US Swipes at China for Hacking Allegations

March 28, 2013 by Leave a comment

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The U.S. has taken its first real swipe at China following accusations that the Beijing government is behind a widespread and systemic hacking campaign targeting U.S. businesses.

Buried in a spending bill signed by President Barack Obama on Tuesday is a provision that effectively bars much of the federal government from buying information technology made by companies linked to the Chinese government.

It’s unclear what impact the legislation will have, or whether it will turn out to be a symbolic gesture. The provision only affects certain non-defense government agency budgets between now and Sept. 30, when the fiscal year ends. It also allows for exceptions if an agency head determines that buying the technology is “in the national interest of the United States.”

Still, the rule could upset U.S. allies whose businesses rely on Chinese manufacturers for parts and pave the way for broader, more permanent changes in how the U.S. government buys technology.

“This is a change of direction,” said Stuart Baker, a former senior official at the Homeland Security Department now with the legal firm Steptoe and Johnson in Washington. “My guess is we’re going to keep going in this direction for a while.”

In March, the U.S. computer security firm Mandiant released details on what it said was an aggressive hacking campaign on American businesses by a Chinese military unit. Since then, Treasury Secretary Jacob Lew has used high-level meetings with Beijing officials to press the matter. Beijing has denied the allegations.

Congressional leaders have promised to push comprehensive legislation that would make it easier for industry to share threat data with the government. But those efforts have been bogged down amid concerns that too much of U.S. citizens’ private information could end up in the hands of the federal government.

As Congress and privacy advocates debate a way ahead, lawmakers tucked “section 516″ into the latest budget resolution, which enables the government to pay for day-to day operations for the rest of the fiscal year. The provision specifically prohibits the Commerce and Justice departments, NASA and the National Science Foundation from buying an information technology system that is “produced, manufactured or assembled” by any entity that is “owned, operated or subsidized” by the People’s Republic of China.

The agencies can only acquire the technology if, in consulting with the FBI, they determine that there is no risk of “cyberespionage or sabotage associated with the acquisition of the system,” according to the legislation.

The move might sound like a no-brainer. If U.S. industry and intelligence officials are right, and China is stealing America’s corporate secrets at a breathtaking pace, why reward Beijing with lucrative U.S. contracts? Furthermore, why install technical equipment that could potentially give China a secret backdoor into federal systems?

But a blanket prohibition on technology made by the Chinese government may be easier said than done. Information systems are often a complicated assembly of parts manufactured by different companies around the globe. And investigating where each part came from, and if that part is made by a company that could have ties to the Chinese government could be difficult.

Depending on how the Obama administration interprets the law, Baker said it could cause problems for the U.S. with the World Trade Organization, whose members include U.S. allies like Germany and Britain that might rely on Chinese technology to build computers or handsets.

But in the end, Baker says it could make the U.S. government safer and wiser.

“We do have to worry about buying equipment from companies that may not have our best interests at heart,” he said.

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Follow Anne Flaherty on Twitter at https://twitter.com/AnneKFlaherty.

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Source: http://news.yahoo.com/us-swipes-china-hacking-allegations-193407762.html

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China in world’s top five arms exporters

March 18, 2013 by Leave a comment

By Michael Martina | Reuters

China Arms

(Reuters) - China has become the world’s fifth-largest arms exporter, a respected Sweden-based think-tank said on Monday, its highest ranking since the Cold War, with Pakistan the main recipient.

China’s volume of weapons exports between 2008 and 2012 rose 162 percent compared with the previous five-year period, with its share of the global arms trade rising from 2 percent to 5 percent, the Stockholm International Peace Research Institute (SIPRI) said.

China replaces Britain in the top five arms-dealing countries between 2008 and 2012, a group dominated by the United States and Russia, which accounted for 30 percent and 26 percent of weapons exports, SIPRI said.

“China is establishing itself as a significant arms supplier to a growing number of important recipient states,” Paul Holtom, director of the SIPRI Arms Transfers Programme, said in a statement.

The shift, outlined in SIPRI’s Trends in International Arms Transfers report, marks China’s first time as a top-five arms exporter since the think-tank’s 1986-1990 data period.

Chinese Foreign Ministry spokesman Hong Lei, asked about the report, said China was a responsible arms exporter which strictly adhered to international law.

