Friday, December 31, 2021

In exodus from Lebanon, the well-off find new home in Cyprus






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Cyprus Lebanese Emigres 
Nadine Kalache Maalouf, center, Celine Elbacha and Elbacha's daughter Morgane, right, sit at a seaside restaurant in the eastern coastal resort of Paralimni, Cyprus, Wednesday, Dec. 22, 2021. They are among the thousands of Lebanese, including teachers, doctors and nurses who have left the country amid a devastating economic crisis that has thrown two thirds of the country’s population into poverty since October 2019. (AP Photo/Petros Karadjias)More

MENELAOS HADJICOSTIS
Tue, December 28, 2021

PARALIMNI, Cyprus (AP) — Many well-off Lebanese who escaped their country’s economic tailspin for a new life in the nearby island nation of Cyprus say the transition has been a whirlwind of emotions.

They are grateful they did not have to turn to human smugglers and embark on risky Mediterranean crossings to reach European shores. But they also feel guilty for leaving family and friends behind to struggle with Lebanon’s unprecedented crises — a failing economy, political uncertainty and social upheaval.

The feelings are intense for Celine Elbacha, an architect who moved with her family of four to the Mediterranean island nation in August 2020, and Nadine Kalache Maalouf, who arrived with her husband and two children four months ago.


They are among more than 12,000 Lebanese who have left their homeland in the past two years for Cyprus — less than a 50-minute flight from Beirut — enrolling their kids in schools, setting up businesses and snapping up apartments on the island.

“We were fortunate to be able to come,” Maalouf said. “We’re doing our best here as a Lebanese community to help ... our families, our friends back home. So it’s not like we just moved and we turned our backs and we’re not looking back.”

Thousands of Lebanese, including teachers, doctors and nurses have left the country amid a devastating economic crisis that has thrown two thirds of the country’s population into poverty since October 2019. That brain drain accelerated after the massive explosion at Beirut’s port last year, when a stockpile of improperly stored ammonium nitrates detonated, killing at least 216 people and destroying several residential areas.

The exodus is telling about the state of Lebanon, where not only the poor are seeking a way out, but also a relatively well-off middle class that has lost faith in the country turning itself around.

For those who can afford it, Cyprus, a member of the European Union, is an attractive option for its proximity and the facilities it offers — including residency for a certain level of investment in real estate and businesses. As Lebanese banks clamped down on deposits, many sought to open bank accounts in Cyprus or buy apartments as a way to free up their money.

The island has a history of taking in Lebanese, who first came in the 1980s, at the height of Lebanon's 15-year-civil war, and again in 2006, when Cyprus served as a base for evacuating civilians during the monthlong war between Israel and Lebanon’s militant Hezbollah group.

Maalouf, 43, who made the move to Cyprus with her husband and two kids, said she was pleasantly surprised by how “easy” the relocation process was. She hasn’t found work yet but has connected with Cyprus’ close-knit Lebanese community.

“We were scared about this step," she said, but Cypriot immigration authorities “made that very smooth and very easy.”

Cyprus' Interior Ministry spokesman Loizos Michael confirmed to The Associated Press that the government has “simplified procedures” for Lebanese nationals who wish to immigrate lawfully, “as part of humanitarian assistance” to Lebanon.

Additionally, incentives are offered to Lebanese businessmen who wish to transfer their businesses to Cyprus, Michael said, without elaborating.

Maalouf said her primary motivation was to shield her children from Lebanon’s dire economic situation — runaway inflation has seen the Lebanese pound lose more than 90% of its value in less than two years — and provide them with a chance for a better future.

“It’s scary when you’re a parent, you’re scared and you say, OK, I need to save my kids,” said Maalouf.

The transition was easier for 47-year-old Elbacha and her family. They had bought a vacation home in Cyprus years ago in the town of Paralimni on the island's east coast and felt they already had a footing here.

Her elder daughter, Stephanie, has been studying at a university in Paris for two years now. Her younger daughter, 17-year-old Morgane, was fortunate to get into Cyprus’ only French-speaking school in Nicosia, the capital.

Elbacha and her husband, also an architect, have set up a company in Cyprus and are both working. They have a sense of obligation to the country that has welcomed them, she said.

“We want to be feeling like we are not illegal in the country," she said. Cyprus has helped them “in every sense, and it’s like we have to return this.”

