Category: Entrepreneurship

Young Despairing Chinese Adopt the “Run Philosophy”

(p. B1) “I can’t stand the thought that I will have to die in this place,” said Cheng Xinyu, a 19-year-old writer in the southwestern Chinese city of Chengdu, who is thinking of migrating to foreign countries before the government’s iron fist falls on her.

She can’t imagine having children in China, either.

“I like children, but I don’t dare to have them here because I won’t be able to protect them,” she said, citing concerns like pandemic control workers breaking into apartments to spray disinfectant, killing pets and requiring residents to leave the keys in their apartment door locks.

Ms. Cheng is part of a new trend known as the “run philosophy,” or “runxue,” that preaches running away from China to seek a safer and brighter future. She and millions of others also reposted a video in which a young man pushed back against police officers who warned that his family would be punished for three generations if he refused to go to a quarantine camp. “This will be our last generation,” he told the police.

His response became an online meme that was later censored. Many young people identified with the sentiment, saying they would be reluctant to have children under the increasingly authoritarian government.

. . .

(p. B3) The “run philosophy” and the “last generation” are the rallying cries for many Chinese in their 20s and 30s who despair about their country and their future. They are entering the labor force, getting married and deciding whether to have children in one of the country’s bleakest moments in decades. Censored and politically suppressed, some are considering voting with their feet while others want to protest by not having children.

. . .

Doris Wang, a young professional in Shanghai, said she had never planned to have children in China. Living through the harsh lockdown in the past two months reaffirmed her decision. Children should be playing in nature and with one another, she said, but they’re locked up in apartments, going through rounds of Covid testing, getting yelled at by pandemic control workers and listening to stern announcements from loudspeakers on the street.

“Even adults feel very depressed, desperate and unhealthy, not to mention children,” she said. “They’ll definitely have psychological issues to deal with when they grow up.” She said she planned to migrate to a Western country so she could have a normal life and dignity.

Compounding the frustrations, headlines are full of bad news about jobs. There will be more than 10 million college graduates in China this year, a record. But many businesses are laying off workers or freezing head counts as they try to survive the lockdowns and regulatory crackdowns.

. . .

“When you find that as an individual you have zero ability to fight back the state apparatus, your only way out is to run,” said Ms. Wang, the young professional in Shanghai.

For the full commentary see:

Li Yuan. “The New New World; Young Chinese Feel Suffocated.” The New York Times (Wednesday, May 25, 2022): B1 & B3.

(Note: ellipses added.)

(Note: the online version of the commentary has the date May 24, 2022, and has the title “The New New World;‘The Last Generation’: The Disillusionment of Young Chinese.”

Log4j Open Source Bug Created “Endemic” Risk for “a Decade or Longer”

Continuing worries about the Log4j software bug are consistent with my skepticism of open source software, Openness to Creative Destruction. You can find a brief discussion in the chapter defending patents.

(p. A6) WASHINGTON—A major cybersecurity bug detected last year in a widely used piece of software is an “endemic vulnerability” that could persist for more than a decade as an avenue for hackers to infiltrate computer networks, a U.S. government review has concluded.

. . .

“The Log4j event is not over,” the report said. “The board assesses that Log4j is an ‘endemic vulnerability’ and that vulnerable instances of Log4j will remain in systems for many years to come, perhaps a decade or longer. Significant risk remains.”

. . .

Security researchers uncovered last December a major flaw in Log4j, an open-source software logging tool. It is a widely used piece of free code that logs activity in computer networks and applications.

For the full story, see:

Dustin Volz. “‘Endemic’ Risk Seen In Log4j Cyber Bug.” The Wall Street Journal (Friday, July 15, 2022): A6.

(Note: ellipses added.)

(Note: the online version of the story has the date July 14, 2022, and has the title “Major Cyber Bug in Log4j to Persist as ‘Endemic’ Risk for Years to Come, U.S. Board Finds.”)

My book, mentioned above, is:

Diamond, Arthur M., Jr. Openness to Creative Destruction: Sustaining Innovative Dynamism. New York: Oxford University Press, 2019.

Entrepreneur Turns Invasive Predator Crabs into Tasty Whiskey

(p. A12) CONCORD, N.H. — Care for a hint of crab in your whiskey?

