NDRC

MNCs in the News-2017-09-15

China’s potentially massive electric car market and regulatory pressure charge up foreign auto firms’ willingness to share technology and invest in the sector. China plans to blacklist and potentially punish blacklisted Chinese outward investors that become “discreditable.” National security concerns lead American President Donald Trump to crunch Lattice chip’s sale to Chinese buyer. The European Commission has come up with a pan-European measure to vet Chinese investments in the European Union (EU). Thailand’s military junta assures Japanese investors proposed plan for USD $45 billion injection into Thailand’s Eastern Economic Corridor will go ahead regardless of the results of the next election. Suzuki Motor partnering with Toshiba and Denso to invest in electric vehicle facilities in India in line with the latter’s “Make in India” initiative and increasing demand for green mobility. Hyundai releases plans for electric vehicle manufacturing plant in India after Indian government pledges to ban sales of non-EV cars by 2030. South Korean retail giant Lotte Group has begun making plans to sell its China shops due to politically-related pressures in China. Asian Development Bank to support Indonesia’s energy sector. China’s expanded investment in Thailand raises local anxieties. The divestment of numerous Vietnamese SOEs has problematic features that discourage foreign investment. Southern Vietnamese province promoting investment in several industrial sectors through policy reforms and other initiatives.

MNCs in the News-2017-07-14

Chinese inward foreign direct investment (FDI) in June shows slow growth year-over-year (YOY) while the first half of 2017 showed a very slight decline in inward FDI (IFDI) YOY. Twenty percent of American firms in Shanghai plan to redirect their investment elsewhere. China’s non-financial outward FDI (OFDI) over the first six months of 2017 YOY plummets due to capital controls, tight loan supervision, and overseas factors. Almost a dozen members of American Congress ask US Securities and Exchange Commission to block Chinese-led consortium from buying Chicago Stock Exchange. At a recent conference, Chinese officials tout dramatic future growth in Chinese OFDI and moneys supplied for One Belt, One Road projects. Japan External Trade Organization and India’s provincial governments increase investment cooperation for special industrial zones to meet expansion needs of Japanese firms. Toshiba still negotiating with bidders, as company strives to fulfill government demand to keep chip technology under domestic ownership. SK Group moving to aggressively increase relations with Chinese officials. China considers investment to connect Thailand's Eastern Economic Corridor with Kunming's special economic zone. Malaysian financier central figure in probes related to plundered Malaysian state development fund 1Malaysian Development Bhd. Vietnamese government gradually opens its transportation and logistics sector, providing investment opportunities for foreign firms.

MNCs in the News-2017-06-30

China’s Ministry of Commerce (MOFCOM) plans to create database with information on foreign investors. China’s MOFCOM and National Development and Reform Commission role out first nationwide negative list, which has 30 fewer restricted and prohibited sectors than the 2015 list. China’s Leading Group for Comprehensive Reform calls for more statistics on and the better monitoring of Chinese outward foreign direct investment (OFDI). Despite Brexit, many expect Chinese firms will remain interested in investing in the United Kingdom (UK). Takata files for bankruptcy protection in the US and Japan due to massive recall, with viable operations bought by Chinese-owned Key Safety Systems. Korea Economic Research Institute urges Korean government to exempt taxes on income earned by South Korean multinationals abroad to encourage capital repatriation. Samsung joins increasing list of international firms boosting employment in the US in line with US President Donald Trump’s push for more manufacturing jobs. Jakarta plans to revise its Negative Investment List to encourage more foreign investment. World Bank states that foreign investment in Indonesia is still too low and recommends various policy changes. Minister says Malaysia’s government constantly striving to attract foreign investment. Former Bank Negara Malaysia governor says Malaysians should view China’s increasing investment rationally to evaluate benefits to country.

MNCs in the News-2017-03-24

The Information Technology & Innovation Foundation (United States) has called for global action in the face of China’s Made in China 2025 plan. Chinese Ministry of Industry and Information Technology (MIIT) official defends his country’s “Made in China 2025” plan. China’s Food and Drug Administration issues draft policy that would allow foreign drugs to be tested and approved much more quickly in China. During a visit to China, Apple CEO Tim Cook announces Apple will open new R&D centers in Shanghai and Suzhou. Microsoft touts the development of a China-specific Windows 10 operating system that is “secure and controllable.” Chinese government agencies are working on a policy that would specify those sectors where outward foreign direct investment (FDI) was encouraged and those where it was restricted. Tokyo says it does not plan to support troubled Toshiba and that it will share information with Washington about Toshiba and its bankrupt US nuclear division. Japanese and Russian officials meet to discuss ways to jointly develop the islands off Hokkaido they both claim. South Korea asks the World Trade Organization to review Chinese sanctions against Korean companies relating to its deployment of THAAD. South Korea’s SK Engineering & Constructions partners with Turkey’s UNIT International to win multi-billion dollar power plant construction project in Iran. Energy firms urge Indonesian government to enhance its policies in the upstream and downstream oil and gas sectors.

