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BRUSSELS, Belgium — The EU on Friday demanded wildly popular shopping platforms Shein and Temu explain what action they are taking to protect consumers, including children.

The query was made under the EU's breakthrough law known as the Digital Services Act (DSA) that forces platforms to do more to tackle the sale of illegal and harmful goods.

The European Commission said it wants to know what action the Chinese-founded platforms have taken to make sure users can notify them about illegal products.

It also wants to know how Shein and Temu are complying with rules regarding online interfaces to avoid "dark patterns", the practice of tricking users into making unwanted purchases or opting-in to certain settings without their knowledge.

The commission added it wants more information about how they are guaranteeing the transparency of their recommender systems — algorithms used by platforms to push more personalised content — and the ease with which sellers can be traced.

Both companies must provide the information by July 12.

The commission said its request for information was also based on a complaint submitted by consumer organisations.

In May, Europe's BEUC umbrella consumer rights group filed a complaint against Temu with the European Commission, accusing the app of using "manipulative techniques".

Temu at the time said it was committed to complying with the rules.

Both platforms have a sizeable European user base.

Shein, a Chinese-founded company which is headquartered in Singapore, has said it has around 108 million monthly active users in the 27-nation EU.

Temu only arrived in Europe last year and has said it has on average around 75 million monthly active users in the bloc.

Shein and Temu also recently joined fellow marketplaces AliExpress, Amazon and Zalando on a list of 24 "very large online platforms" facing stricter safety rules under the DSA, which have more than 45 million monthly active users in the European Union.

PARIS — Global anti-money laundering watchdog the Financial Action Task Force (FATF) said recently it had added Monaco to a "grey list" of countries subject to increased monitoring.

The action comes despite Monaco having already taken a series of actions after being singled out by the Council of Europe's anti-money laundering body following a series of unverified claims against figures close to Prince Albert II.

The FATF, a Paris-based organisation which monitors efforts by more than 200 countries and jurisdictions to prevent money laundering and the financing of terrorism, added Monaco and Venezuela its grey list at a plenary meeting held in Singapore.

Grey list nations are considered to have "strategic deficiencies" in countering money laundering and terrorist financing, while however cooperating with the FATF to correct the problems.

Long known as a playground for the rich and famous, Monaco attracts moneyed residents due to an extremely favourable tax regime which include an absence of income and wealth taxes.

"Despite significant progress achieved since 2022, Monaco needs to address strategic deficiencies," said FATF President Raja Kumar.

Monaco's government said it is committed to getting off the grey list.

"The principality confirms its determination to implement the latest FATF recommendations set out in the declaration, in accordance with the planned deadlines," the government of the Mediterranean tax haven said.

The FATF found that Monaco had not taken enough efforts to stop laundering money from fraud committed abroad or moved aggressively enough to seize criminal assets.

It also judged money-laundering penalties to be insufficient and investigators lacked sufficient resources.

In January 2023 the Council of Europe's anti-money laundering body Moneyval urged Monaco to intensify its efforts in the investigation and prosecution of money laundering. It has since adopted nine laws to toughen its rules and boost its anti-money laundering body, the AMSF.

Local sources have said it has been difficult to apply the measures immediately due to a lack of qualified staff.

A 2023 census put the number of Monegasques at 9,720, which means that Monaco often needs to rely on foreign experts, which is not in conformity with FATF rules.

Monaco was briefly on a OECD blacklist of financial centres in 2009, which prompted it to undertake a series of transparency measures and put into place cooperation agreements to help crack down on tax evasion.

Monaco has been shaken since the end of 2021 by anonymous denunciations orchestrated by a website "Les Dossiers du Rocher" ("The Rock Files").

The site accused several figures close to Prince Albert of being in cahoots in a money laundering scheme based on corruption in property deals, and forced the ouster in 2023 of crown assets chief administrator Claude Palmero.

Turkey removed from grey list

The FATF on Friday also removed Jamaica and Turkey from the grey list after they eliminated the identified deficiencies in their efforts to prevent money laundering and the financing of terrorism.

"Thanks to the good measures we've adopted, Turkey has been removed from the grey list," the economy ministry said following the decision.

