Facebook Instagram Linkedin Twitter Youtube
Home Blog Page 2026

Chinese TikTok sellers complain of under-fire platform tightening US rule enforcement

STOCK PHOTO | Image by amrothman from Pixabay

SHENZHEN, China – Chinese e-commerce vendors that want to sell products on TikTok Shop in the US as an alternative to Amazon are upset by moves they say the short video app has made to tighten enforcement of its rules for overseas sellers opening shops on the platform.

Chinese-owned TikTok, which faces the threat of having to divest its US operations or be banned, has in recent weeks taken a harder stance toward enforcing its internal rules, according to five Chinese vendors on the site and an industry association that represents 3,000 Chinese stores selling products online.

TikTok is requiring that US entities registered by sellers be 51% US owned and chaired by an US passport holder, said the vendors and Winnie Wang, executive chairman of the Shenzhen Cross Border E-Commerce Association, China’s largest sellers group based in the manufacturing hub.

Many Chinese sellers had used US entities to be recognized as US merchants on the platform but the rules mean they will need to be re-registered as overseas sellers, which they say receive less prominence and support, putting them at a disadvantage compared to US TikTok sellers.

TikTok, used by about 170 million Americans, has been seeking to strike the right balance between pursuing rapid growth and managing regulatory risks.

It has been ramping up its rhetoric that a US move to ban the platform would take billions of dollars out of the pockets of creators and small businesses, while simultaneously seeking to catch up to bigger rivals such as Shein and PDD Holdings-owned Temu by signing up more merchants.

A TikTok spokesperson said the company has clear policies and requirements for all sellers on its shop, including for international sellers, and these have not changed since TikTok Shop was introduced in the US in September 2023.

“TikTok maintains robust policies to protect customers and promote a trustworthy shopping environment, and we continually strengthen how we enforce our rules,” the spokesperson said, without commenting specifically on whether international sellers get less prominence.

The Chinese vendors said they feel targeted by TikTok’s rules and some are thinking about reducing the resources they put into pushing sales on the platform or finding US partners.

“We’re rethinking how much of our time and resources we put into this,” said Shenzhen-based e-commerce seller Jackie Bai.

He and another seller said that in comparison, Amazon does not differentiate between US and other sellers on its platform, with all having access to its “seller central” and competing equally.

Amazon did not respond to a request for comment.

Mr. Bai and two other China-based sellers said they heard from TikTok Shop representatives that the tightening of the rules was in response to the political sensitivities TikTok faces in the U.S. in an election year. TikTok declined to comment.

US officials have criticized the app’s security and privacy, suggesting user data might be shared with Beijing, but TikTok has said the firm has never shared, or received a request to share, US user data with the Chinese government.

 

AMAZON ALTERNATIVE

Chinese vendors selling products from beauty to clothing to housewares have rapidly grown their presence on ByteDance-owned TikTok’s shopping platform in the months since its US launch.

“Almost every single consumer tech company I know based in China, and every Chinese consumer tech client we serve, is selling on TikTok, and those who are not selling are considering how and when to begin selling on TikTok,” said Chris Pereira, CEO of business consulting group Impact.

TikTok’s US shop posted a gross merchandise value of $1.67 billion from its opening in September 2023 to the year’s end, according to an estimate from data provider YipitData.

TikTok said it does not disclose sales and did not reply to queries about the accuracy of YipitData’s estimates.

Sellers said they had sought an alternative channel to the dominant e-commerce giant Amazon and were also drawn by subsidies on delivery costs.

Some 50% of sellers on the Amazon marketplace are Chinese, with most concentrated in Shenzhen, said Wang.

These vendors, typically small businesses, submit applications to create “digital storefronts” and pay fees to the platforms for servicing their accounts and for advertising and delivering their products.

Mr. Bai opened a US TikTok shop largely selling undergarments in October and the platform was already generating 20% of his revenues by the end of February, he said.

He did not want to name his business or products citing fear of retaliation from the platform, but said his TikTok store had thrived after he hired US actors to promote his products.

Mr. Bai said that a TikTok sales representative told him this month he would have to close his US-based entity and re-register as an overseas seller because he is a Chinese citizen.

Mr. Bai is now reconsidering his strategy and is looking for local partners as he believes this would disadvantage him against rival sellers.

“TikTok’s shop is so new, the internal rules are changing every week, and these are particularly strict,” he said.

WTO says Australian duties on Chinese steel products were flawed

A logo is pictured outside the World Trade Organization (WTO) in Geneva, Switzerland, Sept. 28, 2021. — REUTERS/DENIS BALIBOUSE

BERLIN/SYDNEY – A World Trade Organization (WTO) panel has found that duties imposed by Australia in a steel products dispute with China were flawed – a ruling that Canberra said it accepted.

China launched the complaint in June 2021 – during a period of intense bilateral political and trade tensions – over anti-dumping and anti-subsidy measures on railway wheels, wind towers and stainless steel sinks.

In all three categories, the WTO said Australia’s investigating authority, the Anti-Dumping Commission (ADC), had acted inconsistently with some articles of its rules.

Australian Trade Minister Don Farrell said in a statement that the panel had found some technical issues with how the duties were calculated.

“Australia will engage with China and take steps to implement the panel’s findings,” Farrell said.

“The report does not diminish the integrity of Australia’s trade remedies system. Our system is evidence-based and non-discriminatory and will continue to respond effectively to unfair trade practices.”

China called WTO’s ruling objective, fair and unambiguous, and urged Australia to rectify what it called “violations” by removing the disputed tariffs.

Canberra had imposed duties totaling 10.9% on Chinese wind towers, 17.4% on railway wheels and up to 60.2% on stainless steel sinks.

Australia and China, its largest trading partner, are rebuilding ties after a period of strained relations which hit a low in 2020 after Canberra called for an independent investigation into the origin of COVID-19.

Other trade spats including one over high Chinese tariffs on Australian barley have been resolved.

