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Former Head of Chinese Domestic Security Zhou Yongkang Under Investigation; China Investigates Microsoft; Fighting Continues To Block Investigators From MH17 Crash Site; No Sign Of Truce In Gaza

Aired July 29, 2014 - 8:00   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

KRISTIE LU STOUT, HOST: I'm Kristie Lu Stout in Hong Kong. And welcome to News Stream where news and technology meet.

No sign of a truce as the Israeli military and Hamas militants continue to fire at each other, bringing more bloodshed to Gaza.

More fighting near the crash site of MH17 again blocks investigators from reaching the wreckage.

And China former security chief comes under investigation, the highest ranking official targeted in an apparent corruption crackdown.

Hostilities between Israel and Hamas militants are intensifying, the only power plant in Gaza has been hit by what is said to be Israeli tank

fire, cutting off the electricity supply to Gaza City and potentially several other areas in the Palestinian territory.

Now meanwhile, there is no sign of a truce between the warring sides. In the past 24 hours, Israeli airstrikes have rained down on Gaza while 10

more Israeli soldiers have been killed in clashes. But the end game for each side appears to finally be coming into view. Israel wants a

demilitarized Gaza as Prime Minister Benjamin Netanyahu has warned they are in it for the long haul.

As for Hamas, lifting that seven year blockade of Gaza is key.

Now the human cost here is simply staggering. The United Nations says more than 200 Palestinian children have been killed since the conflict

began.

And on Monday, eight more children died in an explosion at a refugee camp, that's according to the Gaza health ministry.

Now Israel and Hamas are blaming each other for that attack. And CNN's Karl Penhaul spoke with some of the witnesses, including children,

whose guardians granted us permission to interview them.

(BEGIN VIDEOTAPE)

KARL PENHAUL, CNN INTERNATIONAL CORREPSONDENT: You'll never get to meet little Mohammed, but his friend next door wants to tell you a bit

about him.

"Top of the class at math, Barcelona football star Lionel Messi was his hero. He would always say Messi was an amazing player. He loved

football. He worshipped Messi," she says.

Horlai (ph) is 12-years-old.

"Glass sprayed on me. It was so loud, so terrifying, I can't even describe it," she says.

Mohammed was just yards from his front door. Witnesses say he and the other kids were playing toy guns. They call it "dum dum." The plastic

pistol now broken, the children all dead.

Anas (ph) reels off their names.

BOY: Jameel (ph), Hassan, Muhshababeen (ph).

PENHAUL: It's a sight he should never have seen.

"I saw a boy cut up right there, over there a man, he looked dead and I saw a boy who was dead too, " he says.

Just 8 years old, he mans up and describes the explosion.

A bloody hand mark in a doorway, a lucky escape for them but not for their grandfather. They say he died buying them holiday candy.

"I saw grandpa, his head was cut, his arms and legs were cut. He was all cut up," they say.

Witnesses, young and old say they heard a drone and then the sound of a missile fired onto their street.

While we were there, we saw a militant rocket launched about a mile away.

The warring factions blame each other. We've heard their excuses before. But there's no excuse for this, or this.

Just look at the hole this shrapnel has blasted in this car door. Imagine the damage that that would do to a child's body.

As I sit on the pavement with Anas (ph), the ambulance arrived with young Mohammed's body.

"I want to go and see my cousin," he says.

Sorry he may never have met Mohammed, but it's already time to say good-bye.

(END VIDEOTAPE)

LU STOUT: Such loss and such violence that children should really never ever see.

For the latest on this story, let's get straight to Gaza City and join Karl Penhaul. He joins us now live.

And Karl, there in Gaza there area has been hit by heavy bombardment. And in fact in just the last few hours you witnessed airstrikes raining

down very close to you. Tell us, what did you see?

PENHAUL: Yeah, those air strikes began last night, in fact, Kristie. We saw a period of about a couple of hours when illumination rounds were

being fired into the sky above Gaza City, that's because last night was a moonless night and Israeli drones overhead need some kind of illumination

so their cameras can look for targets down on the ground. So that went on for about a couple of hours.

And then aircraft fire from F16 fighter bombers and also artillery fire started to pound the ground in Gaza City.

I'm not sure which of the clips you got, but then this morning as well also that was happening. And so even at one point when we were on air,

let's take a look at a clip of what happened.