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Cyberattacks, N. Korea, jihadist groups top U.S. threats

March 13, 2013 by Leave a comment

Cyberattacks

By Chelsea J. Carter, Pam Benson and Mariano Castillo, CNN

Washington (CNN) – Cyberattacks pose more of a threat to the United States than a land-based attack by a terrorist group, while North Korea’s development of a nuclear weapons program poses a “serious threat,” the director of national intelligence told Congress on Tuesday.

The warning by Director of National Intelligence James Clapper came in his annual report to Congress on the threats facing the United States.

“Attacks, which might involve cyber and financial weapons, can be deniable and unattributable,” Clapper said in prepared remarks before the Senate Select Committee on Intelligence. “Destruction can be invisible, latent and progressive.”

The Internet is increasingly being used as a tool both by nations and terror groups to achieve their objectives, according to Clapper’s report.

However, there is only a “remote chance” of a major cyberattack on the United States that would cause widespread disruptions, such as regional power outages, the report says. Most countries or groups don’t have the capacity to pull it off.

While Clapper emphasized possible cyberthreats, committee members raised questions about the potential nuclear dangers posed by North Korea and Iran, the increasing prevalence of al Qaeda in Syria and the effect of cuts to the U.S. budget on intelligence activities.

President Obama cracks whip on cybercrime

‘Belligerent rhetoric’

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Intel’s First Factory Customer Touts Made-in-USA Chips

February 20, 2013 by Leave a comment

Wall Street Journal

By Don Clark

A chip company called Achronix on Wednesday is announcing that the first fruits of Intel’s new build-to-order service are emerging from the factory. That’s a milestone for both companies, and a surprising sidelight could play into the story–worries about dependence on non-U.S. manufacturers.

The Silicon Valley startup in 2010 turned to Intel, which opted to break from long-standing practice and use its sophisticated factories and manufacturing processes to serve customers beyond Intel’s own chip-design groups. Achronix became one of two publicly announced users of the new Intel foundry business, as such services are called.

Intel believes it can make smaller and more sophisticated transistors than other foundries. Achronix, which makes a variety of programmable chips that use lots of transistors, says its bet on Intel has paid off as advertised.

The chips, which include models with a whopping six billion transistors, consume half the power of competing chips and cost about half as much, Achronix says. It is shipping sample quantities to customers now and, when extended testing is completed, will be shipping them in volume in the third quarter, says Robert Blake, the company’s president and chief executive officer.

Most foundry factories are in Taiwan or other parts of Asia. Achronix is quick to point out that the entire process of making its chips is handled in the United States.

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Barron’s Made in America: The Next Boom

January 28, 2013 by 1 Comment

Barrons's Logo

By: KOPIN TAN Barron’s JANUARY 2013

Barron's Made in America

Photo: Barron’s John Kuczala

Cheap natural gas and increasingly competitive labor costs are bringing factories and jobs back to the U.S. Eight ways to win.

 As the only industrialized superpower not decimated by World War II, the United States once made nearly 40% of the planet’s goods. These days, that number has shrunk to 18%. We make American Girl dolls in China, Levi’s jeans in Mexico, and enough movies in Vancouver to nickname it Hollywood North.

After decades of outsourcing, however, the U.S. is quietly enjoying a manufacturing revival, and companies like Apple (ticker: AAPL), Caterpillar (CAT), Ford Motor (F),General Electric (GE), and Whirlpool (WHR) are making more of their goods on American soil again. It isn’t just U.S. companies that are drawn to our cheap energy, weak dollar, and stagnant wages. Samsung Electronics (005930.Korea) plans a $4 billion semiconductor plant in Texas, Airbus SAS is building a factory in Alabama, and Toyota (TM) wants to export minivans made in Indiana to Asia.The Rust Belt owes its new shine to many factors, including rising wages and industrial-land costs in Asia. But none is bigger than the U.S. energy boom. Thanks to a head start in extracting oil and gas from shales, North America now produces far more natural gas than any other continent. Unlike oil, gas isn’t easily transported across oceans, and a result is some of the world’s cheapest energy within our reach: Natural gas here costs $3.55 per million British thermal units, versus roughly $12 in Europe and $16 in Japan. Cheap energy not only reduces our trade deficit and our addiction to Middle East oil, it also makes our factories more competitive globally — a boon for a country that had gone from exporting American goods to exporting American jobs.The biggest beneficiaries are energy-guzzling companies like chemical producers and steelmakers, and Barron’s has identified eight stocks that should prosper in our gas-fueled manufacturing upswing. They are Southwestern Energy, LyondellBasell Industries, Nucor, Dover, Calpine, CF Industries, Williams, and Union Pacific. But any glow will also rub off on regional lenders, home builders, and local small businesses. “The U.S. is the Saudi Arabia of natural gas,” declares Nancy Lazar, co-head of the New York research firm International Strategy & Investment. “And Middle America is my favorite emerging market.”

