Category: 3. Business

  • Inside the boardroom drama that is shaking up India’s Tata empire

    Inside the boardroom drama that is shaking up India’s Tata empire

    A dispute in the boardroom of Tata Trusts has shaken the Indian corporate world — and its tremors have reached Delhi.

    Tata Trusts is the philanthropic body that controls 66% of Tata Sons — the holding company of Tata Group’s 26 listed companies with a combined market cap of $368 billion.

    On Tuesday night, television channels in India broadcast footage of Noel Tata, the chairman of Tata Trusts, meeting with Home Minister Amit Shah at his residence.

    Local media reports said Finance Minister Nirmala Sitharaman, Tata Sons Chairman N Chandrasekaran, and trustees Darius Khambatta and Venu Srinivasan were also present at the meeting.

    While Tata Sons and Tata Trusts have not issued any official statement on what transpired at the minister’s residence, it is widely reported that a power struggle is brewing inside one of India’s most powerful business empires.

    Salt-to-steel conglomerate Tata Group, which also owns iconic brands including Taj Hotels, Jaguar Land Rover and Tetley Tea, is not just a business powerhouse. It also actively supports many government investment directives — its latest being an $11 billion investment in setting up India’s first semiconductor fabrication unit.

    In addition, it’s a crucial part of many of the country’s supply chains — it makes Apple iPhones in India, for example — and employs over 1 million people.

    A Tata logo in Mumbai, India.

    Bloomberg | Bloomberg | Getty Images

    So, when the Tata Trusts board meets later Friday for the first time since reports of an internal power struggle first surfaced, many investors — and the government — will hope that the boardroom battle gets resolved.

    “One hopes that the trustees see that the underlying philosophy and glide path for the Tata Trusts is to continue its charity efforts and let Tata Sons contribute financially to these efforts,” said Shriram Subramanian, founder of corporate governance research and proxy advisory firm InGovern Research Services.

    CNBC has contacted Tata Sons, Tata Trust and India’s Finance Ministry for comment but has yet to hear back.

    Trustees ‘feel their powers have been reduced’

    At the center of the current discord, according to a source, is the fact that Tata Sons is supposed to receive prior approval from Tata Trusts for any major financial investments. The source says this approval is not being sought.

    “There is a clause that says any investment Tata Sons makes above INR 100 crore ($11 million) requires the approval of Tata Trustees,” the industry source, speaking on condition of anonymity due to the sensitive nature of the topic, told CNBC. “This has not been the case for several years, and some of the Trustees feel their powers have been reduced.”

    This simmering discontent reportedly came to a head last month, when four trustees of the Tata Trust, including Mehli Mistry, opposed the reappointment of trustee Vijay Singh to the Tata Sons board.

    Tata Trusts has three seats on the board of Tata Sons.

    Following Singh’s ouster, the other two Tata Sons board members opposed Mistry’s appointment to the third seat, according to the industry source.

    “As the dominant shareholder, Tata Trusts has the right to nominate directors to Tata Sons board, where one seat currently remains vacant,” Hetal Dalal, president of Mumbai-based Institutional Investor Advisory Services India, which monitors corporate governance and ESG issues, told CNBC.

    Not the first time

    There is also concern over the extent of influence the Trust seeks to exert over Tata Sons’ capital allocation decisions, according to Dalal. “While such decisions fall squarely within the purview of Tata Sons’ board, misalignment between the board and its principal shareholder [Tata Trusts] does not bode well.”

    This is the second time in less than a decade that India’s oldest conglomerate has seen a power battle relating to the influence of Tata Trust over Tata Sons.

    The last time was when Tata Sons Chairman Cyrus Mistry was removed from his position unceremoniously in 2016, and replaced by Ratan Tata, then-chairman of Tata Trusts, to also serve as interim chairman of Tata Sons.

    Ratan Tata (C) and Cyrus Mistry (R) meet with then-Commerce and Industry Minister Anand Sharma (L) in 2011.

    Hindustan Times | Hindustan Times | Getty Images

    Days after his removal, Mistry shared a five-page letter with the media, alleging that he had become a “lame duck” chairman due to constant interference of Tata Trusts in the business decisions of Tata Sons.

    Tata Sons followed this with an equally detailed press release accusing Mistry of running the business badly and even trying to usurp control of operating companies.

    Both sides of the argument denied the other’s allegations.

