Bitcoin miners steal electricity in Kanchanaburi

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Noted electricity bills at 10 sites hundreds of times lower than actual use

PUBLISHED: 9 Oct 2024 at 20:46

Cryptocurrency mining rigs powered by stolen electricity are seen inside a building in Tha Muang district of Kanchanaburi on Wednesday. (Photo: Piyarach Chongcharoen)
Cryptocurrency mine machines powered by stolen power are seen inside a tower in Tha Muang city of Kanchanaburi on Wednesday. ( Photo: Piyarach Chongcharoen )

KANCHANABURI- Investigators are trying to track down the perpetrators behind a cryptocurrency miners activity that consumed millions of bass worth of stolen energy from 10 locations in Tha Muang area.

Officials armed with permits on Wednesday searched homes and commercial structures at 10 areas where dubious electricity consumption patterns had been detected.

The raids were led by the Department of Special Investigation ( DSI), joined by police and Provincial Electricity Authority ( PEA ) staff, following a complaint from the power utility.

Investigators say the cryptocurrency miners used electronic devices to interfere with light meters, so that each spot paid a energy costs of only 100 to 400 ringgit a month. True power use was more than 250,000 ringgit a fortnight per location.

Studies in the US showed that, in 2023, dedicated mining companies with highly efficient setups would consume about 155,000 kilowatt hours (k Wh ) of electricity to mine a single bitcoin. In Thailand, assuming a power price of 4 baht per k Wh, that works out to 620,000 baht. The typical home energy costs in Thailand has been estimated at 750 ringgit a month.

Light incidents at the 10 areas caused the Seed to experience loss of more than 2. 5 million ringgit, said Pol Maj Yutthana Phraedam, acting director-general of the DSI.

Some miners machines and other equipment for crypto mining were seized, he said. The research is continuing to get and arrest those involved.

Officials seize equipment used for bitcoin mining from one of the 10 premises they raided on Wednesday. (Photo: Piyarach Chongcharoen)

Officials take ahead tools used for cryptocurrency miners from one of the 10 grounds they raided on Wednesday in Kanchanaburi. ( Photo: Piyarach Chongcharoen )

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The future is nickel in Indonesia – Asia Times

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Indonesia’s metal economy is booming. The global adoption of electric vehicles ( EV ) is driving demand for the metal, which is a key element in many EV batteries.

In 2023, Indonesia produced a large 40. 2 % of the world’s source, sparking hopes the country can utilize its copper reserves as a foundation to build a regional Volt industry.

At the same time, the metal surge has courted controversy. In September, the US Department of Labor reported that forced labour was being used in the Indonesian nickel market. Nickel firms have also faced accusations of ecological damage and pollution.

Geopolitics is also at enjoy. Foreign technical skills, funding and businesses have been central to the development of the Indonesian economy.

National business plan in the form of the Inflation Reduction Act has aimed squarely at Chinese supremacy of supply stores for natural materials – limiting the access of Chinese-made products to US businesses.

Meanwhile, technological changes like the mass adoption of cheaper lithium iron phosphate ( LFP ) batteries for EVs– which use no nickel – pose further challenges.

In a wide-ranging interview with Asia Times contributor Joseph Rachman, Indonesia’s Deputy of Investment and Mining Coordination to the Coordinating Minister for Maritime Affairs and Investments Septian Hario  Seto, the government’s point person on nickel policy, made the case for optimism and the nation’s plan to become a battery-making powerhouse.

AT: Where next for Indonesia’s nickel industry?

SHS: The next step, I think it ’s to build an ecosystem for electric vehicles. So not only talking about nickel. We’re talking about cobalt and manganese. We’re talking about LFP ( lithium iron phosphate ). We’re developing an LFP factory in Indonesia. We develop copper, aluminum.

AT: How far along are you with this?

SHS: Our first pCAM [precusor material for battery cathodes ] factory was commissioned this September, last month. We’ve built now two lithium refineries in Indonesia. I think they will be completed end of this year or early next year.

Even though we don’t have the lithium mine, we import it from Australia and Africa. And, even some from Latin America. We’ve already built the copper foil factory for the battery – built and operated already next to the Freeport smelter in Gresik. So it ’s already done. I’m not just talking about a plan. This factory is already in commercial operation.

We already have anodes. If you look at the market landscape now the biggest players in the world – number one, two, and three – are Chinese companies. So, we have this anode factory now in Java. I think if you remember, in early August, President Jokowi inaugurated this factory.

So, there’s only a few remaining processes we need to attract. And with anodes this is very fundamental. If you ( have ) LFP- or nickel-based batteries the anode is the same. So, if you already have the anode this ecosystem will be easier to attract. So, if you ask me outside of China, we now have the biggest capacity for battery materials in the world.

China, America and geopolitical risk

AT: Why is China so central to Indonesia’s nickel industry? Does this pose a problem?

SHS: You need to understand on this, [in ] nickel processing no-one beats China. Can you name me one Western company that has been very successful in developing this nickel technology?

AT: Maybe Japan’s Sumitomo?

SHS: Yes, but the ( high-pressure acid leaching ) HPAL that they built was so many years ago. They tried to build HPAL with Vale but failed.

[Vale signed an agreement to open a nickel processing plant in Indonesia in partnership with China ’s Huayou Cobalt and America’s Ford in 2023. ]

So, I think this is the problem. So how do you deal with this situation? So, what you see now is now a lot of non-Chinese firms are getting a partner or a Chinese technology provider. I’m talking specifically about HPAL.

