Senators raise alarm over another possible sale of taxpayer-backed firm to Chinese

February 21, 2013 by Leave a comment

Fisker 660

A solar roof is seen on a Fisker Karma hybrid electric car during the North American International Auto Show in Detroit, Michigan. (Reuters)

Republican senators complained Wednesday that U.S. taxpayer dollars could end up boosting the Chinese economy, following reports that a Chinese firm is leading the pack of companies bidding for a majority stake in government-backed Fisker Automotive.

The troubled California-based electric car maker, which was backed by U.S. taxpayers to the tune of nearly $530 million, for months has been looking for a financial partner. Reuters reported earlier this week that China’s Zhejiang Geely Holding Group is favored to take over, though Fisker is also reportedly weighing a bid from another Chinese auto maker.

The development comes after Fisker’s main battery supplier — U.S. government-backed A123 Systems — was recently purchased by a separate Chinese firm.

Sens. John Thune, R-S.D., and Chuck Grassley, R-Iowa, voiced concern Wednesday that Chinese companies are benefiting from U.S. taxpayers’ investment.

“Obama’s green energy investments appear to be nothing more than venture capital for eventual Chinese acquisitions,” Thune said in a statement. “After stimulus-funded A123 was just acquired by a Chinese-based company, it’s troubling to see that yet another struggling taxpayer-backed company might be purchased under duress by a Chinese company.”

Grassley added: “Like A123, this looks like another example of taxpayer dollars going to a failed experiment. Technology developed with American taxpayer subsidies should not be sold off to China.”

Despite the Reuters report, Fisker stressed that the bidding process is still very much open.

“The company has received detailed proposals from multiple parties in different continents which are now being evaluated by the company and its advisors,” Fisker spokesman Roger Ormisher said in a statement.

The Obama administration also defended the Energy Department’s overall loan program, which originally extended the nearly $530 million loan to Fisker in 2010.

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Commercial cyberspying and theft gives rich payoff

February 20, 2013 by Leave a comment

For state-backed cyberspies, stealing commercial secrets promises rich payoff

By Joe Mcdonald, AP Business Writer | Associated Press

China and US Flag

Associated Press -
In this Nov. 7, 2012 photo, U.S. and Chinese national flags are hung outside a hotel during the U.S. Presidential election event, organized by the U.S. embassy in Beijing. As public evidence mounts that the Chinese military is responsible for stealing massive amounts of U.S. government data and corporate trade secrets, the Obama administration is eyeing fines and other trade actions it may take against Beijing or any other country guilty of cyberespionage. The Chinese government, meanwhile, has denied involvement in the cyber-attacks tracked by Mandiant. Instead, the Foreign Ministry said that China, too, is a victim of hacking, some of it traced to the U.S. Foreign Ministry spokesman Hong Lei cited a report by an agency under the Ministry of Information Technology and Industry that said in 2012 alone that foreign hackers used viruses and other malicious software to seize control of 1,400 computers in China and 38,000 websites. (AP Photo/Andy Wong)

BEIJING (AP) — For state-backed cyberspies such as a Chinese military unit implicated by a U.S. security firm in a computer crime wave, hacking foreign companies can produce high-value secrets ranging from details on oil fields to advanced manufacturing technology.

This week’s report by Mandiant Inc. adds to mounting suspicion that Chinese military experts are helping state industry by stealing secrets from Western companies possibly worth hundreds of millions of dollars. The Chinese military has denied involvement in the attacks.

“This is really the new era of cybercrime,” said Graham Cluley, a British security expert. “We’ve moved from kids in their bedroom and financially motivated crime to state-sponsored cybercrime, which is interested in stealing secrets and getting military or commercial advantage.”

Instead of credit card numbers and other consumer data sought by crime gangs, security experts say cyberspies with resources that suggest they work for governments aim at better-guarded but more valuable information.

