U.S. Republican lawmakers have dropped their efforts to reimpose a crippling ban on exports to the Chinese telecommunications giant ZTE. 

The move Friday gives a victory to U.S. President Donald Trump who has championed for ZTE to stay in business. 

Republican senators Friday dropped legislation that would block ZTE from buying component parts from the United States. Senators had included the legislation in a defense spending bill passed last month, but a House version of the defense bill did not include the same provision.

Lawmakers say senators decided to leave the provision out of the final compromise bill, which is expected to come to a vote in the House and Senate in the coming days.

Lawmakers from both parties have been critical of President Trump over his decision to lift a ban on U.S. companies selling to ZTE.

Top Senate Democrat Chuck Schumer blasted Friday’s developments.

“By stripping the Senate’s tough ZTE sanctions provision from the defense bill, President Trump and the congressional Republicans who acted at his behest  have once again made President Xi and the Chinese Government the big winners,” he said in a statement.

Republican Senator Marco Rubio called dropping the provision “bad news” in a tweet Friday.ZTE is accused of selling sensitive technologies to Iran and North Korea, despite a U.S. trade embargo.

In April, the U.S. Commerce Department barred ZTE from importing American components for its telecommunications products for the next seven years, practically putting the company out of business. 

However, Trump later announced a deal with ZTE in which the Chinese company would pay a $1 billion fine for its trade violations, as well as replace its entire management and board by the middle of July.

The Commerce Department announced last week that it has formally lifted the ban on ZTE after the Chinese company complied with all terms of the settlement. 

Most of the world first heard of the dispute over ZTE in May after one of Trump’s tweets.

 

 

 
…

U.S. Republican lawmakers have dropped their efforts to reimpose a crippling ban on exports to the Chinese telecommunications giant ZTE. 

The move Friday gives a victory to U.S. President Donald Trump who has championed for ZTE to stay in business. 

Republican senators Friday dropped legislation that would block ZTE from buying component parts from the United States. Senators had included the legislation in a defense spending bill passed last month, but a House version of the defense bill did not include the same provision.

Lawmakers say senators decided to leave the provision out of the final compromise bill, which is expected to come to a vote in the House and Senate in the coming days.

Lawmakers from both parties have been critical of President Trump over his decision to lift a ban on U.S. companies selling to ZTE.

Top Senate Democrat Chuck Schumer blasted Friday’s developments.

“By stripping the Senate’s tough ZTE sanctions provision from the defense bill, President Trump and the congressional Republicans who acted at his behest  have once again made President Xi and the Chinese Government the big winners,” he said in a statement.

Republican Senator Marco Rubio called dropping the provision “bad news” in a tweet Friday.ZTE is accused of selling sensitive technologies to Iran and North Korea, despite a U.S. trade embargo.

In April, the U.S. Commerce Department barred ZTE from importing American components for its telecommunications products for the next seven years, practically putting the company out of business. 

However, Trump later announced a deal with ZTE in which the Chinese company would pay a $1 billion fine for its trade violations, as well as replace its entire management and board by the middle of July.

The Commerce Department announced last week that it has formally lifted the ban on ZTE after the Chinese company complied with all terms of the settlement. 

Most of the world first heard of the dispute over ZTE in May after one of Trump’s tweets.

 

 

 
…

North Korea’s economy contracted at the sharpest rate in two decades in 2017, South Korea’s central bank estimated Friday, in a sign international sanctions imposed to stop Pyongyang’s nuclear and missile programs have hit growth hard.

Gross domestic product (GDP) in North Korea last year contracted 3.5 percent from the previous year, marking the biggest contraction since a 6.5 percent drop in 1997 when the isolated nation was hit by a devastating famine, the Bank of Korea said.

Industrial production, which accounts for about a third of the nation’s total output, dropped by 8.5 percent and also marked the steepest decline since 1997 as factory production collapsed on restrictions of flows of oil and other energy resources into the country. Output from agriculture, construction industries also fell by 1.3 percent and 4.4 percent, respectively.

“The sanctions were stronger in 2017 than they were in 2016,” Shin Seung-cheol, head of the BOK’s National Accounts Coordination Team said.

“External trade volume fell significantly with the exports ban on coal, steel, fisheries and textile products. It’s difficult to put exact numbers on those but it (export bans) crashed industrial production,” Shin said.

The steep economic downturn comes as analysts highlight the need for the isolated country to shift toward economic development.

Switch to economic construction

North Korean leader Kim Jong Un in April vowed to switch the country’s strategic focus from the development of its nuclear arsenal to emulating China’s “socialist economic construction.”

“As long as exports of minerals are part of the sanctions, by far the most profitable item of its exports, Pyongyang will have no choice but to continue with its current negotiations with the U.S. (to remove the sanctions),” said Kim Byeong-yeon, an economics professor at the Seoul National University with expertise in the North Korean economy.

North Korea’s coal-intensive industries and manufacturing sectors have suffered as the U.N. Security Council ratcheted up the sanctions in response to years of nuclear tests by Pyongyang.

China, its biggest trading partner, enforced sanctions strictly in the second half of 2017, hurting North Korea’s manufacturing sector.

Beijing’s suspended coal purchases last year cut North Korea’s main export revenue source while its suspended fuel sales to the reclusive state sparked a surge in gasoline and diesel prices, data reviewed by Reuters showed earlier.

2018 to be ‘a lot worse’

“This year will be a lot worse. Shrinking trade first hits the Kim regime and top officials, and then later affects unofficial markets,” said Kim at Seoul National University, adding that a reduction in tradable goods would eventually decrease household income and private consumption.

North Korea’s black market, or Jangmadang, has grown to account for about 60 percent of the economy, and is where individuals and wholesalers buy and sell Chinese-made consumer goods or agricultural products, according to the Institute for Korean Integration of Society.

China’s total trade with North Korea dropped 59.2 percent in the first half of 2018 from a year earlier, China’s customs data showed last week.

The BOK uses figures compiled by the government and spy agencies to make its economic estimates. The bank’s survey includes monitoring of the size of rice paddy crops in border areas, traffic surveillance, and interviews with defectors.

North Korea does not publish economic data.

North Korea’s Gross National Income per capita stands at 1.46 million won ($1,283.52), making it about 4.4 percent the size of South Korea’s, the BOK said.

Overall exports from North Korea dropped 37.2 percent in 2017, marking the biggest fall since a 38.5 percent decline in 1998, the BOK said Friday, citing data from the Korea Trade-Investment Promotion Agency.
…

North Korea’s economy contracted at the sharpest rate in two decades in 2017, South Korea’s central bank estimated Friday, in a sign international sanctions imposed to stop Pyongyang’s nuclear and missile programs have hit growth hard.