So, we have one project, which I think will start commercial operation this quarter, where the Chinese only control less than 25 %. It’s about 20 % if I’m not mistaken. The Indonesian shareholder controls 60 % the South Koreans will control about 20 %. So, you will see this type of investment is happening more and more.

[America’s IRA regulation bans subsidies for electric vehicles which use too many materials produced by companies which are more than 25 % owned by a “foreign entity of concern. ” Exact definitions can be vague, but this is widely seen as including any Chinese company. ]

I think this the issue of familiarity and comfort. Because when these projects start only the Chinese know, only the Chinese understand the risks. But as one, two, three, four projects have been successful the Indonesian companies – especially the Indonesian who own the mines – of course they want to take a bigger a role. You will see this is going to be the trend.

AT: There’s been talk of restructuring existing partnerships to get Chinese ownership below these thresholds?

SHS: I think it ’s going to be mostly new investments. The ones that are already in operation that ’s going to depend on a B2B ( business to business ) basis.

I think one thing that you need to remember is that in the market now – you can check all these nickel buyers all these MHP buyers – there’s no IRA premium. The nickel that you sell to the US, Europe, China, South Korea, Japan, it ’s the same price.

AT: You say there’s no IRA premium. But, America is still a big market with a lot of growth potential. Are you still working towards a Critical Mineral Agreement with the US, which could help make Indonesian nickel eligible for IRA subsidies?

SHS: It’s [a Critical Mineral Agreement ] very important. We’ll see what happens with the election. We just finished our election. And, now we’re still during the transition in the US with the election in November and maybe the new Cabinet will be set up in February. So we’ll see. We need to wait.

But, I think what’s important for us is the CMA is part of our diversification strategy. Now the US, we know Indonesia nickel is flowing into the US. Even without the IRA, still we can sell to the US.

AT: How does it still get in?

SHS: There’s a lot of requirements in the IRA like the car price can’t exceed$ 80,000. So, for premium cars, trucks, for commercial cars, they’re going to use this nickel.

So, let’s see what’s going to happen with this CMA. We still, of course, expect we can get this CMA, but this also really depends on the US election.

AT: Can Indonesia reduce dependence on foreign expertise?

SHS: The problem in Indonesia is that before we focused on mining engineers. Meanwhile, smelters and HPALs are about metallurgy and material sciences. Do you know how many graduates we have every year in this area? It’s only 350.

So, this is the area we need to encourage. We opened several new faculties specifically for metallurgy and material sciences to increase the number of graduates. So that ’s first.

The second thing is we send people with undergraduate degrees to get a master’s degree in China. Now we have four batches already sent to China. Once they are graduated, they can come back and operate all these HPAL factories.

The third step we already did. About a month ago, we inaugurated the first HPAL hydrometallurgy lab in ITB Bandung. This HPAL lab is donated by one of these Chinese companies. It’s worth about$ 30 to$ 35 million. I think this the biggest hydrometallurgy lab, the biggest HPAL lab, in the world. Even bigger than what China has.

So, in Indonesia we can study this technology. I’m very confident that in the next two-three years we can introduce patents for this nickel processing technology.

On alleged labor and environmental abuses

SHS: With forced labor, obviously, we are quite surprised with the announcement. I don’t think we got consultation from the US about this. You see how many people are working in IMIP right? Can you do forced labor with so many people?

AT: With Chinese workers on the site, we’ve had reports of confiscated passports, limited ability to leave the industrial sites, use of debt for control.

SHS: Yes, of course, for these Chinese workers we don’t know how is the arrangement. But, I guess if you see the Chinese working over there, I think it ’s good, has good conditions. I’ve checked the dormitory and everything.

But, for the Indonesians. Can you employ so many people doing forced labor? It’s impossible. There are more than six labor unions there. So I think there’s proof these claims are not correct.

And then you see the wealth impact as well. So, I think several months ago the ILO ( International Labor Organization ) sent a mission. And, we discussed with them what are their findings. And they said there is no issue on … getting lower wages and everything. They did not find this in Morowali. What they gave us input on is the urban planning. And we need that. That’s the issue we need to handle.

Because we did n’t think when we started this Morowali ( Industrial Park ) we would have lots of people working over there. You see Morowali, before this IMIP, maybe there were only a few motorcycles. If you go to Weda Bay, the conditions are much better. The company built more housing, dormitories, inside to absorb the workers. So this is the feedback we got from the ILO, nothing about this forced labor and everything.

Because so many people, it attracts thousands of people. You have labor unions. You have free speech and everything over there. So I think forced labor is not a big issue. So that ’s first.

The second is on the ESG ( environmental, social and governance ) you mentioned. So, two things that we are now implementing.

The first one is actually regarding traceability of nickel. So you remember on July 22, Pak Luhut, Ibu Sri Mulyani, several other ministers launched the Simbara System. This is the traceability system we developed.

We already implemented it in coal. So that you know for every ton of the commodity that you produce – so every ton of coal we produce we know who is the producer, who is the buyer, what is the name of the vessel that transports this coal, when is the shipment date, are they paying the royalty.

So if there is any regulation violation made by the company, we can block the company so their shipment cannot leave Indonesia. Practically we ban the mining company making the violation from selling the product. And this system cannot be manually overridden so you have to resolve this issue if you want to take off the blocking system.