Companies in fields from petrochemicals to software can cut costs by receiving stolen secrets. An energy company bidding for access to an oil field abroad can save money if spies can tell it what foreign rivals might pay. Suppliers can press customers to pay more if they know details of their finances. For China, advanced technology and other information from the West could help speed the rise of giant state-owned companies seen as national champions.

“It’s like an ongoing war,” said Ryusuke Masuoka, a cybersecurity expert at Tokyo’s Center for International Public Policy Studies, a private think tank. “It is going to spread and get deeper and deeper.”

Mandiant, headquartered in Alexandria, Virginia, said it found attacks on 141 entities, mostly in the United States but also in Canada, Britain and elsewhere.

Attackers stole information about pricing, contract negotiations, manufacturing, product testing and corporate acquisitions, the company said. It said multiple details indicated the attackers, dubbed APT1 in its report, were from a military unit in Shanghai, though there was a small chance others might be responsible.

Target companies were in four of the seven strategic industries identified in the Communist Party’s latest five-year development plan, it said.

“We do believe that this stolen information can be used to obvious advantage” by China’s government and state enterprises, Mandiant said.

China’s military is a leader in cyberwarfare research, along with its counterparts in the United States and Russia. The People’s Liberation Army supports hacker hobby clubs with as many as 100,000 members to develop a pool of possible recruits, according to security consultants.

Mandiant said it traced attacks to a neighborhood in Shanghai’s Pudong district where the PLA’s Unit 61398 is housed in a 12-story building. The unit has advertised online for recruits with computer skills. Mandiant estimated its personnel at anywhere from hundreds to several thousand.

On Wednesday, the PLA rejected Mandiant’s findings and said computer addresses linked to the attacks could have been hijacked by attackers elsewhere. A military statement complained that “one-sided attacks in the media” destroy the atmosphere for cooperation in fighting online crime.

Many experts are not swayed by the denials.

“There are a lot of hackers that are sponsored by the Chinese government who conduct cyberattacks,” said Lim Jong-in, dean of Korea University’s Graduate School of Information Security.

The United States and other major governments are developing cyberspying technology for intelligence and security purposes, though how much that might be used for commercial spying is unclear.

“All countries who can do conduct cyber operations,” said Alastair MacGibbon, the former director of the Australian Federal Police’s High Tech Crime Center.

“I think the thing that has upset people mostly about the Chinese is … that they’re doing it on an industrialized scale and in some ways in a brazen and audacious manner,” said MacGibbon, who now runs an Internet safety institute at the University of Canberra.

China’s ruling party has ambitious plans to build up state-owned champions in industries including banking, telecoms, oil and steel. State companies benefit from monopolies and other official favors but lack skills and technology.

Last year, a group of Chinese state companies were charged in U.S. federal court in San Francisco in the theft of DuPont Co. technology for making titanium dioxide, a chemical used in paints and plastics.

In 2011, another security company, Symantec Inc., announced it detected attacks on 29 chemical companies and 19 other companies that it traced to China. It said the attackers wanted to steal secrets about chemical processing and advanced materials manufacturing.

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It’s Cool Again to be ‘Made in America’

February 18, 2013 by 1 Comment

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Advertising Age the new emerging market

Domestic Goods Are All the Rage — But Are They Good for the Bottom Line?

By:  Published: February 18, 2013

Not since the 1970s has “Made in America” been such a hot way to market your product.

On one end is Walmart‘s promise to buy an additional $50 billion in U.S.-made merchandise over the next decade; on the other are designers touting investments in New York’s shrinking garment district as a way to justify higher prices.

At the Financial Times’ New York Conference last month, Brunswick Group executive Susan Gilchrist said that Made in America is “not just about the PR opportunities. Purely from an economic view, China is losing its cost advantage.”

In 2001, the average hourly wage in China was 58¢, according to data from the Boston Consulting Group. By 2015, it will be $6. Combine that with the high productivity of American manufacturers and low energy costs, and the cost gap will close for most categories of goods to just 7% by 2015.

It’s making more business sense to manufacture in the U.S. But does it make marketing sense as the focus of a brand’s message?

