Connect with us

Business

India TikTok Ban Threatens China’s Rise as Global Tech Power

Published

on


(Bloomberg) — China over the past decade built an alternate online reality where Google and Facebook barely exist. Now its own tech corporations, from Alibaba Group Holding Ltd. to Tencent Holdings Ltd., are getting a taste of what a shutout feels like.India’s unprecedented decision to ban 59 of China’s largest apps is a warning to the country’s tech giants, who for years thrived behind a government-imposed Great Firewall that kept out many of America’s best-known internet names. If India finds a way to carry out that threat, it may present a model for other countries from Europe to Southeast Asia that seek to curtail the pervasiveness of apps like ByteDance Ltd.’s TikTok while safeguarding their citizens’ valuable data.The surprise moratorium hit Chinese internet companies just as they were beginning to make headway in the world’s fastest-growing mobile arena, en route to going global and challenging American tech industry supremacy. TikTok had signed up 200 million users there, Xiaomi Corp. is the No. 1 smartphone brand, and Alibaba and Tencent have aggressively pushed their services.But India’s policy jeopardizes all those successes, and could have wider geopolitical consequences as the U.S. seeks to rally countries to stop using Huawei Technologies Co. for 5G networks. With China’s tech companies poised to become some of the most dominant in emerging industries like artificial intelligence, India’s actions may spur countries around the world to weigh the extent to which they let China collect user data — and potentially economic leverage in future disputes.“Techno-nationalism will manifest itself increasingly across all aspects of geopolitics: national security, economic competitiveness, even social values,” said Alex Capri, a Singapore-based research fellow at the Hinrich Foundation. “It will be increasingly difficult to separate Chinese tech firms from the CCP and China’s geopolitical ambitions. They will find themselves increasingly locked out.”Read more: TikTok Among 59 Chinese Apps India Bans on Security FearsChinese internet firms have struggled to replicate their online services beyond their home turf, even before Washington lawmakers began raising concerns about the wisdom of allowing the Asian country’s corporations — like ByteDance — to hoover up valuable personal data. India amplified those concerns by accusing apps including TikTok, Tencent’s WeChat, Alibaba’s UC Web and Baidu Inc.’s map and translation services of threatening its sovereignty and security.India’s prohibition provides further evidence that nations are using tech to assert themselves geopolitically, following the Trump administration’s worldwide campaign to contain China and national champions like Huawei. Prime Minister Narendra Modi’s actions follow the worst military clash between India and China in almost half a century.“Beijing should certainly worry that the impact of the deadly clash could push India toward the U.S.,” said Zhang Baohui, director of the Centre for Asian Pacific Studies at Lingnan University. “But these recent economic measures by India may not by themselves concern Beijing too much as it understands that Modi’s government, facing rising domestic nationalism, has to do something to soothe the public sentiments and retain legitimacy.”China-India Tensions Continue Despite Pledge to Disengage It remains unclear how India will enforce its decision, given TikTok — for one — has already been downloaded by roughly one in six people. But it follows a series of steps to curb China’s presence in the country, demonstrating the administration’s hardened resolve since long-simmering tensions boiled over after a deadly Himalayan border clash that killed 20 Indian soldiers.The country’s government procurement website has barred purchases of Chinese-made goods. Authorities have asked the largest e-commerce companies, including Amazon.com Inc. and Walmart Inc.’s Flipkart, to start showing “country of origin” on goods sold. And India is said to be dragging its heels on clearing goods imported from China, stranding electronics at ports.“The Indian government thinks about governing the internet in a very similar way to China, which is blanket bans, asserting national boundaries on the internet and essentially carving out what would eventually become a version of the Indian Great Firewall,” said Dev Lewis, a research fellow at Digital Asia Hub in Shanghai. “Everyone’s struggling to deal with governing technology companies and apps, especially ones that cross borders. So when India takes a step like this, it sets a precedent for the things that you can do.”In terms of the immediate business consequences, ByteDance could be hardest-hit. India is its biggest market with more than 200 million TikTok users. During a brief ban last year, the Chinese company estimated it was missing out on half a million dollars a day of revenue. In a statement posted to Twitter, TikTok India head Nikhil Gandhi said the company complies with all data privacy and security requirements under Indian law and has not shared any user information with any foreign government, including Beijing.India’s prohibition could also give American companies a possible edge over Chinese players in a rare global tech market that is both populous and not yet saturated. While WeChat never made it big in India, banning it may help shore up Facebook Inc.’s WhatsApp. Cutting out TikTok immediately gives Alphabet Inc.’s YouTube a boost.On Tuesday, Ministry of Foreign Affairs spokesman Zhao Lijian said China was “strongly concerned” about India’s actions. “The Indian government has a responsibility to uphold the legitimate and legal rights of the international investors including Chinese ones,” he said.The Chinese Embassy in Delhi criticized India’s measure in a separate statement saying it “selectively and discriminatorily aims at certain Chinese apps on ambiguous and far-fetched grounds.”In India, TikTok Takes On YouTube in a Nasty Fight for DominanceBut for now, China doesn’t have many great options to retaliate. “While Beijing is highly adept at economic coercion, in this case it has somewhat limited options to act in a reciprocal manner,” analysts for the Eurasia Group wrote in a research note. “Bilateral trade is heavily weighted toward Chinese exports to India. Attempts to hurt India economically could blowback on Chinese companies.”(Updates with comment from the Chinese Embassy in India in penultimate paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.



