LG Electronics

China Ministry of Commerce (MOFCOM) releases 5-Year Plan and notes China will keep opening up select sectors and make it easier for high-quality investors to enter them. MOFCOM expects China will remain a top global recipient of inward foreign direct investment (FDI) even as the country works to improve the quality of inward FDI (IFDI). China’s Ministry of Finance promises that China will provide a level playing field in government procurement to foreign goods and services providers are concerned. Indonesia now has to allocate government moneys to accelerate its Belt and Road Initiative high-speed railway project which is overbudget and behind schedule. China’s Cosco stake in the Piraeus Port Authority (Greece) surges to 67 percent with some questioning the merits of Cosco getting a higher stake. FDI from mainland China and Hong Kong in Japanese real estate, some with forests and access to water resources, raises concerns due to a lack of good data and legal structures to regulate what is done with natural assets. TSMC will build a semiconductor plant in Japan that Tokyo will support with financial assistance in an effort to boost its economic security. Korea Fair Trade Commission will not yet tough regulation of big tech companies, but it watching careful to limit unfair business practices. Korea companies are becoming increasing players in overseas mergers and acquisitions with their attention shifting to the United States and Europe as well as high-tech sectors.

China State Council meeting decides to pursue numerous measures to increase foreign direct investment (FDI) flows as well as the realization of major FDI projects. Rising United States (US)’ tariffs are driving Asian firms to leave or contemplate departing China for other places in the region. Despite pressures, China Ministry of Commerce (MOFCOM) official notes Chinese outward FDI (OFDI) is to be expected and Beijing will encourage firms with ‘good reputation’ and ‘strength’ to invest. Per MOFCOM the profits of Chinese companies overseas hit USD $137.8 billion in 2017, a 52 percent jump year-over-year (YOY). The Japan Overseas Infrastructure Investment Corp. for Transport & Urban Development (JOIN) and the Japan Bank for International Cooperation will invest $300 million in the $16 billion Texas high-speed rail project. Seeing shifting trade patterns due to China’s Belt and Road Initiative (BRI) and the US-China trade war, Japan’s Nippon Express will seek to expand its shipments on Chinese rail companies. South Korea’s Daewoo to cooperate with state-owned Korean enterprises and other firms to bid on massive nuclear power projects in the Czech Republic and Poland. South Korea and Chile look to build up their infrastructure cooperation.

China’s Ministry of Commerce (MOFCOM) spokesperson stresses that China’s industrial policies will not discriminate against foreign firms. China’s favoritism towards state-owned enterprises (SOEs) not only pressures domestic firms, put foreign companies, too. Bain led consortium still hopes to conclude Toshiba deal despite litigation by competing bidder Western Digital. Chinese authorities announce Honda will recall over 245,000 vehicles in China because of concerns about Takata made air bags. China’s MOFCOM allows HP Inc. to buy Samsung Electronics’ printer business subject to certain restrictions. Samsung and LG to invest in US production facilities to avoid Trump administration protectionist tariffs and setbacks. Tesla Motors to increase investment in Korean electric vehicle infrastructure because of recent changes in Korean government subsidy policies. Only 27 percent of foreign investment pledges for Indonesia fulfilled in the last 10 years causing Indonesian government to undertake corrective action. Freeport-McMoran rejects Indonesian government’s latest divestment plan. Singha Estate Plc announces USD $1.5 billion project spurred by Thai and Maldivian governments’ efforts to promote tourism in both countries. Honeywell first multinational company to participate in the Malaysian Investment Development Authority’s Principle Hub Initiative. Moody’s calls attention to fact that tensions on Korean peninsula may seriously affect Korean investment in Vietnam. Vietnam’s Chamber of Commerce and Industry to host events to attract more Japanese investment.

China’s elderly care needs create space for foreign investors. China’s efforts to control capital flight are leading to increased bureaucratic review and deal delays. Japan’s Takata Corp. enters into a settlement pursuant to which it accepted a felony charge and will create two compensation funds worth USD $1 billion. Nissan Motor Co. faces fines relating to worker injuries at its Mississippi and Tennessee auto factories. Despite the threat of Chinese sanctions, Lotte Group exchanges land with the Korean government that the latter wants for its THAAD missile system deployment. In the face of US President Donald Trump’s threat of tariffs on goods imported from Mexico, LG Electronics announced plans for a home appliance plant in Tennessee that will produce for the US market. Freeport McMoran and Indonesia battle it out with some optimistic a settlement will be reached and others fretting about adverse political and economic consequences for Indonesia. Saudi Arabia and Indonesia strike numerous deals following King Salman’s visit to the latter, though Indonesia hopes for tens of billions of dollars more.