Gross domestic product (GDP) in North Korea last year contracted 3.5 percent from the previous year, marking the biggest contraction since a 6.5 percent drop in 1997 when the isolated nation was hit by a devastating famine, the Bank of Korea said.

Industrial production, which accounts for about a third of the nation’s total output, dropped by 8.5 percent and also marked the steepest decline since 1997 as factory production collapsed on restrictions of flows of oil and other energy resources into the country. Output from agriculture, construction industries also fell by 1.3 percent and 4.4 percent, respectively.

“The sanctions were stronger in 2017 than they were in 2016,” Shin Seung-cheol, head of the BOK’s National Accounts Coordination Team said.

“External trade volume fell significantly with the exports ban on coal, steel, fisheries and textile products. It’s difficult to put exact numbers on those but it (export bans) crashed industrial production,” Shin said.

The steep economic downturn comes as analysts highlight the need for the isolated country to shift toward economic development.

Switch to economic construction

North Korean leader Kim Jong Un in April vowed to switch the country’s strategic focus from the development of its nuclear arsenal to emulating China’s “socialist economic construction.”

“As long as exports of minerals are part of the sanctions, by far the most profitable item of its exports, Pyongyang will have no choice but to continue with its current negotiations with the U.S. (to remove the sanctions),” said Kim Byeong-yeon, an economics professor at the Seoul National University with expertise in the North Korean economy.

North Korea’s coal-intensive industries and manufacturing sectors have suffered as the U.N. Security Council ratcheted up the sanctions in response to years of nuclear tests by Pyongyang.

China, its biggest trading partner, enforced sanctions strictly in the second half of 2017, hurting North Korea’s manufacturing sector.

Beijing’s suspended coal purchases last year cut North Korea’s main export revenue source while its suspended fuel sales to the reclusive state sparked a surge in gasoline and diesel prices, data reviewed by Reuters showed earlier.

2018 to be ‘a lot worse’

“This year will be a lot worse. Shrinking trade first hits the Kim regime and top officials, and then later affects unofficial markets,” said Kim at Seoul National University, adding that a reduction in tradable goods would eventually decrease household income and private consumption.

North Korea’s black market, or Jangmadang, has grown to account for about 60 percent of the economy, and is where individuals and wholesalers buy and sell Chinese-made consumer goods or agricultural products, according to the Institute for Korean Integration of Society.

China’s total trade with North Korea dropped 59.2 percent in the first half of 2018 from a year earlier, China’s customs data showed last week.

The BOK uses figures compiled by the government and spy agencies to make its economic estimates. The bank’s survey includes monitoring of the size of rice paddy crops in border areas, traffic surveillance, and interviews with defectors.

North Korea does not publish economic data.

North Korea’s Gross National Income per capita stands at 1.46 million won ($1,283.52), making it about 4.4 percent the size of South Korea’s, the BOK said.

Overall exports from North Korea dropped 37.2 percent in 2017, marking the biggest fall since a 38.5 percent decline in 1998, the BOK said Friday, citing data from the Korea Trade-Investment Promotion Agency.
…

Chinese policymakers are pumping more liquidity into the financial system and channeling credit to small- and medium-sized firms, and Beijing looks set to further loosen monetary conditions to mitigate threats to growth from a heated Sino-U.S. trade war.

The world’s second-biggest economy has started to lose momentum this year as a government campaign to reduce a dangerous build-up of debt has lifted borrowing costs, hitting factory output, business investment and the property sector.

As an intensifying trade conflict raises risks to exporters and overall growth, many economists expect the central bank to further reduce reserve requirements in the coming months, on top of the three reductions made so far this year.

Benchmark rate unchanged

However, few see a cut in the benchmark policy rate this year, as authorities walk a fine line between keeping liquidity conditions supportive and preventing any destabilizing capital outflows that could put the skids on a fragile yuan currency.

On Wednesday, a source with direct knowledge of the matter said the People’s Bank of China (PBOC) plans to introduce incentives that will boost the liquidity of commercial banks.

These are aimed at encouraging banks to expand lending and increase their investment in bonds issued by corporations and other entities, such as local government financing vehicles (LGFVs).

The PBOC has also been ensuring ample liquidity by allowing commercial banks to tap its Medium-Term Loan Facility (MLF), especially lenders that have invested in bonds rated AA+ and below, the source said.

The improved cash conditions have been reflected in reduced short-term borrowing costs for banks, with the country’s key seven-day money rate at 2.6409 percent Thursday, 37 basis points lower than recent highs at the end of June.

Economy expansion slows

The combination of lower interbank rates and the push to boost bank support should help to ease financing pressures for weaker firms, analysts said.

“This should spell good news for lower-grade bond markets which have been suffering from a flight to quality-grade bonds, and some firms have subsequently found access to liquidity difficult,” analysts at Everbright Sun Hung Kai said in a note.

China’s economy expanded a slower-than-expected 6.7 percent in the second quarter, and June factory output growth weakened to a two-year low as the trade dispute with the United States intensified.

To be sure, markets don’t expect aggressive policy loosening, given Beijing’s broad deleveraging pledge and fears that doing so could hit the yuan and trigger a spike in capital outflows.

Trade war worries have already weighed on the yuan, which hit a one-year low on Thursday.

Focus on small, medium businesses

A key focus is on small- and medium-sized enterprises (SMEs), which account for 80 percent of all jobs in China, and have suffered from rising borrowing costs and a shrinking credit pool amid Beijing’s three-year-long crackdown on off-balance sheet financing and a corporate debt build-up.

A trader at a state-run copper smelter in southern China told Reuters his firm has resorted to selling inventory to raise cash in light of the tougher financing conditions.

“Banks give, but the cost has gone up,” said the trader, who declined to be identified as he was not authorized to comment on his firm’s finances.

While the PBOC did not respond to faxed questions about its plans, a Shanghai-based trader at an Asian bank said the bond market had seen a notable pick-up in the volume of trade of LGFV debt.
…

Chinese policymakers are pumping more liquidity into the financial system and channeling credit to small- and medium-sized firms, and Beijing looks set to further loosen monetary conditions to mitigate threats to growth from a heated Sino-U.S. trade war.

The world’s second-biggest economy has started to lose momentum this year as a government campaign to reduce a dangerous build-up of debt has lifted borrowing costs, hitting factory output, business investment and the property sector.

As an intensifying trade conflict raises risks to exporters and overall growth, many economists expect the central bank to further reduce reserve requirements in the coming months, on top of the three reductions made so far this year.