Source link

قالب وردپرس

Business

How a hair-care company went from salon supplier to sanitizer powerhouse

Published

on


When AG Hair moved into its new, 70,000-sq.-foot, state-of-the-art manufacturing facility in Coquitlam, B.C., two years ago, it was part of a plan to supercharge expansion of its hair care product line to salons in international markets. Europe was next on its list. Then COVID-19 hit.

Not only was the European expansion put on hold, but salons in major markets across Canada and the United States were temporarily closed. Very few were purchasing hair products, so manufacturing was halted in mid-March, leaving most of the company’s 82 employees out of work.

AG Hair could have waited out the pandemic but instead decided to lean into its entrepreneurial culture and make a sharp pivot. It began providing hand-sanitizing products for front-line health-care workers, addressing a global shortage.

“We realized there was this massive need for health-care professionals, and we wanted to make a difference and be able to provide them with the products they needed,” says AG Hair CEO Graham Fraser.

AG Hair received Canadian and U.S. approvals a week after applying for the licences needed to make sanitizer, and produced samples to show local authorities within 48 hours.

AG Hair’s Coquitlam facility has pivoted to making hand sanitizer (Photograph by Alana Paterson)

“That rapid response time, and the fact that we had gone through all of the Health Canada regulatory hurdles, showed [the local health authorities] that we were a partner they could trust and someone they could look to, to deliver the products they needed,” Fraser says.

Within a month, the company started pumping out the products, first for the health-care industry, then for consumers on its own website and on Amazon. About 10 per cent of AG Hair’s hand-sanitizer production also went to people in need, as identified by organizations such as United Way.

Parallel 49 Brewing Company is also using AG Hair’s Coquitlam manufacturing facility to produce its own blend of liquid hand sanitizer for front-line health and emergency workers, in partnership with the B.C. government.

Fraser credits his team for its energy and creativity in making the hand-sanitizer production happen, and helping put AG Hair staff back to work.

“We realized we had an opportunity . . . and then it became this incredible, almost war-room mentality and collaboration with our owners, our executive team and our people to say, ‘How are we going to get through this?’ ” Fraser recalls. “I think our success speaks to the type of people we have and the entrepreneurial spirit of pursuing every avenue we have, understanding how we can produce the products and making it happen.”

AG Hair’s commitment to investing in future growth is a big part of what makes it a Best Managed company, says Nicole Coleman, a partner at Deloitte and co-lead of its Best Managed Program in B.C.

“Capability and innovation come through quite strongly with this company,” says Coleman, who is also AG Hair’s coach at Deloitte. “I don’t think they would be able to pivot as quickly if they weren’t so strategic and had the internal capabilities to do it.”

The manufacturing facility was a big investment, but one Coleman says has already paid dividends.

“They were looking forward with a strategic plan in mind about future growth and how they could expand, rather than just focusing on the day to day,” she says. “Best Managed companies are always pushing the envelope and are conscious about planning for the future.”

