India

MNCs in the News-2017-08-04

Donald Trump administration contemplates using Section 301 of the 1974 Trade Act to challenge China’s technology transfer and intellectual property right protection practices. Foreign businesses increasingly fret about the burdens to be flowing from China’s rejection of non-approved virtual private networks (VPNs) and other data controls/restrictions. China’s Ministry of Finance issues a guideline to limit risk of overseas investments by state-owned enterprises (SOEs). Foxconn Technology Group announces major planned investment in the United States (US) to do R&D work relating to self-driving vehicles perhaps due to Trump’s efforts to bring more manufacturing to the US. Workers at Nissan’s Mississippi factory vote on whether to join the United Auto Workers. Japan’s JFE Holdings Inc. considers further investment into India’s JSW Steel Ltd as a way to profit from increased steel demand potentially flowing from Indian Prime Minister Modi’s economic plans. South Korean firms struggle in the Middle East due to government indifference and rising political tensions. South Korea’s LA Cable & System signs USD $195 million contract with Qatar’s state owned utilities firm. Jakarta focuses on simplifying investment application process for foreign firms seeking investment licenses. Indonesia’s government will start taking bids in September for construction of six massive geothermal power plants. Thailand and Australia discuss revising the Thailand-Australia Free Trade Agreement to increase investment and trade. Indian Oil Corp Ltd in talks with partners to search for cheaper location for Pacific Northwest LNG terminal after recent withdrawal of Petronas. South Korea’s Lotte signs Eco-Smart city development contract with Vietnam’s People’s Committee of Ho Chi Minh City. Vietnam’s Prime Minister confirms that creation of Vietnam’s first three special economic zones would enjoy special rules to attract greater investment.

MNCs in the News-2017-07-28

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.

MNCs in the News-2017-07-14

Chinese inward foreign direct investment (FDI) in June shows slow growth year-over-year (YOY) while the first half of 2017 showed a very slight decline in inward FDI (IFDI) YOY. Twenty percent of American firms in Shanghai plan to redirect their investment elsewhere. China’s non-financial outward FDI (OFDI) over the first six months of 2017 YOY plummets due to capital controls, tight loan supervision, and overseas factors. Almost a dozen members of American Congress ask US Securities and Exchange Commission to block Chinese-led consortium from buying Chicago Stock Exchange. At a recent conference, Chinese officials tout dramatic future growth in Chinese OFDI and moneys supplied for One Belt, One Road projects. Japan External Trade Organization and India’s provincial governments increase investment cooperation for special industrial zones to meet expansion needs of Japanese firms. Toshiba still negotiating with bidders, as company strives to fulfill government demand to keep chip technology under domestic ownership. SK Group moving to aggressively increase relations with Chinese officials. China considers investment to connect Thailand's Eastern Economic Corridor with Kunming's special economic zone. Malaysian financier central figure in probes related to plundered Malaysian state development fund 1Malaysian Development Bhd. Vietnamese government gradually opens its transportation and logistics sector, providing investment opportunities for foreign firms.

MNCs in the News-2017-06-23

China’s State Council announces that 27 restrictions relating to foreign direct investment (FDI) in its free-trade zones have been eliminated. China’s non-financial outward FDI (OFDI) plunges by almost 53 percent for the first five months of the year year-over-year (YOY). Chinese legal experts suggest new international legal mechanisms may be needed to deal with disputes involving Chinese OFDI. China’s Huadian, a state-owned enterprises (SOE), and Russia’s TGC-2 announce nearly $600 million joint venture power project has come online. After years of decline because of political tensions Japanese companies now more willing to invest in China. Survey shows Japanese firms willing to increase investment in Thailand especially in Eastern Economic Corridor. Samsung Electronics Co. about to finalize talks on expanding its US production facilities, a move motivated by Donald Trump’s election. Jakarta promises more easing of rules to increase foreign investment. PGN, Indonesia’s National Gas company, plans to make Batam Indonesia a center of natural gas supplies and a “paradise” for energy investors. Malaysia Digital Economy Corp welcomes Japanese ICT firms to use Malaysia as a stepping-stone for entering the Southeast Asian market. Malaysia’s Construction Industry Development Board to participate in bidding process for Indian railway stations’ makeover.

