
Italy Cracks Down on Sweatshops Feeding Loro Piana, Armani, Dior
The unnamed worker was paid off-the-books, earning roughly €1,500 ($1,742) a month, according to legal documents seen by Bloomberg — about the price of one Loro Piana baby cashmere sweater. He became part of a hidden, underground labor force, employed by third parties, who craft luxury clothing for Italy's most renowned fashion houses.
His case, which came to light after the tailor's boss stopped paying wages and allegedly attacked him, became part of an ongoing probe of persistent worker abuses in one of Italy's most important industries. For two years, prosecutors have sought to reform an export model where premium brands sell Italian fashion abroad at luxury prices, even as inexpensive workshops proliferate around Milan, flouting labor standards in Italy's capital of style.
The crackdown, led by Milan's corporate court and the labor-crimes unit of the Carabinieri military police, has snared contractors linked to five well-known fashion labels including Valentino, Armani and Dior. Loro Piana, owned by French luxury powerhouse LVMH Moët Hennessy Louis Vuitton SE, became the latest on Monday, and was placed under court supervision for up to a year.
'There is already a reputational issue in the fashion industry, which started with prices spiraling unreasonably,' said Stefania Saviolo, a lecturer on fashion and luxury management at Milan's Bocconi University. 'These investigations not only damage the brands involved, they affect all of Made in Italy as a system.'
Loro Piana, part of LVMH since 2013, denied wrongdoing and said it will cooperate with authorities. The company said it terminated relations with the supplier within 24 hours of being informed of the contractors' existence.
The fragmented, mostly family-run structure of high-quality Italian manufacturing 'can pose challenges in transparency and oversight,' said Toni Belloni, president of LVMH Italy. The group has strengthened controls and revised its internal charter, he said in a statement to Bloomberg News. 'However, areas of fragility remain, so we must work to improve our practices.'
The fashion industry is one of Italy's biggest, accounting for about €96 billion worth of Made in Italy products in 2024, according to industry group Camera Nazionale della Moda. The vast majority are destined for overseas markets.
Yet the tailor's case shines a light on the treatment of workers who make garments that can cost thousands. He worked from 9 a.m. to 10 p.m. daily through late 2024, when his 'caporale,' or boss — also a Chinese transplant — stopped paying him for unknown reasons, according to the court documents.
After repeated demands for his wages, a confrontation ensued. The employer punched the tailor and beat him repeatedly with an aluminum tube, the documents said, leading to a criminal complaint.
Past enforcement efforts have failed to stamp out labor abuses.
'These cases have been increasing in the last few years, with more big groups taking control of smaller Italian companies and starting outsourcing part of the production,' said Roberta Griffini, secretary for the Filctem CGIL Milano union.
Responsibility is sometimes hard to determine because subcontractors work for more than one fashion group, Griffini added.
The UK has also cracked down on illegal sweatshops, particularly small factories operating in cities such as Leicester. A 2021 UK report found companies in numerous industries couldn't guarantee their supply chains were free from forced labor.
For fashion producers in Italy, the supply chain should be short and closely monitored, said Saviolo of Bocconi University. Younger consumers in particular are paying more attention to brand credibility.
Milan is the locus of the sprawling fashion industry in Italy, housing about one-fourth of the nation's 600,000 fashion workers across some 60,000 companies, according to Camera Nazionale della Moda.
The Lombardy region's dense ecosystem of design studios, tanneries and sample makers gives brands unrivaled speed but also shelters what prosecutors called 'a generalised manufacturing method' in which legitimate subcontractors parcel out work to micro-factories operating from converted garages and semi-legal industrial parks.
Chinese-owned firms make up a significant part of this complex. About 20% of Lombardy's 10,000-plus textile workshops and factories are Chinese-owned, according to Milan's Chamber of Commerce. The area has drawn a large number of Chinese immigrants, driven by small-business opportunities, globalization of the fashion industry and growing family ties.
The judicial clampdown in Italy is unfolding against a jittery global backdrop, with demand falling and a US-led tariff war threatening to magnify export costs.
