As a part of its ongoing investigation, the European Commission has imposed a final duty of 36.3% on imported electric vehicles manufactured in China. Some specified companies who have cooperated with the EU in the process of the investigation will, however, be subjected to a reduced tariff rate of 21.3%.
The EU launched the investigation in October 2023 against the backdrop of a witnessed spike in low-cost electric vehicle export from China to the EU and is expected to conclude by November this year. It seeks to examine whether Chinese clean tech products are dumping subsidised goods in the EU market and if Chinese-owned entities operating within the EU avail of any other unfair subsidy advantages.
The final duty needs further approval from EU’s 27 countries and will take effect unless a majority of 15 countries representing 65% of the EU population vote against it. These duties are expected to be confirmed by 30 October and typically last for five years. Meanwhile, talks between Europe and China could also lead to a compromise to mitigate or avoid the tariffs altogether.
A recent report from research firm Arize AI reveals a dramatic surge in Fortune 500 companies identifying AI as a significant risk. Out of the 500 companies, 281—accounting for 56.2%—cited AI as a risk, marking a 473.5% increase from the previous year. The report suggests that while AI is seen chiefly as a risk factor, there are opportunities for businesses to stand out through innovation and transparency in their use of generative AI.
The media and entertainment industry is the most concerned, with 91.7% of its Fortune 500 companies citing AI risks. Netflix and Disney, for instance, highlighted potential competitive disadvantages and unsettled regulations impacting revenue and production processes. Other sectors such as software and tech (86.4%), telecommunications (70%), healthcare (65.1%), financial services (62.7%), and retail (60%) also expressed significant concerns. Conversely, the automotive, energy, and manufacturing sectors reported fewer AI-related issues, with only 18.8%, 37.3%, and 39.7% respectively recognising AI risks.
Notable companies have provided concrete examples of AI-related risks. Motorola warned that AI might malfunction or use flawed datasets, potentially harming operational results and reputation. Salesforce highlighted possible governmental scrutiny and reputational damage tied to its AI solutions, especially around human rights and privacy. The importance of AI in cybersecurity was also emphasised, noting both its potential for enhancing security and posing new threats.
The report underscores the need for consumer acceptance of AI’s benefits, with academic experts stressing that public trust is crucial. Overall, the findings indicate that AI risks are now a prominent concern for corporate America, but they also offer a chance for businesses to differentiate through proactive innovation and clear communication.
A new AI-driven device, the Bzigo Iris, is poised to change how we deal with mosquitoes at home. Equipped with advanced technology, the device detects and tracks pests using AI and infrared LEDs, even in complete darkness. Once detected, the Bzigo Iris marks its location with a safe laser pointer and sends an alert to your smartphone, guiding you to the precise spot.
Designed primarily for use in bedrooms, the Bzigo Iris offers a chemical-free, eco-friendly solution to mosquito control. It stands out by distinguishing them from other insects, ensuring minimal false alarms, and operates continuously without the need for refills or batteries. The device is easy to set up, requiring only a plug-in and a simple app download to start working.
However, while the Bzigo Iris excels at locating mosquitoes, it doesn’t kill them. Users must still rely on the included rechargeable electric swatter to eliminate the pests. Despite this, the device offers significant advantages, particularly for those seeking a safe, non-toxic method to manage gnats.
Priced at $339, the Bzigo Iris represents a significant investment, but its potential to provide a mosquito-free environment around the clock could make it a valuable addition to homes struggling with these persistent insects.
The Bank of Ghana has introduced draft regulations to establish a secure framework for the cryptocurrency sector. The proposed rules aim to enhance financial inclusion while safeguarding consumers against financial crimes. Virtual asset service providers (VASPs) will need to register with authorities and adhere to strict guidelines. Commercial banks are prohibited from directly engaging with virtual asset businesses.
Ghana’s increasing digital asset usage, driven by widespread internet access, has prompted the need for regulation. The central bank’s analysis highlighted the role of cryptocurrencies like Bitcoin and USDT in cross-border payments and remittances. The regulations are designed to address money laundering, fraud, and cybersecurity risks, aligning with international standards.
The proposed regulations will primarily oversee cryptocurrency exchanges and VASPs. These entities must register with either the Bank of Ghana or the Ghanaian Securities and Exchange Commission. They are also required to meet capital requirements and implement risk management frameworks. Financial institutions can only provide services to registered VASPs, with direct dealings with virtual asset businesses strictly prohibited.
Before the regulations are finalised, the Bank of Ghana plans to conduct sandbox testing to refine the rules. The public has been invited to submit feedback on the proposed regulations until the end of August.
The UNCTAD (UN Trade & Development) published the Digital Economy Report 2024, which highlights the urgent need for sustainable and inclusive strategies in digitalisation. As the digital economy expands, its environmental toll grows significantly, with the production and disposal of devices contributing to rising energy consumption and digital waste. Developing countries bear the brunt of these environmental costs while gaining fewer benefits, often exporting raw materials and importing digital waste, exacerbating their ecological and economic vulnerabilities.
The UNCTAD report emphasises the critical need for a global shift towards a circular digital economy. It calls for durable product designs, responsible consumption, and sustainable business models prioritising recycling and reuse. Addressing these challenges requires coordinated action from policymakers, industry leaders, and consumers to curb the environmental impact and ensure that the benefits of digitalisation are shared equitably across the globe.