In a September survey of more than 1,000 Americans by the Boston Consulting Group, more than 80% said they preferred U.S.-made goods, and that they would pay more for said goods. The same questions were asked of 1,000 Chinese consumers: 47% prefer Made in America.

Yet actions and sentiment are two different things: It often comes down to quality vs. a deal. When American-made goods deliver both, it works. “Consumers are starting to make a different tradeoff,” says Harold Sirkin, senior partner and managing director at BCG and author of the study. “Retailers are able to sell goods at a slight premium, but not too much.”

The push has support from celebrities such as Martha Stewart and Jay-Z. And American manufacturing is the raison d’etre of year-old ad agency Made Movement.

“Made in America will succeed for the same reason organic has succeeded,” said Dave Schiff, a founder of the shop. “Just like people didn’t want to eat food that was poisoning them, they want to live in a better economic climate.”

Made in America is nothing new for some brands. New Balance, American Apparel, Red Wing and Pendleton have been producing in the U.S. for years.

Others are making a push to sell more U.S.-made products. Apple recently announced it would bring some Mac production back to the U.S. And apparel brands like Club Monaco have launched lines and products marketed specifically as “Made in the USA.”

Walmart, meanwhile, sells more than $400 billion of goods each year, so some analysts say its commitment is meaningless when it comes to the bottom line. But Walmart spokesperson Randy Hargrove said that two-thirds of its products are “made here, sourced here, or grown here.” Most of that, of course, is food — Walmart is the nation’s largest grocer. This new batch of funds will help create jobs in areas where Walmart typically spends overseas, such as apparel, sporting equipment and furniture.

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Source: http://adage.com/article/news/cool-made-america/239846/?utm_source=daily_email&utm_medium=newsletter&utm_campaign=adage

To learn more about Made in USA Certification: http://www.USA-C.com

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Made in U.S.A. supplier summit coming soon

January 24, 2013 by 1 Comment

Retailing Today Magazine

January 17, 2013 | By Mike Troy

The first indication that something big was brewing with Walmart on the domestic sourcing front came last week.

That’s when Walmart announced internally at that SVP of home, Michelle Gloeckler, would assume additional responsibilities for a new U.S. sourcing and manufacturing initiative. Reporting to Gloeckler is Greg Hall who was named vp of U.S. sourcing and manufacturing after previously serving as vp of marketing for Walmart.com.

For complete article Source: http://www.retailingtoday.com/article/made-usa-supplier-summit-coming-soon

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Made in USA makes comeback as a marketing tool

January 22, 2013 by 1 Comment

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Oliver St. John, USA TODAY10:11p.m. EST January 21, 2013

It’s becoming downright American to make stuff in America.

Small manufacturers, craftsmen and retailers are marketing the Made-in-USA tag to score do-gooder points with consumers for employing stateside, says Margarita Mendoza, founder of the Made in America Movement, a lobbying organization for small manufacturers.

It’s working: Over 80% of Americans are willing to pay more for Made-in-USA products, 93% of whom say it’s because they want to keep jobs in the USA, according to a survey released in November by Boston Consulting Group. In ultra-partisan times, it’s one of the few issues both Democrats and Republicans agree on.

When considering similar products made in the U.S. vs. China, the average American is willing to pay up to 60% more for U.S.-made wooden baby toys, 30% more for U.S.-made mobile phones and 19% more for U.S.-made gas ranges, the survey says.

Now Wal-Mart wants a piece of the action. The behemoth, embroiled over the past year with worker protests and foreign bribery investigations, pledged recently to source $50 billion of products in the U.S. over the next 10 years, says Wal-Mart spokesman Randy Hargrove. They’re not alone. Mendoza says both Caterpillar and 3M have also made efforts to source more in the U.S.

“Regardless if this is a PR ploy or not, it doesn’t matter. A lot more people will look for the Made-in-USA tag,” she says, adding that, considering Wal-Mart’s size, $5 billion a year is only “a drop in the bucket,” for the retailer whose 2012 sales reached almost $444 billion.

