional societies, zoos, aquaria and advocacy groups. Organizers have not released crowd size estimates.

“This is pretty remarkable and unprecedented,” said geochemist Eric Davidson, president of the 60,000-member American Geophysical Union, one of the march co-sponsors. Many of the group’s members did the climate research that the Trump administration disavows.

“I can’t think of another example where scientists have organized themselves in as many cities with an event as big as this,” he said.

Tipping point

The dispute over crowd sizes was just one small example of what scientists see as a larger pattern. During the campaign, Trump dismissed the scientific consensus about the dangers of human-induced climate change. His appointee to lead the Environmental Protection Agency, Scott Pruitt, also does not accept climate science. He has repeatedly clashed with the agency he now heads.

But scientists say their frustration has been building for decades.

“We might have reached a tipping point now, but acting as though this is a new thing is giving too much credit to the current administration,” said march co-organizer and public health expert Caroline Weinberg. “It’s letting people who have been there for a very long time off the hook.”

And it goes far beyond climate change, Weinberg added. “It’s about not paying attention to the best research on things like food stamps. It’s about cutting things like Head Start and after-school programs,” to name a few. “And that all affects health, because that’s a time to set kids on the right path.”

Critics say a public protest risks further politicizing science, turning scientists into just another interest group.

Bartram sums up a widespread response: on hot-button issues like climate change, opponents have already done it. “I don’t think anything we do is going to further politicize it,” she said.

Disconnect

But if the goal is to get policymakers to listen, “a march isn’t going to change anything. That’s the problem,” said Rob Young, head of coastal research at Western Carolina University.

Young said much of the problem stems from the growing disconnect between scientists and voters, especially the rural and working-class people who voted for Trump. He said most probably have never met a scientist.

“It’s easy to demonize us if those folks don’t know who we are,” he added.

Scientists need to get out of the lab more, he said, and explain how their work affects people’s health and livelihoods.

“I hope that when they’re done marching in Washington, that they will come home and that they will march into their local planning board or local town council,” he concluded.

That’s what march organizers hope, too. Many scientists accept much of the blame for the disconnect with voters.

The American Geophysical Union’s Davidson said a major post-march goal is more public engagement. “I think the day is gone when scientists can stay in their ivory towers and assume that everyone is going to recognize their value,” he added.

Study: Rising Sea Levels a Challenge to Inland Cities as Well

Inland cities in the United States could face stress from migration caused by sea levels rising, says a new study.

According to models created by researchers at the University of Georgia, about 13.1 million people from low-lying cities such as Miami could be forced to relocate because of rising sea levels. Top destinations, researchers say, would be Atlanta, Houston and Phoenix.

“We typically think about sea level rise as a coastal issue, but if people are forced to move because their houses become inundated, the migration could affect many landlocked communities as well,” said the study’s lead author, Mathew Hauer, of the Franklin College of Arts and Sciences department of geography.

The researchers say the study is a first to try to predict the impact of rising sea levels, taking into account populations at risk as well as likely migration patterns.

The study suggests that inland cities, as well as coastal areas, have to plan for the potential of higher sea levels.

“Some of the anticipated landlocked destinations, such as Las Vegas, Atlanta and Riverside, California, already struggle with water management or growth management challenges,” Hauer said. “Incorporating accommodation strategies in strategic long-range planning could help alleviate the potential future intensification of these challenges.”

The study was published in the journal Nature Climate Change.

Cataloguing Traditional Medicine, One Plant at a Time

Traditional Chinese medicines like acupuncture, whether they work or not, are gaining fans outside of China. And there is some scientific evidence to support the idea that natural compounds can have a restorative effective. But with popularity of Chinese herbal medicine on the rise, there is also a higher chance of fraud – and increasing pressure on the plants in the wild.

Two Teams Win Big Money By Making Science Fiction Device Into Reality

In the science fiction series Star Trek, a doctor can use a handheld device called a “tricorder” to check a person’s vital signs and diagnose illness. What once was imagined is now a reality. The Qualcomm Tricorder XPRIZE challenged scientists to develop a “tricorder-like” device to improve health care globally. The winners were recently announced in Los Angeles.

Judge Orders US Doctor Charged with Female Genital Mutilation to Remain in Jail

A federal judge in Detroit has ordered a doctor to stay in jail pending trial for alleged female genital mutilation of two 7-year-old girls.

The judge ruled Monday that Dr. Jumana Nagarwala is a danger and a flight risk.

Authorities arrested Nagarwala last week on charges of carrying out the illegal procedure on two young girls whose families brought them to Detroit after allegedly failing to find anyone in Minnesota to do it.

Nagarwala denies cutting the girls. She says all she did was remove mucus membranes from their genitals in a religious ceremony for a ritualistic burial.

Nagarwala belongs to an exclusive Muslim sect called Dawoodi Bohra, which is primarily concentrated in India.

Female genital mutilation involves cutting some of the most sensitive parts of a young girl’s private parts to initiate them into adulthood, control their sexual desire, and the belief it will make them more desirable as marriage partners.

