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The World BusinessMirror
Wednesday, May 18, 2016
China’s state media make rare remarks on Cultural Revolution
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EIJING—China’s official media reaffirmed on Tuesday the Communist Party’s longstanding judgment that the Cultural Revolution was a catastrophic mistake, after staying silent on Monday’s 50th anniversary of the start of the decadelong upheaval.
T he of f ic ia l pa r t y mout hpiece People’s Daily published an opinion piece on its website precisely at midnight on Tuesday unequivocally praising the 1981 party resolution that condemned the bloody political movement launched by Mao Zedong to enforce a radical egalitarianism. “Our party has long taken a solemn attitude toward bravely admitting, correctly analyzing and firmly correcting the mistakes of our leadership figures,” the piece read. The party has long suppressed open discussion of the tumultuous period, fearing that could undermine its legitimacy to rule and lead to direct criticism of Mao, the founder of the communist state who remains a revered figure. So politica l obser vers have been closely obser ving the part y leadership’s attitude toward
50 The number of years since the decadelong Cultural Revolution began in China
the milestone as a bellwether of the countr y’s ideological direction. No off icia l commemorations have been held, a lthough some Mao loyalists have staged pr ivate events. Since taking power in 2013, President Xi Jinping has made frequent references to Mao, cen-
Newsletters released from secretive NSA
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ASHINGTON—In-house newsletters from the clandestine National Security Agency (NSA) have been released by an online news site—part of the mountain of documents leaked by former NSA contractor Edward Snowden. The Intercept, whose founding editors were the first to publish documents leaked by Snowden, released on Monday the first batch of nine years’ worth of the newsletters, which offer a behind-thescenes glimpse into the NSA’s work. The newsletters reveal efforts to eavesdrop on a Russian crime boss, the search in Iraq for possible weapons of mass destruction and help with interrogations at the US military prison at Guantanamo Bay, Cuba. An article in the May 2003 newsletter describes how NSA spent “many months” obtaining the phone number of a Russian organized crime figure so his calls could be intercepted. The State Department asked the NSA for information on the boss of the Tambov crime network in Russia—a figure known only as “Mr. Kumarin”—and whether he had any ties to Russian President Vladimir Putin. The man later was convicted of fraud and money laundering and sentenced to 14 years behind bars.
Interrogations
IN a newsletter article published on December 22, 2003, an NSA liaison officer recounts a temporary duty assignment at Guantánamo Bay, where the task was to provide intelligence to support Defense Department, Central Intelligence Agency and Federal Bureau of Investigation interrogations of detainees picked up off battlefields. The job entailed relaying information back to NSA, based at Fort Meade in Maryland. But sometimes, NSA would share “sensitive NSA-collected technical data” to help the interrogators. According to Intercept, “Neither the Senate Intelligence Committee’s report on the CIA’s detention and rendition program [which confirmed the existence of two CIA facilities at Guantánamo] nor a 2008 Senate Armed Services Committee report on detainee abuse by the military addresses the role of the NSA, at least, in the heavily censored versions that have been made public.”
Taxing
IT was serious business, but in their off hours, NSA liaisons at scenic Guantanamo Bay could
visit the “Tiki Bar,” or enjoy water sports, such as sailing and snorkeling. “Learn how to operate a boat in a weekend,” the liaison wrote. “Become a certified open-water scuba diver within weeks.... The local dive shop has all the gear and tips to ensure a perfect outing.” In a more taxing assignment, the newsletter reports on a rendition where six Algerians, linked to a plan to bomb the US Embassy in Sarajevo, were moved from Bosnia to Guantánamo in early 2002. The US rendition program involved secretly sending foreign captives to other countries that have more lax practices for the humane treatment of detainees. A Bosnian judge ordered the Algerians released for lack of evidence, but the US persuaded the Bosnian government to turn them over to US custody.
A WOMAN walks past a rack displaying the cards depicting former Chinese leader Mao Zedong and the great army of the Cultural Revolution for sale at a souvenir shop in Beijing on May 17. AP
tralized control and deployed pol it ic a l st agec ra f t c a r r y i ng echoes of Mao’s rule, drawing criticism from Chinese liberals and political opponents. The official commentary on Tuesday sought to thoroughly lay to rest any further debate of the Cultural Revolution and urged the country keep moving ahead under under Xi.