    It’s now been a year since the death of Ratan Tata and three years since Cyrus Mistry died in a car crash, but the debate over the influence of Tata Trusts on Tata Sons has not been put to rest.

    “The group must establish a formal mechanism that governs information sharing, board nominations, and the Trusts’ role in influencing capital allocation,” Dalal said.

    The exit 

    Another way the issue might be resolved is if the Reserve Bank of India enforces its mandate, which requires Tata Sons to list publicly under its scale-based regulatory framework introduced in 2022.

    Tata Sons was required to list by Sept. 30, but the company has been given a temporary leeway by the central bank.

    The listing of Tata Sons will deepen the red lines between Tata Trusts and Tata Sons, the industry source told CNBC, adding that after going public, the board of Tata Sons will run the company completely and Tata Trusts will be reduced to “just a shareholder.”

    Under the current structure, the chairman of Tata Sons serves as the chairman of all Tata Group companies, while the chairman of Tata Trusts, which holds 66% stake in Tata Sons, can exercise control over the affairs of Tata Sons, including the selection of the chairman, said the source.

    “I don’t think the group wants to list Tata Sons — but they will need to find a way to provide an exit to the SP group,” said Dalal.

    The Shapoorji Pallonji Group or SP Group owns a stake of just over 18% in Tata Sons, making it its largest private investor. The group is owned by the late Cyrus Mistry’s family and chaired by his brother Shapoor Mistry.

    Ties between Shapoorji Pallonji Group and the Tatas run deep, not just business-wise but also personally.

    Mehli Mistry is the cousin of Cyrus Mistry, but supported Ratan Tata during the removal of Cyrus as the chairman of the Tata Sons board. Meanwhile, Noel Tata, the current chairman of Tata Trust, is married into the Pallonji Mistry family, which owns SP Group.

    SP Group has been seeking an exit from Tata Sons, but has been unable to due to the illiquid nature of its shares.

    “They want to sell their shareholdings in Tata Sons to clear their indebtedness,” said Ajay Rotti, founder of regulatory advisory firm Tax Compass, hinting at ongoing debt concerns at SP Group.

    Its investment in Tata Sons is sizeable and could rake in billions of dollars; finding a buyer if it were listed would be easier, due to better liquidity.

    SP Group’s exit would be a relief for Tata Sons after relations between the two companies soured over Cyrus Mistry’s abrupt dismissal.

    But Tata’s concern is that the sale of an 18% stake could leave Tata Sons vulnerable to takeover attempts, adding to their reluctance to list, Tax Compass’ Rotti said.

    According to local media reports, Tata Trusts and Tata Sons are in talks to provide a part-exit to SP Group.

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  • Google may be forced to make changes to search engine in UK

    Google may be forced to make changes to search engine in UK

    Google may have to make changes in the UK so people have more choice over which search engine they use, following a landmark decision from the regulator.

    The Competition and Markets Authority (CMA) has designated Google with “strategic market status” under a law which came into force in January.

    The decision does not mean the regulator has found wrongdoing at this stage.

    Instead, it opens the door to what it called “proportionate, targeted interventions” to ensure the market is competitive.

    Google has warned against any measures which its says might “inhibit UK innovation and growth.”

    The CMA said it expected to begin a consultation on what changes might be introduced later in 2025.

    In response to the announcement, Google has attempted to emphasise what it sees as the advantages of the regulatory status quo.

    “UK businesses and consumers have been amongst the first to benefit from Google’s innovations, often months before their European counterparts,” Google’s competition boss Oliver Bethell wrote in a blog post.

    “As a result, they see significant value: Google Search contributes billions of pounds a year to the UK economy — £118 billion in 2023 alone.

    “Many of the ideas for interventions that have been raised in this process would inhibit UK innovation and growth, potentially slowing product launches at a time of profound AI-based innovation.”

    The CMA said Google’s market dominance was unquestionable.

    “We have found that Google maintains a strategic position in the search and search advertising sector – with more than 90% of searches in the UK taking place on its platform,” CMA digital markets boss Will Hayter said.

    “Having taken into account the feedback received following our proposed decision, we have today designated Google’s search services with strategic market status.”

    The CMA previously unveiled what it called a “roadmap” of potential measures it could take if Google was found to have significant market status.

    It said it could potentially force the tech giant to include “choice screens” which would let users see alternative search providers, as well as giving publishers more control over how their content was used.

