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  • Recommended: Report: Chinese army tied to widespread US hacking
  • Recommended: Chinese official booted after account of lurid affair emerges
  • Recommended: In debt or jobless, many Italians choose suicide
  • Recommended: Carnival-like atmosphere in Myanmar ahead of election

World Blog provides a dynamic look at world events and trends from NBC News correspondents, producers, and bureaus around the world.

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  • 19
    Feb
    2013
    6:38am, EST

    Report: Chinese army tied to widespread US hacking

    Carlos Barria / Reuters

    A general view of 'Unit 61398,' a secretive Chinese military unit on the outskirts of Shanghai on Feb. 19. The unit is believed to be behind a series of hacking attacks, a U.S. computer security company said, prompting a strong denial by China and accusations that it was in fact the victim of U.S. hacking.

    By Ed Flanagan, Producer, NBC News

    BEIJING – A group of hackers linked to the Chinese military has stolen reams of sensitive data from more than 100 prominent American companies and organizations, according to an explosive new report.

    “The details we have analyzed during hundreds of investigations convince us that the groups conducting these activities are based primarily in China and that the Chinese Government is aware of them,” U.S. computer-security firm Mandiant Corp. said in a 74-page report released on Tuesday.

    The story was first reported by The New York Times.

    One group originating from China that Mandiant had been tracking since 2006 and identified in the study as “APT1” allegedly swiped data from 141 companies in 20 industries ranging from aerospace to telecommunications, according to the report. More than 110 of those companies were American, according to Mandiant.

    Mandiant said that the data suggests that the hacker group was either working for or sponsored by China’s People’s Liberation Army. Indeed, according to the organization’s information, APT1’s activity originated from a People’s Liberation Army cyberware division known as “Unit 61398.”

    “Our research found that People’s Liberation Army (PLA’s) Unit 61398 is similar to APT1 in its mission, capabilities, and resources,” it said, according to the report.  “PLA Unit 61398 is also located in precisely the same area from which APT1 activity appears to originate.”

    Mandiant said that the hacking originated from a drab 12-story office building on the outskirts of Shanghai. Hundreds, maybe even thousands, of operatives performed covert corporate espionage and extracted trade secrets, blueprints, pricing data and other corporate information from countless American servers from the innocuous tower, according to Mandiant.

    The Wall Street Journal and The New York Times reported on Thursday that Chinese hackers repeatedly penetrated their computer systems. NBC's Pete Williams reports.

    The hackers used techniques like “spear-phishing” -- using spoof emails to trick users into granting access to internal servers --demonstrating a strong proficiency in the English language and advanced understanding of computer security and network operations, the organization said.

    Media blackout
    Though the story exploded on Twitter and in the foreign news media, it has hardly made any waves in China. Twitter has long been blocked in the country and foreign media companies that broadcast on the mainland like CNN were blacked out when the report was mentioned on air. 

    Coverage of Mandiant’s report was also absent from Chinese news websites, but some discussion of the report could still be found on China’s Twitter-like service, Weibo.

    “Chinese hackers are so capable! I always thought Americans are very powerful!” exclaimed one user.

    “Reports by foreign media cannot be fully trusted,” warned another user, “but there must be something.”

    Related: Wall Street Journal infiltrated by Chinese hackers

    This was a sentiment partly shared by China’s Foreign Ministry spokesman, Hong Lei, who responded today to questions about the hacking report by calling them “groundless” and reiterating the government’s unwavering position on the matter.

    “To make groundless accusations based on some rough material is neither responsible nor professional,” he said, before noting that China was also the victim of hacking attacks.

    Hong also argued that the new evidence provided by Mandiant and the New York Times will not withstand closer scrutiny.

    But China’s cyber activities have been under increasingly closer scrutiny in recent weeks, as a slew of news stories have come out about Beijing’s reported hacking ambitions. Last month, the New York Times reported that its own servers had been attacked by hackers originating in China, possibly in response to an embarrassing expose it published showing the hidden riches of out-going Chinese premier, Wen Jiabao.

    While the White House has largely remained silent on the hacking issue -- President Barack Obama mentioned hacking in his State of the Union but did not specifically cite China -- the government has been noticeably increasing efforts to strengthen cyber security.

    Last week Obama issued an Executive Order calling for the improving of critical infrastructure tied to cyber security. That the move came on the eve of the publication of two similar exposes -- last week Bloomberg printed another story demonstrating PLA hacking of American systems -- suggests the administration could be taking a long called for tougher stance on Chinese hacking by “naming and shaming” known mainland hacking groups.  

    NBC News' Le Li contributed to this report.

    Related:

    Congress urged to probe Chinese cyber-espionage

    Internet Explorer zero-day exploit linked to China

    476 comments

    Big brother getting snooped on by other brother ?

    Show more
    Explore related topics: new-york-times, hacking, featured, ed-flanagan
  • 18
    Jan
    2013
    3:57pm, EST

    Chinese official booted after account of lurid affair emerges

    By Ed Flanagan, Producer, NBC News

    BEIJING — The rise of new Chinese leader Xi Jinping last November has not been good for mainland officials caught with their pants down.

    In recent months, a slew of low-level Communist officials as well as a few high ranking ones —most notably the vice party chief of the southwestern province of Sichuan, Li Chuncheng — have been exposed by local media and dismissed from their positions after their sexual peccadilloes came to light.



    Follow @NBCNewsWorld

    The latest senior official to be toppled due to a sex scandal, Yi Junqing, was a vice minister in charge of China Central Committee’s Central Compilation and Translation Bureau.

    His dismissal was announced Thursday in a one-sentence statement by Chinese state media, which simply noted he had been "removed from post for 'improper lifestyle.'" 

    The terse release by the state-run Xinhua news service belied the expansive and often lurid claims that have flooded the Web about Yi’s sexual trysts. Yi was seemingly exposed by his alleged mistress, Chang Yan, who posted a 120,000 Chinese character essay online detailing the sex, money and gifts exchanged over many months.

    Though many of the affair’s particulars read like the cliché-ridden narratives familiar to many Chinese who have followed the adventures of officials over the years, this case is unique in that it shows the lengths to which many in China go to secure coveted ministry jobs, and the economic and social security that comes with those jobs.

    Chang, 35, a married native of China’s Shanxi province, was a visiting post-doctorate student at the Translation Bureau and had aspirations of landing a job there once her studies were completed.

    Earning employment at the bureau’s Beijing office — and thus the proper permits needed to bring her husband from Shanxi to live and work in Beijing —would require the authorization of Yi, who ran the bureau.

    According to Chang’s account, the price for that approval turned out to be steep, both morally and financially.

    "I was trying to figure out what he wants, money or me," Chang wrote in one excerpt translated by the U.K.’s Telegraph newspaper. "There is no free lunch if I wanted to work for the bureau. I knew there was a price to pay to work for the bureau. I had already paid 10,000 yuan [USD$1,600]. He said he would take two months to get me the job and then he would invite me."

    Besides giving in and becoming Yi’s mistress, Chang writes that she paid $10,000 in total to Yi to secure this government position. Yi’s failure to deliver on that job led Chang to post details of the sordid affair on her private blog, she said.

    That someone would sleep with a potential boss or even pay for a position is of no surprise in China, but to have it written about so openly sparked an uproar online.

    Despite censors erasing the story on Chinese websites, news of the essay soon spread on the Web.

    On China’s Twitter-like service, Weibo, the affair became a hot topic Friday.

    A post by Chang on her blog — where the original entry was quickly erased — seemed to suggest that the story had been written as a piece of fiction.