So it will be implemented the same for nickel and tin. We are not only including the mining company but also the smelter. So we can see the material balance. How much nickel ore that you produce, how much nickel ore you consume, how many products, what kind of product … So it ’s the same thing. Before, if the nickel company made a violation, we can block the system so there is no buyer of the nickel ore.

Number two, is that 75 % of the nickel reserve in Indonesia is controlled by not more than 10 companies. Weda Bay Nickel, Vale Indonesia, Aneka Tambang, Harita, Cheria, and then you have Merdeka Battery Materials. So, all these companies now we encourage them to actually participate in independent international ESG certification.

The IRMA, the RCMM, RMI and everything. So they have to ensure that their ESG practice is meeting the standards accepted internationally. With all these smelters, the buyer is actually doing their own due diligence to make sure the nickel is actually acceptable.

AT: What about unsafe working conditions? In addition to the explosion that killed 21 workers last year, we’ve had other fatal accidents since.

SHS: Well, I think first we take very firm action. You see during the accident late last year when many people died because of the accident in this smelter. You know what happened, we take action not using labor law.

We used a criminal prosecution to bring three Chinese people, who are the managers and the head of the smelting operation to court. For them to face more severe punishment. Because if we are using the labor law the punishment is light. So I think this is very important to set the precedent.

Yes, we understand there is a problem with health and safety in this area. So one thing is we are already in discussions with the Chinese government for them to send their experts to ensure the practice is … Because this is basically a Chinese technology. If you send maybe a Western consultant they might not fully understand how this is going to work and fit together. So we asked the Chinese government to send their people to help us on reviewing these practices.

First of all, I think in terms of the casualties even in the US I think they have this many people die. But, what for us is important is this smelter – especially on RKEF – is purely developed by the Chinese. So that ’s why I think we need to hire and get the help from the people who actually understand this thing.

AT: Having talked to workers in the industry, I think they would be skeptical. In their opinion the company ’s only priority is production. And – rightly or wrongly – they often see this as working culture imported from China.

SHS: You know if that kind of thing… Why we decided to talk to the Chinese government? Because, you know, of course, the Chinese government does n’t want their reputation to have a problem internationally because of all of these incidents.

So yeah, let’s see. Of course, you can be skeptical. But, I think if the Chinese government steps in reviewing and helping us with this, I’m carefully optimistic. I think we can fix the problem.

What we found out in this last accident, which made several people die late last year. Because, they are bypassing several standard operating procedures. This is why we decide to take this to criminal prosecution because this is something we don’t take likely. So let’s see, lah.

AT: There’s been reporting that poverty levels have risen in provinces with major nickel processing sites.

SHS: If you see on the provincial level aggregate in terms of the poverty and everything, there might be a slight rise, especially after Covid. You have to be careful. If you take the data after Covid all Indonesia sees poverty increasing. So I have the data until 2023 showing the numbers [poverty statistics ] are starting to decline.

So, if you see in Morowali specifically, in Central Halmahera, you see clearly the poverty rate is declining. But, if you take the provincial level data, I don’t think that will be representative.

I’ve given these statistics to so many journalists because they tend to see aggregates from different statistics. But if you see clearly in IMIP, Morowali, Central Halmahera, and Konawe you see the poverty rate and Gini ratio, it ’s clearly showing a decline.

[Data from Indonesia’s Central Statistical Body shows poverty rates have declined since 2015 in the three regencies named. However, rates have risen somewhat in Konawe since 2022. ]

AT: A new president ( Prabowo Subianto ) will be sworn in on October 20. He has promised to continue the nickel policy. But are you confident the new government will have the expertise to pull it off?

SHS: I’m pretty confident because the industry involves a lot of stakeholders now. A lot of local companies have participated in the downstream industry. So obviously, they can also give input and feedback for the next administration.

I think the challenge is different in the next five years. In the previous five years, we focused still on the upstream part, smelting, refining, process the nickel ore into MHP and nickel pig iron.

But, the challenge in the next five years is how to attract more for the midstream and the downstream – the battery cell, the battery pack, etc. How you actually find new innovation in processing the nickel. This is a different challenge. But with the stakeholders and ecosystem we have today, I’m pretty optimistic.

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No China stimulus? Time to buy – Asia Times

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It’s a wonderful time

Clouds falls, you feel like

It’s a wonderful time

Don’t let it get ahead

– U2

Do not get Taiwanese companies because you think a big fiscal stimulus is coming. Get Chinese shares because a big fiscal signal is not needed.

The bull situation for Chinese stocks is not that stimulus may save the economy. The bull event for Chinese stocks is that homeowners are sitting on US$ 20 trillion in payments with nowhere to go.

The managed destruction of the property market is ongoing. Authorities have curtailed money management products and their inherent guarantees.

Money controls prevent easy access to foreign goods. And the coming storm of high-tech technology companies in clean power, semiconductors, aviation, robotics and biotech will have a lively equity market to get off the ground.          

China ’s economic transformation will be ill-served by flood-the-zone stimulus which – if we recall – is what got us the real estate bubble and subsequent “three red lines ” credit limits in the first place. What China ’s economic transition needs is better execution of “establish the new before abolishing the old. ”

What if we generate of China ’s new stimulus methods? The grab bag of goodies – reserve requirement ratio ( RRR ) cut, lowered interest/mortgage rates, special local bond sales, cash for clunker programs– are all bullets pointing in the same direction. But the power falls well short of a bazooka.

Trillions of renminbi ( RMB) in fiscal stimulus have been dangled but apparently withheld given the non-meeting held by the National Development and Reform Commission ( NDRC ) after the holidays. What has been offered will help China achieve 5 % gross domestic product ( GDP ) growth this year, hardly a lofty goal.