Kyle Rancourt says his American-made shoe company, Rancourt & Co., hit it big as concern over U.S. jobs mounted when the recession hit in 2009. But he says he lies awake at night worrying if Made-in-USA is just a passing fad.

“It’s inevitable that times will change,” Rancourt says. “But I am still holding out hope that this has become a core value of our country.”

Mendoza says that if buying American turns out to be a passing fad, the country is in trouble.

“If they don’t understand the economic factor, we need to pull on their heartstrings,” she says. “The thought of having a country like China taking over, that alone is bone-chilling.”

But do folks care enough about U.S. manufacturing jobs to permanently change the way they shop? David Aaker, vice chairman of brand consulting firm Prophet, says the companies that get the most credit for being American, such as Apple and Cisco, don’t even source products in the U.S.

“I don’t think it matters unless it becomes visible,” Aaker says. “The most common way for that is if something bad happens, like if Nike gets some press about conditions in factories overseas.”

But Rancourt says his customers believe foreign-made shoes lack the soul of their American counterparts.

“There’s hundreds if not thousands of workers working on those factories. They do one specific job, maybe put an eyelet into a specific place,” he says. “They don’t have an idea or concept of a finished product and how that should look.”

 

Just watch out for phony Made-in-USA claims. It’s illegal to claim a product is U.S.-made unless both the product and all it’s components are sourced in the U.S. Even products that could imply a phony country of origin with a flag or country outline are verboten. Julia Solomon Ensor, enforcement lawyer at the Federal Trade Commission, says the FTC gets “several complaints each month about potentially deceptive ‘Made-in-the-USA’ claims.”

It sets a bad example. Mendoza says the U.S. needs to let kids know it’s OK to work in manufacturing. “Not all children are going to grow up to be dentists, and lawyers, and investment bankers.”

 

 

 

Source:http://www.usatoday.com/story/money/personalfinance/2013/01/21/made-in-usa-trend/1785539/

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Group Finds More Fake Ingredients in Popular Foods

January 22, 2013 by 1 Comment

By JIM AVILA and SERENA MARSHALL | Good Morning America –

 

ABC News Video

It’s what we expect as shoppers—what’s in the food will be displayed on the label.

But a new scientific examination by the non-profit food fraud detectives the U.S. Pharmacopeial Convention (USP), discovered rising numbers of fake ingredients in products from olive oil to spices to fruit juice.

“Food products are not always what they purport to be,” Markus Lipp, senior director for Food Standards for the independent lab in Maryland, told ABC News.

In a new database to be released Wednesday, and obtained exclusively by ABC News today, USP warns consumers, the FDA and manufacturers that the amount of food fraud they found is up by 60 percent this year.

USP, a scientific nonprofit that according to their website “sets standards for the identity, strength, quality, and purity of medicines, food ingredients, and dietary supplements manufactured, distributed and consumed worldwide” first released the Food Fraud Database in April 2012.

The organization examined more than 1,300 published studies and media reports from 1980-2010. The update to the database includes nearly 800 new records, nearly all published in 2011 and 2012.

Among the most popular targets for unscrupulous food suppliers? Pomegranate juice, which is often diluted with grape or pear juice.

“Pomegranate juice is a high-value ingredient and a high-priced ingredient, and adulteration appears to be widespread,” Lipp said. “It can be adulterated with other food juices…additional sugar, or just water and sugar.”

Lipp added that there have also been reports of completely “synthetic pomegranate juice” that didn’t contain any traces of the real juice.

USP tells ABC News that liquids and ground foods in general are the easiest to tamper with:

  • Olive oil: often diluted with cheaper oils
  • Lemon juice: cheapened with water and sugar
  • Tea: diluted with fillers like lawn grass or fern leaves
  • Spices: like paprika or saffron adulterated with dangerous food colorings that mimic the colors

Milk, honey, coffee and syrup are also listed by the USP as being highly adulterated products.

Also high on the list: seafood. The number one fake being escolar, an oily fish that can cause stomach problems, being mislabeled as white tuna or albacore, frequently found on sushi menus.