    "In my spare time I put together a work of fiction," Chang wrote on her blog entry. "I suffered serious depression... and regularly sank into a state of delusion and even fantasy."

    Weibo users overwhelmingly dismissed the confession as forced and condemned Yi for his corruption.

    "Rumor has again proven to be truth," wrote one user.

    "If we got rid of officials like Yi who had these types of affairs, we’d have to eliminate 99.9 percent of them!" declared another.

    Regardless of whether her story is true or not, Yi’s dismissal Thursday shows the lengths to which China’s ruling Communist Party appears willing to go in order to maintain its legitimacy and supremacy.

    More news from China from NBC News' Behind the Wall

    NBC News' Le Li contributed to this report.

    59 comments

    Actually, the U.S. is way ahead. We elect Senators who play footsy in the john.

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  • 10
    May
    2012
    12:42pm, EDT

    City divided by disgraced Communist leader's legacy

    The murder of an English business man and corruption scandal, involving one of the China's most powerful men, has gripped the country. NBC's Ian Williams reports.

    By Ed Flanagan, NBC News

    CHONGQING, China – Everywhere you go in Chongqing, you can see traces of the complicated legacy of Bo Xilai, the former Communist party chief who ran this municipality of 30 million people until scandal derailed him. 

    At one time destined for a top post in China’s highest echelon of power, the standing committee of the politburo of the Communist Party, Bo aggressively poured money into this municipality in pursuit of his populist agenda.

    To drive through the windy roads that snake around this hilly metropolis is to see a city in constant transformation. Towers of low-income housing complexes dot the skyline. These social housing projects were meant to address a major national issue: the lack of affordable housing, and provided homes that cost just a few hundred dollars a year to rent. And Bo had gingko trees, said to be one of his favorites, planted across the city.

    But these city improvements came at a cost: His heavy investment in capital construction projects forced the city to borrow so much money to pay for it that Chongqing owes $20 billion to the China Development Bank, according to a news report on Wednesday. The tree planting saddled the city with a $1.5 billion bill just for 2010 alone.  

    The improvements weren’t the only controversial aspect of Bo’s reign over this important gateway city to the western half of China, and since his demise his critics have stepped out of the shadows to talk about the darker side of life in what had become the former leader’s personal fiefdom.


    Told a Bo joke, got a year in a labor camp

    In Chongqing, NBC News spoke with Fang Hong, a 51-year-old former forestry officer who made news earlier this week when he filed an appeal with a local court seeking compensation for what he alleged was an unfair sentence he served at a labor camp.

    According to Fang, he was imprisoned for posting a two-line joke about Bo on his microblog that quickly went viral. Soon after, Fang said he was dragged in by police for questioning and later brought before a police tribunal where he was sentenced for “fabricating facts and disturbing public order.” 

    Fang served his sentence at a labor camp where he said he was forced to assemble thousands of Christmas ornaments for export for one year.

    Released earlier this year, Fang was emboldened by the criticism that has shrouded Bo following his high-profile falling out with his vice-mayor and former police chief, Wang Lijun, who famously sought refuge at the American embassy in Chengdu. That move by Wang sparked an international political scandal that now includes a murder mystery. Bo’s wife, Gu Kailai, is a murder suspect in the death of British businessman Neil Heywood; Bo has been officially disowned by the ruling Communist Party and has disappeared from public view.

    Ed Flanagan / NBC News

    A crowd gathers around Fang Hong in Chongqing to hear his story on Tuesday.

    Boisterous debate on Bo
    Fang agreed to do an interview with NBC News on an outside promenade with commanding views of Chongqing’s skyline and the mighty Yangtze River below. Fang spoke confidently, eager to tell his story about the deprivations he faced while interned at the labor camp.

    Between the presence of a foreign camera crew and his loud denouncements of Bo Xilai, Fang quickly drew a crowd of onlookers.

    The first indication that things were going to get contentious with the crowd was when one short, middle-aged man standing next to the camera started muttering under his breath as he listened to Fang. 

    Taking jagged drags from his cigarette and nervously flicking ash between puffs, the man’s voice rose incrementally to voice his protestations of Fang’s opinion about Bo. Those near to the man shushed him as they strained to hear what Fang was saying, but after one particular statement, the man clearly had enough.

    “That’s bull---! Bo Xilai has done so much for Chongqing!” bellowed the man as he waved his cigarette at Fang.

    The crowd erupted into a loud, boisterous debate on Bo, prompting NBC News correspondent Ian Williams to wrap up the interview so that Fang could quickly leave with his lawyers.

    But before he left, Fang feistily told the man what he thought of his opinion, triggering a shouting match. One of Fang’s lawyers and some of the crowd had to separate the pair.

    David Lom / NBC News

    Angry pro-Bo Xilai supporter voices his opinion to the crowd in Chongqing.

    ‘Since Bo Xilai took power I feel more secure'
    Not everyone had negative feelings about the disgraced former party chief.

     One older woman in the crowd said:, “Before, I was worried to wear earrings because I was worried I’d get robbed, but since Bo Xilai I feel more secure seeing more police on the streets.”

    Finally, a line of security guards rolled up and broke up the crowd. The guards were not forceful and they exchanged a few knowing nods with the throng of people who were loudly voicing their support for Bo.

    Bo’s fall has clearly given his critics the opportunity they’ve long desired to voice their criticisms of him.

    However, despite the accusations that paint Bo’s Chongqing was something akin to a modern-day Tammany Hall, the populism and perhaps most importantly, the pride he instilled in this mega-city suggest his popular legacy may last far longer than Communist Party officials would like.

    As one driver told us, “Yeah, Bo might have been corrupt, but at least he did something for us – which is more than those corrupt officials who do nothing at all.”   

    NBC News’ Bo Gu contributed to this report.


    Follow @msnbc_world

    10 comments

    I guess the same could be said about Hitler; but I think most people in the world agree that he was a piece of crap. All politicians are corrupt, some are just way worse than others.

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    Explore related topics: china, politics, scandal, featured, chongqing, bo-xilai, ed-flanagan
  • 17
    Apr
    2012
    5:28pm, EDT

    Despite launch failure, North Korea celebrates military-style

    By Ed Flanagan, NBC News

    Ed Flanagan/NBC News

    At a massive military march in Pyongyang, North Korea on April 15, it was noted a number of times that the female soldiers actually seemed to march straighter and cleaner than the male columns. Their shrill shout to attention always caused you to focus on them, regardless of what you were doing at the time.

    BEIJING – After more than a week in Pyongyang to cover what ended up being North Korea’s failed missile launch, the NBC News team that was covering the story – Chief Foreign Correspondent Richard Engel, producer Ed Flanagan and cameraman David Lom – have left the reclusive country.

    But they still had some photos to share from the various patriotic events they were taken to by their North Korean minders as part of the foreign press corps.


     

    Ed Flanagan/ NBC News

    The rows and rows of soldiers in the bleachers at a mass meeting of soldiers from North Korea's armed services in Pyongyang on April 14 was a spectacle that showed off North Korea's military might and unity behind its new leader, Kim Jong-un.

    From the unveiling of massive 50-foot-tall statues of former leaders Kim Il-Sung and Kim Il-Jong to a large military parade, to regular North Koreans snapping family photos, see some of the team’s photos of North Korean pageantry below.

     

    Ed Flanagan/NBC News

    We saw this little girl being fussed over by her father before a family photo next to a monument on Reunification Street in Pyongyang, North Korea on April 16. The girl later erupted into laughter when cameraman David Lom stuck the videocamera in her face.

     

    David Lom/NBC News

    'Festooned with medals' was how NBC's Chief Foreign Correspondent Richard Engel described the military officers at the massive military rally in Pyongyang o April 14.