The World Health Organization says the practice is primarily carried out in about 30 countries in Africa, the Middle East and Asia. It has no benefits and can cause severe short- and long-term health problems.

Contrary to what many people believe, female circumcision is not exclusive to Muslims, and many followers of Islam condemn it.

“In general, this is simply something that is not done and is found to be extremely repugnant,” the Michigan head of the Council of American-Islamic Relations Dawud Walid said. “This is something that is overwhelmingly not acceptable amongst the mainstream Muslim community in America.”

US Psychologist Goes beyond Headlines, Tells Refugees’ Stories

After nine attempts to sneak across the border between Syria and Turkey, with an indescribable amount of fear and painful near-death experiences, 31-year-old Mustafa Hamed finally found a home in Germany, where he is working hard to piece together his life.

“The most important thing is you are lost here. So you have to find a new job, new friends — you have to find a new life,” Hamed said. “So this is a new start for me.”

His priority right now is mastering the language. His dream is to work in journalism. As he works hard to achieve this dream, he constantly struggles with a nightmare — the memory of his days in Aleppo.

“The clashes started in Aleppo in, maybe, 2012,” he recalled. “You can imagine, it was daily and you can hear every night bombing someplace near you — maybe for just two kilometers [away]. The electricity was cut down for a long time. You have to wait for 7 or 8 hours just to charge your phone.”

Resetting their lives

Psychologist and researcher Kenneth Miller, in his book War Torn: Stories of Courage, Love and Resilience, recounts Hamed’s story, among many others from Guatemala, Mexico, Bosnia, Afghanistan, Iraq and Sri Lanka.

During his more than 25 years of working with war victims, Miller noticed that the majority of what has been written about war focuses on soldiers. He wanted to draw attention to what’s missing from the conversation: the experience of civilians. In his book, he shares dozens of stories of people he met and worked with in many places around the world.

One of the most compelling stories is from Samad Khan, an Afghan who became a refugee in the 1980s, during his country’s war against the Soviets. Khan participated in Miller’s research in Afghanistan. In one of the counseling sessions on dealing with painful experiences, Khan shared a traumatic memory.

“He was driving a pickup truck with his sister’s family in the back, up a steep, winding mountain road and the road was controlled by the Mujahedeen, the freedom fighters,” Miller said. “They stopped him at one point and asked him to show his papers. So he stopped the car, and got out to show them his papers, but he realized he had forgotten to set the hand brake. He watched in horror as the truck spiraled off the side of the mountain and tumbled hundreds of feet down to the valley below. He had to go down to retrieve the bodies and bring them back to Kabul for burial.”

Overcoming tragedies

However, when Miller met him, Khan was a life-loving community leader. “I said, ‘How did you get over this? You seem to be doing so well now!’ He said it was a combination of the power of his faith and he also had a tremendous support of his extended family and friends,” Miller explained. “They got him through. I tell his story because this is something that recurs in the book, in every country that I worked in, that we are more alike than we are different. His story also captures something that we’ve seen in a lot of refugee communities, which is war, of course, can be devastating, but we’re built to heal. If the conditions are supportive, safe and stable, people have a remarkable capacity to be resilient and to heal.”

When the environment is safe and supportive, Miller says, refugees not only survive painful experiences, but they can thrive.

He tells another story, based on his experience in Guatemala:

“I got adopted by this one family while I was living in the camp for a year. This family fled when they heard about a massacre in a neighboring village where about 370 people were killed. They spent two months hiding in the mountains in the rainy season. They finally came down on the Mexican side of the border and found their way in to the refugee camp. This young fellow, Emilio, had developed a combination of trauma and severe shock. After a couple of days of traditional prayers and use of herbs, he healed. I think more than anything what really helped him heal was this tremendous love and support of his family. He has become a vibrant young professional musician, he became a refugee in Canada, who is doing wonderfully well.”

The social media effect

Miller says he hopes sharing these stories can help raise awareness about refugees’ situations.

“One of the biggest predictors about whether the refugees become severely depressed or adapt successfully is the extent to which they’re either made to feel welcome, given language and the material resources to get a new start, or whether they encounter a lot of discrimination. The more people feel marginalized and discriminated, of course, the harder it is for them to integrate, and the harder it is for them to heal,” he said.

One point Miller raises is the effect of social media. He says these tools can be helpful in raising awareness about the plight of refugees, but they also can be harmful if they’re used to spread misconceptions.

He points to images shared on social media of Syrian refugees on Lesbos, Greece. “When you see this father holding his two children and weeping and just arriving safely after crossing the sea, it mobilizes people and brings them to want to help, do something to counter this. Now, on the other hand, you also see social media being used to spread rumors and lies about refugees. Social media can spread tremendous fear, and that has serious consequences. It gets people turned back. It causes great harm.”

Miller says he also hopes these stories can inspire refugees and help them discover the inner strength they need to survive and start anew.

