Donald Trump

MNCs in the News-2018-11-30

China moving to improve the business environment for foreign companies, especially in Free Trade Zones (FTZs). China’s National Development and Reform Commission (NDRC) announces that it will permit foreign banks in China to apply for approval for a quota increase in their medium to long-term foreign debt for 2019. Per Donald Trump, the United States may take a bite out of Apple products coming from China which previously have escaped a special 10 percent tariffs on Chinese goods. China’ Huawei finds Kiwis not so soft after New Zealand’s intelligence agency blocks it supplying 5G mobile network equipment to the major domestic telecom provider. Maldives’ new finance minister criticizes true price of Chinese projects, which has led to the Maldives returning to an “India First” policy. Japan’s Mitsubishi Heavy Industries ordered by South Korea’s Supreme Court to pay USD $365,500 in damages to two groups of South Koreans for forced wartime labor. In post-Carlos Ghosn arrest meeting, France suggests to Japanese official “the head of the Renault-Nissan alliance should be from the French automaker.” European firms with business in South Korea push Seoul to upgrade the country’s business regulations to reach international standards. At the 6th Association of Southeast Asian Nations (ASEAN) Connectivity Forum, South Korea’s secretary-general of the ASEAN-Korea Centre states Korea is looking to improve relations with ASEAN countries especially in infrastructure area.

MNCs in the News-2018-09-21

China takes a softer stance on dominating the Artificial Intelligence (AI) sector at the World AI Conference in Shanghai. Summer Davos observers and participants stress the progress of the [China] Greater Bay Area in attracting foreign direct investment (FDI). Alibaba’s Jack Ma retreats from promise to create 1 million jobs in United States (US). Germany looks to pursue more measures, including a billion euro investment fund, to control Chinese FDI flows into the country. Japanese chemical firms boost FDI in Southeast Asia to ramp up production to fill the space flowing from reduced production of Chinese firms that cannot meet China’s environmental requirements. Building upon the foundation created by Japanese and Indian leaders, Japanese companies and investors are pouring money into India to support IT startups. South and North Korea agreed to take steps to reconnect infrastructure links and restart discontinued inter-Korean projects. South Korea’s Hyundai Engineering signed Memoranda of Understanding with Indonesian officials regarding the expansion of its industrial facilities and the construction of a hydroelectric power plant there.

MNCs in the News-2018-09-14

Reacting to Apple’s statement that new tariffs on Chinese goods would affect many of its products, United States (US) President called on it to manufacture more goods in the US. 16 members of US House of Representatives send letter to Google to inquire about its plans to comply with China’s search and surveillance policies. To improve its market prospects, Japan’s Toyota will share and license hybrid technology with China’s Geely. Japan’s Mitsubishi and a subsidiary of Singapore’s state-backed investment company Temasek have formed a joint venture for massive urban development projects. In Seoul, Indonesian President Joko Widodo calls for Korean companies to partner with Indonesia in the area of advanced technology. Korea’s state-owned Korea. Korea’s state-run company Korea Gas Corp. transforms into global player in energy exploration, development, and infrastructure.

MNCs in the News-2018-08-10

Shenmei Energy effort to invest in United States (US) solar power plants blacks out over opposition by Committee on Foreign Investment in the US (CFIUS). Expanding Chinese investment in Bangladesh generates increasing anxieties and opposition in India. Japanese minister says Donald Trump administration’s tariff plans could stall Japanese investment in State of Indiana. MUFG Bank doubles stake in Indonesia’s Bank Danamon after having gained approval from Indonesian financial authorities. Incheon Free Economic Zone facing biggest crisis since establishment in 2003 as it continues to fail to attract FDI. After various investment offers including from Korea’s Lotte Chemical, Pakistan Chemical Manufacturers Association urges government to include chemical industry in first 100 days plan.

Dr. Hwy-Chang Moon's picture

The Global Trade War and Korea’s FDI Strategy

Dr. Hwy-Chang Moon
Posted: Aug 14, 2018

Concerns about the possible negative impact on Korea’s economy from the global trade war, sparked by the escalation of American trade protectionism, are serious and real. However, aside from what news reports discuss as a potential threat to world trade, the most critical area that deserves our attention is foreign direct investment (FDI).