FATF had placed Turkey on the list in October 2021.

A total of 21 nations are on the grey list, including Mali, Vietnam and Yemen.

The FATF also has a "black list" of nations which are considered high-risk jurisdictions.

The body urged countries to apply countermeasures against Iran and North Korea and warned about the latter's "illicit activities related to the proliferation of weapons of mass destruction and its financing".

It urged countries to end all business with North Korean banks and limit business with Pyongyang entities.

The FATF also urged countries to apply countermeasures to Iran, which it noted had not ratified the Palermo and Terrorist Financing Conventions.

BEIJING — A key political meeting that is watched for signals on China's economic direction will be held in mid- July, state media said on Thursday, as policymakers seek to shore up a stuttering recovery. 

A full rebound in the world's number two economy has yet to kick in more than 18 months after crippling COVID-19 restrictions ended, sending ripples of unease through leaders and citizens. 

The Third Plenum, originally expected last autumn, is highly anticipated in the hope it will resolve uncertainty and reveal details of Beijing's future strategy. 

State news agency Xinhua said the meeting, to be held from July 15-18, would "primarily examine issues related to further comprehensively deepening reform and advancing Chinese modernisation". 

Authorities have been clear they want to re-orient the economy away from state-funded investment and instead base growth around high-tech innovation and domestic consumption. 

However, economic uncertainty is fuelling a vicious cycle that has kept consumption stubbornly low. 

President Xi Jinping's government has so far resisted any big stimulus and the head of China's central bank warned last week it was not on the cards. 

The economy still faced many challenges, the bank's chief said, but authorities would exercise moderation. 

Xinhua said the government meeting at which the Third Plenum's dates were set had emphasised the need to ensure that reform "relies on the people and the fruits of reform are shared by the people". 

Among the most urgent issues facing China's economy is a persistent crisis in the property sector, which long served as a key engine for national growth but is now mired in debt with several top firms facing liquidation. 

Authorities have moved in recent months to ease pressure on developers and restore confidence, such as by encouraging local governments to buy up unsold homes. 

The Third Plenum could see the introduction of policies such as "a more coordinated housing destocking programme to contain the negative property spillovers", according to UBS Global Wealth Management's Yifan Hu. 

Other moves may include "fiscal/tax reforms to contain local government debt risks, and further support for emerging industries", Hu wrote in a report. 

There have been some positive economic signs recently, with the International Monetary Fund revising upwards its 2024 economic growth forecast to 5 per cent last month in line with Beijing's official target. 

But significant hurdles remain and geopolitical tensions are also mounting. 

Beijing hit back Thursday after Canadian officials suggested they might become the latest Western country to impose additional tariffs on Chinese electric cars and batteries. 

"Canada should respect facts, abide by WTO rules, and create a fair, non-discriminatory and predictable market environment for the common development of the China-Canadian electric vehicle industry," said spokesperson He Yadong of the commerce ministry, according to a transcript on its website. 

The European Union is preparing to impose new tariffs of up to 38 per cent on Chinese EVs by July 4, which Beijing has condemned as "purely protectionist". 

The EU maintains that heavy state subsidies in China have led to unfair competition in local markets, a claim denied by Beijing. 

The United States hiked tariffs on $18 billion worth of imports from China last month, targeting strategic sectors such as electric vehicles, batteries, steel and critical minerals, a move Beijing warned would "severely affect" relations between the two superpowers. 

Chinese Premier Li Qiang called on countries to "oppose decoupling" at a World Economic Forum conference this week. 

NEW YORK — German auto giant Volkswagen (VW) will invest $5 billion in US electric vehicle (EV)  maker Rivian and create a joint venture expected to produce technology used by both auto makers, the companies announced recently.

The collaboration includes a direct $3 billion investment by the German company in Rivian as well as $2 billion to establish an equally controlled and owned joint venture "to create next-generation electrical architecture and best-in-class software technology", the companies said in a news release.

Shares of Rivian rose 8.6 per cent on Tuesday and nearly 50 per cent in after-hours trading following the deal's announcement just after the end of the trading session.

Although praised for its technology, Rivian has been reporting losses and bleeding cash.