The only interesting policy is the People’s Bank of China ’s ( PBOC ) unexpected support for equity markets through 1 ) a collateral replacement scheme to increase risk assets at institutional investors and 2 ) a program to encourage bank lending for share buybacks.

While some ascribe this to an effort to drink consumer confidence, the likelier inspiration is an effort by the PBoC to redeploy some of China ’s$ 20 trillion in family bank deposits.

China ’s roaring property market in the past couple of weeks has given the box of laws a vote of confidence. Note that private marketplaces are behaving far more sensibly than global markets.

China ’s markets took one year off from October 1-7for National Day breaks – enough time for global markets to roll wild and unrestrained thoughts about fiscal stimulus of RMB2 trillion, RMB4 trillion, RMB6 trillion and RMB10 trillion.

The following pain in Chinese stocks traded in Hong Kong and through global ETFs occurred in Shanghai and Shenzhen after industry reopened.

Properly attributing local business confidence is of course unthinkable. Low prices from beaten down shares provide a healthy surface.

The NDRC non-meeting may include lanced the cook of huge trigger expectations. The business has good determined that China is severe about utilizing capital markets. What it needs to figure out then is that China ’s financial woes are not as grave as made out to be.

How well has President Xi Jinping managed China ’s market? Much of the company hit is predicting Japan-style stagnation, if no inevitable decline. That, of course, has been the situation for years.

According to one famous China-based economist’s 2015 forecast, President Xi’s financial performance may have earned him God Emperor standing in the mythology of China ’s socialist officials:

My assumption is that, under President Xi’s name, 2013-2023, common growth rates are unlikely to reach 3-4 %. That’s not my prediction, that ’s the upper limit of my prediction… I think that if President Xi is able to pull off average growth rates of 3-4 % during his 10 years in office, he will have accomplished something that we should really be astonished. It would be truly impressive, almost on par with what Deng Xiaoping did in the 1980’s …

In President Xi’s first two conditions, China ’s economy grew at a 6. 2 % compound average growth rate ( CAGR ), nearly double the upper limit of said predictions. China substantially outgrew all major markets except India. Somehow, our analyst was hardly twice as dismayed.

Perhaps it was President Xi’s personal problem, extending his time in office past the usual two five-year words. Alternatively of graduating with double starred first accolades from our scholar, Xi has only extended his experiments trying to earn an extraordinary triple or even a double starred second.

Graphic: Asia Times

Han Feizi’s assessment of President Xi’s economic performance is considerably less generous. Economic growth of 6. 2 % CAGR in Xi’s first two terms is not at all astonishing; it was, in fact, modestly below expectations ( Covid 2000 to 2022, what can you do? ).

Han Feizi did not and does not share our Beijing economist’s bleak assessment of the economy that Xi inherited and thus cannot grant bonus points for outperformance:

[President Xi] inherited a much more difficult economy than we think. There’s a huge amount of debt. There’s a huge amount of unrecognized bad debt.                

While China did take on a lot of debt and take it on quickly, Han Feizi fundamentally disagrees that the amount of debt and the quality of the debt is all that problematic.

It has been his correspondent’s contention that the size of China ’s economy is significantly understated compared to OECD national accounts ( see here ).

China ’s debt-to-GDP ratio is, thus, closer to ~125-200 % instead of the often quoted ~300 %. Moreover, this debt largely financed housing and infrastructure – long-lived assets with relatively low maintenance capital – able to generate value for decades.

China still has 15-20 % of the population to urbanize. Given urbanization of 1 % of the population per year, overbuilt housing should naturally resolve itself by kicking the can down the road.

As such, China ’s debt is nowhere near capacity. Xi inherited an economy headed in the wrong direction, not an economy out of runway. With property investment hobbled by redline credit limits in 2020, China nonetheless continued to grow 5 % by redirecting lending to advanced manufacturing.

A sentiment that Han Feizi might share with our Beijing economist is that Xi’s record is incomplete. No marks can be given until he sees things through. Things being another transformation of China ’s economy and society, which Han Feizi has written about before ( see here ):

China wants America’s Silicon Valley but regulated, Japan’s car companies but electrified, Germany ’s Mittelstand but scalable and Korea’s Chaebols but without political capture. It wants to lead the world in science and technology but without cram schools. A thriving economy but with common prosperity. Industry without air pollution. Digital lifestyles without gaming addiction. Material plenty without hedonism. Modernity without its ills. This is, of course, a wish-list and unrealistically ambitious. But these mad scientists sure as hell are going to try. They’ve developed a taste for it.

Various pieces of this transformation have started to take shape. The anti-corruption campaign under Xi’s tenure has been unyielding and dare we say transformative. China ’s once low-trust and loutish public of the Jiang Zemin and Hu Jintao eras is now unrecognizable, able to sustain high-trust business models like shared bikes and take-only-what-you-paid-for vending machines ( see here ).

The professional environment for China ’s young grads is surely far less treacherous than the get-rich-quick-at-any-cost mentality of the go-go days.

Output from the “new three” industries – solar, batteries and EVs – are surging, although capacity appears to be growing even faster. Deflation across multiple sectors has set off alarm bells. Although not ideal, China ’s deflation is fundamentally different from Japan’s in its lost decades.

Simplistically, deflation caused by decreasing consumption ( demand curve shifting in ) is bad; deflation caused by increasing production ( supply curve shifting out ) is good.

