Indonesia Investment Coordinating Board

Chinese drug approval authorities likely to approve several blockbuster foreign drugs in 2018. Hyundai Motor Group faces declining sales growth in 2018 in large part due to political and economic challenges in China. China State-Owned Assets Supervision and Advisory Commission (SASAC) to issue new guidelines to improve behavior of state-owned enterprises (SOEs) in various areas. United States (US) Committee on Foreign Investment in the United States (CFIUS) concerns leads China’s Ant Financial and US MoneyGram to terminate the former’s acquisition of the latter. Japan’s Toshiba Corp sells floundering US nuclear business Westinghouse, which went bankrupt after regulations and other factors stalled many of its projects, to Canada’s Brookfield. US legal process for Takata Corp.’s US unit coming to completion, which should allow company to make payouts to claimants who suffered from Takata’s faulty airbags. Korea urges US policy makers to reconsider the US International Trade Commission's recommended special tariff on imported Korean washers. Lotte Group struggling to shed its politically troubled Chinese hypermarket chain after talks with Thai conglomerate failed to produce agreeable sale price. Indonesia’s state-owned energy company Pentamina took back control of Indonesia’s largest oil and gas block helping Jakarta to expand its control over domestic energy production. Indonesia’s Investment Coordinating Board launches several measures to spur 10 to 14 percent year on year growth in FDI. Thailand’s Board of Investment expects FDI into its EEC to continue to grow as new EEC policies are implemented and foreign companies become familiar with EEC requirements. Chinese FDI into Malaysia is expected to move out of infrastructure and property development and into new sectors due to China’s Belt and Road Initiative. Japanese Ambassador touts that Japanese firms have a good chance to win Kuala Lumpur-Singapore high-speed rail project. Vietnam’s Ministry of Transport has set a new deadline for long delayed Chinese-funded Cat Linh rail project

China approves cyber security law despite intense lobbying by foreign business associations, firms, and governments. China reportedly is considering allowing foreign investment banks to have wholly owned operations on the mainland. China Development Bank Capital (CDBC) and Microsoft have formed a partnership to “promote technology innovation and smart city development.” Germany withdraws approval for a group of Chinese investors’ 670 million euro purchase of Aixtron. The German government is seeking greater powers to investigate and potentially block Chinese acquisitions of German companies. China has expressed concerns about Germany’s seeming new protectionist stance towards Chinese investment. German Vice Chancellor Sigmar Gabriel speaks strongly about protecting German interests and gets the cold shoulder during a visit to China. High-level officials from the United Kingdom (UK) and Britain meet to discuss new investment collaborations in the financial sector. The Japanese government pushes Japanese firms to invest in Russia to help facilitate a resolution of the Russo-Japanese Northern Territories/Southern Kurils dispute. Japanese Trade minister Hiroshige Seko and Russian Far East Development Minister Alexander Galushka agreed to promote economic development projects in Russia’s Far East ahead of a summit between their leaders in December. Japan’s JFE Engineering Corporation will start constructing greenhouses in Primorsky Krai in cooperation with a Russian federal state enterprise. The President of the Japanese chambers of commerce in Britain and the European CEO of Mitsubishi warns that more than general assurances about Brexit are needed to comfort Japanese firms in the UK. Korea and Oman establish basis for Korean companies to participate in almost $27.1 billion in energy and infrastructure projects in Oman. Korea Gas Corporation moving forward on cooperation with China National Petroleum Corporation on natural gas trading, joint international projects, and information sharing. Chinese foreign direct investment (FDI) in Indonesia has jumped following repeated high-level meetings between the Presidents of the two countries. Donald Trump’s victory dampens the opportunities for US energy companies in Indonesia. Jack Ma opts to serve as an advisor to Malaysia rather than Indonesia about the e-commerce economy. Chinese technology giants like Alibaba, Tencent, and Wanda Group have expressed their interests in participating in Malaysia’s digital economy plan. During his recent visit to China, Malaysian Prime Minister Najib Razak signed 14 memorandum of understandings totaling USD $47.5 billion. Pundits note both future opportunities and risks relating to increase Chinese investments in Malaysia.

Inward FDI into China grew slowly over the first six months of 2016 year-over-year. The Permanent Court of Arbitration’s unfavorable ruling against China’s South China Sea claims sparks protests and boycott calls against American “icons” in China to the chagrin of the Chinese government. A Chinese consortium’s effort to buy the entire Opera Software company falls apart reportedly due to a failure to get sufficient Chinese government approvals. Japanese official travels to Singapore to tout the advantages of Japan high speed rail system for the Malaysia-Singapore high-speed rail project. South Korea’s Fair Trust Commission watchdog relaunches investigation into Google Inc.’s requirement that smartphone makers using its Android operating system preload its search engine. Indonesia’s Investment Coordinating Board (BKPM) is conducting a roadshow in Guangzhou to tout the country’s improving investment environment. Indonesia is working to help investors surmount problems that hinder them from realizing their investments and has developed special initiatives. The Malaysia Investment Development Authority (MIDA) is working on getting more companies to participate in its principle hub scheme. Vietnamese Deputy Prime Minister calls on his country to be more selective in its FDI attraction efforts and to work on getting better FDI.

China will ban foreign companies, including foreign-invested joint ventures (JVs), from publishing online media, games, and other creative content within China’s borders. Deals involving Chinese companies receive the highest number of Committee on Foreign Investment in the United States (CFIUS) reviews for the third straight year. US administration and Congressional sensitivity to Chinese investments in the US reportedly grows. Indian bullet train deal with Japan leads to new construction and parts opportunities for Japanese companies. Violent protests in Rohtak forces Maruti Suzki to suspend its production activities. Korea Industrial Complex Corporation will help Hoa Khanh Industrial Complex develop industrial symbiosis projects. Korea’s Ministry of Culture, Sports, and Tourism awards integrated casino resort project to U.S. casino operator Mohegan Sun. Indonesia negative list and other policy measures directed at foreign investors draw increasing attention to the country. Indonesia’s Investment Coordinating Board plans to boost foreign investment from Southeast Asia countries, especially Singapore and Malaysia. Indonesia’s cold-storage industry hopes government will act to shape the form and location of FDI in its sector. The Thai Payment Network will issue millions to card to advance government’s national e-payment initiative. Thailand’s Board of Investments will open branches abroad to help Thai companies invest overseas.

Leading car hailing services apply for legal status from Chinese authorities. The US has identified Chinese companies that it feels profited from Chinese military hack of US corporate data. Inward FDI in Korea is heavily concentrated around Seoul, though the trend is not as strong as in past years. Korea is considering imposing “Google tax” on mobile and electronic device app and content purchases. Volkswagen Korea will issue written apology for software that provided deceptive vehicle emissions data. Hansae plans to build a large plant in Haiti to jump US tariff walls. Indonesia grapples with Japan’s displeasure with its awarding of a medium-speed speed rail project to China. Malaysia expresses confidence that state-linked firms are capable of dealing with the challenges of TPP related competition. Singapore pressures retailers not to do procure from or sell the products of firms associated with massive fires in Indonesia that are polluting Singapore. Taiwan’s Environmental Protection Agency will take measures against Volkswagen for its scheme to circumvent environmental regulations.