Saturday, August 10, 2024

China's drivers fret as robotaxis pick up pace — and passengers

August 10, 2024 
By Reuters
A driverless car by Apollo Go, Baidu's robotaxi service, drives on a road in Wuhan, Hubei province, China, July 19, 2024.

WUHAN, China —

Liu Yi is among China's 7 million ride-hailing drivers. A 36-year-old Wuhan resident, he started driving part-time this year when construction work slowed in the face of a nationwide glut of unsold apartments.

Now he predicts another crisis as he stands next to his car watching neighbors order driverless taxis.

"Everyone will go hungry," he said of Wuhan drivers competing against robotaxis from Apollo Go, a subsidiary of technology giant Baidu 9888.HK.

Baidu and the Ministry of Industry and Information Technology declined comment.

Ride-hailing and taxi drivers are among the first workers globally to face the threat of job loss from artificial intelligence as thousands of robotaxis hit Chinese streets, economists and industry experts said.

Self-driving technology remains experimental but China has moved aggressively to green-light trials compared with the U.S which is quick to launch investigations and suspend approvals after accidents.

At least 19 Chinese cities are running robotaxi and robobus tests, disclosure showed. Seven have approved tests without human-driver monitors by at least five industry leaders: Apollo Go, Pony.ai, WeRide, AutoX and SAIC Motor 600104.SS.

Apollo Go has said it plans to deploy 1,000 in Wuhan by year-end and operate in 100 cities by 2030.

A driverless car by Apollo Go, Baidu's robotaxi service, drives past another Apollo Go robotaxi parked on the side of a road, in Wuhan, Hubei province, China, July 19, 2024.

Pony.ai, backed by Japan's Toyota Motor 7203.T, operates 300 robotaxis and plans 1,000 more by 2026. Its vice president has said robotaxis could take five years to become sustainably profitable, at which point they will expand "exponentially."

WeRide is known for autonomous taxis, vans, buses and street sweepers. AutoX, backed by e-commerce leader Alibaba Group 9988.HK, operates in cities including Beijing and Shanghai. SAIC has been operating robotaxis since the end of 2021.

"We've seen an acceleration in China. There's certainly now a rapid pace of permits being issued," said Boston Consulting Group managing director Augustin Wegscheider. "The U.S. has been a lot more gradual."

Alphabet's GOOGL.O Waymo is the only U.S. firm operating uncrewed robotaxis that collect fares. It has over 1,000 cars in San Francisco, Los Angeles and Phoenix but could grow to "thousands," said a person with knowledge of its operations.

Cruise, backed by General Motors GM.N, restarted testing in April after one of its vehicles hit a pedestrian last year.

Cruise said it operates in three cities with safety its core mission. Waymo did not respond to a request for comment.

"There's a clear contrast between U.S. and China" with robotaxi developers facing far more scrutiny and higher hurdles in the U.S., said former Waymo CEO John Krafcik.

Robotaxis spark safety concerns in China, too, but fleets proliferate as authorities approve testing to support economic goals. Last year, President Xi Jinping called for "new productive forces," setting off regional competition.

Beijing announced testing in limited areas in June and Guangzhou said this month it would open roads citywide to self-driving trials.

Some Chinese firms have sought to test autonomous cars in the U.S. but the White House is set to ban vehicles with China-developed systems, said people briefed on the matter.


SEE ALSO:
US expected to propose barring Chinese software in autonomous vehicles


Boston Consulting's Wegscheider compared China's push to develop autonomous vehicles to its support of electric vehicles.

"Once they commit," he said, "they move pretty fast."

'Stupid radishes'

China has 7 million registered ride-hailing drivers versus 4.4 million two years ago, official data showed. With ride-hailing providing last-resort jobs during economic slowdown, the side effects of robotaxis could prompt the government to tap the brakes, economists said.

In July, discussion of job loss from robotaxis soared to the top of social media searches with hashtags including, "Are driverless cars stealing taxi drivers' livelihoods?"

In Wuhan, Liu and other ride-hailing drivers call Apollo Go vehicles "stupid radishes" - a pun on the brand's name in local dialect - saying they cause traffic jams.

Liu worries, too, about the impending introduction of Tesla's TSLA.O "Full Self-Driving" system - which still requires human drivers - and the automaker's robotaxi ambitions.

"I'm afraid that after the radishes come," he said, "Tesla will come."

Wuhan driver Wang Guoqiang, 63, sees a threat to workers who can least afford disruption.