China will complete a review into tariffs on Australian wine by the end of March and it is also reviewing curbs on lobster imports, Farrell said this month. – Reuters

Social media influencers are India’s new election campaigners

Social media logos are seen in this illustration taken on May 25, 2021. — REUTERS/DADO RUVIC/ILLUSTRATION

BENGALURU, India (Thomson Reuters Foundation) – Indian social media influencer Chandni Bhagat has been creating devotional videos on Instagram for three years – now she’s mixing politics with her daily dose of religion.

Bhagat is one of thousands of social media influencers mobilized by political parties in the runup to elections with the aim of wooing a young and ever-online India.

Last year, 18-year-old Bhagat – who has more than 200,000 Instagram followers – was among 100+ content creators in the central Indian city of Indore invited to meet workers from the ruling Bharatiya Janata Party (BJP).

Since then, her Instagram grid – dominated by the Hindu Lord Shiva – was punctuated with at least five posts promoting the BJP, one backing its regional women’s health scheme, another showing a smiling selfie with a former minister from the party.

“I attempt to talk about things that will benefit my audience,” said Bhagat.

India has more than 800 million internet users and the world’s largest take-up of Instagram and YouTube, so courting top influencers to wave party political flags makes sense.

Prime Minister Narendra Modi’s BJP has since last year reached out to several hundred social media influencers, all of whom have clout on either Instagram or YouTube.

Some boast millions of followers, others mere thousands.

They are offered ministerial interviews – bypassing the more critical mainstream media – along with photo ops and themed posts spreading Mr. Modi’s message.

The campaign culminates in general elections this April and May, with travel, food, religious and tech content creators among the myriad of influencers tapped for their reach.

“Last year we had influencer meets across segments where we told them about the party’s policies, the implementation, the achievements by the government in nine years and requested them to recreate and reshare their own experiences,” Devang Dave, part of the BJP’s election team, told the Thomson Reuters Foundation.

“It gives a lot more credibility if it comes as a third- party voice.”

 

ALL PARTIES PARTAKE

Nor is the BJP alone in this strategy.

Vaibhav Walia, who runs social media communications for the main opposition Indian National Congress party, told Context his party actively courts influencers to leverage their popularity.

“We try to reach out to like-minded people and many of them have been posting for us,” said Walia.

“(Even) if (the content) is not directly Congress (related), they are voicing opinions which are aligned to our political ideology and stand.”

Late last year, the Aam Aadmi Party in Punjab tried to enlist influencers to promote their initiatives.

At the same time, the Bharat Rashtra Samithi in the southern Indian state of Telangana hired some 250 influencers to promote their cause in state elections.

Yet the strategy raises concerns, too, given India’s growing problem of online misinformation and all the risk that fake news poses to the world’s biggest democracy

Transparency is also a worry, say researchers.

“We don’t know if there’s a monetary exchange or the expectation of a quid pro quo of some kind — which blurs the lines and bring in the fuzziness,” said Prateek Waghre, an executive director at the Internet Freedom Foundation.

 

THE EVOLUTION OF INFLUENCE

The idea of Indian influencer-based campaigning dates back three or four years to farm protests in New Delhi, when online posts amplified the demos, according to political consultants.

“Influencers and local YouTube news channels had a huge role to play in helping propagate the message,” said Ankit Lal, founder of a political consultancy called Politique Advisors.

“That is something that caught the BJP’s eye. They needed to reach out to a newer and younger audience and utilize the already-established influencers.”

India has more than 20 million voters aged 18-29, and millions more go online to watch influencers promote and interview politicians of all parties.

These posts “serve to humanize the politicians” even though they “may well be direct propaganda”, said Joyojeet Pal, a professor at the University of Michigan.

 

HYPER-LOCAL

Samyak Jain posts travel content to some 110,000 followers on Instagram and has been to four BJP influencer meetings.

“It’s a general interaction where we are told what all to do,” said Jain, 22. “They tell us what work the party has been doing, the work they plan to do – their journey.”

Jain is among several hundred regional influencers tapped by the BJP for their hyper-local reach.

If, say, a new road were to be built near an influencer’s home, the party asks them to talk about how the change has made their life better, BJP’s Dave said.

“It’s not about the party giving them something to post,” he said. “It’s about going to the public and talking about …why the Modi government should come back if they want the development trend to continue.”

Social media consultants believe local is key, since influencers can build one-on-one trust with their audience.

“Elections in India are won at a grassroot level and these influencers are known very well (in those regions),” said Kumar Saurav, founder of Savin Communication, a PR agency.

Posting on behalf of a politician can make money, too, according to one content creator who said they were asked by several opposition parties to create anti-BJP content ahead of regional elections in Madhya Pradesh last year.

“Many politicians are active on social media but they don’t have followers,” said the creator, who was tasked with making posts critical of ruling party policies.

“They asked to not mention it’s a paid or sponsored post.”

The creator, who did not wish to be named, said they had made five such posts, earning about $180 for each.

With campaigning now set to ramp up, the parties say they are ready to launch into online action.

“Once the candidates are declared, we will reach out (to influencers) at the micro level across all constituencies so that they also understand how this particular candidate will be good for their constituency,” said the BJP’s Dave.

“It’s about showing how Modi ji has been leading all these changes across all states and the entire country.” – Reuters

Protecting Palestinians a moral imperative, Pentagon chief tells Israeli counterpart

THE PENTAGON is seen from the air in Washington, US, March 3. — REUTERS

WASHINGTON – US Defense Secretary Lloyd Austin said on Tuesday it was a moral and strategic imperative to protect Palestinian civilians in the war between Israel and Hamas and that the humanitarian catastrophe in besieged Gaza was getting worse.

Austin was speaking during a meeting with Israel Defense Minister Yoav Gallant at the Pentagon as relations between U.S. President Joe Biden and Israeli Prime Minister Benjamin Netanyahu sank to a wartime low.

“In Gaza today, the number of civilian casualties is far too high and the amount of humanitarian aid is far too low,” Austin said, sitting across from Mr. Gallant, a key architect of the military campaign against Hamas in response to the militants’ Oct. 7 cross-border rampage that Israel says killed 1,200 people.

