China-Pakistan Economic Corridor

MNCs in the News-2018-07-06

There is some evidence China has started sanctioning American firms in China as a way to retaliate against American tariffs against Chinese goods. Foxxconn breaks ground on potential multi-billion dollar display screen plant in Wisconsin that allow it to profit from incentives and satiate Donald Trump’s America First campaign. United States (US) Department of Commerce allows ZTE limited duration, partial reprieve on seven-year comprehensive supply purchase ban. Pakistan seeks new funding from China, warning that failure might force it to go to the International Monetary Fund (IMF) which might result in the end of some of China’s Belt and Road Initiative (BRI) projects. Value of new Japanese FDI in US increases by 70 percent as President Trump pushes to expand employment. Japan and Kazakhstan to implement seven joint projects worth approximately USD $2 billion in areas like nuclear energy, transport and water supply. South Korea working with the US and the United Arab Emirates to win $19 billion power project in Saudi Arabia. Samsung urges Chinese officials to cancel discriminatory policies against foreign businesses. Malaysia and China are discussing a future visit to Beijing by Malaysian Prime Minister Mahathir in the wake of Kuala Lumpur’s suspension of Chinese projects valued over $20 billion. Malaysian senior trade official says country is open to more value-added investments from China.

MNCs in the News-2018-05-25

China’s State Council moves to spread best practices from China’s Free Trade Zones (FTZs) elsewhere in China. Muji hung out again for its improper treatment of the Taiwan issue. In Beijing, German Chancellor Angela Merkel warns of further potential restrictions on Chinese investment in the absence of reciprocity. Fears of having to disclose details of loans for China-Pakistan Economic Corridor (CPEC) spur Chinese financial institutions to continue to bank on Pakistan. Motivated by forthcoming regulatory changes, Mitsui Sumitomo Insurance Co. to buy 37.5 percent stake in state-backed Chinese life insurer. Nissan and Renault reviewing tie-up driven by French Government. Trump’s cancellation of US-North Korea summit dashes hopes of lifting international sanctions against North Korea and jumpstarting inter-Korean projects. South Korean electric battery firms charged up as China Association of Automobile Manufacturers’ whitelist highlights capabilities of Korean batteries. Chinese investors pledge to continue investing in Malaysia given new government offers conducive business environment and political stability. Foreign investors increasingly concerned about Malaysia’s fiscal health as national debt is far higher than previously revealed.

MNCs in the News-2018-04-27

Foreign car makers hope China will speed up the auto reform parts that they desire. Puma hopping to consider other production venues if United States (US) imposes tariffs on shoes and apparel made in China. India does not offer support for China’s Belt and Road Initiative (BRI) at recent Shanghai Cooperation Organization (SCO) meeting. Toyota to sell Chinese partner’s electric vehicle in China to pave way for introducing own models next year. Itochu pulling out of Turkish nuclear power plant project due to surge in safety-related costs. General Motors reaches last minute deal with labor union and South Korean government to save Korean operations. State-owned Korea National Oil Corporation looking to sell Canadian Harvest oil field to repay debts incurred by its Canadian subsidiary. Opponent of incumbent Malaysian Prime Minister vows to reconsider Chinese contracts if elected. KWAP may consider stake in IAG if Prudential cannot met Malaysian central bank mandate that foreign insurers reduce ownership stakes to 70 percent.

MNCs in the News-2018-03-16

China's Ministry of Commerce (MOFCOM) reports small growth in inward foreign direct investment (FDI), albeit with significant growth in high-tech inward FDI (IFDI). United States (US) President Donald Trump likely to impose USD $60 billion of tariffs on Chinese goods to punish Beijing for forcing American companies to transfer technology. China's financing for Belt and Road Initiative (BRI) energy projects slows significantly in 2017. Chinese report that BRI projects are delivering living standard and work improvements to locals. Panasonic starts mass production of hybrid car batteries in China as Beijing's push for electric vehicles is expected to boost demand. JFTC raids Amazon's Japanese headquarters over suspicions that online retailing giant violated anti-trust regulations. Two Korean builders win order for a USD $740 million smart hospital project in Singapore. Kumho workers stage strike in protest of foreign ownership as Qingdao Doublestar acquires struggling South Korean tire company. Jokowi states that survey reveals that Indonesia ranks second when it comes to the world's attractive countries for investors. China has stated its intent to help fund and build what could become Indonesia's longest bridge. Honeywell repeats commitment to bring investment to and cooperate with Thailand given its plans fit the government's Thailand 4.0 vision. Mercedes-Benz and Thai JV partner to invest $123 million to build EV batteries in Thailand. Vietnamese authorities to review large foreign investment projects in the wake of withdrawal of USD $3.2 billion refinery and petrochemical project. Binh Duong province (Vietnam) grants 15 investment certificates for foreign firms investing in the region.

MNCs in the News-2016-01-01

China’s Central Economic Work Conference promises to “‘give equal treatment to domestic and foreign companies.’” China’s National People’s Congress approves counter terrorism law that worries foreign businesses and governments. China’s State Council issues guideline designed to enhance IPR protection. China’s National Development and Reform Commission (NDRC) issues a draft of its first “Anti-Monopoly Guidelines on Abuse of Intellectual Property Rights” for public comment. China’s NDRC fines eight international sea freight shipping companies for price fixing. China’s People’s Bank of China suspends three foreign banks from certain kinds of foreign currency activities. Analysts expect Chinese outward investments to reach new heights in 2016. China’s nuclear power firms hope Hinkley Point project will be a stepping stone to new deals abroad. China and Pakistan finalize financing agreement for massive Thar Coalfield development project. Iraqi Prime Minister courts Chinese investment and railway cooperation during his first visit to China. Japan competes vigorously against China in battle to sell high-speed rail overseas. Inward FDI into Korea hits new high in 2015. At the end of December, Korea announced it would impose a Google tax on foreign companies. Hyundai Development Company wins $85.4 million bridge and road construction contract in Vietnam. Samsung Engineering lands another major engineering contract from Mexico’s PEMEX. The Association of Southeast Asian Nations Economic Community is expected to boost franchise businesses in Indonesia. Indonesia is hopeful that a Comprehensive Economic Partnership Agreement (CEPA) with the European Union (EU) will boost EU IFDI. Indonesian will increase incentives to boost investment in oil refineries. Thailand expects IFDI to meet its targets in 2016. China and Thailand hold ceremony to launch joint rail project, though disagreements exist which may delay the project’s start date. Malaysia touts the benefits of its Principal Hub scheme. Chinese group negotiating with Malaysian firms in order to position itself for a bid on Malaysia-Singapore high-speed rail. Experts feel recent free trade agreements will boost investment in Vietnam. Vietnam expects US FDI flows into Vietnam to increase significantly, though obstacles remain.