Donald Trump

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-2018-04-06

Beijing’s market competition regime exerts increasing effect on global merger and acquisition (M&A) activity and foreign firm operations in China. The Committee on Foreign Investment in the United States (CFIUS) put severe constraints on Japan’s SoftBank as a condition of its acquisition of US investment group Fortress last year. Toshiba Corp. to miss March deadline to sell USD $19 billion flash memory division due to complications with China’s anti-trust regulators. Kumho Tire to finalize sale agreements with Qingdao Doublestar following its union’s vote on the sale. Lotte Group reaffirms its decision to exit its Chinese operations after China’s State Councillor pledged China would support smooth sales of Lotte Mart’s Chinese stores. Turkey’s Hitay Holdings repeats pledge to develop USD $1 billion geothermal power plant in Indonesia’s Aceh province. Indonesia’s investment board announces removal of foreign capital restrictions on investment in university and other educational ventures. Thai investors criticized for their impact on locals and the environment in Cambodia and Myanmar. Malaysia to evaluate market impact of Uber’s move to sell its Southeast Asian operations to Singapore’s Grab. Malaysia’s state-owned energy utility company Tenaga Nasional secures USD $168.77 million to refinance its 80 percent stake in two UK wind energy companies. Foreign investment in Vietnam increases due to country’s increasingly open investment environment.

MNCs in the News-2018-03-23

US companies dilute proposed legislation that might have dampened their exports to/sales in China of technology. 2018 China Enterprise Cross-Border M&A Special Report shows decline in both the number and volume of Chinese merger and acquisition (M&A) deals in 2017. China’s crackdown on CEFC Energy throws into uncertainty a proposed mega investment in Russia’s Rosneft. Japanese may loosen regulations on foreign direct investment (FDI) in Japanese broadcasters. Toshiba chip sale deal awaits regulatory approval from China. South Korea company wins multi-billion bridge building contract in Turkey. South Korea and Russian companies lay foundation for cooperation in building transportation and other infrastructure for Korean peninsula and elsewhere. Indonesia’s Environment and Forestry Ministry to sue American mining company Freeport McMoRan for massive environmental damages. Indonesian official embark on road show to bring more private FDI into the country’s underfunded infrastructure projects. Thai government alarms by announcing intention to change the country’s Foreign Business Act. Malaysia finalizes deal bringing USD $7 billion of Saudi FDI into the Pengerang Integrated Complex. UAE company will pour more than USD $1 billion to develop offshore Malaysian gas site. Vietnam’s State Audit Office slaps back taxes bill on just privatized former state-owned enterprises (SOE) Sabeco. Vietnam aims to divest major portion of PetroVietnam Gas to garner strategic investment and massive amounts of funds.

Dr. Jean-Marc F. Blanchard's picture

China’s Government Reform and Implications for Foreign Investors

Dr. Jean-Marc F. Blanchard
Posted: Mar 23, 2018

At present, the eyes of the foreign business community in China understandably are fixed on United States (US) President Donald Trump’s levying of tariffs on Chinese strategic goods, China’s retaliation, and the potential for the situation to escalate. While such matters warrant attention, the business community also should be alert to China’s planned government restructuring which will reduce the total number of ministries, eliminate some ministries like the General Administration of Quality Supervision, Inspection, and Quarantine, consolidate others such as the China Banking Regulatory Commission (CBRC) and China Insurance Regulatory Commission (CIRC), create new ministries like an international aid agency, and shift the oversight of some ministries.

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-2018-03-02

Apple stores key for accessing Chinese users iCloud data in China raising human rights and privacy concerns. Committee on Foreign Investment in the United States (CFIUS) opposition causes Xcerra to terminate sale to Chinese investment fund. Chinese automakers not braking on their overseas expansion despite legal and regulatory issues facing outward foreign direct investment (FDI). Shanghai government takes over CEFC China Energy. Toyota to build next generation of Auris model cars in England despite worries about effect of Brexit. Kubota Corp. to spend over USD $3.1 billion on three new US production plants in a bid to mitigate foreign exchange risks and jump market barriers. Mounting pressure in the US to impose trade restrictions on various Korean-made products cause Samsung Electronics to consider more US based production facilities. Kumho Tire under pressure to find new majority shareholder given opposition to Chinese investment in a firm that operates defense businesses. Foreign investors charged up about investment opportunities in Indonesian electric vehicle battery sector because of the country's backward energy infrastructure and battery technology. Indonesia's BIBU plans to work with foreign partners/investors to build a new airport in Bali subject to Ministry of Transportation approval. Russia proposes joint innovation fund with Thailand to increase investment in technology. Najib Razak announces Saudi Arabia's state-owned oil and gas conglomerate Aramco will invest USD $7 billion into Malaysia before March 31. Vietnam approves Vietcombank's sale of a 10 percent stake to foreign investors as Hanoi rolls back restrictions on foreign investment in the sector.

