Fosun

Foreign direct investment (FDI) and domestic firms, lured by, respectively, China’s consumer stimulus and attractive valuations may mitigate the adverse effects of the US-China trade war on China. The trade war and new regulatory environment is driving Fosun to limit its investments in United States (US) biotech companies and to turn its attention to emerging markets. Namibia amenable to China National Uranium Corporation taking over the world’s longest-running open pit uranium mine provided it respects Namibian employment laws. Japan tightens restrictions on FDI in its high-tech sectors. Japan’s Inpex Corp. strikes USD $20 billion framework deal with Indonesia to develop an onshore liquefied natural gas facility. Large Korean companies remain on the sidelines in the wake of the US’s action to limit the supply of parts to China’s Huawei. To protect their interests in China, Korean firms are courting Chinese party leaders, forming joint ventures, and investing billions of dollars in Chinese high-tech sectors.

At 19th Party Congress, China promises greater market openness for foreign investors, but foreign businesses and governments cautious. Top China Banking Regulatory Commission (CBRC) official says foreign banks may get more latitude in entering and operating in China’s banking sector. Chinese outward foreign direct investment (FDI) plummeted 41.9 percent over the first nine months of 2016 year-over-year. In the first three quarters of 2016, Chinese outward merger and acquisitions activity drops significantly in both deal volume and size. Toyota and Mazda seek USD $1 billion incentive package from US states bidding for their joint car factory. SoftBank Group struggling to carry out US investments after several of its deals have been caught up in the CFIUS review process. US Department of Justice demands Kobe Steel release all information related to it falsified steel and metal data. SK-Sinopec JV to expand its Wuhan Petrochemical plant mirroring success of SK Innovation’s China Insider strategy. Korean battery manufacturers finding backdoors into the Chinese market despite Chinese government’s preferential treatment of domestic firms. Indonesia works to attract private investment despite bad atmosphere created by problems with Freeport-McMoran. Freeport-McMoRan facing labor union protests over anticipated layoffs. New US-Thai joint committee formed to increase bilateral investment following Thai Prime Minister’s recent US visit. Malaysia’s Ministry of International Trade and Industries leads trade mission to Europe to attract German investment. MITI reports a decline in investments this year. Vietnamese government begins implementing its divestment plan for Dung Quat Oil Refinery, attracts foreign investors. Foreign brewers eagerly awaiting Vietnamese government’s divestment plans for country’s largest domestic brewer Sabeco.

The China Banking Regulatory Commission moves to allow foreign banks to purchase Chinese lenders through a locally incorporated subsidiary. Analysis claims China is cracking down on acquisitive private actors, so-called “Grey Rhinos,” because of risks they pose to the Chinese economy. The United Kingdom is moving to tighten its foreign investment regime partly to deal with investors like China which have been investing in sensitive areas. Toyota to produce electric vehicles in Thailand to take advantage of various economic incentives. Consortium led by government sponsored Innovation Network Corp. of Japan announces final bid for Toshiba's flash memory division. South Korea following up on USD $10 billion infrastructure development deal with India. Recent data reveals Korean companies increased spending on US lobbying after inauguration of US President Donald Trump. Indonesian Investment Coordinating Board says Singapore remains largest investor in Indonesia, with Chinese investment increasing in both quantity and quality. Thailand’s Board of Investment confident overall applications for investment privileges will reach target of USD $18 billion in 2017. Malaysia’s Second Finance Minister states country has some well-run government-linked companies and rebuts concerns about Chinese investment. Two Japanese and seven Chinese state-owned enterprises bid for Bandar Malaysia project. Vietnam Steel Association proposes limiting foreign investment to certain kinds of steel projects.

China’s State Council will work to expand service and merchandise trade by giving foreign businesses new opportunities. Chinese Ministry of Commerce think tank researcher expects Chinese outbound M&A to hit new record in 2016. Regulatory issues in China and abroad appear to impact some Chinese outward foreign direct investment (FDI). Industrial and Commercial Bank of China Europe) and the Chinese embassy in Spain scramble to react to Spanish police raid in connection with suspected money laundering by ICBC Madrid. COSCO formally declared the preferred bidder for the privatization of of Greece’s Piraeus port. Visit of South Korea’s Trade Minister to eBay Korea’s Incheon facility leads the latter to promise to help small Korean merchants tap the online export market. Volkswagen Korea faces ongoing pressure from Korean regulators in connection with recall orders relating to its emissions-data cheating cars. South Korean outward FDI experiences strong growth in 2015. South Korea accuses North Korea of using Kaesong moneys for its military programs. Korean government agencies mobilize to encourage foreigners to participate in the development of Korean startups. Indonesia’s e-commerce sector lauds government’s plan to open the e-Commerce to FDI. Indonesian president tells businesspeople at US-ASEAN Business Council Conference that his country will undertake more FDI-related reforms. Thai officials express optimism about the Thai-Chinese negotiations about a medium-speed rail project. Vietnamese and American companies strike numerous deals on the sidelines of the US-ASEAN Summit. Vietnam’s southern Binh Dinh Province will take steps to attract more FDI.