"Ride-hailing is work for the lowest class," he said, as he watched an Apollo Go vehicle park in front of his taxi. "If you kill off this industry, what is left for them to do?"

Baidu declined to comment on the drivers' concerns and referred Reuters to comments in May by Chen Zhuo, Apollo Go's general manager. Chen said the firm would become "the world's first commercially profitable" autonomous-driving platform.

Apollo Go loses almost $11,000 a car annually in Wuhan, Haitong International Securities estimated. A lower-cost model could enable per-vehicle annual profit of nearly $16,000, the securities firm said. By contrast, a ride-hailing car earns about $15,000 total for the driver and platform.

'Already at the forefront'

Automating jobs could benefit China in the long run given a shrinking population, economists said.

"In the short run, there must be a balance in speed between the creation of new jobs and the destruction of old jobs," said Tang Yao, associate professor of applied economics at Peking University. "We do not necessarily need to push at the fastest speed, as we are already at the forefront."

Eastern Pioneer Driving School 603377.SS has more than halved its instructor number since 2019 to about 900. Instead, it has teachers at a Beijing control center remotely monitoring students in 610 cars equipped with computer instruction tools.

Computers score students on every wheel turn and brake tap, and virtual reality simulators coach them on navigating winding roads. Massive screens provide real-time analysis of driver tasks, such as one student's 82% parallel-parking pass rate.

Students wearing virtual reality (VR) headsets practise on car driving simulators at Eastern Pioneer Driving School in Beijing, China July 23, 2024.

Zhang Yang, the school's intelligent-training director, said the machines have done well.

"The efficiency, pass rate and safety awareness have greatly improved."
Stellantis to lay off 2,450 workers at Michigan plant in US

Move comes as Ram 1500 pickup production ends in Warren Truck Assembly plant

Ovunc Kutlu |10.08.2024 - 



ISTANBUL

Chrysler, Dodge and Ram Trucks' parent, Stellantis, announced Friday it will lay off 2,450 workers at its plant in the US state of Michigan.

Many of the affected workers may shift elsewhere in the company rather than face layoffs, it said in a statement.

Indefinitely laid-off represented seniority employees will receive 52 weeks of supplemental unemployment benefits, paid by the company, and 52 weeks of transition assistance, it said.

"This would be in addition to any state unemployment benefits an employee might be eligible to receive," it said. "They will also receive two years of health care coverage."

The move comes as Ram 1500 pickup production ends at the Warren Truck Assembly plant in Michigan.

Stellantis was formed in 2021 from the merger of the Italian-American conglomerate Fiat Chrysler Automobiles and the French PSA Group. The company's headquarters are in the Netherlands.

While Stellantis designs, manufactures and sells autos in 14 brands, it ranked fourth globally last year in sales among automakers.
Tengku Zafrul: Miti to meet Tesla this month to verify carmaker’s plan in Malaysia, amid rumours of it pausing regional plans


Putrajaya says Tesla has never committed to opening a factory in Malaysia. 
— Bernama pic

By Malay Mail
Saturday, 10 Aug 2024

KUALA LUMPUR, Aug 10 — The Ministry of Investment, Trade, and Industry (Miti) said it is planning to meet American carmaker Tesla Inc’s representatives on August 22 to verify whether it is planning to cancel its plans to develop factories in the region.

Its minister Datuk Seri Tengku Zafrul Abdul Aziz was quoted today saying the meeting will be important as Tesla has yet to make any official statement over the rumour.

“The information or allegations about the factory cancellation, we have only heard from third parties, not from Tesla.

“We will meet with Tesla’s top management from the United States in two weeks,” he was quoted saying by Sinar Harian in Sabak Bernam,

He said his ministry will then issue a statement on the meeting after obtaining Tesla’s agreement, as it involves internal company matters.

Tengku Zafrul also said that any cancellation would not, affect Malaysia as one of the electric vehicle (EV) hubs in the region.

Yesterday, Tengku Zafrul said Tesla has never committed to opening a factory in Malaysia and his ministry had only engaged in discussions with Tesla founder Elon Musk in efforts to attract investment.

Prime Minister Datuk Seri Anwar Ibrahim also had said that Tesla’s decision to defer its planned expansion in the region was not a result of Malaysia’s performance or polices.

Instead, he said it was down to fierce competition to the US EV from Chinese rivals.