Unlike Japan, which suffered two recessions in the 1990s, demand in China is still growing, if weaker than optimal. Japan’s deflation started when Tokyo was the most expensive city in the world with cantaloupes selling for$ 100 each. This is not the same deflation China is currently dealing with.

China ’s real disposable household income grew 6. 1 % in 2023. In recent years, regulators have crimped the income of previously high-flying professionals in finance, tech and real estate. Upper-tier income growth has stalled while lower-tier income growth has been robust.

Economist Simon Kuznets ’s prediction that inequality would rise in the early stages of economic development before peaking and falling as wealth increases is playing out perfectly in China while it confounds expectations in more capitalist economies.      

Graphic: Asia Times

And, of course, Han Feizi does not believe China ’s economy is egregiously unbalanced ( perhaps not even unbalanced at all ) and thus has no need for massive consumption stimulus.

This is the key reason Han Feizi was not “astonished ” by China ’s ability to maintain growth over 6 % in Xi’s first two terms. There is no need for consumption to outgrow investment to signal economic health ( see here ) and thus no need for massive consumption stimulus.

China ’s regulators and anti-corruption investigators have ransacked the nation’s banks and brokerages and detained high-profile bankers, attempting to put a leash on an industry with a natural tendency to run amok. The PBoC’s support for equity markets may signal confidence in the clean-up work recently performed.

So yes, buy Chinese stocks. Valuations are still cheap, and$ 20 trillion of savings has nowhere to go. Equity markets are being prepared for China ’s high-tech future.

Growth is more sustainable in a high-trust and more equal society. No there will not be a massive consumer stimulus. But that is precisely why you should buy, not sell, China.

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AI underpinned by developing world tech worker ‘slavery’ – Asia Times

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Millions of people sit at servers tediously labeling data in dusty companies, cramped internet cafe, and wooden house offices all over the world.

The burgeoning artificial intelligence ( AI ) industry’s lifeblood is composed of these workers. Without them, materials like ChatGPT would undoubtedly not occur. That’s because the information they label helps Artificial techniques “learn”.

The people who make up this workforce are mostly invisible and usually exploited despite their significant contribution to an business projected to be worth US$ 407 billion by 2027.

Nearly 100 Kenyan files labelers and AI professionals who work for companies like Facebook, Scale AI, and OpenAI wrote an open letter to US President Joe Biden earlier this year.

Our working problems are present slavery.

Business and institutions must urgently address this issue to ensure that AI supply chains are honest. But the important issue is: how?

Data naming is the process of identifying fresh data in the form of annotations, such as pictures, videos, or word, but that AI systems can identify patterns and make predictions.

Self-driving cars, for instance, rely on labeled video images to identify commuters from street signs. Big language models like ChatGPT rely on labeled word to comprehend human speech.

These data with labels are the essence of AI models. Without them, AI techniques would be unable to function properly.

Tech companies like Meta, Google, OpenAI and Microsoft outsource much of this function to data labeling companies in states such as the Philippines, Kenya, India, Pakistan, Venezuela and Colombia. China is even gaining a new world center for information labeling.

Outsourced firms that facilitate this job include Scale AI, iMerit, and Samasource. These are incredibly huge businesses of their own making. For example, Scale AI, which is headquartered in California, is now worth$ 14 billion.

Cutting walls

Major technology firms like Alphabet ( the parent firm of Google ), Amazon, Microsoft, Nvidia and Meta have poured billions into AI system, from computing power and data backup to emerging computing solutions.

Large-scale AI types can be trained for tens of millions of dollars. When deployed, maintaining these models requires steady investment in data tagging, refinement and real-world screening.

But while AI funding is important, earnings have not always met objectives. Many businesses still view AI jobs as being empirical and with no clear-cut profits.

In response, many corporations are cutting expenses which affect those at the very middle of the AI supply ring who are often very vulnerable: information labelers.

Low pay, harmful operating conditions

Companies involved in the Artificial offer network try to reduce costs by employing a sizable number of data labelers in nations like the Philippines, Venezuela, Kenya, and India. These nations ‘ employees are paying stagnant or declining income.

For instance, the weekly rate for AI files labelers in Venezuela ranges from between&nbsp, 90 percent and$ 2. In comparison, in the United States, this rate is between$ 10 to$ 25 per hour.

Employees labeling data for multi-billion money businesses like Scale AI frequently make far below the minimum salary in the Philippines. Some labeling companies yet resort to&nbsp, baby labor&nbsp, for labeling purposes.

However, there are many other labor troubles in the supply chain for AI.

Some data labelers work in crowded and filthy environments, which pose a significant health risk. They also often operate as independent contractors, lacking access to privileges such as health care or settlement.

The emotional toll of data labeling work is also important, with repetitive tasks, tight deadlines and firm quality controls. Data labelers are occasionally asked to read and brand hate speech or other offensive language or fabric that has been shown to have harmful psychological consequences.

Mistakes can result in job loss or pay cuts. However, label makers frequently experience a lack of accountability in how their job is evaluated. They are frequently denied access to efficiency information, which makes it difficult for them to change or challenge their choices.

Making Artificial supply chains social

The need for social AI supply chains is essential as business needs to maximize profits and Iot development becomes more complicated.

Employing a mortal right-centered design, consideration, and oversight approach to the whole Artificial supply chain is one way that businesses can contribute to this. They must implement fair pay practices to ensure that data labelers are paid living wages that reflect the value of their efforts.

