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By Paul Carsten BEIJING (Reuters) – Apple Inc will boost its investment in China, one of its most important but increasingly difficult markets, and build its first Asia-Pacific research and development center in the country, Chief Executive Tim Cook said on Tuesday. Demand for Apple's phones has plummeted in China, and the government maintains a wary attitude towards foreign technology. Apple's new research and development center will be built by the end of the year, Cook told Vice Premier Zhang Gaoli, one of China's most senior officials, according to the official Chinese state broadcaster.

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China-linked hackers appear to have gained access to sensitive background information submitted by U.S. intelligence and military personnel for security clearances that could potentially expose them to blackmail, the Associated Press reported on Friday. In a report citing several U.S. officials, the news agency said data on nearly all of the millions of U.S. security-clearance holders, including the Central Intelligence Agency, National Security Agency and military special operations personnel, were potentially exposed in the attack on the Office of Personnel Management. It said more than 2.9 million people had been investigated for a security clearance as of October 2014.

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By Ritsuko Ando LAS VEGAS (Reuters) – Sony Corp Chief Executive Kazuo Hirai on Tuesday said he does not expect the November cyber attack on the company's film studio to have a significant financial impact, two weeks after the studio rolled out the movie at the heart of the attack. The studio, Sony Pictures Entertainment, said separately that the film, “The Interview,” has generated revenue of $36 million. Hirai told reporters at the Consumer Electronics Show in Las Vegas that he had signed off on all major decisions by the company in response to the attack, which the U.S. …

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By Jack Kim and Lesley Wroughton SEOUL/WASHINGTON (Reuters) – North Korea, at the center of a confrontation with the United States over the hacking of Sony Pictures, experienced a complete Internet outage for hours before links were restored on Tuesday, a U.S. company that monitors Internet infrastructure said. New Hampshire-based Dyn said the reason for the outage was not known but could range from technological glitches to a hacking attack. Several U.S. officials close to the investigations of the attack on Sony Pictures said the U.S. …