India

MNCs in the News-2018-04-13

Observers believe China’s financial sector liberalization will draw in foreign investors and help internationalize the renminbi. China’s Ministry of Commerce (MOFCOM) expects outward foreign direct investment (FDI) to show good growth for the first quarter of 2018. China “insures” insurance sector will have new openings for foreign investors. Chinese outward FDI in the United States (US) showed massive drop from 2016 to 2017 for various political and economic reasons. Belt and Road Initiative (BRI) mergers and acquisitions (M&A) in 2017 jumps with the Association of Southeast Asian Nations (ASEAN) a favored place for Chinese M&A. Troubled Takata says its acquisition by Key Safety Systems has been completed and the deal has received antitrust and bankruptcy court approvals in several countries. Ghana’s Finance Minister says African countries looking to Japan, among other Asian countries, to tap into abundant investment resources to fund Africa’s development needs. The Chinese government’s latest list of subsidy eligible electric vehicles continues to exclude South Korean battery firms. GM Korea has deadline of April 20th to submit restructuring plans for South Korean operations to government bodies. Malaysia’s Digital Free Trade Zone forecasted to attract over USD $200 million through investments on infrastructure, systems, and equipment over next three years. IHH Healthcare Bhd suggests it would spend up to USD $1.3 billion to acquire India’s Fortis Healthcare Ltd even though India’s fraud commission is investigating the company.

MNCs in the News-2018-02-23

China to use mechanism of internationalization including inward foreign direct investment (FDI) in mixed ownership reform to enhance ability of state-owned enterprises. For 2018, Guizhou aims for $150 billion in investment money from outside the province including small and medium-sized enterprises from foreign countries. Chinese outward FDI in January 2018 jumps over same period a year earlier. Chinese government constraints on outward FDI become even tighter. Japanese airbag manufacturer Takata receives US court approval for its bankruptcy exit plan. Japanese steelmaker JFE Holdings concerned Trump's protectionist rhetoric could impede own investment plans to build US based plant. Korea Expressway Corporation signs MoU for Indian highway construction following agreement between Korean and Indian government to support USD $10 billion in Indian infrastructure. GM proposes investing USD $2.8 billion in its Korean operations, but calls for government assistance to maintain its remaining plants. Russian diversified energy holding company Inter Rao seeking to develop Indonesia's Bandar Kayangan Global Hub. Finance Minister says Indonesia to revise tax incentives to attract more investment. Thailand's government approaches Japanese robotics maker and other engineering manufacturers to build facilities along its EEC. Manila Water Company acquires 18.72 percent stake in Thailand's Eastern Water to enter Thailand's EEC. Thailand's Superblock Pcl plans to invest USD $1.76 billion to build wind farms in Vietnam in sync with Hanoi's renewables policy.

MNCs in the News-2018-02-02

2018 China Business Climate Survey Report indicates "American companies overwhelmingly feel less welcome than before…and want the U.S. government to put more pressure on Beijing." American jury finds Chinese wind turbine maker Sinovel of stealing trade secrets that cost American Superconductor Inc. $800 million. Australia tightens rules relating to sale of power and agricultural assets to foreign investors. United Arab Emirates' state-owned Abu Dhabi Oil Company to expand partnerships with Japanese petrochemical companies. Muji's China subsidiary maps out new catalog strategy after Beijing criticizes its portrayal of boundaries. POSCO E&C withdraws from project to build steel mill in Iran because of high political tensions between Saudi Arabia and Iran. Samsung Engineering resolves conflict with Omani government over USD $1 billion construction deal with Oman's state-owned refinery company Oil Refineries and Petroleum Industries Company. Pertamina awards USD $10 billion refinery project to consortium of Omani and Japanese businesses. Sumitomo Mitsui Financial Group proposes to merge its Indonesian subsidiary with local Indonesian lender to take advantage of Jakarta's banking consolidation drive. Royal Dutch Shell sells control of Thai Bongkot gas field to Thailand's state-owned gas producer PTT Exploration and Production for USD $750 million after failed effort to sell to non-Thai buyer. Thailand's largest state-owned petrochemical company PTT Global Chemical partners with Korea's Daelim Industrial to build USD $5.7 billion petrochemical plant in Ohio. Alibaba Group partnering with Malaysian Government's Digital Economy Corporation to set up artificial intelligence traffic system in capital. Malaysia's state-owned oil company Petronas acquired 6 oil and gas blocks for undisclosed amount from Mexican government in recent auction. Four foreign investors registered to become strategic investors in Vietnam's GENCO 3 as the Hanoi seeks to offload shares of the company. PetroVietnam Gas looking to gain Hanoi's approval to divest 30 percent of its stock to a foreign strategic investor.