Benchmark rate unchanged

However, few see a cut in the benchmark policy rate this year, as authorities walk a fine line between keeping liquidity conditions supportive and preventing any destabilizing capital outflows that could put the skids on a fragile yuan currency.

On Wednesday, a source with direct knowledge of the matter said the People’s Bank of China (PBOC) plans to introduce incentives that will boost the liquidity of commercial banks.

These are aimed at encouraging banks to expand lending and increase their investment in bonds issued by corporations and other entities, such as local government financing vehicles (LGFVs).

The PBOC has also been ensuring ample liquidity by allowing commercial banks to tap its Medium-Term Loan Facility (MLF), especially lenders that have invested in bonds rated AA+ and below, the source said.

The improved cash conditions have been reflected in reduced short-term borrowing costs for banks, with the country’s key seven-day money rate at 2.6409 percent Thursday, 37 basis points lower than recent highs at the end of June.

Economy expansion slows

The combination of lower interbank rates and the push to boost bank support should help to ease financing pressures for weaker firms, analysts said.

“This should spell good news for lower-grade bond markets which have been suffering from a flight to quality-grade bonds, and some firms have subsequently found access to liquidity difficult,” analysts at Everbright Sun Hung Kai said in a note.

China’s economy expanded a slower-than-expected 6.7 percent in the second quarter, and June factory output growth weakened to a two-year low as the trade dispute with the United States intensified.

To be sure, markets don’t expect aggressive policy loosening, given Beijing’s broad deleveraging pledge and fears that doing so could hit the yuan and trigger a spike in capital outflows.

Trade war worries have already weighed on the yuan, which hit a one-year low on Thursday.

Focus on small, medium businesses

A key focus is on small- and medium-sized enterprises (SMEs), which account for 80 percent of all jobs in China, and have suffered from rising borrowing costs and a shrinking credit pool amid Beijing’s three-year-long crackdown on off-balance sheet financing and a corporate debt build-up.

A trader at a state-run copper smelter in southern China told Reuters his firm has resorted to selling inventory to raise cash in light of the tougher financing conditions.

“Banks give, but the cost has gone up,” said the trader, who declined to be identified as he was not authorized to comment on his firm’s finances.

While the PBOC did not respond to faxed questions about its plans, a Shanghai-based trader at an Asian bank said the bond market had seen a notable pick-up in the volume of trade of LGFV debt.
…

The Trump administration wants to scrap automatic federal protection for threatened plants and animals, a move that would anger environmentalists but please industry.

A proposal unveiled Thursday would no longer grant threatened species the same instant protection given to endangered species. It would also limit what can be declared a critical habitat for such plants and animals.

Officials with the Interior Department and Fish and Wildlife Service said Thursday that they wanted to streamline regulations. They said current rules under the Endangered Species Act were inconsistent and confusing.

Deputy Interior Secretary David Bernhardt said the new rules would still be very protective of endangered animals.

“At the same time, we hope that they ameliorate some of the unnecessary burden, conflict and uncertainty that is within our current regulatory structure,” he told reporters.

But conservationists called the changes a “wrecking ball” and a gift to big businesses.

“They could decide that building in a species habitat or logging in trees where birds nest doesn’t constitute harm,” the Center for Biological Diversity’s Noah Greenwald said.

Industries such as logging, mining and oil drilling have long complained that the Endangered Special Act has stopped them from gaining access to new sources of energy and has stifled economic development.
…

Commerce Secretary Wilbur Ross said Thursday it was “too early” to say if the United States would impose tariffs of up to 25 percent on imported cars and parts, a suggestion that has been met with harsh criticism from the industry.

The department opened an investigation in May into whether imported autos and parts pose a national security risk and was holding a hearing on the probe Thursday, taking testimony from auto trade groups, foreign governments and others.

Ross’ remarks came at the start of the public hearing, which he said was aimed at determining “whether government action is required to assure the viability of U.S. domestic production.”

A group representing major automakers told Commerce on Thursday that imposing tariffs of 25 percent on imported cars and parts would raise the price of U.S. vehicles by $83 billion annually and cost hundreds of thousands of jobs.

Automakers say there is “no evidence” that auto imports pose a national security risk, and that the tariffs could actually harm U.S. economic security.

They are also facing higher prices after tariffs were imposed on aluminum and steel.

The Alliance of Automobile Manufacturers, whose members include General Motors Co, Volkswagen AG and Toyota Motor Corp, warned on the impact of the tariffs.

“Higher auto tariffs will harm American families and workers, along with the economy” and “would raise the price of an imported car nearly $6,000 and the price of a U.S.-built car $2,000,” said Jennifer Thomas, a vice president for the group.

She noted that the U.S. exports more than $100 billion of autos and parts annually to other countries, while “there is a long list of products that are largely no longer made in the U.S., including TVs, laptops, cellphones, baseballs, and commercial ships.”

No automaker or parts company has endorsed the tariffs, and they have pointed to near-record sales in recent years.

Warnings

Jennifer Kelly, the United Auto Workers union research director, noted that U.S. auto production has fallen from 12.8 million vehicles in 2000 to 11.2 million in 2017 as the sector has shed about 400,000 jobs over that period, with many jobs moving to Mexico or other low-wage countries.

“We caution that any rash actions could have unforeseen consequences, including mass layoffs for American workers, but that does not mean we should do nothing,” she said, suggesting “targeted measures.”

Many firms that sell vintage vehicles also warned that the tariffs could devastate the industry because many older cars need parts that are only made outside the United States. Polaris Industries Inc warned that off-road vehicles could also be inadvertently covered by the tariffs.

A study released by a U.S. auto dealer group warned that the tariffs could cut U.S. auto sales by 2 million vehicles annually and cost more than 117,000 auto dealer jobs, or about 10 percent of the workforce.

President Donald Trump has repeatedly suggested he would move quickly to impose tariffs, even before the government launched its probe.

‘Tremendous retribution’

“We said if we don’t negotiate something fair, then we have tremendous retribution, which we don’t want to use, but we have tremendous powers,” Trump said Wednesday. “We have to — including cars. Cars is the big one. And you know what we’re talking about with respect to cars and tariffs on cars.”

The European Union, Japan, Canada and Mexico, along with many automotive trade groups, are among 45 witnesses scheduled to testify during the daylong hearing.

The Commerce Department said earlier this week it aimed to complete the investigation “within a couple months.”
…

Commerce Secretary Wilbur Ross said Thursday it was “too early” to say if the United States would impose tariffs of up to 25 percent on imported cars and parts, a suggestion that has been met with harsh criticism from the industry.

The department opened an investigation in May into whether imported autos and parts pose a national security risk and was holding a hearing on the probe Thursday, taking testimony from auto trade groups, foreign governments and others.