Under the transaction, VW will make an initial $1 billion investment in the US company in 2024 that will convert to Rivian common stock, to be followed by subsequent rounds in 2025 and 2026 of $1 billion each. 

The additional $2 billion from VW is expected to be split between a payment at the start of the joint venture and a loan in 2026, the companies said. 

Besides boosting Rivian's balance sheet, the deal represents a vote of confidence by VW in the California company's platform that will improve the EV maker's ability to win concessions from key suppliers, company officials said on a conference call with analysts.

"The transaction as a whole provides a powerful platform for future growth for Rivian," said Chief Financial Officer Claire McDonough "and it's not just the $2 billion of JV-related capital. It's the full $5 billion of capital and the opportunity we have to accelerate our mission".

VW's investment will enable Rivian to fund investments to ramp up production at its Illinois factory and to advance a new plant in the state of Georgia, the company said.

Those two projects enable "a path to positive free cash flow and meaningful scale", Rivian said.

The venture will allow VW to employ Rivian's existing electrical architecture and software plan, accelerating the German company's efforts on software-defined vehicles.

"Through our cooperation, we will bring the best solutions to our vehicles faster and at lower cost," said VW Chief Executive Oliver Blume.

"We are strengthening our technology profile and our competitiveness," Blume said.

The two companies expect completion of the transaction in the fourth quarter of 2024 with anticipated regulatory approvals.

CFRA Research lifted its share price target on Rivian but maintained a "sell" recommendation on the company.

"While the announcement is a vote of confidence in Rivian, we think it does little to change the company's operating issues and troubling cash burn rates, which have been around one billion dollars per quarter," said CFRA's Garrett Nelson.

"The key question is why would VW make such an investment in a struggling EV manufacturer that could face going concern risk in the future, but clearly VW sees value in gaining access to RIVN's vehicle architecture and software," Nelson said.

TOKYO — Hundreds of multinational corporations on Tuesday urged Japan to triple its capacity to generate renewable power by 2035, as the heavily coal-dependent country updates its energy policy.

Dubbed RE100, the group of more than 400 large companies that have committed to work towards using all-renewable electricity includes 87 Japanese firms such as Sony and Panasonic.

"By increasing its domestic renewables capacity, Japan can significantly improve its energy security, safeguard its international competitiveness and increase private investment in more renewables projects," the group said.

It called for Japan to use its Strategic Energy Plan — set to be unveiled later this year — to triple installed renewables capacity from 121 gigawatts in 2022 to 363 gigawatts before 2035. 

At the COP28 climate talks in December, nearly 120 nations including Japan pledged to triple the world's renewable energy within seven years — a global effort in which each country's contribution may vary.

Japan, at 22.6 per cent, and the United States are the Group of Seven countries with the lowest share of renewables in their current power generation, according to International Energy Agency figures from 2022.

The Japanese government is targeting carbon neutrality by 2050 but was reluctant to set a date to phase out coal-fired power plants at this year's G7 climate meeting, where ministers agreed to a goal of the mid-2030s.

They also preserved a place for coal power if it is "abated", meaning its emissions are captured or limited by technology — something panned by many as unproven and a distraction from cutting fossil fuel use.

RE100 was founded 10 years ago by the international non-profit Climate Group in partnership with global NGO Carbon Disclosure Project (CDP), which tracks and rates companies' climate pledges.

Ahead of Japan's revised energy strategy, it has set out six policy recommendations to improve "the availability, accessibility and affordability of renewables in Japan".

The world's fourth-largest economy is heavily reliant on fossil fuels, partly because many nuclear reactors remain offline after the 2011 Fukushima meltdown.

NEW YORK — The US Department of Justice (DoJ)  is considering a deal with Boeing that would avoid criminal prosecution of the aerospace giant but may appoint a federal supervisor to oversee company progress on safety improvements, The New York Times reported recently.

People familiar with the discussions told the daily that the terms of the possible alternative settlement, known as a deferred prosecution agreement, or DPA, are still subject to change.

A DOJ official involved in the case, Glenn Leon, chief of the fraud section criminal division, said in an email to a civil party lawyer seen by AFP that the department "has not made a decision" on the path it will take with respect to Boeing.