The 1981 resolution “on the Cultural Revolution [as a catastrophe] has withstood the test of time and it remains unshakably scientific and authoritative,” it said. “We summarize and absorb history’s lessons with the goal of using history as a mirror to better move forward.” In a separate commentar y, the Global Times newspaper pub-
lished by People’s Daily said the events of 50 years ago had inculcated an abhorrence of disorder and craving for stability among the Chinese public. “Completely denying the values of the Cultural Revolution is not only an understanding throughout the party, but also a stable consensus of the whole of Chinese society,” the paper said. AP
China’s tech giant Huawei looks to build global smartphone brand
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AN NSA staffer wrote about the movement in the newsletter, as part of a series replete with stories about working overtime for the agency. As soon as they were released, the Algerians were to be transported from Sarajevo to another Bosnia city and then on to Guantánamo. The staffer’s job was to watch the route for a possible ambush from a military convoy. The Algerians’ release “was delayed for several hours due to a large demonstration outside the building they were being held in,” and “the convoy did not leave Sarajevo until after midnight,” she wrote. One of the Algerians, Lakhdar Boumediene, went on to file a lawsuit that led to a landmark decision in June 2008 that Guantánamo detainees had the right to challenge their detention in federal court.
WMDs
Stars, singers
OTHER tales came from NSA’s work in Iraq. NSA staffers worked to research the locations for weapons of mass destruction material, although claims about Iraqi leader Saddam Hussein’s alleged weapons of mass destruction proved to be false. NSA also provided timely intelligence support, including a “summary of contacts” that helped efforts to capture a top Baathist official in May 2003. Aziz Sajih Al-Numan, accused of torture and murder in Iraq, was the king of diamonds in the US Central Command’s deck of cards of most-wanted Iraqis. The newsletter boasted: “Al-Numan was caught within 25 hours after the Army contacted NSA to request support.” AP
briefs
WORLD AND REGIONAL POWERS MEET IN VIENNA ON SYRIA VIENNA—World and regional powers are meeting in Vienna to overcome stubborn divisions among Syrian factions that have led to the rise of Islamic extremists and claimed hundreds of thousands of lives since violence turned to war five years ago. But the gathering is not expected to substantially advance efforts to find peace. A diplomat familiar with the talks says participants will agree on a document focusing on trying to firm up a shaky cease-fire and improving efforts to deliver humanitarian aid. He demanded anonymity because he is not authorized to discuss the statement before its release. AP
FRENCH PREXY VOWS TO LOWER TAXES IF GROWTH IS SUFFICIENT
HENZHEN, China—Chinese tech giant Huawei wants Americans to start thinking of it as a stylish smartphone brand. Huawei Technologies Ltd., which pulled out of the US market for network switching gear four years ago due to security fears, became the No. 3 global smartphone seller last year and passed Apple in China. This year it launched a new flagship smartphone, the P9, and is positioning it to compete with Apple and Samsung. “China has yet to create a highend consumer brand. We want to take that goal onto our shoulders,” Eric Xu, one of Huawei’s three rotating co-CEOs, told industry analysts at a meeting in April. To do that, Huawei must succeed in the United States the second- largest market for handsets after China, accounting for onesixth of global sales, according to industry analysts. There, it starts with almost no market share and a name that consumers, if they know it at all, might associate with anxiety about possible Chinese spying rather than technology and style. “It is more difficult than any other market they have ever entered,” said Nicole Peng of research firm Canalys. “I don’t think they have concrete plans yet.”
Delays
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OUTSIDE the United States, the company is cranking up a global marketing campaign for the P9 featuring Hollywood stars Henry Cavill and Scarlett Johansson. For markets from Bangladesh to Mexico, it has recruited pop singers and football teams. It partnered with German photography powerhouse Leica to develop the camera on the P9. The company has yet to say when it might sell the Androidbased P9 to Americans or exactly how it will rebuild its US presence. “We’re definitely very patient with the US market,” said Joy Tan,
Huawei’s president for communications, when asked how it planned to connect with buyers. “We hope these phones will be accepted by American consumers.” To meet its ambitious sales growth target of 30 percent a year, Huawei must increase its US market share to double digits from below 2 percent now, said Peng of Canalys.
