China

MNCs in the News-2015-05-22

China sets up China Investment Corporation (CIC) subsidiary to support outward investment and the export of advanced industrial capacity. Chinese government will support expansion of e-commerce globally and sector’s growth within China. China’s investment in Brazil to surge in both form and amount. US Department of Energy (DOE) reported discourages Chinese investment in US LNG export projects. China National Petroleum Corporation affiliate concludes oil production expansion deal in Abu Dhabi. Indian Prime Minister Modi touts his “Made in India” program during a visit to Korea. Thai Deputy Prime Minister urges Japanese leader Abe Shinzo to encourage more Japanese investment in Thailand’s growing industrial sector. Indonesia’s Investment Coordinating Board fields complaints from Chinese investors during road show in Beijing and succeeds in concluding billions in investment commitments. Indonesian high-level delegation visit to Japan sparks new Japanese corporate investment and partnerships on coal gasification. Vietnam reports Japan is Vietnam’s second largest foreign investor and a major investor in processing and manufacturing.

Mr. Naoyuki Haraoka's picture

AIIB Infrastructure Financing and its Impact on Investment Flows to Developing Countries

The Asian Infrastructure Investment Bank (AIIB), a newly created Chinese-led regional development bank, is now attracting global attention from governments, businesses, and analysts and seems to be at the center of the debate on global governance; that is, whether it should be US- or China-led in the future. The US and Japan have opted not to join this bank since its governance and objectives remain unclear and, in particular, because it is uncertain how the AIIB will cooperate (or compete) with the existing international financial institutions such as the Asian Development Bank (ADB) and the World Bank.

MNCs in the News-2015-05-15

Inward foreign direct investment (FDI) into China continues to impress. China softens move to eliminate preferences given to foreign investors. Tim Cook launches new environmental initiative during visit to China. Cisco CEO John Chambers highlights how politics is affecting his firm’s business and the operations of other IT companies. LinkedIn CEO Jeff Weiner describes the censorship of the firm’s Chinese-language website as essential but “very painful.” China’s freeing of prices in the electricity sector have potential to open new investment and sales opportunities for foreign firms. China’s investment in Africa increases, drawing praise from Kenyan local leaders. Political and economic factors spur increased Chinese investment in Israel. China’s investment lenses focus on Latin America’s “liberal” economies. Korea’s POSCO Energy negotiating joint investment fund with Korea’s National Pension Service that would support overseas power plant investments. Korea’s Daewoo International working with various Saudi government partners on building a car manufacturing plant in Saudi Arabia. Indonesian Investment Coordinating Board promises to smooth South Korean investment in Indonesia.

MNCs in the News-2015-05-08

China’s State Administration for Industry and Commerce (SAIC) probes…and not…Siemens China healthcare unit over possible bribery. Trademark infringement case throws American shoe company New Balance off balance. Various factors are greasing the way for increased Chinese investment in Russian energy and other sectors. U.S.-China Economic Security Commission publishes report charging Chinese companies with using Chinese law to escape “the jurisdiction of U.S. courts and regulatory agencies.” China’s State Council champions overseas investment as a way to promote exports along the Silk Economic Belt and Maritime Silk Road. Huawei bolsters its R&D activities and contributions in Brazil. US National Highway Transportation Safety Administration puts brakes on individual US citizens’ request it conduct an investigation of Toyota (Japan) 2006-2010 Corolla model cars. Provisions of Korea-Vietnam Free Trade Agreement expected to contribute to increase Korea investment in Vietnam.

MNCs in the News-2015-05-01

China slaps Beijing Simplot Food Processing Co. Ltd. with record fine for water pollution. Qualcomm finds new ways to bolster its position in China. Chinese companies expand the range of investment projects they consider in Brazil despite the latter’s political and economic challenges. Chinese energy companies face multiple political complexities when they invest in Canadian oil sands assets. Chinese companies engage in capacity building due to local supplier problems and negative impact on government relations. Tokyo Electron-Applied Materials Merger fails. Korean firms face troubles relating to China’s new stance towards Variable Interest Entities. Korea’s Foodpolis draws Chinese food firm investments for political and economic reasons. Indonesian moves to leverage its market raise foreign government concerns in regards to Indonesia’s World Trade Organization compliance. Indonesia’s investment board pursues diverse measures to attract “green investment.” Realized foreign direct investment in Vietnam continues to grow.