Elbacha is lucky, she says, especially when she remembers how powerless many Lebanese feel in the face of constant feuds and bickering among the political elite. Her home in Beirut sustained minor damage in the Aug. 4, 2020 port explosion, mostly broken glass. None of the four of them were hurt but some of her friends and relatives fared much worse.

Later that month, the family moved to Cyprus. The first five months here, she remembers feelings of guilt, like she was “betraying my country,” she said.

Maalouf, who also ended up with her family in Paralimni, has little faith things will turn around in Lebanon anytime soon, despite upcoming general elections. “I’ve been hearing this since I was a teenager. Things will get better. We’ll see and things never get better,” she said.

For its proximity to Lebanon, Cyprus is in many ways ideal for both Maalouf and Elbacha. They can easily visit family and friends back in Beirut.

“The people of Cyprus are very warm and welcoming," said Maalouf. “We don’t feel like strangers here.”
'Opt for cycling': French car ads must back alternatives

French car advertisements will soon have to include messages such as "Consider carpooling," "For day-to-day use, take public transportation," or "For short trips, opt for walking or cycling" (AFP/DOMINIQUE FAGET)


Fri, December 31, 2021

Car advertisements in France will have to include messages encouraging people to consider less-polluting travel alternatives from 2022 as part of the government's drive to rein in CO2 emissions.

The requirement, set to come into force in March, was confirmed in the government's Official Journal this week after years of lobbying from environmental groups -- many of which seek an outright ban on automobile ads.

Similar to mandatory reminders to eat healthy on food and drink ads, the standardised messages will suggest that drivers adopt more environmentally responsible options when possible.


Carmakers will have three choices: "Consider carpooling," "For day-to-day use, take public transportation," or "For short trips, opt for walking or cycling."

They will be required for all media -- print, TV, radio or internet -- and must also include the hashtag "#SeDeplacerMoinsPolluer" (Move and Pollute Less).

The ads will also have to include a vehicle's CO2 emission class, a new ranking system to inform consumers about the environmental impact that is part of a widespread climate action law approved by lawmakers in July.

So far automakers appear ready to comply, if not enthusiastically.

"It means that overall, we have to find alternatives to the automobile. It's the first time we've had such a direct message from the government," Lionel French Keogh, the head of Hyundai France, told AFP.

"We are going to adapt -- moving toward zero-emission vehicles is the course of history," he added.

"But there is an irony: they make no distinction between the type of motorisation. It's a bit counterproductive to the government's aim of promoting electric vehicles," he said.

Volkswagen, the third-biggest car seller in France, after Stellantis and Renault, said "We will comply with the legislation and analyse how best to comply with our advertising agency."

As part of the new French law, advertising for the most polluting vehicles -- those that emit more than 123 grammes of carbon dioxide per kilometre, including many popular SUVs -- will be completely outlawed from 2028.

jnd-tsz/js/lth
FORDISM WITHOUT FORD
Foreign carmakers interested in Ford plant in India - state minister


 A visitor is reflected as he takes pictures of a Ford Aspire car during its launch in New Delhi, India


Thu, December 30, 2021
By Sudarshan Varadhan

CHENNAI (Reuters) - Foreign automakers have indicated an interest to the government of India's Tamil Nadu state in acquiring Ford Motor Co's plant there, the state industries minister said on Thursday, after inconclusive talks with the Tata Group.

Ford India said in September it would wind down operations at a factory in Western Gujarat state by end-2021 and vehicle and engine manufacturing at the Tamil Nadu plant by 2022, as it did not see a path to profitability in the country.


"Early stage talks are going on," Thangam Thennarasu, industries minister of Tamil Nadu told Reuters, adding that he could not give details of which firms were interested.

"It is eventually up to Ford as it will be a commercial arrangement. We are merely facilitating talks between the companies," he said. Thennarasu said the Tata Group had also shown an interest in buying the Ford plant, having met the state's chief minister and visited the plant for a preliminary study but the state government had yet to hear from them about any deal.

"It is now up to them to make an official announcement," Thennarasu told Reuters in an interview on Thursday.

Ford, asked about which firms might be interested in buying the Tamil Nadu plant, told Reuters in a statement: "We continue to explore possible alternatives for our manufacturing facilities but have nothing further to share."