(BEGIN VIDEO CLIP)

PENHAUL: Poppy, you would have seen the--

(EXPLOSION)

(END VIDEO CLIP)

PENHAUL: Yeah, that was the clip, in fact this morning. That was just a wee while earlier, Kristie. And we were on air there with our

partners at CNN -- domestic CNNUSA. And just in the building behind me, in fact, that is less than 200 yards away, some kind of missile slammed in

there fired from the air. We heard F16 fighter bombers overhead earlier on.

And shortly after that missile hit, we then heard screaming inside the building and then people, civilians, men and women, started to come out of

the building below.

That building is occupied. We've seen it occupied over the last three weeks. Families are living there. There are apartment blocks in there.

There are clothes hanging outside. It's clearly a residential area. We have certainly seen no militant activity going on anywhere that close to

our offices in the three weeks that we have been here. But that building targeted, we don't know why. And those are the affects.

LU STOUT: And, Karl, that live report that we just shared the clip of just now, it aired globally on CNN International as well. And we were very

shocked and started to see it here in the newsroom.

Also, we've learned today that the only power plant in Gaza has been hit by Israeli tank fire. What does that mean for the people of Gaza?

PENHAUL: Power was always difficult here in the Gaza Strip. According to people who live here, about 35 percent of power is provided by

that power plant, which is a little bit south of where we are. The other 75 percent comes from Israel via power lines.

Now about three or four days into this conflict, the power lines connecting Gaza and Israel were blown up and so no more power for that.

And so then power rationing, electricity rationing began with families getting eight hours of electricity then 16 hour of cuts then another eight

hours electricity. It was kind of rotating to give everybody a little bit of electricity.

Now what we understand is happened is that possibly it's the diesel storage tanks alongside the power plant that have been blown up. We

certainly saw large plumes of black smoke going through the air for much of the morning. And so without that diesel to run the power plant and of

course the blockade of goods and services getting into Gaza, especially now in war time it will be very difficult to rebuild those tanks and then to

replenish them. And that has left the Gaza Strip without power today.

Even some of the people, some of the Palestinians we were talking to this morning they said, well, you know, all our power now comes from small

generators. And in some cases these trying to provide their own electricity via a small generator for multiple members of extended families

now living in their homes. And it's just adding to the hardship going on right now, Kristie.

L USTOUT: Indeed just adding to the hardship there. Karl Penhaul reporting live from Gaza City, we thank you for your reporting to you and

the crew there. Do take care.

Now Palestinian health officials say that more than 1,100 people in Gaza have been killed in the recent violence while 53 Israeli soldiers have

died since the military operation was launched earlier this month.

Now Atika Shubert spoke with the parents of one slain soldier who continued to support the Israeli offensive despite the death of their son.

(BEGIN VIDEOTAPE)

ATIKA SHUBERT, CNN INTERNATIONAL CORRESPONDENT: Hundreds attended the funeral of Sergeant Ben Itzhak Ouanounou. As his coffin arrived for

burial, a chorus of wails and sobbing.

But when I meet his parents Sarit (ph) and Elan (ph), they don't cry, they show me Bar Mitzvah pictures. They tell me he was determined to join

the Golani Brigade, Israel's hardened elite infantry unit and they show me this photo taken weeks before he was killed in an ambush in Gaza. I ask if

they were scared before he went in.

His father is adamant, but his mother fights back tears.

She says, "he told us, don't be afraid. He knew what he was going there for and he made that choice. He said there is no reason for people

to run when they hear sirens. This has to end now."

Theirs is a proud military family. Their sons commanding officer watches over them as they talk.

But it is also a devote family with religious portraits on the walls.

"The Jewish people are a moral people," Elan (ph) says. "The people on the other side, they are the ones without morals."

Sarit and Elan (ph) receive mourners at their home in Ashdod, a small beach town a short drive from Gaza. Hamas rockets are fired over the town

on a daily basis.

Members of their son's unit come to offer their condolences as do the local rabbis. I asked both parents if they could ever imagine the

possibility of peace, a day they might even talk with the family of a fighter in Gaza.

But Elan (ph) is quick to interrupt. "Peace? Who are you going to make peace with? Hamas? We gave Gaza back to them 10 years ago and who

sits there now, not good people, not good Palestinians," he says.

And both insist that the Gaza offensive must continue.

The family is prepared for a long battle ahead.

"I have a girl and two more boys," Sarit (ph) says to me. "And the boys will follow their brother. They will go into battle and fight just

like their brother."