The personal luxury-goods industry, worth €364 billion, lost 50 million customers in 2023 and 2024, Bain estimated last year. The sector will shrink between 2% and 5% this year, according to the consulting firm's June follow-up.
Italy's fashion industry was already grappling with falling sales, inflation and international tensions. Brands squeezed by softer demand and volatile costs have doubled down on 'near-shoring' quick orders to Lombardy's workshop belt to protect margins.
That very strategy, say prosecutors, is fueling the race to the bottom that the courts are now trying to halt.
Investigators traced Loro Piana's knitwear to intermediaries which subcontracted to factories where illegal migrants worked 90 hours a week and slept next to their sewing machines. The judges said the firm 'negligently benefited' from illegal cost-cutting.
The judicial administrator appointed Monday is tasked with monitoring Loro Piana management's progress toward addressing its supply chain.
The issues have been similar at other luxury brands, including Giorgio Armani Operations, Dior Manufactures, Valentino Bags Lab and Alviero Martini: opaque layers of small subcontractors, paper safety records and a workforce of mostly undocumented Chinese migrants.
Armani, Dior and Alviero Martini were released of court oversight after implementing measures such as real-time supplier audits. The unit of Valentino, which is owned by Kering SA and Qatar's Mayhoola, is still subject to court monitoring.
The Italian Competition Authority has also been involved. In May it closed an unfair-practices probe into Dior, securing €2 million in funds for anti-exploitation initiatives and requiring the company to improve supplier vetting.
Dior noted then that no infringement was established, and said it is dedicated to high standards of ethics and excellence.
Armani Group, still under investigation by the competition authority over alleged unfair commercial practices, said the allegations have no merit and its companies are cooperating with authorities.
In Milan, coordination has tightened with an accord in May between the Milan Prefecture, the fashion chamber, trade unions and leading brands. The pact sets up a shared database of vetted suppliers and commits signatories to regular certifications.
The outcome of the Loro Piana case for now rests with updates to the bench on its progress.
As for the tailor, the Milan prosecutor is now trying to get him hired legally, according to a person familiar with the matter, who asked not to be named discussing a personal matter. This would require the employer to make pension contributions, pay taxes and provide standard benefits.
--With assistance from Antonio Vanuzzo, Deirdre Hipwell and Angelina Rascouet.
More stories like this are available on bloomberg.com
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Mint
16 minutes ago
- Mint
Prada wore them. Kolhapur made them. Inside India's fight for a lost sole
Kolhapur/Mumbai: The mood in room number 46 of the Bombay High Court, a vaulted, brightly lit affair, was rather dark on 16 July. Chief justice Alok Aradhe and justice Sandeep Marne, who made up a two-judge bench of the court, were handling public interest litigation (PIL) filings that morning. And their patience seemed to be wearing thin. After summarily dealing with two PILs, they turned to a third one. 'What is this? Kolhapuri chappals? You want an injunction in a PIL?" asked one of the judges, grilling advocate Ganesh Hingmire, who had filed the petition. The case had been filed after Italian luxury fashion house Prada had showcased a pair of 'toe-ring" sandals on a Milanese runway in its Men's Spring/Summer 2026 collection last month. At the receiving end was an array of respondents: Prada S.p.A; its India arm; the Maharashtra government's department for social justice; and Lidcom, a public sector undertaking to promote the state's leather industry and support its artisans. Hingmire, a Pune-based expert on geographical indicators and intellectual property rights, wanted the high court to stop the sale of Kolhapuri sandals abroad. He also wanted an apology from Prada for violating the geographical indication tag protecting the chappals. Hingmire, along with a battery of lawyers, pointed to the history of western brands exploiting Indian heritage. 'The community is suffering from this cultural appropriation," he argued. 