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Dr. Jean-Marc F. Blanchard's picture

China’s Government Reform and Implications for Foreign Investors

At present, the eyes of the foreign business community in China understandably are fixed on United States (US) President Donald Trump’s levying of tariffs on Chinese strategic goods, China’s retaliation, and the potential for the situation to escalate. While such matters warrant attention, the business community also should be alert to China’s planned government restructuring which will reduce the total number of ministries, eliminate some ministries like the General Administration of Quality Supervision, Inspection, and Quarantine, consolidate others such as the China Banking Regulatory Commission (CBRC) and China Insurance Regulatory Commission (CIRC), create new ministries like an international aid agency, and shift the oversight of some ministries.

Dr. Jean-Marc F. Blanchard's picture

Pounding COFDI in the US in Search of a Better Playing Field in China

Since 2014, Chinese outward foreign direct investment (COFDI) in the United States (US) has grown dramatically. Of course, there were failed deals, some because of the US Committee on Foreign Investment in the United States (CFIUS), which vets transactions involving foreign firms for potential adverse national security implications.

Mr. Naoyuki Haraoka's picture

SMEs Can Benefit from Globalization through Indirect Exports

Many anti-globalization activists doubt small and medium enterprises (SMEs) can profit from economic globalization given their competitive disadvantages versus multinational enterprises (MNEs). The good news for SMEs is that MNEs building global supply chains for products such as home electronics or electric appliances will need parts and components from SMEs to achieve competitiveness since many key components are made by SMEs.

Dr. Jean-Marc F. Blanchard's picture

A Controversial Take on Chinese Neocolonialism

The long-standing debate about Chinese neocolonialism has been reborn as a result of China’s massive Belt and Road Initiative (BRI) and Chinese multinational companies (MNCs) taking over Sri Lanka’s Hambantota Port and leasing a huge plot of land in Colombo Port. Adding fuel to the fire, the contemporary features of China’s relations with many developing countries bears general resemblance to those of the Europeans in the 19th and 20th centuries.

Dr. Scott MacDonald's picture

The Return of the Great Game and Infrastructure

The Great Game was a geopolitical contest for influence and dominance in Central Asia between Tsarist Russia and the British Empire that occurred in the 19th and early 20th centuries. The game was played out over vast distances, with a mix of spies, money and armies.

Dr. Scott MacDonald's picture

China Needs to Rethink its Game

One factor that has allowed China to expand its global role has been financial diplomacy in the form of loans, business deals and other investments. However, in overlooking issues such as public discontent with dictatorships, corruption and economic mismanagement, Chinese companies have also assumed considerable risk.

Mr. Naoyuki Haraoka's picture

Infrastructure for Global Value Chains

The nature of the utilization of global value chains (GVCs) is a key element in determining the type of activity of multinational enterprises (MNEs). At the most primitive stage, trade in agricultural, mineral, or light-industrial products is dominant and relatively slow paced. Thus, there is little time sensitivity. At the second stage, business operations are more sophisticated and time sensitive.

Dr. Amitendu Palit's picture

EODB Rankings Augur Well for BRI Investments

The recently released World Bank Ease of Doing Business (EODB) rankings have interesting findings relating to some of the countries involved in China’s Belt-and-Road (BRI) infrastructure project. One of the major groups of countries to have improved EODB rankings since last year is Central Asia. Kazakhstan (+1.06), Azerbaijan (+3.12), Uzbekistan (+4.46), Ukraine (+1.90), Kyrgyz Republic (+0.54) and Tajikistan (0.93) have all moved up the EODB ladder.

Dr. Jean-Marc F. Blanchard's picture

Chinese Auto Joint Venture Partnerships and Avoiding a Wreck through A Local Partner "Bumper"

According to an article that appeared in Caixin, a well-known Chinese business publication, in mid-September, Great Wall Motor Co. Ltd. and two other unnamed Chinese car makers potentially might set up a joint automobile plant in the United States (US) as a means of reducing investment risk. On the surface, a joint venture (JV) is a sensible strategy as multiple firms working together might, in concept, lower design uncertainties, share development and production costs and risks, and minimize the expenditures associated with branding, marketing, and distribution.

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).

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