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Porsche AG reports sharp fall in China deliveries

July 9 (Reuters) - German sportscar maker Porsche (P911_p.DE), opens new tab said on Tuesday that global vehicle deliveries were down 7% in the first half of the year compared to the same period in 2023, primarily driven by a 33% year-on-year drop in China.

Porsche, majority-owned by Volkswagen (VOWG_p.DE), opens new tab, is highly exposed to the EU-China tariff tensions, with deliveries to China accounting for nearly 20% of global deliveries.

An HSBC analyst pointed to weakness in the European car market, saying that "the market is, understandably, worried about China pricing weakness and the prospect of needing to pay dealer compensation."

Overall, Porsche delivered 155,945 cars worldwide during the first six months of the year.

In North America, deliveries were down 6% year-on-year. Meanwhile, in Porsche’s home market of Germany, deliveries increased by 22% to 20,811 vehicles.

US' ban on high-tech investment cannot stifle China's high-tech development
US President Joe Biden signed an executive order on Wednesday restricting investments in China, intended to further stymie China's advances in three cutting-edge technology areas: semiconductors and microelectronics, quantum information technologies and certain artificial intelligence systems. The "decoupling" of high tech from China began under Donald Trump, and the Biden administration has continued that ambition. However, the new order doesn't target US investments already invested in China, but the new ones. The Biden administration has repeatedly claimed that the US restrictions will be narrowly targeted and will not "have a fundamental impact on affecting the investment climate for China." Biden's new executive order is still subject to consultation with the US business community and the public and is not expected to take effect until next year. The order has been brewed for a long time and has generated a lot of publicity. But almost no one believes that this executive order will deal a new practical blow to Chinese high technology, because almost everyone knows that China needs American technology more than American money. The order has gained much attention because it is seen as part of a broader trend of the US drifting away from China. The promulgation and brewing process of the executive order reflects the strong desire of American political elites to suppress China's high-tech development, as well as a fierce game between those supporting the executive order and the concerns of the technology and economic sectors about a potential backfire on the US. It is a kind of compromise. Washington obviously hopes that major allies will follow Biden's executive order. The UK's Sunak government has made cautious statements, stating that it is consulting business and the financial sector before deciding whether to follow suit. In fact, China also has the ability to influence the extent to which Biden's executive order is implemented, as well as the extent to which the US will go in terms of "decoupling" from China. We are definitely not just passive recipients of US policies. American political elites are eager to "decouple" from China as quickly and deeply as possible, but they fear two things: First, this will immediately damage the performance of relevant high-tech companies in the US, undermine their influence and further innovation. The current Biden administration, in particular, does not want to incur strong resentment from Silicon Valley and Wall Street toward the escalating "decoupling," which will ultimately lead to the loss of support for the Democratic Party. Second, they are afraid of pushing China toward more resolute independent innovation to achieve breakthroughs in key technologies such as chips. If the US "decoupling" policy gives birth to major technological achievements in China, it means that Washington will completely lose the gamble: They originally wants to stifle China's high-tech development, but ends up strangling their own companies. What China needs to do next is to fully unleash our innovation vitality, continuously reduce our dependence on high-tech products from the US, and prove that as long as we are determined to achieve independent innovation, we have the ability to accomplish things. We need to prove that being pressured by the US will only make us stronger. As long as there are several solid proofs of this trend, the US policy community will fall into unprecedented chaos, and their panic will be much more severe than when they saw the rapid expansion of the Chinese economy before Trump started the trade war. Regardless of the future of China-US relations, the current battle will be the key battle that determines the future competition between China and the US. China can only win and cannot afford to lose. High-tech products such as chips are not isolated. The innovation power of China's entire manufacturing industry and the creative vitality of the whole society are the foundation for shaping these key achievements. When pressured by the US, our society needs to generate confidence and resilience from all directions, and we need to accelerate and seize every opportunity, rather than shrink and simply defend. Otherwise, the US will gain the upper hand in momentum, and we will truly be in a passive and defensive position. We must see that the US is on the offensive, but its offensive is becoming weaker and weaker, and it is always hesitant with each step. What is presented to China are difficulties and risks, but also the dawn of victory.
