Weekend Box: Rizz, Biz, and a Bit of a Tizz & more
Welcome to The Weekend Box, Audley’s weekly round-up of interesting or obscure political, business and cultural news from around the world.
Image credit/European Council President on Flickr/License
CHINA & EU TALK TRADE
This week, the EU’s top brass met with China’s Premier, Xi Jinping, in Beijing. These were the first high-level in-person talks between the EU and China since the outbreak of COVID-19 and represent the latest chapter in the complex geopolitics of China.
As the US continues its sometimes spikey engagements with China over Taiwan and security in South East Asia, and the global community attempts to move the world’s largest economy on climate change, the EU’s concerns focused on trade.
EU representatives are worried about the growing trade deficit that exists with China, now within touching distance of €400bn. It was less than €200bn as recently as 2020. The cause of this growing deficit, says the EU, is China’s decision to pump vast new funding into the manufacturing of products targeted at European markets.
Electric vehicles are a particular area of concern. China’s domestic market is depressed and other big economies like the US have a 25% tariff on vehicles made in China. This “industrial overcapacity” leaves the EU as the main target export destination for Chinese producers.
The EU has upped its economic response to this threat. In October, it launched an investigation into whether to impose punitive tariffs to protect EU producers against cheaper Chinese EVs benefiting from state subsidies. And on Wednesday, Brussels announced that €3 billion under the EU Innovation Fund will be deployed to grow the EU’s battery industry, as a means to wean itself off China.
None of this impressed the Chinese, who referred to these moves as “protectionist”. Nevertheless, Premier Xi stressed the EU’s importance as a key partner in technology and trade for China.
European opinion on engagement with China is divided but these talks show there appears to be increasing agreement that strengthening domestic supply chains is an absolute must.
EU TAKES THE EV WAY OUT
On Wednesday the European Commission proposed a three-year delay to the imposition of tariffs on electric vehicles (EVs) traded between Britain and the EU, which are each other's largest market for exports of the vehicles.
This comes after both European and British carmakers voiced concerns that the tariffs would be immensely damaging to the EU car industry.
The post-Brexit Trade and Cooperation Agreement (TCA) states that in order to avoid tariffs, EVs need to be largely made from locally sourced parts, with at least 55% of their value coming from components made in the European Union or Britain.
However, batteries used in EVs are still largely Chinese-made, with the country accounting for around 70% of lithium-ion battery manufacturing. Given that batteries represent 30-40% of a car's value, this meant EU and British carmakers would be forced to pay a 10% tariff that the European Automotive Manufacturers' Association estimated would cost EU vehicle makers 4.3 billion euros.
British and European car industries have expressed a desire to use locally sourced batteries, but say production has been slower than expected. European Commission Vice President Maros Šefčovič, who oversees EU relations with Britain, attributed the delayed scale-up of the EU battery industry to Russia's invasion of Ukraine and soaring energy prices, along with support schemes of rivals.
He denied challenges that this could be the first in a series of delays. A ‘lock-in mechanism’ will make it legally impossible for the extension to last any longer. He also said the decision was taken because of ‘European industrial interest’, when asked if Rishi Sunak’s more conciliatory attitude to Brussels had led to the delay.
The proposed delay has broad support from European countries and is expected to be approved by EU member state ambassadors in a meeting next week.
Image credit/Eneas De Troya on Flickr/License
MADURO ADDS OIL TO THE FIRE
Just as relations with the US have begun to thaw, Venezuela’s Nicolás Maduro risks sparking a new international conflict with Guyana, as he orders oil drilling in the disputed Essequibo region.
The international community was on alert leading up to a referendum on Sunday in Venezuela, which asked voters whether they backed a new Venezuelan state being established in Essequibo and Venezuelan citizenship being granted to current and future residents. Claim to the oil-rich region has long been disputed by the country and its bordering Guyana, which last week secured an International Court of Justice ruling that Venezuela could not wrest control of Essequibo from its South American neighbour.
Despite a low percentage of eligible voters reportedly turning out (approximately 10%, or two million people), President Maduro claims that an “overwhelming” people’s mandate has empowered him to order state companies to exploit oil deposits and mines in the region.