Strong words, but still a mother's grief, her sons final steps in Gaza are those perhaps she hopes her other children will not have to follow.

Atika Shubert, CNN, Ashdod.

(END VIDEOTAPE)

LU STOUT: You're watching News Stream. And still to come this hour as fighting continues in eastern Ukraine international investigators are

still trying to get to the crash site.

In Africa, a whole hospital is quarantined and international borders are shut, but the deadly Ebola virus continues to spread.

And Microsoft is under the microscope in China. We'll look at why.

(COMMERCIAL BREAK)

LU STOUT: Welcome back.

Now the U.S. says Russia has violated a nuclear treaty by launching cruise missile tests. Now the alleged infractions date back to 2008. U.S.

President Barack Obama has written to his Russian counterpart Vladimir Putin about this matter. And according to Washington, Russia breached the

1987 treaty obligations not to possess, produce or flight test the missiles.

Now it comes during an increasingly icy period of relations between the two in part due to the ongoing conflict in Ukraine where Russia is said

to be supporting separatists.

Now investigators have failed yet again to reach the crash site of the Malaysia Airlines jet shot down over Eastern Ukraine 12 days ago. Now the

group of Dutch and Australian experts didn't even leave Donetsk today because of the heavy fighting in the area along the route to the crash

site. Now a spokesman says that they are, quote, sick and tired of being delayed in their bid to get to what's been described as one of the biggest

crime scenes in the world.

Ivan Watson joins us now live from Kiev. And Ivan again this team of international monitors they are struggling to reach the crash site due to

the fighting. How fierce is the fighting there?

IVAN WATSON, CNN INTERNATIONAL CORRESPONDENT: Well, it's clearly enough to stop around 50 Australian and Dutch investigators who have

traveled all the way to this corner of Eastern Ukraine with the goal of trying to gather some of the remaining dozens of missing victims, bodies of

the passengers of Malaysian Air flight 17 which went down 12 days ago and also to gather the belongings. The fighting so intense that these

investigators really can't reach the crash site.

This was a location that last week we could travel to and from freely, no problem. But what's happened is that starting Monday the Ukrainian

military launched an offensive attacking a number of villages and towns on the key road that leads towards the crash site. That offensive has clearly

complicated efforts to try to get to the area such that the Dutch prime minister, he called the president of Ukraine -- called the president of

Ukraine this morning and basically said please can you bring around some kind of a ceasefire so that our people can get there?

It does appear that the Ukrainian military has made gains, substantial gains within the last week or so of fighting. Ukrainian soldiers are dying

and being maimed in this battle, as are the separatists. And they don't seem to want to break their momentum.

In fact, Ukrainian military spokesmen are saying that the goal is to try to capture the crash site from the separatists while at the same time

the Ukrainian military denies that it is shooting within the area of the debris field -- Kristie.

LU STOUT: So, Ivan, the fighting is likely to go on. And the world will likely continue to wait for this international investigative team to

get there on the site, get some clues to find out what happened, who is responsible for bringing down that plane. So meanwhile, Ivan, the debate

is raging on about Russia and its role in the conflict. So what have you learned about Russian supply lines in Ukraine or the Russian military

presence in and around the country of Ukraine?

WATSON: Well, at the very least Russia is providing a safe haven to the pro-Russian separatists. Last night, the defense minister for the

self-declared Donetsk People's Republic gave a short press conference in which he said that more than 120 of his wounded fighters as well as guards

and doctors had recently been evacuated for treatment in Russia. Take a listen.

(BEGIN VIDEO CLIP)

IGOR STRELKOV, SEPARATIST COMMANDER (through translator): More than 120 of our wounded were evacuated to Russia. Given that I can exclude a

complete siege of Donetsk, I need to take care of my wounded comrades.

Part of the medical personnel (inaudible) also in the territory of Russia. The main part of the medical personnel are in hospital and

continue to serve. All surgeons are there.

(END VIDEO CLIP)

WATSON: It's worth noting that Igor Strelkov, the defense minister of the Donetsk People's Republic is a Russian citizen as is the Prime Minister

Alexsandr Borodai who has described himself as a Moscow -- a resident of Moscow and who has traveled out of the separatist region, at least as of

Monday to travel to Moscow according to his office to discuss humanitarian issues, probably in conjunction with this conflict.