    Click here to see another view of the military parade in Pyongyang on April 15 - what it looked like from outer space. It was so big that columns of soldiers could be seen from a satellite photo.

     

    Ed Flanagan/ NBC News

    At 50 feet tall and made of bronze, the two statues of North Korea's former leaders Kim Il-Sung and Kim Jong-il were colossal. Bathed in the dusk light when they were unveiled in Pyongyang, North Korea on April 13, 2012, they were quite simply a sight to see.

    Ed Flanagan/ NBC News

    When the last military vehicle finished rolling by during the massive military parade in Pyongyang on April 15, adoring civilians pushed through to the edge of the square, cheering for new leader Kim Jong-Un and waving flower wreathes.

    Ed Flanagan/ NBC News

    To our surprise and pleasure, when we arrived at the banks of the Taedong River in Pyongyang for the start of the fireworks display planned to commemorate the 100th anniversary of the birth of President Kim Il-Sung on April 15 we found thousands of civilians waiting for the event to start. It was a rare chance for NBC's David Lom to get shots of North Koreans from outside a bus window.

    See more striking pictures from North Korea in PhotoBlog.


    And a slideshow: North Korea continues celebrations after failed missile  

    8 comments

    It is very disheartening to see the world we live in today in so much turmoil and war. Did you know that Isaiah 2:4 says “And he will certainly render judgment among the nations and set matters straight respecting many peoples. And they will have to beat their swords into plowshares and their  …

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  • 10
    Apr
    2012
    3:20pm, EDT

    N. Korea's 'unconvincing' answers to satellite questions

    David Guttenfelder / AP

    Ryu Kum Chol, deputy director of space exploration in the Department of Space Technology of North Korea, speaks to the international media in Pyongyang, North Korea on Tuesday.

    By Ed Flanagan, NBC News Producer

    PYONGYANG – Officials from North Korea’s Space Technology Committee held a special press conference for journalists today in the capital, Pyongyang. Among the topics discussed: Ongoing questions regarding the possible arming of North Korea’s rockets and the country’s new five-year plan for space.

    NBC News sat down after with 22-year NASA veteran and NBC Space Consultant James Oberg to talk about what we learned from this press conference and what questions remain.

    Q: What questions did you have coming into this press conference with the North Korea Space Technology Committee?
    A: Perhaps the most interesting one for me was how soon after launch they’ll have success or failure in the form of a radio signal from the satellite. The North Koreans said they couldn’t answer that one.

    That puzzled me because the primary responsibility of flight control is knowing when to expect indicators of success or failure like receiving a radio signal. Maybe they were just officials and not workers who care about the details.

    The other burning question for me was when the satellite was actually going to be loaded onto the rocket and what else might be underneath the payload shroud [nose cone of the rocket]. What they’ve told us about the payload is only about 25 percent of what we think a rocket can actually carry.

    They’ve pulled back so much of the secrecy – which is nice – that leaving this one area of secrecy almost underscores the mystery: Is there anything else under that nose cone.


    Q: Did you have these questions answered?
    A: They gave me answers, but the easy proof for their answers, which would be pictures of them loading the satellite, we haven’t seen. I didn’t ask today, but I want to ask for the drawings of the satellite in orbit to see how the solar panels on the satellite unfold or if they do at all.

    In regards to the timing of the radio signal and how other radio amateurs around the planet could help detect these signals, they said they would answer tomorrow [North Korean officials told journalists they would be able to visit the Payload Control Center in Pyongyang Wednesday].

    I didn’t expect any usable answers, so I didn’t bother to ask about the possible military value of the rocket, but many journalists did.

    The only thing we found out from the North Korean answers was how sloppy and unconvincing their protestations of innocence were. It doesn’t make them guilty of having a weapons-related intent, but they missed the opportunity to convincingly refute that global concern.

    North Korean space officials say they will go along with a planned rocket launch this week.  NBC's Richard Engel reports.

    NBC's Richard Engel answers reader questions from North Korea

    Q: If you were a North Korean official today, how would you have handled the outside suspicion of this satellite launch actually being a ballistic test?
    A: I would have anticipated exactly that question and prepared an answer that was credible to skeptical experts instead of to their obedient public. For me credible is not just 90 percent transparency, but 100 percent.

    The persistence of non-transparent aspects of this launch process seems unnecessary if there is nothing to hide. All it does is fan suspicions rather than soothing them.

    Q: Anything surprising or big revelations for you from this press conference?
    A: No technical surprises for me. But I was dismayed that when confronted with questions regarding previous satellite launch failures, their officials loyally proclaimed they were successful despite all independent evidence to the contrary. The officials had a chance to walk away from the question, but instead twice confronted it with assertions that the rest of the world’s space experts consider false.

    NBC's Richard Engel visits a state-run apple orchard, a breeding house for turtles and an apple juice factory.

    In my mind this is no way to encourage trust. As someone who is here to judge the credibility of the North Korean’s statements, I was ready to look forward and not back at previously discredited propaganda claims. But they just couldn’t let them go and so it weighed heavily in my own assessment of their credibility and in any future statements they make without strong evidence. 

    The other big revelation for me was that the North Koreans said they are planning to work on a more sharp-eyed earth observation satellite next.

    Q: Let’s talk about that. The North Koreans announced a new five-year plan that included, as you said, an improved observation satellite and also a stunning declaration that they were actually developing a larger rocket. What did you make of these new announcements and how important are they?
    A: They gave a plausible explanation for their focus on earth observation satellites, which was due to a series of environmental disasters beginning in the mid-1990s. But this first satellite seems almost too little, too late to be of much help when one considers you can get the same data this satellite could provide for cheaper and sooner from commercial services.

    The larger rocket is also consistent with their announced intention to launch satellites for other countries. Rocket launch services are one of the few things North Korea can export that the rest of the world wants. Unfortunately, the Russians already dominate that portion of the space market and they won’t likely yield customers easily.

    As for the military threat of any of North Korea’s rockets, including this hypothetical new one, you have to realize that even having only a handful of weaponized versions of these rockets would be intolerable to other countries like the United States.

    But in defense of the North Korean’s current rocket, they have spelled out characteristics that a non-threatening rocket should have. Now they have to live up to those standards that they themselves have set. 

    Q: Is this particular mission a logical step for a first satellite? 
    A: I’ve come to realize that it is. The North Koreans have given a reasonable justification for the kind of mission they say this satellite is performing. They are still building a rocket that seems bigger than they need and are spending more time and effort than if they had sought outside help, but their governmental ideology has once again trumped practicality.

    We’re still not sure if this launch isn’t doing other undisclosed experiments, including those associated with future weaponization and they have not provided enough transparency to eliminate that possibility.

    Q: In our previous discussion after you visited the Sohae launch site, you expressed reservations about the authenticity of the satellite. Does this press conference change any of your views on the matter?
    A: The press conference not so much, but I’ve done some online research and consultations with associates around the world and I’m now satisfied that what they showed us is within the realm of possibility of a plausible design.

    My other concern about the late installment of the satellite onto the rocket was directly addressed with an entirely plausible answer: They didn’t even realize they were out of step with standard practice. They simply did not how other space agencies schedule that type of installation. When the North Koreans say they didn’t realize how other countries did it, I can believe it.

    Q: Have the North Korean’s explanation about the peaceful application of the satellite changed your view about the potential weaponization of this missile?
    A: No, just carrying a peaceful satellite does not negate the weaponization potential of the carrier rocket. They seem to think that having a peaceful satellite makes them immune to all charges of weaponization, but it doesn’t. The rocket science says this booster design retains weapons potential regardless of what you put on top of it.