    It also included what it called “fair principles” for how websites are ranked in search results, and an “effective complaints process” for businesses unhappy about their listing.

    The move has been well-received by consumer groups, with Which? policy boss Rocio Concha calling it “an important step”.

    “The CMA’s careful evidence gathering makes a compelling argument,” she said.

    “Online search is evolving as GenAI tools become more widely used, but the CMA must still act to tackle the harmful dominance Google has now.”

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  • ‘AI first’ approach endorsed in new EU strategies

    ‘AI first’ approach endorsed in new EU strategies

    The European Commission has pledged to “launch a call for expression of interest inviting European companies to share their AI models and systems” with more than 250 digital innovation hubs situated across the EU, with a view to those hubs – now refocused as ‘experience centres for AI’ – promoting “their wide-scale deployment across European strategic sectors”.

    The measure is one of a series of new actions that the European Commission has committed to support EU-wide development and deployment of AI, in pursuit of improved productivity and growth. It wants businesses to adopt an ‘AI first’ approach to solving everyday problems but said that just 13.5% of EU businesses use AI currently.

    The actions are set out in two new AI strategies the Commission published on Wednesday.

    The first strategy, the ‘apply AI’ strategy, includes sector-specific commitments for industries such as health, manufacturing, defence and energy, as well as pledges with cross-sector relevance.

    General actions include measures to support compliance with the EU AI Act by default and by design, in respect of relevant AI models and AI systems.

    In this regard, the Commission has set up a new AI Act Service Desk, which it said businesses can use to “access all relevant information about the AI Act, navigate its content, understand how it applies and get tailormade answers to any question related to its implementation”. Businesses will also be able to use the hub to check “whether they are subject to legal obligations and understand the steps they need to take to comply”.

    The Commission said it will “work with priority” on developing new AI Act-related guidelines too. Those guidelines will concern the classification of AI systems as ‘high-risk’ – something the Commission consulted on earlier this year – as well as guidelines on the AI Act’s interplay with other EU law, with specific focus on sectoral legislation. It said it will also push EU member states that have not already done so, to establish “the responsible national competent authorities” they are supposed to, to support “successful implementation of the AI Act”.

    The Commission’s new strategies contained no announcement in relation to whether it will delay the implementation of certain AI Act provisions, amidst calls on it from industry and other policymakers globally to do so. Only some of the chapters have taken effect so far – prohibitions on certain types and uses of AI began applying in February, while rules impacting providers of so-called ‘general purpose AI models’ came into effect on 2 August. Rules applicable to ‘high-risk’ AI systems do not come into effect until August next year as plans stand right now.

    Other general actions include a series of measures to bolster AI literacy within the EU workforce, funding for “targeted research on next-generation AI agents”, as well as plans to support the development of next-generation AI – so-called ‘frontier AI’ – in the EU.

    “Building on its assets – world-class computing infrastructure, excellent scientific talent, a distinctive approach with a clear emphasis on open source and safety, the Commission will launch and coordinate a frontier AI initiative to accelerate progress in frontier AI capabilities in Europe by bringing together Europe’s leading industrial and academic actors and supporting strategic efforts,” the Commission said. “This initiative will focus on unlocking advanced capabilities through cutting-edge AI architectures and high-quality data, leveraging the computing capacity offered by the AI factories and gigafactories.”

    “To foster the collaboration, the community will be brought together through a call for expressions of interest. The initiative will address ecosystem bottlenecks and downstream demand by Europe’s industry enhancing both competitiveness and sovereignty in frontier AI development. As part of this initiative the Commission will launch major EU-wide competitions to develop open frontier AI models that are major drivers of innovation. These projects will receive free access to EuroHPC supercomputers, and their open models will be made widely available to public authorities across Europe as well as to the European scientific and business communities,” it said.

    Sector-specific actions planned by the Commission include those in the health sphere, where it said actions aimed at supporting AI-related medical devices to enter the EU market will be considered.

    The Commission also intends to run an initiative that would provide some medical researchers with access to EU computing power to help them bring forward new medicines that “address unmet medical needs and treat diseases that have proven difficult to cure, such as Alzheimer’s disease or certain cancers”.

    That plan chimes with a wider agenda the Commission set out in its second strategy paper, the ‘AI in science strategy’, in which it laid out plans to create a “virtual institute that pools excellent talent, compute, data and research funding for AI”. This is to be called Resource for AI Science in Europe (RAISE). Under the RAISE umbrella, it is envisaged that European scientists will “advance AI technologies and apply them to the toughest scientific and technological challenges” – including across specific scientific disciplines – and have access to EU funding, data and computing power.