A New Hampshire distillery has come up with its newest concoction called “Crab Trapper” – whiskey flavored with invasive green crabs.

Tamworth Distilling, a maker of craft spirits, is not afraid of pushing boundaries with unexpected flavors. In the past, the distillery produced a whiskey with the secretion from beavers’ castor sacs. Last year, it was turkey over the holidays and before that the notoriously pungent smell of durian.

The company said the body of this peculiar brew has hints of maple, vanilla oak, clove, cinnamon and allspice.

. . .

Searching for a fresh flavor, Tamworth Distilling cast its eye to the sea. Distiller Matt Power said the company heard about the problems caused by the invasive green crabs from the University of New Hampshire Extension’s Gabriela Bradt.

. . .

Bradt, a fisheries extension specialist, said the crabs are “so numerous that they have really impacted shellfish habitats and fisheries because they are also voracious predators.” A good example, she said, was the soft-shell clam fishery, which has suffered millions of dollars in losses.

. . .

The distillery’s sales manager, Jillian Anderson, said the whiskey, available on site, at Philadelphia’s Art in the Age and online, has grown in popularity.

For the full story see:

Michael Casey, The Associated Press. “Invasive Crabs Become Whiskey.” Omaha World-Herald (Sunday, June 30, 2022): A12.

(Note: ellipses added.)

Is Apple’s Lack of New Breakthroughs Due to Lack of Opportunity or Lack of Steve Jobs?

(p. 15) Steve Jobs, Apple’s co-founder and animating spirit, died in 2011, leaving the firm in the hands of Jony Ive, the British-born designer-savant, and Tim Cook, a child of Alabama who’d become a master of supply chains and production costs. “After Steve,” by the New York Times reporter Tripp Mickle, covers Ive’s and Cook’s careers, and how they and the company changed after they took over.

. . .

In the epilogue, Mickle drops his reporter’s detachment to apportion responsibility for the firm’s failure to launch another transformative product. Cook is blamed for being aloof and unknowable, a bad partner for Ive, “an artist who wanted to bring empathy to every product.” Ive is also dinged for taking on “responsibility for software design and the management burdens that he soon came to disdain.” By the end, the sense that the two missed a chance to create a worthy successor to the iPhone is palpable.

It’s also hooey, and the best evidence for that is the previous 400 pages. It’s true that after Jobs died, Apple didn’t produce another device as important as the iPhone, but Apple didn’t produce another device that important before he died either. It’s also true that Cook did not play the role of C.E.O. as Jobs had, but no one ever thought he could, including Jobs, who on his deathbed advised Cook never to ask what Steve would do: “Just do what’s right.”

Ive and Cook wanted another iPhone, but, as Mickle’s exhaustive reporting makes clear, there was not another such device to be made. Self-driving cars were too hard, health devices too regulated, television protected in ways music had not been, and even the earbuds and watch, devices they actually shipped, were peripheral, technically and conceptually, to Apple’s greatest product.

Epilogue aside, the book is an amazingly detailed portrait of the permanent tension between strategy and luck: Companies make their own history, but they do not make it as they please. What happened after Steve was that Cook’s greatest opportunities were in Apple’s future, Ive’s in its past.

For the full review, see:

Clay Shirky. “The Watchmen.” The New York Times Book Review (Sunday, May 29, 2022): 15.

(Note: ellipsis added; italics in original.)

(Note: the online version of the review was updated May 2, 2022, and has the title “Apple Inc., ‘After Steve’.”)

The book under review is:

Mickle, Tripp. After Steve: How Apple Became a Trillion-Dollar Company and Lost Its Soul. New York: William Morrow, 2022.

Well-Financed Fusion Startup Claims to Be a Year Away From Energy Break-Even Point

(p. B4) Zap Energy, a fusion energy start-up working on a low-cost path to producing electricity commercially, said last week that it had taken an important step toward testing a system its researchers believe will eventually produce more electricity than it consumes.

. . .

While many competing efforts use powerful magnets or bursts of laser light to compress a plasma in order to initiate a fusion reaction, Zap is pursuing an approach pioneered by physicists at the University of Washington and Lawrence Livermore National Laboratory.