    More from msnbc.com and NBC News:

    • Syria shells Hama on cease-fire deadline day
    • Amid Iran tensions, neighbor becomes den of spies
    • A rare peek inside North Korea
    • Tunnel linked to looming North Korea nuclear test? South Korea thinks so
    • Leftist rebels kidnap natural gas workers in Peru

    Follow us on Twitter: @msnbc_world

     

    64 comments

    Science is neither good nor bad, it is simply knowledge. How that knowledge is utilized is up to those in control of it, and their moral and ethical values. Whether it is rocket science (N. Korea) or nuclear science (Iran), how they are used is up to those in power, and their track records are not e …

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    Explore related topics: satellite, missile, north-korea, rocket, featured, ed-flanagan, james-oberg
  • 11
    Apr
    2012
    3:46pm, EDT

    North Koreans desperate for Western approval of launch

    The country's satellite is poised to launch to commemorate the 100th birthday of Kim Il-sung, but there are some doubts over whether it will ever go into orbit. NBC's Richard Engel reports.

    By Ed Flanagan, NBC News Producer

    PYONGYANG, North Korea – With just one day before North Korea’s expected controversial satellite launch to commemorate the 100th birthday of “Great Leader” Kim Il-sung, the government invited journalists to view its Mission Control – the nerve center where the rocket and satellite will be monitored and guided from.

    Coming after a press conference the day before, this was likely our last preview of preparations before launch. It was important because it gave us a critical view of the real operators of the satellite. 

    Following the visit, NBC News sat down with 22-year NASA Mission Control veteran and NBC space consultant James Oberg to discuss what he learned from this visit and his expectations for the launch.

    First off, what were your impressions of the Control Center? Was it as you expected it to be?
    It looked like a real control center – from the outside as well as the inside. First the communications links – two communications domes and a pretty hefty antenna farm on top of the hill – looked real, and inside the displays appeared logical and made sense to me.

    Digitalglobe / via AFP - Getty Images

    This DigitalGlobe satellite image obtained April 11, 2012, shows an image of the Tongchang-ri Launch Facility in North Korea. This image was taken April 9, 2012.

    One difference: There was a big sign outside the building here that I found out didn’t actually say Mission Control Center; instead, it said, “Everyone follow the leadership of the Great General.”


    The director of the center made a short speech and then specifically called for you to come to the front of the press scrum to witness everything. What was that like for you?
    It was certainly flattering, but clearly also an attempt at manipulation because he asked me to endorse his claim that the satellite launch was peaceful. Still, I recognized it as a gesture of respect for the American space program, for which I am the only representative to have ever visited the North Korean space program, though completely unauthorized officially by NASA.

    For a while there, it seemed like there were as many North Korean cameras focused on you as foreign ones. Did you expect all that attention today?
    No, I didn’t. But when you think about it and realize how desperate the North Koreans are for the appearance of Western approval, they’re bound to look for it wherever they can get it. Just the presence of this press corps, not just me, is interpreted as a sign of foreign respect for the program.

    Some might view your presence at the launch center as a convenient propaganda prop for their claims. How do you respond to that?
    They certainly felt it was. But I was able to use the visibility to raise some questions they had not yet answered to my satisfaction. I stressed that the boasted transparency of the North Koreans was nowhere near complete and that we didn’t have reliable insight into what was under the nose cone of that rocket.

    The director joked about letting one journalist ride on the rocket. I told him that photographs of the installation of the satellite would be enough to dispel lingering suspicions, including in my own mind. He promised to provide them, but I’m not holding my breath.

    One of your primary questions over the last couple of days has been how soon after launch would we start to receive radio signals from the satellite to confirm its success. Do you feel you got an adequate answer on that?
    Absolutely. The director gave an answer that was totally consistent with my own calculations that it might be up to 12 hours before they get a good solid communications link with the satellite.

    In the meantime, he enthusiastically agreed that amateur radio listeners around the world should try to pick up the signal, which he assured us would be broadcast continuously. Of course, it’s to their advantage that a foreign expert confirm the first proof of the satellite’s successful launch since controversy remains over the success of their [previous] satellite launch, which they still insist was successful against all other evidence.

    At one point you asked where the equivalent of your old console would be in the control room and he pointed to the orbital information station in the room, a station you manned for many years. That was pretty impressive.
    Yeah, I got a kick out of that. But it’s too bad I couldn’t talk to the actual operator. Because there are still interesting – to me, at least – questions about some third-stage rocket steering maneuvers they seem to need during launch to get into their target orbit. We could have had a real geek-level conversation that would have blown the interpreter’s mind.

    NBC’s Richard Engel, as well as other Western journalists, continued to ask North Korean officials about the military application of these rockets, but the answers were at times exasperated and sometimes sarcastic. What do you make of it?
    We’re really engaged in dual disconnected monologues here, not a real conversation. The North Koreans don’t seem to understand foreign objections and act as if their pure ideological correctness deserves worldwide obedience. They’ve dug themselves deep into the true-believer’s self-delusion that disagreement is caused by stupidity and malice, a bad habit that isn’t restricted to this corner of the world. In the West we have a hard time understanding how genuinely crazy so many North Korean projects – such as this satellite – really may be. 

    But isn’t political single-mindedness a plus for advancing a difficult effort such as space exploration?
    It might seem so at first, but I’m beginning to worry that the opposite is more likely to turn out to be true.  An effective safety culture in space, or any other high-tech field, demands disobedience and independent thinking from people who detect real problems that require real solutions.

    But the official North Korean reaction to difficulties looks like resorting to appeals for divine inspiration from their infallible leadership so they can bully reality to “fit” their intentions. I can’t detect any indications of the necessary kind of critical problem-solving and that’s a bad sign.

    Space programs infected by such a pathological culture, whether Soviet-era or NASA pre-Challenger [and pre-Columbia] era, or today’s North Korea, are doomed to encounter major setbacks.  As the bumper sticker warns, when it comes to human fallibility, “Man forgives, God forgives, Nature – never.”

    This visit was likely the last satellite-related site we’ll visit before the launch itself. Any final thoughts before we begin the wait for launch time?
    Opening these facilities to outside observers still strikes me as a bold and risky tactic, which I welcome. We may be able to utilize it for the good.

    As the old song wisely observes, the North Koreans may not get what they WANT from this gambit – foreign approval. But they may get what they NEED – better foreign insight into their motives and decision-making. And that could make it all worthwhile.

    Also for radio enthusiasts around the world, this could be your day to shine. The first people who will get a crack at catching the North Korean hymns the satellite will play to honor Kim Il-sung will be those in Western Australia 20 minutes after launch. About an hour after launch, the Eastern seaboard of the United States will be able to listen in.

    Radio enthusiasts hoping to listen to catch the sounds from the satellite can tune into 479MHz. North Korean officials say they will play music continuously on that frequency.

     

     

    140 comments

    N. Korea should focus on automating farming and feeding her people.

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  • 13
    Apr
    2012
    3:59pm, EDT

    Failed rocket launch? What rocket launch?

    After experiencing a critical failure, there has been almost no talk about the rocket that never entered orbit. NBC's Richard Engel reports.

    By Ed Flanagan, NBC News Producer

    PYONGYANG, North Korea – Quickly after the failed launch of the Kwangmyongsong-2 rocket, two things became abundantly clear: We, the foreign press corps brought in to cover the launch, knew far less about it than our colleagues outside of North Korea, and the only people we would be informing about anything today would be our government-assigned guides/minders.

    Many of the foreign news crews – which have been in Pyongyang for about a week – had been assured multiple times by our minders that we would get the opportunity to witness the launch. Two large video screens installed in our little hotel newsroom late Thursday appeared to validate that belief.

