China Flexes

& Meta's Spam 2.0

January 04, 2025

China Plans to Implement Export Controls on Key Battery Components and Mineral Technology

China is preparing to impose export restrictions on specific battery components and advanced mineral processing technologies, a move that could have significant implications for the global electric vehicle (EV) supply chain. This measure is part of Beijing’s broader strategy to safeguard its technological advantage in critical industries, including clean energy.

The proposed curbs would primarily target materials and technologies essential for producing EV batteries, such as specialized anode and cathode materials, alongside proprietary know-how for processing minerals like lithium, nickel, and cobalt. These components are crucial for the development of high-performance batteries used in electric vehicles and renewable energy storage.

Source: Bloomberg

This initiative follows China’s earlier restrictions on the export of gallium and germanium, both critical for semiconductor production, signaling a more assertive approach to protecting its dominance in key sectors. Analysts suggest this could disrupt supply chains for countries heavily reliant on Chinese exports, particularly in Europe and North America, which are racing to expand their EV manufacturing capacities.

Amazon Pressures Merchants to Avoid Selling on Temu Amid Intensifying Price War

Amazon is reportedly urging Chinese cross-border merchants to refrain from listing lower-priced products on rival platform Temu, owned by PDD Holdings. This move comes as Temu rapidly expands its U.S. market share through aggressive pricing strategies, challenging Amazon's dominance. Merchants who offer cheaper products on Temu risk penalties from Amazon, including removal from the "Featured Offer" program, which significantly impacts their sales visibility. Additionally, Amazon is offering incentives such as free advertising and reduced commissions to merchants who agree to cease selling on Temu. These tactics highlight the escalating competition between Amazon and Temu in the global e-commerce landscape.

Why it matters: Temu has been attracting US consumers with its aggressive pricing strategies. The pressure on merchants to keep prices competitive on Amazon underscores the challenges the American e-commerce giant faces in protecting its market share against emerging competitors in the global retail landscape.

Meta’s AI Profiles: Innovation or Just Spam 2.0?

Meta’s experiment with AI-generated Instagram accounts is sparking backlash online. On Friday, images of profiles labeled “AI managed by Meta” circulated widely. These accounts, featuring personas like "Liv," a “proud Black queer moma of 2,” and others posing as dating advisors or wise grandfather figures, quickly drew criticism.

Initially intended as part of a 2023 AI test, Meta clarified that these profiles were not new products. However, the outrage didn’t stop, with users drawing comparisons to Black Mirror and fueling conspiracy theories like the “dead internet theory,” which claims the web is dominated by AI-generated content.

Many speculated Meta’s motives, with some accusing the company of using AI accounts to inflate engagement metrics and mislead advertisers about platform activity. Frustrations grew when users discovered they couldn’t block these accounts, intensifying concerns about the feature’s impact on user experience and trust. Meta has since deleted the profiles, but the incident underscores growing unease over the role of AI in social media.

World’s Top Companies by Revenue in 2024

U.S. retail giants continue to dominate the global revenue rankings, fueled by their international presence and the resilience of American consumer spending. Outside the U.S., the energy sector features prominently among the world’s leading companies by revenue, with state-owned behemoths like Saudi Aramco and China National Petroleum leveraging their vast global operations.

Key Highlights

Walmart: Securing the top spot, Walmart remains the world’s largest retailer and private employer. The company generates an astonishing $74 million in revenue every hour, with its global customer base making 255 million weekly visits. The U.S. accounts for 68% of its total sales, which have grown by 36% since 2019.
Amazon: Amazon ranks second with $574.8 billion in revenues, more than doubling its income over the last five years. This growth is driven by its cloud computing services, Amazon Prime subscriptions, and advertising revenue. Looking ahead, Amazon plans to expand further by offering vehicles for sale on its U.S. online marketplace in 2025.
State Grid: China’s state-owned utility giant, State Grid, holds third place with $545.9 billion in revenues. The company recently acquired two major electricity distributors in Chile and now controls over half of the country’s energy distribution. Additionally, State Grid is the world’s largest copper buyer, a critical material for power grid infrastructure.
Energy Titans: Saudi Aramco, Sinopec, and China National Petroleum rank among the top 10, driven by their oil production and refining operations. Notably, Chinese oil firms imported record volumes of discounted Russian crude in 2023, making Russia China’s leading oil supplier. Sinopec is now the world’s largest oil refiner, processing 5.2 million barrels per day, surpassing Exxon Mobil’s 4.5 million barrels daily.