Facebook Hosts Developers at F8 Conference

Facebook’s annual developer conference F8 kicks off this week in San Jose, California, at a time when the social network giant faces more competition in the United States and around the globe.

Developers from Brazil, France, India and Mexico are to gather Tuesday and Wednesday at F8, looking for new tools and features for Facebook’s biggest products — its flagship social network, Instagram, the mobile photo sharing service; and WhatsApp, the instant messaging service Facebook acquired in 2014.

Facebook is expected to show new features for all its main products and woo developers and businesses to make greater use of its services. It’s a technical gabfest, but one that Facebook executives use to unveil new features and talk about the firm’s future. The name of the conference — F8 — comes from Facebook’s tradition of hosting eight-hour hackathons.

While thousands are expected to gather at a convention center in downtown San Jose, elsewhere, in more than 45 cities worldwide, developers will meet to watch Facebook CEO Mark Zuckerberg’s opening speech Tuesday morning. The challenge Facebook faces is two-fold — to find more users, and give them more to do.

With 1.9 billion users, Facebook is coming up against the natural limits of its growth. It already reaches more than 20 percent of the 7 billion people on the planet. In the U.S., Canada and Europe, its user growth has been somewhat flat for several years. Competitors such as Snapchat, whose parent company Snap recently went public, are popular with teens and 20-somethings.

“There are no more users to tap into in mature countries,” said Brian Blau, research vice president at research firm Gartner. That leaves the rest of the world, where Facebook continues to grow quickly.

Facebook has worked through an initiative called internet.org to expand global connectivity through programs such as Aquila, a solar-powered drone that delivers wi-fi, and Free Basics, which offers access to websites and other services. While the company said last year that it has helped connect more than 40 million people worldwide, Facebook has stumbled in some of these efforts, such as in India.

Ads

Facebook’s other big challenge is to deliver more services and features to its existing users so they spend more time during the day in Facebook’s world and, therefore, see more advertisements.

To that end, the conference’s events include sessions on advertisements, games, virtual reality and augmented reality, mixing the digital and virtual realms.

Messenger

One thing Facebook will likely focus on is offering developers more features for Messenger, its homegrown messaging service, Blau said. The company may decide to allow Messenger, which already has more than 1.2 billion users, to be more independent from Facebook itself, competing against big global messaging systems such as Kik, WeChat, Line and others.

“If you think about it, Facebook’s mission has always been around community and communication and online social activities,” Blau said. “And providing communication to people who don’t have that is a way to do it.”

‘The National’ Newspaper of Abu Dhabi Sees Layoffs after Sale

A state-backed newspaper in the United Arab Emirates that was bought by an Emirati who oversees the English soccer club Manchester City is undergoing layoffs, those with knowledge of the firings said Monday.

They told The Associated Press that staffers at The National were informed Sunday they had been let go. They spoke to the AP on condition of anonymity for fear of repercussions.

 

It wasn’t clear how wide the layoffs were or what specific plans The National’s new owner had for the daily newspaper. Repeated calls to the newspaper rang unanswered Monday.

 

The layoffs come after months of turmoil at The National, which was founded in 2008 and staffed with top writers and editors from Western newspapers. Its owner, the state-backed firm Abu Dhabi Media, hoped it would become the Mideast’s standard for independent, hard-nosed newspapering.

 

But while the paper broke local stories on skyscraper fire safety and other issues, it largely stayed away from controversial topics in a country with strict laws governing speech.

 

International Media Investments, a subsidiary of Abu Dhabi Media Investment Corp. owned by Sheikh Mansour bin Zayed Al Nahyan of Manchester City, bought The National in November from Abu Dhabi Media. Sheikh Mansour’s media firm has a joint venture with Britain-based Sky to run the Arab satellite news channel Sky News Arabia.

 

In a statement, International Media Investments said: “The National is putting together its team, made of existing and new talent,” and will undergo “a digital transformation while retaining its print product.” It answered no questions from the AP about the layoffs.

 

Although the newspaper sale has yet to finalize, staffers had to reapply for jobs at the paper. All this comes as low global oil prices have pinched the economy of the United Arab Emirates, a federation of seven sheikhdoms on the Arabian Peninsula.

 

Sheikh Mansour is a member of the ruling family of Abu Dhabi, the UAE’s oil-rich capital. He also serves as a deputy prime minister and minister of presidential affairs.

Second Immune Cell Found to Harbor HIV During Treatment

The challenge of finding a cure for AIDS may have gotten harder. Scientists have discovered another cell in the body where HIV — the virus that causes AIDS — hides from therapy designed to suppress it to undetectable levels in the blood.

The cells — called macrophages — are part of the immune system and are found throughout the body, including in the liver, lungs, bone marrow and brain. After other immune cells have done their job of destroying foreign invaders, these large white blood cells act as the cleanup crew. They surround and clean up cellular debris, foreign substances, cancer cells and anything else that is not essential to the functioning of healthy cells. In addition, they apparently can harbor HIV.