The developments come only shortly after the US had begun to ease Trump-era sanctions on the equally oil-rich Venezuela, enabling the country to produce and export oil to its chosen markets and ease its ongoing economic crisis, on the agreement that its elections next year would be monitored by international observers. Some believe that President Maduro’s bid for the Essequibo region is an attempt to win over voters in the run-up to the elections, given his unpopularity.
Guyana’s President Irfaan Ali claims the country’s Defence Force “is on high alert.” US Secretary of State Antony Blinken has reaffirmed America’s support for Guyana’s sovereignty, and flight operations between both nations’ militaries were planned yesterday. Brazil has deployed additional troops to the Venezuela-Guyana border. President Luiz Inácio Lula da Silva has suggested his country host multilateral talks to resolve the situation, saying: “We do not want and we do not need war in South America.”
Image credit/Clément Bucco-Lechat/License
SPOIL-SPORTS
Last week, England’s rugby captain Owen Farrell became another leading sporting figure to step down from international competition on mental health grounds. A brief and somewhat enigmatic statement issued by his club Saracens said: “Owen Farrell has decided to take a break from international rugby in order to prioritise his and his family’s mental well-being.” Fans and commentators were left to interpret what this meant, but the picture that has since emerged is one of relentless pressure, made unbearable through equally relentless abuse by some ‘fans.’
Farrell, generally regarded as exceptionally tough and self-confident, had a rough period going into the recent World Cup. Sent off for a high tackle in a warm-up game against Wales in August, his yellow card was subsequently upgraded to a red card by World Rugby in a move viewed by many to have been driven by furious criticism online. His four-week suspension meant that he missed two opening games of the World Cup and though his return to the side as captain saw a return to form for the team, the abuse continued throughout. His comments about abuse faced by others and the supportive comments by his coach and fellow players past and present suggest that toxic criticism has become inescapable and unbearable.
World Cup final referee Wayne Barnes also recently retired, citing concerns for his family’s well-being. Last year, the abuse he suffered included threats of sexual violence against his wife and children. International sportsmen and women already face grinding pressure, as revealed by England cricket captain Ben Stokes, who took a break in 2021 to ‘prioritise my mental wellbeing’ after excessive touring and time away from his family. If we want them to excel and thrill us, we should remember our common human frailties and when criticising, ask if we could do better.
Image credit/Financial Times on Flickr/Edited/License
RIZZ, BIZ, & A BIT OF A TIZZ
Tis that time of year again – end-of-year lists are wrapped up, prize winners selected, and the word of the year comes in to surprise us all. Kicking things off, Amy Edmondson was announced this week as the winner of the FT and Schroders Business Book of the Year. Her management title ‘Right Kind of Wrong’ was praised as ‘highly readable and relevant’ and is the first of its category to win the prize. It focuses on how to learn from failure, or what Edmonson dubs “intelligent failure,” among other business topics. In recent years, the topic of failure has had a new focus in popular culture; writer Elizabeth Day’s chart-topping podcast “How to Fail” recently entered its 18th series.
There was a bit of tizz this week over this year’s winner of the Turner Prize: Jesse Darling. Darling, an unconventional, multidisciplinary modern artist, focussed on materials such as hazard tape, office files, and net curtains. Critics almost universally praised his artwork following the announcement of the prize and described his latest installation as a profound piece “almost revelling in our social collapse.” What caused a tizz was the candid way Jesse described his plans for spending the £30,000 prize money. He stated he would “get a new tooth put in, pay my rent and buy my friends a drink”. Clearly prize money doesn’t stretch far during the cost of living crisis.
And finally this week, we have Oxford Dictionary’s Word of the Year which was revealed to be… ‘rizz.’ ‘Rizz’ is a shortened version of “charisma” popular amongst Gen Z. It can also be used as a verb meaning to chat someone up. The word, first recorded in 2022, went viral this year after an interview with actor Tom Holland, who stated “I have no rizz whatsoever. I have limited rizz.” And so, the memes began. Such was the power of ‘rizz’ that it even beat “Swiftie” (meaning a fan of Taylor Swift) to the top spot.
Look forward to Audley’s own end-of-year specials, including our Unconventionally Wise Person of the Year, coming soon…
And that’s it for this week. I hope you found something of interest that you might want to delve into further. If so, please get in touch at cwilkins@audleyadvisors.com.
For now, that’s The Weekend Box officially closed.