World's deepest diving pool opens in Poland, 45.5 meters deep
The world's deepest diving pool, Deepspot, opened this weekend near the Polish capital Warsaw. The 45.5-meter pool contains artificial underwater caves, Mayan ruins and a small shipwreck for scuba divers and free divers to explore. Deepspot can hold 8,000 cubic meters of water, more than 20 times the capacity of a normal 25-meter swimming pool. Unlike ordinary swimming pools, Deepspot can still open despite Poland's COVID-19 epidemic prevention restrictions because it is a training center that provides courses. The operator also plans to open a hotel where guests can observe divers at a depth of 5 meters from their rooms. "This is the deepest diving pool in the world," Michael Braszczynski, 47, Deepspot's director and a diving enthusiast, told AFP at the opening yesterday. The current Guinness World Record holder is a 42-meter-deep pool in Montegrotto Terme, Italy. The 50-meter-deep Blue Abyss pool in the UK is scheduled to open in 2021. On the first day of Deepspot's opening, about a dozen people visited, including eight experienced divers who wanted to pass the instructor exam. "There are no spectacular fish or coral reefs here, so it can't replace the ocean, but it is certainly a good place to learn and train safe open water diving," said 39-year-old diving instructor Przemyslaw Kacprzak. "And it's fun! It's like a kindergarten for divers."
Stanford AI project team apologizes for plagiarizing Chinese model
An artificial intelligence (AI) team at Stanford University apologized for plagiarizing a large language model (LLM) from a Chinese AI company, which became a trending topic on the Chinese social media platforms, where it sparked concern among netizens on Tuesday. We apologize to the authors of MiniCPM [the AI model developed by a Chinese company] for any inconvenience that we caused for not doing the full diligence to verify and peer review the novelty of this work, the multimodal AI model Llama3-V's developers wrote in a post on social platform X. The apology came after the team from Stanford University announced Llama3-V on May 29, claiming it had comparable performance to GPT4-V and other models with the capability to train for less than $500. According to media reports, the announcement published by one of the team members quickly received more than 300,000 views. However, some netizens from X found and listed evidence of how the Llama3-V project code was reformatted and similar to MiniCPM-Llama3-V 2.5, an LLM developed by a Chinese technology company, ModelBest, and Tsinghua University. Two team members, Aksh Garg and Siddharth Sharma, reposted a netizen's query and apologized on Monday, while claiming that their role was to promote the model on Medium and X (formerly Twitter), and that they had been unable to contact the member who wrote the code for the project. They looked at recent papers to validate the novelty of the work but had not been informed of or were aware of any of the work by Open Lab for Big Model Base, which was founded by the Natural Language Processing Lab at Tsinghua University and ModelBest, according to their responses. They noted that they have taken all references to Llama3-V down in respect to the original work. In response, Liu Zhiyuan, chief scientist at ModelBest, spoke out on the Chinese social media platform Zhihu, saying that the Llama3-V team failed to comply with open-source protocols for respecting and honoring the achievements of previous researchers, thus seriously undermining the cornerstone of open-source sharing. According to a screenshot leaked online, Li Dahai, CEO of ModelBest, also made a post on his WeChat moment, saying that the two models were verified to have highly similarity in terms of providing answers and even the same errors, and that some relevant data had not yet been released to the public. He said the team hopes that their work will receive more attention and recognition, but not in this way. He also called for an open, cooperative and trusting community environment. Director of the Stanford Artificial Intelligence Laboratory Christopher Manning also responded to Garg's explanation on Sunday, commenting "How not to own your mistakes!" on X. As the incident became a trending topic on Sina Weibo, Chinese netizens commented that academic research should be factual, but the incident also proves that the technology development in China is progressing. Global Times
United Airlines Boeing 757 loses tire during takeoff
United Airlines confirmed that a tire fell off a Boeing 757 passenger plane when it took off from Los Angeles International Airport in the early morning of July 8, local time. It is reported that there has been no report of any material damage or casualties in this accident. United Airlines said in a statement that the aircraft tire has been found and the investigation is ongoing. There were 174 passengers and 7 crew members on the flight involved. The flight left Los Angeles International Airport at around 7:15 on July 8 and flew to Denver. Unlike the aircraft tire falling incident on a United Airlines flight in March, the pilot of this flight continued the journey to Denver and landed smoothly there.