“Gaza is suffering a humanitarian catastrophe and the situation is getting even worse,” Mr. Austin said, using some of his most forceful language so far.

The Pentagon later said Mr. Austin’s discussion with Mr. Gallant was frank and direct.

The Israeli defense minister also met for a second day with US national security adviser Jake Sullivan, who told Gallant that Israel needs to increase the flow of humanitarian aid to Gaza, White House spokesperson Karine Jean-Pierre said.

Mr. Gallant later held talks with CIA Director William Burns, recently returned from talks in Qatar seeking an elusive deal for Hamas’ release of more than 130 hostages still held in Gaza.

Speaking to reporters, Mr. Gallant, apparently seeking to cool US-Israeli tensions, said he stressed the importance of US ties to his country’s security and of maintaining Israel’s qualitative military edge in the region, including its air capabilities.

“We share 100% of the values and 99% of the interests with the United States,” Mr. Gallant said.

Mr. Biden has come under pressure from human right groups and some fellow Democrats to condition further military aid on Netanyahu holding off on a threatened offensive in the southern Gaza city of Rafah, where more than a million Palestinians are sheltering. The US president has resisted doing so.

 

FEARS OF FAMINE

Israel has launched strikes and shelling in Gaza that have killed more than 32,000 Palestinians, according to the health authorities in the Hamas-run enclave.

“We need immediate increases in assistance to avert famine,” Mr. Austin said.

A senior US defense official, speaking on the condition of anonymity, said more aid was now flowing through land crossings and that about 200 trucks were crossing into Gaza daily.

Mr. Gallant’s meeting with Mr. Austin took place after Netanyahu on Monday canceled a separate visit to Washington by two senior aides due to hear US ideas about operational alternatives in Rafah.

Netanyahu’s fraught relations with Mr. Biden became even more strained over Washington’s decision not to veto a U.N. Security Council resolution seeking an immediate ceasefire in Gaza. The United States has been working to get Netanyahu to consider other options instead of a ground invasion of Rafah, the last relatively safe haven for Palestinian civilians.

Austin said he was ready to discuss alternate approaches to targeting Hamas militants there.

The senior defense official said Austin discussed potential steps like Israel’s precision targeting of Hamas fighters in the southern city on Gaza’s border with Egypt.

The threat of such an offensive has increased differences between close allies the United States and Israel, and raised questions about whether the US might restrict military aid if Netanyahu defies Mr. Biden and presses ahead anyway.

Mr. Gallant emphasized that while he had discussed humanitarian aid, he had also made clear Israel’s plan to go ahead with efforts to destroy Hamas, saying it was necessary to deter “common enemies,” an apparent reference to Iran. Hamas, he said, still has five battalions operating in Rafah.

Mr. Austin said the security bond between Israel and the United States was “unshakeable”. “The United States is Israel’s closest friend and that won’t change,” he added. – Reuters

Brazil, France launch $1.1 bln program to protect Amazon rainforest

REUTERS

BELEM, Brazil – Brazil and France on Tuesday launched an investment program to protect the Brazilian and Guyanese Amazon rainforest involving 1 billion euros ($1.1 billion) in private and public funds over the next four years.

The announcement was made during French President Emmanuel Macron’s three-day visit to the South American country, where he landed on Tuesday in Belem, near the mouth of the Amazon, and was met by Brazil’s President Luiz Inacio Lula da Silva.

“Gathered in Belem, in the heart of the Amazon, we, Brazil and France, Amazonian countries, have decided to join forces to promote an international roadmap for protection of tropical forests,” they said in a joint statement.

Their pledge to work together to stop deforestation in the Amazon by 2030 to contribute to slowing global warming comes two years before Brazil hosts the COP30 climate negotiations talks in Belen in 2025.

“The presidents expressed their commitment to the conservation, restoration and sustainable management of the world’s tropical forests and agreed to work on an ambitious agenda, including … developing innovative financial instruments, market mechanisms and payments for environmental services,” the statement said.

Macron and Lula took a river boat to visit a sustainable development project for producing chocolate on an island near Belem, and met with Indigenous leaders.

At the event, Macron honored Indigenous leader and environmental campaigner Raoni Metuktire, of the Kayapo people, with the National Order of the Legion of Honor, France’s highest order of merit, for his fight to protect the rainforest and Indigenous rights.

Chief Raoni, who became a global reference for campaigning in the 1980s with musician Sting at his side, handed Macron documents denouncing the environmental impact that a planned railway backed by soy farmers will have on Indigenous people, whom he said have not been freely consulted.

Mr. Raoni asked Lula not to approve building the 1,000-km (620-mile) railroad known as Ferrograo that would lower agribusiness costs for shipping grains from Mato Grosso farm state to Amazon river ports and out to international markets.

Despite past run-ins over the environment, relations between France and Brazil have recovered from a low point in 2019 when Macron led a wave of international pressure on then-President Jair Bolsonaro over fires raging in the Amazon. Mr. Bolsonaro accused Mr. Macron and other G7 countries of treating Brazil like “a colony”.

“After a four-year eclipse and a virtual freeze in political relations between our two countries during Mr. Bolsonaro’s presidency, we are in the process of relaunching the bilateral relationship and the strategic partnership with Brazil,” a French presidential adviser said on Friday. – Reuters

More handshakes, fewer rallies as Biden 2024 campaign takes shape

U.S. President Joe Biden holds a campaign rally ahead of the state’s Democratic presidential primary, in Las Vegas, Nevada, U.S. Feb. 4, 2024. — REUTERS

WASHINGTON – US President Joe Biden is criss-crossing the country as his reelection campaign kicks into high gear, skipping big, loud rallies favored by his rival Donald Trump in favor of shaking hands at union halls, churches and restaurants.