A new target

While antiretroviral drugs can drive the AIDS virus down to virtually undetectable levels, scientists know if therapy is interrupted, an HIV infection can come roaring back. That’s because of a viral reservoir that until now has been thought only to inhabit immune system T-cells — the cells that are attacked and destroyed by the AIDS virus. Much research is dedicated to trying to find ways to eradicate the T-cell reservoir.

This may mean researchers must find ways to eliminate HIV from macrophages, as well.

The finding was published in Nature Medicine by researchers in the Division of Infectious Diseases at the University of North Carolina School of Medicine. 

Investigators demonstrated in a mouse model that in the absence of humanized T-cells, antiretroviral drugs could strongly suppress HIV in macrophages. However, when the therapy was interrupted, the virus rebounded in one-third of the mice. This, say researchers, is consistent with persistent infection in the face of drug therapy.

Researchers say their work demonstrates that any possible therapies must address macrophages in addition to T-cells to eradicate viral reservoirs. Investigators say they now have more information pointing to the complexity of the virus, and that targeting the viral reservoir in T-cells in the blood will not necessarily work with tackling HIV persistence in macrophages, which reside in tissues and are harder to observe. 

Senior author Victor Garcia said it’s possible there are other HIV reservoirs still to be discovered.

The lead author of the study, Jenna Honeycutt, called the discovery “paradigm changing” in the way scientists must now try to eliminate persistent infection in HIV-positive individuals. 

Investigators say their next step is to figure out what regulates HIV persistence in infected macrophages. They are also interested in finding HIV interventions that completely eradicate the AIDS virus from the body.

The Long, Rough Ride Ahead for ‘Made in America’

Mini motorcycle and go-kart maker Monster Moto made a big bet on U.S. manufacturing by moving assembly to this Louisiana town in 2016 from China.

But it will be a long ride before it can stamp its products “Made in USA.”

The loss of nearly one out four U.S. factories in the last two decades means parts for its bike frames and engines must be purchased in China, where the manufacturing supply chain moved years ago.

“There’s just no way to source parts in America right now,” said Monster Moto Chief Executive Alex Keechle during a tour of the company’s assembly plant. “But by planting the flag here, we believe suppliers will follow.”

Monster Moto’s experience is an example of the obstacles American companies face as they, along with President Donald Trump, try to rebuild American manufacturing. U.S. automakers and their suppliers, for example, have already invested billions in plants abroad and would face an expensive and time-consuming transition to buy thousands of American-made parts if President Trump’s proposed “border tax” on imported goods were to become law.

When companies reshore assembly to U.S. soil – in Monster Moto’s case that took two years to find a location and negotiate support from local and state officials – they are betting their demand will create a local supply chain that currently does not exist.

For now, finding U.S.-based suppliers “remains one of the top challenges across our supplier base,” said Cindi Marsiglio, Wal-Mart Stores Inc.’s vice president for U.S. manufacturing and sourcing. Wal-Mart partnered with Monster Moto and several other U.S. companies in a drive to increase spending on American-made goods by $250 billion by 2023 in response to consumer demand for American-made goods.

Their experience has shown Americans’ patriotic shopping habits have limits, namely when it comes to price.

Take Monster Moto’s bikes, which sell for between $249 to $749. Keechle, the CEO, says he can’t raise those prices for fear his price sensitive prospective customers will turn to less expensive rivals made in China.

“Consumers won’t give you a free pass just because you put ‘Made in USA’ on the box,” Keechle says. “You have to remain price competitive.”

Keeping a sharp eye on labor costs in their factory is one thing these U.S. Manufactures can control. They see replacing primarily lower-skilled workers on the assembly line with robots on American factory floors as the only way to produce here in a financially viable, cost-competitive way. It’s a trend that runs against the narrative candidate Donald Trump used to win the U.S. presidency.

 

Since taking office, Trump has continued promises to resurrect U.S. manufacturing’s bygone glory days and bring back millions of jobs. On March 31, Trump directed his administration to clamp down on countries that abuse trade rules in a bid to end to the “theft of American prosperity.”

But it’s more complicated on the ground for companies like Monster Moto.

“It’s almost as if people think you can just unplug manufacturing in one part of the world and plug it in to the U.S. and everything’s going to be fine,” said David Abney, Chief Executive Officer of package delivery company United Parcel Service Inc., which helped Monster Moto reconfigure its supply chain to bring its Chinese-made parts to Ruston.

“It’s not something that happens overnight,” he said.

A White House official said that the Trump administration’s efforts to encourage manufacturers to reshore production will be focused on cutting regulations and programs to provide new skills to manufacturing workers.

“We recognize that the manufacturing jobs that come back to America might not all look like the ones that left,” a White House official said, “and we are taking steps to ensure that the American workforce is ready for that.”

Making robots great again

In Monster Moto’s cavernous warehouse in Ruston, boxes of imported parts that are delivered at one end then become bikes on a short but industrious assembly line of a few dozen workers.