AG Hair was founded in Vancouver in 1989 by hairstylist John Davis and graphic artist Lotte Davis. The husband-and-wife team began bottling hair products in their basement and selling them direct to salons from the back of a station wagon.

The company eventually moved its manufacturing off-site, to a third party. One day, John went to watch the operations and was surprised to see salt being poured into the mixture. Although he was told salt is commonly used as a thickener, he didn’t like the potential side effects of dry hair and skin.

It was at that moment John decided the company would oversee its own manufacturing. “Through that experience, John also became an expert in product development,” says Fraser, who came to the company in 2000 as director of sales.

After having worked for more than two decades at PepsiCo and Kraft Foods, Fraser was eager to work at a smaller, more agile company where he felt he could help make a difference.

“It was perfect because I got to bring a lot of structure and process that I learned in those organizations, but I also learned an awful lot about being an entrepreneur from John and Lotte: that sense of urgency, the decision-making process, the need to get things done and drive things forward and pursue opportunities,” he says.

Fraser has helped drive AG Hair’s expansion into the U.S. and internationally, including Australia, Taiwan, and Central and South America. A portion of its sales go to One Girl Can, a charity founded by Lotte that provides schooling, education and mentoring for girls in sub-Saharan Africa.

Fraser also oversees the development of new, trending products, including a new deep-conditioning hair mask made with 98 per cent plant-based and natural ingredients. Hand-sanitizing spray and gel will be the latest addition to the company’s product lineup.

“We don’t see the demand [for hand-sanitizing products] going away,” he says. “As the isolation policies start to get lifted, people are going to need forms of security and protocols as they get back into regular life and work. We see there’s going to be a need for these types of products long-term.”


This article appears in print in the June 2020 issue of Maclean’s magazine with the headline, “Working out the kinks.” Subscribe to the monthly print magazine here.

The post How a hair-care company went from salon supplier to sanitizer powerhouse appeared first on Canadian Business – Your Source For Business News.



Source link

قالب وردپرس

Continue Reading

Business

Walgreens Reports $1.7B Quarterly Loss, Cuts 4,000 Jobs Due To Covid-19 Impact

Published

on


Walgreens Boots Alliance Inc. (WBA) reported a $1.71 billion quarterly loss and announced 4,000 jobs cuts due to the impact of the coronavirus pandemic sending shares down 8%.The stock dropped to $39.01 at the close on Thursday after the drugstore chain operator announced that it will also suspend its share repurchase program and will need to take a non-cash impairment charge of $2 billion mainly as result of the COVID-19 impact on its Boots UK business. As part of a restructuring plan to cut costs, Walgreens said it will close 48 of its Boots opticians stores and lay off 4,000 employees, or 7% of its workforce.Net loss was $1.71 billion, or $1.95 per share, in the three months ended May 31, versus a profit of $1.03 billion, or $1.13 per share, in the year-earlier period. Analysts on average had expected adjusted earnings of $1.19 per share. Revenue rose 0.1% to $34.6 billion.“Prior to the pandemic our financial performance for fiscal 2020 was on track with our expectations. However, this unprecedented global crisis led to a loss in the quarter as stay-at-home orders affected all of our markets,” Walgreens CEO Stefano Pessina said. “Shopping patterns are evolving more rapidly than ever as consumers further embrace digital options, spurring us to accelerate our ongoing investments in digital transformation and neighborhood health destinations.”Walgreens total digitally initiated sales rose 22.7% in the third quarter, compared with the same period last year. The drugstore chain recently formed a strategic partnership with Microsoft (MSFT) and Adobe to launch a marketing technology and customer data platform for personalized healthcare and shopping experiences.Earlier this week, Walgreens announced that it will be expanding the size of its care clinics by nearly 700 retail stores over the next few years as part of an overhaul of its business model from being primarily a drug pharmacy to a primary care clinic.With Walgreens’ stock down now 34% year-to-date, analysts are sidelined on the stock. The Hold analyst consensus shows an unanimous 4 Hold ratings. Looking ahead, the $47.75 average price target implies 22% upside potential from current levels. (See Walgreens stock analysis on TipRanks).Morgan Stanley analyst Ricky Goldwasser earlier this month cut the stock’s price target to $45 from $49 and reiterated a Hold rating, saying that investors are weighing whether, or not the challenges the company is exposed to are valued into the shares.Goldwasser remains cautious for now and lowered her full-year per share earnings forecast by 8 cents to $5.48. The analyst expects Walgreens to report EPS of $1.16 in the fourth quarter, which is slightly below consensus estimates.Related News: Costco June Sales Beat Estimates As Shoppers Go Online; Top Analyst Raises PT Lookout Walmart, Amazon Is Coming for Your Grocery Customers, Says Analyst Walmart To Launch Online Subscription Service For $98 Per Year- Report More recent articles from Smarter Analyst: * Moderna Inks Deal With Rovi To Supply Potential Covid-19 Vaccine Outside U.S. * Sony Invests $250M For Minority Stake In Fortnite Maker Epic Games * Amazon: Top Analyst Raises Estimates… Again * GenMark Diagnostics (GNMK) Stock Is a Winner, But How Much Higher Can It Go?