    The Commission said the RAISE initiative is essential to help the EU compete with countries like the US, China, Japan and UK on integrating AI into scientific work.

    Another sector earmarked for AI-related support by the Commission is manufacturing. The Commission said it will fund “continuous support” for the “AI-powered manufacturing solutions” so that they “progress from the lab to a high level of maturity suitable for real-world applications”. It has also pledged to “facilitate data pooling across industrial actors through trusted third parties, to ensure a sufficient volume of training data, while preserving intellectual property and data security and making use, as relevant, of the data labs in AI factories”. More details on this are expected to be set out by the Commission in a separate data union strategy later this month.

    In relation to mobility, the Commission plans to make use of the EU’s AI factories and gigafactories to “fast track the development of innovative AI models and common software platforms for automated driving and vehicle management systems”. This is in addition to pursuing joint venture arrangements that facilitate real-world testing of AI-enabled self-driving vehicles in EU cities.

    In the area of defence, the Commission said it will incentivise “dual use open architecture solutions for border security and critical infrastructure protection” and deploy dedicated European computing power infrastructure “for training of defence and space AI models and development of AI defence and space applications”.

    The Commission has also promised to undertake “a targeted study to explore the legal challenges related to AI-generated outputs and how cutting-edge technological safeguards and technologies, including AI, could be used to prevent and mitigate the risks of copyright infringing AI content being generated, including by detecting and removing such content”, among other measures relevant to the EU’s creative industries.

    Further plans to support the use of AI for helping to balance the energy system, and to make AI tools more visible to public sector bodies to make use of, were also set out by the Commission.

    Ursula von der Leyen, president of the European Commission, said: “I want the future of AI to be made in Europe. Because when AI is used, we can find smarter, faster, and more affordable solutions. AI adoption needs to be widespread, and with these strategies, we will help speed up the process. Putting AI first also means putting safety first. We will drive this ‘AI first’ mindset across all our key sectors, from robotics to healthcare, energy and automotive.”

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  • UK’s CMA activates new powers to regulate Google search

    UK’s CMA activates new powers to regulate Google search

    General view of the Google headquarters in King’s Cross as the tech giant faces a 5 billion pound lawsuit in the UK for allegedly abusing its online search dominance.

    Sopa Images | Lightrocket | Getty Images

    LONDON — Britain’s competition regulator on Friday activated new powers to regulate Google‘s search activities, putting the U.S. tech giant in the firing line for further regulatory action.

    The Competition and Markets Authority confirmed it is designating Google with “strategic market status” for its general search and search advertising services. It follows a near nine-month investigation in which the watchdog concluded that the tech giant has “substantial and entrenched market power.”

    The watchdog said that Google’s Gemini AI assistant was not within the scope of the designation, although other AI-based search features were included.

    “We have found that Google maintains a strategic position in the search and search advertising sector – with more than 90% of searches in the UK taking place on its platform,” Will Hayter, executive director for digital markets at the CMA, said in a statement.

    “Having taken into account the feedback received following our proposed decision, we have today designated Google’s search services with strategic market status.”

    The designation is not a “finding of wrongdoing,” according to the CMA, but it does mean that Google may have to make changes to how search works in the U.K.

    It’s currently unclear what such measures will look like, as consultation on possible interventions is expected to start later this year, the CMA stated.

    However, according to a roadmap published in June, it could require the tech giant to implement fairer search rankings and give publishers greater control over how their content is used, including in AI-generated responses, among other things.

    Google said its search product contributes billions of pounds to the U.K. economy, and the country has so far been able to avoid costly restrictions on some of its popular services.

    “Many of the ideas for interventions that have been raised in this process would inhibit UK innovation and growth, potentially slowing product launches at a time of profound AI-based innovation,” said Oliver Bethell, senior director of competition at Google.

    He added that Google hopes to see “outcomes that reflect such ambitions in the crucial months ahead.”

    U.K. should avoid ‘unduly onerous regulations’

    Indeed, the firm’s parent company Alphabet last month announced a £5 billion ($6.8 billion at the time) investment in the U.K. as part of the country’s AI development, which includes the build-out of a state-of-the-art data center just north of London.