    Between scuttlebutt gleaned from our research and talks with North Korean space officials, many of us believed that our coverage would begin with an early wake-up call Friday morning from our minders whenever they got the word.

    Instead, that wake-up call came not from any North Korean officials, but from NBC’s foreign news desk, prompting us to head down to the newsroom – the only place in the hotel where we can access the Internet – to confirm what was happening.

    But what was there to report? Inside the newsroom, the video screens were blank, and local North Korean TV was not showing any rocket coverage. A section of the newsroom seemingly set-up as a post-launch podium for North Korean officials to answer questions was staffed by a disinterested minder.


    Meanwhile, on Twitter and foreign news websites, initial reports of a botched launch were being followed up with details about the failure: the location of the debris, what the rocket looked like before it exploded and initial reaction from foreign governments on the incident.

    Yet the North Koreans minders were idly chatting among themselves, completely oblivious to the botched launch that just happened, and apparently planning for just another day of guiding us on another highly orchestrated visit through the city.

    The North Korean rocket launch fails as the world is watching. See NBC's Richard Engel first report shortly after learning the news in Pyongyang.

    That sense was confirmed as I ran back and forth between the newsroom and the live shot positions outdoors. “Please be ready to go this morning for a music festival,” said one minder as he cornered me on a trip back to the newsroom.

    “There is no way we’re going on that trip!” I replied. “You know the satellite launch failed today, right?”

    My declaration was met with an incredulous stare before the minder slowly turned around and walked away. It was a scene replayed multiple times as minders, unsure what all the excitement was about, corralled journalists and had the news broken to them.

    This led to a mass exodus of minders.

    North Korea faces rocket reality: Failure is an option

    Ironically though, at the one moment when we the press suddenly had the most freedom we’d had all trip, no one had the means to take advantage and begin covering the North Korean side of the launch.
      
    As the pandemonium of the initial push to break news passed, many of us expected the North Koreans to call some sort of press conference to acknowledge the failure and explain what had gone wrong.

    But the podium remained unused and the pokerfaced North Koreans in the room gave no hint that we would hear anything from the government about the launch failure. A terse statement on North Korean state television had acknowledged the rocket’s flop into the water to the public, but nothing else.

    The lone statement was a great first step toward North Korea becoming a more open and possibly reflects a quiet confidence in the country’s new leader, Kim Jong-un.

    Kyodo / Reuters

    Kim Jong-un (C), current leader of North Korea, reacts after fireworks were released during the unveiling ceremony of bronze statues of North Korea founder Kim Il-sung and late leader Kim Jong-il in Pyongyang on Friday. North Korea said its much hyped long-range rocket launch failed on Friday, in a very rare and embarrassing public admission of failure by the hermit state.

    Unlike his father, Kim Jong-il, who covered up past launch failures, the younger Kim has demonstrated a degree of assuredness in publicly acknowledging the rocket disaster to his people.

    This certainly doesn’t mean that the country is turning over a new leaf – after all, the rocket test stunt itself shows that bad habits die hard, if at all. However, Kim’s concession suggests that this young, new leader may not strictly follow the game plan of his predecessors.

    More from msnbc.com and NBC News:

    Syrians take to streets in first test of truce with Assad regime

    North Korea's rocket breaks up after launch

    Ex-spy chief looms over election in Egypt

    'Fit as a fiddle' Mugabe returns to Zimbabwe after illness rumors

    Aged-nun accused in Spanish baby-stealing cases

    London bans 'gay cure' ads from buses

     

    Follow us on Twitter: @msnbc_world

    176 comments

    I could do better with a $100 rocket kit.

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  • 15
    Mar
    2012
    9:39am, EDT

    Chinese political boss loses face, gets ousted

    In what's being called the biggest Chinese political scandal in years, Bo Xilai, the Communist  Party secretary in Chongqing, was sacked Thursday. NBC's Ed Flanagan reports.

    By Ed Flanagan, NBC News

    NEWS ANALYSIS

    BEIJING – Wednesday’s conclusion of the National People’s Congress seemed to signal the end of Prime Minister Wen Jiaobao’s chapter in Chinese history.

    It’s been widely reported though not yet confirmed that Wen—along with President Hu Jintao—is due to step down later this year. 

    But little did we know Wen would take the opportunity to carry on a tradition enjoyed by his meddling predecessors: publicly shaking up the political field one last time and consequently sparking the biggest political scandal the nation has seen in years.

    At his final press conference yesterday, the senior Chinese leader caused a stir when he criticized the leadership of Chongqing, one of the world’s largest municipalities, for its handling of the Wang Lijun incident, when the former deputy mayor of the western megacity allegedly tried to defect to the United States.


    Shattered leadership dream
    The comment was viewed as an ominous sign for the future of Chongqing’s Communist Party secretary, Bo Xilai -- Wang's former boss. Bo, a tough but charismatic crime-fighting politician rapidly became a national figure through self-promotion more often associated with Western politicians.

    In particular, Bo’s ruthless crackdown on organized crime in Chongqing and his promotion of Communist rhetoric and values through vehicles like “red songs,” soon gave him a national following that seemed to position him for ascension to the ultimate seat of power: China’s nine-member standing committee, which will be selected later this year.

    That dream shattered this morning.

    Fall from grace: China leadership contender Bo Xilai sacked

    China’s state news service, Xinhua, issued a terse statement announcing that Bo had been replaced by Zhang Dejiang – currently vice premier of China’s state council – as Chongqing Party chief.

    The announcement of Bo’s fall from grace was a bombshell for China’s public, who rarely get such a clear look at the political battles Chinese leaders prefer to fight behind closed doors. Bo’s dismissal quickly became the top trending topic on China’s Twitter-like service, Sina Weibo, generating an astounding 4 million tweets in the hours following the announcement.

    While some netizens were quick to mock the alleged corruption of a supposedly virtuous politician, others were quick to defend Bo, whose campaign against organized crime captured the imaginations of disenfranchised people nationwide.

    “I just want to have a safe and stable life… Bo gave us hope,” wrote one person on Weibo.

    Si Weijiang, a Chinese lawyer, countered,  “There's no need to be happy....Sometimes people do need what the leftists offer.”

    It’s a dramatic political fall for the 62-year-old Bo, who just weeks before appeared to be on the cusp of becoming part of the Communist Party elite.  

    Ng Han Guan/AP

    Bo Xilai, is pictured at the recently complete National People's Congress. Bo was removed today from his position as Chongqing Party Secretary.

    Rapid rise to top
    The first public sign of faltering emerged when his vice-mayor Wang Lijun spent the night at the U.S. consulate back in February. It was widely believed that he was seeking refuge after coming under a government investigation for corruption.

    Prior to becoming vice-mayor, Wang had spearheaded Bo’s signature political moment: a three-year campaign against criminal gangs in Chongqing that resulted in thousands of arrests and 13 executions. Dubbed the “Smash Black” campaign, the stunt was warmly received by Chongqing’s citizens, who had long bristled at the brazenness of organized crime in the region.

    Despite the acclaim that came with their success in smashing organized crime in Chongqing, the two were not immune to criticism. Like so much here in China, the line between business and governance was blurred, and Wang soon found himself embroiled in an economic war between two local moguls.

    When one of the Chongqing businessmen was arrested earlier this year, the man claimed he had an audio tape of Wang threatening him and warning him to leave the other mogul alone.

    Wang was soon the focus of an investigation that threatened to bring an end to his political career. The very fact that the inquiry was allowed to happen – an act that can only occur with specific authorization from the highest levels of the Communist Party – may have signaled to Wang that his fate was sealed.