It is an unusual approach that plays to Biden’s strengths amid an increasingly fragmented US media landscape, allies and many analysts say. Mr. Biden interacts with smaller groups, limiting highly-scrutinized teleprompter assisted events that sometimes lead to gaffes, while keeping at bay protesters angry about his handling of the Israel-Gaza war.

Mr. Biden’s meetings with ordinary Americans are being turned into polished campaign videos and first-person TikTok posts viewed by millions, that often draw sharp contrasts with Trump’s interactions with the public.

Mr. Biden, no stranger to big audiences, won praise for his fiery State of the Union speech on March 7 and is gearing up for another large event on Thursday, a rally with former Presidents Bill Clinton and Barack Obama that is expected to draw 6,000.

He has visited nine states since the March 7 speech, including battlegrounds Nevada and Arizona last week and Michigan and Wisconsin the week before. Most of the time, he has spoken to crowds of 100 people or fewer.

The campaign is betting its patchwork approach, of pricey targeted ads, small events that generate local media coverage, radio spots and surrogate appearances – all amplified by social media will help galvanize Democrats and independents needed to re-elect Biden.

“Mr. Biden has never been Cicero and never will be,” said Larry Sabato, who heads the University of Virginia’s Center for Politics, referring to the Roman statesman known for his oratory skills. He “depends more on what he has done and is doing to reach his supporters,” he said.

Campaign officials see the dawn of a post-COVID era of campaigning, but David Barker, a professor at American University in Washington, isn’t so sure. “If Obama were the candidate, you’d see a lot of big rallies.”

Mr. Barker said relying on digital media to pull in the crowds could exclude some older voters who don’t use social media and rely more on TV broadcasts. But he said the pool of persuadable voters was small – not more than 5-7% of voters – fewer than half of them could be influenced by media coverage anyway.

 

EVERY BATTLEGROUND STATE

With a slim 1 percentage point lead in the latest Reuters/Ipsos poll of registered voters, Mr. Biden needs to highlight stark differences with Mr. Trump, strategists and donors say, and build enthusiasm among the fractious coalition of Black voters, suburban women and Latinos that got him elected in 2020.

Mr. Biden didn’t hold big rallies in 2020 either because of COVID-19, while Trump hosted events with thousands of attendees.

Republicans mocked him for campaigning from his “basement,” but Biden won the popular vote by seven million and every battleground state, most by a very thin margin.

Campaign staff say they learned then that Mr. Biden could hop on a Zoom call with 5,000 supporters and still have a big impact.

Small events with carefully vetted participants also allow the campaign to avoid protests that have haunted Mr. Biden for months over his support of Israel’s assault on Gaza that has killed more than 32,000 and now threatens famine. Israel is reacting to the Oct. 7 attacks by Hamas that killed 1,200.

In November a rabbi interrupted Biden at a fundraiser in Minnesota, urging him to call for a “ceasefire right now.” In January, a Biden event in Virginia was repeatedly interrupted by shouts of “Ceasefire now” and “Genocide Joe.”

In Dallas this month, protesters blew whistles and chanted “free Palestine” starting at 5:00 a.m., rousing hotel guests where Biden was staying. In North Caroline on Tuesday, they interrupted his remarks.

Campaign officials insist the protests are not dictating strategy, but the White House has stopped providing exact locations until just before Biden’s events, making it difficult for demonstrators to assemble big crowds.

 

ADVICE ON A STUTTER

Online, Mr. Biden’s campaign is focused on posts that highlight him displaying empathy, doling out advice and sharing fast food meals with families.

A video of his meeting with nine-year-old Harry Abramson, a boy with a stutter who had asked Mr. Biden how he overcame his own, has been viewed 1.2 million times on TikTok and generated over 280,000 likes on Instagram.

“He has that human connection with people and that’s different from Trump’s mega rallies and giant, roaring, menacing chants,” said Wisconsin Democratic Party chief Ben Wikler.

Trump’s incendiary rhetoric helps him dominate the news cycle, experts say, like a March 16 stop outside Dayton, Ohio, where he warned of a “bloodbath” if he loses in November.

The supporters who attend his rallies reflect the Republican Party’s transformation in recent years: many are working-class voters who say they are in lockstep with Trump on issues ranging from immigration to trade and foreign policy.

Trump focused heavily on early nominating states until he secured his party’s nomination, hosting rallies attended by hundreds or thousands of supporters. In early April, he is due to hold a rally in Wisconsin, a key battleground state.

Trump press secretary Karoline Leavitt said Trump was greeted by “crowds of enthusiastic Americans everywhere he goes.” – Reuters

Driving Filipinos to more income opportunities

From left: Mishie de la Cruz, Head of Affiliates, with Charina Tengco, winner of the LazAffiliates All Out Raffle Promo

Lazada Affiliates Program empowers more partners, including winner of exclusive car giveaway

In appreciation of its top-performing affiliate partners, Lazada Philippines surprised them last year with a special treat via an exclusive raffle promo to celebrate the 12.12 All-Out Sale.

The LazAffiliates Program is Lazada’s way of opening doors for Filipinos looking for additional means of earning a living. Through LazAffiliates, anyone can sign up to become an affiliate and generate income by promoting Lazada products through social media platforms and personal networks.

“The LazAffiliates are at the heart of our community. This program is a great opportunity for all of you to earn creative income and we’re growing our program to support you every step of the way. With LazAffiliates: More content, more kita (earnings), more life,” Mishie de la Cruz, Head of Affiliates at Lazada Philippines, said at a thanksgiving event last November. 

“Being a LazAffiliates member is a blessing,” shared Charina Mae Tengco, the grand prize winner of last year’s LazAffiliates raffle. In 2022, she and her family faced financial difficulties, prompting her to consider returning to work in 2023. To provide for her family needs, she explored various jobs, including being a virtual assistant (VA), but eventually discovered LazAffiliates, which she now considers a stepping stone to her success.

While being an affiliate requires skills, time, and effort, it has become a valuable means of earning just by sharing “tipid” tips, vouchers, and affordable deals with others.