Tamil Nadu, a state of more than 70 million people and one of the country's most industrialised, is sometimes called the "Detroit of Asia". It is home to factories of companies including BMW, Daimler, Hyundai, Nissan and Renault.

Thennarasu said the state has been receiving interest from electric vehicle manufacturers and battery makers. Ride-sharing company Ola, which has started an electric scooter manufacturing facility in the state, has expressed plans to expand, he said.

(Reporting by Sudarshan Varadhan in Chennai; Editing by Robert Birsel and Emelia Sithole-Matarise)

Hyundai shutters engine development in shift to electric and hydrogen vehicles

Researchers focus on batteries, motors, fuel cells and semiconductors


Hyundai is quickly pivoting into an era of electric vehicles. Shortly after announcing it would halve the number of internal combustion models, it launched its first EV on its dedicated Electric Global Modular Platform (E-GMP), the supremely enjoyable Ioniq 5. Now, as The Korea Economic Daily reports, Hyundai Motor Group, which includes sister brand Kia and luxury brand Genesis, has closed its engine development division at its research and development center in South Korea to put those resources into electric powertrain development.

According to the report, researchers from engine design are moving to its electrification design center, but a few remain behind to continue to refine existing internal combustion engines. The powertrain system development center will become an electrification test center, and the performance division will focus on electric performance. The group has also established a battery development center, and the R&D Center will also focus on raw materials for batteries and semiconductors.

In an email, R&D boss Park Chung-Kook told employees, “Now, it is inevitable to convert into electrification. Our own engine development is a great achievement, but we must change the system to create future innovation based on the great asset from the past.”

Hyundai Motor Group is targeting one million EVs a year by 2025, and full electrification by the year 2040. In addition to the newly launched Ioniq 5, Hyundai is planning to launch the Ioniq 6 EV, based on the stunning Prophecy concept, in 2022, and we’ve already seen spy shots of that prototype in testing. That will be followed by the full-size Ioniq 7 SUV in 2024, which was recently previewed by the Seven Concept at the 2021 L.A. Auto Show. Kia is set to launch the EV6 in 2022, and Genesis recently revealed the GV60 electric crossover, both of which will use Hyundai’s E-GMP architecture. Genesis also recently revealed an electric version of the GV70 crossover in China. Of course, Hyundai is also invested in hydrogen fuel cell vehicles, both commercial vehicles like its Xcient trucks, and passenger cars like the Nexo and the recently revealed Vision FK concept.

 

Ford Mustang Mach-E replacement battery exceeds the cost of the car in Canada

In Canada the Ford Mustang Mach-E has a base MSRP of $51,495. That will get you the Select variant, which comes with a 397km (247 mile) range from the 68kWh battery pack.

If you are unfortunate enough that you have to pay out of pocket for a new battery, be prepared to pay more than the original cost of the car for the replacement.

And that’s before factoring in labour costs.

According to a photo of internal dealer pricing shared on Reddit, a Mach-E battery has a “list” cost of $54,685.80. Unfortunately the price the dealer pays has been removed from the image.

mach-e-battery-cost 
Credit: u/Terrh /Reddit

Ford does offer a battery pack warranty of 8 years or 160,000 km, so the number of Mach-E owners who will have to pay for a battery replacement should be low, but it won’t be zero.

The likely explanation for the high price is that Ford is attempting to discourage third-parties from purchasing battery packs. The automaker has severely underestimated demand for their EV offerings, delaying new models to increase production of the Mach-E.

Any battery pack sold is one less car they can sell, so they price it at around the same amount as the car to minimize their losses.


Ford Mustang Mach-E Battery Costs More Than a $22,000 Tesla Model S Battery

It's been a weird week as battery costs have become a major topic, and now it's not just Tesla that is under the microscope. The Mustang Mach-E has a battery that costs even more. Of course, there's more to the story than the price of a specific part.
Ford Mustang Mach-E 6 photos
Ford Mustang Mach-E Battery PackFord Mustang Mach-E Battery PackFord Mustang Mach-E Battery PackFord Mustang Mach-EFord Mustang Mach-E
The Tesla we're talking about is the one owned by Finnish YouTuber Tuomas Katainen. He was quoted some $22,600 for a full battery replacement recently. Rather than fix the vehicle, he decided to blow it to kingdom come with explosives. Yet, he didn't specify the battery size for his car or if that price included the labor costs or not. But it still drew serious attention.

