■ Retailing
Direct selling green-lighted
China is preparing to lift its ban on direct selling and plans to issue a draft regulation by September, state press reported yes-terday. "Illegal pyramid selling will face a serious crackdown while legitimate direct selling companies from home and abroad will receive encouragement and support from the Chinese government," said Deng Zhan, deputy director-general of the Ministry of Commerce's Foreign Investment Administration. China imposed a ban on direct sales in 1998 after numerous fraud scandals. Ten foreign-funded direct selling companies such as Amway and Avon were allowed to continue opera-ting but had to shift promo-tion of their products to retail outlets, the China Daily said. The stop-gap measures are set to come at the end of this year, in line with promises China made on its accession to the WTO.
Richard Holwill, vice-president of Alticor Inc, Amway's parent company, was quoted by the news-paper as saying the deregu-lation followed China's commitments to the WTO.
■ Cameras
Digital sales to soar
Worldwide unit shipments of digital cameras will exceed 100 million units in 2008, from an expected 68.6 million units this year, mar-ket researcher IDC said. Global shipments of digital single-lens reflex cameras, or models favored by pro-fessionals, will be 2.1 million units this year and reach 6.6 million units in 2008 as digital SLRs replace film-based SLRs, Christo-pher Chute, senior analyst at IDC, said. Shipments of digital SLRs will be driven by sub-US$1,000 price points, legacy users of Nikon Corp and Canon Inc models, and new users interested in developing photography as a hobby, Chute said.
■ Telecoms
NTT DoCoMo gets new boss
NTT DoCoMo Inc named executive vice president Masao Nakamura as its next chief executive officer, replacing Keiji Tachikawa. Nakamura, 59, will be charged with reversing market-share losses at the world's second-largest mobile-phone operator, said Norio Wada, president of DoCoMo parent Nippon Telegraph & Telephone Corp. at a press conference in Tokyo. Nakamura takes the reins at DoCoMo as the market leader is losing ground to rival KDDI Corp's phone network and is predicting sales to decline in the business year ending March 31. Under Tachi-kawa, DoCoMo pioneered
i-mode, the world's first wireless Internet service, and FOMA, the first so-called third-generation network for faster access to games, music and video on a handset.
■ Automakers
Mitsubishi barred
Japan's National Police Agency has barred Mitsu-bishi Motors Corp and its truck affiliate from bidding for police orders for 11 months following allega-tions that company officials covered up defects which caused the wheels to come off, a news report said yesterday. The measure, which took effect on Thursday, prevents Mitsu-bishi Motors and Mitsubishi Fuso Truck & Bus Corp from selling vehicles to the agency, Kyodo News agency said. The decision comes after seven former Mitsu-bishi executives were arrested earlier this month on suspicion they falsified a report on an accident in 2002 in which a wheel flew off a truck and killed a woman. Japan's Transport Ministry has also taken a similar step.
INVESTIGATION: The case is the latest instance of a DPP figure being implicated in an espionage network accused of allegedly leaking information to Chinese intelligence Democratic Progressive Party (DPP) member Ho Jen-chieh (何仁傑) was detained and held incommunicado yesterday on suspicion of spying for China during his tenure as assistant to then-minister of foreign affairs Joseph Wu (吳釗燮). The Taipei District Prosecutors’ Office said Ho was implicated during its investigation into alleged spying activities by former Presidential Office consultant Wu Shang-yu (吳尚雨). Prosecutors said there is reason to believe Ho breached the National Security Act (國家安全法) by leaking classified Ministry of Foreign Affairs information to Chinese intelligence. Following interrogation, prosecutors petitioned the Taipei District Court to detain Ho, citing concerns over potential collusion or tampering of evidence. The
NEGOTIATIONS: Taiwan has good relations with Washington and the outlook for the negotiations looks promising, Minister of Economic Affairs J.W. Kuo said Taiwan’s GDP growth this year is expected to decrease by 0.43 to 1.61 percentage points due to the effects of US tariffs, National Development Council (NDC) Minister Paul Liu (劉鏡清) said at a meeting of the legislature’s Economics Committee in Taipei yesterday, citing a preliminary estimate by a private research institution. Taiwan’s economy would be significantly affected by the 32 percent “reciprocal” tariffs slapped by the US, which took effect yesterday, Liu said, adding that GDP growth could fall below 3 percent and potentially even dip below 2 percent to 1.53 percent this year. The council has commissioned another institution
TRADE: The premier pledged safeguards on ‘Made in Taiwan’ labeling, anti-dumping measures and stricter export controls to strengthen its position in trade talks Products labeled “made in Taiwan” must be genuinely made in Taiwan, Premier Cho Jung-tai (卓榮泰) said yesterday, vowing to enforce strict safeguards against “origin laundering” and initiate anti-dumping investigations to prevent China dumping its products in Taiwan. Cho made the remarks in a discussion session with representatives from industries in Kaohsiung. In response to the US government’s recent announcement of “reciprocal” tariffs on its trading partners, President William Lai (賴清德) and Cho last week began a series of consultations with industry leaders nationwide to gather feedback and address concerns. Taiwanese and US officials held a videoconference on Friday evening to discuss the
NEGOTIATIONS: The US response to the countermeasures and plans Taiwan presented has been positive, including boosting procurement and investment, the president said Taiwan is included in the first group for trade negotiations with the US, President William Lai (賴清德) said yesterday, as he seeks to shield Taiwanese exporters from a 32 percent tariff. In Washington, US Trade Representative Jamieson Greer said in an interview on Fox News on Thursday that he would speak to his Taiwanese and Israeli counterparts yesterday about tariffs after holding a long discussion with the Vietnamese earlier. US President Donald Trump on Wednesday postponed punishing levies on multiple trade partners, including Taiwan, for three months after trillions of US dollars were wiped off global markets. He has maintained a 10 percent
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