China lays out official stance on trade talks with U.S.

On Sunday, China released a comprehensive white paper to formalize its positions on trade negotiations with the U.S. The set of statements come as the trade war escalates and Beijing threatens to hit back with a retaliatory blacklist of U.S. firms. Here are some key takeaways from the press conference announcing the white paper:

U.S. ‘responsible’ for stalled trade talks

The “U.S. government bears responsibility” for setbacks in trade talks, chided the paper, adding that the U.S. has imposed additional tariffs on Chinese goods that impede economic cooperation between the two countries and globally.

While it’s “common” for both sides to propose “adjustments to the text and language” in ongoing negotiations, the U.S. administration “kept changing its demands” in the “previous more than ten rounds of negotiations,” the paper alleged.

On the other hand, reports of China backtracking on previous trade deals are mere “mudslinging,” Wang Shouwen, the Chinese vice minister of commerce and deputy China international trade representative, said as he led the Sunday presser.

China ready to fight if forced to

China does not want a trade war with the U.S, but it’s not afraid of one and will fight one if necessary, said the white paper.

Beijing’s position on trade talks has never changed — that cooperation serves the interests of both countries and conflict can only hurt both — according to the paper. CNBC’s Eunice Yoon pointed out that Beijing’s latest stance repeats previous statements made back in September.

#China white paper highlights out on state media. My take on msg so far:
-China is the grown-up
-China is the victim
-China wants talks but only as an equal
-China will fight US for as long as it takes
(Not too diff from Sep 2018 white paper same topic) https://t.co/A5LCw3kZVL

— Eunice Yoon (@onlyyoontv) June 2, 2019

Deals must be equal

Difference and frictions remain on the economic and trade fronts between the two countries, but China is willing to work with the U.S. to reach a “mutually beneficial and win-win agreement,” stated the paper. However, cooperation has to be based on principles and must not compromise China’s core interests.

“Nothing is agreed until everything is agreed,” Wang said.

He said one needs not “overinterpret” China’s soon-to-come entity list, adding that it mainly targets foreign companies that run against market rules and violate the spirit of contracts, cut off supplies to Chinese firms for uncommercial reasons, damage the legitimate rights of Chinese companies, or threaten China’s national security and public interests.

China respects IP rights

The paper also touched on issues that are at the center of the prolonged U.S.-China trade dispute, including China’s dealings with intellectual property rights. U.S. allegations of China over IP theft are “an unfounded fabrication,” said the white paper, adding that China has made great efforts in recent years to protect and enforce IP rights.

Wang claimed that China pays the U.S. a significant sum to license IP rights every year. Of the $35.6 billion it shelled out for IP fees in 2018, nearly a quarter went to the U.S.

Investments are mutually beneficial

The white paper claimed that bilateral investments between the two countries are mutually beneficial rather than undermining for U.S. interests when taken account of “trade in goods and services as well as two-way investment.”

The Chinese government also pushed back at claims that it exerts influence on businesses’ overseas investments.

“The government is not involved in companies’ business activities and does not ask them to make specific investments or acquisitions,” said Wang. “Even if we make such requests, companies won’t obey.”

In response to China’s probe into FedEx over Huawei packages that went stray, Wang assured that “foreign businesses are welcome to operate legally in China, but when they break rules, they have to cooperate with regulatory investigations. That’s indisputable.”

The Shenzhen-based smartphone and telecom giant has been hit hard by during the trade negotiations as the Trump administration orders U.S. businesses to sever ties with the Chinese firm.

from TechCrunch https://tcrn.ch/2Wj54pn

Meet the first private companies that NASA has selected to deliver payloads to the Moon

The National Aeronautics and Space Administration has selected Astrobotic, Intuitive Machines, and Orbit Beyond as the first three private companies to deliver science and technology payloads under the Commercial Lunar Payload Services (CLPS) as part of its Artemis program.

In an announcement yesterday, the administration said that each lander will carry NASA-provided payloads to conduct science investigations and demonstrate technologies on the lunar surface to pave the way for NASA astronauts lunar return in 2024. In all NASA will dole out up to $253 million in contracts to the three companies for their respective missions.

“Our selection of these U.S. commercial landing service providers represents America’s return to the Moon’s surface for the first time in decades, and it’s a huge step forward for our Artemis lunar exploration plans,” said NASA Administrator Jim Bridenstine. ”Next year, our initial science and technology research will be on the lunar surface, which will help support sending the first woman and the next man to the Moon in five years. Investing in these commercial landing services also is another strong step to build a commercial space economy beyond low-Earth orbit.”

