Myanmar

MNCs in the News-2017-04-14

China announces draft rule that would require certain firms to obtain permission to transfer data out of China. Apple promotes the adoption by yet more of its China suppliers of renewable energy. A Chinese think tank and corporate collaborator release a report showing that Chinese firms have been substantially boosting their investment in the manufacturing sector. Potential seen for greater Chinese involvement in ambitious American infrastructure programs. China and Myanmar agree to open oil pipeline linking Myanmar’s Kyaukpyu port to Yunnan, China. Likely opposition from Japanese and US government may drive Toshiba to reject highest bid from Taiwan’s China-connected Hon Hai. Korean companies participate in Saudi Arabia’s Vision 2030 project and, accordingly, will get special support from the Saudi government. Foreign firms pour money into South Korea’s IT, fashion, and entertainment startups to profit from Korea’s cultural power. News reports reveal Malaysia Korea Partners funneled money to the leadership in Pyongyang for decades, violating UN sanctions. China’s Alibaba Group and the Malaysia Digital Economy Corporation (MDEC) jointly establish Digital Free Trade Zone. Cheaper labor, less stringent legal structure, and better intellectual property right protections spur Italian corporate pivot from China into Vietnam. Local officials in Can Tho court French investment in various sectors including agriculture.

MNCs in the News-2017-03-31

Chinese government financial institutions intensify their backing for China’s “Made in China 2025” initiative and press non-governmental bodies to increase their support. Chinese law on joint ventures with specific requirements regarding new energy vehicles alarms foreign carmakers which fear they will be required to transfer technology. Beijing Intellectual Property Court supports Apple on design patent dispute with Shenzhen Baili. United States Trade Representative office issues report on trade barriers, highlighting many problems relating to China’s treatment of American companies in China. Chinese officials continue to defend their intensified oversight of Chinese outward investment. Tsinghua Unigroup garners massive new aid pledges from the China Development Bank and China national chip fund. Myanmar reportedly will restart construction on a China financed oil pipeline. Last week, the Chinese business community in Kenya establishing a lobbying group. Westinghouse’s bankruptcy filing means troubled Toshiba faces a potential net loss of USD $9 billion net loss in 2016. Russia and Japan discuss plans for investment projects and other joint cooperation on the disputed Kuril Islands. SK Innovation Co. freezes the operations of its battery packing plant in China, denying they relate to Chinese economic sanctions against Korea. Doosan Heavy Industries & Construction Co. secures Saudi Arabia seawater desalination deal worth over USD $400 million. Mining giant PT Freeport Indonesia agrees to convert its contract of work into a special mining permit, providing a potential basis for a settlement of its disputes with the Indonesia government.

Japan Economic Foundation Executive Managing Director Naoyuki Haraoka delivers keynote address at the “New Developments for Japanese and Chinese Firms” Conference.

At opening of the “New Developments for Japanese and Chinese Firms” conference, Mr. Naoyuki Haraoka, Executive Managing Director of the Japan Economic Foundation (JEF), delivered a keynote address entitled “Japanese FDI in Asia and Asian FDI in Japan.” Mr. Haraoka began his speech by providing background on JEF’s origins and its evolving areas of research.

Dr. Jean-Marc F. Blanchard's picture

China’s Maritime Silk Roads Initiative and Southeast Asia: Rough Sailing through the South China Seas?

As our readership knows, one of China’s signature foreign policy initiatives is the Maritime Silk Road Initiative (MSRI), a key part of its larger One Belt, One Road (OBOR) scheme.

MNCs in the News-2016-07-08

Apple struggles to ensure China does not turn into a lemon. Walmart workers in China take widespread action against the company’s new working hours system. British Trade Ministry touts that losing pounds is good for Chinese investors. China Road and Bridge Co. wins first state project awarded to a Chinese company since new government came to power in Myanmar. Chinese banks work to bolster risk management and compliance abilities as they expand overseas. Japanese financial firms licensed in London forced to consider whether they should relocate elsewhere in the European Union (EU). After massacre in Dhaka, Japan’s Fast Retailing Co. suspends all but critical travel to Bangladesh. South Korea begins investigation of Ford Motor’s Explorer for possible leakage of exhaust fumes inside the vehicle. GM Korea is under the microscope in Korea because of repeated bribery/corruption scandals and selling inferior quality cars. The Indonesian Chamber of Commerce and Industry urges the government to take action to allow for full implementation of its policy packages. Contemporary Korean investment in Vietnam represents a third wave of Korean investment in the country.

