MNCs in the News*
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.
July 14th, 2015
China tells foreign businesses to stop whining. China’s Ministry of Commerce (MOFCOM) reports that China’s three new free trade zones (FTZs) have attracted significant foreign direct investment (FDI). China’s draft cybersecurity law raises new concerns among foreign technology firms and foreign companies operating in China. China’s heavy outward FDI to and presence around Angola raise concerns among Angolans. Tokyo hosts “Mekong Five” leaders summit to promote export, investment, and infrastructure opportunities for Japanese firms. Japan looks to beat China to build the first deep-water port in Bangladesh. Thai Prime Minister Prayut Chano-Cha courts greatest Japanese investment in Thailand’s special economic zones. Indonesia’s state energy firm Pertamina asserts ownership over the Mahakam block. Indonesia to revoked thousands of unused investment permits issued between 2000 and 2006. Freeport-McMoRan moves to divest mining shares pursuant to Indonesia government regulations. Vietnam moves to build investment and business cooperation in ICT with Japan and South Korea. Vietnamese Communist Party General Secretary promises administrative reforms on tax and customs procedures to create a better investment climate for foreign businesses.
July 5th, 2015
China passes National Security Law that alarms Foreign Businesses. Food scandal makes mincemeat out of OSI (China) Holding Co.’s bottom line. Li Keqiang calls on the European Union (EU) and China to make progress on an investment treaty. By 2020, China will be world’s largest cross-border investor including foreign direct investor (FDI). China and Brazil agree to set up $20 billion fund to support “bilateral capacity cooperation.” Chinese private firms are leading candidates to takeover rescued Portuguese bank. Vietnam undertakes dramatic changes to open its economy to foreign investors in a bid to boost economic growth. Vietnam moves to unify state supervision of all investment activities including FDI. Coca-Cola finds one of its local business joint venture associations in Myanmar is not so sweet.
June 30th, 2015
China and US will exchange revised Negative Lists pursuant to their Bilateral Investment Treaty (BIT) negotiations. China undertakes various initiatives to bolster the e-commerce sector in China including opening the sector to foreign investors. Chinese steel companies contemplate investment in Southeast Asia, pushed by government and pulled by host country attractions. Taiwan’s Hon Hai will build vertically integrated supply chain in India to tap into Indian Prime Minister Narendra Modi’s “Make in India” scheme. Japanese development agency, Japanese companies, and Myanmar work together on training initiative to lay a foundation for future railway investment opportunities. Indonesia works to court Chinese and Japanese investors in labor-intensive and export-oriented areas. Outward investment from Singapore plummets 78.1 percent year-over-year in first half of 2015
June 23rd, 2015
Foreign direct investment (FDI) in China in May increases by 7.8 percent year-over-year (YOY). New York Times expects Chinese leaders to take heed of foreign business opposition to proposed restrictive Chinese policy measures. Cisco touts plan to invest US $10 billion in China to fund innovation, equity investment, and research and development. China’s National Development and Reform Commission (NDRC) may turn its attention to cases similar to Qualcomm where there is suspect abuse of intellectual property rights (IPR). China’s Ministry of Industry and Information Technology expands opportunities for foreign investors in e-commerce sector. Stabilized bilateral political relations prop up Japanese FDI in China while China’s less appealing economic prospects and labor issues spur a decline. China’s outward FDI continues to surge with massive increases in Chinese FDI in the EU. Australian government touts investment benefits of recently signed China-Australia Free Trade Agreement
June 22nd, 2015
Zhejiang Province/Financial Times study suggests foreign investors see continued opportunities in China, but still expect certain policy improvements. Premier Li Keqiang courts high-level foreign executives to participate in China’s modernization and promises a supportive environment. China continues seeks independence from foreign radio frequency identification chip companies and their technologies. European Chamber of Commerce in China survey reviews pessimism among European Union (EU) investors in China. Chinese company strikes deal with Russia’s Transbaikal Regional Government to develop 115,000 hectares of uncultivated land. Indonesia seeks to improve its World Bank Ease of Doing Business Survey ranking. Indonesia will limit foreign ownership stakes in its banks. Vietnam Capital Markets Working Group presses government to pursue new policies to facilitate marketization of its State-owned Enterprises
June 22nd, 2015
KFC seeks to roast those making false charges against it. China’s proposed law for controlling nonprofits has potentially severe negative ramifications for foreign business associations. European Chamber of Commerce in China challenges the draft National Security Law and its potential negative implications for China. China’s National Development and Reform Commission (NDRC) is drafting guidelines pertaining to the abuse of intellectual property rights (IPR). China’s State Administration of Taxation acts to create supportive tax treaty environment for Chinese firms overseas. China National Cereals, Oils, and Foodstuffs Corp. (COFCO) states it will commit resources and manpower to support China’s Silk Road Economic Belt (SREB) and 21st Century Maritime Silk Road Initiative (MSRI). Korea Fair Trade Commission looks into questionable sales practices by Volkswagen Korea. Middle East Respiratory Syndrome (MERS) disrupts Korean government initiative to build closer investment, trade, and business links with the Middle East. Indonesia’s Investment Promotion Board gives greater attention to Japanese foreign direct investment. Vietnam moves to give United Overseas Bank a license to open a wholly foreign owned foreign bank.