As part of the submissions, each company proposed flying specific instruments including gear to predict lander positions; measure lunar radiation; assess lander impact on the Moon; and assist with navigation.

It’s not only a win for NASA, and the companies, but another feather in the cap for XPRIZE — given that Astrobotic was initially spun out of Carnegie Mellon University to compete for the Google Lunar XPRIZE (GLXP) in 2007.

The Pittsburgh-based Astrobotic, which is backed by the Space Angels Network, was awarded $79.5 million to fly up to 14 payloads to Lacus Mortis, a large crater on the near side of the moon by July 2021.

Intuitive Machines, out of Houston, received $77 million to fly five payloads to Oceanus Procellarum, a dark spot on the moon in the same timeframe. While Edison, N.J.-based Orbit Beyond is flying four payloads to the lunar lavea plain of Mare Imbrium, in one of the Moon’s many craters by September 2020.

[gallery ids="1835626,1835627,1835629"]

“These landers are just the beginning of exciting commercial partnerships that will bring us closer to solving the many scientific mysteries of our Moon, our solar system, and beyond,” said Thomas Zurbuchen, associate administrator of NASA’s Science Mission Directorate in a statement. “What we learn will not only change our view of the universe, but also prepare our human missions to the Moon and eventually Mars.”

NASA’s partners have agreed to provide end-to-end commercial payload delivery services including: payload integration and operations, and launch and landing.

These first steps from NASA pave the way for not only the Administration’s lunar efforts, but also its eventual intentions to spacecraft and astronauts on Mars.

“This announcement starts a significant step in NASA’s collaboration with our commercial partners,” said Chris Culbert, CLPS program manager at NASA’s Johnson Space Center, in a statement from Houston. “NASA is committed to working with industry to enable the next round of lunar exploration. The companies we have selected represent a diverse community of exciting small American companies, each with their own unique, innovative approach to getting to the Moon. We look forward to working with them to have our payloads delivered and opening the door for returning humans to the Moon.”

from TechCrunch https://tcrn.ch/30XGwAJ

Equity transcribed: Is the tech press too positive in its coverage of startups?

Welcome back the latest transcribed edition of Equity, the TechCrunch podcast that takes a closer look at the startup headlines from the week.

Kate Clark and Alex Wilhelm kick this week off by discussing comments on Twitter made by Y Combinator co-founder Paul Graham about the tech press. They then took a look at Uber’s first-quarter numbers, Brex raising, SoFi raising (and entering talks to buy the naming rights for the upcoming Los Angeles Rams stadium) and a lot more.

Here’s a sample:

Alex: Uber’s expectations were low. They had set, in their last S-1/A, these figures out and they came in the middle of revenue and loss expectations. I think the phrase is priced in, and that’s an odd place to be.

Kate: Yeah. It’s good that they came in on expectations. Lyft, you remember, had losses that were way, way, way higher than expected. But I would just say bottom line is, none of these companies, particularly I’m thinking of like Uber, Pinterest and Lyft, which are just recent unicorns to have gone public that are not enterprise software businesses. Is that they’re not profitable, and they’re not really showing clear paths to profitability yet. So, it’s just a little bit like, well, not looking so hot.

Alex: Just a little bit more about this. Because I know people aren’t going to go read the earnings reports because it’s boring. But if you dig into it, gross bookings rose 34% year over year. But adjusted net rev only grew 14%. Which means that of that new gross bookings, Uber’s take rate probably went down a little bit. Which implies that probably Uber Eats grew a lot and Uber’s percent cut of that revenue is smaller. So, the gross bookings growth looks great, but it doesn’t translate.

Click play below to have a listen and subscribe on Apple Podcasts, Overcast, Pocket Casts, Downcast or wherever you listen to podcasts. 

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Alex: If you’re looking to sell your private company stock, SharesPost has a solution for you. With more than 4 billion in company approved transactions, SharesPost is the leading marketplace for private company shares. To learn more, visit us at sharespost.com/equity.

Kate: Hello, and welcome back to Equity, TechCrunch’s venture capital focus podcast. I’m back this week with Crunchbase news Editor in Chief, Alex Wilhelm Hey Alex, how’s it going?

Alex: Things are good. It’s cold out in the East Coast. But I’m more excited to hear about things on your end because you are in the new TechCrunch podcast studio. What is it like?

from TechCrunch https://tcrn.ch/2EO0OmZ

Foxconn halts production lines for Huawei phones, according to reports

Huawei, the Chinese technology giant whose devices are at the center of a far-reaching trade dispute between the U.S. and Chinese governments, is reducing orders for new phones, according to a report in The South China Morning Post.