Ross’ remarks came at the start of the public hearing, which he said was aimed at determining “whether government action is required to assure the viability of U.S. domestic production.”

A group representing major automakers told Commerce on Thursday that imposing tariffs of 25 percent on imported cars and parts would raise the price of U.S. vehicles by $83 billion annually and cost hundreds of thousands of jobs.

Automakers say there is “no evidence” that auto imports pose a national security risk, and that the tariffs could actually harm U.S. economic security.

They are also facing higher prices after tariffs were imposed on aluminum and steel.

The Alliance of Automobile Manufacturers, whose members include General Motors Co, Volkswagen AG and Toyota Motor Corp, warned on the impact of the tariffs.

“Higher auto tariffs will harm American families and workers, along with the economy” and “would raise the price of an imported car nearly $6,000 and the price of a U.S.-built car $2,000,” said Jennifer Thomas, a vice president for the group.

She noted that the U.S. exports more than $100 billion of autos and parts annually to other countries, while “there is a long list of products that are largely no longer made in the U.S., including TVs, laptops, cellphones, baseballs, and commercial ships.”

No automaker or parts company has endorsed the tariffs, and they have pointed to near-record sales in recent years.

Warnings

Jennifer Kelly, the United Auto Workers union research director, noted that U.S. auto production has fallen from 12.8 million vehicles in 2000 to 11.2 million in 2017 as the sector has shed about 400,000 jobs over that period, with many jobs moving to Mexico or other low-wage countries.

“We caution that any rash actions could have unforeseen consequences, including mass layoffs for American workers, but that does not mean we should do nothing,” she said, suggesting “targeted measures.”

Many firms that sell vintage vehicles also warned that the tariffs could devastate the industry because many older cars need parts that are only made outside the United States. Polaris Industries Inc warned that off-road vehicles could also be inadvertently covered by the tariffs.

A study released by a U.S. auto dealer group warned that the tariffs could cut U.S. auto sales by 2 million vehicles annually and cost more than 117,000 auto dealer jobs, or about 10 percent of the workforce.

President Donald Trump has repeatedly suggested he would move quickly to impose tariffs, even before the government launched its probe.

‘Tremendous retribution’

“We said if we don’t negotiate something fair, then we have tremendous retribution, which we don’t want to use, but we have tremendous powers,” Trump said Wednesday. “We have to — including cars. Cars is the big one. And you know what we’re talking about with respect to cars and tariffs on cars.”

The European Union, Japan, Canada and Mexico, along with many automotive trade groups, are among 45 witnesses scheduled to testify during the daylong hearing.

The Commerce Department said earlier this week it aimed to complete the investigation “within a couple months.”
…

U.S. President Donald Trump said Thursday that he was not pleased about the U.S. Federal Reserve’s decision to increase interest rates.

“I’m not thrilled,” Trump said in a CNBC interview that aired Friday. His remarks followed two interest rate hikes this year and Fed suggestions of two more increases before the end of the year.

“Because we go up and every time you go up, they want to raise rates again. I don’t really — I am not happy about it,” he said. “But at the same time, I’m letting them do what they feel is best.”

Presidents rarely intervene in developments involving the Fed, which sets the benchmark interest rate. Higher interest rates make it more expensive to borrow money, which slows economic activity. The rate hikes are intended to keep inflation from damaging the economy. Earlier, during a severe recession, the Fed slashed interest rates nearly to zero in a bid to boost economic growth.

Trump expressed frustration in the interview that the central bank’s actions could disrupt U.S. economic expansion.

Trump sought to give the economy a boost when he signed into law a major tax cut late last year. The law cut the corporate rate from 35 percent to 21 percent and lowered taxes on individual incomes as well.
…

U.S. President Donald Trump said Thursday that he was not pleased about the U.S. Federal Reserve’s decision to increase interest rates.

“I’m not thrilled,” Trump said in a CNBC interview that aired Friday. His remarks followed two interest rate hikes this year and Fed suggestions of two more increases before the end of the year.

“Because we go up and every time you go up, they want to raise rates again. I don’t really — I am not happy about it,” he said. “But at the same time, I’m letting them do what they feel is best.”

Presidents rarely intervene in developments involving the Fed, which sets the benchmark interest rate. Higher interest rates make it more expensive to borrow money, which slows economic activity. The rate hikes are intended to keep inflation from damaging the economy. Earlier, during a severe recession, the Fed slashed interest rates nearly to zero in a bid to boost economic growth.

Trump expressed frustration in the interview that the central bank’s actions could disrupt U.S. economic expansion.

Trump sought to give the economy a boost when he signed into law a major tax cut late last year. The law cut the corporate rate from 35 percent to 21 percent and lowered taxes on individual incomes as well.
…

China’s Ambassador in Phnom Penh says the European Union should not mix politics with trade as it mulls withdrawing Cambodia’s vital preferential single market access in response to the country’s autocratic backslide.

The European Union has just wrapped up a fact-finding mission to Cambodia to determine if Everything But Arms (EBA) trade preferences should be withdrawn in light of actions such as the dissolution of the only viable alternative party at this month’s national election.

After delivering a public lecture about China’s Belt and Road initiative to students Tuesday at the University of Cambodia, Ambassador Xiong Bo repeatedly stressed free trade should not be impacted by political preconditions in response to a question about the EBA.

“So I think in terms of the trade relations between the EU and Cambodia I think these trade relations should be conducted according to the economic and trade rules but should not be changed according to any political reasons,” he said, speaking through a translator.

“No matter what the EU will do the Chinese will stand firmly in expanding and deepening our cooperation with Cambodia in all fields, especially in terms of trade and economic relations,” he said.

China has pumped billions of dollars into Cambodia through investment, concessional loans and aid in recent years, dramatically undermining the influence of Western powers in the country.

Xiong said the European Union has declared itself a staunch supporter of global free trade, sentiments he hoped the bloc would stick to, adding he did not believe all member states would support moves to withdraw the EBA.

Any decision to withdraw EBA status from Cambodia would require consensus among EU members.

The EBA grants developing countries such as Cambodia quota free and duty free access to the EU market.

This access is conditional on compliance with certain international human rights standards and countries have been sanctioned before for failing to meet those.

The European Union is Cambodia’s biggest market, absorbing about half of the country’s exports.

Monday, EU Ambassador to Cambodia George Edgar said a European Commission fact finding mission examining human rights and labor rights in the context of the EBA had concluded and would now report to EU decision makers.

Last week, EU trade commissioner Cecilia Malmstrom said withdrawing the EBA was a “last resort if all our other efforts have failed” to address the bloc’s concerns.

Chief among those concerns are the jailing of Cambodia National Rescue Party (CNRP) leader Kem Sokha in September and the dissolution of his party in November.

