Myanmar

China’s Ministry of Commerce (MOFCOM) touts that China will act to attract foreign direct investment (FDI) despite a challenging environment. In the wake of a backlash following its removal of Xinjiang products from its shelves, Guangdong Administration for Market Regulation fines Sam’s Club for deceptive consumer practices on its app. Beijing municipal government fines 7-Eleven China for the latter’s website maps that have problematic presentations of Taiwan and other territory. China’s work and the presence of dredgers at Cambodia’s Ream naval base concern the United States and others that China’s seeks to station military assets there. Indian tax authority probe causes it to demand Xiaomi India pay unpaid customs duties. Sri Lanka asks China for debt relief on loans used to pay for Belt and Road Initiative projects. Ruling parties from Japan and Taiwan agree to pursue cooperation on semiconductors to alleviate semiconductor shortages and address the China high-tech challenge. Japanese companies remain committed to Myanmar despite the latter’s serious political, economic, and other problems. The chair of Korea’s Fair Trade Commission (KFTC) promises to continue to improve the KFTC’s regulation while supporting innovation. Apple submits plan to Korea Communications Commission that allows alternative in-app payment systems and reduces payment fees.

Chinese President Xi Jining courts foreign direct investment (FDI) in encouraging letter to the Global CEO Council. China plans to impose sanctions on United States (US) company Lockheed Martin because of the latter’s weapons sales to Taiwan. China’s new, strict cybersecurity laws and regulations have driven Morgan Stanley, a US investment banking firm, to block its interns in China from remotely accessing its virtual network. The recent border clash with China has increased the pressure on New Delhi to reduce the country’s dependence on Chinese solar goods. Various special interest groups have called for the US to sanction China’s CRRC after the US Pentagon labeled it as backed by the Chinese military, saying it represents a security threat. Despite calls for a boycott in the wake of India’s border clash with China, many are skeptical Chinese smartphones can be displaced from the India market. Japanese and British trade negotiators agree they will not require encryption keys or the localization of data. Japan’s Mizuho Financial Group faces growing shareholder pressure to stop financing coal projects. Japan helps Japanese companies move to Vietnam and also helps them shift production lines to Japan as well as various Southeast Asian countries. Myanmar gives three Japanese firms permission to build a mega-liquified natural gas power plant. Korea to spend billions to promote an innovation-based economy. European Union to restart review of the merger of Daewoo Shipbuilding & Marine Engineering and Hyundai Heavy Industries Holdings. Incheon Port Authority joins the United Nations Global Compact. The backlash against Huawei creates some openings for Samsung, though it is unclear if the Korean firm can exploit them.

China’s Ministry of Commerce (MOFCOM) announces two new negative lists will be put forth by end of June. China’s State Administration of Market Regulation probes foreign chipmakers because of concerns about rising memory chip prices. In response to charges regarding the debt burdens on participant countries flowing from the Belt and Road Initiative (BRI), China’s MOFCOM denies forcing projects on anyone and touts the benefits of its BRI. Development of controversial Chinese development around Sri Lanka’s Hambantota port progresses with selection of planning consultancy. British government and Hitachi agree to begin full-scale negotiations on potential construction of nuclear power plant in Wales after settling on cost sharing. Japan to offer generous loan terms to more businesses in order to reach 2020 target of USD $2.5 billion in infrastructure exports. Philippines authorities in midst of processing four letters of intent from South Korean firms representing potential $4.4 billion in energy investment. Suspicious payments of $2 billion by previous Najib government to China Petroleum Pipeline Bureau under investigation by Malaysian authorities. Indian federal investigators have filed criminal charges against AirAsia India, partly owned by Malaysia’s AirAsia, for “conspiracy” involving bribes to policymakers to change regulations.

German business association warns Chinese Communist Party request that foreign firms set up party cells may have adverse consequences. Chinese government advisor suggests Shanghai will create free-trade port represents that addresses the failings of the previous Shanghai Free Trade Zone initiative. Shanghai body asks IKEA to consider a new round of dresser and chest recalls. China’s National Development and Reform Commission promulgates list of penalties that Beijing may impose on firms that engage in illegal outward foreign direct investment (FDI) and related activities. Japanese Court to hear Toshiba Western Digital dispute on sale of flash memory division. SoftBank Group to invest USD $2.5 billion in India’s Flipkart as India’s anti-trust commission approves deal. Seoul and London sign memorandum of understanding easing approval process for Korea’s KEPCO to acquire Britain’s NuGen. Hyundai Engineering & Construction Co. and POSCO Daewoo Corp. win Uzbekistan power plant deal. Jakarta has not finalized plans yet for Freeport deal as parties continue to disagree about mine’s valuation. Indonesia’s state-owned utility company Pembangkitan Kawa Bali and Abu Dhabi Future Energy agree to build world’s largest floating photovoltaic power plant. Bangkok approves USD $22.6 billion infrastructure investment in Eastern Economic Corridor, paving the way for more foreign investment projects. Thai firm will build massive power plant in Myanmar despite international outrage over Myanmar’s abuse of Rohingya. Malaysia’s central bank approves larger China’s HNA Group ownership stake in Germany’s Deutsche Bank subsidiary despite initial concerns. Foreign brewing companies eagerly await sale of Vietnam’s state-owned brewer Sabeco. Foreign M&As of Vietnamese business entities rising as Hanoi increases foreign ownership limits and privatizes state-owned enterprises.

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.