:00:00. > :00:00.and Kate Middleton's phones between 2005 and 2006. Now on BBC News, all
:00:07. > :00:27.the latest business news live from Singapore and Asia Business Report.
:00:28. > :00:33.Glaxo Smith Kline's Chinese operations have him accused of
:00:34. > :00:43.massive and systematic bribery. And why the Asian delicacy abalone is a
:00:44. > :00:46.growing business for New Zealand. Thank you for joining us. Is China
:00:47. > :00:51.becoming a more challenging place to do business? One of the world's
:00:52. > :00:54.largest pharmaceutical companies is under pressure after Chinese
:00:55. > :00:59.authorities accused a Glaxo Smith Kline executive of ordering staff to
:01:00. > :01:05.bribe hospital officials to use the company's products. China is
:01:06. > :01:12.accusing the company's former head of operations, Mark Riley, and two
:01:13. > :01:21.other colleagues of running a massive bribery network. Mainline
:01:22. > :01:25.officials arrested... Other companies have faced similar
:01:26. > :01:28.accusations. Earlier, I spoke with our correspondent in Shanghai to
:01:29. > :01:32.find out what the reaction has been to this latest development. The case
:01:33. > :01:42.is being followed with interest. It is the biggest scandal to envelop a
:01:43. > :01:50.foreign multinational company in a number of years. What is
:01:51. > :01:55.interesting, I think, about this statement is that up until now,
:01:56. > :02:00.reported in the foreign media quoting unnamed Chinese sources,
:02:01. > :02:04.there was a sense that it would only be Chinese executives who were going
:02:05. > :02:10.to be charged. This police ministry statement makes that look less
:02:11. > :02:15.likely this morning. They have accused Mark Reilly of running this
:02:16. > :02:19.massive bribery network. They appear to believe at the end of this
:02:20. > :02:23.10`month investigation that they have evidence that the wrongdoing
:02:24. > :02:28.was ordered from the top. Glaxo Smith Kline has over the course of
:02:29. > :02:32.the investigation admits that some of its staff may have acted outside
:02:33. > :02:36.of the company's guidelines but they have denied all along that there has
:02:37. > :02:38.been any kind of systemic corruption. In response to these
:02:39. > :02:42.allegations from the Chinese police, they have said that they will
:02:43. > :02:45.continue to cooperate fully and wish to reach a resolution that will
:02:46. > :02:49.enable the company to continue to make an important contribution to
:02:50. > :02:54.the health and welfare of China and its citizens. What is the sentiment
:02:55. > :03:00.on the ground? These foreign companies, as they become the target
:03:01. > :03:06.of mainland officials in their anti`corruption campaign? You can be
:03:07. > :03:14.certain that what has happened to Glaxo Smith Kline over the past year
:03:15. > :03:22.and... This has reinforced even further... You can be certain that
:03:23. > :03:24.this will have sent a chilling effect through the foreign business
:03:25. > :03:29.community. There is a deep sense of nervousness. You can be certain that
:03:30. > :03:38.other foreign drugs companies will have been looking very closely at
:03:39. > :03:43.their own operations. The police have been looking at and speaking
:03:44. > :03:47.with a number of them as well. Fresh figures from Japan reveal its
:03:48. > :03:53.economy has grown by 1.5% in the three months to March compared to an
:03:54. > :03:58.earlier quarter. The numbers... Consumer spending was up ahead of
:03:59. > :04:03.the April one tax hike and capital spending increased beyond most
:04:04. > :04:07.forecasts. Shares of Sony have fallen by more than 6% in Tokyo
:04:08. > :04:11.trading after the company said it would remain unprofitable for the
:04:12. > :04:18.next financial year. The company posted a loss of $1.2 billion for
:04:19. > :04:22.the year to March. The report puts pressure on the chief executive, his
:04:23. > :04:29.aim has been to turn the company around. A landmark ruling forcing
:04:30. > :04:34.Google to remove search result has been described as astonishing by the
:04:35. > :04:39.founder of Wikipedia. The European Court of Justice ruled on Tuesday
:04:40. > :04:46.that an individual could demand that is relevant or outdated information
:04:47. > :04:48.be deleted from the search results. Google says it is looking into the
:04:49. > :05:00.implications of the decision. Launching a new smartphone in one of
:05:01. > :05:06.the world's 's most populous countries is always a challenge.