Now the government here in Ukraine accuses Russia of basically arming and funding and supplying these rebels, charges that the rebels and the

Russian government both deny the accusations have been stepped up over the course of the last week with both the government in Kiev and the U.S.

government also alleging and accusing the Russian military of firing artillery across the border at Ukrainian military targets. And this just

gives you a sense of how complicated this is and that this is appearing to more and more like a cross border phenomenon, a cross border conflict. And

this downed Malaysian Air flight 17 and the attempt to investigate it is in the midst of this hot and deadly war -- Kristie.

LU STOUT: A cross border conflict and a multi-faceted story that you're across. Ivan Watson, many thanks indeed for your reporting. Ivan

Watson joining us live from Kiev.

Now remember the shooting down of MH17, it was the first of three recent tragic airline crashes. All of those incidents together have killed

465 people in the span of just eight days.

And if we include the disappearance of MH370 back in March, the death toll goes up to 704 in just under five months. In that light, it is very

easy for even seasoned flyers to get a little nervous, but we are actually enjoying one of the safest periods in aviation history. In fact, the

number of commercial aviation deaths has been declining for decades. Last year, 265 people died in flight incidents, that was the lowest aviation

death toll since 1945. And the year before that had the lowest ever of airline crashes.

Now take a look at how many flights are in the air right now with this amount of air traffic, the chances of a flight crash last year was less

than one in a million.

Now just ahead right here on News Stream, China and its anti- corruption campaign is gaining momentum, the ruling Communist Party is targeting another top power player. We've got more on that next.

(COMMERCIAL BREAK)

LU STOUT: Coming to you live from Hong Kong, you're back watching News Stream.

Now China's Communist Party is reportedly widening the net in its corruption crackdown. The state run news agency Xinhua says former

domestic security chief Zhou Yongkang is under investigation. It is just the latest in a string of government probes targeting powerful figures.

Let's bring in our correspondent in Beijing for this developing news story. CNN's David McKenzie joins us now live. And David, how significant

is it that Zhou Yongkang is now under investigation?

DAVID MCKENZIE, CNN INTERNATIONAL CORRESPONDENT: Well, it's a political bombshell. And, yes, we have been anticipating this perhaps for

some time. The rumors have been swirling. And some key associates of Zhou Yongkang over the years have been officially brought into corruption

investigations.

But this one line by Xinhua, the state media, saying that Zhou Yongkang is under investigation for, quote, "serious disciplinary

violations" is certainly a major development. And it really is breaking taboo here in China where senior officials like this normally were

untouchable.

Take a listen.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Well, I think the significance of a move against Yongkang on the part of the Chinese government is that it would be a

departure from a policy we've had for many years of not taking actions against people at the very top of the Chinese leadership. So Zhou Yongkang

was one of the nine top people in China. And to bring him down is very significant.

(END VIDEO CLIP)

MCKENZIE: So, certainly this shows that Xi Jinping is serious in its anti-corruption drive and perhaps more importantly he isn't afraid to take

on the so-called tigers that he's talked about. He's been warning that both tigers and flies will be netted in his anti-corruption drive.

But certainly there's a major issue of politics here as well. The Communist Party, Kristie, really is above the law in China. When it comes

to investigating their own members it starts with an internal process by a shadowy group. And because the party runs the police and the court system

here in China the fact that they've announced that Zhou Yongkang is under investigation most likely means that his really his legacy and his days are

numbered as a member of the party and certainly as a public figure here in China.

He was the security czar here in China, former powerful oil executive as well with the National Oil Corporation and for many years there were

allegations swirling around him on corruption. Now it seems that Xi Jinping feels that he can go after Zhou. And it's certainly and extremely

significant moment.

LU STOUT: Yeah, and it's just remarkable that the ex-security chief of China is not untouchable in this apparent crackdown on corruption there

in China. Xi Jinping has made fighting graft a political priority.

And politics really is at the heart of this, isn't it? But why is it to eliminate corruption, sure of the standing of the party, or is it to

quite conveniently get rid of one's political enemies?

MCKENZIE: Well, certainly analysts I've spoken to say it's all a combination of those factors. And I think you've put it pretty well that's

it's a combination of pushing through anti-corruption, to publicly show the Chinese population that really the government is serious about rooting out

the very problematic corruption that exists at all levels of government here.

But then it's also about politics. Many people feel that Zhou Yongkang's relationship with Bo Xilai, the former Communist Party chief of

Chongqing really sealed his fate.

Bo Xilai, if you remember was brought down by anti-graft trial, a dramatic trial earlier last year. And he really was an ally of Zhou

Yongkang. And because of those different power groups within the Communist Party, many felt it was only a matter of time that Zhou Yongkang would be

brought down.

