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Dr. Jean-Marc F. Blanchard's picture

Bad THAAD, THAAD’S Bad: Reflections about China’s Economic Sanctions and their Implications for Multinational Corporations

For about the past three months, Beijing has been escalating economic pressure on South Korea because of the latter’s decision to deploy the Terminal High Altitude Area Defense (THAAD) anti-missile system to counter North Korea’s missile threat. Chinese economic coercion has encompassed barriers to Korean cultural products like K-Pop bands, television shows, and online games entering China, bans against Chinese tourists going to Korea, the shutdown of Korean stores in China, the cessation of investment deals, and reduced buying of Korean products.

Mr. Naoyuki Haraoka's picture

“America First” policy should be reinterpreted as “America’s MNEs First” Policy

United States (US) President Donald Trump aims to keep American companies inside the US to secure American employment. International trade analysis suggests, though, this is a wrongheaded policy. The present situation is one where Japan, Korea, and members of the Association of Southeast Asian Nations (ASEAN) export intermediary goods to China, these countries’ subsidiaries or factories in China use a large proportion of these goods to assemble final goods for export to the US, European Union (EU), Japan, and elsewhere, and the US imports substantial amounts of assembled goods from China while exporting much less to China than those East Asian nations.

Dr. Hwy-Chang Moon's picture

South Korea Must Provide a Better Business Environment to Attract Foreign Direct Investment

Foreign direct investment (FDI) in South Korea has grown continuously over the past two years and currently is at historical highs. However, challenges flowing from American President Donald Trump administration’s protectionist trade and reshoring policies and increasing competition from other countries proactively moving to enhance their respective business environments to attract FDI will challenge Korea’s ability to continue to successfully attract FDI. In order to remain an attractive destination for FDI, the Korean government needs to offer a more attractive business environment to foreign investors.

Dr. Scott MacDonald's picture

Shipping, Trade, and China

Shipping remains a critical factor in global trade and also has been a key factor in the rise of the Chinese economy since the last decades of the 20th century. However, the 2008 Great Recession caught global shipping in a period of fleet expansion and greater capacity to carry freight per ship. Post-2008 the shipping industry has faced tough times. Trade has not recovered from levels prior to that year. Rates have been drastically cut, company revenues have plummeted, some companies went into bankruptcy (as with South Korea’s Hanjin Shipping in 2016), and other companies have merged.

Ms. Susan Finder's picture

AIIB’s new robust policy on prohibited practices

On 8 December 2016, about a month after my previous blogpost entitled “Chinese Companies and the World Bank’s Procurement Blacklists” was published on this website, the Asian Infrastructure Investment Bank (AIIB) re-issued its Policy on Prohibited Practices. The policy has not received much attention outside of China, but is significant for both the legal and business community. In the Policy on Prohibited Practices, the AIIB sets out its rules and procedures. Prohibited Practices are defined in Section 3.2.

Dr. Manochehr Dorraj's picture

China’s Expanding Investment in Renewable Energy Development in the Middle East and North Africa

China is the number one producer of and investor in renewable energy globally. Illustrating this, it has over 500 solar panel manufacturing companies, including the world’s top three solar panel producers. Its capabilities have allowed it to take a leading role in renewable energy investment in the Middle East and North Africa (MENA). The latter’s interest in renewables seems surprising given that MENA countries are primarily known for their massive oil and gas reserves and reliance on fossil fuel as a major source of domestic energy and export earnings.

Dr. Jean-Marc F. Blanchard's picture

Hasty Reaction to China’s Taste for Wafers?

There has been growing angst in the United States (US) about China’s designs in the semiconductor sector. What seems to have elevated the level of anxiety is the fact Chinese firms now are throwing around billions of dollars to acquire American and European semiconductor firms like Lattice Semiconductor (US) and Aixtron (Germany). Largely in response to Chinese moves, Barack Obama, at the end of his 2nd term, launched a study of the state of the US semiconductor sector that devoted substantial attention to China.

Dr. Jean-Marc F. Blanchard's picture

China’s Capital Fright and its (Ir)Relevance for Chinese Outward FDI

Over the past year or so, China’s foreign exchange reserves have been “plummeting,” falling several hundred billion (US) dollars as a result of Chinese investors pouring massive sums of money into foreign assets such as real estate and overseas stock markets and Chinese companies undertaking record levels of outward foreign direct investment (OF

Mr. Naoyuki Haraoka's picture

Increasing Inward Mergers and Acquisitions of Japanese Companies and their Implications

Traditionally, outward mergers and acquisitions (M&As) of non-Japanese firms by Japanese firms have represented the dominant percentage of total M&As involving Japanese companies. However, past patterns are shifting with overseas companies’ acquisition of Japanese companies constituting a greater percentage of total M&A.

Dr. Amitendu Palit's picture

India’s Demonetization will encourage more FDI from Asia-Pacific

The Narendra Modi government in India recently banned the use of 500- and 1000-rupee notes. This unprecedented move resulted in the withdrawal of 86 per cent of currency in circulation. The ostensible objectives behind the government’s move was to tackle black money, reduce counterfeiting, and check terrorist financing.

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*Blogs represent the views of their authors and are not necessarily endorsed by the Wong MNC Center, its Board of Directors, or its Advisory Board. They are intended for the non-commercial use of readers in order to foster debate and discussion and to facilitate and stimulate research.