MNCs in the News-2015-04-24

China’s Finance Minister Lou Jiwei raises concern about US Bilateral Investment Treaty proposals. Wall Street Journal analysis reveals that many Variable Interest Entities may be at risk depending upon how Chinese treats such structures. IBM cooperation with Chinese firm and China raises concerns about the business and political implications. Huawei CEO Eric Xu raises concerns about the potential fallout of China’s new stance toward foreign information technology. The American Chamber of Commerce’s White Paper calls for numerous improvements in the general and sectoral policy environment facing foreign businesses in China. China’s Finance Minister expresses concerns about US Bilateral Investment Treaty demands. China moves to make its negative list more positive in four key free trade zones (FTZs). Jiangsu Province’s Provincial Price Bureau makes Daimler Mercedes-Benz pay a price for price fixing. Visa and MasterCard appear ready to cash in on China’s bank-card clearing market after State Council opens the market in response to a World Trade Organization (WTO) ruling. Korea moves to enrich up its Food cluster Foodpolis. Korean president Park Geun-hye visit to Latin America results in boost to Korean investment and trade. Indonesia will court Chinese investors with special “information desk” in Beijing.

MNCs in the News-2015-04-17

China will delay rules on banking IT to solicit feedback. China grapples with rising foreign business concern about data storage and access regulations. Foreign investment in China continues to show despite evidence of a slowdown in other areas. China’s National Development and Reform Commission stresses that China will be moving to a “Negative List” management system for inward foreign direct investment (FDI). Shanghai vows to protect Disney Resort’s intellectual property (IP). Qualcomm moves to reconnect with China after its $1 billion antitrust fine. China Metallurgical Group (MCC) struggles to mine the riches of its Afghanistan copper mine. Indonesian government “Made in Indonesia” plan drives Xiaomi to explore component assembly in Indonesia. Korea seeks to fatten up foreign investment its food hub, Foodpolis, with various incentives and high-quality assets.

MNCs in the News-2015-04-03

China puts the brakes on foreign automobile joint venture (JV) ownership shares. The implementation of some of China’s bank technology security rules may be delayed. US Treasury Secretary Jack Lew makes China’s counterterrorism law and banking technology rules a centerpiece of his visit to China. China State Council’s recently mandated changes to local government foreign investment attraction incentives will adversely impact Korean investment. Indonesian President welcomes Chinese investment to Indonesia and calls for greater cooperation. Indonesia’s investment attraction agency will partner with Indonesia’s spy agency to generate better investment information.

MNCs in the News-2015-03-27

China remains an attractive FDI destination, but observers say policy predictability and transparency are critical to attracting greater amounts. China may give foreign companies greater options in the securities sector. China faces questioning in the World Trade Organization (WTO) over its banking sector information technology (IT) restrictions. China works to bud into a global seed/agro-business giant. UK Banbury cybersecurity center gives Huawei clean bill of (security) health. Japanese corporate passivity in chasing Australian submarine tender opportunity is offset by Japanese official enthusiasm. Indonesia compliments Japanese auto firms on their investment expansion plans. Korean Fair Trade Commission (KFTC) moves to control Bayer’s oral conceptive business in Korea. Korean civil group accuses McDonald’s of labor violations. North American Free Trade Agreement (NAFTA) adds to Hyundai-Kia’s incentives to enlarge production in Mexico. Surging auto imports into Taiwan due to trade agreement led Volkswagen to shy away from investing in the island.

Dr. Amitendu Palit's picture

China-India Sister Cities Synergies and Implications for Business

Indian Prime Minister Narendra Modi’s first official visit to China in May 2015 is expected to lay the foundation for expanding the two Asian giants’ budding model of cross-border business and people-to-people contact: the sister-city arrangement. The future growth of such arrangements already is manifest in a slew of “sister city” arrangements planned between Chinese and Indian cities. The foundations of such interactions go back to 2013 when decisions were made to connect Delhi and Beijing, Bengaluru and Chengdu, and Kolkata and Kunming as sister cities.

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