It relies on a shaped plasma gas — an energized cloud of particles that is often described as a fourth state of matter — that is compressed by a magnetic field generated by an electrical current as it flows through a two-meter vacuum tube. The technique is known as “sheared flow Z-pinch.”

. . .

Advances in stabilizing the magnetic field that is generated by the flowing plasma made by physicists at the University of Washington led the group to establish Zap Energy in 2017. The company has raised more than $200 million, including a series of investments from Chevron.

Recent technical advances in fusion fuels and in advanced magnets have led to a sharp increase in private investment, according to the Fusion Industry Association. There are 35 fusion companies globally, and private funding has risen above $4 billion, including from well-known technology investors like Sam Altman, Jeff Bezos, John Doerr, Bill Gates and Chris Sacca. Mr. Gates and Mr. Sacca invested in Zap’s most recent funding round.

. . .

The Zap Energy physicists and executives said in interviews last week that they believed they were within a year of proving that their approach was capable of reaching the long-sought-after energy break-even point.

If they do, they will have succeeded where an array of research efforts — going back to the middle of the last century — have failed.

The Zap Energy physicists said they had made the case for the “scaling” power of their approach to produce a steep increase in neutrons in a series of peer-reviewed technical papers that documented computer-generated simulations they would soon begin to test.

For the full story, see:

John Markoff. “A Seattle Start-Up Claims a Big Step For Fusion Energy.” The New York Times (Thursday, June 23, 2022): B4.

(Note: ellipses added.)

(Note: the online version of the story has the date June 22, 2022, and has the title “A Big Step Toward Fusion Energy Is Hailed by a Seattle Start-Up.”)

Maine Oyster Harvest in 2021 Was Largest in History, Up 50% from 2020

(p. D9) BRUNSWICK, Maine — Maine is producing more oysters than ever due to a growing number of shellfish farms that have launched off its coast in recent years.

The state’s haul of oysters, the vast majority of which are from farms, grew by more than 50% last year to more than 6 million pounds.

. . .

. . ., the growth of oysters is great news for a state that has been trying to diversify marine industries, said Dan Devereaux, one of the owners of Mere Point Oyster Company in Brunswick.

For the full story, see:

Whittle, Patrick, Associated Press. “‘Like a Wild West Gold Rush’: Maine Oysters Boom.” Omaha World-Herald (Sunday, June 26, 2022): D9.

(Note: ellipses added.)

Gillies Created Reconstructive Surgery “Through Trial and Error”

(p. C6) During World War I, a handful of soldiers who had suffered catastrophic facial wounds traveled to Paris on a journey of last resort.

. . .

Trench warfare produced a huge number of facial injuries, and bespoke masks could never keep up with the demand.

. . .

But masks were of limited value, because they could conceal, but never heal, grievous wounds. Disfigured men needed a medical breakthrough to help them. Ms. Fitzharris, the author of “The Butchering Art” (2017), a history of Victorian medicine, chronicles the life of the British plastic surgeon Harold Delf Gillies, whose innovations and operating-room magic saved thousands of warriors from their fates and allowed them to walk in the world again. Both heartbreaking and inspiring, “The Facemaker” tells a profound story of survival, resurrection and redemption.

Born in New Zealand and educated in England, Gillies entered the Royal Army Medical Corps early in the war, at age 32. A champion amateur golfer, he began his soldiering as a novice military doctor. The second Battle of Ypres, in May 1915, was his baptism by fire. It was there, Ms. Fitzharris says, that he “first stepped into a field hospital’s makeshift operating theater,” where he labored around the clock, standing on a floor awash with blood. A month later, he was assigned to the Allied Forces base hospital in Étaples, France. The dental surgeon Auguste Charles Valadier showed him how to use bone grafts to reconstruct faces without distorting the features and to restore a patient’s ability to speak and eat.

That summer, Gillies sought out Hippolyte Morestin, an eccentric French surgeon devoted to achieving high-quality aesthetic results. Gillies watched Morestin remove a large cancerous growth from a patient’s face and close the wound with a flap of skin from the patient’s neck. It was a turning point for Gillies, who would describe the moment as “the most thrilling thing I had ever seen. I fell in love with the work on the spot.”