    British Finance Minister Rachel Reeves described the move as “a powerful vote of confidence in the U.K. economy and the strength of our partnership with the U.S.,” CNBC previously reported.

    “To date, U.K. businesses and consumers have been amongst the first to benefit from Google’s innovations, often months before their European counterparts,” Google’s Bethell said amid the CMA designation. In a LinkedIn post a couple of months ago, Debbie Weinstein, president of Google in Europe, said this was due to “regulatory uncertainty” in Europe.

    For it to continue to benefit in this way, the U.K. should focus on “avoiding unduly onerous regulations and learning from the negative results seen in other jurisdictions,” Bethell added.

    The strategic market status designation is a flex of the CMA’s new powers, designed to “improve competition in digital markets, helping to drive innovation, investment and growth across the U.K. economy,” which came into force earlier this year.

    The CMA is also investigating Google’s mobile operations in a separate case.

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  • Fitch Rates Séché's EUR 300 million Hybrid Notes Final 'B+' – Fitch Ratings

    1. Fitch Rates Séché’s EUR 300 million Hybrid Notes Final ‘B+’  Fitch Ratings
    2. Séché Environnement Carried Out Its First Issue of 300 Million of Deeply Subordinated Perpetual Notes with A Coupon of 5.87 %, Reset Periodically  MarketScreener
    3. CORRECTING and REPLACING: Séché Environnement: Green Hybrid Bond Issue – 02.10.25 – News  Ariva

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  • Continuing medical education: understanding general practitioners who rarely attend, a cross-sectional questionnaire study among Danish GPs | BMC Medical Education

    Continuing medical education: understanding general practitioners who rarely attend, a cross-sectional questionnaire study among Danish GPs | BMC Medical Education

    Main findings

    For all GPs, regardless of user type, teachers and course leaders with insight into general practice and looking up specific knowledge related to an individual patient were crucial. Infrequent users of CME preferred self-study and fact-based lectures without participant involvement. However, they were open to courses designed for their own clinic. Although infrequent users preferred group-based learning to a lesser extent than frequent users, 68% versus 85%, it is still among the most preferred CME formats by infrequent users. Infrequent users and partial users were less inclined to attend weekly courses and courses abroad than frequent users. In contrast, frequent users valued interactive learning and did not mind more time-consuming courses. All user groups ranked online education, self-study, and sponsored meetings low, but infrequent users were less reluctant towards these formats.

    Among infrequent users, 42% found the current mandatory CME extent appropriate, while 18% preferred it to be extended. Among partial and frequent users 61% and 63% respectively found the current mandatory CME extent appropriate. Additionally, 23% of partial users and 17% of frequent users preferred it to be extended. At first sight, this may seem contradictory to the GPs opposition to being obligated to participate in mandatory CME (72% among infrequent users, 58% and 53% among partial and frequent users respectively). This may indicate a difference between a ‘principled opposition’ to being obligated, which can be overridden by a ‘practical acceptance’ of mandatory CME.

    Comparison with other studies

    Most GPs preferred CME formats that involve peer engagement and interactive learning, which aligns with findings from other studies [10, 17]. These formats are also known to be the most effective in altering medical-care processes and improving patient health outcomes [18, 19]. But we also found that infrequent users preferred less interactive and less time-consuming formats. We did not find literature that have examined preferences divided by user type nor the consequences. Infrequent users more often relate their educational needs to patient centered knowledge gaps (look it up when needed, exclusively facts, reading on my own) this “point of care microlearning [20] can only rarely be documented and thus goes below the radar of remunerable CME.

    Maher et al. [17] found that less than 9% of GPs indicated a preference for ‘totally online’ courses. The COVID-pandemic created a need to deliver education in virtual formats, and educators and health care professionals reported that they did not expect to return to previous models of educational delivery [21]. E-learning can make education mere accessible, immediate, and less time-consuming. Nevertheless, we found that although infrequent and partial users were slightly more inclined towards online education compared to frequent users, online formats were generally not a preferred preference for any user group.

    This study showed that most GPs accepted the current extent of mandatory CME or even suggested it should be expanded. This aligns with a former study conducted before the introduction of mandatory CME in Denmark [10], where Danish GPs expressed positive attitudes towards mandatory CME elements if the content was selected by respected peers. Our findings differ from Macdougall et al. [22], who described mandatory training as frustrating, particularly if it is irrelevant or repetitive, characterizing it as a ‘tick-box culture’ and ‘CPD point-collecting’ regardless of engagement, with no allowance for prior experience. However, Macdougall et al. also noted that mandatory training can be beneficial if it is carefully designed, aligned with learners needs, and the topics appears relevant [22].