Now, Carscoops has found that the Ford Mustang Mach-E battery pack can cost up to $23,684. That's before the $5,000 core charge too. We get the feeling that the Mustang Mach-E pricing won't get near the same attention. Here's why.

First and foremost, Tesla just gets a lot more press even when they're far from the worst offenders. Second, there's a chance that this pricing has more to do with current conditions than it does with what Ford could sell the pack for.

Ford has made it very public that the Mach-E is selling like hotcakes. In fact, it's selling so well that they have had to make major changes to their business plan. Included in those changes are pushing back the development of the Explorer EV and the Lincoln Aviator EV.

In addition, they've decided to dedicate entire production facilities to the Mach-E so that they can try and meet demand. Despite all of that effort, they still may not actually be able to make as many as they're selling any time soon.

So, the $23,648 price tag on a Mach-E battery pack might be the price that Ford is willing to part with a battery pack for right now. Once production catches up, things could change dramatically. Only time will tell. 
Germany closes half its remaining nuclear power plants

The shutdowns of three plants take place as Europe faces one of its worst-ever energy crises and as support for nuclear as a low carbon energy is, once again, on the rise.




The Grohnde nuclear power plant is one of three being shut down on Friday

Germany is to shut down three nuclear power plants on Friday, as part of the country's phase-out of nuclear energy.

The closures take place as Europe faces one of its worst-ever energy crises and as nuclear power is, once again, gaining support as it produces significantly less carbon dioxide.

The plants in Brokdorf in the northern state of Schleswig-Holstein, Grohnde in Lower Saxony and Unit C at Gundremmingen in Bavaria in the south are being taken off the grid.

The decommissioning process will take two decades and cost €1.1 billion ($1.25 billion) per plant.

Where does this leave nuclear in Germany?


This means that in 2022, Germany will have just three nuclear power plants — in the states of Bavaria, Baden-Württemberg and Lower Saxony.

They are due to cease production in exactly a year's time, cutting nuclear energy output by around four gigawatts — equivalent to the power produced by 1,000 wind turbines.

However, two plants that produce fuel and fuel elements for export may continue to operate.

The closures will officially end the nuclear phase-out for domestic energy production started under former German Chancellor Angela Merkel.

Merkel's government made the decision in 2011 after the accident at the Fukushima atomic power plant in Japan.

An earthquake and tsunami destroyed the coastal plant in the world's worst nuclear disaster since Chernobyl 25 years earlier.


The Brokdorf plant is one of three nuclear power stations in Germany being shut down on New Year's Eve

Since then, support for nuclear energy has been rising. According to the World Nuclear Association, nuclear produces no greenhouse gas emissions during operation and over its life cycle, has similar carbon emissions as wind power.
Berlin remains firm on nuclear phase-out

The new German government is sticking to the nuclear plan, despite softening public opinion.

A recent YouGov survey for Welt am Sonntag newspaper showed around half of Germans said they were in favor of reversing the nuclear shutdown due to the recent sharp rise in energy prices.

Monika Schnitzer, a member of the German Council of Economic Experts, told the Rheinische Post newspaper that it would make sense "economically and ecologically" to delay the shutdown.

But Economy and Climate Protection Minister Robert Habeck on Wednesday said he did not see the anti-nuclear consensus weakening.

Kerstin Andreae, the head of energy industry association BDEW, insisted the phaseout was irreversible.

Other EU countries, including France, are continuing to push nuclear energy and campaign for it to be included on the EU's list of sustainable energy sources eligible for investment.
Skyrocketing energy prices in Europe

With energy prices soaring across Europe, the timing of the closures could hardly be worse.

Earlier this month, Europe's reference gas price was 10 times higher than at the start of the year — and electricity prices are also soaring.

The spike has been fuelled by geopolitical tensions with Russia, which supplies one-third of Europe's gas, and stands accused of limiting deliveries to put pressure on the European Union over the Ukraine conflict.

