GM calls off India plant sale to Great WallReuters, NEW DELHI and SHANGHAIGeneral Motors (GM) yesterday said it had called off the sale of a shuttered Indian plant to China’s Great Wall Motor Ltd (長城汽車) after they failed to obtain regulatory approvals, amid a tougher stance by New Delhi toward investments from Beijing. GM struck a deal in January 2020 to sell the plant to Great Wall, with the Chinese SUV maker expected to pay up to US$300 million as part of a broader plan to invest US$1 billion to establish a presence in India’s growing auto market. This was part of a broader crackdown by India on businesses with Chinese links amid worsening diplomatic relations. This will also send Great Wall back to the drawing board on its plans to enter India, which it considered an important part of its global strategy to break into new markets like Latin America, Thailand and Brazil. Last year, Great Wall reallocated to Brazil a portion of its US$1 billion investment earmarked for India and reassigned some of its staff after delays in winning government approvals.

Gabon’s issuance of carbon credits to be world’s largestBloombergGabon, the second-most forested nation after Suriname, aims to create 187 million carbon credits, almost half of which could be sold on the offsets market in what would be the single largest issuance in history. Photo: AFPThe carbon credits “will probably come on to market just before COP27,” White said, referring to the UN climate change conference scheduled for November in Egypt. Ninety million credits will be sold, and “non-market” mechanisms will be used for the balance, he said. Carbon credits are tokens representing 1 tonne of climate-warming carbon dioxide that is reduced, removed or not added to the atmosphere, and companies use them to offset their own emissions. Credits can be traded on the international market for carbon production rights, or firms can invest in projects to produce credits themselves.

EDITORIAL: Ko Wen-je: Political chameleonPeople are speculating about Taipei Mayor Ko Wen-je’s (柯文哲) next move, given that his final term as mayor ends at the end of the year. This is the only way to transform Taiwan into a united country, instead of a nation plagued by deep political fissures, he said. Becoming Taipei mayor has often been regarded as a stepping stone to the presidency, as in the case of former presidents Lee Teng-hui (李登輝), Chen Shui-bian (陳水扁) and Ma Ying-jeou (馬英九). Ko has been considered a political chameleon, shifting his position from the green camp to the white camp and now to a white-tinged-with-red affiliation. He then introduced a new party into Taiwan’s political arena, intending the TPP to transcend the DPP and the KMT.

China destroys education in TibetBy Tenzing DhamdulAn April circular by the Chinese Ministry of Education on student admission criteria at Tibetan universities has been harrowing and discriminating to say the least. The initial attack on the Tibetan education system began during the Cultural Revolution, when the monastic system, recognized as the cornerstone of Tibet’s education system, was wiped out in terms of its physical structure and personnel. The end of the Cultural Revolution set the stage for the renaissance of Tibetan education. Beijing implemented a bilingual education policy in Tibet and other occupied regions (or, as Beijing calls them, “minority regions”). Chinese interference with the Tibetan education system has gained pace since Xi took office.

Tata joins Hon Hai MIH platform for EVsMOBILITY SOLUTIONS: Tata Technologies’ participation marks more progress in Hon Hai’s efforts to expand its ecosystem through the platform, the Taiwanese firm saidBy Lisa Wang / Staff reporterIndia’s Tata Technologies Ltd has become the latest member of Hon Hai Precision Industry Co’s (鴻海精密) MIH Open Platform to jointly develop sustainable mobility solutions for customers worldwide, the Taiwanese company said yesterday. Tata Technologies’ participation marks more progress in Hon Hai’s efforts to expand its electric-vehicle (EV) ecosystem through the MIH platform, it said. An electric vehicle frame built by Hon Hai Precision Industry Co’s MIH Open Platform is displayed at the HHTD forum in Taipei on Oct. 16, 2020. Hon Hai signed the contract with Tata Technologies to join the platform at the Indian company’s office in Detroit, Michigan. Hon Hai said it is on track to ship its first microprocessors and other chips used in EVs by 2024.

MediaTek plans a chip facility in the US with state helpBy Lisa Wang / Staff reporterMobile phone chip designer MediaTek Inc (聯發科) plans to launch its first semiconductor chip facility in the US midwest with support from a state transition assistance package from the Indiana Economic Development Commission, the company said on Tuesday. MediaTek said in a statement that it intends to form new research partnerships with Purdue University in West Lafayette, Indiana, to collaborate on developing engineering talent, and research on next-generation computing and communications chip design. People speak near a MediaTek logo at the COMPUTEX expo in Taipei on June 1, 2016. “We believe strongly that being in Indiana means we will have access to some of the best engineering talent in the world,” MediaTek USA president Lawrence Loh (陸國宏) said in the statement. Globally, MediaTek invested more than US$3.5 billion in research and development last year.

NATO allies formally back bids by Sweden, FinlandBloombergNATO leaders yesterday formally invited Sweden and Finland to join the military alliance, paving the way for reshaping European defense by lengthening the alliance’s border with Russia. “The accession of Finland and Sweden will make them safer, NATO stronger and the Euro-Atlantic area more secure,” according to summit conclusions agreed by NATO leaders in Madrid after weeks of stalling by Turkey. The path to membership includes the need for ratification from NATO members’ parliaments. Photo: ReutersThe leaders welcomed a memorandum agreed by Turkey, Sweden and Finland late on Tuesday that led to Ankara lifting its block on the countries’ bids to join. In a new Strategic Concept document setting out long-term strategic guidelines, the leaders highlighted ties between China and Russia.

