Toyota Motor Corp.

MNCs in the News-2020-03-27

The China Council for the Promotion of International Trade (CCPIT) has issued more than 6400 force majeure certificates to help suppliers deal with their inability to meet their contractual obligations. Per China’s Ministry of Commerce, Chinese outward foreign direct investment (FDI) for the first two months of 2020 totaled USD $15.5 billion, a 1.8 percent year-over-year (YOY) increase. China’s MOFCOM reports that Chinese companies put $2.72 billion into 48 countries along the Belt and Road, an 18.3 percent jump YOY. Chinese construction companies prove adept at rapidly building hospitals in countries facing medical infrastructure challenges in coronavirus era. In the first defense product export deal since Japan eased its arms trade ban in 2014, Mitsubishi will sell air radar systems to the Philippines. In an atmosphere where automobile companies are expected to help by producing supplies to deal with Covid-19, Toyota North America moves to step up production of related goods. Samsung Electronics and LG Electronics get exemptions to send engineers to their plants in Vietnam. US International Trade Commissions released documents explaining its default judgement supporting LG Chem’s accusations of trade secret theft by SK Innovation.

MNCs in the News-2020-03-20

China’s National Development and Reform Commission (NDRC) notes China will strive to help foreign businesses resume normal operations, will shorten the negative list for foreign direct investment (FDI), and will advance major foreign-invested projects. Shanghai city government highlights that major foreign financial firms continue to inject FDI into the brokerage, asset management, and securities sectors, among others, despite the Covid-19 epidemic. China State Construction Engineering Corporation places first tower cap in mega skyscraper project for Egypt’s new administrative capital, part of the Belt and Road Initiative. Japan’s Ministry of Finance starts to solicit public comment on future revisions to the Foreign Exchange and Foreign Trade Act. List of Japanese companies suspending operations at factories in the United States (US) due to coronavirus grows. Korea Rail Network Authority (KRNA) wins a bid from Thailand to manage a high-speed railway linking three airports. Hyundai Rotem, a subsidiary of Korea’s Hyundai Motor Group, ordered by Brazil’s Ministry of Labor to pay large fine plus moneys due workers for failing to pay workers overtime pay.

MNCs in the News-2019-03-08

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.

MNCs in the News-2019-02-22

Shanghai municipal government investment measures appear to have enabled the city to maintain strong foreign investment growth despite a challenging environment. BIStel says it will expand its investment in China despite the China-United States trade war because China is its biggest target market. Saudi Arabia’s Aramco signs Memorandum of Understanding (MoU) for investment in major refining and petrochemical investments in Liaoning that may substantially boost energy exports to China. According to China’s Ministry of Commerce (MOFCOM), Chinese non-financial outbound FDI in 47 countries participating in the Belt and Road Initiative (BRI) increased 8.1 percent year-over-year. Despite uncertainties over Brexit, Chinese companies remain interested in investing in the United Kingdom. Tokyo considers backing Russia’s Novatek’s Arctic liquefied natural gas project in the hopes of bolstering Japan’s negotiating position in territorial talks with Moscow. An increasing number of Japanese automakers are leaving or reconsidering their position in the UK as Brexit fast approaches. Seoul expects the second US-North Korea summit to facilitate inter-Korean investment projects including a Korea peninsula rail link. India and South Korea agreed to enhance cooperation in diverse economic areas, including many pertaining to investment.

MNCs in the News-2018-01-12

China moving to make Free Trade Zones (FTZs) freer. China punishes Marriott over survey that lists Hong Kong, Macao, and Tibet as independent countries. Apple’s iCloud darkens as it transfers the service to a Chinese company that will operate it and keep all data in China. French Finance Minister welcomes Chinese foreign direct investment (FDI) in France provided it is not “looting.” President Donald Trump’s pressure seems to have driven Toyota and Mazda to select Alabama for USD $1.6 billion production facility. NEC acquires Northgate Public Services for USD $640 million following the British government’s promotion of digitalization. South Korea’s state-operated Korean Development Bank sets price floor on sale of struggling construction firm Daewoo Engineering & Construction. Hyundai invests in Singapore’s Grab in effort to expand in Southeast Asia and reduce reliance on the tumultuous China market. Indonesia’s Ministry of Finance to reevaluate investment attraction programs after no companies applied in 2017. Jakarta and Freeport-McMoRan seek to resolve by June a host of operational issues that plague the future of Grasberg mine. Nissan shortlists Thailand as possible location for Asia-Pacific EV manufacturing facility due to Thai investment incentives. Thai Minister says Chinese investment into country’s rubber plantations must be carefully considered and not impact local farmers. Johor Sultan invests USD $100 million in Sri Lanka’s first pharmaceutical manufacturing sector. New policy decree by Hanoi allows foreign enterprises to provide logistics services in Vietnam. Several of Vietnam’s efforts to divest state-owned enterprises at the end of 2017 did not catch much investor attention.

