China Ministry of Commerce

MNCs in the News-2017-06-23

China’s State Council announces that 27 restrictions relating to foreign direct investment (FDI) in its free-trade zones have been eliminated. China’s non-financial outward FDI (OFDI) plunges by almost 53 percent for the first five months of the year year-over-year (YOY). Chinese legal experts suggest new international legal mechanisms may be needed to deal with disputes involving Chinese OFDI. China’s Huadian, a state-owned enterprises (SOE), and Russia’s TGC-2 announce nearly $600 million joint venture power project has come online. After years of decline because of political tensions Japanese companies now more willing to invest in China. Survey shows Japanese firms willing to increase investment in Thailand especially in Eastern Economic Corridor. Samsung Electronics Co. about to finalize talks on expanding its US production facilities, a move motivated by Donald Trump’s election. Jakarta promises more easing of rules to increase foreign investment. PGN, Indonesia’s National Gas company, plans to make Batam Indonesia a center of natural gas supplies and a “paradise” for energy investors. Malaysia Digital Economy Corp welcomes Japanese ICT firms to use Malaysia as a stepping-stone for entering the Southeast Asian market. Malaysia’s Construction Industry Development Board to participate in bidding process for Indian railway stations’ makeover.

MNCs in the News-2017-06-09

At the 5th Global CEO Roundtable Summit, Chinese Premier Li Keqiang states that his government will move in several areas to improve the environment for foreign businesses. China’s Ministry of Commerce (MOFCOM) dismisses European Union (EU) Chamber of Commerce in China criticisms of China’s investment environment while opining China still welcomes European investment. ZTE Nigeria denies it is abusing expatriate quota limits and touts its employment practices in the country. Nomura Holding Inc. acquires Venezuelan state oil bonds for USD $100 million provoking strong denunciations by the political opposition. Western Digital abandons plans for a majority share in Toshiba chip division while trying to use the International Court of Arbitration to block Toshiba’s creation of a separate memory chip subsidiary. Hyundai Motors joins smart car partnership with Baidu to foster better Korean-Sino relations. Hyundai Samho Heavy Industries establishes joint venture with Zvezda Shipbuilding to service Russian state-owned enterprise ship needs. Chinese Ambassador to Indonesia seeks support from Indonesian Vice President to implement Jakarta-Bandung bullet train project. United States President invites Thai Prime Minister to visit White House in July to discuss investment and other issues. Sale of Petronas’ 49% share in offshore gas block advances to second round despite political opposition. International Trade and Industry Minister Mustapa urges Malaysians to adopt rational attitude towards its local equity ownership policy. IE Singapore signs memorandum of understanding with Myanmar Investment Commission. Secretary of Ho Chi Minh City Municipal Party Committee welcomes more US investment. Vietnamese Prime Minister promises to improve business environment of his country to attract more Japanese investment.

MNCs in the News-2017-05-26

China’s Ministry of Commerce (MOFCOM) reports the country will significantly reduce its negative list for inward foreign direct investment (FDI). China counters German criticisms of its market access by saying it will open its auto sector and that Germany had profited substantially from China’s past opening. China’s new cybersecurity law is sparking foreign companies to move to comply and deterring foreign company hardware/software sales. From January through April, China’s non-financial outward FDI drops significantly versus the same period last year. Japanese firms cooperate with US counterparts to develop missile defense radar. Japanese firms not enthused about China’s OBOR and see better business opportunities flowing from other initiatives. Japanese multinational firms that have invested heavily in Africa are worried about the continent’s prolonged economic slump. The leader of Korean SK Group leave for Beijing to meet with Chinese officials to normalize relations after his country’s installation of THAAD. K-Sure signs USD $3 billion deal to finance clean fuels project in Kuwait. Geely buys 49.9 percent of troubled Malaysian carmaker Proton. Malaysian Prime Minister says government programs make Malaysia’s FDI inflows for this year surpass last year’s. Vietnam plans to set up three special economic zones to boost foreign investment. Vietnam’s Deputy Prime Minister reiterates country’s dedication to welcoming foreign investors.

