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Tesla puts brake on Shanghai land buy as U.S.-China tensions weigh

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U.S. electric car maker Tesla Inc has halted plans to buy land to expand its Shanghai plant and make it a global export hub, people familiar with the matter said, due to uncertainty created by U.S.-China tensions.

With 25% tariffs on imported Chinese electric vehicles imposed on top of existing levies under former President Donald Trump still in place, Tesla now intends to limit the proportion of China output in its global production, two of the four people said.

Tesla had earlier considered expanding exports of its China-made entry-level Model 3 to more markets, including the United States, sources told Reuters, a plan that had not previously been reported.

Tesla currently ships China-made Model 3s to Europe, where it is building a factory in Germany.

Tesla’s Shanghai factory is designed to make up to 500,000 cars per year, and is currently producing Model 3 and Model Y vehicles at a rate of 450,000 units per year.

In March, Tesla refrained from bidding on a plot of land across the road from the plant as it no longer aimed to boost China production capacity significantly, at least for now, three of the people said, declining to be named as the discussions were private.

In a statement to Reuters, Tesla said its Shanghai factory was “developing as planned”.

The Shanghai city government, a key supporter in Tesla’s establishment of a wholly-owned factory in China – the first and only foreign passenger car plant not required to form a joint venture – did not respond to a request for comment.

Tesla had never declared an intention to acquire the land, which is about half the size of the 200-acre (80 hectare) plot housing Tesla’s current facility and would enable the company to lift capacity by another 200,000 to 300,000 cars, said two of the people.

Tesla’s China sales are surging despite mounting regulatory pressure in the country after consumer disputes over product safety and scrutiny over how it handles data.

It generated $3 billion in revenue in China in the first three months of this year, more than tripling year-earlier sales and accounting for 30% of total revenue.

LAND PLANS

Led by mercurial CEO Elon Musk, Tesla is known for shifting gears on strategy, including in China.

Construction documents posted on a government website in March show Tesla is revamping its plant in Shanghai to add capacity.

Tesla still has land, designed for production but now used for parking, at its Shanghai site. One of the people said Tesla could expand its capacity beyond 500,000 on its existing site. Another said Tesla may acquire more land for more car production lines in the future.

Separately, Tesla is building facilities to repair and reproduce key components such as electric motors and battery cells and build EV chargers at its Shanghai plant.

The Shanghai government has been talking to several companies to sell the land for new-energy commercial vehicle production, said a person with direct knowledge of the matter.

Tesla faces intensifying competition in China with domestic players such as Nio Inc, which is considering making mass market products under another marque.

Even before the trade war tariffs, relatively few China-made cars were shipped to the United States.

General Motors Co sells its China-made Buick Envision in the United States, paying the additional 25% tariff, although the SUV is not a high volume model.

($1 = 6.4310 Chinese yuan renminbi)

 

(Reporting by Zhang Yan in Shanghai and Yilei Sun and Tony Munroe in Beijing; additional reporting by Hyunjoo Jin in San Francisco; Editing by Lincoln Feast.)

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Hundreds more unmarked graves found at erstwhile Saskatchewan residential school

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An indigenous group in Saskatchewan on Thursday said it had found the unmarked graves of an estimated 751 people at a now-defunct Catholic residential school, just weeks after a similar, smaller discovery rocked the country.

The latest discovery, the biggest to date, is a grim reminder of the years of abuse and discrimination indigenous communities have suffered in Canada even as they continue to fight for justice and better living conditions.

Prime Minister Justin Trudeau said he was “terribly saddened” by the discovery at Marieval Indian Residential School about 87 miles (140 km) from the provincial capital Regina. He told indigenous people that “the hurt and the trauma that you feel is Canada’s responsibility to bear.”

It is not clear how many of the remains detected belong to children, Cowessess First Nation Chief Cadmus Delorme told reporters, adding that oral stories mentioned adults being buried at the site.

Delorme later told Reuters some of the graves belong to non-indigenous people who may have belonged to the church. He said the First Nation hopes to find the gravestones that once marked these graves, after which they may involve police.

Delorme said the church that ran the school removed the headstones.

“We didn’t remove the headstones. Removing headstones is a crime in this country. We are treating this like a crime scene,” he said.

The residential school system, which operated between 1831 and 1996, removed about 150,000 indigenous children from their families and brought them to Christian residential schools, mostly Catholic, run on behalf of the federal government.

“Canada will be known as a nation who tried to exterminate the First Nations,” said Bobby Cameron, Chief of the Federation of Sovereign Indigenous Nations, which represents 74 First Nations in Saskatchewan. “This is just the beginning.”

OLD WOUNDS

Canada’s Truth and Reconciliation Commission, which published a report that found the residential school system amounted to cultural genocide, has said a cemetery was left on the Marieval site after the school building was demolished.

The local Catholic archdiocese gave Cowessess First Nation C$70,000 ($56,813) in 2019 to help restore the site and identify unmarked graves, said spokesperson Eric Gurash. He said the archdiocese gave Cowessess all its death records for the period Catholic parties were running the school.

In a letter to Delorme on Thursday, Archbishop Don Bolen reiterated an earlier apology for the “failures and sins of Church leaders and staff” and pledged to help identify the remains.

Heather Bear, who went to Marieval as a day student in the 1970s and is also vice-chief of the Federation of Sovereign Indigenous Nations, recalled a small cemetery at the school but not of the size revealed on Thursday.

“You just didn’t want to be walking around alone in (the school),” she recalled. There was a “sadness that moves. And I think every residential school has that sadness looming.”

The Cowessess First Nation began a ground-penetrating radar search on June 2, after the discovery of 215 unmarked graves at the Kamloops Residential School in British Columbia outraged the country. Radar at Marieval found 751 “hits” as of Wednesday with a 10% margin of error, meaning at least 600 graves on the site.

The Kamloops discovery reopened old wounds in Canada about the lack of information and accountability around the residential school system, which forcibly separated indigenous children from their families and subjected them to malnutrition and physical and sexual abuse.

Pope Francis said in early June that he was pained by the Kamloops revelation and called for respect for the rights and cultures of native peoples. But he stopped short of the direct apology some Canadians had demanded.

Thursday was a difficult day, Delorme told Reuters. But he wants his young children to know “we will get the reconciliation one day with action like today.”

($1 = 1.2321 Canadian dollars)

(Reporting by Anna Mehler Paperny in Toronto and Moira Warburton in Vancouver; Editing by Chizu Nomiyama, Alistair Bell, Grant McCool and Daniel Wallis)

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Teamsters votes to fund and support Amazon workers

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The International Brotherhood of Teamsters, a labor union in the United States and Canada, said on Thursday it has voted to formalize a resolution to support and fund employees of Amazon.com Inc in their unionization efforts.

Amazon did not immediately respond to a request for comment.

(Reporting by Eva Mathews in Bengaluru; Editing by Arun Koyyur)

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Citigroup names new sales head for Treasury and Trade Solutions unit

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Citigroup Inc has named Steve Elms as the new sales head for the bank’s Treasury and Trade Solutions (TTS) unit effective immediately, according to an internal memo shared by a company spokesperson.

Elms, who will oversee the management of the global sales teams, has been involved with the bank’s TTS division for over 10 years, according to his LinkedIn profile.

TTS is a division of the bank’s Institutional Clients group. The segment offers cash management and trade services and finance to multinational corporations, financial institutions and public sector organizations around the world.

(Reporting by Niket Nishant in Bengaluru and David Henry in New York; Editing by Krishna Chandra Eluri)

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