Wednesday, 1 February 2023

China: US investors plow billions into AI sector

According to a Reuters report investors from United States, including the investment arms of Intel and Qualcomm accounted for nearly a fifth of investments in Chinese artificial intelligence companies from 2015 to 2021.

The document, released by CSET, a tech policy group at Georgetown University, comes amid growing scrutiny of US investments in AI, Quantum and semiconductors, as the Biden administration prepares to unveil new restrictions on US funding of Chinese tech companies.

According to the report, 167 US investors took part in 401 transactions, or roughly 17% of the investments into Chinese AI companies in the period.

Those transactions represented more than US$40 billion in investment, or 37% of the total raised by Chinese AI companies in the 6-year period. It was not clear from the report, which pulled information from data provider Crunchbase, what percentage of the funding came from the US firms.

Qualcomm Ventures and Intel Capital were involved in 13 and 11 investments in Chinese AI companies respectively, outpaced by GGV Capital which led US firms with 43 total investments in the sector, the data showed.

The Biden administration is expected to unveil an executive order this year curbing some US investments in sensitive Chinese tech industries, as hawks in Washington blame American investors for transferring capital and valuable know-how to Chinese tech companies that could help advance Beijing's military capabilities.

According to the report, US investor GSR Ventures invested alongside China's IFlytek Co in a Chinese AI company after the speech recognition firm was added to a trade blacklist.

Silicon Valley Bank and Wanxiang American Healthcare investments group made investments in Chinese AI firms alongside China's Sensetime before the powerhouse in facial recognition technology was added to the same trade blacklist.

Both companies were added to the blacklist, which effectively bars them from receiving US tech exports, in 2019 for alleged human rights violations related to the repression of Uighur Muslims.

Some of the largest investments include Goldman Sachs' solo investment in 1KMXC, an AI-enabled robotics company, as well as an investment by three US-based VC firms in Geek+, an autonomous mobile robot company, the report showed.

Only one Chinese AI company that received funding from US investors is involved in developing AI applications for military or public safety uses, according to CSET.

 

 

 

 

 

 

Deadly British Crimes Against Indians

The perception created by historians is that British Raj did a lot to improve the condition of masses in India. However, there is a contrary view that the Raj was a cruel and oppressive regime responsible for the deaths of an estimated 35 million Indians.

The followings are some examples of the anti-human records of British Raj in India, which has one of the blackest colonial records among Europeans.

1. Stealing of Valuable Indian Artifacts 

The list of Indian artifacts that were stolen in colonial times and are now in the United Kingdom is long. Artifacts that the British seized, looted or took away as "gifts" include the 105.6-karat "Kohinoor" diamond. Lord Harihara idol, Sultanganj Buddha, Tipu Sultan’s personal possessions, Wine cups of Shah Jahan and Maharaja Ranjit Singh’s throne are among the other treasured possessions, idols and artifacts that were stolen and looted from India years ago but still remain in the possession of the British museums and royals. Many Indians are still sensitive about artifacts that were stolen during the British conquest of India and have yet to be returned.

2. Using Indian Army in WWII 

The British colonial regime in India was heavily dependent on the Indian Army. The Indian Army that had been used by Britain during World War II fought in Ethiopia against the Italian Army, in Egypt, Libya, Tunisia and Algeria against both the Italian and German armies, and, after the Italian surrender, against the German Army in Italy. However, the bulk of the Indian Army was committed to fighting the Japanese Army, first during the British defeats in Malaya and the retreat from Burma to the Indian border; later, after resting and refitting for the victorious advance back into Burma, as part of the largest British Empire army ever formed. These campaigns claimed the lives of over 87,000 Indian servicemen, while 34,354 were wounded, and 67,340 became prisoners of war. World War II was the last time the Indian Army fought as part of the British military apparatus, as independence and partition followed in 1947.

3. Britain Tested Chemical Weapons on Indian Troops

According to a report published by the Guardian, British military scientists tested a chemical weapon on Indian colonial troops during more than a decade of experiments before and during World War II. Hundreds of Indian and British soldiers were exposed to mustard gas in tests conducted in Rawalpindi, which was then part of Britain's Indian colony.

The gas severely burned the soldiers' skin, and caused pain that sometimes lasted for weeks. Some of the soldiers had to be hospitalized. The scientists wanted to compare the effect of the gas on the skin of Indians to the results of experiments done on British soldiers.