Dr. Jean-Marc F. Blanchard's picture

Pounding COFDI in the US in Search of a Better Playing Field in China

Dr. Jean-Marc F. Blanchard
Posted: Mar 01, 2018

Since 2014, Chinese outward foreign direct investment (COFDI) in the United States (US) has grown dramatically. Of course, there were failed deals, some because of the US Committee on Foreign Investment in the United States (CFIUS), which vets transactions involving foreign firms for potential adverse national security implications.

MNCs in the News-2018-02-23

China to use mechanism of internationalization including inward foreign direct investment (FDI) in mixed ownership reform to enhance ability of state-owned enterprises. For 2018, Guizhou aims for $150 billion in investment money from outside the province including small and medium-sized enterprises from foreign countries. Chinese outward FDI in January 2018 jumps over same period a year earlier. Chinese government constraints on outward FDI become even tighter. Japanese airbag manufacturer Takata receives US court approval for its bankruptcy exit plan. Japanese steelmaker JFE Holdings concerned Trump's protectionist rhetoric could impede own investment plans to build US based plant. Korea Expressway Corporation signs MoU for Indian highway construction following agreement between Korean and Indian government to support USD $10 billion in Indian infrastructure. GM proposes investing USD $2.8 billion in its Korean operations, but calls for government assistance to maintain its remaining plants. Russian diversified energy holding company Inter Rao seeking to develop Indonesia's Bandar Kayangan Global Hub. Finance Minister says Indonesia to revise tax incentives to attract more investment. Thailand's government approaches Japanese robotics maker and other engineering manufacturers to build facilities along its EEC. Manila Water Company acquires 18.72 percent stake in Thailand's Eastern Water to enter Thailand's EEC. Thailand's Superblock Pcl plans to invest USD $1.76 billion to build wind farms in Vietnam in sync with Hanoi's renewables policy.

MNCs in the News-2018-02-09

Following the Mercedes-Benz Dalai Lama ad incident, China's Ministry of Foreign Affairs asks foreign firms to follow "basic ground rules." China Banking Regulatory Commission promises steps to make it easier for foreign banks to do renminbi business in China. Google China works to win friends by searching for information about Chinese overseas investment opportunities and overseas brand successes. China's capital control have adversely impacted some Chinese investing in the technology sector in the United States. Nissan to invest USD $9.5 billion in China with JV partner Dongfeng Group as carmaker strives to exploit China's production quotas for EVs. MGM Resorts plans to set up integrated resort in Japan's Osaka Prefecture because it plans to establish tourism facilities. Hyundai finally on track to receive Chinese government subsidy for EVs after switching to Chinese battery manufacturers. Seoul Semiconductor files suit against Mouser Electronics for dispensing products that infringe upon patent held by it. Indonesia's investment board cites "frequent and abrupt changes in regulations" as major cause of foreign investor wariness when investing in Indonesia. UAE business delegation met with Indonesia's Industry Minister for preliminary talks for producing compressed natural gas in Indonesia. Thailand's parliament approves USD $45 billion EEC project to stimulate country's underdeveloped east. Nissan working with alliance partner Mitsubishi and Bangkok to produce electric cars and batteries in Thailand for export abroad. Malaysia expects more Chinese investment in real estate, manufacturing and logistics industries as Belt and Road Initiative funds find their way into the country. State run Saudi Aramco and Malaysia's state-owned Petronas are raising USD $8 billion to begin construction on planned Malaysia refinery and petrochemical complex. Edge Glass Joint Stock Company begins construction of USD $220 million Vietnam glass factory encouraged by favorable local government measures. US tax reforms causes Vietnam to worry about future foreign investment prospects.

MNCs in the News-2018-01-12

China moving to make Free Trade Zones (FTZs) freer. China punishes Marriott over survey that lists Hong Kong, Macao, and Tibet as independent countries. Apple’s iCloud darkens as it transfers the service to a Chinese company that will operate it and keep all data in China. French Finance Minister welcomes Chinese foreign direct investment (FDI) in France provided it is not “looting.” President Donald Trump’s pressure seems to have driven Toyota and Mazda to select Alabama for USD $1.6 billion production facility. NEC acquires Northgate Public Services for USD $640 million following the British government’s promotion of digitalization. South Korea’s state-operated Korean Development Bank sets price floor on sale of struggling construction firm Daewoo Engineering & Construction. Hyundai invests in Singapore’s Grab in effort to expand in Southeast Asia and reduce reliance on the tumultuous China market. Indonesia’s Ministry of Finance to reevaluate investment attraction programs after no companies applied in 2017. Jakarta and Freeport-McMoRan seek to resolve by June a host of operational issues that plague the future of Grasberg mine. Nissan shortlists Thailand as possible location for Asia-Pacific EV manufacturing facility due to Thai investment incentives. Thai Minister says Chinese investment into country’s rubber plantations must be carefully considered and not impact local farmers. Johor Sultan invests USD $100 million in Sri Lanka’s first pharmaceutical manufacturing sector. New policy decree by Hanoi allows foreign enterprises to provide logistics services in Vietnam. Several of Vietnam’s efforts to divest state-owned enterprises at the end of 2017 did not catch much investor attention.

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