Some, including the prominent activist Hu Jiao (ph), which we talked to about this subject, say that really all levels are corrupt and it's

ultimately about politics.

(BEGIN VIDEO CLIP)

FRANK CHING, CHINESE POLITICAL COMMENTATOR (through translator): No official is free from corruption, it is just big tiger beating medium tiger

or little tiger. It is the only difference.

The 205 central committee members who are in top power and their families all hold astronomical assets. So the so-called anti-corruption

launched by Xi is superficial.

(END VIDEO CLIP)

MCKENZIE: Some, though, have praised Xi for his anti-corruption drive. And certainly it's a very popular one with the public. The next

step will be, Kristie, a trial date or more details coming out on this -- on these allegations against Zhou Yongkang. For now in typical Chinese

style it's just one line that has delivered this bombshell.

LU STOUT: All right, David McKenzie there, thank you.

Still to come right here on News S tream, Microsoft's offices in China get some unexpected visitors. We'll tell you who has got their eye on the

tech giant after this.

(COMMERCIAL BREAK)

LU STOUT: I'm Kristie Lu Stout in Hong Kong. You're watching News Stream and these are your world headlines.

Now the only power plant in Gaza has been hit by what's said to be Israeli tank fire. The electricity supplied to Gaza City and potentially

several other areas in the Palestinian territory has been cut off. This comes as hostilities between the Israeli military and Hamas militants

intensify.

The Dutch prime minister has asked the Ukrainian president for safe passage for investigators trying to travel to the crash site of the downed

Malaysia Airlines plane. Now the passenger jet was shot down in eastern Ukraine 12 days ago. Experts trying to reach the site have been blocked by

heavy fighting on the main road from Donetsk.

Now one of China's most powerful former officials is at the center of a new investigation. Zhou Yongkang was the country's domestic security

chief until he retired in 2012. And the probe is just the latest to emerge as the Communist Party intensifies its campaign to weed out corruption.

As the Ebola outbreak continues in West Africa, Liberian President Ellen Johnson Sirlef is getting more aggressive about containing this

deadly disease. Now she closed most of the country's borders over the weekend and Ebola testing centers will be set up at entry points that

remain open. Restrictions have also been placed on public gatherings, hotels, restaurants and other entertainment venues have been order to play

a video on Ebola safety.

And this comes as news also emerged over the weekend about the infection of two American aid workers in Liberia, Nance Writebol and Dr.

Kent Brantly are being treated after testing positive for Ebola.

Now CNN's chief medical correspondent Dr. Sanjay Gupta is tracking it all for us. He joins me now live from CNN Center there in Atlanta.

Sanjay, thank you joining us here on CNN International.

A lot of questions about this story, and most fundamental one I mean medically what are the symptoms of Ebola?

DR. SANJAY GUPTA, CNN CHIEF MEDICAL CORRESPONDENT: Well, you now it's a tough, tough disease. A lot of people know about Ebola generally, but

the -- it's an infectious disease that initially causes a lot of the same symptoms that someone might get even with a bad flu, for example.

The problem is it really disarms the body's immune system, it also disarms the body's ability to clot blood, which is why people do develop

some bleeding problems with this as well.

There's no cure, there's no specific treatment for it. We know that these -- we don't know exactly how these doctors got it, but usually it's

because it's so infectious just a small amount on your skin can infect somebody and these are people who are dealing with patients. And so,

that's what they're dealing with right now.

LU STOUT: And I've heard in your earlier reports the distinction that it is infectious, but not contagious. Why is that important?

GUPTA: That's a very important distinction. I think this idea, the scenario that someone who is going to have Ebola is going to walk around an

airport shaking hands of people and there's going to be a mass infection that doesn't really happen. It doesn't -- it's not contagious that way.

People only start to really spread this when they, themselves, are very sick, that's because then they're making a lot of the virus, it's

replicating in their body. And then just a small amount of body fluid on anybody's skin even can cause an infection.

So, you know, doctors who are dealing with them, they wear gloves, but we all have breaks in our skin even if we don't realize it. And just a

small amount can cause a problem.

LU STOUT: And how deadly is the disease?

GUPTA: Well, it's -- you know, in previous outbreaks it's been as high as 90 percent fatality rate. In this particular outbreak it seems to

be lower than that, somewhere in the mid-60 percent fatality rate. We don't know exactly why that is. This appears to be the same strain of

Ebola. But maybe they're getting treated a little bit earlier with just fluids. There's no anti-viral or anything.