MNCs in the News-2017-04-21

Big foreign companies increasingly willing to voice complaints about the situation in China. China’s limits on capital outflows affect the willingness of some to invest in China. Beijing is considering “braking” the requirement capping foreign companies ownership in the auto sector to no more than 50 percent with some predicting a crash of domestic firms if this happens. China’s nonfinancial outward foreign direct investment (OFDI) experienced major drops in March over the prior year and over the first quarter of 2017 year-over-year (YOY). China’s One Belt, one Road (OBOR) initiative leads to the signing of a major number of transportation related accords. Sharp considers joint bid with Hon Hai on Toshiba’s memory chip unit as it seeks to mitigate national security concerns. Kia plans USD $900 billion car manufacturing plant in India to surmount India’s steep import duties and China’s anti-Korean economic sanctions. Malaysian trade mission to South Korea brings home Korean investment worth around USD $550 million. Malaysia seeks to increase its cooperation with New Zealand in IT and tourism sectors. Vietnam develops public-private partnership framework allowing more foreign investment particularly from Japan in its infrastructure sector. Hoang Son Trading Investment JSC partners with Spanish-Japanese joint venture to build new solar plant in Vietnam.

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)

MNCs in the News-2017-02-10

China’s goal of shifting to a more consumption, service, and higher-valued added economy is reflected in subnational level data. China remains optimistic about Chinese outward foreign direct investment (FDI) in 2017, but plans to guide it to and sees it encountering many challenges. Syngenta believes the ChemChina-Syngenta acquisition will close in second quarter of 2017 despite remaining regulatory hurdles. China halts major Lotte construction projects in northeastern China in apparent punishment for South Korea’s embrace of THAAD. Prior to Japanese Prime Minister Abe Shinzo’s early February meeting with US President Donald Trump, Sharp Corp. announced it would build a liquid crystal display panel plant in the US. Softbank CEO Masayoshi Son touts his progress in fulfilling his job creation promise to U.S. President Donald Trump. Chinese forthcoming revised anti-monopoly guidelines worry South Korean firms which fear they might be used against it. In the face of political pressures, Samsung Electronics will build its first home appliance plant in the US despite fears about the price competitiveness of US production. Moody’s Investor Service upgrades its credit outlook for Indonesia with positive implications for Indonesia’s ability to attract FDI. Indonesian aviation regulatory burdens cause Tigerair to cease its flights to Bali island.

MNCs in the News-2017-01-20

China moves to lower restrictions on foreign investment in various financial sectors including banking, insurance, and credit ratings. China’s outward direct investment (ODI) hits new high in 2016 with a significant amount going into manufacturing and information technology. China’s State-owned Asset Supervision and Administration Commission says it will release a negative list for two categories of outward foreign investment by state-owned enterprises (SOEs). Toyota Motor and Nissan Motor. Corp. say they will continue to manufacture cars and auto parts in the United Kingdom despite Prime Minister Theresa May’s plans for full Brexit. It’s “light out” for multi-billion dollar Samsung Engineering power and desalination project in Saudi Arabia. Hyundai will invest USD $3.1 billion in the United States (US) over the next five years in response to US President Donald Trump’s threats to renegotiate the North American Free Trade Agreement (NAFTA). Indonesia Finance Minister cites the herd mentality as the basis for her fighting JP Morgan’s downgrade of her country’s investment rating. Malaysian Prime Minister Najib Razak accuses former Prime Minister Dr. Mahatir Mohamad of slander over criticism of Johor project. Vietnam expects Japan to become its top investor. Vietnam’s Party Secretary encourage Chinese firms to bring advanced technology to his country.

