Foxconn

MNCs in the News-2018-07-06

There is some evidence China has started sanctioning American firms in China as a way to retaliate against American tariffs against Chinese goods. Foxxconn breaks ground on potential multi-billion dollar display screen plant in Wisconsin that allow it to profit from incentives and satiate Donald Trump’s America First campaign. United States (US) Department of Commerce allows ZTE limited duration, partial reprieve on seven-year comprehensive supply purchase ban. Pakistan seeks new funding from China, warning that failure might force it to go to the International Monetary Fund (IMF) which might result in the end of some of China’s Belt and Road Initiative (BRI) projects. Value of new Japanese FDI in US increases by 70 percent as President Trump pushes to expand employment. Japan and Kazakhstan to implement seven joint projects worth approximately USD $2 billion in areas like nuclear energy, transport and water supply. South Korea working with the US and the United Arab Emirates to win $19 billion power project in Saudi Arabia. Samsung urges Chinese officials to cancel discriminatory policies against foreign businesses. Malaysia and China are discussing a future visit to Beijing by Malaysian Prime Minister Mahathir in the wake of Kuala Lumpur’s suspension of Chinese projects valued over $20 billion. Malaysian senior trade official says country is open to more value-added investments from China.

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-2017-12-15

China Banking Regulatory Commission (CBRC) announces plan to ease requirements for foreign banks wanting to conduct yuan trading. Government restrictions put brakes on the progress of foreign autonomous vehicle development in China. Wisconsin to power it up to meet future Foxconn plant’s electricity needs. Economist Intelligence Unit finds that the United Kingdom’s attractiveness to Chinese investors dropped severely from 2015 to this year. Japan and the EU conclude talks on a free trade deal, however investment dispute settlement issues remain unresolved. Toshiba and Western Digital end legal battle over flash memory unit sale, though antitrust screening in big global markets could obstruct the unit’s sale. Samsung and LG expanding employment and investment in Vietnam in the wake of Hanoi’s efforts to attract foreign companies. Hyundai Motor Co. sets up JV in Indonesia in wake of South Korean President Moon’s New South Policy. Indonesia’s Gunung Steel Group and China’s Shenwu Technology Corp to build USD $3 billion steel plant in line with Jakarta’s goal to increase country’s steel production capacity. Singapore’s APRIL Group lodges case against Indonesian government through its Indonesian unit RAPP. Thai Beverage only foreign firm to bid for large share in Vietnam’s state-owned brewing company Sabeco. Jacobs Douwe Egberts to buyout Malaysia’s OldTown with deal conditional upon approval from Malaysian antitrust authorities. BRG Group and Sumitomo Corporation to finalize plans for USD $4 billion smart city in Hanoi as local government pledges to create favorable conditions for its execution.

MNCs in the News-2017-11-24

Skype loses Apple app store connection in China due to government regulation. Illegal overtime at Apple supplier Foxconn plant in Henan stopped. Chinese official reports Chinese firms employed more than 1.3 million people abroad in 2016. According to Chinese railway authorities, China has 20 overseas railway projects right now with investment around $15 billion. Bad press on Uber’s data theft cover-up may push SoftBank to renegotiate the terms of USD $10 billion investment deal due to impending legal action. Air bag maker Takata finalizes agreement to sell assets to Chinese owned Key Safety Systems to obtain cash needed to cover court imposed penalties. US trade commission’s proposed import tariffs on washing machines may lead Samsung and LG to reassess whether building new US factories would still be beneficial. South Korea’s SK Group sells used car affiliate to Australia’s Carsales Holdings in face of government barriers to further expansion. Indonesian government looking for more than USD $800 million in private foreign investment to develop tourism near Lake Toba. Real Estate Indonesia invites Japanese developers to engage in housing projects after Japan’s Prime Minister reaffirmed his country’s commitment to increasing investment in Indonesia. DHL to invest over USD $350 million to develop its IT services in Malaysia, contributing to Kuala Lumpur’s national digital transformation agenda. Nestlé selects Malaysia for global procurement hub investment as Malaysian Minister announces Kuala Lumpur strives to position the country as a preferred investment destination. Jardine Matheson and Fraser and Neave seek to increase stakes in Vinamilk as Vietnam continues to divest in its state-owned industries, albeit cautiously. Hanoi cooperating with World Bank to create new regulations to increase FDI in Vietnam as country seeks to diversify FDI sources.