'These foreign companies like Prada will just continue (this cultural appropriation) with a word of appreciation." Across from Hingmire was celebrated senior advocate Ravi Kadam, who was representing Prada. The latter's defence was short and biting; he asked why Hingmire had filed a PIL at all, given that he did not own the rights of the Kolhapuri chappal. Besides, he said, Prada had never claimed the shoes on its runway were Kolhapuris. After some back-and-forth between the lawyers and the judges, the court dismissed the case, saying that there were clear legal mechanisms to settle geographical indication tag infringements, and that a PIL wasn't needed to protect the artisans of Kolhapur. Needless to say, the ruling did not leave Hingmire feeling ecstatic. 'Will assess and may go to SC (Supreme Court)," he texted one of the writers of this story. 'I have tried my level best in the interest of our nation. Our intention is pure and clean." The ruling also caused some disappointment 400 km away, in Kolhapur, the birthplace of the eponymous sandals. The court case and the interest it had aroused in the district's most famous export, had given the 100,000-strong community engaged in the business of making the slippers there hope that their flagging business would get a shot in the arm. Kolhapuri chappals are a miniscule part of the country's total footwear exports. And, they're declining. In 2024-25, India exported over ₹21,000 crore of footwear and related goods; of that, Kolhapuris made up just ₹1.3 crore. Thanks to the catwalk in Milan and the court case in Mumbai, Kolhapuri chappals are now enjoying a rare moment of global glory. But, just how did these humble chappals become India's most recognisable traditional footwear, and what is holding the trade back? Mint visited Kolhapur and spoke to artisan families there, as well as designers in Mumbai, to piece together the story of the Kolhapuris. Designer limelight Most of India's shoes, including Kolhapuri chappals, are sold in small, local shops even today. But, in the last decade, independent designer brands have begun to experiment with traditional Indian footwear and sell them at a mass-premium and higher prices. Much of that action has happened in the business of juttis and mojris, close-toed flats native to Punjab, Haryana, Rajasthan and parts of Gujarat. Delhi-based Fizzy Goblet and Needledust are among India's best known jutti brands. They posted annual revenue of ₹33.1 crore and ₹15.2 crore, respectively, in 2023-24, per research agency Tracxn. Today, these brands and other mass-market labels, such as Bata and Metro, have begun selling 'designer' Kolhapuri chappals. But, there are few designers dedicated to working with Kolhapuri and similar 'toe-ring' chappals. One such brand is by Mumbai-based designer Aprajita Toor, who started her studio in Chembur a decade ago, inspired by her mother's penchant for the chappals. 'The Kolhapuri chappal is a liberating design," she told Mint. 'In an orthopaedic sense, it is an open shoe and not contained. If you think about it, the original chappal was so thoughtfully made. It is a visionary design," says Toor. Her eponymous label is best known for innovative versions of the sandals, including those with pencil and wedge heels, strong pastel contrasts, and contemporary patterns adorning the classic T-strap. Toor's offerings are largely for the premium domestic consumer, with a basic pair starting at ₹4,500. For designers, however, the biggest challenge in inventing new forms of Kolhapuri chappals is material. 'The leather the artisans use is buff (buffalo) leather, which is not easy to work with," Toor said. 'It is also not easy to wear. But it is what defines these chappals." Toor has experimented with newer materials such as memory foam cushioning and softer Napa leather to make her shoes more comfortable. Another Mumbai-based shoe label, Tiesta, best-known for elaborate 'bridal' sneakers, also found a niche in innovative Kolhapuris. 'Growing up, wearing heels was the standard (for women)," Janvi Jogatar, designer and co-founder of Tiesta, told Mint. 