CFIUS

Executive Director Jean-Marc F. Blanchard gives keynote speech at 2nd Silicon Valley-Beijing Internet of Things Summit

On January 13, 2018, Dr. Jean-Marc F. Blanchard, Executive Director of the Mr. & Mrs. S.H. Wong Center for the Study of Multinational Corporations (Wong MNC Center) gave a keynote speech at the 2nd Silicon Valley-Beijing Internet of Things Summit & Investment and Financing Competition on a panel entitled “Design for Manufacturing.” The title of Dr. Blanchard’s speech was “The Political Environment Surrounding Chinese Expansion in Silicon Valley.” In his remarks, Dr.

MNCs in the News-2018-01-08

Chinese drug approval authorities likely to approve several blockbuster foreign drugs in 2018. Hyundai Motor Group faces declining sales growth in 2018 in large part due to political and economic challenges in China. China State-Owned Assets Supervision and Advisory Commission (SASAC) to issue new guidelines to improve behavior of state-owned enterprises (SOEs) in various areas. United States (US) Committee on Foreign Investment in the United States (CFIUS) concerns leads China’s Ant Financial and US MoneyGram to terminate the former’s acquisition of the latter. Japan’s Toshiba Corp sells floundering US nuclear business Westinghouse, which went bankrupt after regulations and other factors stalled many of its projects, to Canada’s Brookfield. US legal process for Takata Corp.’s US unit coming to completion, which should allow company to make payouts to claimants who suffered from Takata’s faulty airbags. Korea urges US policy makers to reconsider the US International Trade Commission's recommended special tariff on imported Korean washers. Lotte Group struggling to shed its politically troubled Chinese hypermarket chain after talks with Thai conglomerate failed to produce agreeable sale price. Indonesia’s state-owned energy company Pentamina took back control of Indonesia’s largest oil and gas block helping Jakarta to expand its control over domestic energy production. Indonesia’s Investment Coordinating Board launches several measures to spur 10 to 14 percent year on year growth in FDI. Thailand’s Board of Investment expects FDI into its EEC to continue to grow as new EEC policies are implemented and foreign companies become familiar with EEC requirements. Chinese FDI into Malaysia is expected to move out of infrastructure and property development and into new sectors due to China’s Belt and Road Initiative. Japanese Ambassador touts that Japanese firms have a good chance to win Kuala Lumpur-Singapore high-speed rail project. Vietnam’s Ministry of Transport has set a new deadline for long delayed Chinese-funded Cat Linh rail project

MNCs in the News-2017-10-20

At 19th Party Congress, China promises greater market openness for foreign investors, but foreign businesses and governments cautious. Top China Banking Regulatory Commission (CBRC) official says foreign banks may get more latitude in entering and operating in China’s banking sector. Chinese outward foreign direct investment (FDI) plummeted 41.9 percent over the first nine months of 2016 year-over-year. In the first three quarters of 2016, Chinese outward merger and acquisitions activity drops significantly in both deal volume and size. Toyota and Mazda seek USD $1 billion incentive package from US states bidding for their joint car factory. SoftBank Group struggling to carry out US investments after several of its deals have been caught up in the CFIUS review process. US Department of Justice demands Kobe Steel release all information related to it falsified steel and metal data. SK-Sinopec JV to expand its Wuhan Petrochemical plant mirroring success of SK Innovation’s China Insider strategy. Korean battery manufacturers finding backdoors into the Chinese market despite Chinese government’s preferential treatment of domestic firms. Indonesia works to attract private investment despite bad atmosphere created by problems with Freeport-McMoran. Freeport-McMoRan facing labor union protests over anticipated layoffs. New US-Thai joint committee formed to increase bilateral investment following Thai Prime Minister’s recent US visit. Malaysia’s Ministry of International Trade and Industries leads trade mission to Europe to attract German investment. MITI reports a decline in investments this year. Vietnamese government begins implementing its divestment plan for Dung Quat Oil Refinery, attracts foreign investors. Foreign brewers eagerly awaiting Vietnamese government’s divestment plans for country’s largest domestic brewer Sabeco.

