BBC Business News Articles

Coronavirus: Seven ways scammers will exploit consumers

Coronavirus: Seven ways scammers will exploit consumers

Criminals are evolving their behaviour to rip off consumers as the coronavirus crisis develops, trading standards officers have warned.Fake protective equipment is among the products touted by con-artists and National Trading Standards warned further exploitation was on the way.It has listed seven likely scams to watch out for in the coming weeks.One government minister described the scammers as “master opportunists”, and urged people to report cases.’Shocking’The warning list includes:Price gouging – when traders over-inflate products that are likely to be in high demand, such as Cover-19 testing kits
Online fraud – where websites, mobile apps and social media are used to sell counterfeit products as many shoppers buy online rather than in the shops
Copycat websites – on which criminals pose as people delivering legitimate government initiatives, such as energy saving schemes for the home
Claims of miracle cures – including fake coronavirus treatments or quick turnaround tests
Misrepresented home viewings – as online property viewings are now more common, there are risks of buyers or renters not getting the true picture of a home
Fake refund websites – offering “assistance” in claiming refunds which, at the least, is advice that charities offer for free
Targeting the vulnerable – as coronavirus restrictions lead to more isolation and loneliness, criminals are targeting those already vulnerable through schemes such as romance scams
One of the biggest risks is the danger to people’s health when buying unauthorised coronavirus treatments.”It is important to bear in mind that no medicine is licensed specifically for the treatment or prevention of Covid-19,” said Lynda Scammell, senior enforcement officer at the Medicines and Healthcare products Regulatory Agency.”Our advice is to not buy by any products claiming to treat or prevent Covid-19.”Paul Scully, Minister for Small Business, said it was shocking how opportunists were exploiting people. “Scams and profiteering schemes are despicable at any time, but particularly so if they seek to exploit the Covid-19 pandemic,” he said.Anyone who thinks they may have seen or been tricked by a scam should contact the Citizens Advice Consumer Service.

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Unemployment: Planned redundancies twice the rate of last recession

Unemployment: Planned redundancies twice the rate of last recession

Employers in Britain are planning more than twice as many redundancies than they did at the height of the last recession, new figures show.About 180,000 job cuts were planned from January to March 2009, while 380,000 were planned from May to July this year.Completed redundancies could reach 735,000 this autumn, researchers say. The figures were obtained by an Institute for Employment Studies (IES) Freedom of Information request.Social distancing measures to prevent the spread of Covid-19 brought large parts of the UK economy to a standstill, forcing workers to stay at home, closing shops and bringing transport to a halt.As a result, many businesses have been forced to consider reducing their workforces by making employees redundant.Employers in England, Scotland and Wales must notify the Insolvency Service if they plan to make 20 or more workers redundant in any single “establishment” using a form called HR1.This information is not usually published, but on 8 September a Freedom of Information request by the BBC revealed that employers had listed more than 380,000 positions as at risk between May and July 2020.The IES has now obtained and analysed data stretching back as far as 2008.This shows that the current redundancy wave is more than double the previous three-monthly peak of 180,000 from January to March 2009.Then the crisis, which had begun in the finance industry, was affecting most of the economy – and forcing many employers to reduce their staff. “Comparing what is happening now with what was happening in the last recession shows us we are experiencing a jobs crisis unlike anything we have seen before,” said Tony Wilson, Director of the IES.The IES is calling for extra support for viable firms to help them retain staff, as well as training and advice to help those who lose their jobs find new employment rapidly.A government spokesperson said: “Supporting jobs is an absolute priority which is why we’ve set out a comprehensive ‘Plan for Jobs’ to protect, create and support jobs across the UK by providing significant, targeted support where it is needed the most.”Government measures include the £2bn “kickstart scheme” to encourage employers to create new training placements and apprenticeships, extra work coaches in job centres, and a £1,000 incentive to encourage employers to bring staff back from furlough.Will these planned redundancies be completed?Because they are filed at the start of the redundancy process, HR1 forms give an early indication of what is happening in the labour market.The HR1 redundancy figures don’t pick up employers cutting fewer than 20 jobs, so the final total of redundancies is usually higher. The Office for National Statistics also publishes a redundancy count based on the Labour Force Survey, which is used to calculate the monthly unemployment rate. This is always published a few months after the data is gathered, so it hasn’t yet picked up a big spike in redundancies or unemployment.However, Labour Force Survey redundancy figures have been around 20% higher than HR1 figures in recent years.On this basis, the IES estimates that 445,000 jobs could be made redundant between July and September, considerably worse than the three-month peak in the previous recession.During that recession, however, actual redundancies were 80% higher than notified redundancies – which could lead to as many as 735,000 positions being cut at the height of the coronavirus crisis.However, companies sometimes announce plans redundancies which they don’t actually make, because circumstances change. Early 2019, for example, saw a big spike in redundancy plans which were never completed. Mr Wilson believes they could have been linked to fears of a no-deal Brexit, which did not happen. The 2018 spike could be linked to the collapse of the construction company Carillion, which had a lesser impact on jobs than initially feared.Companies in Northern Ireland file HR1 forms with the Northern Ireland Statistics and Research Agency and they are not included in these figures.

