MNCs in the News*
September 19th, 2015
China and the US step up negotiations on a bilateral investment treaty (BIT). US companies face intensification of pressures to accommodate Chinese government’s information technology security anxieties. US backs off imposing sanctions against Chinese companies benefitting from commercial hacking activities. China’s General Administration of Quality Supervision, Inspections, and Quarantine tells FAW-Volkswagen to do more in regards to Sagitar defect. Chinese outward foreign direct investment (FDI) registers impressive growth in first eight months of 2015 and all of 2014 with One Belt, One Road (OBOR) investment continuing to soar. Lenovo is working to ensure its server products can be purchased by US government agencies. China will help set up infrastructure to promote China-ASEAN internet connectivity and the 21st Century Maritime Silk Road. Japan’s Kayaba Industries Co. pleads guilty to price fixing scheme and accepts large fine. Korea’s National Tax Service undertakes tax audit of Mercedes-Benz Korea. Korean government pushes foreign businesses to hire more workers, especially young workers. Indonesia is moving to implement incentives to boost foreign investment in refinery operations. Vietnam takes heed of complaints of Korean business community.
September 12th, 2015
China’s Ministry of Commerce (MOFCOM) reports that inward foreign direct investment (FDI) rose 22 percent in August year-over-year (YOY). Foreign companies express concern about China’s reform direction and stance towards foreign business. US business community hopes Chinese President Xi Jinping’s state visit to the US will push forward a US-China Bilateral Investment Treaty (BIT). Sources report Google will develop China-mainland version of its Google Play online store that meets government requirements. China’s Ministry of Finance charges Apple with underpaying more than $65 million of taxes in 2013, which Apple has since paid. China plans to host major technology meeting in Seattle in late September around the same time as Xi’s state visit to Washington. Taiwan liberalizes rules governing investment by local chip firms on the Chinese mainland. China’s National Development and Reform Commission (NDRC) Guangdong branch fines Dongfeng Nissan and 17 dealers more than $22 million for price fixing. Chinese and Russian firms conclude numerous investment deals on sidelines of China’s 70th anniversary V-Day ceremonies. Pakistan leases 2000 acres of land at Gwadar Port to facilitate China’s construction of the port’s first free economic zone. Indonesia will lengthen from 2 to 10 years the time before a contract expires that mining investors can seek a contract extension. Indonesia opts to retain ban on unprocessed mineral ore exports. Vietnam Decree 60 fails to boost foreign investment.
September 5th, 2015
Chinese authorities impose penalties on Pfizer for problems relating to erection of Viagra displays. Mainland government policies like the Silk Road Initiative and other factors influence Taiwanese Electric and Electronic Manufacturer’s Association new rankings of favored mainland investment destinations. China Development Bank (CDB) intensifies funding for Chinese overseas investments, deeming the “timing for acquisition is very good.” China Railway Rolling Stock Corporation breaks ground on subway car factory in Springfield (USA). US will take action against Chinese individuals and companies involved in commercial espionage. Japanese companies worth with Japanese universities and government agencies to attract talented IT students, especially from India. Indonesia inward foreign direct investment (FDI) ranked highest among all Association of Southeast Asian Nations (ASEAN) members in the first semester of 2015. Indonesia finally opts to cancel its high-speed rail project disappointing Chinese and Japanese bidders. Foxconn balks at building electronics factory in Indonesia due to government unwillingness to provide free land. Thailand examines boosting incentives for investing in certain sectors in its special economic zones (SEZs). Vietnam draws increasing FDI in its processing and manufacturing sectors especially from Korea. Mongolian Minister negotiating deal over Tavan Tolgoi throws cold water on idea a deal will be struck soon. APEC creates fund to support open trade and investment in mining and sustainable mining.
August 29th, 2015
China dials up new leadership at its telecommunications giants. Tsinghua Unigroup attempts to chip away at opposition to its purchase of Micron Technology. China investors see stable investment returns on offer in the UK. China’s Yunnan province pushes infrastructure construction to support the One Belt, One Road (OBOR) and other initiatives. Alibaba given 6-month extension to operate in Taiwan while Taiwan appellate body review its case. Japan strives to strengthen its medical and pharmaceutical firms. Japan and Mekong River nations adopt “Mekong Industrial Development Vision.” Japan and China competition to build high-speed railway in Indonesia reaches its final stages. Korea touts its advantages and pursues new policies in order to double inward foreign direct investment (FDI). Korea orders recalls of select Ferrari cars, Harley Davidson motorcycles, and Volvo trucks due to various defects. Toyota puts the brakes on Prius production in Thailand due to tariff dispute. Foreign business leaders in Thailand believe Erawan Shrine bombing will not influence FDI inflows. Investors express complain about the vagueness of Vietnam’s new foreign investment guide.