MNCs in the News-2016-04-22

China’s Ministry of Commerce underscores reasons to be optimistic about inward foreign direct investment flows into China. China experiences a massive creation of foreign-funded enterprises between 2011 and 2015. China’s National Development and Reform Commission will test a “negative list” approach in Fujian, Guangdong, Shanghai, and Tianjin. The American Chamber of Commerce in China expresses concern about China’s policies and what it sees as a lack of serious commitment to reform. In testimony before Congress, Apple denies that it had provided iPhone source code to China. Chinese anti-trust investigators now seem to be turning their attention to Korean firms after targeting German and Japanese firms. China’s Chinese outward foreign direct investment (COFDI) and M&A deals show significant growth in the first quarter of 2016. EY forecasts strong Chinese outward FDI growth averaging 10 percent partly because of the One Belt, One Road program. South Korea’s Fair Trade Commission reports it succeeded in getting Apple to revise the problematic Authorized Service Agreement it had concluded with six Korean repair service providers. Government data indicates the Korea-China Free Trade Agreement is stimulating COFDI into Korea. Indonesia’s President Joko "Jokowi" Widodo will visit four European countries to promote European investment in Indonesia. Denmark concludes Memorandum of Understanding with Indonesia involving capital and technology in exchange for land. Experts call for Vietnam to be more selective in granting tax incentives to foreign investors and encourage it to strengthen its FDI management capabilities. Myanmar grants a license to Vietnam’s military-run Telecommunications Group (Viettel) to build a multi-billion dollar telecommunications network.

MNCs in the News-2016-04-08

China fails to submit new negative list proposal to US. Chinese firms are pouring money overseas driven by a depreciating currency among other factors. The Washington Post calls for a new approach to Chinese outward foreign direct investment (FDI) that takes into account non-traditional risks. ZTE replaces three top executives in reaction to US sanctions and warns of possible further penalties. China’s Beijing Urban Construction Group wins bid to build a US $300 million international cargo hub and airport in Bolivia. Korea Electric Power Corp. wins its first overseas solar power plant contract. Indonesia’s Investment Coordinating Board warns it will annul the investment permits of foreign companies that are avoiding their tax obligations. Indonesia and France work to expand the possibilities for French infrastructure investment in Indonesia. Thailand’s United Power of Asia Plc has signed an agreement with Myanmar’s state utility to construct a gas-fired power plant in the Dawei special economic zone. Russia and the US are competing for investment opportunities in Vietnam. Vietnam moves to increase its harvest of investment, especially FDI, in the agricultural area. Vietnamese representatives court investors from the Chinese mainland, Hong Kong, and Macao at a seminar in Hong Kong.

MNCs in the News-2016-03-18

Chinese Ministry of Commerce spokesman voices confidence China will remain attractive to foreign investors and promises new efforts. China’s State Power Investment Corp. buys Taralga Wind Farm project for nearly $230 million. Former Turkish energy minister expects China to bid aggressively during the bidding process for Turkey’s third nuclear power plant. China’s Three Gorges International Corp. will bid on Brazil’s Tapajos hydroelectric dam project. Japan’s Toshiba reveals that US Justice Department and US Securities and Exchange Commission are investigating the accounting practices of its US units. Political infighting in Indonesia results in postponement of major oil bloc development by Japan’s Inpex. Japanese firm partners with government controlled Indian private venture on major wind power project across seven Indian states. Bank of Tokyo-Mitsubishi UFJ will become the first Japanese lender to provide Islamic compliant financing through an overseas branch. Influx of Japanese businesses into Myanmar’s Thilawa special economic zone drives drives Myanmar’s CB Bank to open a branch there. Korea Electric Power Corporation (KEPCO) has signed a Memorandum of Understanding with Ecuador linked to its plans to build EV charging infrastructure operation systems in the country. The Korea Rural Community Corporation is expected to secure a government of Gujarat (India) contract for the construction of the Kalpasar sea wall project. Indonesia aims to bring more European investment into the country. The President of the European Association for Business and Commerce called upon the Thai government to embrace a number of changes in order to draw more investment.

Dr. Jean-Marc F. Blanchard's picture

The Other “New Normal” or Chinese OFDI on the Rocks?

For some judging the current state of Chinese outward foreign direct investment (COFDI) negativity is the “new normal.” Rejected in Myanmar due to domestic politics, whipsawed in Sri Lanka by shifts in administrations, and hamstrung by the US Committee on Foreign Investment in the United States (CFIUS) national security review process, China In

MNCs in the News-2016-01-15

China’s Ministry of Commerce (MOFCOM) announces that China’s inward foreign direct investment (FDI) hit $126.27 billion in 2015. Apple works to promote zero waste and solar energy programs at its China suppliers. In 2015, Apple was the largest foreign service sector tax payer in Shanghai while Shanghai Volkswagen was the largest foreign industrial sector tax payer. GAC Group becomes strategic investor in Uber. China’s outward M&A in 2015 hits record. Beijing Kunlun buys stake in gay dating ap Grindr. Japanese firms win construction deals in Myanmar’s Thilawa special economic zone. Woori Bank becomes first Korean bank to arrange Sharia-law compliant financial transaction with an Islamic bank. Indonesia and Russia pursue improvements in their investment, trade, and other forms of economic cooperation. Indonesia National Human Rights Commission calls for Japan to be attentive to possible human rights violations regarding a Japanese supported thermal power plant project. Foreign investment into Thailand in 2015 drops dramatically. Thai Industrial Association head frets that Transpacific Partnership will led to investment diversion as well as intensifying competitive pressure for Thai goods. THAI breaks tradition on bringing foreigners into managerial ranks. State-owned Vietnam Airlines welcomes investment from Japan’s ANA Holdings. Ho Chi Minh City orders Uber to pay taxes due immediately. Pressures for Vietnamese SOE reform through foreign partnerships increase, but the process proves challenging

Pages