    The high level of acceptance of mandatory CME among Danish GPs may be interpreted through the lens of self-determination theory [23, 24]. It describes that a movement from extrinsic towards intrinsic motivation requires three basic psychological needs: Perceived competence, relatedness, and autonomy. The Danish mandatory CME programme is based on an intensive learning needs analysis [14] which ensures relevant learning (perceived competence). Furthermore, the CME programme offers great variation in educational formats (autonomy). Consistency with the three basic psychological needs may help explain the seemingly contradictory finding of minimal resistance to mandatory CME among Danish GPs. Alternatively, the GPs may view mandatory CME as an opportunity for a break or as an educational guarantee rather than an unnecessary obligation [9].

    The reluctance of the infrequent users towards user involvement appears to conflict with peer relatedness and may pose a challenge to learning, as it limits theoretically optimal learning opportunities [18, 19] and may thus contain a paradox. However, we do show that infrequent users engage in learning by participating in activities within their own clinics, and in group-based learning, both of which provide active learning opportunities and social interaction among colleagues (relatedness).

    Methodological considerations

    The strengths of this study include the use of a comprehensive questionnaire covering various aspects of CME, which was distributed to all GPs in Denmark. The questionnaire was validated through interviews, enhancing the reliability of the data collected [7]. The response rate was 40%, which introduces the potential for response bias, particularly if those with strong positive or negative attitudes toward CME were more likely to respond. The study sample was largely representative of the overall GP population in Denmark, apart from a slightly higher proportion of female GPs [8]. Moreover, the proportion of GPs identifying as infrequent users matched the annual report from Association of General Practitioners [25].

    However, there are also limitations. The study was a cross-sectional questionnaire, which limits the ability to draw causal inferences from the observed associations. Using self-reported data introduces the risk of social desirability bias or recall bias, which can be a limitation if GPs are less likely to report themselves as infrequent users. However, the proportion of GPs who classify themselves as infrequent users corresponds with the proportion of GPs who do not use their reimbursement, as reported in the annual report from PLO-E [25]. Additionally, the questionnaire was developed based on a qualitative study with interviews with GPs who have not used their CME funds [7]. This may be a weakness of the questionnaire regarding preferences for CME formats, as it may risk underrepresenting the preferences of frequent and partial users. Nevertheless, our focus was on infrequent CME users, and the questionnaire offered an option to provide additional preferences for formats in the free-text comments, though no new preferences emerged from these comments.

    Perspectives

    To make CME effective and acceptable, it should align with the core psychological needs of competence, relatedness, and autonomy. Teachers with practical experience and relevant patient-focused content boost perceived competence. Infrequent users prefer self-study and fact-based lectures without user involvement, but they are open to group-based learning and in-practice formats, which should be used strategically to foster relatedness and offer an opportunity to calibrate knowledge, exchange professional experience, and detect the unknown unknown.

    Offering a variety of accessible, smaller-scale courses supports autonomy and diversity.

    While mandatory CME can be seen as a valuable break or educational guarantee, especially to infrequent users, it must be balanced with voluntary options to avoid demotivating frequent users. Trust in professional integrity, combined with accountability, benefits practitioners, patients, and the healthcare system.

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  • EV tariffs + EU-China policy at an inflection point + Exports to China

    EV tariffs + EU-China policy at an inflection point + Exports to China

    In this issue of MERICS Europe China 360°, we cover the following topics:

    • One year on from EU’s EV tariffs: Results and strategic choices ahead
    • EU’s China policy is at an inflection point
    • Soapbox-MERICS Data Highlight: EU market reality tilts transatlantic

    One year on from EU’s EV tariffs: Results and strategic choices ahead

    By Jacob Gunter and Grzegorz Stec

    The EU is currently evaluating the effectiveness of its tariffs on Chinese-made electric vehicles (EVs) since their introduction a year ago. The countervailing tariffs of 17 to 35.3 percent, which were based on investigations into several EV makers in China by the Commission, came on top of the EU’s standard ten percent car import duty. Just how the EU measures the tariffs’ effectiveness depends on their intended purpose. Were they meant only to address price distortions from subsidies or to decrease or even stop the flow of EVs from China? Or were they meant to drive Chinese automakers to invest in production sites in the EU – or a combination of all of those?