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Give us green post-Covid recovery, urges CBI boss

Give us green post-Covid recovery, urges CBI boss

The Confederation of British Industry (CBI) is urging government to create new green jobs to lift productivity after the pandemic.Chief Dame Carolyn Fairbairn will say the UK must become a global leader in climate action at a virtual conference.She will say the next Budget should invest in low-carbon technologies such as hydrogen and carbon capture.A government spokesperson said the prime minister is “committed to tackling climate change”.Dame Carolyn will open the industry body’s first virtual conference about plans for zero emissions.It’s a far cry from times past when the CBI used to warn that tackling climate change could destroy jobs.For several years now the group has promoted the opposite message: that targeted support for clean technologies can actually create jobs.The prime minister and some of his colleagues have spoken of the need for a “green” recovery from the coronavirus pandemic.But Dame Carolyn says actions must now underpin those promises.She is expected to say: “For so many, this feels like a time of fiercely competing goals. The world faces two seemingly separate yet fundamental problems – Covid-19, the biggest health crisis in living memory, and climate change – the defining challenge of the modern era.“But they are not separate. The response to one affects success on the other. And the defining question is, how does the UK use this moment to rebuild our economy?”She says business urgently needs the government to publish a slew of policy documents. That includes a long-term carbon-cutting plan – along with the energy white paper, National Infrastructure Strategy, and plans for the decarbonisation of transport, heat and buildings.She will urge the UK to take a strong international lead: “Together business and government can lay the foundations for a strong, sustainable future.”Not just for the UK, but through our global leadership, beyond our shores as well… a to-do list for this generation to pass on a better world to the next.”The CBI’s “Green Recovery Roadmap” outlines six priorities including:Accelerating the delivery of electric vehicle charging points and funding battery manufacturing
Lifting the cap on auctions for renewable power and introducing a financing model for new nuclear capacity
Becoming a leader in carbon capture, utilisation and storage technology
Spending at least £1bn on testing hydrogen programmes and encouraging the production of hydrogen
The CBI also wants £500m of government cash to support the UK’s first commercial sustainable fuel plant.A government spokesperson told BBC News: “The prime minister is committed to tackling climate change and building back greener, and has set out his vision that the UK should have the most ambitious environmental programme of any country on earth.”They said ministers have set out billions in support for a low-carbon economy. Many policies were in train, they continued, with consultations on ending coal power and phasing out new petrol and diesel cars, supporting renewable energy projects across the UK and announcing over £3bn to transform the energy efficiency of the UK’s homes and public buildings.Follow Roger on Twitter @rharrabin

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TUC: Chancellor urged to 'stand by working families'

TUC: Chancellor urged to 'stand by working families'

