23/11/2016 Asia Business Report


23/11/2016

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Another attempt to crack the Chinese market - we look at the industry

:00:16.:00:22.

chatter surrounding Facebook's latest effort. And it was designed

:00:23.:00:27.

to protect by the sea but a fuse smartphone Aksana been not

:00:28.:00:38.

delivering on the Polar function. -- smartphone apps have not been

:00:39.:00:40.

delivering. Welcome to Asia Business Report live

:00:41.:00:45.

from Singapore with me, Marico or it. China's 1.4 billion population

:00:46.:00:50.

makes it an attractive market for many businesses including Facebook

:00:51.:00:57.

-- Mariko Oi. Their there are reports that Facebook is developing

:00:58.:01:01.

software that would help to avoid sharing topics if the government

:01:02.:01:05.

would request it. This occurs around the world but it would be the first

:01:06.:01:09.

time where Facebook in essence will be handing over that control to a

:01:10.:01:17.

state. Our technology reporter has more. We all know that Facebook

:01:18.:01:21.

wants to keep growing and needs to keep growing beyond its 1.8 billion

:01:22.:01:26.

users that it now has, and one huge potential market for them is of

:01:27.:01:29.

course China, but China has strict rules about what you can say on the

:01:30.:01:37.

Internet, topics you can do is -- discuss and debate and Facebook have

:01:38.:01:41.

in looking at how to accommodate those stipulations of breaking into

:01:42.:01:45.

China. Now, this story, which appeared in the New York Times, from

:01:46.:01:52.

Mike Eisenach, quoth Facebook employees, unnamed former employees,

:01:53.:01:56.

saying there was discontent about creating this tool. Facebook e-mail

:01:57.:02:01.

me and said they are looking at many options in China but it would not

:02:02.:02:06.

confirm or deny that their software, that would allow the Chinese state

:02:07.:02:09.

or a third party in country to censor content, Facebook wouldn't

:02:10.:02:14.

confirm or deny that it exists but it is certainly a huge talking point

:02:15.:02:18.

among people who want open and free Internet. In other news: making

:02:19.:02:22.

headlines, Japanese carmaker Toyota is recalling the minivans to fix an

:02:23.:02:28.

issue that might arise with the sliding doors. The recall affects

:02:29.:02:34.

more than 700,000 vehicles in the United States and 4000 units in

:02:35.:02:38.

South Korea and Taiwan. German airline Lufthansa has lost a

:02:39.:02:43.

last-minute court to hold a planned pilot strike that will cancel 900

:02:44.:02:49.

flights on Wednesday. The industry action will affect around 100,000

:02:50.:02:53.

passengers. The strike is part of a long-running pay dispute at

:02:54.:02:56.

Lufthansa. Now, do you know who has your

:02:57.:03:00.

number? Some apps aimed at protecting the privacy of users

:03:01.:03:05.

appear to be doing the opposite. The apps let people know who is calling

:03:06.:03:09.

them when an unknown number of peers on their phone. But they also helped

:03:10.:03:15.

themselves to date from people's contact books. From Hong Kong, we

:03:16.:03:19.

explain why that is causing people to lose sleep over their privacy.

:03:20.:03:23.

Don't you hate getting calls from people you don't know? Well, there

:03:24.:03:27.

are several apps that can help identify who is calling, or block

:03:28.:03:31.

calls from numbers you don't like, apps like True Caller and see and

:03:32.:03:37.

security have millions of users, but there it is a catch because these

:03:38.:03:41.

apps have huge databases of phone numbers, but they come from a range

:03:42.:03:45.

of sources, including from users' content lists, which means if you

:03:46.:03:50.

download the app will of your friends might end up in a publicly

:03:51.:03:53.

searchable database whether they like it or not. Once they are in the

:03:54.:03:58.

system people can find out their names by looking at their phone

:03:59.:04:03.

numbers. Investigative even found the name of Hong Kong's chief

:04:04.:04:06.

executive in the database as database as well as other top

:04:07.:04:12.

politicians. CM securities says it is stopping the lookup function

:04:13.:04:14.

while it addresses privacy concessions.

:04:15.:04:19.

As mentioned, the newsagency broke the story, and I spoke with the

:04:20.:04:25.

founder of the company to ask how he came to find out this discrepancy.

:04:26.:04:32.

Personal experience, a woman told one of our FatWire reporters last

:04:33.:04:36.

month, she used her mobile phone to call a taxi one day in Hong Kong and

:04:37.:04:41.

when she got in the taxi the driver can call her name and even, scarily,

:04:42.:04:48.

he can identify which company he works for, so she tried to find out

:04:49.:04:53.

and asked the taxi driver how he could possibly do that and the taxi

:04:54.:05:02.

driver said he had downloaded call ID CM security on his mobile, so

:05:03.:05:07.

whoever he calls he can identify who that person is or even some personal

:05:08.:05:16.

data included in the app's database so investigative reporters looked

:05:17.:05:20.

into this app, CM Security, and we found out later that other apps,

:05:21.:05:30.

like Sync.me and True Caller have a similar function. That is quite

:05:31.:05:34.

frightening. How many people are affected by this? It is difficult to

:05:35.:05:42.

say but, according to data released by the free apps, it is over 3

:05:43.:05:49.

billion database included in the cloud server, so it's a very huge

:05:50.:05:56.

database and of course every country -- and across every country in the

:05:57.:06:01.

world. So, what can people do to protect themselves? True Caller and

:06:02.:06:06.

