and Energy

MNCs in the News-2020-01-10

China Banking and Insurance Regulatory Commission (CBIRC) makes it yet easier for foreign banks to set up and expand in China. China’s Ministry of Resources moves to lubricate the way for greater foreign direct investment (FDI) in energy exploration and extraction in China. Chinese outward FDI in North America and Europe plummeted in 2019 for multiple reasons. China ranked as Cambodia’s largest source of FDI in 2019. Japan’s Financial Service Agency (FSA) is preparing a guidebook on the registration process for investment management, investment advisory, and related businesses to boost Tokyo’s status as a financial capital. Iranian action against United States (US) troops in Iraq led various Japan companies to send staff out of Iran and limit travel to Iran and/or Iraq. Korea’s inward FDI in 2019 dropped notably versus the highs of 2018, though the second half of 2019 was relatively promising versus the 1st half. Korean construction firms have gone on high alert due to the tensions in the Middle East and the Korean government is mobilized to help such businesses.

MNCs in the News-2019-10-18

At a State Council meeting, China promised more action to eliminate restrictive policies on foreign direct investment (FDI). China’s State Council announced new measures to expand the opening of its financial sector to foreign banks and insurers. China’s Ministry of Commerce (MOFCOM) reported that China’s non-financial outward FDI grew 3.8 percent for the 1st three quarters of 2019 year-over-year (YOY), a slight improvement over the prior YOY period. Per a high ranking Cambodian official, for the period 2016 to August 2019 China was his country’s largest investor, with the Belt and Road facilitating this. Japan may exempt asset management companies, including hedge funds, from its new FDI review regime. A no-deal Brexit might significantly impair the value of Nissan’s FDI in the United Kingdom (UK). Strikes at GM Korea and other issues have dented Korea’s exports. Doosan Group’s move to transfer its data storage and protection system to Amazon Web Services raises concerns about development of local cloud computing sector.

MNCs in the News-2019-10-11

China Ministry of Foreign Affairs (MOFA) spokesman rejects claim that Beijing is forcing American companies to abandon their values. China Securities Regulatory Commission (CSRC) has put forth the specific timetable when 100 percent foreign direct investment (FDI) stakes in brokerages, futures, and fund management companies will be allowed. United States (US) Senator Marco Rubio has sent a letter to the US Department of the Treasury requesting a national security review of China’s Beijing ByteDance Technology Co.’s acquisition of Musical.ly. US sanctions may have driven China National Petroleum Corporation’s dismissal from Iran’s South Pars field Phase 11 project. Japan and South Korea will soon have consultations relating to South Korea’s World Trade Organization case against Japanese export controls. Pressure from international institutions and business considerations are driving Japanese firms to pay more attention to corporate social responsibility (CSR) issues in their Southeast Asian supply chains. Korea witnesses growth in inward FDI for the first time in five quarters, with strength in new industrial sectors. Samsung Electronics contemplate major semiconductor FDI in Xian despite poor macro-political and economic conditions because of needs of Chinese government and customers.

MNCs in the News-2019-09-06

On the eve of German Chancellor Angela Merkel’s visit to China, China’s Ministry of Commerce (MOFCOM) reports German foreign direct investment (FDI) in China grew more than 60 percent over the first seven months of 2019 year-over-year. Chinese media delivered some packaged criticisms against FedEx for the latter’s alleged shipments of controlled goods and rerouting of packages destined for Huawei. Relatively small-scale protests took place in three Kazakhstan cities against potentially questionable Chinese factory FDI. The United States (US) concludes declaration with Poland for the rigorous evaluation of foreign suppliers involved in 5G networks which some see as directed at China and Huawei. Nissan considers leaving Korea as Korea-Japan frictions make its challenging situation there even worse. Uniqlo partners with the International Labor Organization (ILO) to support research on labor markets and social security systems in some of its production hubs in South and Southeast Asia. Korean economic difficulties due to frictions with Japan encourages Hyundai union to settle with management without a strike. Korean government official meets with LG Group and SK Group executives to try to get them to resolve trade secrets dispute that LG Chem has brought to the US International Trade Commission.

MNCs in the News-2017-11-03

The door partly closes on North Korean businesses in China as Beijing tightens sanctions. Analysis reveals Springer Nature has been blocking access to articles in China. Consultancy report highlights expectations of greater Chinese outward investment over the next 12 months with the Belt and Road Initiative anticipated to be a key causal force. The Philippines secures USD $6 billion in Japanese investments after President Duterte’s official visit to Japan. Mitsui Engineering and Shipbuilding Co. to build crane manufacturing plant in Indonesia’s Batam Island free trade zone to take advantage of incentives. South Korean government hopes to prepare host of large-scale investments in China to be announced during upcoming China-South Korea summit. South Korea’s Ministry of Trade, Industry and Energy to decide upon approval of LG Display’s politically sensitive proposed multibillion-dollar OLED production facility investment in China. Indonesia’s FDI shows good growth in the third quarter. Indonesia’s Finance Minister challenges stigmas associated with Chinese investment. Central Group and JD.com announce USD $528 million open system online marketplace JV that links to government’s 4.0 initiative. Thailand’s state-owned PTT Exploration and Production booked another impairment charge due to its delay in moving ahead with investment on its Canadian Mariana Oil Sands project. In its annual report, the Malaysian government stresses positive impacts of the Belt and Road Initiative for the country and the region. Japanese ODA programs increasingly attracting Japanese investors to Vietnam. Vietnam expects USD $30 billion FDI by end of 2017 with majority of investment coming from APEC countries.