According to unnamed sources, the Taiwanese technology manufacturer Foxconn has halted production lines for several Huawei phones after the Shenzhen-based company reduced orders. Foxconn also makes devices for most of the major smart phone vendors including Apple and Xiaomi (in addition to Huawei).

In the aftermath of President Donald Trump’s declaration of a “national emergency” to protect U.S. networks from foreign technologies, Huawei and several of its affiliates were barred from acquiring technologies from U.S. companies.

Tech stocks slide on US decision to blacklist Huawei and 70 affiliates

The blacklist has impacted multiple lines of Huawei’s business including it handset manufacturing capabilities given the company’s reliance on Google’s Android operating system for its smartphones.

In May, Google reportedly suspended business with Huawei, according to a Reuters report. Last year, Huawei shipped over 200 million handsets and the company had a stated goal to become the world’s largest vendor of smartphones by 2020.

These reports from The South China Morning Post are the clearest indication that the ramifications of the U.S. blacklisting are beginning to be felt across Huawei’s phone business outside of China.

Huawei was already under fire for security concerns, and will be forced to contend with more if it can no longer provide Android updates to global customers.

Contingency planning is already underway at Huawei. The company has built its own Android-based operating system, and can use the stripped down, open source version of Android that ships without Google Mobile Services. For now, its customers also still have access to Google’s app store. But if the company is forced to make developers sell their apps on a siloed Huawei-only store, it could face problems from users outside of China.

Huawei and the Chinese government are also retaliating against the U.S. efforts. The company has filed a legal motion to challenge the U.S. ban on its equipment, calling it “unconstitutional.”  And Huawei has sent home its American employees deployed at R&D functions at its Shenzhen headquarters.

It has also asked its Chinese employees to limit conversations with overseas visitors, and cease any technical meetings with their U.S. contacts.

Still, any reduction in orders would seem to indicate that the U.S. efforts to stymie Huawei’s expansion (at least in its smartphone business) are having an impact.

A spokesperson for Huawei U.S. did not respond to a request for comment.

from TechCrunch https://tcrn.ch/2QDh4M9

Twitter takes down ‘a large number’ of Chinese-language accounts ahead of Tiananmen Square anniversary

Twitter has suspended a large number of Chinese-language user accounts, including those belonging to critics of China’s government. It seems like a particularly ill-timed move, occurring just days before thirtieth anniversary of the Tiananmen Square massacre on June 4.

“A large number of Chinese @Twitter accounts are being suspended today,” wrote Yaxue Cao, founder and editor of the U.S.-based publication China Change. “They ‘happen’ to be accounts critical of China, both inside and outside China.”

Cao then went on to highlight a number of the suspended accounts in a Twitter thread.

Among the accounts suspended are some prominent, long-time Chinese-language tweeps: @Sasha_Gong, @wmeng8. Both live in the US. More accts have been suspended than I can keep up. @Twitter @twittersecurity @TwitterForGood pic.twitter.com/QCDa6yRu1K

— Yaxue Cao (@YaxueCao) June 1, 2019

The Chinese government reportedly began cracking down late last year on people who post criticism on Twitter. The author of that story, The New York Times’ Paul Mozur, has also been tweeting about the takedowns, noting that “suspensions seem not limited to accounts critical of China” and that it appears to be “an equal opportunity purge of Chinese language accounts.”

In response, Twitter’s Public Policy account said it suspended “a number of accounts this week” mostly for “engaging in mix of spamming, inauthentic behavior, & ban evasion.” It acknowledged, however, that some of the accounts “were involved in commentary about China.”

“These accounts were not mass reported by the Chinese authorities — this was a routine action on our part,” the company said. “Sometimes our routine actions catch false positives or we make errors. We apologize. We’re working today to ensure we overturn any errors but that we remain vigilant in enforcing our rules for those who violate them.”

Per @Twitter’s explanation, it’s cleaning up CCP bots but accidentally suspended 1000s anti-CCP accts. That doesn’t make sense. 1 thing twitter needs to look into is if this process was abused by some1 on its payroll. A dark thought but not implausible. @Policy @twittersecurity

— Yaxue Cao (@YaxueCao) June 1, 2019

By this point, the deletions had attracted broader political notice, with Florida Senator Marco Rubio declaring, “Twitter has become a Chinese govt censor.”

And while Cao acknowledged Twitter’s official explanation, as well as help she’s received from the company in the past, she said, “Per @Twitter’s explanation, it’s cleaning up CCP bots but accidentally suspended 1000s anti-CCP accts. That doesn’t make sense.”

from TechCrunch https://tcrn.ch/2Xk7zUB