CRRC

Chinese President Xi Jining courts foreign direct investment (FDI) in encouraging letter to the Global CEO Council. China plans to impose sanctions on United States (US) company Lockheed Martin because of the latter’s weapons sales to Taiwan. China’s new, strict cybersecurity laws and regulations have driven Morgan Stanley, a US investment banking firm, to block its interns in China from remotely accessing its virtual network. The recent border clash with China has increased the pressure on New Delhi to reduce the country’s dependence on Chinese solar goods. Various special interest groups have called for the US to sanction China’s CRRC after the US Pentagon labeled it as backed by the Chinese military, saying it represents a security threat. Despite calls for a boycott in the wake of India’s border clash with China, many are skeptical Chinese smartphones can be displaced from the India market. Japanese and British trade negotiators agree they will not require encryption keys or the localization of data. Japan’s Mizuho Financial Group faces growing shareholder pressure to stop financing coal projects. Japan helps Japanese companies move to Vietnam and also helps them shift production lines to Japan as well as various Southeast Asian countries. Myanmar gives three Japanese firms permission to build a mega-liquified natural gas power plant. Korea to spend billions to promote an innovation-based economy. European Union to restart review of the merger of Daewoo Shipbuilding & Marine Engineering and Hyundai Heavy Industries Holdings. Incheon Port Authority joins the United Nations Global Compact. The backlash against Huawei creates some openings for Samsung, though it is unclear if the Korean firm can exploit them.

Chinese Premier Li Keqiang emphasizes China’s willingness to work harder to create a favorable environment for foreign investors. China’s Ministry of Industry and Information Technology stresses that the country’s planned rules on Internet domain names will not affect companies’ “normal operations.” China will set up its first overseas permanent military base in Djibouti. China’s Railway Rolling Stock Corp. aims to win large amounts of business in the developed world. In the face of US Senatorial concerns, Syngenta AG insists a China National Chemical Corp. takeover would not raise security issues. Japan may finance a multi-billion dollar deep-sea port project in Patimban, Indonesia. JR Tokai and its American partner Texas Central Partners (TCP) are going to ask the US Federal Railroad Administration to set new rules allowing an ultrahigh-speed to be built to Japanese bullet train specifications. Mercedes-Benz Korea not rolling along as far as the Korean government is concerned. The Korea Trade-Investment Promotion probes if Korean companies should relocate from the shuttered Kaesong Industrial Complex to Vietnam. Korean businesses and association, in collaboration with the government, will establish a public-private consultative council to boost overseas Korean construction business. Thai Democrats challenge financing model for Bangkok to Nakhon Ratchasima high-speed train line. Vietnamese inward foreign direct investment for the first quarter of 2016 surges over the comparable period a year earlier.

Chinese government agencies stress to foreign businesses that they will do more to create a supportive investment environment. China investigates Schindler for possible bribery. Non-governmental organization calls attention to alleged mistreatment of workers at Apple supplier. China’s Ministry of Commerce fines Bombardier and CSR Nanjing Puzhen, for creating a joint venture prior to obtaining necessary approvals. MOFCOM hits Microsoft and its Xbox game console partner Shanghai Oriental Pearl Media for minor violation of antitrust rules. Private and high-tech Chinese firms achieve a newfound high profile in the business delegation accompanying Chinese President Xi Jinping on his state visit to the US. Unisplendor takes 15 percent stake in Western Digital. Indonesia leaning towards China for Jakarta-Bandung medium-speed rail, but keeps the door open for Japan. Foreign investment in Indonesia’s commodity sectors like mining stagnates. At the 13th World Chinese Entrepreneurs Convention, Indonesia calls for Chinese investment in value added manufacturing, infrastructure, and downstream activities. The European Association for Business and Commerce says European firms still see Thailand remains an attractive destination for investment. Singapore’s state-linked infrastructure firm Sembcorp will join with Bangladesh to build a power plant. Vietnamese industrial parks prove successful in drawing in foreign investment. Vietnam becomes a leading investor in Cambodia.