MNCs in the News-2017-01-06

China forces Apple to withdraw New York Times apps from its China App store. During a visit to Korea, Chinese Foreign Ministry official warns Korean businesses of possible adverse consequences because of South Korea’s adoption of THAAD system. US government report may result in tighter restrictions on foreign involvement in US semiconductor sector with particular ramifications for Chinese investors. There are doubts Chinese foreign direct investment (FDI) in the US will be able to maintain the same volume in 2017 as in 2016. Sri Lanka will strike agreements with Chinese investors to advance the Hambantota Port project, but large local protests dampen the atmosphere. Donald Trump blasts Toyota’s plans to invest in Mexico and sell to the US, with Japanese officials defending the contribution of Japanese firms to the US. While growing slowly, inward FDI (IFDI) into South Korea hits new heights with European Union (EU) investors representing a big proportion of investing firms. Indonesia remains optimistic about its ability to attract IFDI despite the fracturing of its partnership with JP Morgan Chase. Thailand plans new measures and new focuses in its efforts to reach new IFDI targets for 2017.

MNCs in the News-2016-12-23

American firms fret that Trump’s stances on China trade and Taiwan may lead China to retaliate against them. Chinese firm drops contract with Korean software and platform provider due to sensitivities about Korea’s decision to deploy the THAAD system. Foreign decision makers strongly distrust Chinese state-owned enterprises where merger and acquisition deals are concerned. China retorts those critics arguing One Belt, One Road is a massive dumping scheme do not understand the idea of a double circulation economy. Japan is moving to force foreign pharmaceutical product prices to undergo annual reviews. Softbank pledges $1 billion investment in United States (US) as a partial fulfillment of a commitment made to US president-elect Trump. Russia, Japan, and many private companies strike new deals leading to cooperation possibilities in new areas. Japanese firms still intrigued by opportunities in the United Kingdom (UK) despite Brexit. The UK and Japan glow about a major nuclear cooperation agreement. The European Commission has fined Sony Corp., Panasonic Corp., and Sanyo Electric Co. regarding rechargeable lithium-ion battery price fixing. Investment in South Korea’s free economic zones is soaring but below prior highs. Hyundai Heavy Industries Co. wins two orders including one from Iran’s state-owned Islamic Republic of Iran Shipping Lines, the latter’s first post sanction order. Indonesia and Google fail to come to a settlement about Google’s alleged tax underpayments. Thai Prime Minister Prayuth Chan-ocha orders mine operated by Australian gold miner Kingsgate subsidiary Akara Resources to shut down for health and environmental reasons. Vietnam’s inward FDI hits new low for the year.

MNCs in the News-2015-08-28

China dials up new leadership at its telecommunications giants. Tsinghua Unigroup attempts to chip away at opposition to its purchase of Micron Technology. China investors see stable investment returns on offer in the UK. China’s Yunnan province pushes infrastructure construction to support the One Belt, One Road (OBOR) and other initiatives. Alibaba given 6-month extension to operate in Taiwan while Taiwan appellate body review its case. Japan strives to strengthen its medical and pharmaceutical firms. Japan and Mekong River nations adopt “Mekong Industrial Development Vision.” Japan and China competition to build high-speed railway in Indonesia reaches its final stages. Korea touts its advantages and pursues new policies in order to double inward foreign direct investment (FDI). Korea orders recalls of select Ferrari cars, Harley Davidson motorcycles, and Volvo trucks due to various defects. Toyota puts the brakes on Prius production in Thailand due to tariff dispute. Foreign business leaders in Thailand believe Erawan Shrine bombing will not influence FDI inflows. Investors express complain about the vagueness of Vietnam’s new foreign investment guide.

MNCs in the News-2015-02-27

Foreign firms and industry associations struggle to determine how to deal with Chinese regulators. Foreign information technology firms lose place on China’s official list of approved products. Despite political challenges, Google salivates over China opportunities created by massive Android user base. China’s anti-corruption campaign and other factors disrupt payback from Sino-Myanmar pipeline investments. Japanese Prime Minister Abe Shinzo plans to release measures in March to boost inward foreign investment into Japan. Japan’s weak yen policy encourages Japanese firms to invest abroad. Japan’s railway consortium likely to win bid to build Doha subway system. Japan concludes major loan agreement with Kenya to fund expansion of Mombasa port. Korean lobbies foreign companies to invest more in Korea. Indonesian policies to promote its domestic auto sector push out GM. Vietnam’s opening of retail sector to foreign firms intensifies challenges for domestic retailers.