“Nung nagkaroon ako ng income, doon lumuwag ‘yung buhay namin. Ngayon po, nag-a-acquire kami ng isang bahay, ta’s nakakapag-travel. Kaya sobrang blessing ng LazAffiliates sa akin (My life has become much easier ever since I started earning my own income with LazAffiliates. Now, we can afford to acquire a new house, and we can travel more freely. That’s why being an affiliate is truly a blessing.),” she said.

Another perk of being an active LazAffiliates member is the chance to enter exclusive raffles, which Ms. Tengco had never expected to benefit from.

Yet, finding out that she was the winner of a brand-new car was a one-of-a-kind experience for her.

“Nagkakagulo na sa GC (group chat) namin, basta ako busy ako. Tapos, nag-u-update na lang sa GC namin. Pagbalik ko, tapos na yung raffle, nag-send na lahat ng member ID. Pumunta ako sa Lazada, ta’s, ‘Member ID ko to,’ sabi ko. Scrineenshot ko muna ta’s sinend ko sa GC. Ta’s sinabi ko, ‘Ako ba to?’. Sabi nila, ‘Oo. Congratulations Cha, ikaw yan.’ Doon na ako tumili. Doon na nag-sink in sa akin. (My close-knit LazAffiliates friend group kept me in the loop about the raffle that day through our GC, since I was so busy. Later that day, the raffle was already finished; yet, to my surprise, while browsing Lazada, I came across the winner’s ID, realizing it was mine. I immediately shared the screenshot on our GC, then my friends confirmed it was mine and congratulated me. I joyfully shouted as it finally sank in that I was the winner of the grand raffle.)”

Although owning a car was not an immediate priority for her, it was a long-term goal to achieve in five to 10 years. Thanks to their brand-new car, their family’s daily commute is easier, and they get to embark on exciting adventures.

To further express its gratitude towards brands, sellers, and customers, Lazada continues to offer the best online shopping experience by bringing amazing deals on top brands and premium products through promotions like the Bonggang Birthday Pasabog.

Don’t miss out on the chance to shop at Lazada’s Bonggang Birthday Sale until March 27, and get the P1,000 vouchers, enjoy 70% discounts, and free shipping on all purchases.

Visit lazada.com.ph to learn more about joining the LazAffiliates Program.

 

Spotlight is BusinessWorld’s sponsored section that allows advertisers to amplify their brand and connect with BusinessWorld’s audience by publishing their stories on the BusinessWorld Web site. For more information, send an email to online@bworldonline.com.

Join us on Viber at https://bit.ly/3hv6bLA to get more updates and subscribe to BusinessWorld’s titles and get exclusive content through www.bworld-x.com.

PHL, Japan ink P93-B loan deals

Flags of Japan are seen in Rizal Park. — PHILIPPINE STAR/EDD GUMBAN

THE PHILIPPINES and the Japan International Cooperation Agency (JICA) on Tuesday signed two loan agreements worth a total of ¥250 billion (around P93 billion) for the ongoing construction of the Metro Manila Subway and a road project that would include the longest tunnel in the country.

Finance Secretary Ralph G. Recto and JICA Philippines Chief Representative Takema Sakamoto on Tuesday signed two official development assistance (ODA) loan deals for the Dalton Pass East Alignment Road Project and the Metro Manila Subway Project (Phase 1), which are part of the Marcos administration’s infrastructure flagship projects.

The ¥100-billion loan agreement covers the first tranche for the Dalton Pass East Alignment Road Project that will connect San Jose City, Nueva Ecija to Aritao, Nueva Vizcaya.

According to JICA, the project aims to construct an alternative road bypassing the existing Dalton Pass, which is often closed due to natural calamities. It will involve the use of advanced Japanese technologies for the construction of a mountain tunnel and bridges.

“The Dalton Pass East Alignment Road Project, which includes the longest tunnel in this country, is a game-changing initiative,” Mr. Sakamoto said.

“It can improve regional connectivity and boost economic activities. The success of this project will make the difficulties and safety concerns in traversing the existing Dalton Pass a thing of the past,” he added.

The project, which is under the Department of Public Works and Highways (DPWH), is expected to be completed by March 2032.

“Regarding the Dalton Pass project, connecting roads should be constructed by DPWH in a timely manner,” Mr. Sakamoto said.

Also, the Department of Finance and JICA signed the third tranche of the loan agreement worth ¥150 billion for the first phase of the Metro Manila Subway Project, which is targeted for completion by November 2029.

“Although we are still facing various challenges, such as RoW (right-of-way acquisition), this project is already gaining a strong momentum. We cannot slow or stop its progress. In such regard, we definitely expect that this third tranche loan can accelerate the realization of this epoch-making subway line,” Mr. Sakamoto said.

The first phase of the 25.3-kilometer subway will have 17 stations from Mindanao Avenue through the Food Terminal, Inc. and end at the Ninoy Aquino International Airport Terminal 3.

The country’s first subway system is expected to ease traffic congestion and reduce air pollution emitted by vehicles in Metro Manila.

Mr. Sakamoto said the success of these two projects “can only be guaranteed by the full commitment and strong responsibility of the Philippine government.”

“Appropriate O&M (operations and maintenance) after the completion should be ensured. RoW or other challenges, such as timely and proper decision making and payment, are also to be managed well,” he said.

The loan deal for the first tranche for the Metro Manila Subway Project amounting to P38.8 billion (¥104.5 billion) was signed in 2018, while the deal for the second tranche worth P94.1 billion (¥253.3 billion) was sealed in 2022.

The loans have an annual interest rate of 0.3% for the project and 0.2% for consulting services, with a repayment period of 40 years plus a 10-year grace period. — B.M.D.Cruz

PHL poised to attract more FDIs — report

A construction worker is seen working on a new project in Taguig City. — REUTERS

THE PHILIPPINES will likely see a rise in foreign direct investments (FDIs) amid key policy reforms, trade and investment opportunities with the US and Europe, and a growing consumer base, HSBC Global Research said.