In both cases the actions were predicated on their alleged involvement in an internationally backed conspiracy to overthrow the government of Prime Minister Hun Sen, who has ruled for 33 years.

Rights groups and foreign governments including the European Union have slammed the moves as a transparent ploy by Hun Sen to crush his only viable opponents before the country’s July 29 election. The United States has already sanctioned the commander of Hun Sen’s bodyguard unit, for carrying out “serious acts of human rights abuse against the people of Cambodia.”

Cambodia’s government says they are meddling in its internal affairs.

Cambodian government nervous

In June, Hun Sen dispatched one of his top advisors, Sok Siphana, to Brussels to lobby the European Union against removing the EBA.

A Cambodian statement at the time said, “Sadly and quite unfairly, in a very large number of cases, the Government felt like the victim of unfounded accusations and excessive generalizations.” It concluded, “There is a conspiracy and a treasonous act of collusion with a foreign power to do a regime change through undemocratic means. How could it be otherwise?”

Sok Siphana, a prominent lawyer and economic advisor who led Cambodia’s negotiations into the World Trade Organization in 2003, has not responded to VOA inquiries about the lobbying effort.

Political Analyst Meas Ny said he did not believe Sok had been successful in his mission.

“The recent mission sent by the Cambodian government it was hard for the head of the delegation to convince the EU community because I think the EU so far have got their information from all sources,” he said.

He said it is clear the Cambodian government is not going to change its stance due to the threat of EBA withdrawal.

“But I think we can talk up a lot of issues that the government might be facing in the future if the EBA is lifted,” he said.

Chief among those, Meas said, was the knock on effect to Cambodia’s micro-finance sector from the resulting unemployment among Cambodia’s 700,000 garment workers, many of whom are heavily indebted.

Late last year, Commerce Minister Pan Sorasak warned in a leaked letter if the EBA were withdrawn Cambodia would have to pay $676 million for an estimated $6.2 billion in revenue from exports to the European Union.
…

China’s Ambassador in Phnom Penh says the European Union should not mix politics with trade as it mulls withdrawing Cambodia’s vital preferential single market access in response to the country’s autocratic backslide.

The European Union has just wrapped up a fact-finding mission to Cambodia to determine if Everything But Arms (EBA) trade preferences should be withdrawn in light of actions such as the dissolution of the only viable alternative party at this month’s national election.

After delivering a public lecture about China’s Belt and Road initiative to students Tuesday at the University of Cambodia, Ambassador Xiong Bo repeatedly stressed free trade should not be impacted by political preconditions in response to a question about the EBA.

“So I think in terms of the trade relations between the EU and Cambodia I think these trade relations should be conducted according to the economic and trade rules but should not be changed according to any political reasons,” he said, speaking through a translator.

“No matter what the EU will do the Chinese will stand firmly in expanding and deepening our cooperation with Cambodia in all fields, especially in terms of trade and economic relations,” he said.

China has pumped billions of dollars into Cambodia through investment, concessional loans and aid in recent years, dramatically undermining the influence of Western powers in the country.

Xiong said the European Union has declared itself a staunch supporter of global free trade, sentiments he hoped the bloc would stick to, adding he did not believe all member states would support moves to withdraw the EBA.

Any decision to withdraw EBA status from Cambodia would require consensus among EU members.

The EBA grants developing countries such as Cambodia quota free and duty free access to the EU market.

This access is conditional on compliance with certain international human rights standards and countries have been sanctioned before for failing to meet those.

The European Union is Cambodia’s biggest market, absorbing about half of the country’s exports.

Monday, EU Ambassador to Cambodia George Edgar said a European Commission fact finding mission examining human rights and labor rights in the context of the EBA had concluded and would now report to EU decision makers.

Last week, EU trade commissioner Cecilia Malmstrom said withdrawing the EBA was a “last resort if all our other efforts have failed” to address the bloc’s concerns.

Chief among those concerns are the jailing of Cambodia National Rescue Party (CNRP) leader Kem Sokha in September and the dissolution of his party in November.

In both cases the actions were predicated on their alleged involvement in an internationally backed conspiracy to overthrow the government of Prime Minister Hun Sen, who has ruled for 33 years.

Rights groups and foreign governments including the European Union have slammed the moves as a transparent ploy by Hun Sen to crush his only viable opponents before the country’s July 29 election. The United States has already sanctioned the commander of Hun Sen’s bodyguard unit, for carrying out “serious acts of human rights abuse against the people of Cambodia.”

Cambodia’s government says they are meddling in its internal affairs.

Cambodian government nervous

In June, Hun Sen dispatched one of his top advisors, Sok Siphana, to Brussels to lobby the European Union against removing the EBA.

A Cambodian statement at the time said, “Sadly and quite unfairly, in a very large number of cases, the Government felt like the victim of unfounded accusations and excessive generalizations.” It concluded, “There is a conspiracy and a treasonous act of collusion with a foreign power to do a regime change through undemocratic means. How could it be otherwise?”

Sok Siphana, a prominent lawyer and economic advisor who led Cambodia’s negotiations into the World Trade Organization in 2003, has not responded to VOA inquiries about the lobbying effort.

Political Analyst Meas Ny said he did not believe Sok had been successful in his mission.

“The recent mission sent by the Cambodian government it was hard for the head of the delegation to convince the EU community because I think the EU so far have got their information from all sources,” he said.

He said it is clear the Cambodian government is not going to change its stance due to the threat of EBA withdrawal.

“But I think we can talk up a lot of issues that the government might be facing in the future if the EBA is lifted,” he said.

Chief among those, Meas said, was the knock on effect to Cambodia’s micro-finance sector from the resulting unemployment among Cambodia’s 700,000 garment workers, many of whom are heavily indebted.

Late last year, Commerce Minister Pan Sorasak warned in a leaked letter if the EBA were withdrawn Cambodia would have to pay $676 million for an estimated $6.2 billion in revenue from exports to the European Union.
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Luxury air travel faster than the speed of sound: A US start-up is aiming to revive commercial supersonic flight 50 years after the ill-fated Concorde first took to the skies.

Blake Scholl, the former Amazon staffer who co-founded Boom Supersonic, delivered the pledge this week in front of a fully-restored Concorde jet at the Brooklands aviation and motor museum in Weybridge, southwest of London.

The company aims to manufacture a prototype 55-seater business jet next year but its plans have been met with scepticism in some quarters.

“The story of Concorde is the story of a journey started but not completed — and we want to pick up on it,” Scholl said at an event that coincided with the nearby Farnborough Airshow.

“Today … the world is more linked than it’s ever been before and the need for improved human connection has never been greater.