'But Kolhapuris are not just fashion. The toe ring in the sandal separates the big toe from the rest of the foot, making it much more comfortable (than closed-toe shoes)." However, Jogatar ran into the same problem that her fellow designers did—the traditional Kolhapuri, although beautiful, is not always easy on the feet. Jogatar launched Tiesta's 'Kolas' collection in 2019, switching out the regular buff leather for a vegan alternative that is cheaper, easier to work with, and softer on the feet. The company also added a small innovation: changeable T-straps with different designs so that customers could keep changing the look of their pair. Tiesta priced these at around ₹3,000 a pair for changeable flats and ₹6,500 for changeable heels, even adding a few 'Baby Kolas' for kids. They're a fast mover, but haven't beaten Tiesta's signature bridal sneakers. Despite their popularity across India, the market for Kolhapuri chappals has remained largely unorganized and outside of the purview of India's biggest fashion designers. Those who do sell designer Kolhapuris often manufacture in Mumbai or elsewhere outside the Kolhapur and Belagavi districts. Two public sector undertakings—Lidcom in Maharashtra and Lidkar in Karnataka—were set up in the 1970s to train Kolhapuri chappal artisans and retail their products. Their financial filings are not publicly available on their websites; instead, visitors are greeted with placeholder text. A community creation At ease in his home in Kolhapur, Shashikant Tulsidas Vhatkar, 56, told Mint about how generations of his family and others in the district have dedicated themselves to the iconic chappals. Making the Kolhapuri chappal is a community business, with each member of the family contributing to the end product. The women stitch thin strips of leather into the braid connecting the sandal's T-strap to the toe ring. The men polish and shape the shoes from the leather hides. It's how the craft has been kept alive by generations since medieval times, when the chappal is first said to have been created in the neighbouring districts of Kolhapur and Belagavi. Over time, locals developed variants of the chappals, each named after the village that designed them. By the 18th century, local satraps had taken to the Kolhapuri chappal, along with prominent rulers like Shahu Maharaj, and tanneries flourished in the area, boosting production. For old timers such as Vhatkar, making Kolhapuris is an art, and even reverence—he refused to sit on the heaps of buffalo leather. 'I cannot. This is our mother," he said. Among the prized leather hides is a six feet high, chrome-yellow piece that Vhatkar holds up in a dank, sweaty room. Traditionally, this buffalo hide is dyed with vegetable extracts. Typically, the artisans of Kolhapur use all kinds of leather to make chappals across price points. But over time, they have turned to softer, lower quality leather to make footwear for the mass market. Chappals made from these cheaper materials retail for ₹300-400 while those made with traditional leather and stitching techniques start at ₹2,000-3,000 a pair. Most of these artisans belong to a few castes, traditionally discriminated against in the social hierarchy. Apart from the burden of caste discrimination, they are also struggling with a ban on cow slaughter in Maharashtra. Without the traditional means of securing cow and buffalo hides, used by leather workers to make shoes and other goods for centuries, the cost of sourcing materials for Kolhapuri chappals has gone up. Apart from cheaper leather from Chennai and Kanpur, traditional Kolhapuri artisans are experimenting with artificial leather too. In a corner of his courtyard, Vhatkar also stores heaps of a thin leather parchment sourced all the way from Chennai. These are cheaper, and pale coloured, meant for the eminently wearable and affordable Kolhapuri chappals one finds street shopping in India. Usually, these are dyed chemically, and the bells and whistles of the Kolhapuri style are pasted on, rather than stitched. Vhatkar alone buys 10-15 tonnes of leather from Chennai every month, and hands it over to shoemakers in his area. He invests ₹25 lakh in the business annually, and has a turnover of ₹1 crore. However, Vhatkar insists, it is the artisans who take home all the money and leave him with little. Kolhapur's shoemakers, however, say they earn just about ₹25,000 a month, on average. One family can produce about 100 pairs of cheap chappals that don't require hand stitching in one week, but can make only 20 of the pricier variety in that time. This is a difficult trade to scale up, the artisans say. A whiff of oxygen Since news of the Milan catwalk controversy broke, Prada has become a buzzword all over Kolhapur. Sambhaji Shivaji Powar, a Kolhapuri chappal maker from Kale village near Kolhapur city, says the Italian brand has sparked a kind of renaissance for the traditional sandals. 