Taiwan

Dr. Jean-Marc F. Blanchard's picture

Mapping out Your Maps: Gaps over Territorial and Maritime Views

Recently, GAP, an American apparel firm, caught fire in China because one of its t-shirts selling in Canada had a map of China that did not include Taiwan or South Tibet. This incident follows several other ones involving well-known multinational companies (MNCs) such as Germany’s Audi and Daimler Benz, the US’s Marriott International, Delta and United Airlines, and Medtronix, and Spain’s Zara.

MNCs in the News-2017-12-22

China National Development and Reform Commission (NDRC) official says Code of Conduct and Blacklist governing outward foreign direct investment (FDI) by private firms on the horizon. China’s outward FDI (OFDI) Code of Conduct calls for no bribery, environmental impact assessments, and respect for Chinese and host-country rules. Britain’s nuclear regulator approves Hitachi’s plans for advanced boiling water nuclear reactor. Financially troubled, state-backed Japan Display looking to attract over USD $1.8 billion in Chinese investment. Lotte Group shifting investment from China to Indonesia as part of Southern Eastern Policy after domestic Chinese conditions continue to cause company financial difficulties. South Korean and Chinese ministers reach agreement to lift retaliatory measures against Korean battery makers operating in China.

MNCs in the News-2017-09-29

China’s National Development and Reform Commission (NDRC) notes possibility China may expand its negative list approach nationwide as early as 2018. State-owned Assets Supervision and Administration Commission (SASAC) representatives encourage foreign investors to partake in China’s mixed-ownership reform of state-owned enterprises (SOEs). At the World Trade Organization (WTO), the United States (US) asks China to hold off implementing its cybersecurity law. US Committee on Foreign Investment in the United States opposition torpedoes Chinese bid to take a 10 percent stake in Dutch mapping company. Kobe Steel Ltd and US Steel Corp. to launch US joint venture to produce steel needed to build cars that meet their respective governments’ tightening emissions standards. Sumitomo has invested in Taiwanese electric scooter maker Gogoro to tap Gogoro’s advanced electronic battery technologies which are in increasing demand due to rising environmental standards. Unilever acquires Carver Korea as Korean makeup brand weakens due to declining sales in China resulting from THAAD tensions. Despite suffering from China’s THAAD related sanctions, Hyundai opens big data center in China to tap Chinese government’s promotion of connected cars. Indonesia's Transportation Ministry opens 12 infrastructure projects worth a total of USD $3 billion to foreign investors. Indonesia’s Indika Energy raises stake in large local coal producer after forced Freeport-McMorRan divesture and new Indonesian government policies drive Korea’s Samtan to reduce its stake in the country. Vietnam’s Ministry of Finance says equitisation progress of state-owned enterprises so far disappointing. World Bank and Vietnam’s Ministry of Industry and Trade collaborate to implement solar projects pilot auction program.

MNCs in the News-2017-09-08

The China Insurance Regulatory Commission states China is moving to increase foreign involvement in the insurance sector. In conjunction with the latest BRICs meeting, State Grid of China touts its contribution to and presence in Brazil. Kawasaki Heavy Industries competing for USD $3.2 billion contract to build subway cars from New York’s state-run Metropolitan Transpiration Authority. Foxconn joins bidding process for Japanese chipmaker Toshiba’s USD $19.5 billion NAND memory technology. North Korea’s missile launch explodes USD $1.5 billion South Korea’s shipbuilding industry deal with foreign firm. Beijing Hyundai resumes operation at stalled Changzhou (China) facility, but the firm still faces many other challenges. Freeport McMoran to retain control over operations of Grasberg mine, with USD $750 million investment to be made next year. Indonesia urges APEC to boost cross-border investment by supporting micro, small, and medium enterprises. Thailand's small and medium-sized enterprises urged to invest in Mandalay, Myanmar because of favorable economic and political environments. Tien Phong Industrial Zone JSC and Russia’s Seaport of Azov sign memorandum of understanding to jointly build Vietnam-Russia Industrial Complex. South Korean investment in Vietnam continues to soar as tariffs reductions from the ASEAN-Korea free trade agreement slowly come into effect.

MNCs in the News-2017-05-12

Germany’s top financial regulator generically welcomes Chinese investment in Germany’s financial sector. Tokyo and Beijing discuss bilateral economic relations and cooperation, as Japan fears potential spillover of China’s economic problems. India’s Finance Minister invites Japanese companies and financial institutions to engage in India’s “Made in India” initiative. POSCO and SeAH Steel join growing list of Korean multinationals joining American Chamber of Commerce Korea. Malaysian federal government’s support increases Johor’s appeal as a foreign direct investment (FDI) destination. Failure of Chinese bailout deal fuels speculation about future of Chinese investments in Malaysia. Formosa accelerates investment in USD $11.03 billion integrated steel mill project in Vietnam. Vietnam’s Prime Minister meets with Hong Kong delegation to promote infrastructure investment in Vietnam.