A solitary, long-bearded worker by the name of Billy Mahaffey fires up the bikes to test their engine and brakes before a small group of workers puts them in boxes declaring: “Assembled in the USA.”

Helped by that label, Monster Moto has experienced a recent boom in demand from major customers that include Wal-Mart. The company expects to double production to 80,000 units and increase its assembly workers — who make $13 to $15 an hour — to 100 from around 40 in 2017.

The most likely components Monster Moto could produce in America first are black, welded-metal frames for bikes and go-karts, but they would have to automate production because human welders would be too expensive.

 

“We can’t just blow up our cost structure,” said Monster Moto President Rick Sukkar. “The only way to make it work in America is with robotics.”

The same principle applies for much larger manufacturers, such as automotive supplier Delphi Automotive PLC’s.

Chief Financial Officer Joe Massaro told analysts in February that 90 percent of the company’s hourly workforce is in “best-cost countries.”

When asked about shifting production to the United States from Mexico, Massaro said depending on what happens to trade rules “it would have to be much more of the sort of the automated type manufacturing operations just given… the labor differential there.”

That trend is already showing up in data compiled by Economic Policy Institute, a Washington-based think tank.

According to senior economist Rob Scott, not only did America lose 85,000 factories, or 23.5 percent of the total, from 1997 to 2014, but the average number of workers in a U.S. factory declined 14 percent to 44 in 2014 from 1997. According to Scott, much of the decline in workers was due to automation.

“We’re going to see more automation in this country because it makes good sense economically for every company,” said Hal Sirkin, a managing director at the Boston Consulting Group. “You can spend a lot of time bemoaning it, but that’s not going to change.”

Manufacturers say automated production requires fewer, but more skilled workers such as robot programmers and operators.

The National Association of Manufacturers (NAM) estimates because of the “skills gap” there are 350,000 unfilled manufacturing jobs today in a sector that employs over 12 million people.

In Ruston, Mayor Ronny Walker bet on Monster Moto by guaranteeing the company’s lease because he wants to diversify the city’s economy, and envisions suppliers setting up alongside Monster Moto’s assembly plant.

“Could it take a long time to bring manufacturing back here?

Sure,” he says. “But you have to start somewhere.”

China’s Economy Gains Steam; 1Q Growth Fastest Since 2015

China’s economic recovery is gaining traction, with growth rising to its fastest pace in over a year in January-March.

The 6.9 percent annual pace of expansion for the world’s second-largest economy, reported Monday, surpassed economists’ forecasts and was an improvement from 6.8 percent growth in the last quarter of 2016.

Growth last was that strong in July-September of 2015.

Analysts said government spending and a property boom spurred by easy credit were the main factors helping to driving stronger demand.

China saw its slowest growth in nearly three decades in 2016, at 6.7 percent. The official full-year economic growth target for 2017 is 6.5 percent.

“Currently, China’s economy is demonstrating good signs of pickup in growth, overall price stability, expansion in employment and improvement in the international balance of payments,” Mao Shengyong, a spokesman for the National Bureau of Statistics, told reporters in Beijing.

Fears of being dragged into a trade and currency war with the U.S. have abated after U.S. President Donald Trump toned down his previously antagonistic comments against Beijing.

A summit earlier this month with Chinese President Xi Jinping ended calmly, and the U.S. Treasury Department did not label China a currency manipulator in its latest assessment.

During the first quarter, investment in fixed assets such as factories expanded 9.2 percent from a year earlier, while retail sales grew 10 percent. Industrial production rose 6.8 percent, including a stronger-than- expected 7.6 percent year-on-year gain in March.

Although exports have also shown sharp improvement, strong lending and investment figures suggest Beijing is relying on its traditional strategy of powering growth through government stimulus. China’s leaders have been trying to shift to an approach based more on consumer demand but tend to open the spending and credit taps at times when growth appears to be slowing too much.

“The question we need to ask is whether this investment-led model is sustainable as the authorities have trouble taming credit,” said Raymond Yeung and David Qu, economists at ANZ.

The latest figures indicate China’s economy is on track to meet its official growth target — a good sign for China’s communist leaders, who don’t like surprises and are preparing for a twice-a-decade party congress in the autumn to appoint new leaders.

“The 6.5 percent target this year, you could say it’s more important than ever, because of the political reshuffle later this year,” said Amy Zhuang, chief Asia analyst at Nordea Markets. “At least being able to maintain the stability in growth is very, very important for Beijing.”

On a quarter-to-quarter basis, which is how other major economies report data, the economy lost steam, expanding just 1.3 percent. That’s slower than 1.7 percent in the fourth quarter of 2016.

The economists at ANZ said such figures should be viewed cautiously because they might reflect changes in how the government made adjustments for seasonal factors.

Economists say they expect the boost from the government’s policies and the property boom to persist for a few more months before fading later in the year.

Real estate plays an outsize role in fueling growth in the wider Chinese economy by spurring knock-on demand in the manufacturing and service sectors.

House prices will likely start cooling this year as tighter restrictions finally kick in, but Beijing will probably take steps to offset that decline with more stimulus to meet its annual growth target, Zhuang said.