'We got to know that Prada was using Kolhapuri shoes when everyone spoke about it in the market," he told Mint. 'Our customers come from all over the world but we never get the credit for it." One such customer, for instance, found the shoes Powar's wife Shobha makes on an Instagram page run by his son. He bought two pairs for ₹8,000, a handsome sum. But, the man later told Powar he was selling them to a customer in Australia. 'He would have sold it for a higher price but the maker goes unnoticed," he adds. Designer Toor also says she has international customers for her Kolhapuri inspired sandals, including buyers in Chile. But, she added, the controversy with Prada has had no impact on her sales. 'I think the current rise in interest in Kolhapuri chappals is a fleeting trend," she said. 'For mass-priced brands, there may be a bump in sales." Some artisans in Kolhapur agree with Toor. 'The hype is temporary and in a few days, everyone will forget," 40-year-old Mahesh Suhas Kamble told Mint. He is part of the fourth generation in his family in the traditional trade. Anurag Chandrakant Kokitkar, 33, also worries that the 'Prada' impact will fade away as just another hashtag. He is hoping that thanks to the fight with Prada, there will finally be a serious push to upgrade the chappal trade. In 2013, Kokitkar had set up a manufacturing unit called Paytaan (slang for Kolhapuri slipper), but shut it down during the pandemic. Appropriation debate Together, artisans and traders like Vhatkar make up a community of roughly 100,000 professionals living and working in the villages and towns of Kolhapur district. This is the community that advocate Hingmire says needs to be helped, despite the protections that India's geographical indication tag provides to the product. Legally, only a sandal made in the toe-ring style in the districts of Kolhapur (Maharashtra) and Belagavi (Karnataka) can be called 'Kolhapuri chappals'. But, he told Mint, foreign brands routinely get away with appropriating India's traditional handicrafts without so much as an acknowledgement, let alone compensation. Some are now trying to address these allegations of cultural appropriation. Last week, employees of Prada S.p.A visited Mumbai and Kolhapur to meet artisans and leaders of the Maharashtra Chamber of Commerce, Industry, and Agriculture (MCCIA). They promised to work with the Kolhapuri artisans on future designs. 'We want to bring in a revenue sharing model, get them to purchase from our artists. Prada has added glamour to our work," Lalit Gandhi, president of the MCCIA, told Mint. 'We need to build on that." Gandhi also said he is working with other Indian sourcing firms. Among those interested in sourcing authentic Kolhapuris for markets abroad is Asmara Group, an Indian apparel multinational. Asmara wrote to the MCCIA evincing 'interest" in the sandals. Among Asmara's buyers are American retailers Urban Outfitters, Abercrombie & Fitch, and Free People. Mint could not independently verify the claim. Prada did not respond to Mint's request for a comment, nor did Asmara Group. There is scepticism regarding what Prada and other fashion powerhouses can really do for the Kolhapuri chappals. After all, homegrown designers and exporters, too, have had no lasting impact on the way the chappals are made and sold. The Prada controversy has, however, reignited an old debate on what constitutes cultural appropriation. Some designers, such as Tiesta's Jogatar, believe Prada missed an opportunity to work with local designers and artisans and lend credibility to its collection. Others, including Toor, disagree. 'Designers around the world have drawn inspiration from Indian art and handicrafts like ikat, kalamkari, and bandhani for years," she said. 'The idea of cultural appropriation or giving credit to someone is a very subjective issue. It is all about a brand's ethos. But drawing inspiration is at the heart of design. At the end of the day, I am just happy that the rich tradition of the Kolhapuri chappal is on the global stage. That, too, with a big name like Prada."


