Dr. Jean-Marc F. Blanchard's blog

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Promise the Sky and You Risk Being Blown Away: Unwise Chinese Firm Investment Promises

It has become de rigeur for Chinese companies investing overseas to make all kinds of promises to defuse host community anxieties, to smooth the deal approval process, and to win government investment incentives. For instance, in 2010, when Chinese bus maker BYD Motors, Inc.

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Hope and Hype about Chinese FDI in the US and Job Creation

Record Chinese outward foreign direct investment (OFDI) in the US has spurred great excitement about its job creation potential. There is good reason for optimism. For instance, Wanxiang’s 2013 purchase of A123 Systems and TDC Cutting Tools’s 2009 purchase of Greenfield Industries reportedly saved around 750 jobs.

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No Great Wall against Chinese Investment in the United States

For once, American and Chinese pundits seem to think alike: There is a budding Great Wall, reinforced by hostile political sentiments in the United States (US) and, above all, the sinister Committee on Foreign Investment in the United States (CFIUS), that is raising increasingly high obstacles to Chinese foreign direct investment (FDI).

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The Other “New Normal” or Chinese OFDI on the Rocks?

For some judging the current state of Chinese outward foreign direct investment (COFDI) negativity is the “new normal.” Rejected in Myanmar due to domestic politics, whipsawed in Sri Lanka by shifts in administrations, and hamstrung by the US Committee on Foreign Investment in the United States (CFIUS) national security review process, China In

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China’s Maritime Silk Road Initiative as the Next Great Investment Frontier (or Not)

In 2013, Chinese President Xi Jinping launched the 21st Century Maritime Silk Road Initiative (MSRI).

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A Yam Squeezed Between Two Boulders: The Dilemma of Transferring Technology to China…and Others

Tech firms dealing with China have long had to find ways to please the latter to ensure they have had permission to invest in or sell to China, to enjoy preferential polices afforded foreign investors, or to bid on government contracts.

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Loco about Localization: The Obvious is Not for Chinese Companies

It is de rigueur today that Chinese companies need to become more localized. At a minimum, they need to become more aware of local laws, regulations, and customs and abandon the idea they can do things like they do them at home. At the maximum, they need to hire more local workers and managers, source more goods locally, transfer technology, and become better corporate citizens, adopting meaningful corporate social responsibility programs.

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US-China Bilateral Investment Treaty (BIT) Negotiations: Still Nothing to Sink One’s Teeth Into

Prior to the opening of the just concluded 7th U.S.-China Strategic and Economic Dialogue (S&ED) there was some hope the two countries might make progress on a BIT. China fed the optimism somewhat, with a Chinese official lauding the fact the two sides had exchanged negative lists and were working to improve and shorten their lists.

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Chi-Cham USA! The Potentialities and Limits of PRC Company Business Associations in the US

Chinese companies from the People’s Republic of China in the US have been organizing to promote their interests as shown by the China General Chamber of Commerce-USA (CGCC)’s expansion. The rise of the CGCC mirrors the development of foreign business associations in China such as the American Chambers of Commerce (AmCham China). The CGCC’s mission is to “promote the brand of Chinese companies collectively, protect their legal rights, and advocate for fairer regulation” and to serve a bridging function.

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Giving Foreign IT No Credit: China’s New Banking Technology Rules and Possible Responses

China’s Banking Regulatory Commission (CBRC) and Ministry of Industry and Information Technology (MIIT) have begun to implement rules designed to ensure that by 2019 seventy-five percent of the technology in China’s banking system is “secure and controllable.” The rules are wide-ranging, covering hardware such as mainframes, personal computers, and point-of-sale systems as well as software like operating systems and anti-virus programs.

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