. . .

[Gillies’s] . . . key insight was that a multidisciplinary approach was needed: the combined work of plastic surgeons, dental surgeons, nurses, radiologists, artists, sculptors and photographers.

Gillies conceded it was “a strange new art,” without textbooks, precedent, or experience to guide its practice. Through trial and error, he re-created missing mouths and noses, filled in gaping voids of bone and flesh, restored obliterated jaws, treated horrific burns, and performed skin grafts. Until then, most surgeons had stitched together the edges of a gaping wound, a process that could cause necrosis and cellular destruction as well as further disfigurement. Among other things, Gillies learned that, to achieve the best results, he needed to perform surgery incrementally and space operations out over time, to allow patients to recover from one surgery to the next. Some men required 15 or 20 operations, occasionally as many as 40. “Never do today what can be put off till tomorrow” became his motto.

And Gillies mastered the use of the flaps, which are made to cover a wound and which have, as Ms. Fitzharris tells us, their “own blood supply in the form of a single large artery or multiple smaller blood vessels.” Gillies’s greatest invention was the tubed pedicle—a flap of skin attached to a “protective, infection-resistant cylinder,” which was itself attached to the injury site. It “dramatically reduced the chance for infection,” Ms. Fitzharris writes.

For the full review, see:

James L. Swanson. “Repairing the Wounds of War.” The Wall Street Journal (Saturday, May 28, 2022): C6.

(Note: ellipses, and bracketed name, added.)

(Note: the online version of the review has the date May 27, 2022, and has the title “‘The Facemaker’ Review: Repairing the Wounds of War.”)

The book under review is:

Fitzharris, Lindsey. The Facemaker: A Visionary Surgeon’s Battle to Mend the Disfigured Soldiers of World War. New York: Farrar, Straus and Giroux, 2022.

Officers in Russian Military Are Rewarded for Following Orders, Not for Nimbly Taking Initiative

(p. A1) This war has exposed the fact that, to Russia’s detriment, much of the military culture and learned behavior of the Soviet era endures: inflexibility in command structure, corruption in military spending, and concealing casualty figures and repeating the mantra (p. A7) that everything is going according to plan.

. . .

The scripted way the military practices warfare, on display in last summer’s exercises, is telling. “Nobody is being tested on their ability to think on the battlefield,” said William Alberque, the Berlin-based director of the arms control program at the International Institute for Strategic Studies. Instead, officers are assessed on their ability to follow instructions, he said.

. . .

Rampant corruption has drained resources. “Each person steals as much of the allocated funds as is appropriate for their rank,” said retired Maj. Gen. Harri Ohra-Aho, the former Chief of Intelligence in Finland and still a Ministry of Defense adviser.

. . .

“It is impossible to imagine the scale of lies inside the military,” Mr. Irisov said. “The quality of military production is very low because of the race to steal money.”

One out of every five rubles spent on the armed forces was stolen, the chief military prosecutor, Sergey Fridinsky, told Rossiyskaya Gazeta, the official government newspaper, in 2011.

For the full story see:

Neil MacFarquhar. “Soviet-Era Tactics Hobble Russia on Battlefield.” The New York Times (Tuesday, May 17, 2022): A1 & A7.

(Note: ellipses added.)

(Note: the online version of the story has the date May 16, 2022, and has the title “Russia Planned a Major Military Overhaul. Ukraine Shows the Result.”)

“Maverick” Chinese Entrepreneur Zhou Hang Dares Criticize Zero Covid Policy

(p. B1) China’s entrepreneur class is grappling with the worst economic slump in decades as the government’s zero Covid policy has shut down cities and kept would-be customers at home. Yet they can’t seem to agree on how loudly they should complain — or even whether they should at all.

. . .

Their approach, the equivalent of an ostrich sticking its head in the sand, doesn’t make sense to Zhou Hang. Mr. Zhou, a tech entrepreneur and a venture capitalist, has questioned how his peers can pretend it’s business as usual, given the political and economic upheaval. Stop putting up with the ridiculous reality, he urged. It’s time to speak up and seek change.

Mr. Zhou is rare in China’s business community for being openly critical of the government’s zero Covid policy, which has put hundreds of millions of people under some kind of lockdowns in the past few months, costing jobs and revenues. He’s saying what many others are whispering in private but fear to say in public.