The Trades Union Congress (TUC) leader will urge government to act to prevent “mass unemployment” amid the pandemic.The chancellor must “stand by working families” as the furlough scheme nears its end, general secretary Frances O’Grady is set to say at its congress.”If the government doesn’t act, we face a tsunami of job losses,” Ms O’Grady is expected to say.A government spokesperson said supporting jobs was “an absolute priority”.Under the government’s furlough scheme, workers placed on leave have been able to receive 80% of their pay, up to a maximum of £2,500 a month.Take-up has been significant, with 9.6 million workers furloughed since March.The scheme is due to finish at the end of October and Chancellor Rishi Sunak has repeatedly ruled out an extension to it.Speaking at the trade union body’s congress in London on Monday, Ms O’Grady will warn that time is running out to prevent huge job losses as the job retention scheme (JRS) comes to a close.’Don’t walk away'”Unions pushed for the job retention scheme,” Ms O’Grady will say.”Millions of livelihoods were saved – both employees and the self-employed. From this Thursday, it will be just 45 days before the JRS ends.”That’s the notice period that companies have to give if they intend to make mass redundancies.”She is expected to directly appeal to the chancellor in her speech: “So my message to the chancellor is this: ‘We worked together once before. We are ready to work with you again – if you are serious about stopping the catastrophe of mass unemployment.'”Rishi Sunak, stand by working families – don’t walk away.””It’s so much better to keep people working, paying their taxes, spending and helping to rebuild the economy,” she will add.The trade unions body is also calling for a new “job protection and skills deal”, which would include mandatory training and “up-skilling” for workers placed on furlough, for example.A government spokesperson said: “Supporting jobs is an absolute priority which is why we’ve set out a comprehensive ‘Plan for Jobs’ to protect, create and support jobs across the UK by providing significant, targeted support where it is needed the most. “We are continuing to support livelihoods and incomes through our £2bn Kickstart scheme, creating incentives for training and apprenticeships, a £1,000 retention bonus for businesses that can bring furloughed employees back to work, and doubling the number of frontline work coaches to help people find work. “We are also supporting and protecting jobs in the tourism and hospitality sectors through our VAT cut and last month’s Eat Out to Help Out scheme.”

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YouTube faces legal battle over British children's privacy

YouTube faces legal battle over British children's privacy

YouTube is facing a legal battle for allegedly breaching the privacy and data rights of under-13s in the UK.A claim lodged with the High Court against parent company Google accuses the firm of collecting children’s data without parental consent.Privacy expert Duncan McCann, who is bringing the action, argues this is a breach of UK and European (EU) law.A YouTube spokesperson said it does not comment on pending litigation and the platform is not for use by under-13s.Mr McCann, a father of three children under the age of 13, believes that if the case is successful, damages of between £100 and £500 could be payable to those whose data was breached.”When the internet first emerged, we used to be worried about how children used the internet, said Mr McCann.”That is still a problem, but now it’s a two-way street. We need to focus on how the internet is using our children, and ask ourselves if we’re comfortable with them becoming a product for these digital platforms?””That’s the future I don’t want,” he added.Community captions ‘benefit everyone’
YouTube video removals doubled during lockdown
He told the BBC that the class action is the first in Europe brought against a technology firm on behalf of children. He says that estimated damages of more than £2bn are being sought for about five million British children as well as their parents or guardians.He will argue that YouTube and Google have breached the UK’s Data Protection Act and the EU’s General Data Protection Regulations.The case will focus on children who have watched YouTube since May 2018, when the Data Protection Act became law.”I think we’re at the stage, where the only way we can move forward and hold these companies accountable is through the legal process,” Mr McCann said.A YouTube spokesperson said: “We don’t comment on pending litigation. YouTube is not for children under the age of 13. “We launched the YouTube Kids app as a dedicated destination for kids and have made further changes that allow us to better protect kids and families on YouTube,” they added.The video platform has also previously said that it does not sell its users’ personal information to advertising companies.The case is not expected before next autumn.Mr McCann also told the BBC that it will also depend on the outcome of another data and privacy case being brought against Google. Campaign group Foxglove and law firm Hausfeld have also said they would support Mr McCann’s case.

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The coronavirus diagnostics kit made in South Africa

The coronavirus diagnostics kit made in South Africa

South Africa has the highest number of coronavirus cases in Africa – it accounts for half of all reported infections on the continent.Johannesburg is the epicentre of the infections and hospitals are racing to prepare enough beds for new patients, while pathology labs are inundated with tests.But CapeBio, an applied genomics company in South Africa has developed a diagnostics kit that can test for coronavirus within 65 minutes.You can tune into In Business Africa every Friday at 18:30 GMT on BBC World News.