National Consumers League did its own testing on lemon juice just this past year and found four different products labeled 100 percent lemon juice were far from pure.

“One had 10 percent lemon juice, it said it had 100 percent, another had 15 percent lemon juice, another…had 25 percent, and the last one had 35 percent lemon juice,” Sally Greenberg, Executive Director for the National Consumers League said. “And they were all labeled 100 percent lemon juice.”

Greenberg explains there are indications to help consumers pick the faux from the food.

“In a bottle of olive oil if there’s a dark bottle, does it have the date that it was harvested?” she said. While other products, such as honey or lemon juice, are more difficult to discern, if the price is “too good to be true” it probably is.

“$5.50, that’s pretty cheap for extra virgin olive oil,” Greenberg said. “And something that should raise some eyebrows for consumers.”

Many of the products USP found to be adulterated are those that would be more expensive or research intensive in its production. “Pomegranate juice is expensive because there is little juice in a pomegranate,” Lipp said.

But the issue is more than just not getting what you pay for.

“There’s absolutely a public health risk,” said John Spink, associate director for the Anti-Counterfeit and Product Protection Program (A-CAPPP) at Michigan State University. “And the key is the people that are unauthorized to handle this product, they are probably not following good manufacturing practices and so there could be contaminates in it.”

Spink recommends purchasing from “suppliers, retailers, brands, that have a vested interest in keeping us as repeat customers.”

Both the FDA and the Grocery Manufacturers Association say they take food adulteration “very seriously.”

“FDA’s protection of consumers includes not only regulating and continually monitoring food products in interstate commerce for safety and sanitation, but also for the truthfulness and accuracy of their labels,” the FDA said in a statement to ABC News.

Most recently the FDA issued an alert for pomegranate juice mislabeled as 100 percent pomegranate juice, as well as one for the adulteration of honey.

The Grocery Manufacturers of America told ABC News in a statement that “ensuring the safety and integrity of our products – and maintaining the confidence of consumers – is the single most important goal of our industry,” and that their members have “robust quality management programs and procedures in place, including analytical testing, to help ensure that only the safest and highest quality products are being offered to consumers.”

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Chinese bid for A123 may raise security risks: Senators

December 2, 2012 by Leave a comment

A123

WASHINGTON (Reuters) – A Chinese company’s attempt to take over government-backed battery maker A123 raises serious national security concerns, a bipartisan group of lawmakers said this week, adding to growing congressional opposition to the deal.

China’s Wanxiang Group Corp is currently competing with U.S.-based Johnson Controls Inc to buy bankrupt A123, which makes lithium ion batteries for electric cars.

The government must ensure that any sale of A123′s technology, which has also been used by the military and to support the U.S. electrical grid, does not threaten domestic security, the senators said in letter to Treasury Secretary Timothy Geithner, Energy Secretary Steven Chu and other top cabinet officials.

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U.S. Affirms Steep Tariffs on China Solar Panels

October 12, 2012 by Leave a comment

Employees assemble photovoltaic panels at Suntech Power Holdings Co.’s factory in Wuxi, Jiangsu Province, China, in 2011.

WASHINGTON (AP) — The Obama administration upheld steep tariffs on Chinese solar panelsWednesday, finding that improper trade practices have undermined an American solar industry that the largest U.S. manufacturer says is in the midst of collapse.

In one of the largest trade cases the U.S. has pursued against the Asian superpower, the Commerce Department said China’s government is subsidizing companies that are flooding the U.S. market with low-cost products — a tactic known as “dumping.” To counteract those price cuts, the U.S. government imposed tariffs ranging from 18 percent to nearly 250 percent.

For some Chinese companies, those tariffs are lower than preliminary tariffs imposed in May.

Still, another set of duties dealing with improper subsidies was increased dramatically. While the initial ruling levied anti-subsidy fees ranging from 2.9 percent to 4.7 percent, the final ruling issued Wednesday sets those fees at 14.8 percent to 16 percent.