Dr. Scott MacDonald's picture

The Return of the Great Game and Infrastructure

Dr. Scott MacDonald
Posted: Jan 14, 2018

The Great Game was a geopolitical contest for influence and dominance in Central Asia between Tsarist Russia and the British Empire that occurred in the 19th and early 20th centuries. The game was played out over vast distances, with a mix of spies, money and armies.

MNCs-2017-12-29

Foreign direct investment (FDI) into China’s service sector shows strong performance in 2017 with observers recommending various improvements to draw in more. China’s National Development and Reform Commission (NDRC) is concerned about surges in mobile chips and may launch an investigation. The China Banking Regulatory Commission has published draft rules that would make it easier for foreign banks to enter China and expand their businesses there. NDRC minister says China is considering passing legislation that would improve supervision of outward FDI (OFDI) and clarify the limits that exist. Japan’s Sumitomo among foreign bidders for Indian Railways’ first global tender. Japan’s Kubota to join USD $92 million project to improve water supply infrastructure in Yangon following local government order. LG Display receives green light from Seoul to build USD $4.5 billion OLED production plant in Guangzhou. South Korea’s state-owned Korea Gas Corporation finally collects return on its 2010 investment into Australia’s liquefied natural gas sector. Mitsubishi UFJ Financial Group posed to gain approval from Jakarta to purchase 73.8 percent of Bank Danamon Indonesia. Major foreign motorbike companies to build production and assembly plants in Thailand as government investment packages continue to proliferate. UK firms looking to bid on light rail transit and construction projects from Malaysian government. Japan surpasses South Korea to become largest investor in Vietnam in 2017 as Hanoi attracts more foreign money for infrastructure investment.

MNCs in the News-2017-12-08

Chinese Vice Premier Wang Yang promises significantly better environment for foreign investors. Lego pieces together blocks of winning copyright case in China. Sinopec USA fires up lawsuit against Venezuelan state oil giant PDVSA. Chinese Foreign Ministry spokesman describes Sinopec USA lawsuit against PDVSA as a normal commercial dispute and cautions against blowing things out of proportion. Nissan files charges in international arbitration court against Indian government for reneging on promised tax breaks. Melco vowed to build headquarters in Japan if it were to be approved casino license following country’s recent legalization of casinos. Improving Sino-Korean political relations giving hope to LG Display that its planned Chinese production facility will finally be approved by Seoul. SK Engineering & Construction to build and run hydropower plant in Pakistan, the first such project for a South Korean company in the country, before returning control to Islamabad. Mitsubishi UFJ Financial Group expected to invest at least USD $1.8 billion in PT Bank Danamon Indonesia and will work closely to meet Jakarta’s regulatory requirements. Jakarta to buy Rio Tinto’s 40 percent stake in Freeport-McMoRan operated Grasberg mine as part of its efforts to gain control of country’s natural resources. Bangkok considering new non-tariff barriers to EVs in anticipation of increased imports of Chinese EVs resulting from ASEAN-China FTA. Thailand’s CT Bright has joined with China’s HNA Group to set up an investment fund for Thailand’s EEC. Kuala Lumpur making new efforts to promote investment in automation and smart manufacturing. Malaysia’s Prime Minister calls on foreign businesses to renew investment in the country. Hanoi grants investment certificate to Sumitomo Corporation for USD $2.58 billion thermal power plant in Vietnam’s Van Phong Economic Zone.

