:00:00. > :00:16.Now on BBC News, all the latest business news live from Singapore.
:00:17. > :00:20.President orders an investigation into whether China is stealing
:00:21. > :00:27.intellectual property from US companies -- President Trump. And
:00:28. > :00:39.starting over is never easy for any family business, but one candy store
:00:40. > :00:44.in India has tasted sweet success. Good morning, Asia, hello, world. It
:00:45. > :00:49.is a Tuesday. Glad you could join us for this edition of Asia Business
:00:50. > :00:52.Report. I am Rico Hizon. Just a few hours ago President Donald Trump
:00:53. > :00:57.asked for an investigation into alleged Chinese theft of American
:00:58. > :01:02.intellectual property. This order comes as US ties with China are
:01:03. > :01:07.streamed over North Korea. We will combat the counterfeiting and piracy
:01:08. > :01:11.that destroys American jobs. We will enforce the rules of fair and
:01:12. > :01:16.reciprocal trade that form the foundation of responsible, so. Well,
:01:17. > :01:20.according to the US government, intellectual property stolen by
:01:21. > :01:25.China is estimated at more than $300 billion. And China is said to
:01:26. > :01:29.account for between 50% to 80% of global intellectual property theft.
:01:30. > :01:33.Mr Trump's tough talk on trade with China has been going on for a while,
:01:34. > :01:39.but what exactly is prompting this latest decision? I spoke to a
:01:40. > :01:43.correspondent in Shanghai. I think Trump is right. He should be
:01:44. > :01:46.criticising China for the over protectionism in the country, as
:01:47. > :01:51.well as for copyright intellectual property issues. I think first off
:01:52. > :01:55.it is really unfair at this stage that a lot of American companies
:01:56. > :01:57.like General Motors have to set up a joint-venture if they want to
:01:58. > :02:03.establish a factory in China. The concern is that right now there is a
:02:04. > :02:06.lot of transfer of technology to the Chinese joint-venture partner. So
:02:07. > :02:12.today you are going to be helping your partner become your competitor
:02:13. > :02:16.in five years. Or you have other situations like Elon Musk's Kessler,
:02:17. > :02:19.they have announced they would like to open a factory in China but they
:02:20. > :02:23.are having problems getting the permits to do so because they are
:02:24. > :02:26.not willing to have a joint-venture partner -- Tesla. Is the right in
:02:27. > :02:32.saying American companies are being hurt to the tune of 300 billion US
:02:33. > :02:36.dollars? Well, I think $300 billion might be a slight exaggeration. I
:02:37. > :02:40.think if you add up over the last 20 years maybe I hitting close to that
:02:41. > :02:44.number. At the reality is that China was right to be somewhat
:02:45. > :02:49.protectionist ten, 15 years ago. Their industry was in shambles. They
:02:50. > :02:54.really needed to have that infant syndrome where you protect your
:02:55. > :02:57.industries. But right now that sort of protectionism is hurting the
:02:58. > :03:01.country. A lot of western brands that I talk to are now looking
:03:02. > :03:05.towards Indonesia, or Sri Lanka, or even Africa to invest, because they
:03:06. > :03:12.are concerned about unfair trading practices in China. In corporate
:03:13. > :03:15.America, the boss of drugs giant Merck has resigned from the business
:03:16. > :03:19.panel led by Donald Trump over the President's response to a violent
:03:20. > :03:23.white nationalist rally which took place in Virginia over the weekend.