German consumer mood hits new low as prices soarAFP, FRANKFURTThe mood among German consumers has reached an all-time low, a key survey published yesterday showed, as the war in Ukraine drives a painful wave of inflation. Pollster GfK’s forward-looking barometer fell to minus-27.4 points for next month, the lowest figure since the series started in 1991. The deterioration in the index was due “above all” to the rising cost of living, GfK consumer expert Rolf Buerkl said in a statement. “Broken supply chains,” which have likewise contributed to higher prices, were also behind the darkening mood among consumers, Buerkl said. Income expectations fell to minus-33.5 points this month, down by 9.8 points from the previous month, the lowest value in almost 20 years.

The Netflix Inc logo is displayed on top of its office building in Hollywood, California, on March 2. Photo: AFPThe company’s Asia strategy is informing moves in other emerging markets, where the platform must also grow to balance out saturation in North America and Europe. “Asia is a great proxy for other markets in the world,” Zameczkowski said. “There are similarities between emerging Asia and other emerging markets like Africa and Latin America. Netflix’s customers in Asia are also some of its lowest-value ones, which means many more subscriptions are required to juice revenue.

Wimbledon happy to attract top starsAFP, LONDONWimbledon chief executive Sally Bolton yesterday said that she was relieved the world’s top stars had showed up at the Grand Slam even though no ranking points would be on offer. It means players such as US Open champion Daniil Medvedev, Andrey Rublev, Aryna Sabalenka and Victoria Azarenka cannot play in London. France’s Benoit Paire returns to fellow countryman Quentin Halys in their men’s singles match on the first day of Wimbledon in London yesterday. Photo: AFPBolton, who said the decision to ban the players had been “incredibly difficult,” reiterated that Wimbledon organizers were disappointed with the decision. “Hugely significant and actually the fact that we didn’t have it last year I think really emphasized to everybody the significance and importance of it,” she said.

New Delhi, EU resume free-trade talksAFP, NEW DELHIIndia and the EU yesterday resumed talks on a free-trade deal after a nine-year gap, as Western countries seek to wean New Delhi off its close economic ties to Russia. Photo: ReutersThe EU is India’s second-biggest trading partner after the US, but talks with the bloc broke down in 2013 over issues including tariff reductions and patent protection. Merchandise trade hit an all-time high of US$116 billion in 2021-2022, with India’s exports to the 27-member EU hitting US$65 billion, according to New Delhi. “Both sides are aiming for the trade negotiations to be broad-based, balanced and comprehensive, based on the principles of fairness and reciprocity. India is also in trade negotiations with Canada, Israel and the UK.

BIS urges central banks to act quicklyHIGH COSTS: Central banks should act before inflation becomes entrenched, the BIS head said, adding that it would be better if a soft landing could be achievedAFP, ZURICH, SwitzerlandCentral banks must not let inflation become entrenched, with the threat of stagflation looming over the global economy, the Bank for International Settlements (BIS) said on Sunday in its annual economic report. The BIS, considered the central bank of central banks, said institutions would have to move swiftly to ensure a return to low and stable inflation, while limiting the impact on growth. “The key for central banks is to act quickly and decisively before inflation becomes entrenched,” BIS general manager Agustin Carstens said. BIS’s flagship report said that in restoring low, stable inflation, central banks should seek to minimize the hit to economic activity, in turn safeguarding financial stability. The most pressing challenge for central banks is to bring inflation down to low levels, the BIS said.

Hon Hai to help develop new Indonesian capitalGREEN CITY: The company is set to invest US$8 billion to make electric vehicles and batteries for a new city that would rely entirely on renewable energy sourcesBloombergIndonesia said that Hon Hai Precision Industry Co (鴻海精密) is considering investing in the country’s new capital city, a move that would bolster the US$34 billion construction project. Hon Hai chairman Young Liu (劉揚偉) met with Indonesian President Joko Widodo on Saturday to discuss the company’s plan to invest US$8 billion to build a manufacturing plant with electric scooter start-up Gogoro Inc (睿能創意). Indonesian President Joko Widodo, left, on Dec. 17, 2019, visits North Penajam Paser district on the island of Borneo, where the government plans to build a new capital city. Liu and Widodo also talked about batteries and renewable energy, and exchanged ideas about the electric mobility industry, it said. Indonesia is seeking to capitalize on its large reserves of nickel, a key component in batteries, to develop an EV industry.

Ukraine war robs India’s ‘Diamond City’ of its shineAFP, SURAT, IndiaYogesh Zanzamera lays out his bed on the floor of the factory where he works and lives, one of about 2 million Indians polishing diamonds in an industry being hit hard by the war in Ukraine. Yet he is one of the lucky ones — the local trade union estimated that between 30,000 and 50,000 diamond workers in Surat have lost their jobs. Originally founded as a port city at the mouth of the Tapi River, Surat earned a reputation as the “Diamond City of India” in the 1960s and 1970s. “If it doesn’t go through Surat, a diamond is not a diamond,” Chirag Gems chief executive officer Chirag Patel said. The Gujarat Diamond Workers’ Union has asked Gujarat’s chief minister for a 10 billion rupee relief package for workers who have lost their jobs.

Taiwan is almost entirely dependent on imports for its oil supply, the ministry said, adding that the import volume was stable from 2012 to 2019, at above 300 million barrels a year, while the import value fluctuated with changes in international oil prices. Oil imports this year have extended momentum from last year, as the war in Ukraine drove oil prices to more than US$100 per barrel, it said. The nation imported 121.86 million barrels of oil in the first five months, up 10.9 percent from a year earlier, at average prices of US$97.80 per barrel, the ministry said. Most of the nation’s oil imports came from the Middle East, with Saudi Arabia accounting for 34.5 percent and Kuwait contributing 20.1 percent in the first five months, while those from the US comprised 21.1 percent of the total during the first five months thanks to an increase in shale oil imports, it said. Taiwan’s exports of refined petroleum products also have a high correlation with oil prices, the ministry said.