Sync.me provides means on their website for anyone to use to request

:06:07.:06:12.

to remove their personal data from the server. But CM Security does not

:06:13.:06:19.

provide this means until, and we have revealed this story, they

:06:20.:06:24.

released three separate press release after the story and the

:06:25.:06:28.

latest one just released yesterday, they promised to provide a means for

:06:29.:06:36.

anyone to request to remove their data from the database. So far,

:06:37.:06:41.

until this morning, we still cannot see this means available on the

:06:42.:06:46.

website. US President-elect Donald Trump may have dealt the

:06:47.:06:49.

Trans-Pacific Partnership a death blow, announcing he would withdraw

:06:50.:06:54.

from the 12 nation trade pact on his first day in office. Japan's Prime

:06:55.:07:00.

Minister Shinzo Abe says that TPP would be meaningless without the

:07:01.:07:04.

United States. The Malaysian Prime Minister Najib Razak says trade and

:07:05.:07:09.

open regionalism in the Asia-Pacific is key to benefiting our peoples, so

:07:10.:07:13.

why is there such strong opposition to the deal in the US? Earlier, I

:07:14.:07:19.

put that question to a member of non-profit organisation Public

:07:20.:07:26.

Citizen. Well, Trump basically, has simply buried the zombie TPP. It was

:07:27.:07:31.

already dead, because it was impossible to build a majority to it

:07:32.:07:37.

in the US Congress for the ten months since it was officially

:07:38.:07:41.

signed. And the reason why is largely because the deal was

:07:42.:07:46.

negotiated behind closed doors for six years with over 500 US corporate

:07:47.:07:53.

advisers, but the public and Congress shut out, and as a result

:07:54.:07:58.

instead of focusing on free trade it was junked up with a lot of

:07:59.:08:03.

protectionist rubbish, extensions of monopoly patents that would raise

:08:04.:08:07.

medicine prices, writes for multinational corporations to sue

:08:08.:08:09.

governments and a man taxpayer compensation for laws they didn't

:08:10.:08:15.

like, deregulation of finance. If it had really been a trade deal it

:08:16.:08:19.

would not have run into this trouble. But isn't it fair to say

:08:20.:08:22.

that American voters were not too keen on NAFTA and other free trade

:08:23.:08:27.

deals as well, and does it mean America is ditching this free trade

:08:28.:08:31.

and actually giving China a bit of the benefit. Well, first of all,

:08:32.:08:38.

with respect to free trade, Ita dinghy and have had the opportunity

:08:39.:08:41.

to see a real free trade agreement since NAFTA, because the model of US

:08:42.:08:45.

free trade agreements have basically, we have seen the

:08:46.:08:48.

hijacking and the capture of trade negotiation by these privileged

:08:49.:08:53.

corporate advisers and so as a result agreements since NAFTA have

:08:54.:08:57.

had less to do with trade and more about special privileges to make it

:08:58.:09:02.

easier for jobs to be made offshore, for foreign investors to collect

:09:03.:09:05.

taxpayer compensation for policies they don't like. As far as China,

:09:06.:09:11.

you know, the hype about the demise of the TPP helping China echoes the

:09:12.:09:18.

Obama administration's own increasingly desperate foreign

:09:19.:09:22.

policy claims when they couldn't sell the agreement on the merits and

:09:23.:09:26.

they started this sort of scaremongering, the end of US

:09:27.:09:30.

leadership, China will take advantage, but the reality is the US

:09:31.:09:35.

has duty-free trade under IS is king agreements with the six TPP

:09:36.:09:40.

countries which account for 80% of the entire block's GDP and has very

:09:41.:09:46.

low tariffs already with the other partners because we are on the World

:09:47.:09:49.

Trade Organisation. Meanwhile, as far as leadership in the region, the

:09:50.:09:55.

US 7th Fleet, which obviously is the defence for Japan, for Vietnam's

:09:56.:09:59.

etc, these are the China, remains stationed, and as we saw with a

:10:00.:10:05.

minister are they that is what he wanted to talk to Donald Trump

:10:06.:10:11.

about, not the TPP -- vis a vis., let's look at

:10:12.:10:12.

Report. Sport Today's coming up next. Thanks for watching.

:10:13.:10:38.

Welcome back. You're watching BBC News.

:10:39.:10:41.

Donald Trump has said he won't prosecute Hillary Clinton

:10:42.:10:44.

over her e-mails controversy despite promises made

:10:45.:10:47.

He's also said he's keeping an open mind about climate change.

:10:48.:10:51.

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