Free Trade Zones

MNCs in the News-2017-09-22

China’s National Development and Reform Commission (NDRC) promises measures to create a better environment for foreign direct investment (FDI). China courts foreign investment in its energy sector to advance its reform initiatives. European Union (EU) Chamber of Commerce in China releases position paper detailing many areas of concern among its members about China’s policies towards inward FDI (IFDI). Chinese expresses concern about possible implications of proposed EU wide investment screening scheme. Toshiba selects consortium to take over its politically contentious USD $21 billion semiconductor business. Prime Minister May visits Japan as Japanese firms become more hesitant about continued investment in Britain due to Brexit’s slow and uncertain progress. Economic and security concerns prompt Korea’s Industry Ministry to review investment plans by South Korean semiconductor and display companies seeking expansion in China. State-owned Korea Electric Corp. represents South Korea in a bid to build Saudi Arabia’s first nuclear energy plant. Indonesia’s demand for steel is expected to rise substantially within the decade, triggering calls to improve investment conditions for steel producers. Foreign investment in Indonesian startups reaches USD $3 billion so far this year with Chinese FDI patterns shaped by government initiatives. New Thai Digital Park proposed, opening new potential vistas for foreign investors. Sumitomo Corporation starts construction third industrial park in Vietnam with Vietnam’s Deputy Prime Minister calling for best possible conditions for investors. With central government support, Hanwha Techwin to open first of three Vietnamese aircraft engine parts factories early next year.

MNCs in the News-2017-08-18

China takes steps/promises measures to draw in more foreign direct investment (FDI). China’s State Council details a slew of initiatives to increase greater inward FDI (IFDI) as well as to foster specific types of IFDI. Donald Trump signs executive order authorizing US Trade Representative to decide whether or not to investigate China’s theft of American intellectual property. China’s Ministry of Commerce reports small drop in IFDI over the first seven months of 2017 year over year (YOY) while outward FDI drops dramatically over the first seven months of 2017 YOY. The Philippines is looking to Japan and China to finance investments in energy and power generation projects worth over USD $135 billion. Mitsubishi UFJ Financial Group Inc. to expand operations in Saudi Arabia to support Saudi initiatives to reduce reliance on oil. Kumho Tire Co. to be bought out by its Chinese competitor Qingdao Doublestar Co. for USD $857 million after South Korean state-owned development bank sells its stake to Doublestar. Hyundai to promote Indonesia as Southeast Asian production base because of, among other things, the ASEAN Trade in Goods Agreement will remove car import duties in 2018. Indonesia and Vietnam to boost investment activity following 7th Indonesia-Vietnam Joint Commission on Economic, Science, and Technical Cooperation. Facebook opens full office in Indonesia due to tightening regulations on foreign Internet firms. Recent report touts that Malaysia’s strategic location and competitive position make it attractive for foreign investment. US deepening investigation into money stolen from Malaysian state investment fund allegedly used to obtain around USD $1.7 billion in real estate, jewelry and art.

MNCs in the News-2017-04-07

China’s State Council creates seven new free trade zones bringing the total number in the country to 11. China’s State Administration of Foreign Exchange (SAFE) pushes foreign businesses to support its efforts to limit capital outflows from China. Prior to Donald Trump-Xi Jinping meeting, Chinese parliamentarian links the quality of the meeting to Google’s prospects for entering China. European Union regulators approve China National Chemical Corporations (ChemChina)’s massive acquisition of Syngenta while requiring some significant divestitures. Trump administration considers some dramatic steps to keep Westinghouse’s nuclear business out of Chinese hands. Sibanye Gold Ltd.’s proposed investment in Stillwater mining may not be golden because of American concerns over strategic materials access. Iran-Japan Investment Treaty enters into force on April 26 and may spur Japanese energy investment in Iran. Japanese foreign acquisitions hit a new record of almost USD $100 billion in fiscal year 2016, but performance is dubious. South Korea’s installation of the THAAD system continues to affect adversely Sino-Korean economic relations and Korean businesses. The fallout between China and South Korea over THAAD contributes to South Korean car manufacturers reducing production in their Chinese factories. Consortium of Chinese and Indonesian companies signs contract launching the construction phase of the Jakarta-Bandung high-speed train project. Afghan President Ghani encourages Indonesian investors to invest in Afghanistan and stresses the security of foreign investors as a top government priority. Tier-one American aerospace manufacturer may invest in Malaysia stimulating business for small and medium enterprises and creating high-income jobs. India and Malaysia sign investment deals with a value of USD $36 billion. Belgium plans to ramp up green energy investment in Vietnam.

