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Hong Kong drinks company Vitasoy faces China netizen calls for boycott

A policeman takes pictures at the site where a man allegedly stabbed a police officer in Causeway Bay, during the 24th anniversary of the former British colony’s return to Chinese rule and on the 100th founding anniversary of the Communist Party of China, in Hong Kong, China July 1, 2021. REUTERS/Tyrone Siu

HONG KONG, July 4 (Reuters) – Beverage maker Vitasoy (0345.HK) has become the latest target of Chinese netizens’ calls for a boycott after an employee circulated a memo online offering condolences to the family of a worker who had stabbed a Hong Kong police officer.

In a statement on the Chinese social media platform Weibo on Saturday, Vitasoy said a staff member had circulated a memo that it described as “extremely inappropriate” without authorisation, and the company reserved the right to take legal action.

The memo offered condolences to the family of a 50-year-old Vitasoy worker who had stabbed a police officer, 28, and then killed himself on Thursday, the anniversary the former British colony’s return to Chinese rule, media outlets reported.

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“What this employee wrote should not have been made public and should not have been published internally,” Vitasoy said.

“Vitasoy Group sincerely apologises for any troubles or grievances this has caused. We support Hong Kong’s long-term prosperity, stability and development.”

Police have described the stabbing as an attempted murder. The officer’s condition has improved from critical to serious.

The worker’s memo triggered a flood of online calls for a boycott of Vitasoy, which gets two-thirds of its revenue from mainland China.

The hashtag “#Vitasoygetoutofthemainland” has garnered almost 100 million views.

Hong Kong authorities warned on Sunday that advocating for people to mourn for the attacker was no different from “supporting terrorism” and criticised parents who took children to mourn him.

The Police National Security Department said it had taken over the case and initial investigations showed it was a “lone wolf-style act of domestic terrorism, in which the attacker was believed to be radicalised by myriad fake information.”

It warned members of the public “not to tolerate or glorify violence.”

A 20-year-old woman and a 26-year-old man were arrested on suspicion of inciting others to commit murder, as well as arson and seditious intention, said police Superintendent Wilson Tam.

Tam did not specify whether the arrests were related to the stabbing, telling a news conference only that the pair were suspected of posting messages on social media on Friday. One of the messages incited people to kill police, he said, adding that more arrests could not be ruled out.

On Friday, people went to the scene of the attack, some with children, to pay their respects to the attacker and lay flowers.

Mainland actor Gong Jun, who previously endorsed a Vitasoy lemon-flavoured drink, announced late on Friday he was ending commercial cooperation with the company, said Global Times, a tabloid published by the ruling Chinese Communist Party’s official People’s Daily newspaper.

His announcement followed that of another mainland Chinese actor, Ren Jialun, who said he was also ceasing co-operation with Vitasoy, the newspaper added.

Fashion retailer H&M (HMb.ST) said on Thursday its sales took a hit in China after its concerns over alleged human rights abuses in Xinjiang led to a social media-inspired boycott by shoppers. read more

Reporting By Anne Marie Roantree and Jessie Pang in Hong Kong and David Kirton in Shenzhen; Editing by William Mallard

Our Standards: The Thomson Reuters Trust Principles.

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EXCLUSIVE Amazon, Tata say Indian govt e-commerce rules will hit businesses -sources

NEW DELHI, July 3 (Reuters) – Amazon.com Inc (AMZN.O) and India’s Tata Group warned government officials on Saturday that plans for tougher rules for online retailers would have a major impact on their business models, four sources familiar with the discussions told Reuters.

At a meeting organised by the consumer affairs ministry and the government’s investment promotion arm, Invest India, many executives expressed concerns and confusion over the proposed rules and asked that the July 6 deadline for submitting comments be extended, said the sources.

The government’s tough new e-commerce rules announced on June 21 aimed at strengthening protection for consumers, caused concern among the country’s online retailers, notably market leaders Amazon and Walmart Inc’s (WMT.N) Flipkart.

New rules limiting flash sales, barring misleading advertisements and mandating a complaints system, among other proposals, could force the likes of Amazon and Flipkart to review their business structures, and may increase costs for domestic rivals including Reliance Industries’ (RELI.NS) JioMart, BigBasket and Snapdeal. read more

Amazon argued that COVID-19 had already hit small businesses and the proposed rules will have a huge impact on its sellers, arguing that some clauses were already covered by existing law, two of the sources said.

The sources asked not to be named as the discussions were private.

The proposed policy states e-commerce firms must ensure none of their related enterprises are listed as sellers on their websites. That could impact Amazon in particular as it holds an indirect stake in at least two of its sellers, Cloudtail and Appario.

On that proposed clause, a representative of Tata Sons, the holding company of India’s $100 billion Tata Group, argued that it was problematic, citing an example to say it would stop Starbucks (SBUX.O) – which has a joint-venture with Tata in India – from offering its products on Tata’s marketplace website.

The Tata executive said the rules will have wide ramifications for the conglomerate, and could restrict sales of its private brands, according to two of the sources.

Tata declined to comment.

The sources said that a consumer ministry official argued that the rules were meant to protect consumers and were not as strict as those of other countries. The ministry did not respond to a request for comment.

A Reliance executive agreed that the proposed rules would boost consumer confidence, but added that some clauses needed clarification.

Reliance did not respond to request for comment.

The rules were announced last month amid growing complaints from India’s brick-and-mortar retailers that Amazon and Flipkart bypass foreign investment law using complex business strcutures. The companies deny any wrongdoing.