“A paltry past has led to a bearish view in FDI, but we argue otherwise — the Philippines is geared for more FDI ahead,” it said in a report dated March 25.

“All in all, thanks to the country’s robust reform narrative, FDI sentiment in the Philippines is bound to improve in the years ahead and the general pessimism regarding the country’s FDI competitiveness ought to turn for the better,” it said.

Latest data from the central bank showed that net FDI inflows declined by 6.6% to $8.9 billion last year from $9.5 billion in 2022.

This marked the second straight year that FDI net inflows have been on a decline. However, it exceeded the Bangko Sentral ng Pilipinas’ (BSP) projection of $8 billion for the full year.

The BSP expects FDI net inflows to reach $10 billion by end-2024.

“FDI inflows may not be as robust as say, Malaysia and Vietnam, but they are a sizeable improvement from the sluggish inflows seen in the 1990s and the early 2000s. This, we believe, should be enough evidence to show that the country’s reputation of attracting FDI is, indeed, turning for the better,” HSBC said.

Data from HSBC showed that the Philippines’ FDI inflows relative to gross domestic product (GDP) stands at the “middle of the pack” among its Association of Southeast Asian Nations (ASEAN) neighbors.

HSBC attributed the improvement in the country’s business climate to “a series of bold and game-changing reforms,” such as Ease of Doing Business Act, the Corporate Recovery and Tax Incentives for Enterprises (CREATE) law, the Foreign Investment Act, the Public Service Act, and the Retail Trade Liberalization Act, among others.

“(These) reforms have immediately paid dividends, gearing the economy for more FDI ahead. A good indicator for investment interest is FDI approvals,” it added.

Data from HSBC showed that FDI approvals stood at P889 billion last year or 3.7% of GDP.

“Nonetheless, we should give credit where credit is due, and these big-ticket reforms, though nascent, signal to the world that the business climate in the Philippines is moving in the right direction,” it added.

Meanwhile, HSBC noted improved relations and recent trade and investment opportunities with Europe and the United States.

This month, the European Union and the Philippines announced the resumption of its free trade agreement negotiations, seven years after the talks were stalled.

HSBC also noted the recent visit by US Commerce Secretary Gina M. Raimondo, during which US companies announced over $1 billion worth of investments in the Philippines. 

HSBC also highlighted the country’s growing consumer base. “Being one of the fastest growing ASEAN economies and with a median age of as young as 25 years old, the Philippines’ growing middle class and demographic dividend are here to stay,” it added.

However, HSBC cited risks to the FDI outlook, such as continued regulatory bottlenecks and high cost of electricity.

“Although the country’s outlook for FDI is far more robust today than in the past decade, the reality is that the Philippines is still mired by a myriad of structural and institutional challenges, enough to make some investors look elsewhere in ASEAN.”

To address these concerns, the government should focus on implementing measures to cut red tape, ramp up investments in renewable and alternative energy, utilizing the potential of fintech and digital retailing, among others.

HSBC noted the opportunity in renewable energy, which was opened up to full foreign ownership in 2022.

“FDI approvals under ‘electricity and other utilities’ in 2023 more than doubled the total investments approved under this category over the past 10 years. That’s 10 years of work done in one. As a result, renewable energy investments now account for 86% of the total FDI approvals,” it added. — Luisa Maria Jacinta C. Jocson

Philippine waste pickers may be missing piece in EPR enigma

A waste picker carries bags of trash out of his junk shop in Quezon City, Metro Manila, Philippines, July 7, 2020. — REUTERS

By Sheldeen Joy Talavera, Reporter

APOLINARIO O. GERONIMO’S otherwise soft voice blares through the megaphone as he combs the streets of Tondo, Manila on his sidecar trying to collect scrap TVs and electric fans from residents.

“I disassemble broken appliances and sell the copper wire and other metals to a nearby scrapyard,” the 66-year-old widower and father of 14, who’s been making money from trash since 2000, said by telephone in Filipino. “Sometimes, I fix and sell them for cheap.”

Mr. Geronimo is already a step ahead of the average waste picker in the Philippines who, according to the International Alliance of Waste Pickers (IAWP), earns P70 ($1.26) to P100 a day.

The Philippines generates 61,000 metric tons of solid waste daily, as much as a quarter of which is plastic, according to the Department of Environment and Natural Resources (DENR).

The informal waste sector also includes waste pickers at dumpsites and communal waste collection points who help recycle trash in a country where solid waste management is rarely enforced among households.

Informal waste pickers collect a staggering 60% of the world’s plastics destined for recycling, according to the IAWP.

Environment Secretary Maria Antonia Yulo-Loyzaga has said she wants to integrate the informal waste sector into the extended producer responsibility (EPR) system.

The EPR Act, which lapsed into law in 2022, requires big companies with assets worth more than P100 million to be environmentally responsible throughout the life cycle of a product, especially its post-consumer or end-of-life stage.

Under the law, these companies must register with the National Solid Waste Management Commission their EPR programs to reduce or recover for reuse or recycling the plastic packaging waste that they release to the local market.

Plastic packaging covered by the law includes sachets, labels, laminates and other flexible plastic packaging products; rigid plastics used for beverages, food, home, personal care and cosmetic products and their caps, cutlery, plates and drinking straws; plastic bags; and polystyrene.

DENR data showed that as of October 2023, 745 enterprises had submitted their EPR programs, fewer than the 4,000 expected.

“The EPR law presents an opportunity for the informal waste sector to be formally included into the circular economy value chain,” the DENR’s Environmental Management Bureau (EMB) said in a Viber message.

Elizabeth dela Torre Ampuyas, 68, who has been a registered member of Canadian social enterprise Plastic Bank since 2019, earns P85 daily by collecting plastic bottles, for which she also gets grocery vouchers and school supplies.

“The vouchers from Plastic Bank are a big help,” she said by telephone in Filipino. “I can also help save the environment by picking up trash.”

Plastic Bank builds recycling ecosystems in underdeveloped communities to fight plastic pollution in oceans and help cut poverty in developing countries.