MNCs in the News-2017-01-13

China’s inward foreign direct investment (FDI) increases moderately over 2015, with a major proportion going into the service sector. Chinese outward FDI (OFDI) soared in 2016, hitting new records, with Europe, above all, Germany a key destination. Jack Ma meets with US President-elect Trump and touts Alibaba’s potential to create one million jobs. Takata pleads guilty to one criminal charge and will pay USD $1 billion in fines in conjunction with falsifying test data about its faulty airbags. Honda will invest USD $372 million in an existing facility in Ontario, Canada. Japanese energy producer JX Nippon Oil & Gas and NRG Energy Inc. complete the world’s biggest carbon capture system in Texas. Apparently prodded by Trump’s protectionist rhetoric, Samsung Electronics will build its first home appliance plant in the US. Indonesia modifies it mineral export ban policy because of its challenging economic growth situation. Indonesia and Japan will discuss business and investment cooperation during a visit by Japanese Prime Minister and during post-visit meetings between Indonesia’s President and a large delegation of Japanese CEOs

MNCs in the News-2016-01-15

China’s Ministry of Commerce (MOFCOM) announces that China’s inward foreign direct investment (FDI) hit $126.27 billion in 2015. Apple works to promote zero waste and solar energy programs at its China suppliers. In 2015, Apple was the largest foreign service sector tax payer in Shanghai while Shanghai Volkswagen was the largest foreign industrial sector tax payer. GAC Group becomes strategic investor in Uber. China’s outward M&A in 2015 hits record. Beijing Kunlun buys stake in gay dating ap Grindr. Japanese firms win construction deals in Myanmar’s Thilawa special economic zone. Woori Bank becomes first Korean bank to arrange Sharia-law compliant financial transaction with an Islamic bank. Indonesia and Russia pursue improvements in their investment, trade, and other forms of economic cooperation. Indonesia National Human Rights Commission calls for Japan to be attentive to possible human rights violations regarding a Japanese supported thermal power plant project. Foreign investment into Thailand in 2015 drops dramatically. Thai Industrial Association head frets that Transpacific Partnership will led to investment diversion as well as intensifying competitive pressure for Thai goods. THAI breaks tradition on bringing foreigners into managerial ranks. State-owned Vietnam Airlines welcomes investment from Japan’s ANA Holdings. Ho Chi Minh City orders Uber to pay taxes due immediately. Pressures for Vietnamese SOE reform through foreign partnerships increase, but the process proves challenging

MNCs in the News-2015-07-10

China tells foreign businesses to stop whining. China’s Ministry of Commerce (MOFCOM) reports that China’s three new free trade zones (FTZs) have attracted significant foreign direct investment (FDI). China’s draft cybersecurity law raises new concerns among foreign technology firms and foreign companies operating in China. China’s heavy outward FDI to and presence around Angola raise concerns among Angolans. Tokyo hosts “Mekong Five” leaders summit to promote export, investment, and infrastructure opportunities for Japanese firms. Japan looks to beat China to build the first deep-water port in Bangladesh. Thai Prime Minister Prayut Chano-Cha courts greatest Japanese investment in Thailand’s special economic zones. Indonesia’s state energy firm Pertamina asserts ownership over the Mahakam block. Indonesia to revoked thousands of unused investment permits issued between 2000 and 2006. Freeport-McMoRan moves to divest mining shares pursuant to Indonesia government regulations. Vietnam moves to build investment and business cooperation in ICT with Japan and South Korea. Vietnamese Communist Party General Secretary promises administrative reforms on tax and customs procedures to create a better investment climate for foreign businesses.