MNCs in the News*

September 22nd, 2018
Reacting to Apple’s statement that new tariffs on Chinese goods would affect many of its products, United States (US) President called on it to manufacture more goods in the US. 16 members of US House of Representatives send letter to Google to inquire about its plans to comply with China’s search and surveillance policies. To improve its market prospects, Japan’s Toyota will share and license hybrid technology with China’s Geely. Japan’s Mitsubishi and a subsidiary of Singapore’s state-backed investment company Temasek have formed a joint venture for massive urban development projects. In Seoul, Indonesian President Joko Widodo calls for Korean companies to partner with Indonesia in the area of advanced technology. Korea’s state-owned Korea. Korea’s state-run company Korea Gas Corp. transforms into global player in energy exploration, development, and infrastructure.
September 11th, 2018
International Monetary Fund (IMF) calls China’s investment and service trade environment “very restrictive.” US tariffs and environmental rules severely constrain Chinese firms, creating space for Japanese chemical firms. Muji pondering moving HQ from the United Kingdom (UK) due to tax and trade complications flowing from Brexit. New South Korea government penalty scheme relating to recalled vehicles following BMW’s massive recall raises trade secret loss anxieties among South Korean firms. Meeting between high-ranking Hyundai official and Indian Prime Minister Moti leads Hyundai to promise a leading role in helping develop India’s electric vehicle industry.
August 29th, 2018
China cannot rely on United States (US) business community in China to pressure Washington to temper the current trade war. Foreign companies’ desire to take full control of their securities and financial management companies in China may be impeded by the US-China trade war. US-China trade war forces foreign companies in China at the lower-end of the value added chain to consider all kinds of new strategies. Chinese outward foreign direct investment (FDI) in 2018 rises by 14.1 percent in dollar terms over the same seven month period in 2017. Nissan to deepen its China ties due to uncertainties in the US as well as in Europe relating to Brexit. Daiwa Securities will move to set up majority owned securities unit in China due to the revision of foreign ownership stake limits. South Korea to investigate foreign companies over their practices to protect customer data. South Korea Innovation begins construction of electric vehicle battery factory that will be the first JV involving a Chinese automaker and a foreign battery maker.
August 27th, 2018
China’s Ministry of Commerce (MOFCOM) reported that inward foreign direct investment (FDI) over the first seven months of 2018 grew 5.5 percent year-over-year (YOY) with strong growth in inward FDI (IFDI) in high-tech industries. MOFCOM noted that there was major growth in IFDI from countries such as the United Kingdom (UK), South Korea, and Japan over the first seven months of 2018 YOY. Hundreds of Google employees raise concerns internally about the firm’s plans to produce a censored search engine for China. China National Petroleum Corporation (CNPC) takes over Total’s stake in Iran’s South Pars Phase II project as Total must abandon it due to re-imposition of United States (US) sanctions. Japanese regulators investigating Apple over allegations that it unfairly pressured Yahoo Japan to slow the expansion of online games platform. Japan makes economic cooperation with the Indo-Pacific region a diplomatic priority in attempt to counter China’s Belt and Road Initiative. South Korea places ban on over 20,000 BMWs after more than 30 engines caught fire this year due to faulty hardware. South Korean Prime Minister calls for increased cooperation with Qatar especially in infrastructure projects.
August 27th, 2018
Shenmei Energy effort to invest in United States (US) solar power plants blacks out over opposition by Committee on Foreign Investment in the US (CFIUS). Expanding Chinese investment in Bangladesh generates increasing anxieties and opposition in India. Japanese minister says Donald Trump administration’s tariff plans could stall Japanese investment in State of Indiana. MUFG Bank doubles stake in Indonesia’s Bank Danamon after having gained approval from Indonesian financial authorities. Incheon Free Economic Zone facing biggest crisis since establishment in 2003 as it continues to fail to attract FDI. After various investment offers including from Korea’s Lotte Chemical, Pakistan Chemical Manufacturers Association urges government to include chemical industry in first 100 days plan.
