Iraq

MNCs in the News-2021 January

China receives the largest amount of inward foreign direct investment (FDI) in 2020. China’s 2020 revised catalog of encouraged FDI takes effect increasing the number of encouraged sectors. China issues rules to counteract foreign extraterritorial sanctions affecting its nationals and companies. Renewable energy investments dominate China’s Belt and Road Initiative (BRI) energy infrastructure investments in 2020, though coal remains prominent. India makes ban on dozens of Chinese mobile phone apps permanent due to national security and data privacy concerns. China asks India to clarify its permanent ban against Chinese mobile apps. Japan creates English-language, one stop shop to help foreign financial firms set up operations in Japan. United States (US) sanctions against Huawei and limits on Huawei’s involvement in foreign telecommunications infrastructure projects led Japan’s Sumitomo to turn elsewhere for business. Brexit deal between United Kingdom (UK) and European Union (EU) will keep Nissan producing electric vehicles in the UK. Japan unconvinced Korean President Moon Jae-In’s labeling of a 2018 Supreme Court decision on corporate assets as “undesirable” will solve anything. The head of GM Korea emphasizes labor issues as one of the factors that reduce South Korea’s appeal as a destination for FDI. SK Innovation to invest $895 million into a battery plant in Georgia, a move some feel is about winning a case before the US International Trade Commission. Daewoo Engineering & Construction wins major port facility contracting deal in Iraq. Korea Hydro & Nuclear Power gets contract for major dams in Pakistan.

MNCs-2019-10-04

China’s Financial Stability and Development Committee recently emphasized that the country will take further steps to promote “two-way financial opening.” Despite China’s general and targeted efforts to bring in more foreign investors, investors are holding back on investments partly because of China’s capital controls. It appears that Chinese venture capital (VC) flows into the US for 2019 will run even lower than 2015, a particularly abysmal year for VC investment. Iraq has said that it will sign on to China’s Belt and Road Initiative. The Japanese government has submitted a bill to the Diet pursuant to which the threshold for reviewing foreign direct investment (FDI) in sensitive sectors will plunge from 10 to 1 percent. Japan-Korea parliamentary unions work to facilitate the resolution of Japan-Korea economic and political tensions, though their actual influence seems limited. Automobile production by foreign firms in Korea is plunging to post-Great Financial Crisis levels due in part to labor problems. US President Donald Trump tweets for joy about Hyundai Motor Group’s joint venture with Aptiv.

MNCs in the News-2016-01-01

China’s Central Economic Work Conference promises to “‘give equal treatment to domestic and foreign companies.’” China’s National People’s Congress approves counter terrorism law that worries foreign businesses and governments. China’s State Council issues guideline designed to enhance IPR protection. China’s National Development and Reform Commission (NDRC) issues a draft of its first “Anti-Monopoly Guidelines on Abuse of Intellectual Property Rights” for public comment. China’s NDRC fines eight international sea freight shipping companies for price fixing. China’s People’s Bank of China suspends three foreign banks from certain kinds of foreign currency activities. Analysts expect Chinese outward investments to reach new heights in 2016. China’s nuclear power firms hope Hinkley Point project will be a stepping stone to new deals abroad. China and Pakistan finalize financing agreement for massive Thar Coalfield development project. Iraqi Prime Minister courts Chinese investment and railway cooperation during his first visit to China. Japan competes vigorously against China in battle to sell high-speed rail overseas. Inward FDI into Korea hits new high in 2015. At the end of December, Korea announced it would impose a Google tax on foreign companies. Hyundai Development Company wins $85.4 million bridge and road construction contract in Vietnam. Samsung Engineering lands another major engineering contract from Mexico’s PEMEX. The Association of Southeast Asian Nations Economic Community is expected to boost franchise businesses in Indonesia. Indonesia is hopeful that a Comprehensive Economic Partnership Agreement (CEPA) with the European Union (EU) will boost EU IFDI. Indonesian will increase incentives to boost investment in oil refineries. Thailand expects IFDI to meet its targets in 2016. China and Thailand hold ceremony to launch joint rail project, though disagreements exist which may delay the project’s start date. Malaysia touts the benefits of its Principal Hub scheme. Chinese group negotiating with Malaysian firms in order to position itself for a bid on Malaysia-Singapore high-speed rail. Experts feel recent free trade agreements will boost investment in Vietnam. Vietnam expects US FDI flows into Vietnam to increase significantly, though obstacles remain.

Dr. Jean-Marc F. Blanchard's picture

Petrochemical Abuse or Libya All Over Again?

Dr. Jean-Marc F. Blanchard
Posted: Jul 11, 2014

The Libya uprising in 2011 cost Chinese multinational corporations (MNCs) billions. Now, the story seems poised to repeat itself, albeit this time in Iraq where Sunni radicals belonging to the Islamic State of Iraq and Levant (ISIL) now control large portions of western and northern Iraq. While ISIL has yet to endanger Iraq’s most valuable oil fields, its onslaught still poses multiple threats to Chinese interests. These include higher oil prices, disruptions of oil shipments from Iraq (no small matter given Iraq is China’s fifth largest oil supplier), damage to multi-billion dollar investments by Chinese MNCs such as CNPC and Sinohydro, harm to Chinese nationals, and the validation of radical Islam.