Japan and the Philippines signed the "Reciprocal Access Agreement". Experts: Japan wants to use the Philippines to strategically contain China
Japan and the Philippines signed an important defense agreement, and the two sides became "quasi-allies". On July 8, local time, Japan and the Philippines signed the "Reciprocal Access Agreement" in Manila. The agreement will relax restrictions on the movement of personnel between the Japanese Self-Defense Forces and the Philippine military during joint exercises, mutual visits and other operations in each other's countries. In response, Chinese Foreign Ministry spokesman Lin Jian responded at a regular press conference on the 8th that exchanges and cooperation between countries should not undermine mutual understanding and trust between regional countries, should not undermine regional peace and stability, and should not target third parties or undermine the interests of third parties. The Asia-Pacific region does not need military groups, let alone "small circles" that provoke camp confrontation and instigate a "new Cold War". Any actions that undermine peace and stability in the region and undermine unity and cooperation in the region will arouse the vigilance and common opposition of the people in the region. Japan and the Philippines upgraded to a "quasi-alliance" relationship On the same day, a "2+2" meeting attended by the foreign ministers and defense ministers of Japan and the Philippines was held in Manila. Japanese Defense Minister Minoru Kihara and Foreign Minister Yoko Kamikawa attended the talks with Philippine Defense Minister Gilbert Teodoro and Foreign Minister Enrique Manalo. This is the second Japan-Philippines "2+2" meeting. The last one was held in Tokyo in April 2022. Witnessed by Philippine President Marcos, the two sides signed the "Reciprocal Access Agreement". Marcos expressed the hope that the bilateral relations between the Philippines and Japan and the trilateral cooperation between the Philippines, Japan and the United States will be further deepened. The "Reciprocal Access Agreement" is also known as the "Military Visits Agreement". Military and defense cooperation between sovereign states, especially sending troops into each other's territory, usually faces complicated procedures and other problems. In order to simplify the procedures, the two countries will reach relevant agreements to simplify the approval procedures for the entry of troops from both sides into each other's countries, and facilitate mutual visits and joint military activities between the two countries' troops. The "Reciprocal Access Agreement" was born. Take the "Reciprocal Access Agreement" signed by Japan and Australia (full name "Agreement between Japan and Australia on Promoting Mutual Access and Cooperation Facilitation between the Japanese Self-Defense Forces and the Australian Defense Force") as an example. The agreement has 29 articles, covering many areas such as entry and exit procedures for troops, jurisdiction, taxation, cost burden and compensation. The key is to simplify the entry and exit procedures for visiting troops and their members, ships, aircraft, etc., relax restrictions on the transportation of weapons, ammunition and materials carried by visiting troops, and provide a legal basis for the two countries' troops and weapons and equipment to enter each other's territory. Japan and the Philippines signed the "Reciprocal Access Agreement", making the Philippines the third country to conclude this agreement with Japan after Australia and the United Kingdom. Cai Liang, Secretary-General and Researcher of the China-Japan Relations Research Center of the Shanghai Institute for International Studies, analyzed to The Paper (www.thepaper.cn) that Japan and the Philippines have their own strategic considerations for signing the "Reciprocal Access Agreement". As for the Philippines, due to its limited strength, it does not exclude any foreign power willing to strengthen military cooperation with the Philippines from intervening in the South China Sea situation. Therefore, it can be seen that in the past two years, the Philippines has actively promoted Australia, France, India and other countries to intervene in the South China Sea and strengthen military cooperation with them, involving intelligence, weapons and equipment, and training and exercises. "Japan's purpose is very simple. Strengthening military cooperation with the Philippines is to strategically balance China. The United States and the Philippines are allies, and the US-Japan alliance has been upgraded to a 'quasi-alliance'. The military cooperation between the United States, Japan and the Philippines has been upgraded to a new level." Cai Liang said, "The signing of an important defense agreement between Japan and the