Prince Harry Shares Emotional Struggles after Diana’s Death

 It is an image those who saw it will never forget: Prince William and Prince Harry — just boys, really — walking silently behind their mother’s cortege as the world mourned Princess Diana’s death in 1997.

Now Harry has revealed for the first time that losing his mother when he was only 12 left him in emotional turmoil for 20 years, filling him with grief and rage he could only manage after he sought counseling.

 

Breaking sharply with the royal tradition of maintaining a stoic silence about mental health, the 32-year-old prince told The Daily Telegraph in an interview published Monday that he had nearly suffered multiple breakdowns since his mother’s death.

 

It was by far the most frank interview of Harry’s life and gives the public a much fuller view of Harry and the inner turmoil he suffered growing up in the public eye after losing his mother.

 

He told the newspaper he “shut down all his emotions” for nearly 20 years and had been “very close to a complete breakdown on numerous occasions.”

 

He describes a long, painful process of refusing to face his sense of loss that only came to an end when he was in his late 20s and sought professional counseling to cope with the pressures and unhappiness.

 

 “My way of dealing with it was sticking my head in the sand, refusing to ever think about my mum, because why would that help?” he said of his teens and 20s, a period in which he embarked on a successful military career but also occasionally attracted unwanted headlines, notably for being photographed playing “strip billiards” in Las Vegas.

 

In the interview, Harry said he had at times felt “on the verge of punching someone” and had taken up boxing as an outlet for the aggression he felt.

 

He said the long suppression of his grief eventually led to “two years of total chaos.”

 

He said he was pretending that life was great until he started counseling and faced his problems head on.

 

 “All of a sudden, all of this grief that I have never processed started to come to the forefront and I was like, there is actually a lot of stuff here that I need to deal with,” he said.

Along with his brother Prince William and sister-in-law the Duchess of Cambridge, Harry has worked with a charity that promotes mental health. They have argued that mental health problems must be given the same priority as other illnesses and should be spoken about openly and without stigma.

 

Harry has also worked extensively with wounded veterans and has organized the Invictus Games to foster international sporting competition for injured or ill service personnel and veterans.

 

Harry told interviewer Bryony Gordon, who has written extensively about her own struggles with depression and other issues, that he is in a “good place” now, and praised William for helping him seek help after many years of suffering in silence.

 

 He credited counseling with helping him recover.

 

 “I’ve now been able to take my work seriously, been able to take my private life seriously as well, and been able to put blood, sweat and tears into the things that really make a difference and things that I think will make a difference to everybody else,” he said.

 

Harry has also formed a romantic relationship with American actress Meghan Markle and in November took the unusual step of chastising the press for harassing her.

 

Harry and William have both been wary of press coverage, in part because of the way photographers shadowed their mother’s every move.

 

 

No Stiff Upper Lip: Prince Harry Describes Mental Problems

Prince Harry has broken with royal tradition of maintaining silence about mental health issues by speaking candidly of his severe emotional problems following the death of his mother Princess Diana.

The 32-year-old prince told The Daily Telegraph in an interview published Monday that he had nearly suffered breakdowns since his mother’s 1997 death in a car crash and had needed counseling in his late 20s.

 

He told the newspaper he “shut down all his emotions” for nearly 20 years and had been “very close to a complete breakdown on numerous occasions.”

 

He describes a long, painful process of refusing to face his sense of loss that only came to an end when he was in his late 20s and sought professional counseling to cope with the pressures and unhappiness.

 

“My way of dealing with it was sticking my head in the sand, refusing to ever think about my mum, because why would that help?” he said of his teens and 20s, a period in which he embarked on a successful military career but also occasionally attracted unwanted headlines, notably for being photographed playing “strip billiards” in Las Vegas.

Pretended life was great

He said the long suppression of his grief eventually led to “two years of total chaos.”

 

He said he was pretending that life was great until he started counseling and faced his problems head on.

 

“All of a sudden, all of this grief that I have never processed started to come to the forefront and I was like, there is actually a lot of stuff here that I need to deal with,” he said.

Brothers share a cause

Along with his brother Prince William and sister-in-law the Duchess of Cambridge, Harry has worked with a charity that promotes mental health. They have argued that mental health problems must be given the same priority as other illnesses and should be spoken about openly and without stigma.

 

Harry told interviewer Bryony Gordon, who has written extensively about her own struggles with depression and other issues, that he is in a “good place” now, and praised William for helping him seek help after many years of suffering in silence.

 

Harry has never before spoken publicly about his problems dealing with Diana’s death.

Scientists Research the Brain in an Effort to Stop Parkinson’s Disease

Parkinson’s disease was first identified 200 years ago, but so far, there is no cure. Most people have the disease for many years before it’s diagnosed, making it too late for effective treatment. So scientists are focusing on research in an effort to stop the disease before symptoms appear. VOA’s Deborah Block has more during Parkinson’s awareness month in the United States.

