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Nike Pulls New Shoe Line in China Over Designer’s Support for Hong Kong Protests

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  • Nike canceled the launch of a new line of shoes in China after the Japanese designer of the line posted on Instagram supporting protests in Hong Kong against a proposed extradition bill.
  • The incident sheds light on the dilemma multinational companies face between needing to comply with China’s demands to sell to Chinese markets, but also not wanting to be perceived negatively by more liberal countries.
  • Last year, Mercedes-Benz and the Gap both faced similar experiences, prompting them to apologize to Chinese consumers.

Undercover x Nike Collaboration 

Nike pulled the sale of a new line of shoes in China after the Japanese designer of the line publically supported the protests in Hong Kong on social media, the Financial Times reported Wednesday.

Nike and the Japanese brand Undercover, lead by the designer Jun Takahashi, intended on releasing the limited shoe line this month.

However, the product was withdrawn entirely after Undercover posted a photo on it’s Instagram of posters in Hong Kong fighting against a proposed extradition bill.

The post included the text “no extradition to China.”

Source: Campaign US

Undercover later deleted the post after receiving backlash from Chinese Instagram users, who use VPNs to access Instagram, which is blocked in China. After deleting the post, Undercover reportedly said it said was an “individual opinion” that had been posted by mistake.

YYSports, Nike’s retail partner in China and one of the country’s largest retailers, said they were given “urgent notice” from Nike to stop the launch of the new line. Other Chinese retailers also removed the shoes from sale without explanation.

One online vendor said it withdrew all Undercover brand products because of “special reasons,” but did not give details.

China and Multinational Retailers

A person described as being “close to” Nike told the Financial Times that the event with Undercover probably will not hurt Nike’s sales or revenues in China, as the situation was dealt with quickly and the shoes were designed as a limited-edition collector’s item rather than a mass-marketed product.

Additionally, while the line did not launch in China, it did launch globally on June 21.

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#NIKE x #UNDERCOVER Daybreak sneakers in Black and Green will be released ‪on June 21th (Fri)‬ globally.  NOTE: Purchasing at UNDERCOVER Aoyama is only possible through an advance online lottery. Application period is between ‪June 18th (Tue) 12:00‬ ~ 20:00. Please check the UNDERCOVER website for details (‪undercoverism.com/projects‬)   NIKE x UNDERCOVER Daybreak を‪6月21日(金)‬より販売いたします。  国内Daybreak販売店舗:UNDERCOVER 青山、新宿伊勢丹MENS、阪急MENS東京、GINZA SIX, 阪急MENS大阪、阪急うめだ本館、LUCUA1100、岩田屋本店、仙台、金沢、名古屋、京都店及び、NIKE SNKERS、NIKELAB MA5、DSM GINZA  UNDERCOVER 青山店での購入については、事前にオンライン入場抽選を実施しますので、発売日に店頭にて購入をご希望の方は、アンダーカバーのウェブサイト‪undercoverism.com/projects‬(携帯からはBioにあるリンクより)にて詳細をご確認のうえ、抽選応募フォームよりご応募ください。ご応募受付期間 : ‪2019年6月18日(火) 12:00 ~ 20:00‬  #アンダーカバー #ナイキ

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Regardless, the incident shines a light on the double-edged sword that is selling retail products to Chinese markets. 

On one hand, China is a huge market and brings in a ton of revenue for multinational retailers like Nike. In Fiscal Year 2018, Nike reported more than $5.1 billion in revenue from greater China alone.

On the other hand, if Nike adjusts to the political needs of China, it risks being perceived by more liberal countries as bending to China’s authoritarian requests. This is especially difficult for Nike, which markets itself as an advocate for social causes.

However, it is not only Nike that has had these issues with selling products in China. 

Last year, Mercedes-Benz apologized to Chinese consumers after they posted on their official Instagram account and used a quote from the Dalai Lama, who the Chinese government believes is a dangerous separatist. 