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Mexican Trade War Looms Over Winter Tomatos

October 2, 2012 by Leave a comment

U.S. business groups said on Tuesday they were worried about a damaging trade war with Mexico if President Barack Obama’s administration follows through on a preliminary decision to terminate a 16-year-old tomato trade agreement.

“We think the U.S.-Mexico economic relationship is tremendously important,” Patrick Kilbride of the U.S. Chamber of Commerce told reporters on a conference call. “We don’t want to see another trade war ignited.”

Florida tomato growers have pressed the Obama administration since June to terminate a 1996 agreement with Mexico on the grounds it fails to protect them against Mexican tomatoes sold in the United States below the cost of production.

Florida growers historically compete with Mexico for the U.S. winter and early spring tomato market. Terminating the pact would clear the way for Florida growers to file a new anti-dumping case against their Mexican rivals.

Last week, the U.S. Commerce Department stopped short of immediately tearing up the agreement, but took a preliminary position in favor of ending the pact. It promised a final decision “as soon as practicable” and in no more than 270 days.

The decision surprised Mexican officials and tomato producers, who have offered to renegotiate the pact. They argue the agreement has benefited U.S. consumers and brought stability to the North American market.

Bill Reinsch, president of the National Foreign Trade Council, said business groups were concerned the Obama administration might rush to make a final a decision ahead of the Nov. 6 presidential election, in which Florida is expected to play a decisive role.

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California to Vote on GMO Food Labeling

September 30, 2012 by 1 Comment

Californians are on course to vote whether genetically modified food must be labeled. A petition was signed by 971,126 Californians, 75 percent more than the minimum needed for a statewide vote concurrent with the Nov. 6 general election.

Approval from 50 percent of voters would make the proposal law.

“The right to know is as American as apple pie,” said Gary Ruskin, an Oakland-based proponent for the measure, officially known as Proposition 37.

The California movement is mobilizing consumer unease over modified ingredients, which are found in about 80 percent of processed foods in the U.S. according to the Grocery Manufacturers Association. The campaign is the best chance for biotech labeling in the U.S. after the failure of similar bills in 19 states and the rejection of a petition to the Food and Drug Administration last month, Ruskin said.

Monsanto, a multinational agriculture biotech company, opposes labeling modified ingredients because the move risks “misleading consumers into thinking products are not safe when in fact they are,” Sara E. Miller, a spokeswoman for St. Louis-based Monsanto, said in an e-mail.

Biotech labeling, which has been adopted in more than 50 countries, has never been endorsed by the FDA.

Modified foods have been in U.S. grocery stores since 1994. Ninety-three percent of Americans say genetically engineered foods should be labeled, according to an October 2010 poll conducted by Thompson Reuters Corp. and National Public Radio. Seventy-nine percent have doubts about the safety of such foods, according to the poll.

Should it be approved, Proposition 37 would require labels of foods made with biotech ingredients to state that they were “produced with genetic engineering.” Labels would be phased in over 18 months. Exemptions include restaurant food, alcohol and meat from animals fed with modified grains.

The label “would be the equivalent of a skull and crossbones” that would drive away customers and force food producers to stop using engineered ingredients, Joseph Mercola, the initiative’s leading funder with $800,000 in donations, said in a Web posting. Mercola is an osteopath who promotes natural remedies at his clinic in Hoffman Estates, Ill.

“Whether or not you believe agricultural chemicals belong in a wholesome diet is beside the point,” said Mercola. “You still ought to have the right to decide whether you want to spend your money on foods that contain genetically engineered ingredients.”

Popular New York Times food writer Mark Bittman says Proposition 37 will give consumers the basic right to know what they are eating.

“We have a right to know what’s in the food we eat and a right to know how it’s produced,” he wrote in a recent column. “This is true even if food containing or produced using GMOs (genetically modified organisms) were the greatest thing since crusty bread.”

© 2012 Newsmax. All rights reserved.

Read more: Calif. to Vote on GMO Food Labeling

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