MNCs in the News-2017-01-13

China’s inward foreign direct investment (FDI) increases moderately over 2015, with a major proportion going into the service sector. Chinese outward FDI (OFDI) soared in 2016, hitting new records, with Europe, above all, Germany a key destination. Jack Ma meets with US President-elect Trump and touts Alibaba’s potential to create one million jobs. Takata pleads guilty to one criminal charge and will pay USD $1 billion in fines in conjunction with falsifying test data about its faulty airbags. Honda will invest USD $372 million in an existing facility in Ontario, Canada. Japanese energy producer JX Nippon Oil & Gas and NRG Energy Inc. complete the world’s biggest carbon capture system in Texas. Apparently prodded by Trump’s protectionist rhetoric, Samsung Electronics will build its first home appliance plant in the US. Indonesia modifies it mineral export ban policy because of its challenging economic growth situation. Indonesia and Japan will discuss business and investment cooperation during a visit by Japanese Prime Minister and during post-visit meetings between Indonesia’s President and a large delegation of Japanese CEOs

MNCs in the News-2016-12-09

China’s Ministry of Commerce (MOFCOM) and National Development and Reform Commission (NDRC) have reduced the number of sectors on its foreign investment catalog restricted and prohibited lists by more than 30 percent. China’s State Administration of Foreign Exchange (SAFE) has denied there are restrictions on foreign firms' crossborder profit transfers. The NDRC has imposed a more than $17 million fine on Medtronic for violating China’s anti-monopoly laws. China’s national cybersecurity standards body, The Technical Committee 260, ignores foreign company pleas about its technical standards for operating systems, microprocessors, and office software. China’s concerns about capital flight and money laundering led it to strengthen its review of overseas deals exceeding USD $10 billion and in an overseas entity unrelated to the investor’s core business. China launches $22 billion fund to support overseas investments by Chinese companies. Chinese investment in Europe soars over 2015 totals. Softbank owner Masayoshi Son promises Donald Trump he will make a massive investment in the US. South Korea’s largest steel pipe producer buys two oil country tubular goods (OCTG) related facilitates in the US to escape possible US trade barriers. Indonesia’s Ambassador to Singapore encourages greater investment from Singapore, Indonesia’s largest foreign investor. Chinese investment in Indonesia soars, helping with infrastructure development, but raising some concerns. Chinese delegation from Zhejiang province to travel to Indonesia to assess the political risk environment in the country. Foreign companies in Thailand ask Prime Minister to update its laws pertaining to foreign workers. Official Thai delegation to China hopes to attract more investment, reinforce the relationship, and increase cooperation on China’s One Belt, One Road initiative. Malaysian Prime Minister Najib Razak rejected the notion he was trading the country’s sovereignty for foreign investment. Vietnam’s FDI inflows reach record highs and Vietnam promises steps to attract more investment.

MNCs in the News-2016-11-24

China’s Ministry of Commerce notes that it will continue to welcome and support foreign direct investment (FDI) from the European Union (EU). Very senior Chinese Communist Party official meets with Microsoft CEO and calls for the company to share its technology with China. China’s State Administration for Industry and Commerce imposes almost a $100 million fine on Sweden’s Tetra Pak for abuse of its market position. Qualcomm’s joint venture with the Guizhou provincial government will start to produce China-customized server chips in 2018. I order to enter China, Facebook reportedly is working on a tool that would empower the Chinese government to censor content. The Committee on Foreign Investment in the United States (CFIUS) said it would recommend a Chinese investment consortium not be allowed to purchase Germany’s Aixtron. The U.S.-China Economic and Security Review Commission said Washington should take action to ban China’s state-owned firms from acquiring U.S. companies. Japan’s Itochu Corporation and Electric Power Development Co. Ltd. will provide full support for the construction of a coal-fired Batang power plant in Central Java. Japan and Argentina work to boost Japanese investment in Argentina. New China Ministry of Industry and Information battery production standard will severely limit Korean battery sales in China. China takes adverse actions against Korean financial companies to, it is believed, punish Korea for its acceptance of the THAAD system. Despite uncertainties flowing from the US presidential election result, the Indonesian Investment Coordinating Board still has faith in its investment realization targets. The Indonesia-Japanese investment relationship remains robust. Following on the heels of his efforts to court Chinese investors, Malaysia Prime Minister Najib Razak is lobbying Japanese investors to put money in higher-value added activities in his country. Vietnam welcomes foreign investors to participate in the restructuring of the country’s banking sector. Vietnam pushes for investment in the food processing sector.

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