Last week, Thai news portal The Nation published a report saying that Tesla was halting plans for factories in the region, including in Malaysia, Thailand, and Indonesia.

This caused confusion here, as Tesla did not previously commit to such a factory, but rather to developing the firm’s supercharger network.
US reverses ban on selling offensive weapons to Saudi Arabia as ties warm


A man stands in the site of the wreckage of a US MQ-9 drone that Houthis claim they shot out of the sky, in a location given as Saada Governorate, Yemen in an undated screengrab obtained on August 4, 2024. — Reuters pic

Saturday, 10 Aug 2024 


WASHINGTON, Aug 10 — The Biden administration has decided to lift a ban on U.S. sales of offensive weapons to Saudi Arabia, the State Department said on Friday, reversing a three-year-old policy to pressure the kingdom to wind down the Yemen war.

The State Department was lifting its suspension on certain transfers of air-to-ground munitions to Saudi Arabia, a senior department official confirmed. "We will consider new transfers on a typical case-by-case basis consistent with the Conventional Arms Transfer Policy," the official said.

Reuters was first to report the decision earlier, citing five sources.

The administration briefed Congress this week on its decision to lift the ban, a congressional aide said. One source said sales could resume as early as next week. The U.S. government was moving ahead on Friday afternoon with notifications about a sale, a person briefed on the matter said.

"The Saudis have met their end of the deal, and we are prepared to meet ours," a senior Biden administration official said.

Under U.S. law, major international weapons deals must be reviewed by members of Congress before they are made final. Democratic and Republican lawmakers have questioned the provision of offensive weapons to Saudi Arabia in recent years, citing issues including the toll on civilians of its campaign in Yemen and a range of human rights concerns.

But that opposition has softened amid turmoil in the Middle East following Hamas' deadly Oct. 7 attack on Israel and because of changes in the conduct of the campaign in Yemen.

Since March 2022 – when the Saudis and Houthis entered into a U.N.-led truce – there have not been any Saudi airstrikes in Yemen and cross-border fire from Yemen into the kingdom has largely stopped, the administration official said.

"We also note the positive steps that the Saudi Ministry of Defense have taken over the past three years to substantially improve their civilian harm mitigation processes, in part thanks to the work of U.S. trainers and advisors," the State Department official said.

Warmer Saudi ties

Yemen's war is seen as one of several proxy battles between Iran and Saudi Arabia. The Houthis ousted a Saudi-backed government from Sanaa in late 2014 and have been at war against a Saudi-led military alliance since 2015, a conflict that has killed hundreds of thousands of people and left 80 per cent of Yemen's population dependent on humanitarian aid.

Biden adopted the tougher stance on weapons sales to Saudi Arabia in 2021, citing the kingdom's campaign against the Iran-aligned Houthis in Yemen, which has inflicted heavy civilian casualties.

Ties between the kingdom and the United States have warmed since then, as Washington has worked more closely with Riyadh in the aftermath of Hamas' Oct. 7 attack to devise a plan for post-war Gaza.

The Biden administration also has been negotiating a defense pact and an agreement for civil nuclear cooperation with Riyadh as part of a broad deal that envisions Saudi Arabia normalizing ties with Israel, although that remains an elusive goal.

The decision comes as the threat level in the region has been heightened since late last month, with Iran and Lebanon's powerful Iran-backed Hezbollah group vowing to retaliate against Israel after Hamas' political chief Ismail Haniyeh was killed in Tehran.

The Houthis have emerged as a strong supporter of the Palestinian Islamist group Hamas in its war against Israel. Earlier this year, they attacked commercial ships that they said are linked to Israel or bound for Israeli ports. 

— Reuters

 

Pakistan’s remittance inflow stands at $3bn in July, up 48% year-on-year

  • On monthly basis, inflow down 5%
  • Amount from Saudi Arabia remains highest at $761mn
 Published August 9, 2024

Inflow of overseas workers’ remittances clocked in at nearly $3 billion in July, a massive 48% higher on a year-on-year basis when compared with $2.03 billion in the same month of the previous year, showed data released on Friday by the State Bank of Pakistan (SBP).

Remittance inflows in Pakistan clocked in at $2.995 billion in July 2024, 5% lower on a month-on-month basis when compared to $3.158 billion in June 2024.

The amount is the “highest ever for the month of July,” said brokerage house Topline Securities.

Home remittances play a significant role in supporting the country’s external account, stimulating Pakistan’s economic activity as well as supplementing disposable incomes of remittance-dependent households.