:03:24. > :03:27.I spoke to our correspondent from New York and I asked why the drugs
:03:28. > :03:32.chief executive, Ken Frazier, resigned. Merck's CEO use the
:03:33. > :03:37.company's Twitter account to explain his decision to step down. It was
:03:38. > :03:41.from the President's Manufacturing jobs Council. He, it is worth
:03:42. > :03:44.pointing out, is one of America's most prominent African-American
:03:45. > :03:49.business executives. And he explained that as Merck's boss and
:03:50. > :03:53.as a matter of personal conscience he felt a responsibility to take a
:03:54. > :03:58.stand against extremism. Many people are seeing this as an apparent
:03:59. > :04:02.criticism of Donald Trump, who took two days before coming out and
:04:03. > :04:05.criticising and condemning explicitly white supremacists for
:04:06. > :04:10.the violence that occurred over the weekend, and that led to the death
:04:11. > :04:13.of a woman. What we saw, though, in the immediate aftermath of the
:04:14. > :04:16.criticism from Ken Frazier is Donald Trump then taking to Twitter and
:04:17. > :04:22.criticising him, attacking the company, saying that they were in
:04:23. > :04:27.part responsible for higher drug prices. So what have other
:04:28. > :04:33.executives done, who were part of this advisory Council? Have they
:04:34. > :04:36.sided with Ken Frazier, have some of them also resigned, or have some of
:04:37. > :04:41.them basically stayed put? I have spent much of my day reaching out to
:04:42. > :04:44.some of those CEOs, which really reads like a who's Who of the
:04:45. > :04:52.corporate world in America. You are talking about the head of Pepsico,
:04:53. > :04:58.the chairman of General Electric. The heads of Mark Stone and Black
:04:59. > :05:03.Rock. These are well-known global companies. -- Blackstone. Many
:05:04. > :05:07.responses followed a similar pattern, which was to condemn the
:05:08. > :05:12.violence we saw over the weekend. It is worth pointing out that none were
:05:13. > :05:15.prepared to go as far as Ken Frazier, and none were prepared to
:05:16. > :05:23.give up their place on presidential advisory councils. And we just
:05:24. > :05:26.learned minutes ago that the chief executive of Under Armour will also
:05:27. > :05:30.be stepping down from the Trump administration's American
:05:31. > :05:33.Manufacturing Council. He said in his tweet I love our country and
:05:34. > :05:40.company. I am stepping down from the council to focus on inspiring and
:05:41. > :05:45.uniting through power of sport. That was the CEO, and it follows Ken
:05:46. > :05:51.Frazier's resignation from the Council of President Trump. Moving
:05:52. > :05:54.on to the partition of India, which triggered the largest mass movement
:05:55. > :05:59.of people ever, Hindus moving to India and Muslim is moving to the
:06:00. > :06:02.newlyformed state of Pakistan. Among the millions affected were people
:06:03. > :06:09.with flourishing businesses they had run for decades. One suites
:06:10. > :06:16.franchise eventually thrived in a new homeland, but it was a painful
:06:17. > :06:18.and challenging journey. Partition was destructive for everyone. We had
:06:19. > :06:58.to start once again from zero. We had the restaurant in Karachi,
:06:59. > :07:03.and due to partition we had to move to Bombay. Business takes years to
:07:04. > :07:15.build and it can take minutes to destroy.
:07:16. > :07:22.Our base in Karachi was totally destroyed. Developing and Bombay, it
:07:23. > :07:34.is hard work in Bombay. It is not imported from Karachi.
:07:35. > :07:44.Well, this is the house where we had come and stayed here. It was almost
:07:45. > :07:47.like a dormitory. And all of those who came from Karachi stayed with us
:07:48. > :07:48.for a number of years before we could establish alternative
:07:49. > :08:07.arrangements. The memory cannot be wiped out
:08:08. > :08:14.entirely, and therefore the pain is still there. The mockery of the
:08:15. > :08:20.whole thing is that it was not a question of I that religion or
:08:21. > :08:29.politics or state, then what was the cause of partition? After the
:08:30. > :08:32.WannaCry attack in May caused chaos and confusion around the world,
:08:33. > :08:38.cyber security is at the forefront of many minds, especially for
:08:39. > :08:42.business. As CEO spent three decades fighting cyber crime with the FBI.
:08:43. > :08:46.He told my correspondent what companies can do to defend against
:08:47. > :08:49.cyber attacks. Think about this. Instead of starting with the
:08:50. > :08:53.technology, start with the adversary. There are really five
:08:54. > :08:59.categories of at the street you have to consider. Nationstates,
:09:00. > :09:03.multinational Grimal organisations, hacktivists, terrorists and the
:09:04. > :09:07.insider threat. Think about your corporate strategy and corporate
:09:08. > :09:11.assets and ask yourself which one of those categories of adversary would
:09:12. > :09:15.be most likely to come after you to do harm? At certain times it will be
:09:16. > :09:23.a multinational Grimal organisation, other times it could be hacktivists.
:09:24. > :09:27.We have seen global attacks like WannaCry, even crime against states.
:09:28. > :09:33.So how bad could the situation become? What are some of the worst
:09:34. > :09:37.case scenarios? WannaCry, really, if you had a mature cyber security
:09:38. > :09:41.programme, was a nonevent for most companies. The patch came out in
:09:42. > :09:46.March and the event started in May. So think about having very
:09:47. > :09:51.mainstream programmes in your company, such as patch management
:09:52. > :09:55.and how you allow access to your network, and you can explain and
:09:56. > :09:59.defend against that. You can resolve a great deal of these problems with
:10:00. > :10:05.just routine behaviours and cyber security. And do you think companies
:10:06. > :10:08.generally are taking this threat seriously? It depends on the
:10:09. > :10:12.industry. If you go to the defence industry, the financial services
:10:13. > :10:18.sector industry, and communications, they take it very seriously. But, as
:10:19. > :10:22.you get into other industries, healthcare, retail, hospitality,
:10:23. > :10:26.they are really not as mature as they need to be to defend against
:10:27. > :10:30.these attacks. Thank you so much for investing your time with us. I am
:10:31. > :10:38.Rico Hizon in Singapore. Sport Today is coming up next.
:10:39. > :10:42.The top stories this hour: North Korea's leader has been