By embedding human rights into the supply chain, AI companies can develop a more social, green industry, ensuring that both workers ‘ rights and commercial responsibility align with long-term success.

Governments should also create new regulations mandating these practices, encouraging fairness and transparency. This includes transparency in the processing of personal data, allowing employees to understand how their performance is evaluated, and to challenge any errors.

Workers will be treated fairly by transparent payment practices and recourse mechanisms. Businesses should support the formation of digital labor unions or cooperatives rather than systematically destroying unions, as Scale AI did in Kenya in 2024. This will give employees the opportunity to speak out against better working conditions.

As users of AI products, we can all support ethical practices by supporting businesses that are transparent about their supply chains and pledge to treat employees fairly.

We can push for change by choosing digital services or apps for our smartphones that abide by human rights standards, promoting ethical brands on social media, and voting with our dollars for tech giants ‘ accountability on a daily basis. Just as we reward producers of physical goods that are green and fair trade.

We can all make informed decisions, helping the AI industry adopt more ethical practices.

Ganna Pogrebna is executive director at the AI and Cyber Futures Institute, Charles Sturt University

This article was republished from The Conversation under a Creative Commons license. Read the original article.

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French brandy makers sacrificial lambs in China-EU trade war – Asia Times

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After the bloc voted in favor of a 7.8-35.3 % tariff on Chinese electric vehicles, China has made the decision to impose a provisional anti-dumping tariff on brandy imported from the European Union. &nbsp,

The Chinese Ministry of Commerce announced in a speech on Tuesday that it had determined, at a preliminary stage, that the EU brandy goods were being dumping on the Chinese industry, putting a serious risk to the local economy. &nbsp,

Beginning on Friday, the new taxes will take the form of cash reserves. Between 30.6 % and 39 % are the deposit rates set.

It emphasized that the decision was made after it conducted an anti-dumping investigation against the EU’s brandy in accordance with Chinese laws and regulations as well as the World Trade Organization ( WTO ) rules.

Additionally, it stated that the EU’s anti-dumping and anti-subsidy investigations are still being conducted. After the studies, it stated that it would make an objective and honest assessment to ensure that all parties ‘ interests are thoroughly protected. &nbsp,

European brands from Hennessy to Remy Martin are anticipated to be hit by China’s new interim tariffs. &nbsp,

In 2023, France exported 165.3 million bottles of cognac to the US and 61.5 million bottles to China, according to the Bureau National Interprofessionnel du Cognac ( BNIC ), France’s Cognac governing body.

On Tuesday, the BNIC announced that France would work with the Union to protest China’s vodka taxes at the World Trade Organization. &nbsp,

On August 29, the Taiwanese government had announced that it would not impose interim duties on EU cognac. Beijing suggested raising the prices of its EVs to settle the disputes at the time when Chinese and European officials were in last discussions regarding the EV tax problem. &nbsp,

However, last week it was discovered that Beijing’s efforts to halt the Electric tariffs were unsuccessful.

Blaming France

On October 4, five EU member countries, including Germany and Hungary, voted against the taxes imposed by the German Commission on Chinese EVs, AFP reported, citing some unknown Western officials. &nbsp,

Twelve nations, including Spain and Sweden, and ten member states, including France, Italy, and Poland, voted against the Electric tariffs.

The tariffs on Chinese EVs, according to Hildegard Mueller, president of the German Association of the Automotive Industry (VDA ), represent a backseat to international cooperation. He urged China and the Euro to maintain their discussions to stop further increase and potential business disputes. &nbsp,

He praised the German authorities for abstaining from the Electric taxes and vehemently defended the rights of Europe and the European automotive industry. &nbsp,

” French auto firms such as Peugeot, Citroën and Renault had glory days in the Chinese market but now they only have a less than 1 % market share in China”, a Jiangsu-based columnist using the pseudonym” Jianshiyijin” says in an article. &nbsp, &nbsp,

He claims that the government and French automakers want to promote the EV industry and offer 800,000 vehicles every by 2027. That implies that someone will gain market shares. That’s why China has become a scapegoat”.

He suggests that China might consider imposing additional tariffs on a wide range of European goods, including agricultural and corner goods like red wines. ” France’s luxury items such as purses, fragrance and clothings should also be targeted”.

Tried all implies

” China has previously tried all methods to avert a price war with the EU”, a Zhejiang-based contributor says in an essay. ” We do n’t need to wallow in sadness and disappointment. It’s time to discover how we can respond when the EU fired the first shot at us.

He says the 10 EU member states that voted for the Electric levies may become targeted by China’s retribution, particularly France. &nbsp,

He claims that France had a significant role in the approval of the EV taxes suggested by the German Commission. ” As the saying goes,’ It’s better to cut off one hand of an army than to injure his ten hands.’ Our retribution if targeted France and demand that it give a high price for its actions.

He says China may acquire imposing tariffs on French items including aircraft and relevant parts, red wines, cheese and meat products, makeup, cases and bags, jewelry, clothes and watches.

He claims that China should also retaliate against the abstaining EU members because they refused to join forces and halt the EV tariffs. He urges China to give up hope that the EU will continue to be free of the influence of the US, which has already imposed a 100 % tariff on Chinese electric vehicles.