Moscow also wants to start operating the controversial Nord Stream 2 pipeline, which will supply more Russian gas to Germany. The project is, however, yet to be officially certified by Berlin.

mm/rt (AFP, dpa, Reuters, AP)
CHINESE IMPERIALISM
Zijin starts production at giant Tibet copper mine

Reuters | December 27, 2021 

Tibet. (Image by Göran Höglund (Kartläsarn), Flickr).

Zijin Mining on Monday said it had started production at its Qulong copper mine in Tibet, one of the largest in top metals consumer China, adding a new source of supply to the market for next year.


Zijin, a well-known copper and gold producer that is buying Argentina-focused lithium miner Neo Lithium, took control of the Qulong mine around 18 months ago when it bought a 50.1% stake in operator Tibet Julong Copper Co and swiftly resumed construction at the project.

Julong Copper is expected to produce 120,000-130,000 tonnes of copper in 2022, including volumes from Phase 1 of Qulong and the Zhibula mine, which is also in Tibet, Zijin said in a filing to the Hong Kong stock exchange.

“After Phase 1 reaches the designated production capacity, the annual copper production volume will be approximately 160,000 tonnes,” it added.

The tightness in the copper concentrate market seen in recent years is expected to ease in 2022 as more mine production comes on stream. Annual treatment and refining charges (TC/RCs) agreed by miners and smelters have risen for the first time since 2015.

Zijin said Julong Copper had applied to merge the mining rights for the Qulong mine and the adjacent Rongmucuola mine, arguing they belong to the same copper ore body. Following the merger, the mine will be renamed as Julong and Phases 2 and 3 will be pursued, it added.

“If the project obtains the approvals of the relevant governmental authorities, a final mining and processing scale of approximately 200 million tonnes of ores per year can be reached, and it will become the copper mine with the largest mining and processing scale in the world,” Zijin said.

(By Tom Daly; Editing by Emelia Sithole-Matarise)
CRYPTO CAPITALI$M
Winter’s Here for Bitcoin Miners in Kazakhstan and Iran as Cold Weather Brings Slowdowns

The road to mountain ski resort Chimbulak in Almaty, Kazakhstan. Source: Maxim Petrichuk

Cold weather in some of Bitcoin (BTC) and crypto mining’s hotspots is bringing bad tidings for the industry – with power interruptions experienced in Kazakhstan and the government intervening in Iran.

Per Interfax’s Kazakhstan service, the National Association of Blockchain and Data Centers Industry in Kazakhstan (NABDC) has announced that “several dozen” of its industrial members are “experiencing interruptions” in electricity supplies – rendering a number of data centers “idle for more than a month.”

The NABDC claimed that legal miners in the nation have lost about 300m kWh of electricity since the temperatures began to drop, causing a total “direct loss” of more than USD 9.7m worth of revenue for Kazakhstan’s energy industry.

The body’s President Alan Dordzhiev was quoted as stating that despite a recent government ruling to “urgently” push ahead with the legislative regulation of mining, miners who had complied were still being hit with power outages.

In October, the Minister of Energy and the nation’s President claimed that “above-board” miners would be allowed to “continue their activities without additional restrictions.”

Meanwhile, in Iran, the government has stepped in as temperatures in areas such as Bostan Abad drop down to as low as -10 degrees Celsius, driving energy consumption up – and leading energy providers to order registered crypto mining to stop operating on a temporary basis.

According to the IRIB News Agency, Mostafa Rajabi Mashhadi, the Deputy Managing Director of the Iran Grid Management Company told a radio station that Iran had moved to shut down crypto mining operators to slash fuel consumption at power stations amid decreasing temperatures – and had begun imposing restrictions on the sector beginning last month. He was quoted as stating that the relevant ministry had been disconnecting “licensed” crypto mining centers’ power supplies, as well as switching off street lights in certain parts of the nation as the grid began to show signs of strain.

Rajabi Mashhadi added that forecasts of colder weather in store over the next week meant that citizens needed to use power prudently in the coming months.

