SOEs

MNCs in the News-2021-May

According to China Ministry of Commerce statistics, China’s utilized foreign direct investment (FDI) over the 1st four months of 2021 showed impressive growth. In a recent report, the British Chamber of Commerce in China highlighted China’s data rules and data flow restrictions as new areas of concern on top of continuing issues like market access and the lack of a level playing field. The China Banking and Insurance Regulatory Commission has given the United States (US)’s Goldman Sachs approval to enter into a wealth management joint venture (JV). In the wake of new data rules and various image problems, Tesla announced the construction of a new data center in Shanghai to store information on gathered on local users and their vehicles. China’s initiation of economic sanctions against various European Union (EU) officials in response to EU sanctions against China has raised questions about whether or not the ratification process for the EU-China Comprehensive Agreement on Investment will move forward. China’s Landbridge rejected concerns that its 99-year lease of Australia’s Darwin port presents any kind of a national security threat. A Japanese Liberal Democratic Party group investigating methods to enhance Japan’s economic security has proposed the creation of a public-private body to develop solutions for public policy issues like supply chain resiliency. An official Chinese media piece warned various prominent Japanese apparel companies’ decisions to stop using Xinjiang cotton might cause them to lose business in China. Japanese export restrictions against South Korea are driving Japanese semiconductor material companies to increase their activities and in South Korea as a way to circumvent Tokyo’s economic sanctions. During Korean President Moon Jae-in’s summit with US President Joseph Biden, Korean companies proposed massive investments in manufacturing plants

Executive Director Jean-Marc F. Blanchard interviewed for The Diplomat article about US-China Foreign Direct Investment Dynamics

Dr. Jean-Marc F. Blanchard, Founding Executive Director of the Mr. & Mrs. S.H. Wong Center for the Study of Multinational Corporations, was interviewed for an article in the The Diplomat. Dr. Blanchard offered his thoughts about the state of China-United States (US) foreign direct investment (FDI) and how various dynamics in China and the US and between the two countries might affect FDI going forward.

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The Digital Silk Road, part I-Cloudy Networked World Calling

Dr. Jean-Marc F. Blanchard
Posted: Apr 03, 2021

China’s Digital Silk Road (DSR), which is part of the larger Belt and Road Initiative (BRI), came into being in 2015 and accelerated after 2017. Broadly speaking, the DSR promotes connectivity in the information and communication technology (ICT) space and encompasses projects relating to artificial intelligence, cloud computing, fintech (e-payments), smart and safe cities, and telecommunications. It is not entirely clear how many countries are participating in the DSR, though it has been reported that 16 countries have signed DSR Memorandums of Understanding (MoUs) with China.

MNCs in the News-2020 October

China’s Ministry of Commerce (MOFCOM) says that inward foreign direct investment (FDI) increased 5.2 percent for the first nine months of 2020 when compared to the same period the prior year. China’s National People’s Congress Standing Committee approves revised export control law. Germany says reciprocity needed if there is to be a European Union-China investment agreement and notes barriers facing European companies in China remain too high. State-owned Assets Supervision and Administration Commission (SASAC) of the State Council points out Central State-owned Enterprises (SOEs) contribution to China and the realization of is 13rd Five-Year Plan. Sweden bans Huawei and ZTE from its core 5G mobile networks. Italy prevents Fastweb, the Italian unit of Swisscom, from using Huawei equipment in its core network. Japan will not participate in US initiative to block Chinese companies from participating in its telecommunications systems. Japan’s NEC Corp. will support United Kingdom government in its effort to develop a next generation 5G wireless network. Consortium led by Japan’s Sumitomo Corp. will develop massive $4.29 billion smart-city project in Hanoi. Mitsubishi Motors will work with Thailand agency to develop system that would allow electric vehicle batteries to power homes. Korean Fair Trade Commission to set up plan to investigate Google for potential abuses of its mobile operating system. Seoul to require Korea Resources Corp. to sell off certain assets to improve its financial condition. Samsung Fire & Marine and Samsung Life face criticisms for support of coal projects and investments through project financing, bonds, and insurance underwriting. Korea’s Doosan Heavy Industries & Construction signs $2.2 billion contract with Vietnam’s VAPCO for massive coal power plant.

MNCs in the News-2019-09-27

At an event in the United States (US), Chinese Foreign Minister Wang Yi stressed China’s opening, the value of its new foreign investment law, and its improving negative list. Chinese analysts criticized a European Chamber of Commerce in China report for blaming the woes of European firms in China on China’s state-owned enterprises (SOEs) rather than the highly competitive business environment in China. The joint investment fund between China’s China Investment Corporation and US bank Goldman Sachs has only recently made its first investment due to problematic the problematic political environment. China Power International Holdings concludes memorandum of understanding (MoU) with Norway’s SOE energy producer Equinor for cooperation in renewable energy. Japan concludes MoU with European Union calling for cooperation on infrastructure, transport, and digital project and the need for projects to be environmentally and fiscally sustainable. Japan and Indonesia sign a deal for a more than USD $4.2 billion medium speed train project which is partially politically motivated. Korea’s trade war with Japan is fueling the development of domestic supply chains and the reshoring of Korean firms. Concurrent with Korean President Moon Jae-In’s visit to the US many Korean companies announced their investments in the US.