    The tariffs have had mixed results

    If measuring the impact on price distortions, the result is mixed but leans positive. The Commission’s investigation was exhaustive and certainly enabled it to set tariffs measured to offset the subsidies China-based EV makers have enjoyed. However, they were based on specific support measures and could not take into account the price wars driven by overcapacity which have shaped EV-makers’ strategy to accept razor thin margins – and even losses. Their willingness to accept margins in export markets that are very low but still higher than those in China has created global price distortions.

    If measuring effectiveness by stemming or even stopping the flow of China-made EVs (which is not a stated goal, but which some observers use as a metric of success), the result is a profound failure. Chinese EV brands doubled their market share in the EU in the last year, in part by quadrupling exports of plug-in hybrids (PHEVs) which circumvent the tariffs. That is happening even as European car exports to China continue to decline. 

    If measuring effectiveness by Chinese investments in EU production sites to avoid tariffs, the situation is difficult to judge. Chinese EV makers have announced several planned investments and production lines in the EU since the tariffs: BYD is modestly expanding an electric bus plant in Hungary, XPENG is licensing production of several models in Austria, and Chery invested in a large research and development (R&D) center attached to its existing investment in Spain. 

    However, it is difficult to determine the weight of the tariffs on those corporate decisions. Chinese EV makers that may have been considering investments in the EU may also have been deterred by Beijing’s order in fall 2024 to pause investments in member states that supported the EV tariffs. They may have interpreted it as Beijing discouraging investments generally in Europe. Now that Beijing knows EU member states’ would like more Chinese EV investments, China may allow or even encourage its EV makers to invest in those ”friendlier” member states.

    China-made EVs will continue to expand in the EU market

    China is expected to significantly increase its total car production and exports in the coming years. The China Passenger Car Association (CPCA) announced in September that it expects China to export as many as 10 million cars by 2030. Not all of those will be bound for the EU, but there are hard limits as to where sufficient numbers of customers can be found, especially as a market needs enough consumers who can afford such cars in the first place. 

    • The US holds little hope for China’s EV makers, who correctly anticipated both former President Joe Biden’s  and Donald Trump’s measures on Chinese EVs.
    • Japan and South Korea lack restrictions, but their consumers overwhelmingly prefer local brands over foreign ones, Chinese or otherwise.
    • Many BRICS members have raised barriers on Chinese cars, including Russia through new “recycling” fees, and India which is set to only permit imports once companies have invested enough in the market. 

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  • Montréal to host FIGO World Congress 2027

    Montréal to host FIGO World Congress 2027

    FIGO is delighted to partner with the Society of Obstetricians and Gynaecologists of Canada (SOGC) for the XXVI FIGO World Congress of Gynecology and Obstetrics, taking place on 31 October–5 November 2027 at the Montréal Convention Centre (Palais des congrès de Montréal). 

    After a rigorous selection process, Montréal was chosen as the host city for the FIGO World Congress 2027, recognised for its vibrant cultural scene, inclusive values, excellent accessibility for international delegates and strong commitment to advancing healthcare and research.  

    The Congress will be held at the Montréal Convention Centre (Palais des congrès de Montréal), a modern and sustainable venue in the heart of the city, offering state-of-the-art facilities to support scientific exchange, networking, and collaboration. 

    Join the FIGO newsletter to be the first to hear about early bird registrations and abstract submission opportunities for the world’s largest event in obstetrics and gynaecology. 

    The 2027 World Congress will be an unmissable opportunity for clinicians, researchers, advocates, and policymakers to come together, share knowledge, and strengthen global efforts to improve the health and rights of women and girls everywhere. 

    The world-class, evidence-based scientific programme will feature emerging science and discovery, late-breaking topics and controversies, interactive simulation labs and workshops, and inspiring plenary lectures.  

    FIGO looks forward to celebrating women’s health in the vibrant city of Montréal! Our outstanding scientific programme will bring together scholars, clinicians, and researchers from across the globe. Thanks to the dedication of SOGC and Montréal’s welcoming spirit, we will have the opportunity to connect, learn, and enjoy this landmark World Congress.

    Professor Frank Louwen, FIGO President 2025–2027 

    SOGC is delighted to represent FIGO’s North American region by hosting the 2027 World Congress in Montréal. We look forward to welcoming delegates to an engaging and inspiring programme, and to sharing Canada’s rich culture, historic charm and leadership in women’s health.

