Issue #30

EU vs China trade war, lonely people marry AI chatbots, Tesco clothes get passports, and more.

News from August 15 - August 22, 2024

EU vs China Trade War  

The EU plans to impose tariffs on Chinese electric vehicle imports, sparking fears of a trade war. The tariffs target China's state-subsidized EV industry, aiming to counteract price undercutting of European rivals. 

Rates vary by brand, with some facing up to 38.1%, potentially increasing EV costs by over €11,000 for consumers. Lin Jian, Chinese foreign ministry: “The EU’s investigation is a typical case of protectionism.”

Germany opposes the tariffs, fearing impacts on exports and partnerships with Chinese manufacturers like Volkswagen. German carmakers and industry leaders warn that the tariffs could harm the European automotive industry more than they help.

Source

Amazon Drones Get Green Light 

Amazon has been authorized to test drones beyond visual line of sight in the UK, a key step toward using drones for package deliveries. The trials, led by the Civil Aviation Authority, aim to gather safety data and develop regulations for broader drone use, including tasks like infrastructure inspection and medical supply delivery. 

Amazon, which already offers drone deliveries in parts of the US, plans to launch similar services in the UK and Italy by late 2024, pending clear regulatory guidelines.

Source

US Bans AI-Generated Reviews

The Federal Trade Commission (FTC) has issued a ban on fake AI-generated reviews, targeting deceptive practices like purchasing positive reviews and fake testimonials from nonexistent entities. 

This move aims to protect consumers from misleading content that skews online marketplaces. The ban also addresses undisclosed conflicts of interest, such as reviews by company insiders. 

This comes in response to the growing prevalence of AI-generated fake reviews, which have polluted the e-commerce landscape. Joe Biden: “Folks shopping for products or services should be able to rely on customer reviews to find companies that provide the best service.” 

Source

‍Bulletin Board

• Lonely People Marry AI Chatbots. Replika, an AI chatbot company, allows users to create virtual companions for emotional and even sexual support. Despite controversies, including AI chatbots engaging in inappropriate behavior, Replika reinstated these features due to user demand. Some users have even gone as far as marrying their AI companions. However, there are concerns about the long-term impact on mental health and real-world relationships. Eugenia Kuyda, CEO of Replika: “For most people, they understand that it’s not a real person.” Source 
• UK School Replaces Teachers With AI. A London high school is substituting human teachers with AI tools to assist students before standardized exams, citing benefits in personalized learning. Critics argue that AI can't match the quality of real educators, highlighting concerns about the reliability of AI, especially as the UK faces severe teacher shortages. John Dalton, coprincipal: “The system does not judge students. Instead, it allows them to learn at their own pace in a safe environment.” Source 
• Bananas May Go Extinct. A deadly banana disease, fusarium wilt, which nearly wiped out the Gros Michel variety in the 1950s, is now threatening the Cavendish banana. Researchers have identified that this strain, Foc TR4, kills the plants by producing nitric oxide. By targeting the genes responsible, scientists hope to control the spread of the disease. However, the real issue lies in the monoculture farming of bananas, making them vulnerable to such pathogens. Diversifying banana varieties could help mitigate similar threats in the future. Source 
• Tesco Clothes Get Passports. Tesco will introduce "digital passports" for its F&F clothing line as part of an EU-driven push for supply chain transparency. These passports will provide detailed information on material sourcing and environmental impact, aiming to combat greenwashing and unsustainable practices. The move comes ahead of EU regulations requiring companies to disclose such details across various sectors. Non-compliance could result in significant fines or sales bans in the EU. The initiative is seen as a major disruptor for fast fashion brands, particularly those with poor sustainability records. Source  
• Primark Conquers America. Primark has launched its first US brand campaign, "That’s So Primark," as it expands its store presence across the country. The campaign, aimed at introducing Primark to American consumers, highlights the retailer's focus on value, quality, and style. Featuring two main films, the campaign will be promoted across various media platforms. Primark plans to open up to 60 US stores and hopes to attract budget-conscious shoppers with its affordable fashion offerings. The retailer currently operates 25 stores in 10 states, with US sales up 38.4% in the first half of the year. Source 

Disclaimer: This blog offers insights into international business and global events for informational purposes only. It is not intended as investment or business advice. WeavePay is not liable for any decisions made based on the content provided.

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