Our energy boom got cracking with fracking, a controversial process in which pressurized fluids are pumped through rock formations, often a mile or more under the ground, to extract oil and gas. Critics condemn fracking, which they contend causes environmental harm, but even they agree that it’s led to an abundance of cheap gas. Over the past six years, U.S. production of petroleum and natural gas has jumped from 15 million barrels of oil-equivalent a day to 20.1 million, a 20-year high. Over the same period, imports have fallen from 14 million barrels a day to below eight million, a 25-year low.

It’s a sign of the times: Graduates from the South Dakota School of Mines & Technology — acceptance rate: 88%; mascot: Grubby the Miner — now command a median starting salary 16% higher than that of Yalies.

By 2020, the U.S. will become the world’s biggest oil producer, says the International Energy Agency. By 2025, North America will be a net energy exporter, predicts ExxonMobil (XOM).

That edge should remain ours for decades. “It isn’t just the huge reserves we have underground,” says Tim Parker, who manages T. Rowe Price’s natural-resource stock portfolios. “No one else has our predictable cocktail of infrastructure already in place, know-how, a relative abundance of water, and a favorable royalty regime that give landowners a stake in the exploration game.” Europe, for instance, is averse to fracking and has little infrastructure; Japan has hardly any shales; and while China has vast reserves, only shales nudging the Yangtze River have enough water for fracking.

Of course, an especially frigid winter could send gas prices soaring, but any such spike should be temporary. Given our expanding reserves and record inventory, commodity strategists expect U.S. natural gas to stay between $3 and $5 per million BTUs for years — well below prices abroad.

CHEAP GAS ISN’T THE ONLY booster in our tank. In the decade since China joined the World Trade Organization in 2001, that nation has become Earth’s low-cost factory. But wages and benefits there are rising 15% to 20% a year, while they’re stagnant here. Despite Beijing’s efforts to hold it down, the yuan has gained 33% against the dollar since 2005. Industrial land averages $10.22 a square foot across China, but rises to $11.15 in the coastal city of Ningbo and $21 in Shenzhen — compared with $1.30 to $4.65 in Tennessee and North Carolina. “Within five years, the total cost of producing many products will be only about 10% to 15% less in Chinese coastal cities than in parts of the U.S. where factories are likely to be built,” says Hal Sirkin, a senior partner at Boston Consulting Group. Add duties and shipping, and the cost gap shrinks further.

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Walmart to Boost Sourcing of U.S. Products by $50 Billion Over the Next 5 Years

January 16, 2013 by 3 Comments

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NEW YORK, Jan. 15, 2013 – Walmart today announced bold commitments to increase domestic sourcing of the products it sells and help veterans find jobs when they come off active duty. Speaking at the National Retail Federation’s annual BIG Show, Walmart U.S. President and CEO Bill Simon also announced the company is helping part-time associates who want to be full time, make that transition.

“We want all of our associates to find the career opportunities they want with Walmart,” said Simon. “We will make sure part-time associates have full visibility into full-time job openings in their stores and nearby stores, and that they always have first shot at those jobs. We will also bring more transparency to our scheduling system so part-time workers can choose more hours for themselves.”

U.S. Manufacturing

On domestic sourcing, Walmart and Sam’s Club will buy an additional $50 billion in U.S. products over the next 10 years. The company will grow U.S. manufacturing on two fronts: by increasing what it already buys here – in categories like sporting goods, apparel basics, storage products, games, and paper products, and by helping to onshore U.S. production in high potential areas like textiles, furniture and higher-end appliances.