“At Boom, we are inspired at what was accomplished half a century ago,” he added, speaking in front of a former British Airways Concorde.

Boom Supersonic’s early backers include Richard Branson and Japan Airlines, and other players are eyeing the same segment.

Speaking to AFP at Farnborough on Wednesday, Scholl indicated that the air tickets could be beyond the reach of some.

“What we’ve been able to do thanks to advances in aerodynamics and materials and engines is offer a high speed flight for the same price you pay in business class today,” he said. 

He said this works out to around $5,000 (4,300 euros) round-trip across the Atlantic.

“Now I know that might sounds like a lot, because it is, but it’s actually the same price you pay for a lay flat bed on airlines today,” he said.

‘Baby Boom’

Boom Supersonic’s aircraft, dubbed Baby Boom, is expected by the company to fly for the first time next year.

The company is making its debut at Farnborough and hopes to produce its new-generation jets in the mid-2020s or later, with the aim of slashing journey times by half.

The proposed aircraft has a maximum flying range of 8,334 kilometres (5,167 miles) at a speed of Mach 2.2 or 2,335 kilometres per hour.

If it takes off, it would be the first supersonic passenger aircraft since Concorde took its final flight in 2003.

The Concorde was retired following an accident in 2000 in which a Concorde crashed shortly after takeoff from Paris, killing 113 people.

“The one accident that did happen on Concord actually happened on the runway,” Scholl told AFP on Wednesday.

“It had nothing to do with high-speed flight so there’s no actual barrier to creating a highly safe, efficient supersonic airplane and we have super high standards for safety.

“We’ll be going through the same safety testing process that every other aircraft goes through and the FAA (US Federal Aviation Administration) and EASA (European Aviation Safety Agency) will not let our airplane fly unless we pass a very high safety bar.”Some analysts meanwhile remain sceptical over the push back into supersonic, with consumer demand booming for cheap low-cost carriers.

“Supersonic is not what passengers or airlines want right now,” said Strategic Aero analyst Saj Ahmad.

Ahmad said supersonic jets were “very unattractive” because of high start-up development costs, considerations about noise pollution and high prices as well as limited capacity.

‘Untried and untested’

Independent air transport consultant John Strickland noted supersonic travel was unproven commercially.

“If there is an economic downturn or something happens where the market for business class traffic drains away, then you have nothing else left to do with that aircraft,” Strickland said.

“I think it’s going to be some time before we see whether it can establish a large viable market … in the way that Concorde never managed to do.”

These concerns have not stopped interest from other players.

US aerospace giant Boeing had last month unveiled its “hypersonic” airliner concept, which it hopes will fly at Mach 5 — or five times the speed of sound — when it arrives on the scene in 20 to 30 years.

And in April, NASA inked a deal for US giant Lockheed Martin to develop a supersonic “X-plane.”
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Tesla and SpaceX CEO Elon Musk has apologized for calling a British diver involved in the Thailand cave rescue a pedophile, saying he spoke in anger but was wrong to do so.

There was no immediate public reaction from diver Vern Unsworth to Musk’s latest tweets.

Musk’s initial tweet calling Unsworth a “pedo” was a response to a TV interview Unsworth gave. In it, he said Musk and SpaceX engineers orchestrated a “PR stunt” by sending a small submarine to help divers rescue the 12 Thai soccer players and their coach from a flooded cave. Unsworth said the submarine, which wasn’t used, wouldn’t have worked anyway.

“My words were spoken in anger after Mr. Unsworth said several untruths …” Musk tweeted.

“Nonetheless, his actions against me do not justify my actions against him, and for that I apologize to Mr. Unsworth and to the companies I represent as leader. The fault is mine and mine alone.”

Musk’s Sunday tweet, later deleted, had sent investors away from Tesla stock, which fell nearly 3 percent Monday but recovered 4.1 percent Tuesday. Unsworth told CNN earlier this week that he was considering legal action. He did not respond to requests for comment from The Associated Press.

In his latest tweets, Musk said the mini-sub was “built as an act of kindness & according to specifications from the dive team leader.”

Musk has 22.3 million followers and his active social media presence has sometimes worked well for Tesla. The company has said in its filings with the Securities and Exchange Commission that it doesn’t need to advertise because it gets so much free media attention.

But straying away from defending his companies into personal insult brought Musk some unfavorable attention at a time when Tesla, worth more than $52 billion, is deep in debt and struggling for profitability. 

In northern Thailand on Wednesday, the 12 Thai soccer players and their coach answered questions from journalists, their first meeting with the media since their rescues last week. Doctors said all are healthy.
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U.S. President Donald Trump’s top economic adviser accused Chinese President Xi Jinping Thursday of stalling efforts to resolve a growing trade dispute with the U.S.

White House National Economic Council Director Larry Kudlow said he believed lower-level Chinese officials want to end tariffs the world two largest economic powers have imposed on each other, but that Xi has refused to amend China’s technology transfer and other trade policies.

“So far as we know, President Xi, at the moment, does not want to make a deal,” Kudlow said in an interview on CNBC. “I think Xi is holding the game up,” Kudlow said, and added, “The ball is in his court.”

Kudlow said China could end U.S. tariffs “this afternoon” if it took measures that include cutting tariff and non-tariff barriers to imports. The U.S. has also called on Beijing to end the “theft” of intellectual property and allow full foreign ownership of companies operating in China.

Kudlow also said he expects European Commission President Jean-Claude Juncker to make a trade offer when he meets with Trump at the White House next week.

Trump has demanded that the EU cut its 10 percent tariffs in auto imports at a time when his administration is conducting a national security study that could result in a 25 percent U.S. tariff on imported vehicles.

A 25 percent tariff would have a significant financial impact on European and Japanese automakers, and while Juncker has said he would make an trade offer to Trump next week, he did not offer details.

Earlier this month, Trump imposed 25 percent tariffs on Chinese goods valued at $34 billion, with another $16 billion set to take effect in the near future. Trump has also announced 10 percent tariffs on an additional $200 billion of Chinese products that could be imposed as early as next month.

Beijing retaliated to the first tariffs by placing duties on the same dollar amount of American imports, and has vowed to counter any further U.S. actions.

Trump imposed the tariffs after an Office of the U.S. Trade Representative investigation concluded China was violating intellectual property rules and forcing U.S. companies operating in China to hand over technology secrets in exchange for access to the Chinese market.
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Boeing has received a $3.9 billion contract to build two 747-8 aircraft for use as Air Force One by the U.S. president, due to be delivered by December 2024 and painted red, white and blue, officials said on Tuesday.