“The questions we should ask ourselves are,” he wrote in an article that was censored within an hour of posting (p. B4) but shared widely in other formats, “what caused such widespread negative sentiment across the society? Who should be responsible for this? And how can we change it?”

He said the lockdowns in Shanghai and other cities made it clear that wealth and social status meant little to a government determined to pursue its zero Covid policy. “We’re all nobodies who could be sent to the quarantine camps, and our homes could be broken into,” he wrote. “If we still choose to adapt to and put up with this, all of us will face the same destiny: trapped.”

. . .

Mr. Zhou, 49, is known as a maverick in Chinese business circles. He founded his first business in stereo systems with his brother in the mid-1990s when he was still in college. In 2010, he started Yongche, one of the first ride-hailing companies.

Unlike most Chinese bosses, he didn’t demand that his employees work overtime, and he didn’t like liquor-filled business meals. He turned down hundreds of millions of dollars in funding and refused to participate in subsidy wars because doing so didn’t make economic sense. He ended up losing out to his more aggressive competitor Didi.

He later wrote a best seller about his failure and became a partner at a venture capital firm in Beijing. In April [2022], he was named chairman of the ride-sharing company Caocao, a subsidiary of auto manufacturing giant Geely Auto Group.

A Chinese citizen with his family in Canada, Mr. Zhou said in an interview that in the past many wealthy Chinese people like him would move their families and some of their assets abroad but work in China because there were more opportunities.

Now, some of the top talent are trying to move their businesses out of the country, too. It doesn’t bode well for China’s future, he said.

“Entrepreneurs have good survivor’s instinct,” he said. “Now they’re forced to look beyond China.” He coined a term — “passive globalization” — based on his discussions with other entrepreneurs. “Many of us are starting to take such actions,” he said.

For the full story see:

Li Yuan. “A Solitary Critic on ‘Zero Covid’.” The New York Times (Saturday, June 11, 2022): B1 & B4.

(Note: ellipses, and bracketed year, added.)

(Note: the online version of the story has the date June 10, 2022 and has the title “A Chinese Entrepreneur Who Says What Others Only Think.”)

Spreading Smallpox Inoculation to Impress Voltaire

(p. A15) Dimsdale had been summoned by Catherine the Great to inoculate not only the empress herself but also her 13-year-old heir, the Grand Duke Paul.

. . .

As Lucy Ward dramatically relates in “The Empress and the English Doctor: How Catherine the Great Defied a Deadly Virus,” Catherine’s invitation was a high-stakes affair, a testament to Dimsdale’s writings on the methodology of smallpox inoculation and his reputation for solicitous care. His Quaker upbringing had encouraged a brand of outcome- rather than ego-led practice.

. . .

As devastating as smallpox was, for the empress herself and the grand duke who would succeed her to personally undergo inoculation was a risk to both patient and doctor. On the success side stood immunity from the disease, an almost holy example for Catherine’s people, and as-yet-untold riches for her nervous doctor. On the other side, not only the fact that all Russia would refuse the treatment if their “Little Mother” died, but also a disaster for Dimsdale and the son who had accompanied him. Geopolitics came into play too—if things went wrong, some would interpret it as a foreign assassination.

. . .

With a happy result for her and her less-robust son, Catherine sets about publicizing the success. Dimsdale receives the equivalent of more than $20 million and a barony. Bronze medals are cast of Catherine’s profile, reading “She herself set an example.” It helps that Catherine was competitive beyond reason: “we have inoculated more people in a month than were inoculated in Vienna in eight,” she wrote to Voltaire, determined to beat Empress Maria Theresa’s efforts.

For the full review, see:

Catherine Ostler. “BOOKSHELF; Inoculate Conception.” The Wall Street Journal (Thursday, June 23, 2022): A15.

(Note: ellipses added.)

(Note: the online version of the review was updated June 22, 2022, and has the title “BOOKSHELF; ‘The Empress and the English Doctor’ Review: Inoculate Conception.”)

The book under review is:

Ward, Lucy. The Empress and the English Doctor: How Catherine the Great Defied a Deadly Virus. London, UK: Oneworld Publications, 2022.

