SFTZ

Dr. Jean-Marc F. Blanchard's picture

The Free Trade Zone that Ate Shanghai

The Shanghai Free Trade Zone (SFTZ) came into being in 2013. Since its birth, it has scored accomplishments such as faster customs processing times and easier business establishment.

MNCs in the News-2017-12-01

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.

MNCs in the News-2017-11-17

China’s Ministry of Commerce (MOFCOM) reports slow growth in inward foreign direct investment (FDI) over the first 10 months of 2017. China dangles prospect of freer car ventures for foreign investors if they meet certain conditions regarding where they invest and what they produce. To meet government requirements, Amazon Web Services sells the physical assets for its China cloud business to local Chinese partner. MOFCOM announces plunge in growth of outward FDI (OFDI) between January and October 2017, linked to its effort to control irrational investment. Troubled Toshiba to sell TV and visual solutions subsidiary to China’s Hisense to obtain cash needed to deal with the fallout of regulatory changes that bankrupted its American nuclear business. SoftBank to invest up to USD $25 billion in Saudi Arabia to support Crown Prince’s agenda. Hyundai sent Vice Chairman to US to develop response to Trump Administration’s desire to revise Korean-US Free Trade Agreement. Hyundai confirmed expansion of its Alabama plant ahead of KORUS FTA negotiations. Tadmax Resources partnering with Korea’s state-owned Korea Electric Power Corp to build USD $840 million power plant in Malaysia. Malaysia’s state-owned Tenaga Nasional Bhd and Indonesian state-owned utility company PT PLN to build coal-fired power plant in Kalimantan.

MNCs in the News-2016-02-12

Shanghai Zhangjiang National Innovation Zone allows new possibilities for foreign pharmaceutical companies to focus on their core competencies. Sharp’s acceptance of a buyout bid from Foxxconn suggests Japan really may start to welcome more foreign direct investment (FDI). Japan’s Mitsubishi willing to do all work in Australia to win major Australian next generation submarine contract. Gaeseong Industrial Complex falls victim to tit-for-tat between South and North Korea over the latter’s missile and nuclear tests. Daewoo Engineering & Construction wins project commissioned by Indian state-run enterprise at a time of a special strategic partnership between India and South Korea. Indonesia to undertake major FDI liberalization. Indonesian filmmakers cheer opening of the film industry and cinema sector to foreign investment. Indonesian government plans to provide legal guarantee to PT Kereta Cepat Indonesia China (KCIC) for Indonesia’s high-speed rail project. Thailand’s Board of Investment (BOI) touts the successes of its new investment promotion policy and cluster-promotion scheme. Thailand’s Commerce Ministry aims to bolster the overseas investment capabilities of Thai small- and medium-enterprises. Malaysia sees greater Chinese inward FDI in the future. European Chamber of Commerce expresses its hopes for legal and policy changes during the next Filipino presidency.

MNCs in the News-2015-10-23

China announces plan to role out a Negative List in various regions over the next two years. Apple powers up its renewable energy initiatives in China. GlaxoSmithKline CEO Andrew Witty tells official Chinese media that his company has put in place systems to ensure no bribes are paid to doctors. Xi Jinping’s visit to the U.K. leads to promise of massive Chinese investment in the Hinkley nuclear power plant. Alibaba reaches out to U.S. Trade Representative Office to highlight its efforts to fight the sale of counterfeit goods on its websites. Indonesia expresses confidence that realized investment for 2015 will exceed government goals. Falling investment in labor intensive sectors in Indonesian prompts investment authorities to press government to liberalize tax allowance policies. Thai firms, including medium-sized enterprises, increasingly engage in outward investment, especially in neighboring countries. Malaysian MPs call for legislation similar to Singapore’s that would allow for the government to punish companies associated with massively polluting Indonesia forest fires

MNCs in the News-2015-09-25

China announces plan to take its “Negative List” nationwide by 2018. Top Chinese leaders stress China’s continuing interest in attracting foreign direct investment. Analysts see Chinese President Xi Jinping’s meetings with hard-pressed American tech executives as a ploy to fend off US commercial espionage sanctions. Cisco moves to strike partnership with Chinese server maker Inspur in order to regain lost ground in China. Microsoft strikes partnerships with politically connected Chinese firms to bolster its business opportunities in China. Boeing strikes multi-billion dollar deal with Chinese firms and will build 737 completion center in China. US Chamber of Commerce executive expresses discontent with China’s new offer regarding a bilateral investment treaty (BIT). Chinese premier Li Keqiang encourages great outward investment and activity by Chinese SOEs. British Chancellor of the Exchequer George Osborne pushes greater Chinese nuclear investment in the U.K. China and France agree to set up joint investment fund to target third countries. Korean government will probe whether Volkswagen and Audi cars sold in Korea have software that manipulates emissions data. Indonesia continues to strike investment and financial deals with China despite cancellation of high-speed rail plan. Indonesian government plans to give investors more opportunities in downstream energy sector. Foreign firms struggle with Indonesia’s ban on export of raw mineral ores. Thailand moves to address demands of Japanese SMEs.