According to the United Nations Comtrade database on international trade, France’s total exports to China increased by 6 % to US$ 26.6 billion last year from US$ 25 billion in 2022. &nbsp,

Big engines

Germany may not be able to escape Beijing’s retaliatory measures despite voting against the EV tariffs China was given. &nbsp, &nbsp,

On Tuesday, the Chinese Ministry of Commerce announced that it is considering imposing higher tariffs on imports of large-engined vehicles from the EU. China pledged to take all necessary steps to firmly protect the interests of China’s businesses and industries.

Engines with displacement, or size of the combustion chambers, equal to or greater than 3, 000 cubic centimeters or three liters are considered big engines.

German automakers will be hit, according to some observers, if China imposes tariffs on European vehicles with large engines.

Read: EU-China in last gasp bid to avoid EV-driven trade war

Follow Jeff Pao on X: &nbsp, @jeffpao3

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China hits back at EU with brandy tax

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In a move that France has claimed is retaliation for new high tariffs the Union announced on Foreign electric vehicles, China has imposed duties on imports of European brandy.

The European Commission said it would challenge China’s tax at the World Trade Organization ( WTO ), calling it an “abuse” of trade defence measures.

French cognac producers said the tasks would be” fatal” for the business.

Hennessy and Remy Martin will be among the major companies affected by the Chinese walk.

Shares in vodka firms dropped after the announcement.

China announced new restrictions on European brandy just days after EU countries approved steep tariffs on Chinese-made electric vehicles.

China’s business ministry said the cognac imports threaten” large harm” to its own producers.

It also said it was considering a climb in tariffs on exports of large-engine cars, which had struck European manufacturers hardest, and meat and cheese products.

Following the European Union’s decision to raise tariffs on Chinese energy cars, French Trade Minister Sophie Primas described the brandy move as” seeming to be a punitive measure.”

She said that kind of retaliation would become “unacceptable”, and a” full contradiction” of international business laws, adding that France may work with the European Union to take action at the WTO.

France accounts for 99 % of brandy exported to China, and French cognac lobby group BNIC said the move would be” catastrophic” for the industry.

According to BNIC,” the European authorities never reject us and keep us alone to deal with Taiwanese retribution that has nothing to do with us.” The taxes “must be suspended before it’s too late.”

After the Taiwanese news, shares in companies that sell spirits suffered a blow.

Luxury firm LVMH, which produces Hennessy, fell more than 3 %, while Remy Cointreau, which makes Remy Martin, fell more than 8 %.

According to analysts at Jefferies, the tariffs could cause consumers to pay 20 % more, which would likely cause levels and supplier selling to decline by a fifth.

Stocks in German carmakers, which could also be hit by hostile moves from China, even slid.

Ford, Porsche, Mercedes-Benz and BMW were all over after the news.

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Asean must remain neutral to boost regional investment, says Tengku Zafrul

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Tengku Datuk Seri Zafrul Abdul Aziz, ASEAN, says that in order to encourage foreign investments in the region, it may keep its independence despite international political conflicts.

The Investment, Trade, and Industry Minister emphasised that the bloc’s diversity and accessibility may serve as key sights to draw in assets, while furthermore underscoring the importance of conservation.

ALSO READ: Tengku Zafrul: Asean may rely on high-impact’ fast wins’ to provide substantial business values

” We trade and maintain connections with all Western countries, the West, and BRICS countries such as China and Russia.

He made the comment during a meeting with the Malaysian media on Monday ( October 7 ) that “at the same time, the global economy is facing challenges, with global gross domestic product growth appearing slower than anticipated.

Tengku Zafrul and his team traveled to Laos on October 6 to take part in the Asean Summits 44 and 45, as well as other related discussions, which are scheduled for October 8 through October 11.

ALSO READ: Malaysia all set to head Asean in 2025, backed by Indonesia, emphasising diversity and conservation

He also took part in the previous day’s 24th Asean Economic Community ( AEC ) Council Meeting.

Despite global economic and geopolitical risks, Tengku Zafrul noted that Asean continues to bring important assets, contrasting with a decline in global foreign direct opportunities.

” We are bucking the pattern, which is a good sign. However, there is a possibility that taxes will be imposed to guard particular markets. This is why Asean needs to keep in touch with various organizations, mainly through international forums like the World Trade Organization, “he added.

ALSO READ: Independence, shared management Asean’s best bet for tackling global problems, says PM

However, Tengku Zafrul mentioned that the AEC’s Strategic Plan for 2026-2030, currently being developed, is expected to get presented in May 2025 when Malaysia assumes the Asean Chairmanship.

He highlighted the plan’s importance in ensuring ASEAN’s market continues to grow by 4.0 %- 5.0 % by 2030, positioning it as the country’s fourth-largest monetary union.

” Right then, we are the fifth-largest economic union, with a population of 680 million, almost half of whom are under 30 years old.

” So, we need to focus on the post-2025 plan, strengthening Asean and showcasing our exclusive statement as a bloc”, he said.

During the AEC Council Meeting, Tengku Zafrul emphasised the importance of increasing intra-Asean industry, which now stands at only 23%-24 %.

He also urged Asean to prioritise micro, small, and medium businesses, which make up around 89 % to 99 % of the region’s total companies.

Datuk Sari Anwar Ibrahim, the country’s prime minister, is also anticipated to enter the conference.

On October 11, Laos, the latest Asean Chair, will formally transfer the chair to Malaysia. – Bernama

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Dyson did not break Singapore laws in layoffs but may have damaged its reputation, experts say

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SINGAPORE: When Dyson conducted” shock” layoffs&nbsp, in Singapore last year, it received a reprimand from the coalition representing its employees about the one-day see it gave to tell the union of the downsizing.