Back in June, the World Bank in its report ‘Migration and Development Brief 40’ expected remittances in Pakistan to recover and grow at about 7% to reach $28 billion in (calendar year) 2024 and increase another 4% to about $30 billion in 2025.

However, Pakistan collected $30.3 billion in fiscal year 2023-24 (FY24), 10.7% higher on a year-on-year basis.

Breakdown of remittances

Overseas Pakistanis in Saudi Arabia remitted the largest amount in July 2024 as they sent $761 million during the month. The amount declined by 6% on a monthly basis, but was 56% up than the $487 million sent by the expatriates in the same month of the previous year.

Inflows from the United Arab Emirates (UAE) also declined 7% on a monthly basis, from $654 million in June to $611 million in July. However, on a yearly basis, remittances improved by 94%, as compared to $315 million reported in same month last year.

Remittances from the United Kingdom amounted to $443 million during the month, a decrease of 9% compared to $487 million in June 2024.

Meanwhile, remittances from the European Union improved nearly 6% month-on-month as they amounted to $351 million in July 2024. Overseas Pakistanis in the US sent $300 million in July 2024, a month-on-month decrease of 7%.

Pakistan presents a unique opportunity for the U.S. in the war on terror

Since the United States pulled their troops out of Afghanistan in 2021 there has been a noticeable lack of intelligence being produced out of that region compared to when there were boots on the ground.


ByRishi Singh
August 10, 2024
Photo by Pixabay on pexels

Since the United States pulled their troops out of Afghanistan in 2021 there has been a noticeable lack of intelligence being produced out of that region compared to when there were boots on the ground. The US now relies on the ‘Over the Horizon’ approach, focusing on drone strikes to target terror groups in Afghanistan, particularly ISIS – Khorasan (ISIS-K) However, while ISIS-K has been in the spotlight lately, there is a growing fear over the resurgence of Al-Qaeda. Naveen Khan paints a sobering picture regarding Al-Qaeda’s future in her recent article called “Core Al-Qaeda Poses a High Threat to the United States.” It highlights that today Al-Qaeda has access to resources and the freedom to operate that they had not had since pre 9/11. She even asserts that Al-Qaeda could have the operational capacity to strike the United States within 12 to 36 months. 

Pakistan offers a unique opportunity for the United States to gain information and intelligence that it no longer has access to. On June 27th Defense Minister Khawaja Asif said that Tehreek-e-Taliban – Pakistan (TTP) hideouts in Afghanistan can be targeted under Operation Azm-e-Istehkam. This announcement comes after months of Pakistan trying to engage in talks with Afghanistan about ramping up counter terrorism efforts in Afghanistan, where Pakistan claims the TTP has used to plot attacks. Since the Taliban took control of Afghanistan the number of terrorism incidents has been increasing, see Figure 1 below. 

Figure 1: According to GRID (GTTAC Research Incidents Database) from 2019 to June 2024

Figure 1 shows the number of terrorism incidents in Pakistan from 2019 through June 2024. The graph shows stable numbers of attacks in Pakistan in 2019 and 2020. However, following the withdrawal of US troops from Afghanistan there is a clear trend of increasing attacks in the region that could easily hit 800 incidents in 2024, around a 300% increase. The attacks have led Pakistan to accuse the Afghan Taliban of providing a safe haven for the TTP to launch and plan their attacks in Pakistan. Defense Minister Khawaja Asif says TTP hideouts in Afghanistan can be targeted under Operation Azm-e-Istehkam. While these operations have not yet started, it is imperative that the US supports Pakistan’s efforts as Al-Qaeda and ISIS-K have been free to operate. The United Nations (UN)  recently released a report regarding the TTP on July 12th, “The Taliban do not conceive of TTP as a terrorist group: the bonds are close, and the debt owed to TTP significant,” The UN Security Council states the TTP has become the largest group that now operates freely in Afghanistan with around 6000-6500 fighters. Pakistan now faces an existential threat without having the proper resources to effectively deal with the threat at hand. 

Pakistan needs to seek tangible support from other countries. However, neighboring superpowers like Russia and China may be unwilling to provide such assistance. They view the new Taliban regime as an opportunity rather than a threat to their national security. China sees the new regime as an opportunity to create new energy and mining projects while exploring investment options. Russia has played with the idea of removing the Taliban from their list of Foreign Terrorist Organizations and opening diplomatic relations with the Taliban government. This leaves the United States as the best option for support, especially when pitching the rising threat of ISIS-K. The increasing numbers of claimed ISIS-K attacks shown in Figure 2 are worrisome and have become more than just a regional threat.