“Quiet, Unassuming” Dr. Zelenko Got Twitter Suspension and Death Threats for Speaking on Hydroxychloroquine

Dr. Zelenko was stricken with a rare form of lung cancer in 2018, shortly before the Covid-19 pandemic. I wonder if that increased his personal sense of urgency to find a cure for Covid-19?

(p. A21) Vladimir Zelenko, a self-described “simple country doctor” from upstate New York who rocketed to prominence in the early days of the Covid-19 pandemic when his controversial treatment for the coronavirus gained White House support, died on Thursday in Dallas. He was 48.

. . .

Like many health care providers, he scrambled when the coronavirus began to appear in his community. Within weeks he had landed on what he insisted was an effective cure: a three-drug cocktail of the antimalarial drug hydroxychloroquine, the antibiotic azithromycin and zinc sulfate.

. . .

“At the time, it was a brand-new finding, and I viewed it like a commander in the battlefield,” Dr. Zelenko told The New York Times. “I realized I needed to speak to the five-star general.”

On March 28, [2020] the Food and Drug Administration granted emergency authorization to doctors to prescribe hydroxychloroquine and another antimalarial drug, chloroquine, to treat Covid. Mr. Trump called the treatment “very effective” and possibly “the biggest game changer in the history of medicine.”

But, as fellow medical professionals began to point out, Dr. Zelenko had only his own anecdotal evidence to support his case, and what little research had been done painted a mixed picture.

Still, he became something of a folk hero on the right, someone who offered not just hope amid the pandemic but also an alternative to the medical establishment and Dr. Anthony Fauci, the director of the National Institute of Allergy and Infectious Diseases, who insisted that months of research would be needed to find an effective treatment.

. . .

A quiet, unassuming man, Dr. Zelenko seemed unprepared for the attention he received, which included harassing phone calls and even death threats. In May 2020, a federal prosecutor opened an investigation into whether he had falsely claimed F.D.A. approval for his research.

. . .

After the F.D.A. rescinded its approval of hydroxychloroquine as a Covid treatment, he founded a company, Zelenko Labs, to promote other nonconventional treatments for the disease, including vitamins and quercetin, an anti-inflammatory drug.

And while he claimed to be apolitical, he embraced the image of a victim of the establishment. He founded a nonprofit, the Zelenko Freedom Foundation, to press his case. In December 2020, Twitter suspended his account, stating that it had violated standards prohibiting “platform manipulation and spam.”

. . .

In a memoir, “Metamorphosis” (2018), Dr. Zelenko wrote that he grew up nonreligious and entered Hofstra University as an avowed atheist.

“I enjoyed debating with people and proving to them that G-d did not exist,” he wrote. “I studied philosophy and was drawn to nihilistic thinkers such as Sartre and Nietzsche.”

But after a trip to Israel, he began to change his mind. He gravitated toward Orthodox Judaism, and in particular the Chabad-Lubavitch movement.

He graduated from Hofstra in 1995 with a degree in chemistry, and he received his medical degree from the State University of New York at Buffalo in 2000.

. . .

In 2018, doctors found a rare form of cancer in his chest and, in hopes of treating it, removed his right lung.

For the full obituary see:

Clay Risen. “Vladimir Zelenko, 48, ‘Country Doctor’ Who Pushed Unfounded Covid Remedy.” The New York Times (Saturday, July 2, 2022): A21.

(Note: ellipses, and bracketed year, added.)

(Note: the online version of the obituary has the date July 1, 2022 and has the title “Vladimir Zelenko, 48, Dies; Promoted an Unfounded Covid Treatment.”)

Dr. Zelenko’s pre-Covid-19 memoir is:

Zelenko, Vladmir. Metamorphosis. Lakewood, NJ: Israel Bookshop Publications, 2019.

A highly credentialed Yale academic presented evidence of the promise of hydroxychloroquine for early outpatient treatment in:

Risch, Harvey A. “Early Outpatient Treatment of Symptomatic, High-Risk Covid-19 Patients That Should Be Ramped-up Immediately as Key to the Pandemic Crisis.” American Journal of Epidemiology 189, no. 11 (Nov. 2020): 1218–26.