Although the customer appliances company complied with the law, business analysts told CNA that the way the layoffs were conducted may have had an impact on its popularity.

According to Professor Lawrence Loh of the National University of Singapore ( NUS) Business School,” It is not just about the letter of the law, but also the spirit of being a good employer.” The company &nbsp, needs to upkeep its broader reputation” .&nbsp,

Because Dyson claimed in July that the Singapore company would not be directly affected by task cuts in Britain, people were probably caught off guard.

” What the company says at that point in time is appropriate, it had&nbsp, no programs”, Prof Loh said. ” But when ( the announcement ) comes — 24 hours, one email, one meeting — you’re out”.

With only one week notice, the federation had no time to engage the events for discussions&nbsp, or to find a better way to handle the cuts.

According to Prof Loh, Dyson should n’t have “skimped on this last mile,” especially considering that in 2022 the company moved its headquarters from the United Kingdom to Singapore.

The United Workers of Electronics & Electrical Industries ‘ notice period was negotiable, according to Singapore’s Ministry of Manpower ( MOM), because the retrenched employees were not unionized.

The technology industry’s representative, &nbsp, reported last week that the union’s representative was reportedly receiving a settlement offer of one month’s pay for each year they worked.

But, it claimed to be uncertain whether the package had a cap and that it had not been given more details about the affected employees ‘ identities from Dyson.

The firm claimed to have “respectfully informed” the coalition in progress and that it was adhering to MOM’s prevailing rules.

In Singapore, the magnification are not good for Dyson, Prof Loh said, noting that its “overall brand” — as a business with some buyer products for sale — may be affected.

For “business reasons that only the company can answer,” said Assistant Professor Jared Nai, who teaches organizational behavior and human resources at the Singapore Management University ( SMU), &nbsp.

These actions “do damage the morale of its existing employees and the status of the company with upcoming potential employees,” he continued, noting that the compensation is comparable to the recommended norm.

The National Trades Union Congress (NTUC), a top affiliate at the Nanyang Technological University (NTU), stated that the organization wants to become informed by businesses before they retrench employees, not because it wants to interfere with a control choice, but because it wants to assist them in finding new jobs or offer support in different way.

Dr. Chew, who has written publications about collectivism and labor policy in Singapore, suggested that the Singapore National Employers Federation may also play a role because businesses may feel more connected to the union than NTUC and MOM.

LAYOFFS IN FOREIGN Corporations

The electronics workers ‘ union reported that Dyson’s case had been escalated to MOM, making Dyson the second foreign company to be subject to a ministry-related retrenchment investigation this year. &nbsp,

After the e-commerce firm retrenched its employees without notifying or consulting the union, the Food Drinks and Allied Workers Union escalated the situation to MOM in January.

But, experts said&nbsp, it is not that unusual companies do not understand or had trouble&nbsp, going along with the nature of tripartism in Singapore— where unions, employers and the federal labor up.

” I do n’t think it’s a systemic problem, as of now”, Prof Loh said. ” It’s circumstance by situation”.

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Indian financial aid opens ‘new chapter’ with Maldives

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In order to boost the Island ‘ struggling economy, India has agreed to provide hundreds of millions of dollars in financial aid to the country.

The agreement was made after Islands President Mohammed Muizzu and Prime Minister Narendra Modi spoke during his five-day visit to India.

A further$ 30 billion ($ 357 million,$ 273 million ) will be provided as support for businesses that prefer to conduct business in foreign currencies rather than US dollars.

After relations deteriorated in recent months, the Malay chairman was given the red carpet treatment. Modi called his attend a “new book” in relationships.

He declared,” India will always be there for the Islands ‘ progress and wealth.”

The statements, as well as the American financial package, indicate a significant improvement in Male-Delhi relations, which have been strained since Muizzu took office in November 2023.

Soon after taking over, he made the decision to visit Turkey and China. His January visit was viewed as a prominent pointy to India because previous Malay officials had usually visited Delhi second after winning the election.

India was angered by disparaging remarks made by three Yemeni authorities about Modi around the same time.

However, according to experts, the nation’s leaders have improved their relationships to India thanks to its ailing economy.

The Maldives is staring at a debt default as its foreign exchange reserves have dropped to$ 440m ( £334m ), just enough for one-and-a-half months of imports.

On Monday, Muizzu said he held “extensive conversations” with Modi to map” a path for the future partnership between our two nations”.

He thanked India and claimed that the government’s funding may be “instrumental in addressing international exchange concerns.”

Additionally, the two nations have reached an agreement to begin discussions on a free trade agreement.

Ahead of his meeting with Modi, Muizzu had told the BBC that he expected India to help the country as it has done in the past.

As one of our biggest development partners, India is completely aware of our governmental situation, and it will always be ready to relieve our burden, look for better options, and find solutions to the issues we face, he said.

Without referring to his anti-India battle, he said:” We are convinced that any differences may be addressed through empty dialogue and shared understanding”.

This was in comparison to his earlier choices, some of which were seen as efforts to lessen Delhi’s impact and strengthen ties with China’s enemy.

In February, his presidency allowed a Taiwanese research ship to port in the Maldives, far to Delhi’s anger. Some viewed it as a mission to gather information that the Chinese government could use to conduct underwater functions.

Muizzu has but rejected the pro-China label, calling his plans as” Island Initially”.

However, the nation is still dependent on China, which has so far extended$ 1.37 billion in funding.

Additonal monitoring by Anbarasan Ethirajan

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