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Restaurants at 'critical risk' of eviction

Restaurants at 'critical risk' of eviction

Food firms have written to the government asking for support as a stand-off with landlords looms over rent holidays.Companies such as Deliveroo called for a targeted extension of the commercial evictions ban, which was introduced at the height of the pandemic.Revo, which represents landlords, said well-known firms were “getting away with not paying their rent”.The government said it was “working closely” with landlords and tenants.In April the government introduced a moratorium on evictions for non-payment of rent, which was then extended until 30 September.In a letter to Prime Minister Boris Johnson, chief executives of these firms called for a targeted extension of the rent holiday for restaurants in city centres and for those in areas under lockdown.”There is a critical risk that many restaurants will face eviction proceedings from 1 October,” the signatories said.UK economy continues recovery in July
Furlough ‘must be extended and targeted’, say MPs
The bosses, including Will Shu of Deliveroo, Alasdair Murdoch, the UK chief executive of Burger King, and Julian Metcalfe of Itsu, also said landlords should not be able to claim full back-rent when the moratorium ends.Instead, rent arrears repayments should be spread across 12 months, they said.”From our experiences of negotiations with landlords, around 30% have indicated their intention to evict, issue final demands for full payment, or otherwise indicated they will not support any restructure of Covid-19-incurred rent debt,” the signatories said.In addition, they asked for tax breaks for empty properties to be changed to discourage evictions.’Huge challenges’But Revo, an industry body for commercial landlords, said: “The blanket moratorium means strongly backed, well known High Street companies are getting away with not paying their rent.”Vivienne King, chief executive of Revo, said that “this is at the cost of vulnerable occupiers, since the revenue shortfall makes it that much harder for property owners to support those occupiers in genuine need.”She added that any extensions to rent holidays should not be funded by the private sector.”The moratoria were meant to be short-term, emergency measures to protect businesses at a time when they could not trade. They too have served their purpose,” she said.Who should foot the rent bill during the pandemic is a Mexican stand-off between the businesses who are struggling and their landlords who’ve got bills to pay, including mortgage payments to their banks.Will Shu – the founder and chief executive of Deliveroo, which delivers food from 35,000 UK restaurants – says the pandemic means restaurants and landlords are “in it together” and that “landlords understand that without these tenants it’s a very different situation on the High Street”. But clearly not all do.Rent negotiations are incredibly complex, especially for restaurant chains with multiple outlets and thus multiple landlords. This is because landlords come in all shapes and sizes, from the big funds which use property to pay our pensions to individuals who rely on the rental income. Landlords argue that without the stick of eviction, tenants have a free pass to not pay up, even when they can, and that changing the rules in this way undermines the UK’s reputation as a safe place to invest. As the next quarter’s rent bill looms and the eviction ban expires at the end of this month, this debate is a ticking time bomb. A government spokesperson said: “We recognise the huge challenges faced by commercial tenants and landlords during this period and we’re working closely with them to ensure they are supported.”We’ve taken unprecedented action to protect jobs and livelihoods, with a package of around £160bn of support, including loans, rates relief and grants for businesses.”Some landlords and commercial tenants have managed to come to agreements, and tenants should pay what they can under a government code of practice.Government loans are available to landlords along with VAT and rates deferrals, the spokesperson added.

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Sir Philip Green's Arcadia 'sorry' after notice pay row

Sir Philip Green's Arcadia 'sorry' after notice pay row

Sir Philip Green’s Arcadia retail empire has apologised after claims it would pay some head office staff only half of their notice pay.Arcadia, whose High Street brands include Topman, Topshop and Dorothy Perkins, said it was “extremely sorry”.All affected employees would get full pay, the firm said.The Unite union, which had threatened legal action, said billionaire Sir Philip should not have allowed the situation to happen in the first place.High Street retail is one sector of the UK economy that has been hit hard by the coronavirus crisis, with shop closures during lockdown followed by reduced footfall in shops.While retail sales rebounded in July, rising above pre-pandemic levels, the ONS said clothing shops had been the worst hit during the pandemic and the volume of sales remained 25.7% lower than in February.Arcadia, which is cutting 300 jobs from its head office in response to the effects of the pandemic, said on Saturday:”We recently implemented a policy for those employees who are working their notice on furlough to receive their furlough pay instead of their full pay.”We got this decision wrong and the board has today amended this policy to ensure all affected employees will receive their full pay.”We are extremely sorry to all those individuals [affected] for the distress that we have caused and apologise unreservedly.”To try to soften the coronavirus blow to the economy, in March the government put in place the Coronavirus Job Retention Scheme, which paid 80% of the wages of workers placed on leave, up to a maximum of £2,500 a month.That scheme has been winding down and, from the beginning of September, companies using the scheme have had to start contributing to workers’ wages.Arcadia Group became part of Taveta Investments, owned by Sir Philip and his family, in 2002.The statement said it had been forced to make “many tough decisions” during the coronavirus pandemic, including the restructuring of its offices.Union ‘victory’The Unite union had threatened legal action on behalf of more than 40 head-office staff over pay after claims it was paying them only 50% of their notice pay. It hailed the “U-turn” by Arcadia as a victory for employees.Unite regional officer Debbie McSweeney said it was “almost without precedent for Arcadia to apologise for such behaviour towards employees”.”But this situation should have never been allowed to happen in the first place by Sir Philip Green, one of the country’s richest men,” she said.Unite said it would examine the Arcadia statement in detail before finally deciding to withdraw its legal action.