MNCs in the News-2017-09-29

China’s National Development and Reform Commission (NDRC) notes possibility China may expand its negative list approach nationwide as early as 2018. State-owned Assets Supervision and Administration Commission (SASAC) representatives encourage foreign investors to partake in China’s mixed-ownership reform of state-owned enterprises (SOEs). At the World Trade Organization (WTO), the United States (US) asks China to hold off implementing its cybersecurity law. US Committee on Foreign Investment in the United States opposition torpedoes Chinese bid to take a 10 percent stake in Dutch mapping company. Kobe Steel Ltd and US Steel Corp. to launch US joint venture to produce steel needed to build cars that meet their respective governments’ tightening emissions standards. Sumitomo has invested in Taiwanese electric scooter maker Gogoro to tap Gogoro’s advanced electronic battery technologies which are in increasing demand due to rising environmental standards. Unilever acquires Carver Korea as Korean makeup brand weakens due to declining sales in China resulting from THAAD tensions. Despite suffering from China’s THAAD related sanctions, Hyundai opens big data center in China to tap Chinese government’s promotion of connected cars. Indonesia's Transportation Ministry opens 12 infrastructure projects worth a total of USD $3 billion to foreign investors. Indonesia’s Indika Energy raises stake in large local coal producer after forced Freeport-McMorRan divesture and new Indonesian government policies drive Korea’s Samtan to reduce its stake in the country. Vietnam’s Ministry of Finance says equitisation progress of state-owned enterprises so far disappointing. World Bank and Vietnam’s Ministry of Industry and Trade collaborate to implement solar projects pilot auction program.

MNCs in the News-2017-09-15

China’s potentially massive electric car market and regulatory pressure charge up foreign auto firms’ willingness to share technology and invest in the sector. China plans to blacklist and potentially punish blacklisted Chinese outward investors that become “discreditable.” National security concerns lead American President Donald Trump to crunch Lattice chip’s sale to Chinese buyer. The European Commission has come up with a pan-European measure to vet Chinese investments in the European Union (EU). Thailand’s military junta assures Japanese investors proposed plan for USD $45 billion injection into Thailand’s Eastern Economic Corridor will go ahead regardless of the results of the next election. Suzuki Motor partnering with Toshiba and Denso to invest in electric vehicle facilities in India in line with the latter’s “Make in India” initiative and increasing demand for green mobility. Hyundai releases plans for electric vehicle manufacturing plant in India after Indian government pledges to ban sales of non-EV cars by 2030. South Korean retail giant Lotte Group has begun making plans to sell its China shops due to politically-related pressures in China. Asian Development Bank to support Indonesia’s energy sector. China’s expanded investment in Thailand raises local anxieties. The divestment of numerous Vietnamese SOEs has problematic features that discourage foreign investment. Southern Vietnamese province promoting investment in several industrial sectors through policy reforms and other initiatives.

MNCs in the News-2017-07-28

The China Banking Regulatory Commission moves to allow foreign banks to purchase Chinese lenders through a locally incorporated subsidiary. Analysis claims China is cracking down on acquisitive private actors, so-called “Grey Rhinos,” because of risks they pose to the Chinese economy. The United Kingdom is moving to tighten its foreign investment regime partly to deal with investors like China which have been investing in sensitive areas. Toyota to produce electric vehicles in Thailand to take advantage of various economic incentives. Consortium led by government sponsored Innovation Network Corp. of Japan announces final bid for Toshiba's flash memory division. South Korea following up on USD $10 billion infrastructure development deal with India. Recent data reveals Korean companies increased spending on US lobbying after inauguration of US President Donald Trump. Indonesian Investment Coordinating Board says Singapore remains largest investor in Indonesia, with Chinese investment increasing in both quantity and quality. Thailand’s Board of Investment confident overall applications for investment privileges will reach target of USD $18 billion in 2017. Malaysia’s Second Finance Minister states country has some well-run government-linked companies and rebuts concerns about Chinese investment. Two Japanese and seven Chinese state-owned enterprises bid for Bandar Malaysia project. Vietnam Steel Association proposes limiting foreign investment to certain kinds of steel projects.

MNCs in the News-2017-07-21

In rare praise for foreign firms, Chinese President Xi Jinping lauds their contribution to China and says the Chinese government must do more to attract and retain them. The China Banking Regulatory Commission imposes strict limits on Chinese banks providing support for overseas deals by Dalian Wanda. Some feel the United States (US) Committee on Foreign Investment in the United States is becoming stricter which, in turn, may hinder Chinese investment flows in the US. Toyota continues USD $310 million UK plant expansion after receiving Brexit reassurances from British government. Japanese financial institutions move to set up subsidiary businesses in the EU as Brexit jeopardizes their financial services licenses. Hyundai to open fifth Chinese assembly plant as compact vehicle sales are expected to rise before Chinese government’s increase in purchase taxes next year. South Korea’s Nexen Tire Corp. signs memorandum of understanding with United Arab Emirates’ state-owned Mubadala Development Co. Indonesian branch of ExxonMobil drops talks on East Natuna natural gas block, with Jakarta saying it intends to invite firm to discuss project again. Economist says Malaysia to become key economic corridor because of strong economic fundamentals, strategic geographical location and Prime Minister’s diplomatic efforts. China’s restrictions on bank loans to Dalian Wanda Group diminish prospects of Bandar Malaysia project. Vietnam’s Prime Minister signs decision to boost his country’s solar power development which is spurring much foreign investor interest. At HCM City conference, Laotian provinces court investment from Vietnam.

