Do it your way — #71

Author

Anna Loverus
November 27, 2022

My only ever Thanksgiving was celebrated during Christmas. I was visiting my friend Lauren and her parents in San Francisco, and she felt it was sad that I had never gotten to experience her favourite holiday. So, they hosted a second

Thanksgiving party that year, inviting a somewhat confused group of friends. But no matter where we live or what we eat, we can all use this weekend to think about what we are thankful for. Of course, having friends like Lauren is high on my list.

/Anna

Germany plans to reduce its dependency on China, learning from its experience with Russia

GEOPOLITICS / CHINA / GERMANY

According to a confidential document, Germany's foreign ministry plans to tighten the rules for companies that depend on China. The proposal suggests that the German government want companies heavily exposed to China to disclose more information and possibly perform stress tests for geopolitical risks.

The suggestion is part of a new German business strategy towards China, seeking to reduce its dependency on Asia's economic superpower. "The aim is to change the incentive structure for German companies with market economy instruments so that reducing export dependency is more attractive," said the document, mentioning the chemicals and car industries specifically.

China became Germany's single biggest trade partner in 2016. But Germany has realised that it can be costly to depend too heavily on a specific actor after Russia's invasion of Ukraine in February led to the end of a decade-long energy relationship between Berlin and Moscow.

However, Chinese demand for German cars and machinery has fuelled the growth of Europe's biggest economy over the past two decades. Less than a month ago, Chancellor Olaf Scholz's government, whose foreign ministry is now drawing up the strategy, was heavily criticised for selling stakes in a Hamburg port to Chinese owners.

A spokesperson for the German foreign ministry declined to comment on the draft, which still needs to be approved by other parts of the government. However, the German government is expected to decide on its China strategy early next year.

eBay opens a store that accepts pre-owned luxury as currency

SUSTAINABILITY / CONSUMER BEHAVIOUR

Most people (who read this newsletter) have too much stuff. We might need something other than what we already have, but we often have something we could give up. So, the idea of paying with pre-used items, almost like a barter deal, is increasingly being explored by retail actors.

With inflation and private consumers hesitant to spend money on luxury items, the resell platform eBay opened a store in New York where shoppers can pay with their pre-owned jewellery, bags, and watches.

Shoppers visit the store to get their luxury items authenticated and assigned a value. They can then shop for the watches, handbags, and jewellery displayed in the store within their value range, make the exchange and walk out of the store with their new luxury goods. If nothing in the store catches their eye, visitors can choose to get their item photographed in the on-site photo studio and list it on eBay instead.

We can see that this type of earned credit is often used by reselling platforms to keep shoppers within their ecosystem. And with the combination of the climate crisis asking for increased circularity and inflation making consumption go down, it makes sense for retailers to explore new ways to make money.

Huawei and ZTE banned from selling new products and services in the US

TECHNOLOGY / GEOPOLITICS / CHINA / US

On Friday, the US Federal Communications Commission (FCC) banned the sale of new telecom and surveillance equipment from several Chinese companies. Among the most famous names on the list are Huawei and ZTE.

Washington claims the companies and their products pose "an unacceptable risk" to national security and fears that Beijing could use digital tools and services to spy on Americans. However, it does not ban equipment already acquired from the banned companies.

"These new rules are an important part of our ongoing actions to protect the American people from national security threats involving telecommunications," the FCC chairwoman, Jessica Rosenworcel, said in a statement.

The decision comes after years of investigation. In March 2021, the US listed five Chinese companies as a threat to national security under a 2019 law to protect US communications networks. Countries like Australia, the United Kingdom and Sweden have already ported Huawei from participating in the expansion of the 5G networks. However, the US ban covers about ten companies, not only Huawei.

Chinese surveillance equipment has taken a substantial market share. For example, the state-owned camera surveillance company Hikvision is globally the largest in its sector in terms of revenue. In addition to the Chinese companies, the ban covers the Russian IT security company Kaspersky Lab.

Analysts now expect the decision to create new tensions between China and the United States after hopes of an improvement. United States President Joe Biden and Chinese Prime Minister Xi Jinping met recently, as did US Treasury Secretary Janet Yellen and China's central bank governor Yi Gang.

Double-check the headlines

Just making sure you didn't miss any major world events this week.

And some headlines that could potentially change the world as we know it ...

One long

Trigger warning! This article discusses assisted suicide.

The Globe and Mail

With doctors divided and federal guidelines still in development, Canadians have questions about who will qualify for MAID next year – and whether giving the most vulnerable an easier way to die is a good idea.

Five short

1. Read

The Science of Storytelling: Why Stories Make Us Human and How to Tell Them Better by Will Barr. You will learn more than you could ever imagine about crafting a narrative your audience cares about.  

2. Listen

The Nutcracker is one of my favourite Christmas things, combined with most things flavoured saffron and different citrus fruits. My preferred recording is with the Berlin Philharmonic from 2010.

Also, this week, the New York Times published its yearly interview with the children from the New York City Ballet who star in the show—portraying the candy canes, angels, snowflakes, and mice—a truly delightful piece of photojournalism.

3. Remember

Earlier this week, I quoted FIFA World Cup-related disinformation in a meeting. And every week, when writing this newsletter, I come across new articles that look entirely legitimate but, on closer investigation, are disinformation. And part of my job is to spot disinformation. So, I guess we should all fact-check more.

4. Change

Did you know there is a particular type of laundry detergent that keeps your black clothes from fading? My favourite shirt started to look tired, but now it is back in the heavy rotation again.

5. Try

In my family, Christmas presents are only for those under 18. And to those still qualifying for gifts, I've been able only to buy pre-owned gifts this year. Also, I've been helping other family members to do the same. Try it! I wouldn't say it was very demanding, just a new behaviour