Source link

قالب وردپرس

Continue Reading

Business

Why Beijing is trying to tame China’s runaway stock markets

Published

on


China’s stock markets marked their first decline in eight days on Friday, ending a more than weeklong run that saw some stocks reach multiyear highs and featured record-breaking initial public offerings.

Bullish encouragement from Chinese state media kicked off the mainland’s stock market rally. State media outlets then tempered their tone late this week in an attempt to rein in speculation, telling investors to think about the long term, days after predicting a “healthy” bull market.

China’s securities regulator also issued a note of caution on Wednesday when it warned investors of risks in margin financing, a practice where brokers lend money to investors to buy stocks.

Subscribe to Eastworld for weekly insight on what’s dominating business in Asia, delivered free to your inbox.

The regulator listed 258 margin lending groups that it said were illegal and told investors not to use such financing. Margin financing is rising at the fastest rate since 2015, according to Bloomberg data, and illegal margin lending is seen as a primary reason for China’s 2015 stock market crash.

Some analysts said the initial bullishness from state news outlets was to help boost consumer spending and China’s economic recovery from the coronavirus slowdown, the Financial Times reported.

But the frenzy of trading this week raised fears of a repeat of the stock market bubble that formed in late 2014 and burst in June 2015.

State media had also encouraged bullish investors in the run that preceded the 2015 crash, when the Shanghai and Shenzhen stock exchanges fell more than 40% in the following months. Altogether, the collapse wiped $5 trillion in market cap off China’s exchanges. Beijing ousted the head of the securities regulatory commission, on whose watch the crash occurred, in February 2016.

Stock markets in China are dominated by millions of individual investors. They account for 70% of stock transactions across China’s exchanges and are known for sometimes contributing to market volatility by trading on rumor and a “get rich quick” mentality. Since June 30, China’s stock market has added more than $1 trillion in value.

The Shanghai Composite rose 16.5% for eight days straight on Thursday. Even with Friday’s dip, it’s still up 17.8% since its June low. (The Nasdaq is up 8.4% for the same time period). Friday’s trading was likely also dampened by the U.S. government’s decision to sanction Chinese officials over alleged human rights abuses against the Uyghur ethnic minority group, a move that will ratchet up U.S.-China tensions. China has already said it would retaliate.

The week’s market frenzy led to some remarkable listings. One Chinese tech firm, QuantumCTek, surged 924% on its trading debut in Shanghai on Thursday, setting a record for the largest first-day jump of any Chinese IPO. The Star board, which QuantumCTek debuted on, has no trading limits on the first five days of a company’s IPO.

Hopeful economic recovery data coming out of China also buoyed investor confidence this week. China’s manufacturing purchasing managers’ index (PMI) rose for a fourth straight month in June, according to official data from China’s National Bureau of Statistics.

Manufacturing PMI, which represents factory activity, is taken as an important indicator of economic performance. The figure plunged 14.3 percentage points in February during nationwide coronavirus shutdowns.

More must-read international coverage from Fortune:



Source link

قالب وردپرس

Continue Reading

Trending