Dr. Toshiya Ozaki's picture

Nissan’s Investment in Mitsubishi Motors

In mid-May, Nissan Motor Co. surprised Japan when it announced it would invest $2.2 billion in Mitsubishi Motors to gain effective control of the latter. The surprise was twofold. First, the announcement’s speed and timing astounded many.

MNCs in the News-2016-02-12

Shanghai Zhangjiang National Innovation Zone allows new possibilities for foreign pharmaceutical companies to focus on their core competencies. Sharp’s acceptance of a buyout bid from Foxxconn suggests Japan really may start to welcome more foreign direct investment (FDI). Japan’s Mitsubishi willing to do all work in Australia to win major Australian next generation submarine contract. Gaeseong Industrial Complex falls victim to tit-for-tat between South and North Korea over the latter’s missile and nuclear tests. Daewoo Engineering & Construction wins project commissioned by Indian state-run enterprise at a time of a special strategic partnership between India and South Korea. Indonesia to undertake major FDI liberalization. Indonesian filmmakers cheer opening of the film industry and cinema sector to foreign investment. Indonesian government plans to provide legal guarantee to PT Kereta Cepat Indonesia China (KCIC) for Indonesia’s high-speed rail project. Thailand’s Board of Investment (BOI) touts the successes of its new investment promotion policy and cluster-promotion scheme. Thailand’s Commerce Ministry aims to bolster the overseas investment capabilities of Thai small- and medium-enterprises. Malaysia sees greater Chinese inward FDI in the future. European Chamber of Commerce expresses its hopes for legal and policy changes during the next Filipino presidency.

Dr. Amitendu Palit's picture

India as the New Destination for East Asian Assembling and Its Implications

Chinese smartphone producer Xiaomi has tied up with Taiwanese electronics contract manufacturer Foxconn to manufacture mobile phones in India. The first batch of Xiaomi phones (Redmi 2 Prime) assembled by Foxconn in India’s southern state of Andhra Pradesh was launched recently. Greater low-cost phone production by Xiaomi in collaboration with Foxconn will be enthusiastically welcomed by Indian consumers given their voracious appetite for mobile phones:

MNCs in the News-2015-02-13

China’s National Development and Reform Commission (NDRC) hangs up anti-monopoly case against Qualcomm. American Chamber of Commerce survey of 477 firms in China reveals business concerns about numerous issues. China’s All China Federation of Trade Unions (ACFTU) charges Foxconn Technology Group with abusing its workers and Foxconn fights back. Local labor district and labor union mediation helps to settle labor severance dispute at Citizen Guangzhou factory. American and European government representatives and business associations express displeasure with cyberspace situation in China. Chinese investments in Europe soar and Chinese government calls for Greece to protect Chinese investments. ISIS’s murder of Japanese citizens leads to changes in Japanese company operating strategic and environment. The Korean Fair Trade Commission (KFTC) initiates an antitrust investigation against Qualcomm. Taiwan Ministry of Economic Affairs gets into gear to attract foreign investment.

MNcs in the News-2014-09-19

Inward foreign direct investment into China hits two-and-half year low, though service IFDI and IFDI from Korea remain bright spots for the first eight months of 2014. The fray about whether or not China’s antimonopoly investigations fairly treat foreign firms increasingly draws in foreign governments with some foreign executives backing China. Accusations emerge that Qualcomm, the subject of a major antitrust investigation, has bribed a high-level State Council official. Academics and Chinese populace voice diverse concerns about foreign investment in China. Foxconn, major Apple supplier, denies report that benzene use at its factories caused leukemia among workers. Chinese outward FDI continues to show considerable vibrancy, rising to over $65 billion in the first eight months of 2014. China pledges to invest $20 billion in Russia during first China-Russia Cooperation Council for Investment. Drivers of Chinese investment in Africa include direct invitations from the highest political levels. Recent changes in the political environment and lure of the China market seem to be inducing Japanese investors to think about pursuing increased investment in China. National Development and Reform Commission steers its attention to Toyota’s Lexus spare and replacement part pricing practices. Internet Initiative Japan Inc. seeks to provide its first data center, known for its power saving features, to the Laotian government. Iraq conflict forces declines in South Korean oil imports. Taiwan’s Financial Supervisory Commission (FSC) requires companies with a capitalization exceeding $10 billion to issue CSR reports to deal with the fallout of the Chang Guann food oil scandal. Taiwan to cooperate with France on the Internet of Things.