Mint
16 minutes ago
- Mint
China EV brands Zeekr, Neta inflated car sales using insurance scheme
Neta inflated sales of over 60,000 cars between Jan 2023-March 2024-documents Scheme enabled companies to book sales early to meet aggressive targets China's auto industry has been roiled by cutthroat competition, prompting regulatory concern July 19 - Chinese electric vehicle brands Neta and Zeekr inflated sales in recent years to hit aggressive targets, with Neta doing so for more than 60,000 cars, according to documents reviewed by Reuters and interviews with dealers and buyers. The companies arranged for cars to be insured before they were sold to buyers, the documents show, enabling them under Chinese industry car registration practices to book sales early so they could hit the monthly and quarterly targets, the dealers and buyers said. Neta booked early sales of at least 64,719 cars through this method from January 2023 to March 2024, according to copies of records it sent to dealers, seen by Reuters. That was more than half the sales of 117,000 vehicles it reported over the 15 months. Zeekr, a premium EV brand owned by Geely, used the same method to book early sales in late 2024 in the southern city of Xiamen through its main dealer there, state-owned Xiamen C&D Automobile, according to dealers, buyers and sales receipts seen by Reuters. Vehicles booked as sold before reaching a buyer are called "zero-mileage used cars" in the Chinese auto industry. The practice has emerged out of cutthroat competition for sales in the world's largest auto market, which is reeling from a brutal, years-long price war caused by chronic overcapacity. The industry faces a moment of reckoning, with state media calling out the zero-mileage car practice, China's cabinet pledging to regulate "irrational" competition, and other central government bodies organising meetings with the industry's largest players to express concern about such methods. On Saturday a publication run by the China Association of Auto Manufacturers said the industry ministry was planning to clamp down on the practice by banning cars from being resold within six months of being registered as a sale. Also on Saturday, state media reported that Zeekr had been selling cars with insurance already purchased to inflate sales, the first such naming and shaming of a specific automaker. In a front-page story, the China Securities Journal newspaper interviewed Zeekr car buyers in cities such as Guangzhou and Chongqing, who the newspaper said had found that their cars already had insurance policies before they were sold. They said they were refused refunds, even though they felt they were deceived. The newspaper questioned Zeekr's unusually high sales in the cities of Shenzhen and Xiamen in December. Its reported sales in Xiamen surged to 2,737 that month, more than 14 times its monthly average. Reuters could not determine how much of that volume might have been booked early. The China Securities Journal also raised questions over Neta's sales, saying it showed anomalies. Reuters is reporting for the first time details of how Neta inflated sales. Zhejiang Hozon New Energy Automobile, which owns Neta, and Xiamen C&D did not respond to requests for comment on Saturday. A spokesperson for Geely said, "Geely firmly rejects the report put forward by the China Securities Journal." The spokesperson declined to comment on Reuters findings or provide further details. Zeekr told Reuters in an English-language statement on Sunday that the "vehicles referenced in some recent reports are for showroom display" that were covered by "mandatory car insurance" to ensure their safety while being exhibited. "Before these vehicles are handed to customers there are no retail invoices issued, and they have not been registered or licensed with any vehicle registration authority," the company said. In a separate Chinese-language statement published on its official Weibo account on Sunday, Zeekr said the policies put on these vehicles were "mandatory traffic accident insurance". " firmly opposes practices such as the sale of 'zero-mileage used cars' that disrupt the industry order," the company said, adding that the exhibition vehicles were "in a legal sense, always brand new and unregistered car products." Zeekr did not respond to Reuters queries about using these cars to book sales. Li Yanwei, an analyst with the China Automobile Dealers Association, said he believed the firms carried out such practices to embellish their financial reports and achieve their performance goals. "This way of whitewashing performance is not advisable," he wrote on Chinese social media platform Weibo on Saturday. Analysts and investors tracking China's auto industry gauge performance and estimate inventory levels with two sets of sales data. Wholesale numbers reported by automakers to the industry association show sales from automakers to dealers, while retail data compiled from insurance registration records show the sales to users. Last month the state-owned People's Daily, the mouthpiece of China's ruling Communist Party, published an editorial condemning the sale of zero-mileage used cars domestically and listing a litany of harms the practice brings upon the industry and buyers. This month four dealer associations based in the wealthy Yangtze River Delta urged automakers to set them more reasonable sales targets and incentive policies, saying, without providing