MNCs in the News-2017-12-01

German business association warns Chinese Communist Party request that foreign firms set up party cells may have adverse consequences. Chinese government advisor suggests Shanghai will create free-trade port represents that addresses the failings of the previous Shanghai Free Trade Zone initiative. Shanghai body asks IKEA to consider a new round of dresser and chest recalls. China’s National Development and Reform Commission promulgates list of penalties that Beijing may impose on firms that engage in illegal outward foreign direct investment (FDI) and related activities. Japanese Court to hear Toshiba Western Digital dispute on sale of flash memory division. SoftBank Group to invest USD $2.5 billion in India’s Flipkart as India’s anti-trust commission approves deal. Seoul and London sign memorandum of understanding easing approval process for Korea’s KEPCO to acquire Britain’s NuGen. Hyundai Engineering & Construction Co. and POSCO Daewoo Corp. win Uzbekistan power plant deal. Jakarta has not finalized plans yet for Freeport deal as parties continue to disagree about mine’s valuation. Indonesia’s state-owned utility company Pembangkitan Kawa Bali and Abu Dhabi Future Energy agree to build world’s largest floating photovoltaic power plant. Bangkok approves USD $22.6 billion infrastructure investment in Eastern Economic Corridor, paving the way for more foreign investment projects. Thai firm will build massive power plant in Myanmar despite international outrage over Myanmar’s abuse of Rohingya. Malaysia’s central bank approves larger China’s HNA Group ownership stake in Germany’s Deutsche Bank subsidiary despite initial concerns. Foreign brewing companies eagerly await sale of Vietnam’s state-owned brewer Sabeco. Foreign M&As of Vietnamese business entities rising as Hanoi increases foreign ownership limits and privatizes state-owned enterprises.

MNCs in the News-2017-09-15

China’s potentially massive electric car market and regulatory pressure charge up foreign auto firms’ willingness to share technology and invest in the sector. China plans to blacklist and potentially punish blacklisted Chinese outward investors that become “discreditable.” National security concerns lead American President Donald Trump to crunch Lattice chip’s sale to Chinese buyer. The European Commission has come up with a pan-European measure to vet Chinese investments in the European Union (EU). Thailand’s military junta assures Japanese investors proposed plan for USD $45 billion injection into Thailand’s Eastern Economic Corridor will go ahead regardless of the results of the next election. Suzuki Motor partnering with Toshiba and Denso to invest in electric vehicle facilities in India in line with the latter’s “Make in India” initiative and increasing demand for green mobility. Hyundai releases plans for electric vehicle manufacturing plant in India after Indian government pledges to ban sales of non-EV cars by 2030. South Korean retail giant Lotte Group has begun making plans to sell its China shops due to politically-related pressures in China. Asian Development Bank to support Indonesia’s energy sector. China’s expanded investment in Thailand raises local anxieties. The divestment of numerous Vietnamese SOEs has problematic features that discourage foreign investment. Southern Vietnamese province promoting investment in several industrial sectors through policy reforms and other initiatives.

MNCs in the News-2017-09-01

China announces it is working on a document to enhance the protection of foreign intellectual property rights (IPR). Likely due to Brexit, Chinese delegations flock to Ireland to explore investment opportunities. Indian government asks Chinese smartphone makers to provide info that allows for investigation of security of Indian user data. United States government probing potential bribes paid by Sinopec’s Swiss unit Addax Petroleum to Nigerian government officials. British luxury carmaker Aston Martin announces Japanese investment deal worth nearly USD $600 million as Brexit looms closer. Nissan and Renault teaming up with Dongfeng to design and introduce new electric vehicles to the Chinese market, following China’s new strict emissions rules. Disrupted parts supply due to sluggish cash flow resulting from backlash against Hyundai for Korea’s deployment of THAAD system halts Hyundai’s China production. Samsung Electronics in talks with China for a USD $7 billion expansion of its Xi’an chip plant. Indonesia to finalize numerous deregulation measures aimed at creating more competitive investment environment. Freeport-McMoRan Inc. reduces its ownership stake in Indonesian Grasberg copper and gold mine to resolve long-running dispute with Indonesia’s central government. Mobike, Ofo, and oBike are striving to win the Thai market and working with the government to build a favorable operating environment. Nazir Razak says foreign investors like Malaysia’s robust economy, but are holding off because of uncertainties linked to upcoming election. Vietnam’s leaders recently concluded state visits to Indonesia, Myanmar, and Thailand resulting in USD $13.45 billion of newly registered investment capital. Hanoi General Export Import JSC and Hong Kong United Investors Holding join together on bid for infrastructure project contracts from the Vietnamese government.

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.

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