MNCs in the News-2017-06-16

American and other trade unions shake and flip over potential risks to McDonald’s workers after the firm sells its self-owned China stores to Citic and Carlyle Group. United States (US) moving to strengthen review processes to encompass Chinese investment through mechanisms that are not yet subject to Committee on Foreign Investment in the United States (CFIUS) review processes. Responding to news that US is striving to tighten the CFIUS review process, China calls on the US to avoiding politicizing “commercial takeovers.” Canyon Bridge files for third time for CFIUS review of its deal with Lattice Semiconductor. Thailand’s government may loosen licensing requirements for Chinese engineers working on Thai-Sino railway to the consternation of local engineer associations. Japan’s Maritime Air Systems and Technologies (MAST) show offers Tokyo venue to boost military sales with Southeast Asia. Japanese firms carefully evaluate business relations and assets in Qatar following country’s crisis. China blacklists 24 South Korean companies following continued anger over THAAD system. Daewoo Engineering and Lotte Engineering & Construction each sign MOU with Laos’s Petroleum Trading Lao Public Co for infrastructure projects. Indonesian government invites Chinese investors to participate in railway construction project in Bali. CAT Telecom infrastructure development plans continue to drive Thailand to be Greater Mekong Subregion’s digital hub. Lawsuit alleges money misappropriated from Malaysian state fund was used to finance USD $2.2 billion acquisition of US energy firm. Malaysian Minister announces that Malaysian companies will continue to invest in Indonesia. Vietnam’s Deputy Prime Minister encourages businesses from both countries to foster their investment partnership. Vietnam has come up with a new decree to deal with transfer pricing by multinational corporations.

MNCs in the News-2017-02-24

Capital outflow limits and consumer sector investment liberalization measures affect both the volume and sectoral distribution of foreign direct investment (FDI) flows into China. Chinese restrictions on capital outflows are affecting how sellers perceive Chinese investors. Members of the US Congress are looking to empower the Committee on Foreign Investment in the US to scrutinize Chinese investors more rigorously. The European Commission launches an investigation of planned Chinese high-speed railway project connecting Hungary and Serbia. Uncertainties surrounding Trump Administration policies are making Japanese firms, with the exception of auto firms, cautious about investing in the US. Suzuki Motor Corporation obtains incentives that will cause it to expand its investment in Pakistan. Lotte is explicitly warned by China not to meet the South Korean government’s demand for land for its THAAD system. South Korea’s SKC Ltd. and Japan’s Mitsui Chemicals- Mitsui Chemicals & SKC Polyurethanes Inc. (MCNS) will set up a facility in India to produce polyurethanes. Freeport-McMoRan threatens to sue the Indonesian government if they do not resolve their dispute over Freeport’s obligations. Indonesia solicits Saudi investment, especially in non-oil and non-gas sectors.

MNCs in the News-2017-02-17

American business community becomes more favorable towards “reciprocity” policy towards China. Hejun Vanguard Group files complaint against sale of McDonald’s China and Hong Kong assets. Chinese firms’ pursuit of investment in critical sectors leads Germany, France, and Italy to ask European Union (EU) to give it more powers to investigate and block investments. The United States (US) Federal Trade Commission asks Syngenta for more information regarding its proposed acquisition by China’s ChemChina. In the face of potential restrictions on Chinese firm investments in non-core businesses, Dalian Wanda eyes European bank deals. Japanese companies face investigation by South Korea’s transport ministry which has begun to investigate more firms in the wake of the Volkswagen emission manipulation scandal. Toshiba will remove itself from work on the UK’s new Moorside nuclear plant. South Korea’s Korea Electric Power Corp. (KEPCO) has started its first wind power plant in Jordan. Korean outward foreign direct investment (FDI) grows significantly in 2016 with a large increase in money flowing to the US. Indonesian loosening of ban on raw mineral ore exports has many implications. Indonesian regional elections have big implications for Indonesia’s inward FDI (FDI)

Pages