    He snuck off to the U.S. Consulate in Chengdu, where both Chinese and embassy officials confirmed he spent the night before leaving on his own accord. However, officials on both sides have declined to comment on what was discussed between Wang and U.S. consulate officials that night.

    Nonetheless, the slightest possibility that Wang might have revealed sensitive secrets about the Communist Party’s inner workings was not only a massive embarrassment to his boss Bo – who had handpicked Wang as his right-hand man years before – but also a crisis that made Bo a potential political liability with China’s greatest economic rival, the United States.

    The incident also opened Bo up to criticism from the ruling elite’s more liberal factions who were outraged by his anti-crime campaign, the manner of which critics say demonstrated a blatant disregard for the criminal process.  In addition, his embrace of leftist policies in everyday life through “red songs,” text messages and a friendly approach to state-owned enterprise helped paint Bo as a polarizing threat to China’s liberalizing voices.

    And it appears that Wen Jiabao may have shared those concerns.

    Charismatic as he is controversial, Bo had been a wildcard with the potential to alter the dialogue in China’s influential nine-member standing committee, which sets economic and social policy for the nation.

    Bo’s dismissal means that a potential voice of opposition to the economic and social map that Wen and Hu have laid the groundwork for over the past eight years has been removed.

    Proving once again that in the world of Chinese politics, national stability reigns supreme.

    NBC News’ Bo Gu and Isabella Zhong contributed research to this report.

    19 comments

    Without a question, Bo Xilai has notable achievements during his career. Formerly, he was the mayor of Dalian and entirely modernized the city, which is now one of the greatest seaports and tourist destinations in NE China.

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  • 9
    Mar
    2012
    4:56pm, EST

    As quick as a tsunami: Chinese pre-fab homes

    Koji Sasahara / AP

    One-year-old girl Rin Yokota, right, is accompanied by her grandmother Tomoko Igari, 63, as they walk in the compound of their temporary housing in Otama village, Fukushima Prefecture, northern Japan on Thursday.

    By Ed Flanagan, NBC News Producer

     
    ICHINOSEKI, Japan – We’re on the Iwate coast of Japan this week, looking back on the devastation wrought here nearly a year ago by the Tohoku earthquake and tsunami that flattened coastal communities and killed nearly 20,000 people.

    The cleanup we have witnessed on our frequent trips back here since the disaster is simply astounding and is a testament to the strength of the communities that remain. In fishing towns like Otsuchi, Kesennuma and Ichinomaki, NBC News has documented the gradual steps to recovery, from search and rescue, to the clearing of rubble, to the sorting and removal of debris from city streets.

    One thing absent in our coverage though: reconstruction.


    My colleague Ian Williams earlier in the week wrote about the issues facing the town of Otsuchi, where 10 percent of the town’s population of 16,000 is dead or missing and nearly 70 percent of the town was obliterated by the tsunami.

    Today, all that stands in much of Otsuchi are the foundations of the buildings that once stood there – skeletal remains of sleepy neighborhoods that once occupied these parts. In the surrounding hills around, small communities of short-term, pre-fabricated homes for the displaced have sprung up, granting a small degree of normalcy to residents who had spent months living in schools, recreation centers and other temporary camps.

    When the government will allow, much less begin, construction of new permanent homes in these areas is difficult to predict. In communities like Otsuchi, the debate seems to be centered on whether residents should be allowed to begin rebuilding now or must the town’s coastal defenses be strengthened before development can begin.

    With many of these coastal towns having disproportionally older populations – a result of the departure of many younger residents to other parts of Japan for work – the desire for quickly built, affordable housing is a popular sentiment among people here.

    It was with that backdrop that I watched a video yesterday released in early January of a 30-story hotel tower being built in China in a shockingly quick 360 hours. 

    Could a 30-story hotel be built in 15 days? The Chinese construction firm Broad Sustainable Building released video to show how they did it.

    Watch on YouTube

    It’s not the first time we’ve seen such feats from China, or from Chinese construction firm, Broad Sustainable Building (BSB). Two years ago, the three-year-old company shocked the world by constructing a 15-floor hotel in two days.

    This time around they doubled down on the aptly named T-30 Hotel.

    Not only that, but they gave viewers a unique look at a style of building construction that has been employed by the West for some time, but with unique adaptions that BSB developed and hope will help launch the style throughout Asia.

    Pre-fab solution?
    BSB’s system of pre-fabrication involves constructing segments of a building in advance at an indoor factory. There the basic building blocks of a modern building – things like ventilation, water pipes and electrical wiring – are pre-installed, allowing for the segments to be uniformly stacked at the construction site and assembled like Lego blocks.

    The savings in construction time is perhaps the most note-worthy thing. An interesting piece done on BSB and its latest feat by the Los Angeles Times quotes one expert on pre-fabricated architecture who noted that such construction techniques can shave a third or a half off building schedules in western countries.

    BSB sliced off between one-half and two-thirds of construction time on T-30.  Not to mention 20 to 30 percent off building costs through reduced construction times and greater efficiencies.

    And since much of the construction is done in the relative safety of the factory floor compared to many stories in the air, BSB’s on-site accidents noticeably dipped.

    Daniel Berehulak / Getty Images

    Elderly Japanese, whose homes were destroyed in last year's tsunami and now living in temporary housing, mingle at a community center in a temporary housing site on March 5, 2012 in Minamisanriku, Japan.

    The company also claims a number of innovations in its designs that would certainly appeal to rebuilding residents in northeastern Japan. After all, the inspiration for BSB’s formation were reconstruction efforts in China’s Sichuan province after an 8.0 earthquake rocked the region in 2008, leveling cities and leaving towns in such disrepair, they were forced to completely relocate.

    According to the video, which was released by BSB, the new hotel is designed to handle earthquakes up to 9.0 on the Richter scale and incorporates design advances like external solar shading, three-stage air purification systems and improved insulation techniques that make the building five times more energy efficient than other Chinese buildings.

    Pre-fabricated building techniques are already in use throughout the affected regions of Japan as a form of temporary housing. In fact, Japan was already moving residents into pre-fabricated houses just eight days after the quake and as of last week there were 52,620 temporary houses built in 911 locations throughout the country.

    However, much of this housing is built on school sports fields and other public spaces – often contracted out for two years before the temporary housing must be disassembled and the space returned.

    That’s a point not lost on the residents we talked to this week. Many living in short-term housing are older and have no meaningful income. So they live off pensions with no realistic means of building or renting new homes.

    To deal with this issue that will seemingly boil over in 2014, Iwate prefecture alone has announced they will construct between 4,000-5,000 permanent public housing units for the displaced.

    Where and when these housing blocks will be built in this nation where land is at a premium is one that will certainly keep urban planners here busy for years to come.

    The lessons learned from the T-30 exercise should not be lost on municipal governments up and down the Iwate coast. Pre-fabricated housing once viewed as a short-term fix can now be the answer to a very long-term problem.