MNCs in the News-2019-06-21

China Premier Li Keqiang works to lure foreign direct investment (FDI) during the Global CEO Council in Beijing. In 2018, the deal value of European mergers and acquisitions (M&A) activity in China soared by 856 percent to USD $9.94 billion. European Union (EU)-China talks on a Comprehensive Agreement on Investment and China’s negative list show better progress than expected. Brazilian Vice President welcomes Chinese FDI in infrastructure as long as it creates jobs and respects Brazilian rules. Around the time of the G-20, French President Emmanuel Macron will discuss issues about the Renault-Nissan alliance with Japanese Prime Minister Abe Shinzo. Numerous Japanese corporate subsidiaries in the United States have voiced opposition to Donald Trump’s proposal to slap tariffs of 25 percent on another $300 billion of Chinese products. Tokyo has requested Seoul to establish an arbitration panel consisting of representatives selected by other countries to help deal with their wartime forced labor compensation dispute. Seoul prepared to block a deal that would sell Taihan Electric Wire to a Chinese company because it deems Taihan’s high-voltage cable technologies a “‘national core technology.’”

MNCs in the News-2019-05-10

The ongoing China-United States (US) trade war coupled with other economic and political factors drives more firms to consider other locations besides China. China moves to take more steps to protect intellectual property (IP), partly to assuage the concerns of foreign investors. China poured record amounts of investment into US start-ups last year despite Sino-American tensions, but there are dark clouds on the horizon especially in regard to investment screening. Security and other concerns lead US Federal Communications Commission hangs up on China Mobile’s effort to operate and offer service in the US. Not a single European country has joined Washington’s call to boycott China’s Huawei. Japanese banks move to improve their anti-money laundering and terrorist financing practices so as to increase chances of good Financial Action Task Force review. Japanese foreign direct investment in the US surges for political and economic reasons, with some “red states” seemingly benefiting from the former. Seoul police investigate if BMW Korea’s Chairman covered up automobile defects. Lotte Chemical launches USD $3.1 billion ethylene cracker complex in Louisiana with strong political support from Korea and the US.

MNCs in the news-2019-05-03

Inward foreign direct investment (FDI) into China shows decent growth in the first quarter of 2019 with United States (US) FDI showing particularly strong growth. China announces moves to open its banking and financial sectors further. The United Arab Emirates (UAE)’s strategic location allows it to snare USD $3.4 billion Belt and Road Initiative (BRI) deals. Cambodia throws the dice for more China FDI deals while shifting further away from the European Union (EU). Japan ponders proposing rules to increase transparency and responsible financing for infrastructure investment in developing countries during the upcoming Group of 20 (G-20) summit. Lawyers representing South Koreans forced to labor for Japanese corporations during World War II requested a court to sell assets seized from relevant Japanese firms. South Korea Prime Minister Lee Nak-yon lobbies Kuwait to allow more South Korean companies to participate in infrastructure project in the country.

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Belt and Road Forum, II, part I-Cleaning Up the House

Dr. Jean-Marc F. Blanchard
Posted: May 01, 2019

At the recent Belt and Road Forum, Chinese President Xi Jinping stressed China would adopt a zero-tolerance policy towards corruption regarding its Belt and Road Initiative (BRI).

MNCs in the News-2019-04-05

Chinese government shines light on subnational units that are making it difficult for foreign direct investment (FDI). China lubricating way for foreign energy giants to enter its petrochemical sector. Beijing is drafting rules to identify a list of BRI projects officially acknowledged by the Chinese government. China’s expansion in Latin America via the BRI raises US anxieties. British officials and senior labor union members will travel to Japan to press Honda to review its decision to shut down its United Kingdom (UK) Swindon plant. Toshiba experiencing delays in securing approval from the Committee on Foreign Investment in the United States (CFIUS) to sell its liquefied natural gas (LNG) business to a Chinese company. Korea Hydro & Nuclear Power (KHNP) risks bid to become long-term maintenance service provider of the United Arab Emirates (UAE) Emirates Nuclear Energy Corporation’s (ENEC) Barakah Nuclear Energy Plant because of its unilateral decision to replace plant’s workforce. Responding to a Saudi Arabian Cabinet member’s interview reporting “‘advanced’” talks, Hyundai Motor denied plans to build a new manufacturing plant in Saudi Arabia.

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