China accused Washington of damaging global trade with sanctions that threaten to cripple tech giant Huawei and said Tuesday it will protect Chinese companies but gave no indication of possible retaliation.
Rules confirmed Monday by the Commerce Department block suppliers from using U.S. technology to produce processor chips and other components for Huawei. The company, China’s first global tech competitor, is the biggest supplier of switching equipment for phone companies and a leading smartphone brand.
The foreign ministry demanded the Trump administration “stop suppressing Chinese companies.”
Huawei Technologies Ltd. is at the centre of a worsening row between Washington and Beijing over technology and security. U.S. officials say Huawei is a security risk, which the company denies, and are lobbying European and other allies to avoid its technology as they upgrade to next-generation networks.
The conflict has spread to include Chinese-owned short video app TikTok and messaging service WeChat, which the U.S. government has declared security risks that might give personal information about American users to Chinese authorities.
The Trump administration is pressing TikTok’s owner to sell it and has ordered American companies to stop dealing with WeChat.
The United States is “violating international trade rules, and undermining the global industrial chain, supply chain, and value chain,” said a ministry spokesperson, Zhao Lijian.
Beijing will “take necessary measures to safeguard the legitimate rights and interests of Chinese companies,” Zhao said. Chinese officials frequently use that phrase during trade disputes but it often has been followed by no official action.
Huawei declined to comment on the latest U.S. action.
Running out of chips
The president of its consumer unit, Richard Yu, said this month Huawei is running out of processor chips for its smartphones. Huawei designs its own chips but Yu said production of the most advanced, the Kirin series, would stop Sept. 15 because the company relies on outside manufacturers that use American technology.
Huawei removed U.S.-supplied components from its main products following earlier sanctions that blocked access to American technology.
This week’s sanctions extends those controls to Asian and European components if their manufacturing process uses U.S. technology, which is common.
Earlier U.S. sanctions blocked Huawei from loading Google’s popular music and other services onto its smartphones. That has hurt their ability to compete in markets outside China.
Huawei passed Samsung and Apple to become the biggest-selling smartphone brand for the first time in the three months ending in June thanks to strong sales in China’s populous market, according to Canalys. Sales abroad fell 27 per cent from a year earlier.
Huawei, founded in 1987 by a former military engineer, denies accusations it might facilitate Chinese spying. Chinese officials accuse Washington of using national security as an excuse to stop a competitor to U.S. tech industries.
“The more hysterical the U.S. suppression of Huawei and other Chinese companies, the more it proves the success of these companies and the hypocrisy and arrogance of the United States,” said Zhao, the foreign ministry spokesperson.
“We urge the United States to immediately correct its mistakes, stop slandering China and stop suppressing Chinese companies,” he said.
“The Chinese government will continue to take necessary measures to safeguard the legitimate rights and interests of Chinese companies.”
Hit to sales
Vendors including Taiwan Semiconductor Manufacturing Corp., the biggest contract chip producer, have been scrutinizing their supply and manufacturing lines since the latest U.S. restrictions were proposed in May.
Huawei is one of the biggest customers of U.S. and other suppliers of chips and components. They stand to lose billions of dollars in potential sales.
Nicole Peng of industry research firm Canalys said vendors she contacted Tuesday were still examining their supply lines and whether they could do business with Huawei. She said some rely on the Chinese company for up to half their sales.
“I would guess many are really worried,” said Peng. “In general, there is a lot of uncertainty, and they need time to respond.”
TORONTO – Canada Goose Holdings Inc. says it has signed a deal that will result in the creation of its first eyewear collection.
The deal announced on Thursday by the Toronto-based luxury apparel company comes in the form of an exclusive, long-term global licensing agreement with Marchon Eyewear Inc.
The terms and value of the agreement were not disclosed, but Marchon produces eyewear for brands including Lacoste, Nike, Calvin Klein, Ferragamo, Longchamp and Zeiss.
Marchon plans to roll out both sunglasses and optical wear under the Canada Goose name next spring, starting in North America.
Canada Goose says the eyewear will be sold through optical retailers, department stores, Canada Goose shops and its website.
