Kenyan president bows to pressure, makes major concessions

Nairobi, Kenya — Kenyan President William Ruto on Friday ordered significant cuts in the federal budget along with other government reforms to pay off a crushing debt burden in a move seen as a concession to popular disapproval of a tax bill that sparked violent protests.

Following weeks of protests during which dozens of people reportedly were killed, Ruto withdrew a finance bill intended to raise $2.7 billion — most of it from tax increases — to pay off debt.

Ruto instead offered a compromise: a plan is to cut $1.39 billion from the budget and borrow the difference.

To make it work, Ruto said, his government will eliminate 47 state corporations with overlapping or duplicative functions and reduce by 50% the number of government advisors, among many other actions.

Filling the positions of chief administrative secretaries is suspended, Ruto said, and government funds will not be used for the operations of the offices of the first lady, the spouse of the deputy president and the prime cabinet secretary.

And there’s more.

“Public servants who attain retirement age of 60 shall be required to immediately proceed on retirement with no extensions,” Ruto said.

Also, government purchase of new motor vehicles is suspended for 12 months, except for security agencies, and all nonessential travel by state and public officers is suspended, the president said.

Some of the actions were on a list of demands made by protesters.

Ruto also said he has appointed an independent task force to carry out a comprehensive, forensic audit of the country’s public debt.

“This audit will provide Kenyans with clarity on the extent and nature of our debt and how public resources have been expanded and also recommend proposals for managing public debt in a manner that is sustainable and does not burden future generations,” he said.

Nearly 40 people died and 360 were injured nationwide since the protests started three weeks ago, according to Kenya’s National Commission on Human Rights.

Silicon Valley steps up screening on Chinese employees to counter espionage

Washington — Leading U.S. technology companies reportedly have increased security screening of employees and job applicants, which experts say is necessary to counter the cyber espionage threat from China.

While the enhanced screening is being applied to employees and applicants of all races, those with family or other ties to China are thought to be particularly vulnerable to pressure from the Beijing government.

But at least one Chinese computer science graduate student at a U.S. university is hoping to make his ties to China an asset. Zheng, who does not want to reveal his first name for fear of retaliation from the Chinese government, says he recently changed his focus to cybersecurity in hopes of improving his job prospects in the United States.

“The goal is a bit high, but I think I know more about China as a person born and raised in China. I hope to become a force with my own characteristics in cybersecurity and a role in fighting against Chinese cyber-attacks,” said Zheng, who is seeking political asylum in the United States.

While Zheng said he is not very worried that increased security checks will affect his job prospects, he said many international students in his class worry that they will be shut out from cybersecurity jobs.

Google, OpenAI and Sequoia Capital are among a number of technology and venture capital firms that have stepped up security checks on employees and potential recruits, according to a recent report by The Financial Times.

The newspaper cited sources at those companies saying they were responding to warnings from the U.S. government about a growing threat from Chinese espionage over the past two years.

Chinese cyber espionage concerns

FBI Director Christopher Wray delivered one such message in a speech in April, saying the Chinese government has tried to steal “intellectual property, technology and research” from American industries.

In response, the U.S. government has stepped up security measures over the last two years, including updating its export control regulations to restrict China’s ability to obtain advanced computing chips and artificial intelligence. The strengthened warnings to U.S. companies are part of that response.

Ivan Kanapathy, senior vice president with Beacon Global Strategies, told VOA that Silicon Valley executives share the U.S. government’s concern. “In recent years, emerging technology companies have become more wary; they don’t want to fall victim to China’s technology absorption strategy,” he said.

“Companies can’t afford to help a competitor that will put them out of business. We’ve seen that happen across many industries already. It’s only natural for American and other allied cutting-edge companies to be concerned and take steps to mitigate the risks of PRC state-sponsored espionage,” he said.

Ray Wang, CEO of Silicon Valley-based Constellation Research Inc., said that the theft of American intellectual property has become more rampant since the outbreak of the COVID-19 pandemic and that people with ties to China were often targeted.

“During COVID, many folks with relatives in China were put in compromising positions where they were asked to do things for the Chinese government, or one’s relatives would be put at risk,” Wang said. “China has infiltrated almost every aspect of the U.S., and the U.S. is facing systemic problems.”

Kanapathy said China might also obtain American technology through talent poaching, meaning they recruit someone with experience in a particular technology and ask the person to take the technology to start a new company in China. Although it is ethically questionable, it is sometimes legal.

“China likely also tries to place its own people, including engineers, into certain companies that have desirable technologies. It’s a multipronged strategy,” he said.

In a statement to VOA, Chinese Embassy spokesperson Liu Pengyu acknowledged the accusations but said the U.S. government “is short on delivering solid evidence.”

“We firmly oppose to the groundless accusations and smears towards China and hope the relevant parties can view China’s development objectively and fairly,” he wrote.