details, that dealers were being forced to falsify sales. Neta booked sales early by arranging insurance policies for cars before sending them to dealers, according to records shared with Reuters and a dealer for the brand. The records contain details for each car and the insurance policies purchased on them, with the names of the insurance agents. Dealers were able to refer to these when they found a buyer to transfer the policy to, according to copies seen by Reuters. The company booked early sales of 64,719 cars this way. "In Neta's case, the company made it clear to dealers that the cars were insured ahead of time and therefore counted as sold," said the dealer, who spoke on condition of anonymity, citing fears of retaliation from the company. "We had to explain to buyers that the traffic insurance was complementary and remind them it would expire earlier and should be renewed on time," he said. But three Neta buyers, who asked not to be named, told Reuters the dealerships had not told them the policies had begun well before the purchase date, only finding out when the policies expired. The dealer said Neta started doing this in late 2022 to obtain EV subsidies that were set to end that year. Neta's sales peaked in 2022 when it was ranked as the eighth-largest maker of new EVs in China with sales of 152,000 vehicles. Sales fell last year to 87,948 vehicles, including 23,399 exported, and it sold 1,215 cars in the first quarter of 2025, according to data from the China Association of Automobile Manufacturers. The brand has been in financial trouble since late 2024, and its owner, Zhejiang Hozon New Energy Automobile, entered bankruptcy proceedings in China last month, according to state media. The Neta dealer said many of the zero-mileage used cars he received from the company remained in his warehouse, unsold. The company "only had one message: Just do it, everyone else is doing it". Zeekr, which is being privatised by Geely Auto, booked sales with the help of Xiamen C&D, which runs dealerships for Zeekr and other brands. Xiamen C&D insured and registered the vehicles under the names of two subsidiaries in December, allowing Zeekr to count the sales before year-end, according to four dealers and two buyers, as well as a receipt shared with Reuters. Zeekr dealers sold some of the cars in subsequent months to buyers in other cities such as Beijing and Chongqing, the sources said. "The Zeekr salesman said the car would be 3,000 yuan less than a car I would get from the store and I would also get a charging coupon worth 10,000 yuan," said a buyer in another southern city. He declined to be named, citing concerns of retaliation from the automaker. The China Securities Journal reported that most of the owners it spoke to said their cars were insured by Xiamen C&D and its affiliates. China Automobile Dealers Association data showed that 2,508 of the 2,737 sales Zeekr booked in Xiamen in December were sold to companies, while 257 went to individual buyers. But data published by Xiamen's vehicle administration bureau showed just 271 cars registered in December for license plates, which genuine buyers generally obtain once they receive their cars. This article was generated from an automated news agency feed without modifications to text.
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First Post
an hour ago
- First Post
RIC redux: How India should navigate old groupings in a new world order
Growing interest in RIC among Indians is not about rejecting the US or embracing China—it's about building leverage through diversified partnerships, given today's fragmented global order further disrupted by Trump-era unpredictability read more In recent times, there has been a noticeable resurgence of interest among Indians in the Russia-India-China (RIC) grouping. This renewed attention stems in large part from a growing sense of unease—if not disillusionment—with the United States, particularly during the Trump presidency, where abrupt policy shifts and erratic rhetoric left New Delhi confused, concerned, and confounded. Once regarded as a staunch ally of New Delhi, Donald Trump's sudden, unpredictable tilt toward Islamabad—his public praise for Pakistan's military and even his offer to mediate on Kashmir, a diplomatic red line for India—was seen as either dangerously naïve or strategically duplicitous. For a country that had embraced Trump as a potential ally and viewed the US as a strategic partner in countering growing Chinese hegemony, this U-turn was jarring. STORY CONTINUES BELOW THIS AD This perceived betrayal has triggered growing introspection within New Delhi's strategic circles. Has India placed too many eggs in the American basket? Is the time ripe for recalibrating and revisiting older platforms like RIC—not out of ideological affinity, but as a pragmatic counterbalance in a turbulent world? RIC: Rhetoric vs Reality The RIC grouping, first conceptualised in the 1990s, was designed as a forum for three major Eurasian powers to coordinate on global and regional affairs. Though often overshadowed by broader groupings such as Brics and the SCO, RIC still offers potential as a platform for strategic dialogue—especially as global power dynamics shift toward multipolarity. Russia remains a steadfast partner for India, despite its increasing dependence on China in the wake of Western sanctions over the ongoing Ukraine war. The Indo-Russian partnership has stood the test of