China Ministry of Commerce

MNCs in the News-2017-08-18

China takes steps/promises measures to draw in more foreign direct investment (FDI). China’s State Council details a slew of initiatives to increase greater inward FDI (IFDI) as well as to foster specific types of IFDI. Donald Trump signs executive order authorizing US Trade Representative to decide whether or not to investigate China’s theft of American intellectual property. China’s Ministry of Commerce reports small drop in IFDI over the first seven months of 2017 year over year (YOY) while outward FDI drops dramatically over the first seven months of 2017 YOY. The Philippines is looking to Japan and China to finance investments in energy and power generation projects worth over USD $135 billion. Mitsubishi UFJ Financial Group Inc. to expand operations in Saudi Arabia to support Saudi initiatives to reduce reliance on oil. Kumho Tire Co. to be bought out by its Chinese competitor Qingdao Doublestar Co. for USD $857 million after South Korean state-owned development bank sells its stake to Doublestar. Hyundai to promote Indonesia as Southeast Asian production base because of, among other things, the ASEAN Trade in Goods Agreement will remove car import duties in 2018. Indonesia and Vietnam to boost investment activity following 7th Indonesia-Vietnam Joint Commission on Economic, Science, and Technical Cooperation. Facebook opens full office in Indonesia due to tightening regulations on foreign Internet firms. Recent report touts that Malaysia’s strategic location and competitive position make it attractive for foreign investment. US deepening investigation into money stolen from Malaysian state investment fund allegedly used to obtain around USD $1.7 billion in real estate, jewelry and art.

MNCs in the News-2017-07-14

Chinese inward foreign direct investment (FDI) in June shows slow growth year-over-year (YOY) while the first half of 2017 showed a very slight decline in inward FDI (IFDI) YOY. Twenty percent of American firms in Shanghai plan to redirect their investment elsewhere. China’s non-financial outward FDI (OFDI) over the first six months of 2017 YOY plummets due to capital controls, tight loan supervision, and overseas factors. Almost a dozen members of American Congress ask US Securities and Exchange Commission to block Chinese-led consortium from buying Chicago Stock Exchange. At a recent conference, Chinese officials tout dramatic future growth in Chinese OFDI and moneys supplied for One Belt, One Road projects. Japan External Trade Organization and India’s provincial governments increase investment cooperation for special industrial zones to meet expansion needs of Japanese firms. Toshiba still negotiating with bidders, as company strives to fulfill government demand to keep chip technology under domestic ownership. SK Group moving to aggressively increase relations with Chinese officials. China considers investment to connect Thailand's Eastern Economic Corridor with Kunming's special economic zone. Malaysian financier central figure in probes related to plundered Malaysian state development fund 1Malaysian Development Bhd. Vietnamese government gradually opens its transportation and logistics sector, providing investment opportunities for foreign firms.

MNCs in the News-2017-06-30

China’s Ministry of Commerce (MOFCOM) plans to create database with information on foreign investors. China’s MOFCOM and National Development and Reform Commission role out first nationwide negative list, which has 30 fewer restricted and prohibited sectors than the 2015 list. China’s Leading Group for Comprehensive Reform calls for more statistics on and the better monitoring of Chinese outward foreign direct investment (OFDI). Despite Brexit, many expect Chinese firms will remain interested in investing in the United Kingdom (UK). Takata files for bankruptcy protection in the US and Japan due to massive recall, with viable operations bought by Chinese-owned Key Safety Systems. Korea Economic Research Institute urges Korean government to exempt taxes on income earned by South Korean multinationals abroad to encourage capital repatriation. Samsung joins increasing list of international firms boosting employment in the US in line with US President Donald Trump’s push for more manufacturing jobs. Jakarta plans to revise its Negative Investment List to encourage more foreign investment. World Bank states that foreign investment in Indonesia is still too low and recommends various policy changes. Minister says Malaysia’s government constantly striving to attract foreign investment. Former Bank Negara Malaysia governor says Malaysians should view China’s increasing investment rationally to evaluate benefits to country.

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.

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