4. British EIC Looted Bengal

Backed by a 20,000-strong military force of locally recruited Indian soldiers, in 1757 the British East India Company (EIC) became the effective rulers of Bengal and looted the territory, draining the region’s wealth into Britain. Company tax collectors in Bengal recorded that Indians were tortured to disclose their treasure; cities, towns and villages ransacked. By the end of the eighteenth century, most of India had been seized by this unregulated private company, which had expanded its army to 260,000 men by 1803. 

5. Britain Stole US$45 trillion from India

It has been estimated that Britain stole a total of nearly US$45 trillion from India during the period from 1765 to 1938. The British impoverished India through a taxation operation that equated to systematic theft. Put simply, the British exhorted high taxes in cash from the Indian population, used that tax money to pay Indians for their goods, and then exported the goods overseas and invested the profits into the British economy and a colonial army of Indian men that far surpassed India’s own defence needs.

6. Indians Died of Starvation

The British destabilized crop patterns by forced commercial cropping, and left Indians more prone to famines. Between 12 and 29 million Indians died of starvation while India was under the control of the British Empire. In response to the outbreak of famines, the British authorities rarely made relief aid, insisting that starvation was a natural and necessary check for overpopulation. During the Great Famine of 1876-78 in Madras, it wasn’t until 5.5 million Indians had already died that the British authorities began to administer any relief efforts. Instead of giving charity, the British set up labour camps for the poor where Indian workers were fed food portions that were less than 50% of the size given in Nazi concentration camps.

7. Railways in India Were Paid for Entirely by Indian Taxpayers 

The building of railways across the Raj is often misconceived as one of the gifts that Britain bestowed on India. The railways were in fact paid for entirely by Indian taxpayers, who were also forced to pay higher ticket prices than British personnel and confined to crowded third class compartments. British shareholders were able to make extortionate amounts of money by investing in the railways, without ever paying towards the system through their own taxes.

8. Jallianwala Bagh Massacre

On April 13, 1919, when peaceful protestors defied a government order and demonstrated against British colonial rule in Amritsar, they were blocked inside the walled Jallianwala Gardens and fired upon by Gurkha soldiers. Under the orders of General Dyer, the soldiers kept firing until they ran out of ammunition, killing between 379 and 1,000 protestors and injuring another 1,100, all within 10 minutes. Britain has never formally apologized for the massacre.

9. Flu Pandemic in India

India’s 1918 flu pandemic was the outbreak of influenza in India between 1918 and later in 1920. The pandemic is thought to have killed over 17 million people. When colonists from Britain arrived in India, they brought their soldiers and their war. The British ships carrying troops returning from the First World War in Europe brought the Spanish Flu with them and devastated India. Almost an entire generation of Indians was wiped out. All rivers across India were clogged up with bodies because of a shortage of firewood for cremation. 

Courtesy: Tehran Times

Tuesday, 31 January 2023

Pakistan: Robust vendor industry must for efficient automobile industry

The sector experts are of the consensus that the policy governing automobile industry in Pakistan has remained ‘OEM centric’ from the day one. This includes, incentives for the new entrants, lopsided indigenization policy, nominal difference in the duty rates on CKD kits and basic raw material and above all failure of the government in containing influx of parts as ‘scrap’. As a result, the vendor-industry has been fighting for its existence.

The biggest proof is that the annual turnover of the replacement market (parts market) in Pakistan is estimated around PKR35 billion. Ironically out of this only 5% is being met by the local industry. Most of the parts are imported as ‘scrap’. High-end electronic components are being ‘smuggled’. As a result local vendor fail to achieve economy of scale.

If I peep into the history, disbanding the manufacturing of Bedford trucks and buses in Pakistan is the ‘assassination’ of the units which were manufacturing engine blocks, gear, rings and pistons. This genocide was done soon after nationalization of the unit manufacturing Bedford trucks and buses in Pakistan and commencement assembly of a Japanese brand at the facility. This also led to ‘financial demise’ of Pakistan Machine Tool Factory operating in Karachi-Sindh.

Analysts also refer to the ‘absurd’ policies of the Government of Pakistan. Lately the number of OEMs in Pakistan has exceeded 18, from around half a dozen. All the new entrants were allowed to import completely built units (CBUs) in significantly large quantities and given a long period to even commence local assembly. They were also allowed to import many parts on the premise that local vendors are incapable of producing parts as per their global standards.

A question arises, if the local vendors are incapable of producing parts of international standards, who is to be blame, OEM or vendor? Sector analysts say that the GoP facilitates the OEMs the maximum because they have brought foreign investment. However, even the tier-one parts manufacturers are not given that kind of VVIP status.

At this time headlines are appearing in local media that the OEM are facing problems in opening letters of credit, due to the limited availability of the foreign exchange with State Bank of Pakistan (SBP). However, there is little talk about problems being faced by the vendors, which mostly fall in the category of SMEs and micro-enterprises. There are approximately 2,000 vendor units, which employ nearly 100,000 people.