MNCs in the News-2018-06-29

China’s National Development and Reform Commission (NDRC) unveils new nationwide negative list which opens about 17 more sectors and reduces various restrictions. China’s Ministry of Commerce (MOFCOM) and NDRC released a revamped negative list for foreign direct investment (FDI) in China’s free trade zones (FTZs) that has some better features than nationwide negative list. United States apparently to go with enhanced Committee on Foreign Investment in the United States (CFIUS) review process rather than establish mechanisms that specifically focused on restraining Chinese FDI. Nissan picks Thailand as first export market for new hybrid cars which may lead to local production if results and investment incentives are attractive. Sumitomo Mitsui Banking Corporation signs memorandum with Thailand’s governmental agency that the latter hopes will boost FDI. Samsung’s managing leaders recently convened to discuss a growing “China problem” as company confronts various political and regulatory problems. Taiwan’s GlobalWafers intends to follow through on USD $450 million Korean production facility amid increased Sino-US trade tensions. Malaysian government optimistic that investors’ confidence will be restored partly due to Prime Minister Mahathir’ effort to court FDI. Survey reveals Japanese companies interested in setting up manufacturing bases in Malaysia and are looking to invest in new sectors.

Mr. Naoyuki Haraoka's picture

Pondering National Security Concerns as a Basis for Trade and Investment Barriers

Mr. Naoyuki Haraoka
Posted: Jun 20, 2018

In March, United States (US) President Donald Trump decided to raise tariffs on steel by 25 percent and on aluminum by 10 percent for national security reasons. This raised concerns about possible retaliation by US trading partners that might lead to a damaging cycle of trade actions that shrank world trade and spurred a global depression. US national security economic-related worries pertain not only to trade but also to foreign direct investment (FDI), especially high-tech FDI, because an increasing number of civilian technologies can be adapted for military use.

MNCs in the News-2018-06-15

Investigation reveals Foxconn factory in China supplying Amazon products has serious problems regarding labor conditions. Chinese outward foreign direct investment (FDI) for first five month of 2018 shows impressive growth over 2017. China’s SF Motors drives ahead in effort to build electric vehicle manufacturing plant in Indiana (United States). Fears about potential Chinese dominance lead Vietnam to protest their government’s special economic zones plan. Japanese firms making own deals with American states that “go their own way” in pursuing investment opportunities. Mexico’s Economy Minister visiting Japan as country seeks to diversify investment and exports amid NAFTA talks impasse. Korean firm announces $1.7 billion investment plan for liquefied natural gas infrastructure in Philippines following President Duterte’s recent Seoul visit. South Korean construction companies forming task forces and planning investments in North Korea following US and North Korea summit. Mahathir set to “woo investors and offer business deals” during recent Japan visit. Malaysian state Perak to cooperate with EU to strengthen investment cooperation.

MNCs in the News-2018-06-01

China’s inward foreign direct investment (FDI) shows growth with especially impressive growth in high-tech areas like medical equipment manufacturing. Slew of political factors conspiring to dampen Chinese outward FDI (OFDI) to the United States (US). European parliament pushing increased reviews of FDI, partly due to surge of Chinese OFDI in Europe. China’s first report on central state-owned enterprises (SOEs) corporate social responsibility (CSR) argues their efforts go unnoticed and that they are doing a good job in environmental protection. Japanese contractors blindsided by Malaysia’s decision to scrap planned USD $14.8 billion high-speed rail link from Kuala Lumpur to Singapore. Government representatives of China, Japan and Thailand announce intentions to pursue business collaboration in Eastern Economic Corridor. General Motors’ $7 billion rescue plan for South Korean plants in jeopardy because of threat of Trump tariffs on foreign cars and car parts. Hanwha Q CELLS Korea signs memorandum of understanding with Whitfield County government to construct solar module production facility. Mahathir announces reconsideration of terms of USD $14 billion rail deal involving Chinese partners to prioritize reducing country’s ballooning national debt. Malaysia’s state-owned Petronas to become second-largest partner in Canadian liquefied natural gas export project by buying 25 percent stake.

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.

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