A Reuters investigation in February cited Amazon documents that showed it gave preferential treatment to a small number of its sellers and bypassed foreign investment rules. Amazon has said it does not give favourable treatment to any seller.

The government will soon issue certain clarifications on the foreign investment rules, Indian commerce minister Piyush Goyal told reporters on Friday.

Reporting by Aditya Kalra in New Delhi;
Editing by Euan Rocha and Louise Heavens

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Twitter faces three police cases amid growing challenges in India

LUCKNOW, India, June 29 (Reuters) – Police in India have registered three new cases against Twitter Inc(TWTR.N) for allegedly hurting sentiments and promoting child pornography, marking an escalation in the row between the U.S. firm and Indian authorities.

Police in the states of Uttar Pradesh and Madhya Pradesh have named Twitter India chief Manish Maheshwari in complaints afterthe politically sensitive regions were depicted outside a map of India on its careers website.

Late on Tuesday, police in the capital New Delhi said in a statement they have registered a case against Twitter for “availability of child sexual abuse and child pornographic material” on its platform.

Twitter did not comment on cases related to India’s map. On the New Delhi case, Twitter said it has a zero tolerance policy for child sexual exploitation.

The police cases come as Twitter faces a public relations nightmare and a backlash from Prime Minister Narendra Modi’s federal government that has in recent weeks repeatedly criticized it for not complying with a new set of IT rules.

The tussle, coupled with discontent over the regulatory scrutiny of other U.S. tech firms like WhatsApp and Amazon, has upset the business environment in a key growth markets, so much so that some companies are rethinking expansion plans. read more

The latest complaints against Twitter were triggered following an uproar on social media after a map on Twitter’s careers page showed Jammu and Kashmir, claimed by both India and Pakistan, as well as the Buddhist enclave of Ladakh, outside India. As of Tuesday, the map was no longer visible on its site.

The Twitter logo is displayed on a screen on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., September 28, 2016. REUTERS/Brendan McDermid

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“This has hurt my sentiments and those of the people of India,” Praveen Bhati, a leader of a hardline Hindu group Bajrang Dal in Uttar Pradesh, said in the complaint which was reviewed by Reuters. He also called it an act of treason.

The child pornography case in New Delhi was registered after India’s National Commission for Protection of Child Rights wrote to police saying it had received a complaint about online threats against a minor girl, and found pornographic material on Twitter, according to a letter written by the rights group to police.

“Investigation has been taken up,” the Delhi police statement said.

The cases are set to amplify Twitter’s troubles in India. Technology minister Ravi Shankar Prasad has criticised Twitter for its failure to abide by the IT rules in recent weeks, which came into effect in May. read more

Companies such as Twitter must now appoint a chief compliance officer, a grievance officer and another executive to liaise with law enforcement and the government on legal requests. LinkedIn job postings show the three positions are open at Twitter.

Non-compliance with those rules means Twitter may no longer enjoy the legal privilege in India that allowed it to not be held liable for user-generated content, lawyers and government sources say. Activists however defend Twitter, saying only courts can arrive at that decision.

Twitter India chief Maheshwari is battling another police case where he has been summoned to answer allegations that include inciting “hate and enmity” between Hindu and Muslim communities in relation to a video that went viral on its platform. A state court last week said no “coercive action” should be taken against Maheshwari in the case. read more

Reporting by Saurabh Sharma and Sankalp Phartiyal; Additional reporting by Abhirup Roy; Editing by Aditya Kalra, Edwina Gibbs and Nick Macfie

Our Standards: The Thomson Reuters Trust Principles.

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Tesla shares drop after muted Q1 results as a global chip crunch persists

Shares of Tesla Inc (TSLA.O) fell more than 4% on Tuesday as its first-quarter earnings results failed to alleviate investor concerns about its lofty evaluation, as well as a prolonged global chip shortage and rising competition.

The electric car maker’s quarterly revenue made it barely past estimates, relying mostly on sales of environmental credits sold to other automakers and the liquidation of 10% of its $1.5 billion bitcoin investment.

“Tesla’s performance was OK but it wasn’t a Elon Musk slam dunk…I don’t think people are into Tesla because of bitcoin,” said Eric Schiffer, CEO of private equity Patriarch Organization, which has an underweight stance on Tesla.

“Investors are rejecting the stock short term,” he said, saying Tesla’s performance has fallen short of catching up its “astronomical valuation.”

Musk, the company’s CEO, did earn options payouts worth $11 billion based on targets reached by the company.

Shares of the automaker closed down 4.5% at $704.74, down more than 20% from its intraday high reached in January. They had surged more than 700% last year, making Tesla the world’s most valuable automaker.

Tesla posted record deliveries in the first quarter despite a global chip shortage that has slammed auto sector rivals. But analysts said a prolonged shortage of chips and batteries could threaten to dampen its growth prospect.

“A global shortage of computer chips is expected to limit production from all manufacturers in the immediate future, and Tesla won’t be exempt,” said Nicholas Hyett, equity analyst at Hargreaves Lansdown.

“Given the ongoing importance of its production ramp up, it may even be more heavily impacted.”

Regarding supply chain instability, Tesla Chief Financial Officer Zachary Kirkhorn said on Monday, “We believe that this landscape is improving, but it does remain difficult, and it’s an evolving situation.”

Roth Capital Partners said it holds a neutral rating on Tesla, saying that Tesla’s large premium “seems to rest on the specious assumption that the hundreds of EVs slated for launch by ’25 will all be flops.”

“Tesla does not operate in a vacuum,” it said in a report.

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