A points which needs to be deliberated is that OMEs have borrowed heavily from the financial institutions, whereas vendor units, particularly third-tier units having the largest population and employment have invested their own money. Any deviation/concession to the OEMs to import parts which can be produced locally renders these units economically unviable.

Although, some of the readers don’t appreciate reference or comparison with India, it must be remembered that for decades it kept of models which did not have high ecstatic value, only to support the vendor units.

Another problem faced by Pakistan is that at present no steel manufacturing plant is operating in the country. Most of the units are ‘re-melting’ units which mostly use scrap. The output is below ‘prime quality’, which also lowers the quality of the body of the CBUs.

It may not be out of context to say that the two leading tractor manufacturing units face intermittent closure, because of high inventory levels. The incumbent government has allowed import of second-hand tractors, which is highly detrimental for the local manufacturers. It is ironic because the indigenization level is more than 95%.

One also fails to understand that the GoP has fixed agri lending target of PKR 1.8 trillion. The country needs use of machinery in agriculture, and tractor is the basic machine used for ground leveling, particularly laser-guided tractors. Appropriate field leveling also helps in prudent use of water, which is in short supply in the country. 

 

 

 

Iraq: Basrah-Aqaba oil pipeline face bleak outlook

Iraqi aspirations to move ahead with a long-planned crude pipeline from Basrah to Aqaba in Jordan have been dealt a major blow after the head of a powerful Shia military group in Iraq said the project will never happen.

"Jordanians must know their battle is doomed for failure. The Basrah-Aqaba oil pipeline will never be," said Ali al-Asadi, head of Iraq's Harakat Hezbollah al-Nujaba (HaN). "Let them try and they shall witness what happens to them and whoever collaborates with them."

HaN is known for its extremely close ties with Iran. Al-Asadi issued the statement after Iraqi lawmaker Mustafa Jabbar Sanad revealed that Jordanian officials — including the speaker of parliament, the Jordanian king's advisor and the head of intelligence — had met with senior Iraqi Shia, Sunni and Kurdish officials and agreed on the pipeline's implementation.

Sanad is a member of the pro-Iran Shia Co-ordination Framework group and was behind a lawsuit against the federal government in Baghdad over monthly payments to the Kurdistan Regional Government (KRG).

Iraq's speaker of parliament Mohammed al-Halbousi said on January 14, 2023 that the Basrah-Aqaba pipeline will see the light, following a meeting with his Jordanian counterpart Ahmad Al-Safadi during an official four-day visit to Iraq.

Al-Halbousi said the project will be executed as soon as the new government in Baghdad overcomes certain obstacles, not least the high cost of the pipeline.

Baghdad's most recent estimate is that the project will not exceed US$8.5 billion, down from its previous estimate of below US$9 billion.

Costs and financing have been major barriers for the project for several years, with both Iraq and Jordan looking for ways to cut expenses.

The proposed pipeline consists of two sections. A 2 million barrels/day capacity line extending from Basrah to Haditha near the Syrian border would transport crude to Iraqi refineries and power stations. A second one million barrels/day pipeline would extend from Haditha to Aqaba in northern Jordan.

 

Saudi Arabia: Economy grows by 8.7% in 2022

Saudi Arabian economy grew by 8.7% in 2022 as compared to the previous year, according to flash estimates posted by the General Authority for Statistics (GASTAT) on its official website on Tuesday.

According to the report, available at its website, the real GDP during the fourth quarter of 2022 grew by 5.4% as compared to Q4 of 2021, while the real GDP during 2022 grew by 8.7% as compared to 2021.

The report indicated that the real GDP of oil activities grew by 6.1% during the fourth quarter of the year 2022, as compared to the same quarter of the previous year, 2021. The real GDP of oil activities during 2022 grew by 15.4% compared to the previous year, 2021.

The real GDP of non-oil activities grew by 6.2% as compared to the same quarter of the previous year. The real GDP of non-oil activities during 2022 increased by 5.4% as compared to last year.

The report showed that the seasonally adjusted real GDP increased by 1.5% during the fourth quarter of 2022 compared to the third quarter of 2022.

GASTAT is the only official statistical reference for statistical data and information in Saudi Arabia. It carries out all the statistical work in addition to the technical oversight of the statistical sector.

It also designs and implements field surveys, conducts statistical studies and research, analyzes data and information, and documents and archives all works of information and statistical data covering all aspects of life in Saudi Arabia from its multiple sources. 