Liu also pointed out that the World Intellectual Property Organization last year named China as the world’s highest ranking middle-income economy and 12th overall in terms of independently creating intellectual property rights.

“China’s scientific and technological achievements are never made through ‘stealing.’ The Chinese people, including our intellectuals, made such achievements with our talent and hard work,” he wrote.

Security screening concerns

While the enhanced security reviews usually apply to all employees, Wang said. Google and OpenAI have imposed stricter reviews for Chinese employees, and Microsoft is transferring some of its most important Chinese engineers from China to other regions of the world; NVIDIA has also been highly vigilant in screening.

Microsoft employees in China, mostly involved with cloud computing, were recently offered the opportunity to work in the United States, Australia or Ireland, among other countries, state-run outlet said in a report. The Wall Street Journal reported that Microsoft asked as many as 800 employees, mostly engineers with Chinese nationality working on cloud computing and AI, to consider relocating.

He said companies should exercise caution to avoid triggering xenophobia.

“So almost every new worker, not just Chinese nationals, should undergo the same vetting process. I think it’s really important. As Asian Americans, we have to be very careful about those implications,” he said.

So far, that has not been a problem for Joey Wu, a Chinese software engineer in California. Wu told VOA he has not seen stringent measures exercised against Chinese people, nor has he been treated differently due to his Chinese citizenship.

“I think the U.S. is relatively tolerant and open,” Wu said. “It is not easy for a large technology company to have so many foreign employees. Chinese companies, such as Huawei, are full of Chinese faces, with very few foreigners, and it is unlikely that Americans will be hired to play a more important role.”

Kanapathy pointed out that the founders of many technology companies are from China or India themselves, and these are the people who request security checks on Chinese citizens.

VOA contacted Google, OpenAI and Sequoia Capital for comments but did not receive a response by the time of publication.

VOA’s Adrianna Zhang contributed to this report.

GM to pay $146 million in penalties for excess auto emissions

WASHINGTON — General Motors will pay nearly $146 million in penalties to the federal government because 5.9 million of its older vehicles do not comply with emissions and fuel economy standards.

The National Highway Traffic Safety Administration said in a statement Wednesday that certain GM vehicles from the 2012 through 2018 model years did not comply with federal fuel economy requirements.

The penalty comes after the Environmental Protection Agency said its testing showed the GM pickups and SUVs emit more than 10% more carbon dioxide on average than GM’s initial compliance testing claimed.

The EPA says the vehicles will remain on the road and cannot be repaired. The GM vehicles on average consume at least 10% more fuel than the window sticker numbers say, but the company won’t be required to reduce the miles per gallon on the stickers, the EPA said.

“Our investigation has achieved accountability and upholds an important program that’s reducing air pollution and protecting communities across the country,” EPA Administrator Michael Regan said.

GM said in a statement that it complied with all regulations regarding the pollution and mileage certification of its vehicles. The company said it is not admitting to any wrongdoing nor that it failed to comply with the Clean Air Act.

The problem stems from a change in testing procedures that the EPA put in place in 2016, GM spokesperson Bill Grotz said.

Owners don’t have to take any action because there is no defect in the vehicles, Grotz said.

“We believe this voluntary action is the best course of action to resolve the outstanding issues with the federal government,” he said.

The enforcement action involves about 4.6 million full-size pickups and SUVs and about 1.3 million midsize SUVs, the EPA said. The affected models include the Chevy Tahoe, Cadillac Escalade and Chevy Silverado. About 40 variations of GM vehicles are covered.

GM will be forced to give up credits used to ensure that manufacturers’ greenhouse gas emissions are below the fleet standard for emissions that applies for that model year, the EPA said. In a quarterly filing with the Securities and Exchange Commission, GM said it expects the total cost to resolve the matter will be $490 million.

Because GM agreed to address the excess emissions, EPA said it was not necessary to make a formal determination regarding the reasons for the excess pollution.

But David Cooke, senior vehicles analyst for the Union of Concerned Scientists, questioned how GM could not know that pollution exceeded initial tests by more than 10% because the problem was so widespread on so many different vehicles.

“You don’t just make a more than 10% rounding error,” he said.

Dan Becker, director of the Safe Climate Transport Campaign for the environmental group Center for Biological Diversity, said the violations by GM “show why automakers can’t be trusted to protect our air and health, and why we need strong pollution rules. Supreme Court, take notice!”

In similar pollution cases in the past, automakers have been fined under the Clean Air Act for such violations, and the Justice Department normally gets involved, Cooke said. Hyundai and Kia, for instance, faced Justice Department action in a similar case.

The Justice Department declined to comment, and GM said the settlement resolves all government claims.

Cooke said it’s possible that GM owners could sue the company because they are getting lower gas mileage than advertised.

In 2014, Hyundai and Kia entered into a settlement in which they had to pay a $100 million civil penalty to end a two-year investigation into overstated gas mileage on window stickers of 1.2 million vehicles.