MNCs in the News-2017-04-14

China announces draft rule that would require certain firms to obtain permission to transfer data out of China. Apple promotes the adoption by yet more of its China suppliers of renewable energy. A Chinese think tank and corporate collaborator release a report showing that Chinese firms have been substantially boosting their investment in the manufacturing sector. Potential seen for greater Chinese involvement in ambitious American infrastructure programs. China and Myanmar agree to open oil pipeline linking Myanmar’s Kyaukpyu port to Yunnan, China. Likely opposition from Japanese and US government may drive Toshiba to reject highest bid from Taiwan’s China-connected Hon Hai. Korean companies participate in Saudi Arabia’s Vision 2030 project and, accordingly, will get special support from the Saudi government. Foreign firms pour money into South Korea’s IT, fashion, and entertainment startups to profit from Korea’s cultural power. News reports reveal Malaysia Korea Partners funneled money to the leadership in Pyongyang for decades, violating UN sanctions. China’s Alibaba Group and the Malaysia Digital Economy Corporation (MDEC) jointly establish Digital Free Trade Zone. Cheaper labor, less stringent legal structure, and better intellectual property right protections spur Italian corporate pivot from China into Vietnam. Local officials in Can Tho court French investment in various sectors including agriculture.

Dr. Toshiya Ozaki's picture

Nissan’s Investment in Mitsubishi Motors

In mid-May, Nissan Motor Co. surprised Japan when it announced it would invest $2.2 billion in Mitsubishi Motors to gain effective control of the latter. The surprise was twofold. First, the announcement’s speed and timing astounded many.

MNCs in the News-2016-05-27

At the 8th Strategic and Economic Dialogue talks, the US will press China to improve its business and investment climate. China say it will propose a global investment code at the upcoming G20 summit in Hangzhou. Tsinghua Unigroup’s leadership is unconcerned about the possibilities the new Taiwan leadership may review two of its investments in Taiwanese testing and packaging chip companies. Chinese bidding consortium goes to Malaysia to tout its advantages for the Singapore-Malaysia high-speed rail project. Indian Finance Minister plans to pursue vigorous implementation of a Japan high-speed rail project linking Ahmedabad and Mumbai when he visits Japan at the end of this month. Japanese firms want the United Kingdom to remain in the European Union. South Korean cooperation with Saudi Arabia and Kuwait leads to accelerate of SK Gas Ltd.’s liquid petroleum gas-based gas chemistry business. Frustrated with a stalled legal case, Korea Electric Power Corporation (KEPCO) has decided to pull out of a major Nigerian oil exploration and development project. Indonesia is working hard to finalize all the regulations (new and revised) in its 12 economic policy packages. Global rating agencies seem to like Indonesia’s investment quality. Thailand is pushing Food Innopolis, a food cluster designed to enhance the value of the country’s crops. Vietnam’s inward FDI for the first five months of 2016 grows strongly over the comparable period in 2015. Foreign investors can enter the theater industry in Vietnam.

MNCs in the News-2016-04-01

Chinese Premier Li Keqiang emphasizes China’s willingness to work harder to create a favorable environment for foreign investors. China’s Ministry of Industry and Information Technology stresses that the country’s planned rules on Internet domain names will not affect companies’ “normal operations.” China will set up its first overseas permanent military base in Djibouti. China’s Railway Rolling Stock Corp. aims to win large amounts of business in the developed world. In the face of US Senatorial concerns, Syngenta AG insists a China National Chemical Corp. takeover would not raise security issues. Japan may finance a multi-billion dollar deep-sea port project in Patimban, Indonesia. JR Tokai and its American partner Texas Central Partners (TCP) are going to ask the US Federal Railroad Administration to set new rules allowing an ultrahigh-speed to be built to Japanese bullet train specifications. Mercedes-Benz Korea not rolling along as far as the Korean government is concerned. The Korea Trade-Investment Promotion probes if Korean companies should relocate from the shuttered Kaesong Industrial Complex to Vietnam. Korean businesses and association, in collaboration with the government, will establish a public-private consultative council to boost overseas Korean construction business. Thai Democrats challenge financing model for Bangkok to Nakhon Ratchasima high-speed train line. Vietnamese inward foreign direct investment for the first quarter of 2016 surges over the comparable period a year earlier.

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.

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