Blog*

Dr. Jean-Marc F. Blanchard's picture

Rethinking China’s Outward Cash Flow Crash: Politics in Command?

Not so long ago, the story of the day was about China’s inexorable path to buying up the world, with more than USD $200 billion of acquisitions in 2016 alone. Lately, however, those once focused about China’s global takeover have been dashing to explain the Chinese outward cash flow crash. The crash has involved an almost 43 percent drop in COFDI over the first six months of 2017 year-over-year (YOY).

Dr. Hwy-Chang Moon's picture

Why Is Vietnam Korea’s Favorite FDI Destination in ASEAN?

The Association of Southeast Asia Nations (ASEAN) has become a major destination for Korean foreign direct investment (FDI). In 2016, this region alone attracted about one half of Korea’s outward FDI (OFDI). Moreover, one half of Korea’s FDI flows within this regional bloc were concentrated in Vietnam.

Mr. Naoyuki Haraoka's picture

Liberal Investment Policy a Key Path to Realize the National Interest

Contemporary business firms face the Fourth Industrial Revolution, a large-scale ICT revolution. Innovations emerging during this transformative period have made it possible for manufacturing companies to divide the production process into many separate operations such as new product development, component production, assemble, sales, after-sales services, and so on. East Asia is no stranger to these dynamics. The horizontal division of labor in manufacturing has been common in this region since the 1980s.

Dr. Jean-Marc F. Blanchard's picture

Kicking around Heavy Handed Policies against Chinese Outward FDI

It is widely known that not that long ago China adopted measures to limit capital outflows following several years of massive declines in its foreign currency reserves. One of these was new review processes for deals crossing certain thresholds, which were lower in situations where an overseas deal was unrelated to the investor’s “core” business. Regarding the latter, policymakers opined that numerous deals were “‘irrational and abnormal.’”

Dr. Amitendu Palit's picture

Will RCEP Promote Investments in the Asia-Pacific?

The Regional Comprehensive Economic Partnership (RCEP) is being looked upon as the most promising framework for regional economic integration in the Asia-Pacific Region (APR) after the United States (US) decided to withdraw from the Trans-Pacific Partnership (TPP). Negotiated by sixteen countries—the ten member states of the Association of Southeast Asian Nations (ASEAN), Australia, China, India, Japan, Korea and New Zealand, RCEP is not as ambitious as the TPP.

Dr. Jean-Marc F. Blanchard's picture

Bad THAAD, THAAD’S Bad: Reflections about China’s Economic Sanctions and their Implications for Multinational Corporations

For about the past three months, Beijing has been escalating economic pressure on South Korea because of the latter’s decision to deploy the Terminal High Altitude Area Defense (THAAD) anti-missile system to counter North Korea’s missile threat. Chinese economic coercion has encompassed barriers to Korean cultural products like K-Pop bands, television shows, and online games entering China, bans against Chinese tourists going to Korea, the shutdown of Korean stores in China, the cessation of investment deals, and reduced buying of Korean products.

Mr. Naoyuki Haraoka's picture

“America First” policy should be reinterpreted as “America’s MNEs First” Policy

United States (US) President Donald Trump aims to keep American companies inside the US to secure American employment. International trade analysis suggests, though, this is a wrongheaded policy. The present situation is one where Japan, Korea, and members of the Association of Southeast Asian Nations (ASEAN) export intermediary goods to China, these countries’ subsidiaries or factories in China use a large proportion of these goods to assemble final goods for export to the US, European Union (EU), Japan, and elsewhere, and the US imports substantial amounts of assembled goods from China while exporting much less to China than those East Asian nations.

Dr. Hwy-Chang Moon's picture

South Korea Must Provide a Better Business Environment to Attract Foreign Direct Investment

Foreign direct investment (FDI) in South Korea has grown continuously over the past two years and currently is at historical highs. However, challenges flowing from American President Donald Trump administration’s protectionist trade and reshoring policies and increasing competition from other countries proactively moving to enhance their respective business environments to attract FDI will challenge Korea’s ability to continue to successfully attract FDI. In order to remain an attractive destination for FDI, the Korean government needs to offer a more attractive business environment to foreign investors.

Dr. Scott MacDonald's picture

Shipping, Trade, and China

Shipping remains a critical factor in global trade and also has been a key factor in the rise of the Chinese economy since the last decades of the 20th century. However, the 2008 Great Recession caught global shipping in a period of fleet expansion and greater capacity to carry freight per ship. Post-2008 the shipping industry has faced tough times. Trade has not recovered from levels prior to that year. Rates have been drastically cut, company revenues have plummeted, some companies went into bankruptcy (as with South Korea’s Hanjin Shipping in 2016), and other companies have merged.

AIIB’s new robust policy on prohibited practices

On 8 December 2016, about a month after my previous blogpost entitled “Chinese Companies and the World Bank’s Procurement Blacklists” was published on this website, the Asian Infrastructure Investment Bank (AIIB) re-issued its Policy on Prohibited Practices. The policy has not received much attention outside of China, but is significant for both the legal and business community. In the Policy on Prohibited Practices, the AIIB sets out its rules and procedures. Prohibited Practices are defined in Section 3.2.

Pages

*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.