NEC

MNCs in the News-2020 December

China’s National Development and Reform Commission (NDRC) and Ministry of Commerce (MOFCOM) release revised 2020 catalog of encouraged industries for foreign direct investment (FDI). China’s NDRC issues rules relating to FDI national security reviews. China’s Standing Committee of National People’s Congress considering amendment to criminal law that would increase prison terms for intellectual property rights (IPR) crimes. Chinese outward FDI (OFDI) in Latin America in 2020 a bright spot versus Chinese OFDI (COFDI) in other regions like Europe. China’s Ministry of Foreign Affairs stresses at news briefing that FDI in Belt and Road Initiative (BRI) and CPEC has not declined with many projects showing good results despite Covid-19. United States (US) Congress to provide billions of dollars to fund removal of ZTE and Huawei equipment from US telecommunication carriers’ systems. Japan not succeeding in attracting foreign financial firms due to tax, red tape, language barriers, and other factors. Japan 5G players gain potential new openings due to global crackdown on Chinese companies such as Huawei and ZTE. United Kingdom (UK) and European Union (EU) post-Brexit deal may not prevent Japanese carmakers from leaving the UK. Japanese group to supply $1.8 billion for coal-fired power plant in Vietnam despite complaints about the environmental impact of the plant. Korea Fair Trade Commission (KFTC) will administer a survey to Google Play Store users to accelerate its review of Google’s plan to increase application transactions to 30 percent. Hyundai Heavy Industries Holdings receives Chinese government approval for its $1.8 billion acquisition of Daewoo Shipbuilding and Marine Engineering. Korea electric vehicle (EV) battery makers move to diversify away from China, turning to other countries and local firms for raw materials and components. LG Group has signed a major investment deal with Indonesia that would facilitate its access to EV battery raw materials and product.

MNCs in the News-2020 June

China Ministry of Commerce data shows respectable year-over-year inward foreign direct investment growth (FDI) in April and May, with some hoping for continued growth in the 2nd half of the year. China’s new development initiatives for its Western regions are not succeeding in attracting inward FDI (IFDI) for both business and political reasons. The China Securities Regulatory Commission will look to allow big Chinese commercial banks into investment banking so they can help China fend off the growing challenge from foreign investment banking firms. The United States (US) Pentagon has submitted a list of 20 Chinese companies with ties to China’s military that operate “‘directly or indirectly’” in the US. The Indian government bans almost 5 dozen mobile apps. India’s state government of Maharashtra freezes investment proposals from three Chinese businesses. Japan adds select medical fields to the list of areas requiring special FDI reviews. Japan moves to allocate funds to domestic firms so they have a greater chance to participate in the 5G wireless technology race. Japan’s Kirin Holding will commission an audit of its Burmese joint venture (JV) partner over allegations its JV channels funds to Myanmar’s military. Japan is contemplating Indonesian proposals that Japan participate in its Jakarta-Bandung high-speed rail which is delayed and overbudget. The Korean Communication Commission announces that Google will revise select YouTube subscription practices following a large fine and negative ruling. South Korea outward FDI, which favors North America, plunged dramatically in March. Potential for Doosan Heavy Industries & Construction to start its Indonesian Jawa Thermal Power Plant Construction Project increases after project based second feasibility study. US Presidential election increases pressure on Korean carmakers and tiremakers to invest more in the US.

MNCs in the News-2020-04-24

According to China’s Ministry of Commerce (MOFCOM), more than 1000 companies including many from the United States (US), Germany, and Japan have registered from the 2020 November China International Import Expo. MOFCOM reports that China’s non-financial outward foreign direct investment (FDI) declined less than 1 percent year-over-year when compared to the 1st quarter of 2019. Many interpreted a recent India notification indicating special government scrutiny of FDI from bordering countries as directed against China as a time when Indian companies might be vulnerable. Canyon Bridge, the Chinese owner of the United Kingdom (UK)’s semiconductor designer Imagination Technologies, says the company’s headquarters will stay in the UK. Japan will add the medical sector to the list of sectors where FDI is subject to review pursuant to the Foreign Exchange and Foreign Trade Control Law. Japan’s NEC wins major deal to supply observation satellite to Vietnam. Korea’s Fair Trade Commission needs more time to review Delivery Hero’s deal to acquire Woowa Brothers due to concerns about the anti-competitive effects of the deal. Korea’s GS Engineering & Construction concludes a roughly $450 million deal with the Singapore’s Land Transport Authority to build an Integrated Train Testing Center.

MNCs in the News-2019-06-07

China’s Ministry of Commerce (MOFCOM) reports United States (US) tariffs on Chinese goods have not significantly affected the country’s flows of inward foreign direct investment (FDI). MOFCOM announces China will blacklist “unreliable” foreign businesses which violate market rules, take discriminatory measures hurting Chinese business rights and interests, or threaten China’s national security. China’s plan to build a $1.9 billion light-railway system in Kazakhstan has stalled as China Development Bank cuts off funding due to possible corruption problems. China keeps open non-money-making Vietnam-China Economic and Trade Cooperation Park (VCEP) because of VCEP’s contribution to better image of Chinese FDI. Japanese and other multinational corporations call for more standardized and clearer rules and greater freedom for data transfer and storage. Airbnb experiences revival in Japan after new regulations caused tens of thousands of listers to check-out. Recent arrests of several Samsung Electronics senior executives for an alleged accounting fraud may distract Samsung from taking advantage of the woes of major competitor Huawei. In light of its recent retreat from overseas ventures, Korea National Oil Corp.’s announcement it planned to invest roughly USD $253 million in the UAE in an oil development project has caused controversy.