The report urges international cooperation to achieve this, particularly in managing critical minerals essential for digital technologies. It highlights the importance of balancing economic opportunities with environmental and social responsibilities, ensuring that developing countries are not left behind in the digital era but are instead empowered to advance sustainably.
Chipmaker giant, Texas Instruments, has been awarded up to $1.6 billion in funding from the US Commerce Department to support the construction of three new semiconductor factories. This financial boost, part of the CHIPS and Science Act, will enable the company to build two facilities in Texas and one in Utah.
The investment is set to create approximately 2,000 new jobs and will be complemented by an additional $6 billion to $8 billion in tax credits and $10 million for workforce development.
The move aligns with the Biden Administration’s broader strategy to enhance domestic semiconductor production. With a commitment of $18 billion through 2029, Texas Instruments plans to increase its internal manufacturing capacity to over 95% by 2030. However, new facilities will produce critical analog and embedded processing chips, essential for various technologies, from smartphones to vehicles.
Apart from that, The CHIPS Act, passed in 2022, aims to boost US semiconductor manufacturing with a total of $52.7 billion in funding. This includes significant subsidies for production and research and development. The funding for Texas Instruments follows similar substantial awards to other major chipmakers, such as Intel and Micron Technology, further underscoring the US government’s commitment to strengthening the semiconductor supply chain.
The US Federal Trade Commission (FTC) has finalised a rule prohibiting companies from buying or selling fake online reviews. New regulation allows the FTC to impose fines of up to $51,744 per violation, targeting deceptive practices that harm consumers and distort competition.
The rule addresses various forms of manipulation, including fake reviews from non-existent customers, company insiders, or AI. It also bans purchasing fabricated views or followers on social media and using intimidation to remove negative reviews. While the rule does not require platforms to verify consumer reviews, it represents a significant step towards a more honest online marketplace.
Trade groups and businesses like Google, Amazon, and Yelp have supported the rule. Yelp’s General Counsel, Aaron Schur, stated that enforcing the rule would improve the review landscape and promote fair competition among businesses.
Consumer advocates, such as Teresa Murray from the US Public Interest Research Group, praised the rule as essential protection for online shoppers. The hope is that the fear of penalties will encourage companies to adhere to ethical practices, benefiting both consumers and businesses.
Global banks are beginning to revive technology projects that were paused in 2023, offering renewed hope for the $254 billion Indian IT sector. The industry, which earns a significant portion of its revenue from banking, financial services, and insurance (BFSI) clients, had been experiencing reduced demand for six quarters following the Silicon Valley Bank collapse.
Recent quarterly reports from major Indian IT firms like Tata Consultancy Services, Infosys, and Wipro indicate a modest recovery in BFSI client demand. Industry leaders believe that interest rate cuts by central banks and the resolution of US election-related uncertainties could further boost client confidence and spending on technology services.
Top US banks, including JPMorgan Chase and Bank of America, have already begun increasing their technology budgets. These investments are directed towards improving regulatory compliance, enhancing customer experiences, and upgrading infrastructure through cloud migration. The focus on technology, including generative AI, highlights a shift in strategic priorities among BFSI clients, aiming to enhance operational efficiency.
However, some analysts remain cautious, noting that while the resurgence in tech spending is promising, it may be too early to declare a full recovery. Any resurgence in recession fears could dampen client sentiment and slow the momentum seen in recent months.
Huawei Technologies is on the brink of releasing a new AI chip, Ascend 910C, to challenge Nvidia’s dominance in the Chinese market. The company has made significant strides despite US sanctions, with Chinese internet firms and telecom operators recently testing the processor.
Huawei claims that the Ascend 910C rivals Nvidia’s H100, a powerful AI chip that has been unavailable in China.
Why does this matter?
The development signals Huawei’s ongoing efforts to circumvent restrictions and bolster its position in the AI sector.
A US court has ordered the bankrupt cryptocurrency exchange FTX to pay $12.7 billion in relief to its customers. The Commodity Futures Trading Commission (CFTC) announced that the order resolves a settlement between the CFTC and FTX, which collapsed in late 2022 after misappropriating customer deposits for risky investments. FTX has committed to a bankruptcy liquidation plan, promising 100% recovery for its customers based on the value of their accounts at the time of the bankruptcy filing.
The CFTC settlement ensures that the government’s lawsuit against FTX will not reduce the funds available to customers, as the CFTC has agreed to wait until all customers are repaid with interest before collecting any payment. FTX is required to pay $8.7 billion in restitution and $4 billion in disgorgement to further compensate victims for their losses. Despite the settlement, some victims of the crypto theft remain dissatisfied, arguing that they are being short-changed by the decision to repay them based on lower cryptocurrency prices from November 2022.
FTX is currently soliciting votes on its bankruptcy proposal, with final approval expected on 7 October. The exchange has been selling assets purchased with misappropriated customer funds to satisfy its obligations. Meanwhile, FTX founder Sam Bankman-Fried, sentenced to 25 years in prison for stealing $8 billion from customers, has appealed his conviction.
