state owned enterprises

MNCs in the News-2017-08-18

China takes steps/promises measures to draw in more foreign direct investment (FDI). China’s State Council details a slew of initiatives to increase greater inward FDI (IFDI) as well as to foster specific types of IFDI. Donald Trump signs executive order authorizing US Trade Representative to decide whether or not to investigate China’s theft of American intellectual property. China’s Ministry of Commerce reports small drop in IFDI over the first seven months of 2017 year over year (YOY) while outward FDI drops dramatically over the first seven months of 2017 YOY. The Philippines is looking to Japan and China to finance investments in energy and power generation projects worth over USD $135 billion. Mitsubishi UFJ Financial Group Inc. to expand operations in Saudi Arabia to support Saudi initiatives to reduce reliance on oil. Kumho Tire Co. to be bought out by its Chinese competitor Qingdao Doublestar Co. for USD $857 million after South Korean state-owned development bank sells its stake to Doublestar. Hyundai to promote Indonesia as Southeast Asian production base because of, among other things, the ASEAN Trade in Goods Agreement will remove car import duties in 2018. Indonesia and Vietnam to boost investment activity following 7th Indonesia-Vietnam Joint Commission on Economic, Science, and Technical Cooperation. Facebook opens full office in Indonesia due to tightening regulations on foreign Internet firms. Recent report touts that Malaysia’s strategic location and competitive position make it attractive for foreign investment. US deepening investigation into money stolen from Malaysian state investment fund allegedly used to obtain around USD $1.7 billion in real estate, jewelry and art.

MNCs in the News-2017-08-04

Donald Trump administration contemplates using Section 301 of the 1974 Trade Act to challenge China’s technology transfer and intellectual property right protection practices. Foreign businesses increasingly fret about the burdens to be flowing from China’s rejection of non-approved virtual private networks (VPNs) and other data controls/restrictions. China’s Ministry of Finance issues a guideline to limit risk of overseas investments by state-owned enterprises (SOEs). Foxconn Technology Group announces major planned investment in the United States (US) to do R&D work relating to self-driving vehicles perhaps due to Trump’s efforts to bring more manufacturing to the US. Workers at Nissan’s Mississippi factory vote on whether to join the United Auto Workers. Japan’s JFE Holdings Inc. considers further investment into India’s JSW Steel Ltd as a way to profit from increased steel demand potentially flowing from Indian Prime Minister Modi’s economic plans. South Korean firms struggle in the Middle East due to government indifference and rising political tensions. South Korea’s LA Cable & System signs USD $195 million contract with Qatar’s state owned utilities firm. Jakarta focuses on simplifying investment application process for foreign firms seeking investment licenses. Indonesia’s government will start taking bids in September for construction of six massive geothermal power plants. Thailand and Australia discuss revising the Thailand-Australia Free Trade Agreement to increase investment and trade. Indian Oil Corp Ltd in talks with partners to search for cheaper location for Pacific Northwest LNG terminal after recent withdrawal of Petronas. South Korea’s Lotte signs Eco-Smart city development contract with Vietnam’s People’s Committee of Ho Chi Minh City. Vietnam’s Prime Minister confirms that creation of Vietnam’s first three special economic zones would enjoy special rules to attract greater investment.

MNCs in the News-2017-01-20

China moves to lower restrictions on foreign investment in various financial sectors including banking, insurance, and credit ratings. China’s outward direct investment (ODI) hits new high in 2016 with a significant amount going into manufacturing and information technology. China’s State-owned Asset Supervision and Administration Commission says it will release a negative list for two categories of outward foreign investment by state-owned enterprises (SOEs). Toyota Motor and Nissan Motor. Corp. say they will continue to manufacture cars and auto parts in the United Kingdom despite Prime Minister Theresa May’s plans for full Brexit. It’s “light out” for multi-billion dollar Samsung Engineering power and desalination project in Saudi Arabia. Hyundai will invest USD $3.1 billion in the United States (US) over the next five years in response to US President Donald Trump’s threats to renegotiate the North American Free Trade Agreement (NAFTA). Indonesia Finance Minister cites the herd mentality as the basis for her fighting JP Morgan’s downgrade of her country’s investment rating. Malaysian Prime Minister Najib Razak accuses former Prime Minister Dr. Mahatir Mohamad of slander over criticism of Johor project. Vietnam expects Japan to become its top investor. Vietnam’s Party Secretary encourage Chinese firms to bring advanced technology to his country.

Dr. Jean-Marc F. Blanchard's picture

China’s Capital Fright and its (Ir)Relevance for Chinese Outward FDI

Over the past year or so, China’s foreign exchange reserves have been “plummeting,” falling several hundred billion (US) dollars as a result of Chinese investors pouring massive sums of money into foreign assets such as real estate and overseas stock markets and Chinese companies undertaking record levels of outward foreign direct investment (OF

MNCs in the News-2015-07-31

Mercedes-Benz blows out over faulty fuses. China works to boost mixed-ownership of state-owned enterprises (SOEs), giving new investment opportunities to foreign investors. China’s GSR Ventures to raise USD $5 billion to support China’s quest to acquire more technology. Korea Economic Research Institute head encourages the government to take anti-hedge fund measures. Indonesia grants PT Freeport Indonesia export license, deeming they are making progress in developing their local smelter capability. Widodo lobbies China to invest more and help Indonesia become an “Asian production base.” Chinese Consul-General promises hundreds of Chinese SOEs to invest in West Sumatra. Taiwan Investment Commission approves USD $2.78 billion of outbound investment by Taiwan firms. Vietnam pushes its firms to build up their domestic and international brand names.

Dr. Jean-Marc F. Blanchard's picture

Chi-Cham USA! The Potentialities and Limits of PRC Company Business Associations in the US

Chinese companies from the People’s Republic of China in the US have been organizing to promote their interests as shown by the China General Chamber of Commerce-USA (CGCC)’s expansion. The rise of the CGCC mirrors the development of foreign business associations in China such as the American Chambers of Commerce (AmCham China). The CGCC’s mission is to “promote the brand of Chinese companies collectively, protect their legal rights, and advocate for fairer regulation” and to serve a bridging function.