“At the heart of our national political conversation today is one issue: creating jobs to grow the economy,” said Simon. “We are meeting with our suppliers on domestic manufacturing and are making a strong commitment to move this forward.”

A popular misconception about Walmart is where the majority of the products on its shelves are sourced.  According to data from its suppliers, items that are made here, sourced here, or grown here account for about two-thirds of what the company spends to buy products at Walmart U.S. The company sees room to do more.

To help achieve this commitment, Walmart has created a senior team within the company to lead this effort and it will sign longer term purchase agreements to give suppliers more certainty.

“We can do so much more by working in partnership – as an industry and with governments,” said Simon. “I’ve talked with a number of governors, including the incoming chair of the National Governors Association, Oklahoma Governor Mary Fallin, about how governors and retailers and manufacturers can drive this issue together. Governors from both sides of the aisle are enthusiastic about getting their constituents back to work.”

This summer, Walmart will help convene a manufacturing summit for stakeholders to work together and help accelerate these changes.

Veterans

Beginning Memorial Day, Walmart will offer a job to any honorably discharged veteran in his or her first 12 months off active duty. Most of these jobs will be in Walmart stores and clubs, and some will be in distribution centers and the Home Office.

“Hiring a veteran can be one of the best business decisions you make,” said Simon. “Veterans have a record of performance under pressure. They’re quick learners and team players. They are leaders with discipline, training, and a passion for service. There is a seriousness and sense of purpose that the military instills, and we need it today more than ever.”

Walmart’s pledge is not the end of this effort; it’s the beginning. The company projects it will hire more than 100,000 veterans during the next five years.

“We believe Walmart is already the largest private employer of veterans in the country, and we want to hire more,” added Simon. “I can think of no better group to lead in revitalizing our economy than those who have served in uniform. Through their service, veterans give us a land of freedom. When they return, it must be to a land of possibility.”

Walmart has spoken with the White House about this commitment. The First Lady’s team immediately expressed an interest in working with Walmart and with the entire business community to join forces to build upon this commitment. In the next several weeks, the White House will convene the Department of Veterans Affairs, Department of Defense, and major American employers to encourage businesses to make significant commitments to train and employ America’s returning heroes.

“This is exactly the kind of act we hoped would be possible when we started Joining Forces – a concrete example of our nation’s love and support that our troops, veterans, and their families can feel in their lives every day,” said First Lady Michelle Obama. “As our wars come to an end and our troops continue to come home, it’s more important than ever that all of us – not just government, but our businesses and nonprofits as well – do our part to serve those who have served us so bravely.  So today, my challenge is simple: for every business in America to follow Walmart’s lead by finding innovative solutions that both make sense for their workplaces and make a difference for our veterans and their families.  Given what we’ve seen from Walmart and so many other companies over the past two years, we know that they will.”

Simon also called on the retail industry to work together to provide greater career opportunities for veterans.

“Imagine what retail could do together,” said Simon. “We could leave an incredible legacy as an industry. We can be the ones who step up for our heroes. And we can do this now.”

Click here for Bill Simon’s remarks.

About Walmart
Wal-Mart Stores, Inc. (NYSE: WMT) helps people around the world save money and live better – anytime and anywhere – in retail stores, online, and through their mobile devices.  Each week, more than 200 million customers and members visit our 10,400 stores under 69 banners in 27 countries and e-commerce websites in 10 countries. With fiscal year 2012 sales of approximately $444 billion, Walmart employs more than 2.2 million associates worldwide. Walmart continues to be a leader in sustainability, corporate philanthropy and employment opportunity. Additional information about Walmart can be found by visitinghttp://corporate.walmart.com, on Facebook at http://facebook.com/walmart and on Twitter at http://twitter.com/walmartnewsroom. Online merchandise sales are available at http://www.walmart.com and http://www.samsclub.com.

 

 

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All American Clothing Co. Finishes Record Setting Year In 2012

January 16, 2013 by 1 Comment

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The All American Clothing Co. has survived a clothing industry that has lost -84% of its labor force since 1995 as according to the U.S. Bureau of Labor Statistics.

The All American Clothing Co. announced today that the company has experienced another record year. In 2012 the USA made clothing company’s annual revenue increased 20% as compared to 2011. This marks the company’s tenth straight year of solid growth. A great sign for American manufacturers in today’s economy.