    More from msnbc.com and NBC News:

    • Fukushima plant, before, during and one year after
    • Japanese tourism slowly rebounds year after tsunami
    • Slimy, salty, but tasty: Seaweed revives Japan village
    • Tsunami scientists prepare for next wave
    • Tsunami survivors: Obstacles remain for rice farmer
    • Giant quake like Japan's could hit Pacific Northwest
    • Earthquake experts improve their predictive powers
    • Cook uses recipes to help quake survivors heal
    • One year after Fukushima, Japanese town is frozen in time
    • Japanese tsunami survivor, 79, looks ahead
    • Tsunami Survivors: Struggling to live on, alone
    • Japan Red Cross: Whole year wasted after tsunami
    • Cosmic Log: Hear the soundtrack of a super-quake
    • Nuke pill frenzy fizzles in U.S. as Fukushima fades
    • Photo Blog: Panoramic images, then and now
    • Japan disaster snarls U.S. nuke plant plans

    Follow us on Twitter: @msnbc_world

     

    17 comments

    Chinese government's effort in the reconstruction of Sichuan region after the massive earthquake in 2008 massive earthquake was unmatched anywhere in the world. The 8.0 scale earthquake resulted in the death of around 90,000 people and injuring nearly 363,000, destroying more than 15 million homes,  …

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  • 6
    Mar
    2012
    1:42pm, EST

    High stakes for China iPad dispute

    A man walks past an advertisement of Apple's iPad 2 on Feb. 28 in Shanghai, China. Proview Electronics said it is now seeking to regain worldwide rights to the iPad name and is suing Apple Inc. for alleged fraud and unfair competition, hoping to have a 2009 sale of the trademark ruled void.

    By Ed Flanagan, NBC News

    BEIJING – Apple’s recent market valuation of over $500 billion has invited countless comparisons, even inspiring a website that gleefully chronicles the places and things the tech giant is now valued more than.

    Among other things, Apple is now worth more than the entire GDP of Poland, all the gold in the U.S. Federal Reserve Bank of New York and America’s entire aircraft carrier fleet.

    But is that enough to take the sting out of the $1.6 billion in compensation Proview Technology (Shenzhen) is rumored to be demanding in exchange for settling the thorny dispute over ownership of the iPad trademark in China? 


    Last Wednesday, Guangdong’s Higher People’s Court heard an appeal from Apple after a lower court ruled in favor of Proview and declared them the actual owner of the iPad name in China. 

    The significance of the case has not been lost in Chinese. Both local and foreign media were said to be staked outside the courtroom. In response to greater calls for transparency from the government, Wednesday’s legal proceedings before the three-judge panel were actually live-blogged by the court on a twitter-like service called Tencent Weibo.

    The court now has almost 80,000 followers – but their decision has not been announced yet. According to Chinese law, the time limit for ruling on an appeal is three months. 

    The stakes are high for everyone involved: Apple, Proview, the Chinese government and other Western investors.

    High stakes
    China is Apple’s second largest market behind the United States. It is also where most of its products are made –  including the highly anticipated iPad 3 which some tech-watchers are speculating may be released as soon as tomorrow. 
     
    This court is typically the final word on legal proceedings in China, although Apple could still appeal to the Supreme People’s Court in Beijing. A loss would leave two undesirable options: An appeal to a Supreme Court that is not known for overturning many decisions of its lower court; or settling with the cash-strapped Proview. 

    Alvin Chan / Reuters

    Reporters wait outside the Higher People's Court of Guangdong in Guangzhou on Feb. 29 for Apple's appeal to the higher court in the Proview case.

    For Proview, a company that at one time was an industry leader in the manufacturing of computer displays before falling on hard times, a win or an out-of-court settlement could set the stage for a dramatic revitalization of a company that now counts the Bank of China and China Banking Corp. as creditors. 

    According to a Chinese-language report out last Friday, Proview’s consortium of creditors are said to be seeking $400 million from the cash-strapped company.

    A settlement with Proview may be anathema to Apple; effectively inviting similar copycat suits against them in other jurisdictions, but the alternative of changing the name of a product they’ve already sold 32 million of worldwide is an equally bitter pill to swallow.

    A warning for Western investors?
    The need to legally resolve this issue is also uncomfortable for the Chinese government, which stands to lose politically regardless of who wins the case. 

    Should Proview prevail and receive control of the trademark in China, it would stir up a certain crisis-of-faith among the foreign business community, whose concerns about intellectual property have become louder in recent years.

    Sixty-six percent of respondents to the American Chamber of Commerce’s 2011 China Business Climate Survey said intellectual property rights protection is “very” or “critically” important to their business.

    One U.S. businessman, who declined to be named for this piece, noted that while Apple’s spat with Proview is over the sale of a trademark and not the legal standing of the trademark itself, he would nevertheless be concerned about the strength of his company’s own trademarks in China should Apple lose. 

    “Remember that line from the movie, ‘The Social Network,’ ‘You better lawyer up!’? You bet we have our lawyers looking closely now at all our company’s legal arrangements.”

    It’s an example of corporate skepticism of the legal system here and a growing sentiment among the foreign business community of economic inequality between foreign and domestic companies.

    That’s a sentiment that China’s ruling Communist Party wishes to avoid at all cost. In recent years the government has worked hard to improve intellectual property rights law in the country. They touted them as the Guangdong Higher People’s Court did on its Weibo feed of the court proceedings, inviting China’s web sphere to “witness the progress of intellectual property right protection in China.”

    Ironically, the enforcement of those laws could potentially unravel the goodwill they were intended to build with foreign companies and investors.

    Best for all? Out-of-court settlement
    An Apple victory may mollify Western companies. It will also likely draw the ire of a more nationalist section of the population here that may view it as an example of China serving foreign interests before those of its own companies.

    As unlikely as it may seem that a decision in Apple’s favor could lead to any mass resentment towards the government, in this sensitive time leading up to China’s leadership transition later this year, the Party is hyper-attuned to perceived public discontent.

    So in the meantime, China’s government is quietly pushing through the court’s judges their dream solution to this dispute: out-of-court settlement. At the end of the hearing on Wednesday, the judge apparently gently urged Apple and Proview to consider a private settlement.

    The financial motivations are there for both parties to come to the bargaining table, but Apple’s participation will either require a dramatic change of heart by the company which has refused to come to the table so far or a more pessimistic analysis of their chances in court.

    Either way, you can bet the Apple CEO Tim Cook is thinking twice about his bold earlier statement last month that the company “has more money than it needs.”

    37 comments

    Let's see. $1.6 Billion (with a B) is a pile of money. How much did Apple save by building the iPad in China? Maybe now they will see the advantage to being able to mark their products "Made in the USA". At least they could sleep at night....

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  • 28
    Feb
    2012
    11:42am, EST

    Chinese protester: World Bank will 'ruin China'

    A Chinese protester disrupts World Bank President Robert Zoellick during a press conference in Beijing Tuesday shouting, "this report from the World Bank is poison!" NBC's Ed Flanagan reports.

    By Ed Flanagan, NBC News

    BEIJING – These days it seems everyone has an opinion about what China’s economy needs to do to continue to prosper.

    Yesterday was the World Bank’s turn to give its two cents as it released a new joint-report with the Chinese Development Research Center entitled, “China 2030: Building a Modern, Harmonious, and Creative High-Income Society.”

    The ambitious report attempts to lay out a new development strategy for China that emphasizes a gradual transition to a market economy, serious economic and labor reform and an eventual shift from an economy powered by state-owned businesses to private enterprise.

    It was that latter condition that appeared to be a step too far for Du Jianguo who created a stir during a press conference by World Bank President Robert Zoellick at the bank’s Beijing headquarters Tuesday.

    Du, a self-described “independent scholar of politics and economics,” stood up as Zoellick was talking and began to shout slogans like, “state-owned industry should not be privatized!” and “this report from the World Bank is poison!” 

    He also handed out an essay he had written, aptly titled, “WB [World Bank] Go home with your poison!”


    Privatization debate
    Du was pulled from the room by staff, but continued his protest outside where he claimed that the World Bank was corrupting China’s banking sector so much that it was beginning to resemble what he deemed a terrible role model: Wall Street.