The Pentagon announced the decision on Tuesday, saying Seattle-based Boeing’s previously awarded contract for development work had been expanded to include design, modification and fielding of two mission-ready presidential 747-8 aircraft.

The contract followed the outlines of the informal deal reached between Boeing and the White House in February. That agreement came after President Donald Trump objected to the $4 billion price tag of a previous Air Force One deal, complaining in a Twitter post that “costs are out of control” and adding “Cancel order!”

The White House said in February the new deal would save taxpayers more than $1.4 billion, but those savings could not be independently confirmed.

Air Force budget documents released in February for fiscal year 2019 disclosed a $3.9 billion cost for the two-aircraft program. The same 2018 budget document, not adjusted for inflation, showed the price at $3.6 billion.

The Boeing 747-8s are designed to be an airborne White House able to fly in worst-case security scenarios, such as nuclear war, and are modified with military avionics, advanced communications and a self-defense system.

A congressional official briefed on Tuesday about the deal indicated it was little changed from the informal agreement reached in February, calling for two 747-8 aircraft to be built for $3.9 billion and delivered by December 2024.

Trump told CBS in an interview that aired on Tuesday that the new model Air Force One would be updated on the inside and have a different exterior color scheme from the current white and two shades of blue dating back to President John F. Kennedy’s administration.

“Red, white and blue,” Trump said. “Air Force One is going to be incredible. It’s going to be the top of the line, the top in the world. And it’s going to be red, white and blue, which I think is appropriate.”
…

Boeing has received a $3.9 billion contract to build two 747-8 aircraft for use as Air Force One by the U.S. president, due to be delivered by December 2024 and painted red, white and blue, officials said on Tuesday.

The Pentagon announced the decision on Tuesday, saying Seattle-based Boeing’s previously awarded contract for development work had been expanded to include design, modification and fielding of two mission-ready presidential 747-8 aircraft.

The contract followed the outlines of the informal deal reached between Boeing and the White House in February. That agreement came after President Donald Trump objected to the $4 billion price tag of a previous Air Force One deal, complaining in a Twitter post that “costs are out of control” and adding “Cancel order!”

The White House said in February the new deal would save taxpayers more than $1.4 billion, but those savings could not be independently confirmed.

Air Force budget documents released in February for fiscal year 2019 disclosed a $3.9 billion cost for the two-aircraft program. The same 2018 budget document, not adjusted for inflation, showed the price at $3.6 billion.

The Boeing 747-8s are designed to be an airborne White House able to fly in worst-case security scenarios, such as nuclear war, and are modified with military avionics, advanced communications and a self-defense system.

A congressional official briefed on Tuesday about the deal indicated it was little changed from the informal agreement reached in February, calling for two 747-8 aircraft to be built for $3.9 billion and delivered by December 2024.

Trump told CBS in an interview that aired on Tuesday that the new model Air Force One would be updated on the inside and have a different exterior color scheme from the current white and two shades of blue dating back to President John F. Kennedy’s administration.

“Red, white and blue,” Trump said. “Air Force One is going to be incredible. It’s going to be the top of the line, the top in the world. And it’s going to be red, white and blue, which I think is appropriate.”
…

Prototypes? Passe. Fashion company Betabrand saw that knitwear was a hot style in sneakers and wanted to quickly jump on the trend for dressier shoes. It put a poll up on its website asking shoppers what style they liked, and based on that had a shoe for sale online in just one week.

 

What web shoppers saw was a 3-D rendering — no actual shoe existed yet. Creating a traditional prototype, tweaking the design and making a sample would have taken six to nine months, and the company might have missed out on the interest in knit.

 

“The web attention span is short,” said Betabrand CEO Chris Lindland. “So if you can develop and create in a short time, you can be a real product-development machine.”

Shoppers looking at the shoe online could examine the peekaboo detail or check out how the sole was put together, as they would from photos of a real product. They don’t get the actual shoes instantaneously — they have to wait a few months. But the use of digital technology in designing and selling means hot trends are still getting to people far faster than under the old system.

 

“Retailers and brands who are embracing this are going to be winners of the future,” said David Bassuk, managing director of consulting group AlixPartners. “This is flipping the business model on its head.”

 

It’s a big cultural change for clothing makers. For decades, the process meant designers sketched ideas on paper, a design got approved, and the sketches went to a factory that created prototypes. Designers and product developers made tweaks and sent prototypes back and forth. Once a final version was approved, it was sent to the factory to be copied for mass production. Getting something from design to a store could take at least a year.

Now, some companies have designers sketching on high-resolution tablets with software that can email 3-D renderings of garments with specifications straight to factories, as better technology makes the images look real and the pressure to get shoppers new products swiftly intensifies. The goal is to reduce to six months or less the time it takes to get to store shelves.

 

Even chains like H&M, which once set the standard for speed by flying in frequent small batches, are realizing that’s not fast enough. H&M, which has seen sales slow, is starting to digitize certain areas of its manufacturing process.

 

For clothing makers and retailers, the shift means design decisions can happen closer to when the fashions actually hit the shelves or website. That means less guessing so stores aren’t stuck with piles of unsold clothes that need to be discounted.

 

The 3-D technology is used in just 2 percent of the overall supply networks, estimates Spencer Fung, group CEO of Li & Fung, which consults with more than 8,000 retailers including Betabrand and 15,000 suppliers globally. But he believes that will change as retailers begin prioritizing speed and realize that cutting down on design time and prototypes saves money.

 

“You can actually essentially create an entire collection before you even cut one garment,” said Whitney Cathcart, CEO of the Cathcart Technologies consulting firm. “So it reduces waste, it reduces lead times, it allows decision making in real time, so the entire process becomes more efficient.”

 

Fung imagines a scenario where a social media post with a celebrity in a red dress gets 500,000 “likes.” An alert goes to a retailer that this item is trending. Within hours, a digital sample of a similar dress is on its website. A factory can start to produce the dress in days.

 

“Consumers see it and they want it now,” says Michael Londrigan of fashion college LIM in New York. “How do you bring it to market so you don’t miss those dollars?”

 

Nicki Rector of the Sonoma Valley area in California bought a pair of Betabrand’s Western-style boots last summer based on the 3-D rendering.

 

“It looked real,” said Rector, who examined the images of the heel and the insoles. She didn’t worry about buying off a digital image, reasoning that if you’re buying online you can’t really know how something’s going to fit until you put it on your feet. She said knowing it was designed from customer input also helped make the wait OK.

 

Betabrand has sold 40,000 pairs of shoes priced from $128 to $168 over the past year, all from digital renderings, and plans to add 15 to 20 such projects this year.