Gap also apologized to Chinese consumers last year after a post on a Chinese social media site showed T-shirts with a map of China that did not include Taiwan, South Tibet, and the South China Sea, all of which China considers as territories that belong to them, but are disputed.

Protests in Hong Kong

Meanwhile, the protests over the proposed extradition bill in Hong Kong have continued intermittently for the last few weeks.

The bill would let the government detain people accused of committing certain crimes and send them to countries or territories that Hong Kong does not have extradition agreements with, including mainland China.

The people of Hong Kong oppose the bill because they are concerned China could use the law to target political activists and dissidents who are critical of the Chinese government.

On June 15, Hong Kong’s chief executive Carrie Lam said she would suspend the bill indefinitely, but not fully withdraw it. The next day, the people of Hong Kong staged an even bigger protest with an estimated 2 million people in attendance.

Since then, the people have still continued to demonstrate, taking to the streets, surrounding and entering government buildings. 

On Tuesday, hundreds of people demonstrated at foreign governments’ consulates in Hong Kong, to call on foreign leaders to address their concerns at the upcoming G20 summit in Japan.

See what others are saying: (The Financial Times) (Business Insider) (CNBC

International

U.S. Intel Suggests Pro-Ukraine Group Sabotaged Nord Stream Pipeline

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There is no evidence that the culprits behind the attack were acting under the direction of the Ukrainian government.


Europe Braces for Shocking Revelations

A pro-Ukraine group blew up the Nord Stream pipelines last September, intelligence reviewed by U.S. officials suggests.

The New York Times reported the news Tuesday, citing officials who said there was no evidence of involvement by Ukrainian President Volodymyr Zelensky, any of his top lieutenants, or any government officials.

The strength of the evidence, however, is not clear, and U.S. officials declined to inform The Times on the nature of the intelligence or how it was obtained. They reportedly added that the intelligence indicates neither who the group’s members are nor who funded and directed the operation.

The Times’ sources said they believe the saboteurs were most likely Russian or Ukrainian nationals and that they possibly received specialized government training in the past.

It’s also possible that the group behind the attack was a proxy with covert ties to Kyiv, the report added.

When three of four Nord Stream pipelines were found to be severely damaged last year, the revelation shook markets and sent European gas prices soaring. Nord Stream 1, which was completed in 2011, and Nord Stream 2, which had been laid down but wasn’t yet operational, supplied Germany and by extension the rest of Western Europe with cheap Russian natural gas.

Following the explosions, Poland and Ukraine blamed Russia, and Russia blamed Britain. Other observers speculated that Ukraine might be behind it too.

More Ongoing Investigations

Last month, investigative journalist Seymour Hersh claimed in a Substack article that the United States military carried out the attack and that President Biden authorized it himself. However, Hersh’s report cited only one anonymous source in support of its central claim, so it was largely dismissed as not credible.

Western governments expressed caution on Wednesday in response to The Times report.

“There are ongoing national investigations and I think it’s right to wait until those are finalized before we say anything more about who was behind it,” NATO Secretary-General Jens Stoltenberg said in a statement.

Russia, by contrast, pounced on the opportunity to renew its demand for inclusion in a proposed international probe into the pipeline explosion.

The Ukrainian government denied any involvement in the Nord Stream explosions.

On Wednesday, multiple German media outlets reported that investigators have largely reconstructed how the attack happened, pinning the blame on six people who allegedly used a yacht hired by a Ukrainian-owned company in Poland.

German officials reportedly searched a vessel suspected of carrying the explosives in January, but the investigation is ongoing.

The country’s defense minister suggested the explosions may have been a “false flag” attack to smear Ukraine.

See what others are saying: (The New York Times) (Associated Press) (Reuters)

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International

Turkey, Syria Earthquake Death Toll Rises to 41,000 as Survivors Pulled from Rubble

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A pair of brothers spent around 200 hours trapped under debris, living off of protein powder and their own urine.


A Humanitarian Crisis Explodes

The number of confirmed dead from the earthquakes in Turkey and Syria last week has surpassed 41,000.