The DOJ is determining its next steps after concluding in May that Boeing could be prosecuted for violating a criminal settlement following two fatal 737 MAX crashes in 2018 and 2019 which claimed 346 lives.

But the Times, citing sources familiar with the discussions, reported that after substantial internal debate, Justice officials "appear to have concluded that prosecuting Boeing would be too legally risky". 

Officials also reportedly believe that the appointment of a watchdog would be "a quicker, more efficient way" to ensure safety and quality control improvements are made, the newspaper said.

Last month, the DOJ told the judge in the case it would give its decision no later than July 7.

The DOJ's Leon emailed Paul Cassell, a lawyer for families in the criminal case against Boeing, saying the Times reporting "was simply not correct". 

Boeing did not respond to AFP requests for reaction.

No decision 

The troubled planemaker had contested the department's conclusions in mid-June, but has recognised the gravity of the safety crisis and CEO Dave Calhoun told Congress that Boeing is "taking action and making progress".

In January 2021, Justice announced an initial DPA in which Boeing agreed to pay $2.5 billion to settle fraud charges over certification of the 737 MAX. 

But since early 2023, the manufacturer has experienced multiple production and quality control problems on its commercial aircraft, as well as mid-flight incidents including in January when a door plug panel flew off an Alaska Airlines 737 Max 9.

The DOJ says Boeing's violation of several provisions of the initial agreement, including measures requiring it to bolster its internal controls to detect and deter fraud, opened the company to prosecution.

Victims' families have called for the criminal prosecution of Boeing and its executives, and are seeking a nearly $25 billion fine.

A new DPA would allow the US government to resolve Boeing's violations without a trial. 

That could serve as a victory of sorts for Boeing, a company seen as critical to the US aviation industry as well as national security.

Cassell, the families' lawyer, warned against sealing an agreement avoiding trial.

"We hope that the Department is not using its claim to have not yet made a 'final decision' as a ploy to gain additional time to hammer out a DPA deal with Boeing," Cassell said in a statement.

"The first DPA deal failed. There is no reason to think a second one would be any better," he said, adding it's time for "moving forward with a trial and obtaining a guilty verdict against Boeing".

Such lawsuits in the past have forced companies into filing for bankruptcy, the Times reported, and a conviction could potentially prevent Boeing from receiving government contracts.

Boeing's defence, space and security segment generated $25 billion in 2023, nearly a third of the company's sales.

BRUSSELS, Belgium — The growth of business activity in the eurozone slowed down in June after the manufacturing sector posted its biggest decline in six months, a key survey said recently.

The HCOB Flash Eurozone purchasing managers' index (PMI) published by S&P Global recorded a figure of 50.8, down from 52.2 in May and its lowest level in three months.

Any reading above 50 indicates growth, while a figure below 50 shows contraction.

Manufacturing activity slid to 46 in June from 49.3 a month earlier.

The data however "suggested that GDP will continue to expand in the second quarter", S&P Global said. But the lower PMI in June showed growth "may be slower than initially expected", said Bert Colijn, senior eurozone economist at ING Bank.

Economists agreed it was unlikely that the European Central Bank (ECB) would cut interest rates again in July, although there could be further cuts later in the year.

"The HCOB PMI do not provide ammunition for another rate cut in July by the ECB," said Cyrus de la Rubia, chief economist at Hamburg Commercial Bank (HCOB).

The situation in France, the EU's second biggest economy, is however weighing on the single currency area's economic performance, according to the economist.

"It is evident that France's poor economic performance has significantly contributed to the deteriorating economic conditions in the Eurozone," de la Rubia said.

The survey showed both services and manufacturing output falling.

De la Rubia said it could be tied to the far right's drubbing of the party of President Emmanuel Macron in EU elections this month and his call for a snap vote on June 30.

"This unexpected turn of events has likely stirred up a lot of uncertainty about future economic policies, causing many companies to hit the brakes on new investments and orders," he added.

Capital economics' Senior Europe Economist Franziska Palmas however warned not to "overemphasise" the point since "the French PMI started falling in May before the political turmoil started".

In contrast, Germany, the EU's biggest economy, recorded a third successive monthly increase in business activity, the survey showed.