Share of global Bitcoin hashrate (monthly average)
- To our knowledge, there is little evidence of large mining operations in Germany or Ireland that would justify these figures. Their share is likely significantly inflated due to redirected IP addresses via the use of VPN or proxy services. Source: Cambridge Bitcoin Electricity Consumption Index

____
Learn more:
- Russian Provinces Free to Make Crypto Miners Pay Higher Electricity Rates, Says Gov’t
- 20% of Bitcoin Hashrate Is ‘Still in Mainland China,’ Report Claims

- Bitcoin Mining Hash Rate to Double in 2022, Compute North CEO Predicts
- Paraguay: Bitcoin & Crypto Mining Bill Passes Senate, Heading to Lower House

- Dominated by Institutions, Bitcoin Mining is also Possible from Home
- How Bitcoin Mining Might Help Nations With Domestic Energy Production

Crypto miners in Kazakhstan flee over aging electricity infrastructure

Kazakhstan's inability to supply consistent electricity is forcing miners out of the country.

SAMUEL WAN · DECEMBER 28, 2021 

Samuel Wan

Kazakhstan’s crypto mining industry was initially boosted by China’s tightening grip on digital asset regulation.

But, some seven months down the line, it’s emerging that Kazakh-based miners are fed-up with electricity shortages. Some miners report nearing bankruptcy due to the national grid’s inability to supply consistent power.

Just as the country was emerging as a significant global crypto mining hub, it seems as though things have gone south as miners begin to leave.
Kazakhstan initially benefited from China crypto ban

China banned financial institutions from dealing with crypto transactions in May this year. In the months following, Chinese authorities have become increasingly hardline on the matter.

In September, a statement from the People’s Bank of China (PBoC) said all crypto activities are now illegal.

As expected, people circumvent rules, for example, turning to DEXes and P2P exchanges. And in some cases continuing to use crypto exchanges via VPNs and foreign registered details.

In response, the PBoC vowed to crack down on all loopholes, including labeling the use of overseas exchanges as “illegal financial activity.” They say this is justified because digital currency “endangers the safety of people’s assets.”


“Overseas virtual currency exchanges that use the internet to offer services to domestic residents is also considered illegal financial activity.”

The upshot to all of this has been a massive slowdown in crypto activity in China, most notably in the drop in mining hashrate coming out of China.

Data from the Cambridge Bitcoin Electricity Consumption Index shows a significant tail off in Bitcoin hashrate from China in May. At the same time, Kazakhstan’s hashrate went from 11.9 Eh/s in May, almost doubling to 21.9 Eh/s in August.
Source: ccaf.io

Part of the reason for this was the Kazakh government’s encouragement of crypto mining via recognizing the activity in legislation and giving tax breaks to miners.

It also helps that the country enjoys some of the lowest electricity prices globally, coming in at $0.041 per kWh for households.
Soviet-era electricity infrastructure not up to scratch

As quickly as crypto miners set up base in Kazakhstan, the country’s aging Soviet-era electricity grid felt the strain. Residents blame power cuts directly on the presence of miners in the country.

The founder of Xive, a crypto mining firm operating in the region, Didar Bekbauov, said:

“They made mining [a] scapegoat.”

Bekbauov added that Xive closed one of its mining farms in the south of Kazakhstan after its power was cut in November. While the company still operates another facility in the country, he is thinking of closing all operations and moving to the U.S.

Similarly, this month saw Bitmain-backed BitFuFu shit down its Kazakstan operations to set up in the U.S.

Kazakhstan Electricity Grid Operating Company (KEGOC) said it was forced to cut electricity supply due to unscheduled repairs.
China Mobile forced to cease operations in Canada by government order

29-Dec-2021
CGTN
CMLink, China Mobile's subsidiary in Canada, will cease operations on January 5, 2022, in compliance with the request of the Canadian Federal Government, according to a statement on Tuesday.

The Canadian subsidiary of the largest telecommunications company in China said it will not accept any new membership applications starting from December 28 (Canadian Eastern Time), and SIM cards that haven't been activated before January 5 will be void.

CMLink pledged to help its users to transfer to other operators retaining their current number before March 31. The company also announced arrangements in terms of refunds for its users.

The Canadian Federal Government issued an order in August directing China Mobile to divest or liquidate its Canadian business within 90 days, citing national security concerns.

CMLink pushed back and applied to the courts in September to have the order temporarily shelved, arguing that the Canadian government has no grounds to believe the company would compromise Canada's national security or engage in espionage. But the application was rejected early this month.

China Mobile's Canadian subsidiary was founded in 2015 to provide mobile communication services, but the company does not own or operate any telecommunications network facilities in the country. It partnered with the Canadian company Telus Communications to provide services through the Telus network.