Canada Goose CEO Dani Reiss told The Canadian Press in August that he envisioned his company eventually expanding into eyewear and luggage.
This report by The Canadian Press was first published Sept. 19, 2024.
Almost seven years since news broke of an alleged conspiracy to fix the price of packaged bread across Canada, the saga isn’t over: the Competition Bureau continues to investigate the companies that may have been involved, and two class-action lawsuits continue to work their way through the courts.
Here’s a timeline of key events in the bread price-fixing case.
Oct. 31, 2017: The Competition Bureau says it’s investigating allegations of bread price-fixing and that it was granted search warrants in the case. Several grocers confirm they are co-operating in the probe.
Dec. 19, 2017: Loblaw and George Weston say they participated in an “industry-wide price-fixing arrangement” to raise the price of packaged bread. The companies say they have been co-operating in the Competition Bureau’s investigation since March 2015, when they self-reported to the bureau upon discovering anti-competitive behaviour, and are receiving immunity from prosecution. They announce they are offering $25 gift cards to customers amid the ongoing investigation into alleged bread price-fixing.
Jan. 31, 2018: In court documents, the Competition Bureau says at least $1.50 was added to the price of a loaf of bread between about 2001 and 2016.
Dec. 20, 2019: A class-action lawsuit in a Quebec court against multiple grocers and food companies is certified against a number of companies allegedly involved in bread price-fixing, including Loblaw, George Weston, Metro, Sobeys, Walmart Canada, Canada Bread and Giant Tiger (which have all denied involvement, except for Loblaw and George Weston, which later settled with the plaintiffs).
Dec. 31, 2021: A class-action lawsuit in an Ontario court covering all Canadian residents except those in Quebec who bought packaged bread from a company named in the suit is certified against roughly the same group of companies.
June 21, 2023: Bakery giant Canada Bread Co. is fined $50 million after pleading guilty to four counts of price-fixing under the Competition Act as part of the Competition Bureau’s ongoing investigation.
Oct. 25 2023: Canada Bread files a statement of defence in the Ontario class action denying participating in the alleged conspiracy and saying any anti-competitive behaviour it participated in was at the direction and to the benefit of its then-majority owner Maple Leaf Foods, which is not a defendant in the case (neither is its current owner Grupo Bimbo). Maple Leaf calls Canada Bread’s accusations “baseless.”
Dec. 20, 2023: Metro files new documents in the Ontario class action accusing Loblaw and its parent company George Weston of conspiring to implicate it in the alleged scheme, denying involvement. Sobeys has made a similar claim. The two companies deny the allegations.
July 25, 2024: Loblaw and George Weston say they agreed to pay a combined $500 million to settle both the Ontario and Quebec class-action lawsuits. Loblaw’s share of the settlement includes a $96-million credit for the gift cards it gave out years earlier.
Sept. 12, 2024: Canada Bread files new documents in Ontario court as part of the class action, claiming Maple Leaf used it as a “shield” to avoid liability in the alleged scheme. Maple Leaf was a majority shareholder of Canada Bread until 2014, and the company claims it’s liable for any price-fixing activity. Maple Leaf refutes the claims.
This report by The Canadian Press was first published Sept. 19, 2024.
Companies in this story: (TSX:L, TSX:MFI, TSX:MRU, TSX:EMP.A, TSX:WN)
TORONTO – TD Bank Group, which is mired in a money laundering scandal in the U.S., says chief executive Bharat Masrani will retire next year.
Masrani, who will retire officially on April 10, 2025, says the bank’s, “anti-money laundering challenges,” took place on his watch and he takes full responsibility.
The bank named Raymond Chun, TD’s group head, Canadian personal banking, as his successor.
As part of a transition plan, Chun will become chief operating officer on Nov. 1 before taking over the top job when Masrani steps down at the bank’s annual meeting next year.
TD also announced that Riaz Ahmed, group head, wholesale banking and president and CEO of TD Securities, will retire at the end of January 2025.
TD has taken billions in charges related to ongoing U.S. investigations into the failure of its anti-money laundering program.
This report by The Canadian Press was first published Sept. 19, 2024.