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Why do women appear to bear the brunt of ageism at work?

Why do women appear to bear the brunt of ageism at work?

“As soon as women show any visible signs of ageing, they are viewed as not only less attractive, but less competent,” says 72-year-old Bonnie Marcus.The founder of Bonnie Marcus Leadership in Santa Barbara, California, she coaches women on how to advance their careers and hosts the podcast Badass Women at Any Age. She argues that as women get older, they face the double whammy of sexism and ageism. Tricia Cusden is the founder of Look Fabulous Forever, a make-up range for older women. “I’m 72 and I’m working as hard as I’ve ever worked,” she says. “In fact, my age is the biggest benefit. It’s my biggest asset,” she adds emphatically. Tricia gave up her job as a consultant trainer in the corporate world in her mid-60s to look after her sick granddaughter. But when she got better and Tricia wasn’t needed anymore, she felt lost. “I was very low and I felt very directionless. I didn’t have a life to go back to. And I thought I could live for another 30 years.” The UN says the number of people over the age of 65 is growing faster than any other age group. It is expected to double in the next 30 years, while the number of people over 80 is projected to triple. Business Daily: Why doesn’t the economy care about older women?
Will women have to work harder after the pandemic?
But as the workforce gets older, ageism is also becoming more of an issue. Statistics from charity Age UK show that ageism is the most common type of discrimination in Europe – and it is women who are bearing the brunt of it.”It’s maddening,” says Bonnie. “If you look old, especially as a woman, you don’t have any value anymore. Our society worships youth and beauty.”Tricia didn’t attempt to re-enter the workforce. Instead, she decided to start a new company – a make-up line for older women. Despite being told she would fail – by the man who makes the in-store displays of a designer make-up brand – seven years on she is the owner of a multimillion pound business.”I just thought, ‘Well, you’re a stupid man and I’ll show you!'” she says, explaining that he had told her that if her idea was going to be successful, the big beauty businesses would already have thought of it. He was wrong. Tricia’s YouTube channel, to which she posts daily, has had millions of views. And her 10-strong team on Look Fabulous Forever are now getting more orders than ever.Tricia is one woman who has bucked the trend but, globally, older women are not only less represented in the workforce, they are less likely to be hired than an older man, according to the American Society on Ageing. Men hold the majority of positions in power around the world, whether as a head of state or the boss of an organisation. In fact, women make up only 7% of Fortune 500 CEOs in the US and just 5% of the UK’s FTSE 100 CEOs. “Above the unfairness, it doesn’t make economic sense,” says Bonnie Marcus. “Companies have to realise that women over 50 hold the purse strings.” Indeed, harnessing older people in the workforce actually boosts a country’s GDP, according to accounting firm PwC. In its latest Golden Index Age, which looks at how countries utilise the power of older people in the labour market, it found that if the 37 countries in the Organisation for Economic Co-operation and Development (OECD) raised employment rates for the over-55s to New Zealand levels, the long-term GDP gain could be as much as $3.5 trillion (£2.7tn). New Zealand is often held up as the poster child for female inclusion in all walks of life, whether it’s in the corporate world or the political one, having been led by a female Prime Minister, Jacinda Ardern, since 2017.”We are fortunate here,” says Saunoamaali’i Dr Karanina Sumeo, New Zealand’s Equal Opportunities Commissioner. “If I look at our business sector, we’ve got some great leaders, who are women, holding CEO roles.”You can have diversity, but you’ve got to be at the table where the decisions are being made. It’s really, really important.”As the coronavirus pandemic grips the world, statistics globally show women are already being affected more in the economic fall-out. They are more likely than men to lose their jobs – and it is older women who are among the first to go. However, the UK professional women’s network AllBright has found some good news. While Covid-19 is hitting women harder professionally, the group says one in four is setting up her own business as a result. Yet as a female entrepreneur, there is another hurdle to face and that is funding. “Only 1% of venture capital goes to companies with all-female founders, and another 8% goes to companies with any female founders,” says Ruth Saunders, co-author of Female Entrepreneurs: The Secrets of Their Success. “The reason is that the investor world is mainly men,” she says, claiming the knock-on effect is that women have to find money elsewhere. “Seventy-two percent of female entrepreneurs self-fund through friends and family, through credit cards, through crowdfunding. And so they struggle that much more.”Tricia Cusden used her savings to start Look Fabulous Forever and went on to attract investors. She wants economies to realise the power and potential of older women. She faced sexism in her corporate career in the 1980s and thinks it is more than time for businesses to step up. “I do feel so sorry and desperate that 30, 40 years later, we’re still saying the same thing. You know, how could it still be the same? It’s crazy.”