"(Since) the company does not own nor operate any transmission facilities in Canada, (it) lacks privileged or direct access to any critical infrastructure and does not have access to any sensitive telecommunications data or personal information, other than basic contact details," the Toronto Star reported on September.
CRIMINAL CAPITALI$M WITH CHINESE CHARACTERISTICS
Taiwanese actors Zhang Ting, Lin Ruiyang caught in alleged pyramid scheme as China regulator freezes US$94 million assets


Wed, December 29, 2021, 

A cosmetics and skin care products company founded by married Taiwanese actors Zhang Ting and Lin Ruiyang has had assets worth 600 million yuan (US$94 million) frozen due to an investigation by China's market regulator over an alleged pyramid scheme.

The market regulator in Shijiazhuang, the capital of northern China's Hebei province, said it had received several reports about a suspected pyramid scheme involving Shanghai Dowell Trading, according to a letter widely circulated on Chinese social media platforms on Tuesday.

"Because of its use of financial institutions to transfer or conceal funds involved in pyramid schemes, the administration has applied to the People's Court to take preservation measures under the law, and the case is currently under further investigation," said the letter dated last week.


Do you have questions about the biggest topics and trends from around the world? Get the answers with SCMP Knowledge, our new platform of curated content with explainers, FAQs, analyses and infographics brought to you by our award-winning team.

Shanghai Dowell Trading responded on Wednesday, and said that it "is a legally operating company that has always complied with the government guidance, adhered to the legal operation, and paid taxes according to the law".

"We are very grateful to the Administration for Market Regulation of Shijiazhuang Yuhua District for guiding our company to check the risk; at present, the company is operating normally. Our company will actively cooperate with relevant departments," said the statement on the company's Twitter-like Weibo account.

Shanghai Dowell Trading, which was founded in 1996, is the main operator of cosmetics and skin care products brand TST Tin'Secret, which lists Taiwanese model-actress Lin Chi-ling as a spokeswoman.

Chinese actor Xu Zheng is also a former shareholder, while several famous Chinese stars have posted photos on social media using the brand's face masks.

The Taiwan Affairs Office within China's State Council said at a regular press conference on Wednesday that the business incident had nothing to do with cross-strait relations.


Taiwanese model-actress Lin Chi-ling is listed as a spokeswoman for TST Tin'Secret. 

"I want to emphasise that anyone running or starting a business in the mainland must first and foremost follow the law and regulations," said Taiwan Affairs Office spokesman Ma Xiaoguang.

Lin made a name for himself starring in the Chinese TV series Fantasies Behind The Pearly Curtains in the 1970s, while Zhang featured in the Legendary Chien Lung TV series in 1991.

Pyramid schemes, which are illegal in China like many other countries, are businesses that recruit people whose job is to enrol others into the scheme rather than selling a specific product or service.

The business model means only a few people at the top of the pyramid earn money, while the large number at the bottom will make little to zero return on their investment.

 Taiwanese actors Zhang Ting and Lin Ruiyang founded Shanghai Dowell Trading in 1996. 

They are similar to multilevel marketing in terms of structure, but do not involve a specific product.


As early as 2016, the Beijing Youth Daily newspaper reported several skin irritation and acne cases caused by the face masks. The "China Consumer Reports" journal also featured cases of skin damage caused by the products as one of its annual cases as part of International Consumer Rights Day in 2017.

Li Xu, the founder of the Chinese civil society organisation "Li Xu anti-multi-level marketing team," said Shanghai Dowell Trading uses three typical features of a pyramid scheme, namely the need to pay a joining fee, the number of people involved and the method of payment.

The correlation between agents' salaries and the size of their teams means the more members people bring in, the more commission they receive, he added.

Li said traditional pyramid schemes are based on pure money flow and are more likely to gather funds in the name of investment, which differs from the current pyramid micronet businesses that own legitimate companies and products.

"They have legitimate companies as a cover and will even have celebrity endorsements, but it's still a pyramid scheme in nature," said Li.

Shanghai Dowell Trading was recognised for making the highest annual tax payment in Shanghai's Qingpu District in both 2017 and 2018, with the company claiming to have paid 2.1 billion yuan (US$330 million) in tax in 2018 alone.

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