But still it's obviously a very fatal disease.

LU STOUT: Very fatal. And right now in Western Africa it is the deadliest outbreak that we've seen in the history of the disease.

Containment is very key here.

So, Sanjay, what more can be done to keep Ebola from spreading here?

GUPTA: It's a challenge, you know, because you're talking about countries that --and cities that have international airports now and that's

been the concern for some time. You know, somebody would get exposed to this and it could take up to 21 days for them to actually get sick. And in

that period the could travel around the world.

So some countries like Liberia, you mentioned, have put on some restriction, specifically with them, their borders. There are other

countries that have done flight restrictions.

But you know I'll tell you, Kristie, I think the idea that someone with Ebola is going to get into other countries around the world that's

going to happen, that's the world in which we live. But again it doesn't mean that there are going to be mass outbreaks. That person can usually be

contained and treated as best as possible and prevent further infections.

LU STOUT: Now you were there in Guinea. You were there in West Africa and you saw firsthand how cautious and how careful Ebola aid workers

are when handling the sick. We know that aid workers have gotten sick with Ebola. So what more can be done to protect them?

GUPTA: Well, they -- it's -- they do a lot to protect them. I did some of this myself just basically, you know, you have to cover every part

of your skin when you're dealing with patients. Again, just a small amount of fluid can cause an infection. So you cover yourself up as best you can

with what you see there.

When you come out of the tents they're sprayed down with this almost bleach like solution all over their suits before they even start taking it

off, because there could be some bodily fluids on the suits.

But it's still -- there are places where there could be errors. They don't know, for example, how these two American health care workers were

infected. We know that they've become quite sick as a result.

We had a chance to talk to the guy who is the founder of the charity for which they were working and talking about next steps now for them.

Take a listen to what he said.

(BEGIN VIDEOTAPE)

KEN ISAACS, VICE PRESIDENT, SAMARITAN PURSE: Sunday we had the Center for Disease Control, World Health Organization and Doctors Without Borders

all came into our care management center, helped us review our procedures. What we understand we have not received a report.

But what we understand is that one of our national staff members was positive for Ebola, that staff member died n Thursday. And he came to work

on Monday and Tuesday. He was symptomatic and we think in the scrub down area is where the disease was passed to both Nancy and to Ken.

(END VIDEO CLIP)

GUPTA: The idea again, Kristie, that someone who became sick still was trying to work and possibly spread the disease that way. That's not

supposed to happen, but again that's where the system could break down a little bit in terms of preventing transmission. People have to follow the

rules.

LU STOUT: That's right. That was a red flag just then.

Well, Dr. Sanjay Gupta, thank you so much for joining me and for sharing with our audience just the finer points of this Ebola outbreak in

West Africa. Thank you. Take care.

Now, Microsoft is under the microscope in China. Several Microsoft offices in China, they got a visit from government officials on Monday. In

fact, a Chinese regulatory agency said today it is conducting an anti- monopoly investigation into the company. Now U.S. tech companies are heavily invested in China, but they have recently been subjected to tighter

government checks.

Now both countries have traded allegations of spying.

Now joining me now from Beijing is Duncan Clark. He's the chairman of the consulting firm BDA China. Duncan, good to see you. Thank you so much

for joining us here.

Your thoughts. I mean, why did Chinese officials visit Microsoft offices across China -- why?

DUNCAN CLARK, BDA CHINA CHAIRMAN: Well, it does seem to be a very coordinated effort. It was ordered from Beijing even though it took in

offices like Chengdu. It's clearly a shot across the bows of Microsoft, but also the U.S. business community and I think a message to the U.S.

government that they want changes in the way the U.S. deals with China particularly in the light of the Snowden revelations and also the

Department of Justice investigation that named a number of People's Liberation Army employees effectively accusing them of cyber hacking.

LU STOUT: So, the message to the U.S. especially after the Snowden disclosures, but is there another after effect here, by going after western

tech firm like Microsoft, does China automatically boost its native industry? Does it lift the fortunes of Chinese homegrown tech companies?

CLARK: I think there's an element of playing to the galley here, to please domestic opinion in that area. And there are certainly companies

that are poised to, you know, gain either financing or gain marketshare. But the reality is I think there's still a cooler heads that are prevailing

in Beijing that know that this is a very long-term game, to become a leader in technology takes ongoing investment and research and development, areas

that Microsoft has actually been investing in here as well.