Central banks bought the most gold in 2022

Central banks around the world added a whopping 1,136 tons of gold worth some US$70 billion to their stockpiles in 2022, by far the most of any year since 1967, the World Gold Council (WGC) said on Tuesday.

The data underlines a shift in attitudes to gold since the 1990s and 2000s, when central banks, particularly those in Western Europe that own a lot of bullion, sold hundreds of tons a year.

Since the financial crisis of 2008-09, European banks stopped selling and a growing number of emerging economies such as Russia, Turkey and India have bought.

Buying dipped during the coronavirus pandemic but accelerated in the second half of 2022, with central banks purchasing 862 tons between July and December 2022, according to the WGC.

Banks including those of Turkey, China, Egypt and Qatar said they bought gold last year. But around two-thirds of the gold bought by central banks last year was not reported publicly, the WGC said.

Banks that have not regularly published information about changes in their gold stockpiles include those of China and Russia.

"Central bank buying in 2023 is unlikely to match 2022 levels," the WGC said.

"Lower total reserves may constrain the capacity to add to existing allocations. But lagged reporting by some central banks means that we need to apply a high degree of uncertainty to our expectations, predominantly to the upside."

The central bank purchases took total gold global gold demand last year to 4,741 tons, up 18% from 2021 and the highest for any year since 2011.

 

 

Monday, 30 January 2023

Blinken reaffirms need for two-state solution

US Secretary of State Antony Blinken urged Israelis and Palestinians to ease tensions on Monday during a visit to Jerusalem, reaffirming a long-stalled peace vision of two states side by side as the only path forward.

Arriving amid the bloodiest violence in years, Blinken focused censure on a Palestinian gun spree outside a synagogue that put Israel on high alert but also cautioned against any celebration or avenging of such bloodshed.

Seven people were shot dead in Friday's attack by an East Jerusalem man who was himself killed by police. Lionized by many fellow Palestinians, he had no known links to militant groups.

A day earlier, Israel carried out an unusually deep raid on the Jenin refugee camp in the occupied West Bank, killing 10 residents, most of them gunmen. At least 35 Palestinians, including fighters and civilians, have died in violence surging since beginning 2023, medical officials say.

"It is the responsibility of everyone to take steps to calm tensions rather than inflame them," Blinken told reporters after landing in Tel Aviv.

He said, “Friday's rampage was more than an attack on individuals. It was also an attack on the universal act of practicing one's faith. We condemn it in the strongest terms”.

"And we condemn all those who celebrate these and any other acts of terrorism that take innocent lives, no matter who the victim is or what they believe. Calls for vengeance against more innocent victims are not the answer."

Israeli Prime Minister Benjamin Netanyahu, whom Blinken met later on Monday, has called for more citizens to carry guns as a precaution against such street attacks. But he has also warned Israelis not to resort to vigilante violence.

Blinken is due to see Palestinian President Mahmoud Abbas on Tuesday.

Palestinian officials said Israeli settlers had set fire on Monday to two cars near the northern West Bank city of Nablus and thrown stones at a house near Ramallah, following a similar attack on Sunday.

Elsewhere in the West Bank, Palestinian officials said Israeli troops killed a 26-year-old man at a checkpoint. The army said troops opened fire on the man's car after he rammed into one of them and tried to flee an inspection.

The last round of US-sponsored talks on founding a Palestinian state alongside Israel stalled in 2014.

Netanyahu's new hardline government includes partners who oppose Palestinian statehood, and control over the Palestinian territories is divided between Abbas, who favours diplomacy, and rival Hamas Islamists, who are sworn to Israel's destruction.

After meeting Netanyahu in Jerusalem, Blinken restated Washington's belief that a two-state solution was the only way to resolve the Israeli-Palestinian conflict.

“As I said to the prime minister, anything that would move us away from that vision is, in our judgment, detrimental to Israel's long-term security and long-term identity as a Jewish and democratic state,” Blinken said.

Recent data indicates that public support for a two-state solution has reached a historic low.

According to a survey published last week by the Palestinian Center for Policy and Research, 33% of Palestinians and 34% of Israeli Jews say they support it, a significant drop from data collected in 2020.

Two-thirds of Palestinians and 53% of Israeli Jews said they opposed the two-state solution.

Blinken also addressed local political tensions, noting that the vibrancy of Israel's civil society has been on full display of late, a reference to large demonstrations against proposed changes in the judiciary that protesters see as undermining judicial independence.

Standing alongside Netanyahu, Blinken said a strength of the US and Israeli democracies was a recognition that building consensus for new proposals is the most effective way to ensure they're embraced and that they endure.