Hon Hai Precision Industry Co.

MNCs in the News-2017-04-21

Big foreign companies increasingly willing to voice complaints about the situation in China. China’s limits on capital outflows affect the willingness of some to invest in China. Beijing is considering “braking” the requirement capping foreign companies ownership in the auto sector to no more than 50 percent with some predicting a crash of domestic firms if this happens. China’s nonfinancial outward foreign direct investment (OFDI) experienced major drops in March over the prior year and over the first quarter of 2017 year-over-year (YOY). China’s One Belt, one Road (OBOR) initiative leads to the signing of a major number of transportation related accords. Sharp considers joint bid with Hon Hai on Toshiba’s memory chip unit as it seeks to mitigate national security concerns. Kia plans USD $900 billion car manufacturing plant in India to surmount India’s steep import duties and China’s anti-Korean economic sanctions. Malaysian trade mission to South Korea brings home Korean investment worth around USD $550 million. Malaysia seeks to increase its cooperation with New Zealand in IT and tourism sectors. Vietnam develops public-private partnership framework allowing more foreign investment particularly from Japan in its infrastructure sector. Hoang Son Trading Investment JSC partners with Spanish-Japanese joint venture to build new solar plant in Vietnam.

MNCs in the News-2017-04-14

China announces draft rule that would require certain firms to obtain permission to transfer data out of China. Apple promotes the adoption by yet more of its China suppliers of renewable energy. A Chinese think tank and corporate collaborator release a report showing that Chinese firms have been substantially boosting their investment in the manufacturing sector. Potential seen for greater Chinese involvement in ambitious American infrastructure programs. China and Myanmar agree to open oil pipeline linking Myanmar’s Kyaukpyu port to Yunnan, China. Likely opposition from Japanese and US government may drive Toshiba to reject highest bid from Taiwan’s China-connected Hon Hai. Korean companies participate in Saudi Arabia’s Vision 2030 project and, accordingly, will get special support from the Saudi government. Foreign firms pour money into South Korea’s IT, fashion, and entertainment startups to profit from Korea’s cultural power. News reports reveal Malaysia Korea Partners funneled money to the leadership in Pyongyang for decades, violating UN sanctions. China’s Alibaba Group and the Malaysia Digital Economy Corporation (MDEC) jointly establish Digital Free Trade Zone. Cheaper labor, less stringent legal structure, and better intellectual property right protections spur Italian corporate pivot from China into Vietnam. Local officials in Can Tho court French investment in various sectors including agriculture.

MNCs in the News-2017-02-10

China’s goal of shifting to a more consumption, service, and higher-valued added economy is reflected in subnational level data. China remains optimistic about Chinese outward foreign direct investment (FDI) in 2017, but plans to guide it to and sees it encountering many challenges. Syngenta believes the ChemChina-Syngenta acquisition will close in second quarter of 2017 despite remaining regulatory hurdles. China halts major Lotte construction projects in northeastern China in apparent punishment for South Korea’s embrace of THAAD. Prior to Japanese Prime Minister Abe Shinzo’s early February meeting with US President Donald Trump, Sharp Corp. announced it would build a liquid crystal display panel plant in the US. Softbank CEO Masayoshi Son touts his progress in fulfilling his job creation promise to U.S. President Donald Trump. Chinese forthcoming revised anti-monopoly guidelines worry South Korean firms which fear they might be used against it. In the face of political pressures, Samsung Electronics will build its first home appliance plant in the US despite fears about the price competitiveness of US production. Moody’s Investor Service upgrades its credit outlook for Indonesia with positive implications for Indonesia’s ability to attract FDI. Indonesian aviation regulatory burdens cause Tigerair to cease its flights to Bali island.

MNCs in the News-2017-01-27

China’s Ministry of Industry and Information Technology sooths foreign firms over upcoming restrictions on VPN providers. Trump administration trade officials back a tougher line towards Chinese semiconductor investment and greater support for home firms. China stresses how Chinese outward foreign direct investment (FDI) in the US promotes manufacturing there and creates jobs. Hon Hai is considering a USD $7 billion investment in a joint flat panel project in the US with Pennsylvania a leading contender. In the wake of growing anxieties over Chinese investment, Australia moves to prepare review of strategic infrastructure. Apparently incentivized by Trump’s withdrawal of the US from the Trans-Pacific Partnership (TPP) and other anti-trade statement, Toyota talks up $600 million investment plan. Toshiba’s troubles in the UK may force it to take on new partners and get United Kingdom (UK) government financing. Domestic and international political uncertainties seem to be driving a slowdown in inward FDI flows into Indonesia. Chinese outward FDI to Indonesia has been exploding, but it is uncertain if it will continue given uncertainties there plus anti-Chinese sentiments.