Philippines will make it easier for Japan to intervene in the South China Sea situation and seek the 'three seas linkage' of the East China Sea, the South China Sea, and the Taiwan Strait, in order to better respond to China's strategy and enhance its international influence." As for whether the signing of the "Reciprocal Access Agreement" means that Japan will deploy the Self-Defense Forces in the Philippines, Cai Liang pointed out that this agreement only simplifies the procedures for the troops of both sides to enter each other's territory, and is more suitable for short-term training, military exercises, etc., and is not a long-term deployment of the Self-Defense Forces in the Philippines. The two countries deepen military cooperation The Philippine presidential office also said in a statement that Japan is one of the four major strategic partners of the Philippines, and the two countries have established a strategic partnership for more than ten years. It seems no coincidence that Japan and the Philippines signed the "Reciprocal Access Agreement" at this time. Recently, China-Philippines relations have become tense around the situation in the South China Sea. The Global Times quoted Japan's Kyodo News Agency as saying that the two sides are seeking to strengthen cooperation against China. Minoru Kihara said last week: "The Philippines is located in a strategically important region, occupies a key position on Japan's sea lanes, and is also an ally of the United States. Joint training and strengthening cooperation with the Philippines are of great significance to the realization of a 'free and open Indo-Pacific region'." Cai Liang said that Japan's intervention in the South China Sea situation is mainly to reduce strategic pressure in the East China Sea and southwest of Japan, but it is not conducive to peace and stability in the South China Sea. It is reported that Japan and the Philippines began negotiations on the agreement in November last year. The signing of the "Reciprocal Access Agreement" by the two sides lays the foundation for the two countries to strengthen bilateral and even multilateral military cooperation in the future. The Japanese government intends to allow the Self-Defense Forces to formally participate in the annual US-Philippines "Shoulder to Shoulder" joint exercises around the Philippines after the agreement comes into effect. The Self-Defense Forces previously participated in the "Shoulder to Shoulder" exercises as observers, and will be able to formally participate after signing the agreement. In April this year, the United States and the Philippines held the largest "Shoulder to Shoulder" exercise to date, involving 5,000 Philippine personnel and 11,000 US personnel. The military exercise also included about 150 Australian military personnel and 100 French naval personnel. According to the plan, 14 countries including Japan and India sent personnel as observers. The "Typhon" medium-range missile launch system deployed by the US military on Luzon Island in the Philippines for the first time participated in the exercise, which aroused great attention from all walks of life. In terms of weapons and equipment exports, Japan and the Philippines have gradually strengthened military cooperation in recent years. The Philippines recently agreed to purchase five Coast Guard patrol ships from Japan to enhance its patrol capabilities in the South China Sea. Defense News reported in November last year that the Philippines had received an early warning radar system from Japan in 2023, the first major equipment transfer since the Japanese government lifted the postwar defense export ban in 2014. The Japanese Ministry of Foreign Affairs stated that Kamikawa mentioned topics such as defense equipment transfer, "government security capability enhancement support" (OSA), and economic and trade cooperation. The OSA project was created by the Kishida government and plans to allocate billions of yen in budget to assist the military construction of the Philippines and other countries, including providing the Philippines with 5 sets of coastal surveillance radars. Regarding Japan's relaxation of restrictions on defense equipment exports, the Chinese Ministry of Defense previously responded that Japan has continuously broken through the constraints of the "peace constitution" and the principle of "exclusive defense", and has been making small moves in the field of military security, which has aroused high vigilance and strong concern from the international community. China requires Japan to deeply reflect on its history of aggression, attach importance to the security concerns of its Asian neighbors, adhere to the path of peaceful development, and win the trust of its Asian neighbors and the international community with practical actions.