Figure 2: According to GRID (GTTAC Research Incidents Database) from 2019 to June 2024

Figure 2 shows the recent trends associated with Islamic State in Pakistan and Afghanistan. The attacks shown in the figure are incidents that have been claimed by the two groups. It is important to note the increasing trend among ISIS – Khorasan (ISIS-K). ISIS was a group that was believed to have been largely defeated following western counter terrorism efforts in the Middle east and Western Asia. As the trends suggest, there has been a recent resurgence with more attacks being claimed including the deadly attack in Moscow on March 22 that killed 130 people and injured hundreds more. In 2024, a new ISIS faction was created known as Islamic State – Pakistan Province (ISIS-PP) that has already claimed four attacks. The safe haven the Taliban state has created in Afghanistan for terror groups has shown its effect not only regionally but globally as well. 

Following the announcement of Operation Azm-e-Istehkam, the United States should seize the opportunity for more intelligence on top commanders of the different groups. With the over the horizon approach, decapitation has become the default method for their efforts. By obtaining more and timelier information it will benefit the United States’ efforts to limit the growth of ISIS-K and Al-Qaeda groups. The United States must remember the importance of preventative measures before history has a chance to repeat itself. The exchange of intelligence could provide the United States with the ability to better monitor the growing threats in the region as well as strengthen national security ties with Pakistan.

Rishi Singh
Rishi Singh
My name is Rishi Singh, I recently graduated from George Mason University with a degree in Global Affairs and a minor in Intelligence Studies. My studies focused on the Theory and Social Dynamics of Terrorism. I currently work at the Global Terrorism Trends and Analysis Center (gttac.com) with a focus on Pakistan and Southeast Asia. My job works on documenting and analyzing the terrorism trends in the assigned regions.

 PAKISTAN

CRIMINAL CAPITALI$M

KARACHI: Some nine iron and steel importers have been caught in a massive money laundering worth a staggering Rs 9.7 billion, committed in the last three fiscal years. This was revealed in a classified document, which was exclusively available to Business Recorder, Karachi.

According to the details, the Post Clearance Audit (PCA), South has uncovered a huge money laundering case involving around Rs 9.7 billion in the iron and steel sector.

The scandal is linked to nine fraudulent importers who exploited the “manufacturing status” to evade Rs 315 million in duty taxes.

PCA South initiated a sector-based audit focusing on iron and steel imports, following reports of massive misuse.

Solar panel imports: PCA South uncovers another money laundering offence

PCA South issued audit notices to the nine importers, however, all notices were returned by the courier company with remarks that the addresses were untraceable.

Upon verifications by the PCA teams, it was confirmed that said nine importers were physically non-existent.

Scrutiny of the FBR database led to the discovery that these companies had transferred Rs 9.72 billion abroad while evading Rs 315 million in taxes through illegal exemptions availed by way of misuse of manufacturing status.

The modus operandi of these importers indicated a well-orchestrated plot to siphon funds out of the country illegally.

The importers falsely claimed exemptions and reduced rates of duty/taxes that were only allowed for manufacturing enterprises. The importers engaged in commercial sales of same-state iron and steel products while lacking any manufacturing facilities or business premises.

The scrutiny also revealed that said nine importers had very poor financial worth, as per their income tax declarations, which made financing such massive imports highly suspicious.

Even more striking, three of the nine importers did not file income tax returns at all, thus substantiating “Nil” financial worth, while financing imports worth Rs 2.48 billion, showcasing a blatant money laundering scam.

The PCA teams are intensively probing to identify the real masterminds behind these fraudulent operations. To hold the true perpetrators accountable, the investigation is expected to uncover deeper layers of this intricate scam. Investigation will also cover as to how such companies managed to acquire manufacturing status registrations without having any physical existence at all.

PCA teams, led by Director General Chaudhry Zulfiqar Ali and Director PCA South Sheeraz Ahmed, are now probing to identify the true masterminds behind these fraudulent operations.

The investigation aims not only to hold the real perpetrators accountable but also to uncover the deeper layers of this complex scam. A key focus of the inquiry is to determine how these non-existent companies managed to acquire manufacturing status registrations without any physical presence.

Copyright Business Recorder, 2024