Due to its success the All American Clothing Co. has moved from a 5,000 square foot facility to a 55,000 square foot facility, doubled the amount of its inventory, and has created many new jobs at their headquarters. The American made clothing company now looks forward to a new year full of surprises in 2013 as they continue to grow and create jobs for American citizens.

About All American Clothing Co.

Lawson Nickol founded the USA Made clothing company in 2002 with a goal to make a difference. His dream was to support USA families and jobs by producing high-quality clothing in the USA at an affordable price. He founded the company with the help of his son BJ and wife Mary Ann Nickol. Together, the Nickol family started their company in the USA to provide jobs and a tax base that ultimately supports communities across the United States.

The All American Clothing Co. has overcome many obstacles to chase the American Dream. The All American Clothing Co. has survived a clothing industry that has lost -84% of its labor force since 1995 as according to the U.S. Bureau of Labor Statistics. The trend of outsourcing has made it tough on the company to compete with companies like them. The recession has kept consumers tight to their wallets and the American economy has been weak. These factors had the odds stacked against the success of the All American Clothing Co. But, with the help of many American Made supporters the has company pushed on.

Today, the Nickol family’s dream holds true. The All American Clothing Co. continues to grow and succeed by selling quality USA made clothing at an affordable price. The company and its supporters continue to create jobs and make a difference. Visit http://www.allamericanclothing.com or follow them onFacebook to help make a difference.

We’re Certified

Made in USA Certified

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Obama Push on Advanced Manufacturing Stirs Economic Debate

January 14, 2013 by Leave a comment

In a White House switch, pro-manufacturing advisers have the ear of the president.

Jobs plan: President Obama addressing manufacturing workers in 2012.

Before a packed arena at the national convention of the Democratic Party in September, Barack Obama outlined a vision for America’s economic recovery with manufacturing as its engine.

“After a decade of decline, this country created over half a million manufacturing jobs in the last two-and-a-half years,” Obama told the cheering crowd in Charlotte, North Carolina. “If we choose this path, we can create a million new manufacturing jobs in the next four years.”

To fulfill those promises, the White House is turning to an economic tool not seen in Washington for years: industrial policy.

Emboldened by a new cadre of advisors, the Obama administration has proposed policies to boost domestic manufacturing involving tax breaks, new R&D spending, and vocational training of two million workers including around advanced technologies like batteries, computing, aerospace, and robotics.

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Made in America, Again

January 14, 2013 by Leave a comment

Bringing manufacturing jobs back to the U.S. is politically savvy and can make economic sense.

Offshore labor: A worker in a Foxconn factory assembles consumer electronics for U.S. markets.

At a dinner for Silicon Valley big shots in February 2011, President Obama asked Steve Jobs what it would take to manufacture the iPhone in the United States. Apple’s founder and CEO is said to have responded directly: “Those jobs aren’t coming back.”

In December, Apple reversed course, saying it planned to assemble a line of Mac computers in the U.S. With that, Apple joined a wave of companies that say manufacturing in this country makes sense again. Companies that say they’ve brought back jobs include General Electric, Michigan Ladder, and Wham-O, which in 2010 hired eight people to make Frisbees in Los Angeles instead of China. An MIT study in 2012 found that 14 percent of companies intend to move some manufacturing back home.

The idea is known as “reshoring.” Although Chinese wages are a fraction of U.S. labor costs, rising shipping rates, quality problems, and the intangible costs of being far from headquarters all add up. That’s why some companies have begun to rethink the manufacturing equation.

MIT Technology Review interviewed Harry Moser, head of the Chicago-basedReshoring Initiative, about the trend. Moser, a former industry executive whose family has been involved in American manufacturing for a century, says he grew up “experiencing the glory of U.S. manufacturing.” He created the initiative to help companies compare the real costs of manufacturing at home and abroad, and to track the experiences of those who are returning.

Why are people talking about reshoring all of a sudden?

It’s actually been happening over the last few years. The obvious answer is that Chinese wages are doubling every four years. The consultants who five years ago were helping people offshore are now helping them inshore. And then you have President Obama making a big deal over how to reduce imports and start making stuff again.

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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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