International Monetary Fund

MNCs in the News-2018-07-06

There is some evidence China has started sanctioning American firms in China as a way to retaliate against American tariffs against Chinese goods. Foxxconn breaks ground on potential multi-billion dollar display screen plant in Wisconsin that allow it to profit from incentives and satiate Donald Trump’s America First campaign. United States (US) Department of Commerce allows ZTE limited duration, partial reprieve on seven-year comprehensive supply purchase ban. Pakistan seeks new funding from China, warning that failure might force it to go to the International Monetary Fund (IMF) which might result in the end of some of China’s Belt and Road Initiative (BRI) projects. Value of new Japanese FDI in US increases by 70 percent as President Trump pushes to expand employment. Japan and Kazakhstan to implement seven joint projects worth approximately USD $2 billion in areas like nuclear energy, transport and water supply. South Korea working with the US and the United Arab Emirates to win $19 billion power project in Saudi Arabia. Samsung urges Chinese officials to cancel discriminatory policies against foreign businesses. Malaysia and China are discussing a future visit to Beijing by Malaysian Prime Minister Mahathir in the wake of Kuala Lumpur’s suspension of Chinese projects valued over $20 billion. Malaysian senior trade official says country is open to more value-added investments from China.

MNCs in the News-2018-05-25

China’s State Council moves to spread best practices from China’s Free Trade Zones (FTZs) elsewhere in China. Muji hung out again for its improper treatment of the Taiwan issue. In Beijing, German Chancellor Angela Merkel warns of further potential restrictions on Chinese investment in the absence of reciprocity. Fears of having to disclose details of loans for China-Pakistan Economic Corridor (CPEC) spur Chinese financial institutions to continue to bank on Pakistan. Motivated by forthcoming regulatory changes, Mitsui Sumitomo Insurance Co. to buy 37.5 percent stake in state-backed Chinese life insurer. Nissan and Renault reviewing tie-up driven by French Government. Trump’s cancellation of US-North Korea summit dashes hopes of lifting international sanctions against North Korea and jumpstarting inter-Korean projects. South Korean electric battery firms charged up as China Association of Automobile Manufacturers’ whitelist highlights capabilities of Korean batteries. Chinese investors pledge to continue investing in Malaysia given new government offers conducive business environment and political stability. Foreign investors increasingly concerned about Malaysia’s fiscal health as national debt is far higher than previously revealed.

MNCs in the News-2017-08-25

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

MNCs in the News-2015-04-24

China’s Finance Minister Lou Jiwei raises concern about US Bilateral Investment Treaty proposals. Wall Street Journal analysis reveals that many Variable Interest Entities may be at risk depending upon how Chinese treats such structures. IBM cooperation with Chinese firm and China raises concerns about the business and political implications. Huawei CEO Eric Xu raises concerns about the potential fallout of China’s new stance toward foreign information technology. The American Chamber of Commerce’s White Paper calls for numerous improvements in the general and sectoral policy environment facing foreign businesses in China. China’s Finance Minister expresses concerns about US Bilateral Investment Treaty demands. China moves to make its negative list more positive in four key free trade zones (FTZs). Jiangsu Province’s Provincial Price Bureau makes Daimler Mercedes-Benz pay a price for price fixing. Visa and MasterCard appear ready to cash in on China’s bank-card clearing market after State Council opens the market in response to a World Trade Organization (WTO) ruling. Korea moves to enrich up its Food cluster Foodpolis. Korean president Park Geun-hye visit to Latin America results in boost to Korean investment and trade. Indonesia will court Chinese investors with special “information desk” in Beijing.