Employers Look to Fill Seasonal Jobs; Advocates Look to Protect Workers

You may have noticed: Much of the recent anti-immigration rhetoric in Washington most loudly comes from factions on the political right: H1B, H2B, it’s all about protecting American jobs.

But every step of the way, progressive groups — while pro-immigrant — are just as critical of foreign worker visas. Federal regulations on the books, they argue, are inherently insufficient to protect visa holders from abuse, whether through unwarranted recruitment fees, misrepresentation of job requirements, fraud or intimidation.

The issue plagues potential recruits, but also well-meaning businesses that can’t find enough Americans willing to take seasonal jobs. In Cape Cod, Massachusetts and other areas of the country whose economic models are centered on five-to-six-month tourist seasons, the work of H2B visa-holders becomes essential to business owners.

Employers worry, too

Tyler Hayes, vice president of Cape Cod Restaurants, says he is fortunate that his seasonal foreign workforce, mainly from Jamaica, has created a “family atmosphere” during his 20-year tenure with the company.

“Now, their children are coming in, working for us,” Hayes said.

But while Hayes can only point to the well-being of his own workforce, he acknowledges that at least in recent years, abuse of workers has not been inconceivable.

“There used to be these companies that would send out these big petitions,” Hayes recalled. “They bring in 100 or 200 people, get them in the country and then farm them out.”

In response, the U.S. Department of Labor (DOL) and Department of Homeland Security (DHS) cracked down on abuse within the H2B system in 2015, both in order to prevent the exploitation of workers and to ensure U.S. workers’ awareness of available jobs.

Are regulations enough?

Elizabeth Mauldin, policy director at Centro de los Derechos del Migrante, Inc. (CDM) — the Center for Migrant Rights — calls those protections basic, including the right to receive a contract before entering the U.S. and protection from being charged a recruitment fee.

But many aspects of those existing regulations, she argues, are difficult to ensure, absent greater transparency in the recruitment process.

“It’s impossible to enforce a ban on charging workers fees,” Mauldin told VOA. “When workers are charged fees upfront, they are vulnerable to the same type of economic coercion across the board.” As a result, she notes, foreign workers become susceptible to wage theft and other abuses, regardless of their visa category.

Afraid to report

A 2013 report issued by CDM, whose findings were based on a survey and in-depth interviews with hundreds of H2B workers, found that 58 percent of respondents reported paying illegal recruitment fees, while 10 percent reported recruitment fraud — having paid a fee for a nonexistent job.

While there are mechanisms in place for foreign workers to report abuse, Mauldin argues that the disincentives are often too great.

“[Abusive employers] will say, at the end of the season, ‘If you pay those fees, then we will be more likely to recruit you in the future,’ or ‘If you don’t report these violations, then our recruiter will choose you again next year,’” Mauldin said.

Jane Nichols Bishop, founder and president of Peak Season Workforce, a family-run company that helps Cape Cod-area businesses secure H2B visas, says the mechanisms in place to prevent exploitation, including audits by the Department of Labor, have largely worked. But in cases where they do not, she says it’s in everyone’s interest that the infractions are reported.

“If there are abuses, we would like to see them caught,” Nichols said. “They give everyone who does this and who works at this very successfully a very bad name.”

Workers empower themselves

Despite ongoing reports of abuse nationwide, there is some hope for affected foreigners outside of federal regulations, thanks to the internet. A bilingual workers’ rights initiative, which Mauldin calls the Yelp for migrant workers, allows workers to review recruiters and share their experiences, and create a self-empowering community in the process.

 

New Kabul Coffee Shop Aims for Success in Tea-dominated Afghanistan

Steeped in centuries of seemingly impenetrable tea tradition, Afghanistan’s capital is getting a little coffee buzz.

Nargis Aziz Shahi says business has been increasing day by day since she opened iCafe a couple of weeks ago. Looking a little like a brick-walled Starbucks with a distinctively homey Afghan feel, it’s attracting a mostly youthful clientele drawn by free internet service and books to peruse over a cup or two.

“There were three key objectives that led me open the cafe: 1) to introduce coffee to Afghans who mostly don’t know coffee and its taste and benefits; 2) to provide a place for our youth to carry out social activities; and 3) to provide job opportunities for young people,” Shahi told VOA’s Afghan service.

Tea came to Afghanistan early

Afghanistan was introduced to tea early because of its location on ancient trade routes. The Chinese traded silk and tea for other commodities. Tea became part of the country’s hospitality for guests. Just about every family has its own recipe.

Today, Afghanistan is the world’s largest tea consumer, with each person consuming an average of almost 4.5 kilograms — more than 1,500 cups — per year in 2012. By comparison, the U.S. ranked 72nd at 0.4 kilograms per person.

Only the Russian Federation and Britain, with much larger populations, import more tea.

Coffee culture gets a start

Dr. Nabi Misdaq, adviser to President Ashraf Ghani, has visited iCafe. He regards coffee drinking as a new, enlightening culture in Afghanistan.

