Toshiba Corp.

China’s National People’s Congress (NPC) to consider new draft law on foreign direct investment (FDI) that seeks to provide stronger legal guarantees to overseas investors. About 1/3rd of North American-based corporations on the CNBC Global CFO Council say Chinese companies have stolen their intellectual property (IP) at some point in the past ten years. Mirroring global trends, Chinese FDI in Europe fell drastically in 2018 and a recent survey suggests the European Union (EU)’s new investment screening framework likely will curb Chinese EU mergers and acquisitions even more. Italian economic development ministry official announces Italy is planning to join China's Belt and Road Initiative (BRI). Faced with Mitsubishi Heavy Industries Ltd.’s refusal to negotiate, South Korean plaintiffs who won a wartime forced labor case against the company file court request to seize the company’s assets. Toyota Motor Corp. announced last week it may pull out of production in Britain due to the likely increase of tariffs in the case of a no-deal Brexit. Hyundai Motor is considering suspending operations at its Beijing manufacturing plant partly due to plummeting sales and partly due to budding opportunities elsewhere. South Korea’s Ministry of Economy and Finance reports Korea’s OFDI reached a record high in 2018 partly due to Korean companies going abroad to enjoy a better manufacturing environment.

US companies dilute proposed legislation that might have dampened their exports to/sales in China of technology. 2018 China Enterprise Cross-Border M&A Special Report shows decline in both the number and volume of Chinese merger and acquisition (M&A) deals in 2017. China’s crackdown on CEFC Energy throws into uncertainty a proposed mega investment in Russia’s Rosneft. Japanese may loosen regulations on foreign direct investment (FDI) in Japanese broadcasters. Toshiba chip sale deal awaits regulatory approval from China. South Korea company wins multi-billion bridge building contract in Turkey. South Korea and Russian companies lay foundation for cooperation in building transportation and other infrastructure for Korean peninsula and elsewhere. Indonesia’s Environment and Forestry Ministry to sue American mining company Freeport McMoRan for massive environmental damages. Indonesian official embark on road show to bring more private FDI into the country’s underfunded infrastructure projects. Thai government alarms by announcing intention to change the country’s Foreign Business Act. Malaysia finalizes deal bringing USD $7 billion of Saudi FDI into the Pengerang Integrated Complex. UAE company will pour more than USD $1 billion to develop offshore Malaysian gas site. Vietnam’s State Audit Office slaps back taxes bill on just privatized former state-owned enterprises (SOE) Sabeco. Vietnam aims to divest major portion of PetroVietnam Gas to garner strategic investment and massive amounts of funds.

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.

The Information Technology & Innovation Foundation (United States) has called for global action in the face of China’s Made in China 2025 plan. Chinese Ministry of Industry and Information Technology (MIIT) official defends his country’s “Made in China 2025” plan. China’s Food and Drug Administration issues draft policy that would allow foreign drugs to be tested and approved much more quickly in China. During a visit to China, Apple CEO Tim Cook announces Apple will open new R&D centers in Shanghai and Suzhou. Microsoft touts the development of a China-specific Windows 10 operating system that is “secure and controllable.” Chinese government agencies are working on a policy that would specify those sectors where outward foreign direct investment (FDI) was encouraged and those where it was restricted. Tokyo says it does not plan to support troubled Toshiba and that it will share information with Washington about Toshiba and its bankrupt US nuclear division. Japanese and Russian officials meet to discuss ways to jointly develop the islands off Hokkaido they both claim. South Korea asks the World Trade Organization to review Chinese sanctions against Korean companies relating to its deployment of THAAD. South Korea’s SK Engineering & Constructions partners with Turkey’s UNIT International to win multi-billion dollar power plant construction project in Iran. Energy firms urge Indonesian government to enhance its policies in the upstream and downstream oil and gas sectors.

Chinese Ministry of Commerce spokesman voices confidence China will remain attractive to foreign investors and promises new efforts. China’s State Power Investment Corp. buys Taralga Wind Farm project for nearly $230 million. Former Turkish energy minister expects China to bid aggressively during the bidding process for Turkey’s third nuclear power plant. China’s Three Gorges International Corp. will bid on Brazil’s Tapajos hydroelectric dam project. Japan’s Toshiba reveals that US Justice Department and US Securities and Exchange Commission are investigating the accounting practices of its US units. Political infighting in Indonesia results in postponement of major oil bloc development by Japan’s Inpex. Japanese firm partners with government controlled Indian private venture on major wind power project across seven Indian states. Bank of Tokyo-Mitsubishi UFJ will become the first Japanese lender to provide Islamic compliant financing through an overseas branch. Influx of Japanese businesses into Myanmar’s Thilawa special economic zone drives drives Myanmar’s CB Bank to open a branch there. Korea Electric Power Corporation (KEPCO) has signed a Memorandum of Understanding with Ecuador linked to its plans to build EV charging infrastructure operation systems in the country. The Korea Rural Community Corporation is expected to secure a government of Gujarat (India) contract for the construction of the Kalpasar sea wall project. Indonesia aims to bring more European investment into the country. The President of the European Association for Business and Commerce called upon the Thai government to embrace a number of changes in order to draw more investment.