MNCs in News-2016-12-30

China plans to open various financial services sectors to foreign investors but details and timeframes remain unclear. Regulatory pressures inside and outside China may slow or reverse somewhat the pace of Chinese outward foreign direct investment (OFDI). Conditions at home and abroad plus drags on Chinese OFDI may lead Japan to become a more prominent outward investor in 2017. Takata Corp. may settle the United States (US) Department of Justice criminal case against it. Korea’s Fair Trade Commission slaps USD $900 million fine on Qualcomm for abusing its market power. Deal by Malaysian state owned firm for a palm oil project in Indonesia raises political concerns within Malaysia as well as some environmental and labor concerns.

MNCs in the News-2016-12-09

China’s Ministry of Commerce (MOFCOM) and National Development and Reform Commission (NDRC) have reduced the number of sectors on its foreign investment catalog restricted and prohibited lists by more than 30 percent. China’s State Administration of Foreign Exchange (SAFE) has denied there are restrictions on foreign firms' crossborder profit transfers. The NDRC has imposed a more than $17 million fine on Medtronic for violating China’s anti-monopoly laws. China’s national cybersecurity standards body, The Technical Committee 260, ignores foreign company pleas about its technical standards for operating systems, microprocessors, and office software. China’s concerns about capital flight and money laundering led it to strengthen its review of overseas deals exceeding USD $10 billion and in an overseas entity unrelated to the investor’s core business. China launches $22 billion fund to support overseas investments by Chinese companies. Chinese investment in Europe soars over 2015 totals. Softbank owner Masayoshi Son promises Donald Trump he will make a massive investment in the US. South Korea’s largest steel pipe producer buys two oil country tubular goods (OCTG) related facilitates in the US to escape possible US trade barriers. Indonesia’s Ambassador to Singapore encourages greater investment from Singapore, Indonesia’s largest foreign investor. Chinese investment in Indonesia soars, helping with infrastructure development, but raising some concerns. Chinese delegation from Zhejiang province to travel to Indonesia to assess the political risk environment in the country. Foreign companies in Thailand ask Prime Minister to update its laws pertaining to foreign workers. Official Thai delegation to China hopes to attract more investment, reinforce the relationship, and increase cooperation on China’s One Belt, One Road initiative. Malaysian Prime Minister Najib Razak rejected the notion he was trading the country’s sovereignty for foreign investment. Vietnam’s FDI inflows reach record highs and Vietnam promises steps to attract more investment.

MNCs in the News-2016-07-15

China’s State Administration of Taxation has issued new guidelines for evaluating domestic and foreign companies’ tax performance. Under pressure, IKEA agrees to massive recall of Malm products in China. Anhui Jianghuai Automobile Co. stops producing the iEV6s sport utility vehicle featuring Samsung SDI’s batteries because the Chinese government did not approve the Samsung SDI battery possibly to retaliate against South Korea’s decision to accept the THAAD system. American Enterprise Institute analysis finds large percentages of Chinese outward foreign direct investment (FDI) in 2016 are for mergers & acquisitions, by private firms, and going to the US. China to make good on its promise to invest $2.21 billion in European Fund for Strategic Investments. For some, Chinese investments in film sector raise questions about China’s impact on film distribution and content. After Brexit, Japanese car makers forced to revisit the logic of their investments in the United Kingdom. Korea’s Ministry of Environment will impose a series of harsh penalties against Volkswagen for the latter’s fraud regarding noise and gas emission data. Korea’s Fair Trade Commission is likely to impose a nearly $900 million fine on Qualcomm for the latter’s abusive technology licensing practices. Indonesian government seeks billions of dollars in investment to help develop tourist zones. Vietnamese government targets greater tourism sector investment. Vietnam seeks foreign investment to plug it highway system funding gap.

MNCs in the News-2016-05-13

Inward FDI into China between January and April rises almost 5 percent over the same period last year. Chinese Premier Li Keqiang touts China’s plan to take measures to encourage greater inward foreign direct investment. China is investigating foreign and domestic drug firms for possible violations of competition laws and regulations. Foreign pharmaceutical firms in China take action to offset profit pressures flowing from government actions. Apple invests $1 billion in Didi Chuxing, following various adverse actions against it in China. Beijing Municipal Court denies Zhujiang Beverage the ability to use the Facebook name on its products. China outward deals in 2016 to date already have topped the figures for 2015. Some Chinese state-owned enterprises are adopting the sovereign immunity defense to escape legal liability in the U.S. SK Group explores cooperation possibilities with Kuwaiti government and businesses officials visiting Seoul. Using investor state dispute measures Hanocal Holdings is suing the Korean government for compensation over excess taxes. Indonesian President urges his Cabinet to do more to improve the ease of doing business and to garner an investment grade rating from Standard & Poor’s. Indonesian Investment Coordinating Board Chairman Franky Sibarani touts his country’s reforms at the HSBC Economic Outlook 2016 conference. Indonesia President Joko “Jokowi” Widodo meets with Chinese State Council Yang Jiechi to discuss investment and trade cooperation. Vietnam calls on foreign firms to contribute more to Vietnam’s economic development.

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-2016-01-01

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.

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