Deep understanding
HUAWEI, pronounced “Hwah’way,” has big resources to back up its aspirations. It made a 36.9 billion yuan ($5.7 billion) profit last year on sales of 395 billion yuan ($60.8 billion). That was equal to just one-quarter of Apple Inc.’s sales, but Huawei spent $9 billion on research and development to Apple’s $8.1 billion. Huawei shipped 108 million handsets last year, the first Chinese company to pass the 100 million mark. That is a distant third behind Samsung Electronics Ltd.’s 325 million handsets and Apple’s 231.5 million. The company headquartered on a leafy campus in this southern Chinese tech hub adjacent to Hong Kong beat Apple and Samsung to market with a camera equipped with side-by-side lenses, one in black and white and one in color, that it says produces clearer images. The handset is slimmer than the iPhone 6s or Samsung’s Galaxy 7, but its screen is bigger than the Apple’s. Huawei’s phones now are sold in the US only through its web site. But it has a potential opening with phone carriers that are the main sales channel and want more products, according to Gartner analyst Tuong H. Nguyen. Its “deep understanding” of mobile technology “could be leveraged for quick product launches of good quality products,” Nguyen said in an e-mail. That depends on overcoming any lingering security fears.
Security threats
THE US market for Huawei’s network gear evaporated in 2012 after a congressional panel deemed Huawei and Chinese rival ZTE Corp. potential security threats and recommended Americans avoid doing business with them. The previous year, a government panel forced Huawei to rescind its purchase of a small California computer company. “This makes it difficult for Huawei and other Chinese vendors to penetrate this market,” Nguyen said. Huawei rejects accusations it might facilitate Chinese spying and says American critics have failed to present evidence to back them up. The company is privately held, but has begun releasing financial results in hopes increased transparency will ease Western security concerns. For its part, ZTE has been making a quiet US comeback in smartphones. Its market share grew to 4 percent last year, according to Canalys. It is competing with lower prices, not going after the brand-conscious premium tier where Huawei will face formidable competition from Apple and Samsung in their biggest market.
Lifeless, soulless
FOUNDED in 1987 by a former military engineer, Huawei became the first Chinese supplier to break into the top ranks of a technology industry, where it competes with Nokia Corp. and Sweden’s LM Ericsson in network gear and wireless base stations. Employees joked that, operating behind the scenes for its first two decades, it was the biggest company no one ever heard of. Huawei’s priority this year is a marketing campaign to “address the No. 1 issue that many people don’t know the company—especially in Western countries,” said Glor y Cheung, president of marketing for its Consumer Business Group. AP
PARIS—French President François Hollande has promised he will lower taxes next year provided the state has sufficient leeway. The tax cut will apply on household incomes “if growth recovers,” Hollande told Europe 1 radio on Tuesday. The decision will be taken during the summer, he said. Hollande said France’s growth might reach 1.6 percent in 2016, slightly better than last year. France’s GDP grew by 1.3 percent in 2015, the state statistics agency Insee announced as Tuesday. AP
U.K. RURAL POLICE FEAR BEING ‘SITTING DUCKS’ IN TERROR ATTACKS LONDON—Rural police in Britain are warning they’d be “sitting ducks” in a terror attack because there aren’t enough trained firearms officers in isolated areas. A police federation leader, John Apter, says firearms officers could be as far as 110 kilometers away in an emergency. Such areas include potential targets such as power plants and oil installations. Britain’s government has announced that it will train more firearms officers in light of attacks in France and Belgium. AP
RUSSIA SAYS NO IMF AID UNLESS UKRAINE PAYS DEBT MOSCOW—Russia says it won’t support a much-needed International Monetary Fund aid package for Ukraine unless it stipulates a debt repayment to Russia. Ukraine says it will not return $3 billion to Russia that a previous government borrowed in 2013, because Moscow refuses to agree to terms already accepted by other international creditors. Russia insists this was a sovereign debt that should not be covered by terms offered to commercial lenders. Russian Finance Minister Anton Siluanov said Moscow would insist the debt repayment be stipulated in the new aid package for Ukraine. AP
WORK AT IRAQ GAS PLANT RESUMES AFTER I.S. ATTACK BAGHDAD—Iraq’s Oil Ministry has resumed work at a natural gas plant north of Baghdad, two days after a coordinated dawn assault by Islamic State militants left at least 14 dead. Deputy Minister Hamid Younis says work at the plant’s three production lines returned “to normal levels” on Tuesday in Taji. The town is about 20 kilometers north of Baghdad. Younis says the plant was back to full capacity of producing 30,000 cooking gas cylinders a day. He says Sunday’s attack only damaged two gas storages and a few pipelines.
FRENCH ROADS BLOCKED OVER NEW LABOR LAW PARIS—Truckers are blocking highways around France to protest longer working hours in a new labor bill, but President François Hollande says he won’t abandon the contested reform. France is facing a week of new strikes and other union action against the bill, which has met fierce resistance in Parliament and in the streets. Truck drivers joined in the protests on Tuesday, blocking roads around Marseille and the western cities of Nantes and Le Mans. They fear a drop in income because the bill cuts overtime pay.