So I think that some hesitation at the top over, you know, taking down too many of these high profile companies, and it's not just them we've also

seen Qualcomm and IBM and others in the firing line.

But I think this is a sign of how serious cyber hacking and security theme is taken right now in Beijing.

LU STOUT: Yeah, there's been a lot of tension between the U.S. and China over cyber hacking, over spying. China seems to be upping the

pressure on you mention IBM, Qualcomm, now Microsoft. Do you think the U.S. government will respond?

CLARK: Well, it's interesting, because of course the Chinese government is highly centralized. They have the party overseeing

everything and yet on the U.S. side the Department of Justice, you have the division of powers, we have you know companies, private interests. So it's

very difficult for the U.S. to coordinate in the same way that the Chinese do. And I think the Chinese government knows that.

But perhaps, you know, there's an attempt to lower the temperature in the future that we won't see more investigations, you know, or cyber

hacking allegations pointed the so much at the People's Liberation Army, but it's hard to see how the Department of Justice can sort of stop what

it's already doing.

And I think, you know, the Snowden revelations actually postponed a lot of what the Department of Justice was trying to do. But now we're

seeing that the two are really coming together, these two stands.

I think the anti-monopoly thing is popular domestically in China as well. So that's playing to the galley as I said.

LU STOUT: And now some advice from you. I mean, I can only imagine American, western tech managers the world over, they want some advice to

figure out what to do, because they want in on the growth story that is the Chinese market, but given this environment what can they do to better

position themselves?

CLARK: Well, firstly, I mean, again the cooler heads element. Chinese companies are also targeting the global market. They need access to

U.S. and global capital markets and global markets. They may try to buy U.S. companies, so I wouldn't panic at this point, but certainly it's been

a very difficult time for multinationals generally and specifically tech companies.

I think you have to just you know stick to your knitting and still work on your relationships, but it's a sign that, you know, even the former

president Hu Jintao went to have dinner at Bill Gates' house in Seattle. It's a sign that, you know, another tiger effectively has been taken down.

All bets are off in this current very tense time.

But hopefully, you know, things will change, things will move on. The U.S. and China need to work together on so many areas, including even in

cyber hacking against organized crime and other things. So they need eventually to cool down.

Unfortunately this is not helping.

LU STOUT: All right, well here's hoping; fingers crossed for that.

Duncan Clark, chairman of BDA joining me live from Beijing. Thank you so much for that. Take care.

Now you're watching CNN News Stream. Coming up next, from Sex in the City to shoe designer find out how Sarah Jessica Parker turned her alter

ego's obsession into her own business opportunity. Stick around.

(COMMERCIAL BREAK)

LU STOUT: Now, her Sex in the City character was known for being obsessed with Manolo Blahnik shoes. And now Sarah Jessica Parker has

joined forces with the world famous brand to launch her own line. She tells our Maggie Lake how the project sparked her interest in business for

this week's Leading Women.

(BEGIN VIDEOTAPE)??

MAGGIE LAKE, CNN INTERNATIONAL CORRESPONDENT: Actor, producer, style icon, Sarah Jessica Parker is one of the most recognizable faces in the

world. Parker started her acting career as a child, honing her talents on the stage, television and in film.

SARAH JESSICA PARKER, ACTRESS: Big S, small A, small N, Big D, small E, big E.

STEVE MARTIN, ACTOR: What?

LAKE: In 1998, Parker became an international sensation after she landed the role of New York columnist Carrie Bradshaw in the groundbreaking

television series Sex in the City. For her, the success of the show meant more opportunity and responsibilities outside of acting. You've talked

many times in your life about your acting career. Where do you think you get the inspiration for this business side of things ?

PARKER: When I first started doing the television series Sex in the City and Darren Star said to me, you know, if you'll consider this you can

be a producer on the show. And I'd never produced in television, I'd never produced in cinema. And so -- although I was sort of daunted by the idea I

was immediately excited about learning. And I think once that became a huge part of the time I spent on Sex in the City, I loved being part of the

conversation. I loved being responsible to and for people. I loved the demand and the challenges of budget and people's job and the hours they

worked. And so what I surprised to discover is that I liked business.

LAKE: Her role as the leading lady on Sex in the City solidified her as a fashionista. Earlier this year, she partnered with the CEO of Manolo

Blahnik to launch her own shoe line.

