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Dr. Jean-Marc F. Blanchard's picture

Run Bank Run? The Deposits Foreign Financial Firms Made in China Market (Still) are Not Liabilities

How fast sentiments can change! The much vaunted opening of China’s financial sector to foreign banking, insurance, and securities firms has become a source of angst with observers now wondering if foreign financial players such as Allianz, Citigroup, JPMorgan, Nomura, and UBS will get caught up, directly or indirectly, in China-United States (US) tensions relating to geopolitics, trade, foreign direct investment (FDI), portfolio investment, Covid-19, and the changed status of Hong Kong. Potentially at risk are billions of dollars in FDI such companies have spent to acquire majority stakes in or establish securities joint ventures (JVs), build up their China insurance operations, and begin mutual fund operations.

Dr. Jean-Marc F. Blanchard's picture

Casting after Covid-19 or Premature Predictions about COFDI’s Demise

Last month, I wrote pessimistically about the prospects for foreign direct investment (FDI) in China in the post-coronavirus world. Contrastingly, I am not so pessimistic about the future of Chinese outward FDI (OFDI), though China’s economic situation, the challenged cash flows and balance sheets of Chinese investors (state-owned and private), and China’s ever present worries about capital flight will constrain OFDI amounts. This seemingly pollyannaish view derives from home (China) and host (recipient) country factors shaping Chinese OFDI (COFDI).

Dr. Jean-Marc F. Blanchard's picture

The New Online World Could Mean Offline for FDI in China: Political and Economic Factors Affecting Future FDI in China’s Online World

The coronavirus, otherwise known as Covid-19, has hit foreign direct investment (FDI) flows into China hard. This should surprise no one—money is scarce; the payback from FDI now seems far away; and resources are being husbanded on the home front.

Dr. Jean-Marc F. Blanchard's picture

De virus, Decoupling, De-globalization, Downsizing, and FDI in China

China’s coronavirus epidemic has had profound economic effects including dramatically reducing travel within and outside China, severely suppressing business activity in the education, entertainment, food & beverage, and leisure and recreation industries, among others, and disrupting or freezing manufacturing and the delivery of production i

Dr. Jean-Marc F. Blanchard's picture

The Phase I Trade Deal and FDI, Part I-Financial Services

Previously, I expressed mild skepticism and then later guarded optimism about China’s financial sector opening. The recent United States-China Phase One trade deal suggests the situation may be even better than originally thought with one entire chapter of the agreement speaking to the sector’s opening.

Dr. Jean-Marc F. Blanchard's picture

Europe Facing Disconnection Disaster over Huawei and Curbs on Chinese Companies?

European countries like Germany, the United Kingdom, and Norway have been struggling over the extent to which they should use equipment and services and accept foreign direct investment (FDI) from Chinese telecommunication firms.

Dr. Jean-Marc F. Blanchard's picture

Getting High on China: The High Cost of Low-Priced Drugs for Pharma Firms?

Recently, foreign pharmaceutical makers such as AbbVie, AstraZeneca, Novartis, Sanofi, and Roche slashed the prices of a large number of drugs sold in China, the world’s second largest drug market.

Dr. Hwy-Chang Moon's picture

Tensions between South Korea and Japan and Implications for Korea’s Inward FDI Policies

Tensions over history between South Korea and Japan, dating back over 100 years, have now spread to economic and military issues. Although the two countries normalized relations in 1965, history issues have remained sensitive to this date.

Dr. Jean-Marc F. Blanchard's picture

No Promise Left Behind: The Effort to Court EU FDI through a China-EU BIT

China and the European Union (EU) have been discussing a bilateral investment treaty (BIT) for a long time. Indeed, the two sides held their 21st round of China-EU BIT negotiations in June 2019.

Dr. Jean-Marc F. Blanchard's picture

Pundits Posit China’s New Foreign Direct Investment Law Progresses!

In May, China passed a new law relating to Foreign Direct Investment (FDI) that comes into effect at the beginning of 2020. This law replaces three laws relating to wholly-owned foreign enterprises, contractual joint ventures (JVs), and equity JVs that previously constituted China’s formal FDI regime.

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*Blogs represent the views of their authors and are not necessarily endorsed by the Wong MNC Center, its Board of Directors, or its Advisory Board. They are intended for the non-commercial use of readers in order to foster debate and discussion and to facilitate and stimulate research.