August 24th, 2015
China Banking Regulatory Commission (CBRC) revives “dead” banking sector technology rules. Chinese labor law on dispatch workers encourages firms to turn to contract manufacturing. High-tech firms turn to Hong Kong as new host destination. National Development and Reform Commission (NDRC) and CBRC issue guidelines designed to prod banks to support major overseas and domestic projects. China injects massive amount of capital into China Development Bank and the Export-Import Bank of China to bolster resources for outward investment and overseas projects. Sri Lanka stresses it still welcomes Chinese investment. Korean coal-fired power plant project in Kazakhstan may be going up in smoke. Korea’s LG Group and its affiliates look to deepen their involvement in Western China on the back of good government relations and favorable Chinese government policies. Indonesia optimistic about inward FDI in manufacturing and will offer special policies to attract more. Vietnam will give private investors greater stakes in select state energy companies. Vietnam courts foreign public and private involvement in its tuna and seafood industries
August 24th, 2015
Inward FDI into China in July shows decent growth. China’s State Council works on the distribution of a draft automobile sector antitrust policy. Vice Chairman of the Shanghai Association of Enterprises with Foreign Investment lauds contribution of foreign firms to Shanghai’s innovation. Qualcomm partnership with Semiconductor Manufacturing Industrial chips away at competitors. Tsinghua Unigroup is on the move to bolster China’s domestic telecommunication chip capabilities. Chinese outward foreign direct investment soars in first six months of the year versus the prior year. Chinese firms pour money into Germany. Mitsubishi Materials works to settle restitution cases with Chinese laborers. South Korean companies very willing to work in North Korea. Japanese and Chinese battle to win high-speed rail opportunity in Indonesia. Indonesia Investment Coordinating Board (BKPM) one-stop service wins new rights to permits for the oil and gas sector and minerals and coal mining sector.
August 11th, 2015
Foreign car companies launch recalls for cars imported into and produced in China. GlaxoSmithKline rehires employee who may have revealed its bribery activities in China. China public security organs will establish network security offices in leading Internet firms. Facing soaring costs at home, Chinese textile firms invest in the US to take advantage of lower production costs. Chinese firms increasingly planting agricultural investment in places like Australia. Mitsubishi Materials arrives at a settlement with conscripted Chinese workers. Japan will send high-level minister to Iran to explore investment and trade opportunities. Korean Economic Research Institute calls for government to reduce restrictions and provide better services to improve Korea’s inward FDI performance. Australian court overturns massive Adani group (India) mine, rail, and port project in Australia. Indonesia to issue new tax holiday policy. Vietnam touts growing M&A and policies to support greater foreign investment in Vietnam. Vietnam recognizes contribution of foreign firms to promoting the sale of Vietnamese goods.
August 10th, 2015
Mercedes-Benz blows out over faulty fuses. China works to boost mixed-ownership of state-owned enterprises (SOEs), giving new investment opportunities to foreign investors. China’s GSR Ventures to raise USD $5 billion to support China’s quest to acquire more technology. Korea Economic Research Institute head encourages the government to take anti-hedge fund measures. Indonesia grants PT Freeport Indonesia export license, deeming they are making progress in developing their local smelter capability. Widodo lobbies China to invest more and help Indonesia become an “Asian production base.” Chinese Consul-General promises hundreds of Chinese SOEs to invest in West Sumatra. Taiwan Investment Commission approves USD $2.78 billion of outbound investment by Taiwan firms. Vietnam pushes its firms to build up their domestic and international brand names.
July 25th, 2015
China’s utilized foreign direct investment (FDI) in first six months of 2015 increases significantly over the same period in 2014. Chinese Ministry of Commerce (MOFCOM) expects solid FDI inflow results for 2015. China’s move to create incentives for traditional gas-powered hybrids may open opportunities for foreign car companies in China. Chinese outward FDI is on a path to exceed inward FDI. Tsinghua Unicom’s pursuit of Micron raises all kinds of anxieties. Chinese FDI dominates Myanmar investment scene. U.S. Federal Reserve Bank requires China Construction Bank to shape up it anti-money laundering rules. China’s Industrial and Commercial Bank of China promises to help Kenya realize new gains. Japan’s Mitsubishi Materials apologizes for use of slave laborers during Second World War and reports suggest it may offer compensation. Japan Tobacco International faces opposition in Taiwan to massive plan investment proposal. Indonesia remains Southeast Asia’s premier FDI destination, but faces challenges in reaching 2015 targets. Thailand attracts more investment projects in July, but value of investment falls
July 19th, 2015
Food labeling scam smears name of German grocery chain in China. Tsinghua Unigroup Ltd. to bite at US chipmaker Micron Technology. China pursues investment in European Fund for Strategic Investments. Chinese solar firms invest overseas to jump trade barrier walls and diversify. Huawei connects to EU 5G Public Private Partnership. Malaysian Investment Development Authority touts the country’s jump in a Foreign Policy magazine ranking of foreign investment destinations. Malaysian officials encourage Chinese investment in non-construction sector and in building up Malaysia’s internal transportation network. Vietnam holds forum to solicit expect views on foreign investment in the agricultural sector. Vietnamese software firm gains coveted license to run wholly owned telecommunications service operation in Myanmar. Google adjusts name of disputed South China Sea reef in response to Filipino protests.