Gate Crashers

The gate-crasher phenomenon, China's EV companies push for Europe & X to collect biometric data

Good morning readers. I think humanity may have scored another point in the “we’re awesome” department. An initiative launched in Canada dubbed “New Leaf Project” gave 50 homeless folks $7,500 each, with no strings attached. A year later, most of them had stable housing and even some savings stashed away for a rainy day. It turns out, when you give people a chance (and some cash), they make some pretty smart decisions. Participants spent the money on essentials like food, clothing, and rent and cut down on things like alcohol, cigarettes, and drugs.

This just goes to show that sometimes, all folks need is a little boost to get back on their feet.

Keep on shining world.

Let’s jump into today’s storylines.

In today’s digest:

  • Are they tourists or spies?

  • Headline Hustle: X to collect biometrics and jobs data, Shopify and Amazon strike a deal, HSS wants marijuana to be a Schedule III drug

  • New EV titans on European roads

  • Pulse Points: What’s Trending

NATIONAL SECURITY

When ‘wish you were here’ postcards come with a hidden agenda

In the heart of America, a new kind of tourist is emerging. They're not snapping photos of the Grand Canyon or the Statue of Liberty. Instead, they're sneaking into military bases, missile ranges, and even the White House grounds and it’s not because they want to do some sight seeing.

The unseen threat

Chinese nationals, sometimes masquerading as innocent tourists, have been found trespassing on U.S. military bases and other sensitive sites over 100 times in recent years, as per a report by the Wall Street Journal. But these aren't your typical lost tourists who took a wrong turn on their way to the nearest fast-food joint. No, these are individuals who U.S. officials believe are testing the waters, quite literally in some cases, for potential espionage activities.

The grey area of trespassing. Let’s be clear, not all of these incidents are sinister. Some genuinely seem to be cases of lost tourists following their GPS a bit too faithfully. Just ask Michael Scott. But others? They're more concerning. Like the group that tried to push past guards at Fort Wainwright, Alaska, claiming they had hotel reservations. Spoiler alert…there's no commercial hotel on that base.

It's not just about trespassing. There's a pattern here. Chinese nationals have been caught taking photos at a U.S. Army range, using drones for surveillance, and even swimming near military facilities. It's like a game of cat and mouse, and the stakes are high.

In closing. The U.S. is no stranger to espionage threats, but the audacity and frequency of these gate-crashing incidents have taken many by surprise. As the world's two superpowers continue their dance of diplomacy and distrust, one thing is clear: The U.S. will need to be on its toes and perhaps a bit wary of lost "tourists" seeking the nearest fast-food joint.

Headline Hustle

😑 X will start collecting biometrics and jobs data. Remember when Twitter was just about tweeting? Well, those days are long gone. Elon Musk's rebranded social media giant, X (formerly known as Twitter), has announced plans to start collecting users' biometric and employment data. X has clarified that these changes are set to kick off on September 29 and while the platform aims to use biometric data for "safety, security, and identification purposes” nobody knows how exactly. That's the million-dollar question. While many platforms use biometrics like fingerprints and facial scans for authentication, X's exact game plan remains a mystery.

👏🏻 Shopify and Amazon strike a deal. Shopify will integrate Amazon's "Buy with Prime" program, allowing U.S.-based Shopify merchants to flaunt the coveted Prime logo and offer Amazon's speedy delivery options right on their storefronts. For Prime members, this means a seamless checkout experience using their Amazon accounts. Initially, this feature will be exclusive to a select group of Shopify merchants. However, by the end of September, all Shopify sellers who opt for Amazon's logistics services can jump on the bandwagon.

🌿 HSS wants marijuana classified as Schedule III drug. Hold onto your hemp hats folks. The U.S. Department of Health and Human Services (HHS) is stirring the pot (pun intended) by suggesting the Drug Enforcement Agency (DEA) re-evaluate marijuana's classification under the Controlled Substances Act. If this goes through, marijuana could move from being a Schedule I drug (think heroin and LSD) to a Schedule III substance, like ketamine and anabolic steroids. This would recognize it as having a moderate to low potential for dependence.

AUTO

China’s EV companies make push for Europe

Ladies and gents, fasten your seatbelts because China's electric carmakers are hitting the global highways, and they're not just cruising — they're speeding. The IAA in Munich, one of Europe's premier auto shows, recently witnessed a Chinese electric car invasion. And trust us, it wasn't just a show and tell; it was a declaration of intent.

The Chinese electric charge

Chinese electric car firms, from start-ups to established players, dominated the IAA with grand stands, high-profile press conferences, and vehicle launches. It's clear they're not just content with ruling the market back home (the world's largest EV market), they're now eyeing Europe, the second-largest mass vehicle market. Why? Europe's stringent ban on combustion engine cars by 2035 is pushing the market rapidly towards EVs and unfortunately, many European carmakers are still playing catch-up in the EV race.

Players making the biggest moves. Leapmotor, a Hangzhou-based firm, kicked things off by announcing its plans to introduce its C10 SUV to European markets next year. Not just that, they've got five more "globally-oriented" products in the pipeline. Their CEO, Zhu Jiangming, emphasized their global aspirations, stating that all of Leapmotor's products will be designed with a global mindset.

Then there's BYD, the electric car giant backed by none other than Warren Buffett. They unveiled their Seal electric sedan for Europe, with a price tag that's sure to raise some eyebrows. And let's not forget Xpeng, another major player, which announced its plans to venture into the German market by 2024.

A clash of titans. But it's not all smooth sailing for these Chinese firms. Europe's car market is a tough nut to crack, with established giants like BMW and Mercedes already in the fray. And while these European carmakers might have been a tad slow in their EV push, they're catching up fast. BMW and Mercedes have both launched dedicated electric car platforms, signaling their intent to dominate the EV market.

What lies ahead? While the Chinese firms have the tech and the ambition, there's one area where they might face a challenge: branding. Building brand recognition in a new market is no easy task. But as history has shown us, Hyundai and Kia were in a similar boat three decades ago. Today, they're major players in Europe.

Pulse Points

Thousands stranded at Burning Man festival. Festival goers were stuck in deep mud and non-functional toilets in the northern Nevada desert for days.

WhatsApp chases businesses. WhatsApp is now focusing on attracting big businesses to its platform. The company believes that by doing so, it can capitalize on its popularity and generate more revenue.

Australia sues Westpac for negligence. On Tuesday, Australia's business watchdog announced it's hauling Westpac Banking Corp to court. The bank is accused of not addressing customers' financial distress alerts from 2015 to 2022 within the stipulated administrative period.

FTC wins case against Intuit for deceptive advertising. On Friday, the Federal Trade Commission secured a ruling against Intuit, the creators of TurboTax software. The commission accused Intuit of duping consumers with ads promoting "free" tax filing products that many couldn't utilize.