    “The World Bank wants Chinese banks to become like Wall Street,” said Du. “Do they want Chinese banks to turn into liars and parasites?”

    Back inside the conference room, Zoellick acknowledged the intense debate that his bank’s report had generated in China between nationalists and economic liberalizers on the mainland, but defended it by saying that was “the point of any good research report.”

    The debate comes at a sensitive time in China as it gears up for a leadership change later this year and a possible change in economic strategy under presumed future-President Xi Jinping.

    The drive for greater economic liberalization and an increased focus on private enterprise by supporters of the study would come at the expense of expansive governmental support for state-owned enterprises that have become economic titans in China due to access to low-cost credit from state banks and protection from foreign competitors.

    Proponents of the state-driven model argue that state-owned enterprises are a source of national strength and pride and should be protected.

    Not so say others, who argue that private enterprise actually creates more jobs in China and should be nurtured to spur renewed growth.

    Such proponents of economic liberalization will face a tough slog against men like Du, who are unabashed skeptics of the World Bank and made it a point to say so.

    "We have no reason to accept their poison,” said Du later of the World Bank. “After they ruin China, they will ruin the whole world."

    58 comments

    Dont blame the chinese for doing what is good for China. We could learn a lot from them in terms of putting our countries interests first and not cow towing to international companies that will sell us out for a buck.

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  • 23
    Feb
    2012
    5:36am, EST

    Jordan sues for control of his name in China

    A pedestrian passes a branch of Chinese sportswear shop Qiaodan Sports in Shanghai on Thursday. Retired NBA superstar Michael Jordan announced that he has filed a lawsuit in China against Qiaodan Sports Company Limited over unauthorized use of his name.

    By Ed Flanagan, NBC News

    BEIJING – Between Linsanity and Apple’s iPad trademark case, it seems like the only things on people’s minds in China right now are basketball and trademarks.

    Leave it to “His Airness” to elevate that talk to another level.

    Earlier today, NBA legend Michael Jordan issued a statement announcing that he has filed a lawsuit in Chinese court against Qiaodan Sports Company Ltd., charging the company with using his name and playing number without permission.

    “A Chinese sports company has chosen to build a Chinese business off my Chinese name without my permission,” said Jordan in a video statement posted on a special website announcing the suit. "It pains me to see someone misrepresent my identity.”

    “Qiaodan” is a transliteration of the name Jordan has gone by in China since he and the NBA took China by storm in the ‘80s and ‘90s, transforming the mainland into a nation of basketball diehards.


    “It is deeply disappointing to see a company build a business off my Chinese name without my permission, use the number 23 and even attempt to use the names of my children,” Jordan said, referring to Qiaodan’s recent bid to trademark the name of his children in China. He continued by saying, “I am taking this action to preserve ownership of my name and my brand.”

    Jordan’s announcement is a blow to Qiaodan, a Chinese sportswear and footwear manufacturer that has its roots in the 1980s but found tremendous financial success when it changed its name to Jordan’s Chinese moniker in 2000.

    Company: Lots of people named 'Jordan'
    Since that time, Qiaodan has borrowed heavily from the Jordan mystique to drive sales in China. His iconic number 23 is on much of their sportswear and advertisements and equipment often sport a logo which greatly resembles Nike’s iconic “Jumpman” logo, which accompanies virtually all of Jordan’s branded gear.

    Still, the company denies any connection to the NBA legend and argues any resemblance is coincidental.

    Speaking to Chinese media today, a spokesman for the company brazenly claimed, “There is no connection, 23 is just a number like $23 or $230 dollars… I don’t think there is a problem at all here.”

    He continued by saying Qiaodan goes to great lengths to advertise that the company was a “China national brand” and that there was no need to tell every customer that they are not associated with Jordan since their brand is already unique to the mainland.

    Bob Leverone / AP

    Charlotte Bobcats owner Michael Jordan smiles as he announces a cash donation to the Second Harvest Food Bank on Feb. 20 in Charlotte, N.C.

    “Not everyone will think this is misleading,” said the spokesman. “There are so many Jordans besides the basketball player – there are many other celebrities both in the U.S. and worldwide called Jordan.”

    A bold claim by Qiaodan, but one that is seemingly refuted by a 2009 survey conducted by a Shanghai marketing company. They found that 90 percent of 400 young people polled in China’s small cities believed Qiaodan Sports was Michael Jordan’s own brand.

    “We live in a competitive marketplace, and Chinese consumers, like anyone else, have a huge amount of choice when it comes to buying clothing, shoes and other merchandise,” said Jordan, “I think they deserve to know what they are buying.”

    It’s a sentiment echoed by Nike, who markets the “Jordan” brand in China under its English name, which the Oregon-based company registered in China in 1993. It failed, though, to register the Chinese name, allowing Qiaodan to take it in 1998. Attempts by Nike to legally halt Qiaodan from selling under that name were blocked by the Chinese government’s state trademark office 

    Subsequently, one can walk into a sports store here in China and often find Nike’s official Jordan line of sportswear on sale just a few racks down from Qiaodan’s brand.

    Why now?
    In lieu of Nike’s previous experience in attempting to protect its trademark and the fact that Jordan himself has waited 11 years to make his first high profile attempt to stop Qiaodan, the question is: “Why now?”

    The answer to that may be found in two recent legal decisions involving two other NBA players.

    Stan Abrams of the invaluable China legal and business blog, China Hearsay, wrote about two cases involving Chinese basketball stars – Yi Jianlian and Yao Ming – and the parallels between their two trademark cases and the suit Jordan is bringing against Qiaodan.

    In the Yi Jianlian case, a company unaffiliated with the player registered for the trademark of his name in 2005. Yi filed a complaint with the Chinese Trademark Review and Adjudication Board and won in 2009; he also won a subsequent appeal in 2010.

    Yao Ming faced a similar issue when he filed suit and won against another Chinese sporting goods company, Wuhan Yunhe, which had attempted to trademark a name associated with the former NBA superstar.

    In both cases, lawyers for the players cited Article 31 of Chinese Trademark Law which states: "An application for the registration of a trademark shall not create any prejudice to the prior right of another person, nor unfair means be used to pre-emptively register the trademark of some reputation another person has used.”

    Perhaps seeing the trademark law now being more stringently enforced in cases closely paralleling his own, and already knowing the terrific economic potential for himself and his brand in China, Jordan must have seen this as the time to make a definitive move against Qiaodan.

    Considering Nike’s failed injunction and the fact that Qiaodan is a purely homegrown Chinese company – a fact that should not be underestimated - Qiaodan must have appeared frustratingly untouchable to Jordan, who touched on fairness in his statement.

    “When I was a former player, I played within the rules, I played off of honesty,” said Jordan. “Today, even in business, honesty is something that I truly, truly hold as a high value, and I stay within the guidelines.”

    While the lawsuit is primarily for control of his Chinese name in China, Jordan has pledged that any money earned in the lawsuit will be “invested in growing the sport in China.”

    “No one should lose control of their own name; China recognizes that for everyone. It’s not about the money; it’s about principle—protecting my identity and my name.”  

    One person who should take heed of Jordan’s words? Current NBA phenom, Jeremy Lin, whose Chinese name was registered by a Chinese company back in 2010.

    Watch Jordan's video statement

    70 comments

    Screw him. Michael Jordan can do virtually anything he wants and he never did a thing to help Americans- just take their money. Where are the Jordan shoes Made In America? Where are the Jordan clothes Made In America? They're not because all of these athletes are selfish. Screw Michael Jordan....unl …

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    Explore related topics: china, basketball, trademark, michael-jordan, jeremy-lin, ed-flanagan, linsanity, qiaodan
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