At a Levi Strauss & Co. research and development facility in San Francisco, designers use programs that offer the look of a finished garment and let them make changes like adding pockets quickly, rather than requiring a new prototype. When they’re set, they can send a file to the factory for mass production. Using digital samples can shorten the design time to one week or less from an eight-week timeframe, Levi’s says.

 

Few companies are yet selling directly to shoppers off digital renderings like Betabrand, and are instead showing them to store buyers or to factories rather than using traditional samples.

 

Xcel Brands uses them for its own brand of women’s tops and for the company’s Judith Ripka jewelry line. The company, which also makes clothes for Isaac Mizrahi and Halston, will start using them for other brands within the year. CEO Robert D’Loren hopes to start putting 3-D samples on its website next year.

 

Tommy Hilfiger has an interactive touchscreen table where buyers can view every item in the collection and create custom orders. And Deckers Brands, the maker of Ugg boots, is using digital renderings of the classic boot in 10 colors, eliminating the need for 10 prototypes for store buyers. That helps reduce cost and increases speed.

 

Using digital designs also mean the exact specifications for different Levi’s design finishes can be uploaded to a machine that uses lasers to scrape away at jeans. No need to teach employees how to execute a designer’s vision, in a minute and a half the lasers have given the jeans the exact weathered look that took workers wielding pumice stones twenty minutes to half an hour.

 

“Thirty years ago, jeans were only available in three shades — rinse, stonewash and bleach,” said Bart Sights, head of the Levi’s Eureka lab. “Our company now designs 1,000 finishes per season.” Such a long lead time “pushes production and creation too far away.” Levi’s latest technology alleviates this issue, he said.
…

Prototypes? Passe. Fashion company Betabrand saw that knitwear was a hot style in sneakers and wanted to quickly jump on the trend for dressier shoes. It put a poll up on its website asking shoppers what style they liked, and based on that had a shoe for sale online in just one week.

 

What web shoppers saw was a 3-D rendering — no actual shoe existed yet. Creating a traditional prototype, tweaking the design and making a sample would have taken six to nine months, and the company might have missed out on the interest in knit.

 

“The web attention span is short,” said Betabrand CEO Chris Lindland. “So if you can develop and create in a short time, you can be a real product-development machine.”

Shoppers looking at the shoe online could examine the peekaboo detail or check out how the sole was put together, as they would from photos of a real product. They don’t get the actual shoes instantaneously — they have to wait a few months. But the use of digital technology in designing and selling means hot trends are still getting to people far faster than under the old system.

 

“Retailers and brands who are embracing this are going to be winners of the future,” said David Bassuk, managing director of consulting group AlixPartners. “This is flipping the business model on its head.”

 

It’s a big cultural change for clothing makers. For decades, the process meant designers sketched ideas on paper, a design got approved, and the sketches went to a factory that created prototypes. Designers and product developers made tweaks and sent prototypes back and forth. Once a final version was approved, it was sent to the factory to be copied for mass production. Getting something from design to a store could take at least a year.

Now, some companies have designers sketching on high-resolution tablets with software that can email 3-D renderings of garments with specifications straight to factories, as better technology makes the images look real and the pressure to get shoppers new products swiftly intensifies. The goal is to reduce to six months or less the time it takes to get to store shelves.

 

Even chains like H&M, which once set the standard for speed by flying in frequent small batches, are realizing that’s not fast enough. H&M, which has seen sales slow, is starting to digitize certain areas of its manufacturing process.

 

For clothing makers and retailers, the shift means design decisions can happen closer to when the fashions actually hit the shelves or website. That means less guessing so stores aren’t stuck with piles of unsold clothes that need to be discounted.

 

The 3-D technology is used in just 2 percent of the overall supply networks, estimates Spencer Fung, group CEO of Li & Fung, which consults with more than 8,000 retailers including Betabrand and 15,000 suppliers globally. But he believes that will change as retailers begin prioritizing speed and realize that cutting down on design time and prototypes saves money.

 

“You can actually essentially create an entire collection before you even cut one garment,” said Whitney Cathcart, CEO of the Cathcart Technologies consulting firm. “So it reduces waste, it reduces lead times, it allows decision making in real time, so the entire process becomes more efficient.”

 

Fung imagines a scenario where a social media post with a celebrity in a red dress gets 500,000 “likes.” An alert goes to a retailer that this item is trending. Within hours, a digital sample of a similar dress is on its website. A factory can start to produce the dress in days.

 

“Consumers see it and they want it now,” says Michael Londrigan of fashion college LIM in New York. “How do you bring it to market so you don’t miss those dollars?”

 

Nicki Rector of the Sonoma Valley area in California bought a pair of Betabrand’s Western-style boots last summer based on the 3-D rendering.

 

“It looked real,” said Rector, who examined the images of the heel and the insoles. She didn’t worry about buying off a digital image, reasoning that if you’re buying online you can’t really know how something’s going to fit until you put it on your feet. She said knowing it was designed from customer input also helped make the wait OK.

 

Betabrand has sold 40,000 pairs of shoes priced from $128 to $168 over the past year, all from digital renderings, and plans to add 15 to 20 such projects this year.

At a Levi Strauss & Co. research and development facility in San Francisco, designers use programs that offer the look of a finished garment and let them make changes like adding pockets quickly, rather than requiring a new prototype. When they’re set, they can send a file to the factory for mass production. Using digital samples can shorten the design time to one week or less from an eight-week timeframe, Levi’s says.

 

Few companies are yet selling directly to shoppers off digital renderings like Betabrand, and are instead showing them to store buyers or to factories rather than using traditional samples.

 

Xcel Brands uses them for its own brand of women’s tops and for the company’s Judith Ripka jewelry line. The company, which also makes clothes for Isaac Mizrahi and Halston, will start using them for other brands within the year. CEO Robert D’Loren hopes to start putting 3-D samples on its website next year.

 

Tommy Hilfiger has an interactive touchscreen table where buyers can view every item in the collection and create custom orders. And Deckers Brands, the maker of Ugg boots, is using digital renderings of the classic boot in 10 colors, eliminating the need for 10 prototypes for store buyers. That helps reduce cost and increases speed.

 

Using digital designs also mean the exact specifications for different Levi’s design finishes can be uploaded to a machine that uses lasers to scrape away at jeans. No need to teach employees how to execute a designer’s vision, in a minute and a half the lasers have given the jeans the exact weathered look that took workers wielding pumice stones twenty minutes to half an hour.

 

“Thirty years ago, jeans were only available in three shades — rinse, stonewash and bleach,” said Bart Sights, head of the Levi’s Eureka lab. “Our company now designs 1,000 finishes per season.” Such a long lead time “pushes production and creation too far away.” Levi’s latest technology alleviates this issue, he said.
…