    Dr Diane Francoeur, SOGC CEO 

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  • Your plumber has a new favorite tool: ChatGPT

    Your plumber has a new favorite tool: ChatGPT


    Washington
     — 

    The roughly 20 plumbers of Oak Creek Plumbing & Remodeling in the Milwaukee, Wisconsin area don’t just bring toolkits with wrenches, pliers and Teflon tape to customers’ homes these days. They also bring a tablet equipped with the latest version of ChatGPT.

    The technology helps those workers automatically create invoices, work proposals and even brainstorm how to address complicated plumbing problems, company president Dan Callies told CNN. All they have to do is take photos of a broken water heater, for example, or write their observations in a prompt, and ChatGPT spits out a list of recommendations.

    “It’s definitely been worth the investment,” Callies said. “Some of our older guys have learned to ask ChatGPT the right questions, and they’re kind of amazed with some of answers it comes up with.”

    From office work to on-the-ground troubleshooting, blue-collar businesses are increasingly embracing AI to boost productivity, cut down costs and even replace administrative support roles. Some use popular AI software such as ChatGPT and Microsoft Copilot, while others use platforms tailored specifically for the trades with AI capabilities, such as ServiceTitan and Housecall Pro.

    “It’s affecting both sides of our company, out in the field and internally within our office,” Callies said.

    No humans are involved from when a customer requests services from Gulfshore Air Conditioning & Heating in Niceville, Florida to when a technician arrives at their home, thanks to AI.

    And once the technician arrives, they use AI to diagnose the issue and pull up technical information within seconds — a task that used to require sifting through as many as five 60-page manuals, said Krista Landen, the company’s marketing and IT manager.

    A survey of more than 400 tradespeople across North America by Housecall Pro earlier this year found that more than 70% of respondents said they have tried AI tools and about 40% said they actively use them. Younger professionals are leading the charge, the survey showed, though older workers are testing the waters, too.

    AI’s integration and impact varies by industry, according to the survey; Plumbers were the most likely to say AI has helped their business grow; cleaners were the “biggest adopters of AI”; while electricians had “the highest satisfaction rates” with the technology.

    Schools have also taken notice: Jason Altmire, president and CEO of Career Education Colleges and Universities, a trade association that represents more than 800 private vocational schools across the country, said several institutions are weaving AI into their curriculum in collaboration with employers.

    “They want their graduates ready for jobs that are going to be available in the future, not jobs that were here five years ago,” Altmire said.

    Still, some tradespeople are skeptical about how the new technology works and how it can be applied to physical tasks.

    “There’s some hesitancy, so I wouldn’t say they’re all in,” said Edward McFarlane, chair of the board of directors at the Air Conditioning Contractors of America. “But the tide is definitely coming in.”

    AI is slowly reshaping the economics of blue-collar America.

    Businesses in the trades implementing AI are becoming more productive, allowing them to take on more projects or improve the quality of their services, said Laura Ullrich, an economist at job site Indeed.

    “People go into the trades because they like doing the hands-on work itself, and if some of the administrative tasks can be automated, then that should help those workers lean into the parts of the job they like and do smarter work,” she said.

    AI has already made a measurable impact on Gulfshore, which saw a $370,000 increase in revenue 30 days after upgrading to an AI marketing feature that automates campaigns.

    The company said it also saw an increase of $150 in revenue per average ticket after implementing AI tools that helped technicians get through administrative tasks more quickly and allowed them to sell customers additional services or accessories. Landen said the higher revenue, if sustained, should eventually translate into higher compensation for technicians.

    “We’ve been using these AI products since June, so we should start to see more of a benefit in order to roll out new compensation packages (for technicians) within the next six months,” she added.

    Callies of Oak Plumbing & Remodeling said ChatGPT has allowed the company to “lower our overhead and provide better services or better value.”

    AI’s growing adoption in the trades could mean businesses may not need to hire as many office workers for marketing and taking customer calls, economists and business owners tell CNN. That presents those businesses the opportunity to cut down on those costs.

    For now, there’s broad agreement that AI is nowhere near taking away the jobs of technicians, at least not until robotic technology significantly advances. It’s mostly proving to be a useful tool for tradespeople.

    “All of our technicians are running more efficiently, and they’re less stressed,” Landen said. “I feel like I am a real life Jetson living in the future.”

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