MNCs in the News-2017-05-19

Almost five dozen global business groups send letter to top Chinese officials asking China to postpone the implementation of its cybersecurity law. Foreign pharmaceutical companies seek new ways to get high off China’s pharmaceutical policy reforms. Several American senators scream that Ant Financial’s takeover of MoneyGram is a national security threat. Joint strategic and security concerns over China’s Belt and Road initiative drive Japan and India to engage in new economic partnership. China’s economic retaliation against South Korea following South Korea’s adoption of THAAD missile system decreases after the installation of a new Korean government. Daewoo E&C and Hanwha E&C partner with Saudi Arabian government to develop new Saudi Arabian city. Wanda Group Chairman meets with Malaysia’s Prime Minister and considers investment exceeding USD $10 billion in Bandar Malaysia development. Malaysia’s troubled carmaker Proton seeks to sell up to 51 percent stake to foreign investor. Survey shows that despite government encouragement to go overseas smaller Singapore businesses emphasize local investments. Vietnam’s President welcomes Chinese hi-tech investment as Hanoi pursues a green economy and economic growth. Transfer pricing continues to be a serious problem with foreign investment in Vietnam.

MNCs in the News-2017-05-12

Germany’s top financial regulator generically welcomes Chinese investment in Germany’s financial sector. Tokyo and Beijing discuss bilateral economic relations and cooperation, as Japan fears potential spillover of China’s economic problems. India’s Finance Minister invites Japanese companies and financial institutions to engage in India’s “Made in India” initiative. POSCO and SeAH Steel join growing list of Korean multinationals joining American Chamber of Commerce Korea. Malaysian federal government’s support increases Johor’s appeal as a foreign direct investment (FDI) destination. Failure of Chinese bailout deal fuels speculation about future of Chinese investments in Malaysia. Formosa accelerates investment in USD $11.03 billion integrated steel mill project in Vietnam. Vietnam’s Prime Minister meets with Hong Kong delegation to promote infrastructure investment in Vietnam.

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.

Wong MNC Center orchestrated special section on China's Maritime Silk Road Initiative and South Asia is published

The April 2017 issue of Geopolitics (Vol. 22, No. 2, 2017), a leading journal in the field, will feature a special section on The Geopolitics of China's Maritime Silk Road Initiative (MSRI) that focused on the MSRI and South Asia. The special section provides background on the MSRI, surveys China's economic and political goals at the national and sub-national level, and identifies a number of number of the political and economic factors at the national and sub-national level within and beyond China that will affect the implementation of China's ambitious scheme.

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-2017-02-24

Capital outflow limits and consumer sector investment liberalization measures affect both the volume and sectoral distribution of foreign direct investment (FDI) flows into China. Chinese restrictions on capital outflows are affecting how sellers perceive Chinese investors. Members of the US Congress are looking to empower the Committee on Foreign Investment in the US to scrutinize Chinese investors more rigorously. The European Commission launches an investigation of planned Chinese high-speed railway project connecting Hungary and Serbia. Uncertainties surrounding Trump Administration policies are making Japanese firms, with the exception of auto firms, cautious about investing in the US. Suzuki Motor Corporation obtains incentives that will cause it to expand its investment in Pakistan. Lotte is explicitly warned by China not to meet the South Korean government’s demand for land for its THAAD system. South Korea’s SKC Ltd. and Japan’s Mitsui Chemicals- Mitsui Chemicals & SKC Polyurethanes Inc. (MCNS) will set up a facility in India to produce polyurethanes. Freeport-McMoRan threatens to sue the Indonesian government if they do not resolve their dispute over Freeport’s obligations. Indonesia solicits Saudi investment, especially in non-oil and non-gas sectors.

Pages