time, rooted in mutual trust and decades of cooperation. China, by contrast, presents a complex duality: it is both a vital economic partner and a strategic adversary. Border tensions—including the standoffs in Doklam and Galwan—and broader concerns about China's activities in the Indian Ocean and South Asia underscore the trust deficit. China's growing alliance with Pakistan, vividly manifested during Operation Sindoor, further deepens India's apprehensions. STORY CONTINUES BELOW THIS AD While RIC presents an opportunity to engage China in structured dialogue, India must approach such forums with realism. New Delhi cannot afford to fall for the 'Hindi-Chini bhai-bhai' narrative—even when American perfidy becomes too obvious to ignore. Playing Both Sides, Committing to None Given today's fragmented global order—further disrupted by Trump-era unpredictability—India must resist aligning fully with any single bloc. This isn't about returning to Nehruvian non-alignment, but about pursuing interest-based alignment rooted in realism. India must engage all major powers—but on its own terms. From the West, India can leverage defence technology, economic investment, and support on global platforms. And from Russia and China, it can secure energy cooperation, regional stability dialogues, and support for a multipolar global order. This two-track diplomacy should not be viewed as indecision but as pragmatic statecraft. In this scheme of things, no one is a pariah. What matters is India's supreme national interest—a fact that the Ministry of External Affairs reminded Nato's secretary-general of this week when he threatened New Delhi with 'secondary sanctions' over its ties with Moscow. STORY CONTINUES BELOW THIS AD The goal is not to choose sides but to make choices that serve India's long-term interests and aspirations. Significance of Strategic Autonomy Since Independence, strategic autonomy has been the cornerstone of India's foreign policy. Since 2014, this policy has been reoriented from 'non-alignment' to 'all-alignment', with the country's strategic autonomy intact. Whether it is forging closer ties with the US, buying arms and oil from Russia, or even standing by Israel without abandoning the Palestinian cause—India has consistently asserted its right to act independently. That tradition must continue. Groupings like the Quad or RIC should be treated as platforms for engagement, not as binding alliances. India must adopt a model of issue-based alignment—collaborating where interests converge, disengaging where they don't. New Delhi's rising global profile brings both opportunities and challenges. India must recognise that while partnerships are helpful, its rise will largely depend on its own internal strength—economic resilience, military modernisation, and political stability. The truth is that neither Washington nor Beijing truly wants New Delhi to emerge as a rival power. Both offer engagement—but often attach strategic strings. Recognising this reality is essential. STORY CONTINUES BELOW THIS AD In today's volatile global order, which is akin to a 3D chessboard of overlapping alliances and competing interests, India must therefore act like a fox rather than a hedgehog. The fox, as the old saying goes, knows many things, while the hedgehog knows one big thing. India cannot afford to get locked into any singular worldview or alliance structure. It must embrace complexity and prepare for multiple contingencies. In this scenario, India's best bet is to stay pragmatic and relentlessly focused on its own interests. The growing interest of Indians in RIC must be viewed through this lens. It is not about rejecting the US or embracing China—it's about building leverage through diversified partnerships. A Lonely but Glorious Rise This stand comes with a price. India often finds itself alone in a bloc-oriented world order. Both sides see it as suspect. Recently, following the Brics summit in Brazil, some geopolitical analysts went so far as to call India an outlier—or worse, a Trojan horse in the grouping. Conversely, the US-led West finds India's engagement with countries like Russia and Iran, as well as its presence in Brics and the SCO, problematic. STORY CONTINUES BELOW THIS AD What both sides don't realise is that it is the presence of a country like India that helps keep the volatility of the world in check—whether political or economic. It helps maintain some degree of balance in a bloc-based global order. India's journey toward great-power status may be lonely—but it can also be glorious, provided it is navigated with strategic wisdom and restraint. The world respects strength and consistency—not dependence or ideological rigidity. New Delhi must continue to walk its own path: open to all, beholden to none. In the global power game, there are no permanent friends or enemies—only permanent interests. This, however, does not mean that India's foreign policy should become unethically Nixonian in nature. For India, a civilisational state steeped in dharmic consciousness, foreign policy must be more than transactional—dictated largely through the wider lens of dharma. It is this timeless principle that must guide India's foreign policy. And in this worldview, there's always space—and scope—for both Quad and RIC. STORY CONTINUES BELOW THIS AD The views expressed in the above piece are personal and solely those of the author. They do not necessarily reflect Firstpost's views.