MNCs in the News-2017-10-27

Shanghai Customs touts 18,000 firms registered in Shanghai Free Trade Zone (SFTZ) since its creation in 2013. State-Owned Assets Supervision and Administration Commission head stresses that state-owned enterprises (SOEs) will play a “leading role” going forward. Toyota claims reduced investment and production at Trump targeted planned Mexican plant not due to politics. Toyota calls for more clarity regarding Brexit plans before deciding to finalize its planned plant in Britain. South Korea’s minister of trade met with Saudi Arabian counterpart to discuss Korea’s planned bid for two nuclear reactors. Korea Development Bank planning to sell stake in Daewoo Engineering and Construction, prompting bids from various notable firms. Airbus planning on partnering with Indonesian state-owned aerospace company Dirgantara Indonesia to build maintenance facility in Indonesia. Riau Andalan Pulp and Paper requests legal certainty for Indonesian investment regarding environmental regulations. Thai Airways International granted permission by the government to enter into joint investment project with Airbus. Thailand’s National Council for Peace and Order approves guidelines for land development in the country’s EEC. Belt and Road Property Development Forum 2018 to draw USD $1.5 billion investments from Malaysia to China. Malaysian minister says no investment deal was finalized during Malaysian government delegation visit to the US. Korean companies shifting investment away from China’s politically difficult market into Vietnam. Southern Vietnam province continues to attract Japanese investment as local People’s Committee aims to ease business concerns.

MNCs in the News-2017-10-20

At 19th Party Congress, China promises greater market openness for foreign investors, but foreign businesses and governments cautious. Top China Banking Regulatory Commission (CBRC) official says foreign banks may get more latitude in entering and operating in China’s banking sector. Chinese outward foreign direct investment (FDI) plummeted 41.9 percent over the first nine months of 2016 year-over-year. In the first three quarters of 2016, Chinese outward merger and acquisitions activity drops significantly in both deal volume and size. Toyota and Mazda seek USD $1 billion incentive package from US states bidding for their joint car factory. SoftBank Group struggling to carry out US investments after several of its deals have been caught up in the CFIUS review process. US Department of Justice demands Kobe Steel release all information related to it falsified steel and metal data. SK-Sinopec JV to expand its Wuhan Petrochemical plant mirroring success of SK Innovation’s China Insider strategy. Korean battery manufacturers finding backdoors into the Chinese market despite Chinese government’s preferential treatment of domestic firms. Indonesia works to attract private investment despite bad atmosphere created by problems with Freeport-McMoran. Freeport-McMoRan facing labor union protests over anticipated layoffs. New US-Thai joint committee formed to increase bilateral investment following Thai Prime Minister’s recent US visit. Malaysia’s Ministry of International Trade and Industries leads trade mission to Europe to attract German investment. MITI reports a decline in investments this year. Vietnamese government begins implementing its divestment plan for Dung Quat Oil Refinery, attracts foreign investors. Foreign brewers eagerly awaiting Vietnamese government’s divestment plans for country’s largest domestic brewer Sabeco.

MNCs in the News-2017-03-10

European Chamber of Commerce in Beijing highlights China’s 2025 Plan as possibly violating China’s World Trade Organization (WTO) commitments. China’s re-imposition of capital controls becomes a hot issue at China’s 2017 National People Congress meeting. Facing seemingly severe constraints on their ability to access/use yuan, Chinese corporate executives are complaining about the impact of such limits on their ability to do deals. In the face of possible increased American trade barriers, Great Wall Motor Co. ponders building its first factory in the United States (U.S.). Wanfeng Auto Holding Group looks to the U.S. for deals to jump potential tariff and other barriers in the U.S. Toyota Motor Corp. may wait until economic fallout of Brexit becomes clearer until it decides whether or not to produce the next generation Auris in the United Kingdom (U.K.). Honda announces plans to invest $150 million in transmission facilities in Georgia and Ohio in the US. Chinese sanctions against South Korea because of the latter’s deployment of the Terminal High Altitude Area Defense system hit Korean companies inside and outside China. Korea’s Trade Minister meets with US Commerce Secretary Wilbur Ross to seek ways to boost investment and other forms of cooperation. Indonesia explores new levels of investment cooperation with Japan. Indonesia welcomes small amount of investment from Saudi Arabia flowing from visit of Saudi king, but does not receive large amounts expected.

MNCs in the News-2017-01-27

China’s Ministry of Industry and Information Technology sooths foreign firms over upcoming restrictions on VPN providers. Trump administration trade officials back a tougher line towards Chinese semiconductor investment and greater support for home firms. China stresses how Chinese outward foreign direct investment (FDI) in the US promotes manufacturing there and creates jobs. Hon Hai is considering a USD $7 billion investment in a joint flat panel project in the US with Pennsylvania a leading contender. In the wake of growing anxieties over Chinese investment, Australia moves to prepare review of strategic infrastructure. Apparently incentivized by Trump’s withdrawal of the US from the Trans-Pacific Partnership (TPP) and other anti-trade statement, Toyota talks up $600 million investment plan. Toshiba’s troubles in the UK may force it to take on new partners and get United Kingdom (UK) government financing. Domestic and international political uncertainties seem to be driving a slowdown in inward FDI flows into Indonesia. Chinese outward FDI to Indonesia has been exploding, but it is uncertain if it will continue given uncertainties there plus anti-Chinese sentiments.

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.

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