Millions more people have been left stranded without adequate shelter, food, clean water, or medical supplies.

At night, the region has dropped to below-freezing temperatures.

Now health authorities are worried that the lack of sanitation infrastructure, which was damaged by the quakes, will lead to a disease outbreak.

“We haven’t been able to rinse off since the earthquake,” 21-year-old Mohammad Emin, whose home was destroyed, told Reuters.

He was helping out at a clinic serving displaced people in an open-air stadium, but with no showers and only six toilets, the resource shortage was poignant.

“They are offering tetanus shots to residents who request them, and distributing hygiene kits with shampoo, deodorant, pads and wipes,” added Akin Hacioglu, a doctor at the clinic.

The World Health Organization monitors the population for waterborne diseases like cholera and typhoid, as well as seasonal influenza and COVID-19.

Rescuers Race Against the Clock

After more than a week of searching, hopes that more living victims will be found amid the collapsed buildings are fading, but rescuers continue to pull out the final few survivors.

Abdulbaki Yeninar, 21, and his brother Muhammed Enes Yeninar, 17, spent about 200 hours under rubble in the city of Kahramanmaras before they were extracted Tuesday. They told reporters they held on by eating protein powder, drinking their own urine, and swallowing gulps of air.

In the same city, teams dug a 16-foot tunnel through debris to rescue a woman, and to the south, a volunteer mining crew joined the efforts to save another.

With no homes to go back to, some survivors have joined the ranks of volunteers themselves.

In the past week, more than 35,000 Turkish search-and-rescue teams worked alongside thousands of international workers in the effort, according to Turkey’s emergency management agency.

Turkish President Recep Tayyip Erdoğan has called the earthquakes the “disaster of the century” and said in a statement that at least 13,000 people were being treated in hospitals.

The death toll is expected to rise even further in the coming weeks.

See what others are saying: (The New York Times) (Reuters) (Al Jazeera)

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International

Scottish First Minister Nicola Sturgeon Resigns

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“In my head and in my heart I know that time is now,” she said to reporters


Sturgeon Steps Down

Scotland’s First Minister Nicola Sturgeon announced her resignation on Wednesday. 

Sturgeon has been Scotland’s longest-serving First Minister and she is also the first woman to ever hold the position. She has been in politics since 1999, leading the charge for Scotland’s independence from the United Kingdom. Sturgeon also guided the country through the COVID-19 pandemic.

Sturgeon made sure to mention that her decision was not in response to the latest round of political pressure she is facing after her recent controversies regarding gender reform. Rather, her reasons are rooted in her own personal struggle with whether she can continue to do the job well. 

 “To be clear, I am not expecting violins here. But I am a human being as well as a politician,” she said during a press conference on Wednesday. “My point is this – giving absolutely everything of yourself to this job is the only way to do it. The country deserves nothing less. But, in truth, that can only be done by anyone for so long.

For me, it is now in danger of becoming too long,” Sturgeon continued. “A First Minister is never off-duty. Particularly in this day and age, there is virtually no privacy. Even ordinary stuff that most people take for granted like going for a coffee with friends or going for a walk on your own becomes  very difficult.”

Sturgeon’s Political Future

Sturgeon’s approval ratings are reportedly the lowest they’ve been since she’s been in office. Regardless, many political figures in Scotland, as well as the U.K., have applauded her and her historic service as First Minister. 

There are still several unknowns moving forward. There is still no confirmation on who will take over the position. However, Sturgeon did say that she will serve until someone else is elected. 

The push for Scotland’s independence is hanging in limbo as well, and no one knows what it’ll look like without Sturgeon’s leadership. She did mention, however, that she does not intend to leave politics fully and will still fight for the cause as a lawmaker in Parliament. 

Sturgeon said the support for Scottish independence needs to be solidified and grow.

“To achieve that we need to reach across the divide in Scottish politics,” she said. “And my judgment now is that this needs a new leader.”

See what others are saying: (New York Times) (BBC) (The Washington Post)

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