The for-profit social enterprise partners with companies that buy “social plastics” and repurpose these into another material, Camille Nuñez, marketing manager at Plastic Bank, said in a text message.

“The problem of plastic is systemic,” she said. “The government has been doing its best to provide solutions to the problem. However, it all goes down to how things are implemented. If people understand how valuable plastics are, they will treat plastics as a resource, not as a waste.”

The informal waste sector is often overlooked and doesn’t get enough credit for its contribution to solid waste management, according to Marian Frances T. Ledesma, zero-waste campaigner at Greenpeace Southeast Asia-Philippines.

“The government should recognize the work of the informal waste sector by documenting their roles in the community and making their work official under the law — either as self-employed individuals or as part of a group,” she said in an e-mailed reply to questions.

RECOGNITION
Integrating the informal waste sector into a city’s solid waste management strategies is imperative, according to the United Nations Development Programme (UNDP).

“Despite their significant contributions to waste segregation and recycling, informal waste workers often grapple with challenges such as a lack of formal recognition, discrimination, hazardous working conditions, low income and limited support for livelihood opportunities,” Cheska Peralta, communications analyst for the Accelerating NDC through Circular Economy in Cities (ACE) project, wrote in a blog posted on the UNDP website in December. Ms. Ledesma said waste pickers shouldn’t be boxed into just waste management. “They should be given the opportunity to learn or be trained to lead or participate in sustainable business models,” she added. 

She said waste workers might want to work in emerging companies that produce little to no waste, such as those that deal with reverse logistics for reuse systems or startups built on reuse concepts.

Michael Anthony Santos, EPR project manager at the World Wide Fund for Nature (WWF) Philippines, said local governments should start recognizing informal waste workers by giving them IDs.

“If waste workers have IDs, they will be recognized as waste collectors,” he said via Zoom. “The first step in formalizing them is by employing them as barangay waste collectors.”

“It starts with the recognition that they need our help so… the least that local governments can do is to provide them with IDs,” he added.

If done fairly and in consultation with waste workers, integrating the informal waste sector into the EPR law would let them fully participate in the circular economy, Ms. Ledesma said.

The Environment department is encouraging big enterprises to work with cities in integrating the informal waste sector into their extended producer responsibility programs.

“The EPR law may be new, and challenges may arise initially, but as we adapt and learn, the potential to reap the benefits of a circular economy becomes increasingly tangible,” the EMB said.

Mr. Geronimo, the trash collector from Tondo, gets more than a kilo of scrap metal from the broken appliances that he buys from households.

“I earn P500 to P700 a day,” he said. “Sometimes, it’s not enough given spiraling prices, but it’s better than nothing.”

IBPAP hoping to unlock new markets through EU-PHL FTA

REUTERS

A FREE TRADE AGREEMENT (FTA) between the Philippines and the European Union (EU) is expected to help unlock new markets for the information technology and business process management (IT-BPM) sector, an industry executive said.

IT and Business Process Association of the Philippines (IBPAP) President and Chief Executive Officer Jack Madrid said that the Philippine IT-BPM sector continues to cater mostly to North American clients, noting the need to expand into other markets.

“Free trade is always a good idea. (Our market in Europe) is growing, but I would like it to be bigger. We’re still dominated by North America,” he said in a chance interview on March 19.

The Philippines and EU earlier this month formally resumed FTA negotiations, seven years after it was stalled due to concerns over the human rights record of then President Rodrigo R. Duterte.

Mr. Madrid said there is a need to promote the Philippines “a little bit more” in Europe, so they can be aware of the “special talent of the Filipino workforce.”

He was part of the business delegation that accompanied President Ferdinand R. Marcos, Jr. on his working visit to Germany and state visit to the Czech Republic earlier this month.

“There are a number of German companies that have been doing good business here for many, many years, but (the) Czech (market) is something we want to eventually capture. It’s a country with a low population, so I think we can identify what verticals we can help them with,” Mr. Madrid said.

IBPAP and the Confederation of Industry of the Czech Republic signed on March 15 a memorandum of understanding (MoU) during a business forum in Prague.

“We hope to identify mutual investors with each other, and we also talked about sharing best practices,” he said.

The Department of Trade and Industry (DTI) previously said that the two groups will cooperate on trade and investment promotion, as well as exchange information on policies, talent development and artificial intelligence implementation.

In a separate interview, the Philippine Economic Zone Authority (PEZA) said that the EU-Philippines FTA will help make the Philippines more attractive as an outsourcing hub for European companies.

“As one of the investment promotion agencies in the country, this will likewise be instrumental in PEZA’s quest towards positioning the Philippines as the ideal base for off-shore operations by EU companies eyeing to penetrate the much more vibrant ASEAN (Association of Southeast Asian Nations) and Asia-Pacific markets,” it said.

Meanwhile, Philippine Chamber of Commerce and Industry President Enunina V. Mangio told BusinessWorld that the FTA should expand opportunities for the Philippines, “especially in services such as business process outsourcing, knowledge process outsourcing, digital commerce, and agritechnology.”

Ms. Mangio said the issues that stalled FTA negotiations in 2017 are still a concern for the EU, such as intellectual property rights and data exclusivity.

“The EU must be realistic in its expectations of the Philippines. And our negotiators, while being able to leverage on our comparative advantages for an EU-Philippines partnership, must ensure that the conditionalities imposed by the EU are justifiable under our level of development,” she added.

Sought for comment, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said that the FTA would help the IT-BPM sector expand its client base.

“This would further expand and diversify more outsourcing clients and present opportunities for the Philippines to include more EU global companies that may wish to outsource in the country to realize more cost savings and become more competitive,” he said.

“So, there is still great potential to tap European global companies to outsource in the Philippines, with or without the FTA,” he added.

However, IBPAP’s Mr. Madrid said that the country needs to address the talent supply shortage to meet the sector’s demand for skilled workers.