August 8th, 2018
Shanghai’s release of 100 policies seems to be drawing in foreign direct investment (FDI) in advanced manufacturing and benefitting foreign firms in remanufacturing. Google reportedly will launch censored search engine in China in 6-8 months. China’s National Development and Reform Commission lightens up restrictions on overseas borrowings by Chinese companies. Negative security review leads Yantai Taihai Group to drop plan to buy Germany’s Leifeld Metal Spinning AG. Japan, US, and Australia agree to invest in infrastructure projects in the Indo-Pacific in an apparent move to counter China. Japan seeks to cooperate with Moscow on construction of liquefied natural gas transfer hub in Russia’s Far East to minimize supply risks. Korean government to invest USD $1.3 trillion in 10-year next-generation semiconductor project to attract global semiconductor firms to set up plants in Korea. South Korea bolstering efforts to win bid for Saudi Arabia nuclear project after losing bid for United Kingdom construction project.
August 3rd, 2018
China’s Ministry of Commerce (MOFCOM) drafting rules that would subject more foreign direct investments (FDI) to its national security review process. Diverse United States (US) airlines move to comply with China’s order regarding the treatment of Taiwan on their websites and in maps. Chinese mergers and acquisitions activity in the US in the first half of 2018 has plummeted versus the comparable period last year due to political and other factors. Chinese investors kicking out their European soccer club investments due to Beijing’s crackdown on “irrational” overseas FDI. Rosneft, a Russian state-owned firm, files USD $1.4 billion lawsuit against Japanese and other stakeholders in Sakhalin oil and gas project. Just days after Japan passes controversial law allowing development of three new casino resorts, Genting Singapore forms five new subsidiaries in Japan. Laos to investigate possible construction flaws after dam collapse that was built by joint venture involving South Korean, Thai and Lao companies. Korea’s financial regulator helping Korean financial firms expand into overseas markets due to saturated domestic market.
July 23rd, 2018
BMW and Tesla roll forward in China as government paves the road to greater ownership stakes. Foreign financial institutions banking on increasing role in China’s Belt and Road Initiative (BRI). Cambodia’s Minister of Agriculture, Forestry, and Fisheries opined that Chinese outward foreign direct investment (FDI) in Cambodia’s agricultural sector was bearing substantial fruit for his country. Sumitomo hopes to use agreements with Japanese local government to entice Japanese manufacturers to use rental plant areas at its Vietnamese industrial parks. Takeda optimistic about getting China’s sign-off for USD $62 billion Shire acquisition deal despite concerns of Chinese retaliation over US tariffs. LG Chem plans new battery plant in Nanjing to take advantage of the Chinese government’s electric car incentives, which are expected to disappear by 2020. New investment wave expected to hit Vietnam’s textile and garment industry boosted by Vietnam-South Korea FTA.
July 19th, 2018
China’s Ministry of Commerce (MOFCOM) says inward foreign direct investment (FDI) was solid for the first six months of 2018 year-over-year. Some observers see China opening to foreign deals because of external pressure as well as slowing inward FDI (IFDI). Merkel praises Chinese market opening moves as a sign of action, not just talk. Shaanxi Ligeance Mineral Resources Co. deal for United Kingdom (UK)’s Northern Aerospace grounded apparently for national security reasons. Japanese regulators mashing Apple over forcing customers to opt for particular product/service plans. Recent report reveals Japan moves up to third in US FDI while overall FDI drops due to US government plans to toughen regulations. Taisho Pharmaceutical Holdings to raise stake in top Vietnamese drugmaker DHG Pharmaceutical as Vietnamese authorities approve removal of foreign ownership limit at DHG.Chinese government approves LG Display’s OLED display production facility in Guangzhou. South Korea and Singapore sign two agreements aimed at strengthening bilateral investments and trade by promoting collaboration between companies.
July 19th, 2018
China’s Ministry of Commerce (MOFCOM) says inward foreign direct investment (FDI) was solid for the first six months of 2018 year-over-year. Some observers see China opening to foreign deals because of external pressure as well as slowing inward FDI (IFDI). Merkel praises Chinese market opening moves as a sign of action, not just talk. Shaanxi Ligeance Mineral Resources Co. deal for United Kingdom (UK)’s Northern Aerospace grounded apparently for national security reasons. Japanese regulators mashing Apple over forcing customers to opt for particular product/service plans. Recent report reveals Japan moves up to third in US FDI while overall FDI drops due to US government plans to toughen regulations. Taisho Pharmaceutical Holdings to raise stake in top Vietnamese drugmaker DHG Pharmaceutical as Vietnamese authorities approve removal of foreign ownership limit at DHG.Chinese government approves LG Display’s OLED display production facility in Guangzhou. South Korea and Singapore sign two agreements aimed at strengthening bilateral investments and trade by promoting collaboration between companies.

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