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China Expands International Express Service Overseas

Xinhua reported that, in recent years, China’s international express service has rapidly expanded overseas. For the first six months of 2018, the International express service’s volume, including service to Hong Kong and Macau, reached 520 million pieces, which was a 43.1 percent increase from the same period in 2017. China’s JD Logistics has a delivery service that covers seven islands and 483 cities in Indonesia. YTO Express Group, ZTO Express, and Rookie Network can provide supply chain service in receiving, warehousing, and freight forwarding with the ability to deliver anywhere around the world in less than 10 days. These freight companies have also invested in building international air transportation channels and setting up warehouses in other countries, including the U.S., U.K., Australia, and Japan. The Xinhua article stated, “China is using its logistics technology and supply chain management capabilities to let the world enjoy “China’s speed.”

Source: Xinhua, August 5, 2018

As Supplier of 40 percent of Pharmaceutical Raw Materials to Other Drug Companies, China’s Drug Quality Causes Concern

The vaccine safety problem that has occurred in China recently highlights the ineffectiveness of China’s drug regulatory system. At present, since China supplies 40 percent of world’s pharmaceutical raw materials, the international community has begun to question its drug quality. The Central News Agency reported that, in 2017, the value of pharmaceutical raw materials that China exported was US$29 billion. Their customers included Teva Pharmaceutical, Johnson & Johnson, and Novartis. It is estimated that 80 percent of the pharmaceutical raw materials used by U.S. drug companies are sourced from China and India. In 2017, Chinese drug manufactures received 22 warnings from the FDA compared to 5 warnings in 2014. European Medicines Agency data reported that 10 percent of the pharmaceutical raw materials made in China failed its inspection. In July, European Medicines Agency and the U. S. Food and Drug Administration issued warnings that antihypertensive drugs made in Zhejiang Province could cause cancer. In Beijing, the officials announced that hundreds and thousands of vaccines with quality issues were sold on the market and vaccine manufacturers were accused of forged production data. According to the FDA news website, in 2017, China joined the ICH (International Council for Harmonization) as its eighth regulatory member, pledging to transform its pharmaceutical regulatory authorities, industry, and research institutions gradually in order to implement the international coalition’s technical standards and guidelines.

Source: Central News Agency, August 7, 2018

Huawei Surpassed Apple to Become Number Two as a Cellphone Maker

Well-known Chinese news site Sohu recently reported that, based on numbers from the U.S. research institute IDC, in the second quarter of 2018, Chinese communications equipment vendor Huawei surpassed Apple to become the world’s second largest cellphone manufacturer in terms of handsets sold. Huawei’s Q2 global handset shipment (54.2 million) is significantly more than that of Apple’s (41.3 million), and Huawei now has a global market share of 15.8 percent (versus Apple’s 12.1 percent). Samsung remains the top vendor in the same category but saw a 1.8 percent decline in sales, down to a shipment volume of 71.5 million, with a 20.9 percent global market share. Two other Chinese handset makers, Xiaomi and Oppo took the world’s number four and five positions. In Q2, Huawei did take the top leader position from Samsung in the Russian market. It set the goal to be the world’s number one cellphone maker in 2020.

Source: Sohu, August 1, 2018

Jinan Uses Drones to Capture Drivers Using Cell Phones

On July 31, the “Airborne Traffic Police,” the multi-rotor drones, were formally put into use in Jinan City of Shandong Province. Their main purpose was to photograph drivers who were using phones illegally or making phone calls while driving. This is the first time that Jinan has used police drones to capture traffic violators. The traffic police team has invested in four drones to cooperate with law enforcement.  Beijing Youth Daily reported that, half an hour into their debut, five illegal activities were captured on the spot.

“At 7 o’clock in the morning, at one traffic light crossroad, a multi-rotor drone carrying a high-definition camera was hovering around and ‘observing’ the car drivers to see whether there were illegal activities such as using mobile phones and making phone calls. Not long after, a white car appeared in the surveillance video connected to the drone. While waiting at the red light, the driver’s right hand was on the steering wheel and his left hand picked up the phone to play. The drone repeatedly adjusted the angle and focal length, while recording the whole process of the man playing with the mobile phone while driving. Soon, the traffic police at the traffic light intersection found the man and fined him for the violation.

“The Jinan Municipal Public Security Bureau formed the police aviation team, which started trial operations in April of this year. The members of the police team have superb drone flight skills and practical experience in traffic management. The team has carried out trial operations for nearly three months and the team members have accumulated more than 200 hours of safe flight time. The drone and its videotaping device are specially designed for collecting evidence of both dynamic and static traffic violations.”

Source: Beijing Youth Daily, August 1, 2018

China Launched Ninth and Tenth Beidou Satellites to Provide Service to Belt and Road Countries

Beijing News reported that, since China launched the first satellite of the BeiDou 3 system on November 5, 2017, on July 29, it successfully launched the ninth and tenth satellites from the Xichang Satellite Launch Center in Sichuan Province. Before the end of this year, China plans to launch eight more satellites so it will have a total of 18 satellites to complete the BeiDou 3 basic system which will provide service to countries along the Belt and Road project. According to the article, the China Academy of Space Technology and the China Academy of Launch Vehicle Technology developed the satellites and the launch system used in the recent launch. By 2020, China will complete the BeiDou system and will have 35 satellites with the ability to provide navigation service worldwide.

Source: Beijing News, July 29, 2018

Former Huawei Employee Sued the Company for Sending Him to Steal Trade Secrets

Well-known Chinese news site Netease recently reported that Jesse Hong, a former employee of the Huawei U.S. branch, Futurewei Technologies in Santa Clara, sued the company for firing him due to the fact that he thought it was wrong to spy on Huawei competitors. According to Hong, in 2016 Huawei sent people twice to steal information from competitors and transmit the stolen technical information back to Huawei’s Chinese headquarters. Hong warned his colleagues that these activities were not legal and later he was fired. Hong asked for US$105 million in damages in his suit. Huawei said the company never collected any of the information that Hong described.

Source: Netease, July 15, 2018

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