Hyundai Group

China takes a softer stance on dominating the Artificial Intelligence (AI) sector at the World AI Conference in Shanghai. Summer Davos observers and participants stress the progress of the [China] Greater Bay Area in attracting foreign direct investment (FDI). Alibaba’s Jack Ma retreats from promise to create 1 million jobs in United States (US). Germany looks to pursue more measures, including a billion euro investment fund, to control Chinese FDI flows into the country. Japanese chemical firms boost FDI in Southeast Asia to ramp up production to fill the space flowing from reduced production of Chinese firms that cannot meet China’s environmental requirements. Building upon the foundation created by Japanese and Indian leaders, Japanese companies and investors are pouring money into India to support IT startups. South and North Korea agreed to take steps to reconnect infrastructure links and restart discontinued inter-Korean projects. South Korea’s Hyundai Engineering signed Memoranda of Understanding with Indonesian officials regarding the expansion of its industrial facilities and the construction of a hydroelectric power plant there.

China’s State Council issues comprehensive guidelines in an effort to provide a more welcoming environment for inward foreign direct investment (FDI). Foreign firms increasingly fret about pressures to give more power to Chinese Communist Party organizations in their joint ventures. China’s Ministry of Commerce moves to restrain the sectoral and geographic destination of Chinese outward FDI (OFDI) while leaving the space for high-tech and Belt and Road Initiative OFDI. Chinese real estate firms will continue to have strong reasons for OFDI even though they have severely cut OFDI in 2017 due to government controls. Talks between Toshiba Corp. and government led consortium of American, South Korean, and Japanese investment entities break down. Russian moves to encourage investment on disputed Kuril Islands angers Japan. China sales by South Korea’s Hyundai and Kia down for the sixth month straight due to politics, market challenges and branding issues. China’s feud with South Korea over THAAD missile installation harming its own workers and firms. LG Electronics Inc. begins construction of USD $250 million home appliance manufacturing plant in the US following Trump administration’s move to foster a positive investment climate. Under siege at home, China’s Anbang Insurance Group struggling in South Korea and drawing more regulatory attention there. Indonesia’s PT Intra Asia signs memorandum of understanding with Vietnam’s state-owned Coal and Resources department for USD $1 billion coal port. Trade delegation from the UK reaches out to Indonesian government in preparation for post-Brexit trade and investment agreements. Malaysia experiencing strong economic growth due to infrastructure projects the government is implementing across the country. PetroVietnam signs Memorandum of Understanding with Thailand’s Siam Cement Group’s chemical subsidiary to jointly build USD $5.4 billion petrochemical complex. Vietnam’s Ministry of Planning and Investment elaborates upon features of the country’s three new specialized special economic zones