World Bank

China’s State Council identifies measures to encourage greater foreign direct investment (FDI) into China. Shanghai continues to attract inward FDI and seeks to reach new heights in 2020. China’s TikTok to establish center in United States (US) to assuage worries that user data is being transmitted back to China. US Treasury Secretary Steven Mnuchin tells US Congressional committee that the US is working with the International Monetary Fund and World Bank to ensure their funds are not used to repay Belt and Road Initiative debts. Japan will not allow investors filing applications under its new FDI review system to submit notice online or in English. Japanese Ministry of Finance data shows Japan’s overseas investment earnings rose steadily in January 2019, offsetting deficits in other areas. Hyundai Heavy Industries’ acquisition of Daewoo Shipbuilding & Marine Engineering encountered another obstacle with the European Commission delaying its decision on the merger until the summer. Korea’s Samsung facing hindrances to its efforts to boost production at some of its Vietnam factories due to Vietnam’s restrictions on Korean travelers resulting from the coronavirus.

Chinese firms producing and using coal not energized by institutional investor promises to divest trillions of dollars in the fossil fuels sector. China moves to bring vigor and vim to the elderly nursing home sector through measures to encourage foreign direct investment (FDI). Chinese anti-competition authorities dial in to Ericsson for potential antimonopoly practices in licensing patents. China creates international tax cooperation mechanism under the Belt and Road Initiative (BRI) called the Belt and Road Initiative Tax Administration Cooperation Mechanism (BRITACOM). Energy Foundation China President contends China’s BRI will spark “transition to a sustainable energy future”! Japan woos Eastern and Central Europe away from BRI even while expressing support for latter. Leaked emails reveal Tokyo last spring put the brakes on any potential Renault-Nissan merger. Korean President visits Hyundai Engineering Co.’s mega $30 billion Kiyanly plant in Turkmenistan and vows to support Korean companies working with the latter. South Korea’s finance minister announces Seoul will prepare for inter-Korean economic projects in case there is an easing of sanctions on Pyongyang.

Skype loses Apple app store connection in China due to government regulation. Illegal overtime at Apple supplier Foxconn plant in Henan stopped. Chinese official reports Chinese firms employed more than 1.3 million people abroad in 2016. According to Chinese railway authorities, China has 20 overseas railway projects right now with investment around $15 billion. Bad press on Uber’s data theft cover-up may push SoftBank to renegotiate the terms of USD $10 billion investment deal due to impending legal action. Air bag maker Takata finalizes agreement to sell assets to Chinese owned Key Safety Systems to obtain cash needed to cover court imposed penalties. US trade commission’s proposed import tariffs on washing machines may lead Samsung and LG to reassess whether building new US factories would still be beneficial. South Korea’s SK Group sells used car affiliate to Australia’s Carsales Holdings in face of government barriers to further expansion. Indonesian government looking for more than USD $800 million in private foreign investment to develop tourism near Lake Toba. Real Estate Indonesia invites Japanese developers to engage in housing projects after Japan’s Prime Minister reaffirmed his country’s commitment to increasing investment in Indonesia. DHL to invest over USD $350 million to develop its IT services in Malaysia, contributing to Kuala Lumpur’s national digital transformation agenda. Nestlé selects Malaysia for global procurement hub investment as Malaysian Minister announces Kuala Lumpur strives to position the country as a preferred investment destination. Jardine Matheson and Fraser and Neave seek to increase stakes in Vinamilk as Vietnam continues to divest in its state-owned industries, albeit cautiously. Hanoi cooperating with World Bank to create new regulations to increase FDI in Vietnam as country seeks to diversify FDI sources.

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.

China’s Ministry of Commerce (MOFCOM) plans to create database with information on foreign investors. China’s MOFCOM and National Development and Reform Commission role out first nationwide negative list, which has 30 fewer restricted and prohibited sectors than the 2015 list. China’s Leading Group for Comprehensive Reform calls for more statistics on and the better monitoring of Chinese outward foreign direct investment (OFDI). Despite Brexit, many expect Chinese firms will remain interested in investing in the United Kingdom (UK). Takata files for bankruptcy protection in the US and Japan due to massive recall, with viable operations bought by Chinese-owned Key Safety Systems. Korea Economic Research Institute urges Korean government to exempt taxes on income earned by South Korean multinationals abroad to encourage capital repatriation. Samsung joins increasing list of international firms boosting employment in the US in line with US President Donald Trump’s push for more manufacturing jobs. Jakarta plans to revise its Negative Investment List to encourage more foreign investment. World Bank states that foreign investment in Indonesia is still too low and recommends various policy changes. Minister says Malaysia’s government constantly striving to attract foreign investment. Former Bank Negara Malaysia governor says Malaysians should view China’s increasing investment rationally to evaluate benefits to country.