:05:07. > :05:11.Motorola is launching a new handset in India. One thing we have seen is
:05:12. > :05:14.that the high`quality internet that the high`quality internet
:05:15. > :05:22.experience has not been made available to many people around the
:05:23. > :05:30.world. We are hoping to welcome a lot of people to their potentially
:05:31. > :05:36.first smartphone experience. India is a highly competitive market. If
:05:37. > :05:40.you get the price point right, the rewards are huge, but things can go
:05:41. > :05:52.wrong very easily here. What are you expecting? Every international
:05:53. > :05:55.vendor is here as well, so it is obviously a very exciting
:05:56. > :05:59.marketplace. We have enjoyed great success here since we launched our
:06:00. > :06:05.products in India and that is because we have a clear strategy. We
:06:06. > :06:10.want to focus on clean and fast Android devices. We also want to
:06:11. > :06:15.make products that keep getting better all the time. We want to
:06:16. > :06:18.bring this to the consumer with an attractive price and we believe we
:06:19. > :06:25.can be successful in this market with this strategy. You everything
:06:26. > :06:34.you become a Chinese company. What is it like to operate under Lenovo?
:06:35. > :06:38.We are not a Chinese company yet. The Lenovo acquisition will be
:06:39. > :06:46.finalised later this year. But we are very excited because we have a
:06:47. > :06:53.lot of momentum in Motorola in terms of our comeback to the market and
:06:54. > :07:04.Lenovo has made it very clear that our brand is very important to
:07:05. > :07:12.them. How easy is it to continue to innovate if your ownership keeps
:07:13. > :07:16.changing? The team is the same and we are trying to address the key
:07:17. > :07:22.issues in the most critical consumer points and we are trying to give an
:07:23. > :07:29.experience to the consumer that is better than anything else that
:07:30. > :07:37.anyone can give. That is very important to Lenovo. And with this,
:07:38. > :07:48.we will have a better reach on a global level. In the Asia`Pacific
:07:49. > :07:53.region, the shellfish abalone is a popular delicacy and it has a
:07:54. > :07:57.pricetag to match it because fishing for it is heavily restricted. In
:07:58. > :08:02.fact, illegal poaching resulted in the world's first ever underwater
:08:03. > :08:11.arrest. New Zealand has one of the rarest types of the seafood and it
:08:12. > :08:19.is reaping the rewards of the taste of Asia. It's known here by its
:08:20. > :08:24.Indigenous name. Blackfoot abalone is only found in New Zealand waters
:08:25. > :08:31.and its a delicacy. South Korea, Hong Kong, Singapore and Taiwan take
:08:32. > :08:36.a small share in exports but mainland China is the main consumer.
:08:37. > :08:41.Even locally, it's expensive, around $45 US per shellfish. To find out
:08:42. > :08:44.why, we joined this group of recreational hunter gatherers led by
:08:45. > :08:55.a former Rugby Union All Blacks legend. It looks like a rock but you
:08:56. > :09:01.can see the outline. There are laws regulating abalone. It's chilly out
:09:02. > :09:06.there but this is what it is all about. The New Zealand abalone. This
:09:07. > :09:14.is worth hundreds of dollars in some parts of the world. The shocking is
:09:15. > :09:21.done straightaway. The texture is similar to calamari. It's chilly but
:09:22. > :09:26.it has its own distinct flavour. The stake of the ocean. This is a group
:09:27. > :09:31.called Power to the people. Last year, they successfully stood up to
:09:32. > :09:36.computer `` commercial fisheries trying to open up these areas. They
:09:37. > :09:41.wanted to make the catch is zero, which is understandable, but at the
:09:42. > :09:46.end of the day, if they take everything away from our coastline
:09:47. > :09:54.it's not good for the public. There is still plenty mess `` plenty left
:09:55. > :09:58.for the commercial fishers. Andrew has been a commercial fishers since
:09:59. > :10:06.the 1990s. Groundbreaking technology is at the forefront of
:10:07. > :10:12.sustainability. If we do this consistently for three years, it
:10:13. > :10:18.will be better than what we have done over the last 25 years.
:10:19. > :10:24.Commercial fishers also follow strict guidelines. The exported
:10:25. > :10:30.abalone industry is worth $43 million per year. Growth is limited
:10:31. > :10:36.because of catch quotas but an increase in live exports could boost
:10:37. > :10:46.profits. Fresh abalone can now get to the table from the seabed in 48
:10:47. > :10:55.hours. Asian stocks are dipping from one month highs after the Dow Jones
:10:56. > :11:01.industrial average... Thank you for investing your time with us. Goodbye
:11:02. > :11:02.for now. The headlines: Police in