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Ex-Google boss Eric Schmidt: US 'dropped the ball' on innovation

Ex-Google boss Eric Schmidt: US 'dropped the ball' on innovation

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In the battle for tech supremacy between the US and China, America has “dropped the ball” in funding for basic research, according to former Google chief executive Eric Schmidt.And that’s one of the key reasons why China has been able to catch up. Dr Schmidt, who is currently the Chair of the US Department of Defense’s innovation board, said he thinks the US is still ahead of China in tech innovation, for now.But that the gap is narrowing fast. “There’s a real focus in China around invention and new AI techniques,” he told the BBC’s Talking Business Asia programme. “In the race for publishing papers China has now caught up.”China displaced the US as the world’s top research publisher in science and engineering in 2018, according to data from the World Economic Forum.That’s significant because it shows how much China is focusing on research and development in comparison to the US. For example, Chinese telecoms infrastructure giant Huawei spends as much as $20bn (£15.6bn) on research and development – one of the highest budgets in the world. This R&D is helping Chinese tech firms get ahead in key areas like artificial intelligence and 5G. Dr Schmidt blames the narrowing of the innovation gap between the US and China on the lack of funding in the US. “For my whole life, the US has been the unquestioned leader of R&D,” the former Google boss said. “Funding was the equivalent of 2% or so of GDP of the country. Recently R&D has fallen to a lower percentage number than was there before Sputnik.”According to Information Technology and Innovation Foundation, a US lobby group for technology, the US government now invests less in R&D compared to the size of the economy than it has in more than 60 years.This has resulted in “stagnant productivity growth, lagging competitiveness and reduced innovation”.Dr Schmidt also said the US’s tech supremacy has been built on the back of the international talent that’s been allowed to work and study in the US – and warns the US risks falling further behind if this kind of talent isn’t allowed into the country. Tech war”This high skills immigration is crucial to American competitiveness, global competitiveness, building these new companies and so forth,” he said. “America does not have enough people with those skills.”The US has been embroiled in a tech cold war with China and in recent months has stepped up its anti-China rhetoric. This week it revoked the visas of 1,000 Chinese students it claims have military links and accused Chinese tech firms of acting as agents for the Chinese Communist Party – claims Beijing and these companies reject. The Trump administration has also taken steps to block Chinese tech firms like Huawei and Chinese apps including TikTok and WeChat, saying they pose threats to national security. Beijing has said this is “naked bullying”, and Dr Schmidt says the bans will mean China will be even more likely to invest in its own domestic manufacturing.Dr Schmidt says the right strategy for a US-China relationship is what is called a ‘rivalry partnership’ where the US needs to be able to “collaborate with China, while also competing with them”.”When we’re rivals, we are rough, we are pursuing things. We’re competing hard, we’re trying to get advantage – real competition – which the US can do well, and which China can do well. But there’s also plenty of areas where we need to be partners.”

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