Apple, Amazon called out for 'incorrect' Taiwan, Hong Kong references

TAIPEI/SHANGHAI (Reuters) – One of China’s top government-linked think tanks has called out Apple Inc, Amazon.com Inc and other foreign companies for not referring to Hong Kong and Taiwan as part of China in a report that provoked a stern reaction from Taipei.

FILE PHOTO: An electronic screen displays the Apple Inc. logo on the exterior of the Nasdaq Market Site following the close of the day’s trading session in New York City, New York, U.S., August 2, 2018. REUTERS/Mike Segar/File Photo

The Chinese Academy of Social Sciences (CASS) said in a report this month that 66 of the world’s 500 largest companies had used “incorrect labels” for Taiwan and 53 had errors in the way they referred to Hong Kong, according to China’s Legal Daily newspaper. It said 45 had referred to both territories incorrectly.

Beijing considers self-ruled Taiwan a wayward province of China and the former British colony of Hong Kong returned to Chinese rule in 1997 and operates as a semi-autonomous territory.

China last year ramped up pressure on foreign companies including Marriott International and Qantas for referring to Taiwan and Hong Kong as separate from China in drop down menus or other material.

The report was co-written by CASS and the Internet Development Research Institution of Peking University. An official at the Internet Development Research Institution told Reuters that it had not yet been published to the public and declined to provide a copy.

A spokesman for Taiwan President Tsai Ing-wen said Taiwan would not bow to Chinese pressure.

“As for China’s related out-of-control actions, we need to remind the international community to face this squarely and to unite efforts to reduce and contain these actions,” Alex Huang told reporters in Taipei.

Beijing has stepped up pressure on Taiwan since Tsai, from the pro-independence ruling party, took office in 2016.

That has included rising Chinese scrutiny over how companies from airlines, such as Air Canada, to retailers, such as Gap, refer to the democratic island in recent months.

Nike Inc, Siemens AG, ABB, Subaru and others were also on the list. Apple, Amazon, ABB, Siemens, Subaru and Nike did not immediately respond to Reuters’ requests for comment.

Reporting By Yimou Lee, Jess Macy Yu, Josh Horwitz; Additional Reporting by Shanghai Newsroom, Gao Liangping, Cate Cadell, Pei Li, Brenda Goh and Naomi Tajitsu in TOKYO; Editing by Paul Tait and Nick Macfie

Bracing for a Hazy Robo-Future, Ford and VW Join Forces

Sensor partnerships. Subsidiary acquisitions. Software collaborations. The autonomous driving world is about as incestous a place as Caligula’s palace, and it got a little more so today, when Ford and Volkswagen announced a formal and long-anticipated alliance.

“The alliance we are now building, starting from first formal agreement, will boost both partners’ competitiveness in an era of rapid change,” Herbert Diess, the CEO of Volkswagen, said on a call with reporters. He and Ford CEO Jim Hackett said the partnership—which is not a merger—will begin with the companies jointly developing and building medium-sized pickups and commercial vans, to debut as early as 2022. The automakers said the arrangement should “yield improved annual pre-tax operating results” by 2023. So hopefully, this makes everyone richer.

After that, well, the companies have signed a “memorandum of understanding” to collaborate on electric vehicles, autonomous vehicles, and mobility services. The shape and details of those partnerships are yet to be determined.

Diess is right about that “rapid change” bit. The automotive industry has shifted remarkably in the last decade, with new vehicle and vehicle-adjacent tech players—Tesla, Waymo, Aurora, Argo AI—injecting fresh blood (and panic) into the business of building cars. Ford and VW seem to believe that banding together will help them not only survive, but thrive.

The companies will need to do that in a world where, eventually, someday, the human driver is obsolete. The path to self-driving domination is not yet clear. What services will automotive manufacturers manage for themselves? Which technologies will they build and own? Ford and VW have spent the last few years toying with different answers to these questions, and by joining forces, each has diversified its AV portfolio. It might be evidence, as automotive writer Pete Bigelow points out, that the companies are making smart, strategic decisions about how to spend their R & D dollars in this confusing, in-between time. Or that they’re flailing. Maybe both.

Both VW and Ford already have (quasi) in-house automated vehicle software teams. VW has built up a 150-person “Autonomous Intelligent Driving” unit as part of its Audi brand, which is building a full AV software stack. (Audi itself has pledged to spend $16 billion on electric and self-driving vehicles through 2023.) And the German automaker is working on self-driving with the AV developer Aurora, which is headed up by self-driving tech veterans.

Ford has a large stake in Pittsburgh-based AV software company Argo AI, whose work is a key element of the automaker’s pledge to have a fully automated robotaxi in operation by 2021. And it has spent time and money boning up on “mobility” tech, purchasing companies like transit software-maker TransLoc, transportation cloud platform Autonomic, (recently killed) shuttle service Chariot, and scooter-share company Spin. It’s trying to figure out how best to connect customers to transportation, and what they’d like to see out of a transportation service, anyway.

It’s not clear yet how these various minglings will affect Ford and VW’s work. Argo AI is involved in the discussions between the companies, but specifics are scarce. “We’re not going to speculate on the details of the advanced discussions that are ongoing,” says Alan Hall, a spokesperson for Ford.

Khobi Brooklyn, a spokesperson for Aurora, did not say what role the company might play in the alliance. “As we continue to build relationships across the transportation ecosystem with providers of vehicles, transportation networks and fleet management operations, we are confident that we will be able to deliver the benefits of self-driving technology safely, quickly, and broadly,” she wrote in a statement. Aurora has said that it has not ruled out working with other automotive manufacturers on self-driving cars; it also has partnerships with Hyundai and EV startup Byton.

Another element of this “diversification” that should benefit both companies: They get easier access to the others’ regional strengths—and regulatory environments. VW has invested serious money in South America, Africa, and China. But despite a new plan to establish a plant in Tennessee, the German carmaker is weaker in the US, Ford’s home turf. “From Volkswagen’s perspective, it would make a lot of sense to cooperate with an American player given that the regulatory conditions for preparing the breakthrough of autonomous driving are more advanced in the US than they are in Europe,” Diess told reporters. Break out those German-English dictionaries.


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