“We don’t have a demand problem; we have a talent supply challenge. And the reason for that is not because of the numbers, it’s the matching of skills to jobs,” he said.

“The skills are becoming a little bit tougher. So, we need to exert more effort to increase our set of skills.”

The IBPAP recently signed agreements with Microsoft Corp. for digital courses specifically aimed at upskilling IT-BPM workers.

“These kinds of talent partnerships are important for IBPAP because we are increasingly seeing more interest in micro credentials than four-year courses,” he added.

He said that Microsoft is yet to identify how many IT-BPM workers will benefit from the partnership and cited that the IBPAP already has an existing partnership with LinkedIn (which is also owned by Microsoft) for upskilling. — Justine Irish D. tabile

Foreign partners, tech, simpler tax system seen to boost PHL mineral sector

By John Victor D. Ordoñez, Reporter

THE PHILIPPINES needs to prioritize securing funding support and new technology from other countries to enhance its mineral processing capacity, alongside efforts to simplify taxes for the mining sector, according to economists and industry players.

“Getting investments and processing technology from other countries should be a key consideration for the government if it wants to develop a competitive domestic mineral processing industry,” Ronald S. Recidoro, executive director of the Chamber of Mines of the Philippines (CoMP), said in a Viber message.

The Philippines is under pressure to simplify its mining tax regime to make it competitive with other countries and boost state revenue from the sector. It also seeks miners to invest in processing to increase the value of mineral exports.

Mr. Recidoro said that the government should tackle the high costs of power and logistics in the country, which continue to hinder investment in the mining sector.

“We need to find our own foreign partners that have the risk appetite, capital, and technology that can operate competitively in the country,” he said.

At a Senate hearing discussing proposals for a simplified mining tax regime, Finance Assistant Secretary Karlo Fermin S. Adriano said that streamlining the fiscal regime was the initial step in advancing the Philippine mining industry, citing the need to establish mineral processing and property valuation of ores.

Mr. Recidoro cited Indonesia’s strategy of attracting more investments from China to construct additional mineral processing plants, thereby increasing its production of minerals such as nickel.

The country currently only has five mineral processing plants: two nickel plants, two gold plants, and one copper smelter, according to CoMP Chairman Michael T. Toledo.

The lack of competitive mineral processing facilities capable of turning raw ores into precious metals results in a lower tax base, according to Albay Rep. Jose Ma. Clemente S. Salceda, who chairs the Committee on Ways and Means.

“The tax base will definitely increase if we make the investment environment attractive to quality investors who will produce much-needed mineral ores that, in turn, will ensure a steady supply to feed mineral processing facilities,” Mr. Toledo told BusinessWorld via Viber.

“Ultimately, I think the problem with mining is not the rate, but the base,” Mr. Salceda said in a Viber message, referring to Department of Finance’s (DoF) proposal to simplify the mining tax regime.

The House of Representatives approved House Bill No. 8937 in September, which proposes margin-based royalties and a windfall profit tax on large-scale miners.

The bill, one of Philippine President Ferdinand R. Marcos, Jr.’s 20 priority measures, has no Senate counterpart.

The DoF is proposing a simpler mining regime with just four windfall profit tax tiers from 10 tiers under the House bill.

Mineral processing in the Philippines might not be viable yet due to high energy costs, Bienvenido S. Oplas, Jr., founder of the free market think tank Minimal Government Thinkers, said in a Viber message.

He said Manila should explore deals on modular nuclear reactors with countries such as United States, France, and Canada, which he said could bring down power costs.

Miners and semiconductor companies are reluctant to invest in the Philippines due to expensive power costs,  US State Department Undersecretary for Economic Growth, Energy, and the Environment Jose W. Fernandez said during his visit to Manila last month.

US Secretary of Commerce Gina Raimondo has said that American companies plan to invest over a billion dollars in the Philippines, including deals on developing power and refueling stations in the country.

“Government must work on facilitating factors to enhance mineral processing capacity — infrastructure, policy, communication, business climate, power and utilities, sustainability — all at the same time to ensure that this will work to the best interests of all parties — people, planet, profits,” John Paolo R. Rivera, president and chief economist at Oikonomia Advisory & Research, Inc., said in a Viber message.

Senator Juan Edgardo M. Angara, who heads the ways and means subcommittee handling these proposals, said last week that the Senate plans to begin plenary debates on the mining fiscal regime measure in May.

Mr. Salceda said that the discussions surrounding the proposed tax rates for the mining fiscal regime are “extremely marginal” as the Philippines lacks the capacity to process raw ores domestically.

“The argument about rates is extremely marginal without the necessary regulatory capacity to verify the quality of mineral ores and the industrial capacity to process them here,” he said last week, commenting on DoF’s tax regime proposal.

Under the DoF’s proposal, miners within metallic mining operations have to pay the government 5% of the market value of the gross output, up from the 4% proposed in the House bill.

It also seeks a margin-based royalty rate of 1.5-5% in four tiers against the 1-5% with eight tiers laid out in the House proposal.

CoMP plans to seek a middle ground with the DoF on simplifying the fiscal regime without significantly increasing taxes.

Mr. Toledo said, measures to amend the tax regime should consider the local and national taxes that mining companies have to deal with, referring to the industry as overtaxed.

A simpler mining tax system would encourage the processing and production of minerals like copper and gold. Investors are hesitant to fund Philippine mining projects due to uncertainty in the current regime,  Romeo B. Bachoco, senior vice-president and chief financial officer of Philex Mining Corp. told senators during a hearing last week.

The DoF is expecting the measure to generate an average of about P10.23 billion a year between 2025 and 2028.

It also expects P5.5 billion in yearly royalties from miners within mineral reservations, P1.31 billion from royalties on miners outside mineral reservations, and P3.37 billion from windfall profit taxes. — with Kenneth Christiane L. Basilio

1...2,0252,0262,027...12,801Page 2,026 of 12,801
© 2024 BusinessWorld Publishing.
All rights reserved.
Read our privacy guidelines
Facebook Instagram Linkedin Twitter Youtube