“It is a good beginning,” Misdaq said. “It is a profitable business, because many young people come here to read books and exchange ideas. I am sure that this will also lead to the opening of new shops.”

The cafe also serves as a place for young Afghans to carry out social and cultural activities. They come to iCafe to attend literary programs and poetry contests.

The female customers say there are few other places where they can get together and entertain themselves, but they maintain that they come to the shop to relax and enjoy.

“I am very happy that we have a coffee shop in Kabul,” said customer Samira Seerat. “It is a very good place for women to visit. There are in fact no appropriate places for women in Kabul, and Afghanistan as a whole, to visit, because our people believe that women cannot go to restaurants.”

Will Robots Replace Human Drivers, Doctors and Other Workers?

The impact of automation on U.S. jobs is open to debate. Robots have displaced millions of manufacturing workers, and automation is getting cheaper and more common, raising concerns it will eventually supplant far more workers in the services sector of the economy, which includes everything from truck driving to banking. 

University of Virginia Darden School of Business Professor Ed Hess says we are just starting to see automation’s impact. “It is going to be broad and it is going to be deep,” he said, adding that “tens of millions” of jobs could be at risk.

Data from the Bureau of Labor Statistics show 5 million U.S. manufacturing jobs have disappeared already.

While some politicians blame trade for the job losses, most economists say automation is mainly to blame as robots do routine factory tasks previously done by humans. 

Hess calls self-driving cars and trucks a threat to millions of human jobs, and says fast-food workers are also vulnerable, as companies install electronic kiosks to take restaurant orders. McDonalds says displaced workers will be reassigned to other tasks.

The professor says research shows nearly half of U.S. jobs could be automated, including retail store clerks, doctors who scan X-rays for disease, administrative workers, legal staffers, and middle managers.

Future of jobs

Starting more than a century ago, advancing technology changed the United States from an agrarian to a manufacturing economy. Displaced farm hands eventually found factory work, but the transition took years. This new transition may also take a time because, Hess says, “We’re not going to anywhere produce the number of jobs that we automate.”

But 50 years of experience in banking shows that while automation may change the industry, it does not necessarily end jobs for humans. 

The first Automatic Teller Machines, or ATMs, were installed 50 years ago, and there are now 420,000 in the United States. International Monetary Fund analysis shows the number of human tellers did not drop, but rose slightly.

“Humans were doing mostly service and routine types of tasks that could be converted into more automated tasks,” Tremont Capital Group’s Sam Ditzion said. But “the humans then became far more valuable in customer service and in sales in these branches.”

In a Skype interview, Ditzion said that while automation can be “scary,” the oversight of ATMs created new kinds of work for “tens of thousands of people.”

Automation grows

A report by Redwood Software and the Center for Economics and Business Research (CEBR) says surging investment and falling prices will help robotics grow.

Redwood’s software handles business processes that are repetitive, rule-bound and tedious.

CEBR Economist David Whitaker says as growing fleets of robots take over mundane tasks, higher productivity could bring higher wages for some human workers. He says people who want to stay employed must hone skills that robots can’t handle, such as unpredictable work or the need for an emotional human connection.

One example, according to Alex Bentley of Blue Prism software, is a program that helps law firms examine visa applications. The robot enters data but gets help from a human partner with problems such as missing information. Bentley says some human jobs have been lost, but in other cases displaced workers move within the firm to new work, particularly jobs that are “customer-centric.”

U.S. Senator Chris Coons says Germany and other nations use training programs to help their citizens get and keep jobs in a changing economy. The Democrat says America’s competitors invest six times what the U.S. does in skills development and workforce training, while Washington has slashed funding for such programs. Coons and a Republican colleague, Senator Thom Tillis, are seeking more help for schools, companies, workers and government agencies operating programs to upgrade the workforce.

New opportunities

While workers need to make some changes, philosopher and professor Ed Freeman of UVA’s Darden School of Business says companies also need to rethink their basic purpose. He says businesses must do more than just maximize value for shareholders.

“I need red blood cells to live,” he said. “It doesn’t follow that the purpose of my life is to make red blood cells. Companies need profits to live, it doesn’t follow that the purpose of a company is to make profits. We have to think through this idea about what purpose is in business.”

Freeman says he is “optimistic” because many jobs, such as creating applications for smartphones that would have been unimaginable a few years ago, are creating thousands of opportunities. He is also encouraged by his many students who, he says, bring new ideas, passion and energy to the task of starting businesses that will create new kinds of jobs.

Freeman is convinced that the problem isn’t the tsunami of lost jobs, it is the lack of “really good ideas” for creating a safety net for people who will lose jobs to automation.

Many experts worry about growing levels of automation — particularly advanced forms known as artificial intelligence — hurting employment for U.S. workers.

But U.S. Treasury Secretary Steven Mnuchin says it will be “50 or 100 years” before artificial intelligence takes American jobs. In an interview with Mike Allen of AXIOS, Mnuchin said, “I think we are so far away from that, [it is] not even on my radar screen.”