PARKER: I have always felt that there was this group of ten million women that I found the honor bound to in some way that had committed to me

for a number of years, and that I wouldn't be having this opportunity if it weren't for the dedication with which they committed to that show I was on

and the character I played who loves shoes. Manolo Blahnik, Mary Janes...

There were three really important things to me if I was able to do this. The single sole, colors as neutral, and price point.

LAKE: This Renaissance woman seems to be living the ultimate dream. Do you feel like you have your dream job or you're living your dream, or is

this the sort of dream that keeps evolving ?

PARKER: I always feel as if I'm having unthinkably fortunate opportunities presented and that's why it's hard to say no to them.

Sometimes when I think about the phrase, the dream job, this is it and then once it's run its course that's it the dream is over. And I love the idea

of there is a whole world out there of possibilities and interesting things.

(END VIDEOTAPE)

LU STOUT: You're watching News Stream. And still to come, NASA's Mars rover has made history. It has just broken a driving record that was

set more than four decades ago. We've got more on that after the break.

(COMMERCIAL BREAK)

LU STOUT: Welcome back.

Now from the record heat in Japan to two tropical systems with their sights set on east Asia, a lot to cover in your global weather forecast.

Alexandra Steele joins us now from CNN Center with more -- Alexandra.

ALEXANDRA STEELE, CNN WEATHER CORRESPONDENT: Hi, Kristie.

All right, here's the deal, we've got a tropical storm on its way to becoming a typhoon. And then we also have a tropical disturbance on its

way to becoming a tropical storm.

So let's hit this first. Now this is tropical storm Halong. And showing you where it is and where it's moving and how strong its winds are.

Right now its wind gust 120 kilometers per hour. Maximum sustained winds at about 95.

So here's Guam. And you can see here's kind of the center of this thing. Now Guam certainly will be the first target, and currently is. So

here's this tropical storm force winds. And right now at this current hour we're seeing about winds 37, 31 kilometer per hour winds. But watch what

happens as we watch this move forward. We begin to pick up some typhoon strength winds. And you can see that there in the center. And it will

continue to move northwesterly.

So here's the big picture with this. In terms of the rain you can see just north this red, 25 centimeters of rain kind of taking it on a

northwesterly swath.

Now in Guam, flooding, power outages, structural damage certainly all possible.

So where is this going? Well, it's going to continue to move north and west, but as the time period gets into about Wednesday we're going to

see it potentially become a typhoon, but there is the potential for some vertical wind shear, all that means is this thing could break apart a

little bit.

So certainly watching this as it heads toward Okinawa and southern Japan as well.

More immediate concern, and a little bit closer to that, is this tropical disturbance. And you can see it rotating here. Look at this bit

open eye. Look at that just south of Okinawa right now.

Bansoon (ph) depression is moving north and west. It, too, expected to intensify as well.

You can kind of see that swath of wet weather, the rain and the thunderstorms kind of a lot narrower, certainly, than the earlier tropical

storm. But certainly watching this, a maximum surface winds now at about 35 kilometers per hour.

So all of those heading in towards southern Japan as they move north and west.

But Japan has been on the map anyway, because of the heat. We've seen temperatures at record high levels. We're going to continue to see

temperatures above average in Japan as well.

Also some severe storms traveling in Europe. We've got severe storms right now as we head toward the Tuesday, Wednesday time period from Berlin

to Frankfurt, so a lot of big airports could be impacted with heavy rain, of course some strong winds, and, Kristie, this is the same area we've seen

all of this rain Monday as well. So kind of the same area getting impacted once against with this next round Tuesday and Wednesday in Europe.

LU STOUT: All right. Alexandra Steele with the forecast there. Thank you so much for that.

Now a running record has been set in space. The NASA Mars Rover Opportunity has drive farther than any other wheeled vehicle outside of

Earth. It has now traveled some 40 kilometers on the Red Planet since landing there some 10 years ago. And it is not planning to stop yet. Now

scientists are hoping that it will travel at least 2 more kilometers to reach its next destination, the so-called Marathon Valley, because by then

the rover would have covered the distance of an actual marathon.

Now 40 kilometers, it may not sound like a lot to our viewers who run on Earth, but it certainly was not an easy record to break. In fact the

previous record was held by the Russian moon rover, the Lunokhod 2. That one, it was set some 41 years ago.

And is News Stream, but the news continues at CNN. World Business Today is next.

END