Abe Shinzo

MNCs in the News-2019-08-23

Exploiting the opening of China’s financial sector, Goldman Sachs moves to increase its ownership stake in its China securities joint venture (JV). The city of Beijing launches a plan to allow foreign direct investment (FDI) in VPN services in a trial zone by the end of 2019. Moody’s Investors Service sees the growth of China’s outward FDI slowing or even declining because of increasing global geopolitical and economic risks. To garner Chinese support over the Kashmir issue, Pakistan announces it will set up the China-Pakistan Economic Corridor Authority to fast-track Belt and Road Initiative (BRI) projects. Survey shows significant number of polled Japanese firms generally back Prime Minister Abe Shinzo’s creation of a stricter export trade regime for goods going to South Korea and feel Japan would prevail in a World Trade Organization case if Seoul filed one. Report shows that Japan became a less important source of materials and components for Korea over the first five months of 2019, though trade deficit patterns remain unchanged. Korean research institute survey reveals many surveyed Korean firms feel Japan’s trade restrictions will affect not just their sales, but also their profits. Korea’s Ministry of the Environment finds Audi Volkswagen Korea and Porsche Korea illegally manipulated vehicle exhaust emissions and penalizes and reports the firms for prosecution.

MNCs in the News-2019-06-21

China Premier Li Keqiang works to lure foreign direct investment (FDI) during the Global CEO Council in Beijing. In 2018, the deal value of European mergers and acquisitions (M&A) activity in China soared by 856 percent to USD $9.94 billion. European Union (EU)-China talks on a Comprehensive Agreement on Investment and China’s negative list show better progress than expected. Brazilian Vice President welcomes Chinese FDI in infrastructure as long as it creates jobs and respects Brazilian rules. Around the time of the G-20, French President Emmanuel Macron will discuss issues about the Renault-Nissan alliance with Japanese Prime Minister Abe Shinzo. Numerous Japanese corporate subsidiaries in the United States have voiced opposition to Donald Trump’s proposal to slap tariffs of 25 percent on another $300 billion of Chinese products. Tokyo has requested Seoul to establish an arbitration panel consisting of representatives selected by other countries to help deal with their wartime forced labor compensation dispute. Seoul prepared to block a deal that would sell Taihan Electric Wire to a Chinese company because it deems Taihan’s high-voltage cable technologies a “‘national core technology.’”

MNCs in the News-2019-01-11

During a meeting with Tesla CEO Elon Musk, Chinese Premier Li Keqiang stated his country welcomes investments from foreign firms and is open to deepening cooperation with them. An official from the Beijing Central Business District (CBD), which is undertaking steps to attract higher quality firms, touts foreign direct investment (FDI)’s contribution to CBD. Chinese merger & acquisition (M&A) activity in the US in 2018 plummets. Rising Committee on Foreign Investment in the United States (CFIUS) scrutiny of foreign attempts to purchase minority stakes in American companies has fueled a major drop in Chinese venture funding of United States (US) start-ups. Chinese FDI pours into Latin America as US presence wanes and Latin American technology firms thirst for funding. South Korea President Moon Jae-in accuses Tokyo of politicizing recent court decisions over wartime labor. Meeting with his British counterpart, Japanese Prime Minister Abe Shinzo urges the United Kingdom (UK) to avoid a no-deal Brexit. During his New Year Press conference last week, South Korean President Moon reiterated his support for economic cooperation between the two Koreas and called for a lifting of economic sanctions. State-run Korea National Oil Corp. (KNOC) moves to liquidate overseas resources development projects that generated huge losses for the firm in 2017.

MNCs in the News-2018-11-23

China working to improve opportunities for foreign players in its insurance sector. Shanghai looks to improve services for foreign companies which have a major presence in the city and are a major contributor to its economic successes. European Union moves forward on inward foreign direct investment (FDI) screening mechanism that is not directed at, but has a lot to do with China. Pursuant to Foreign Investment Risk Review Modernization Act (FIRRMA) the United States (US) Committee on Foreign Investment in the US (CFIUS) will now screen much smaller deals in various sectors newly deemed critical, greatly affecting Chinese deals. Philippines’ President Rodrigo Duterte’s move towards China does not seem to have paid off in terms of increased Chinese outward FDI (OFDI) and infrastructure in the Philippines. US prosecutors investigating Mitsubishi UFJ (MUFJ) for potentially allowing North Korea to launder money. To push forward infrastructure projects, Japanese Prime Minister advisor meets with Filipino officials soon after visit of Chinese President. South Korean manufacturers turn attention from China to Vietnam which offers a better policy, tax, and labor cost environment. South Korea’s POSCO Engineering & Construction Co.-led consortium wins major power plant contract in Malaysia.

MNCs in the News-2018-11-09

The head of China’s State-owned Assets Supervision and Administration Commission recently announced China welcomes foreign direct investment (FDI) in China’s state-owned enterprises (SOEs). At World Internet Conference, China restates its familiar call for “cyberspace sovereignty,” but most focused on absences of key Chinese political leaders and high-level business representatives. Lego scores another victory in China in its efforts to protect its intellectual property rights (IPR). Australia blocks Hong Kong CK Group’s USD $9.4 billion bid for APA Group gas pipeline operator due to national security concerns. In the wake of Australia’s recent rejection of CK’s acquisition APA group, its foreign minister went to Beijing to reaffirm Australian’s receptivity toward Chinese inward FDI (IFDI). Brexit and United Kingdom (UK) FDI review reforms have raised Chinese anxieties about potentially adverse implications for its FDI in UK leading UK to state it intends to continue welcoming Chinese IFDI. Despite growing criticism over its passivity regarding the Rohingya issue, Japan continues to support Myanmar infrastructure development, fearing isolation will only drive Naypyidaw towards Beijing. Japan bolsters its investment and infrastructure corporation with the Philippines while elevating strategic partnership. Korea has denied Tokyo’s World Trade Organization filing that it breached international trade rules by providing subsidies to Korean shipbuilders.

MNCs in the News-2018-11-02

Shanghai moves to make life easier for foreign direct investment (FDI) as anxieties grow that FDI may leave. Germany’s Federation of Germany Industries’ position paper calls for German businesses in China to limit their dependence on China. Australia’s exclusion of firms with government ties from its new 5G network mean no involvement by Huawei, leading to Chinese government criticisms. Chile signs on to China’s Belt and Road Initiative. During an official meeting between Japanese Prime Minister Abe Shinzo and his Indian counterpart Narendra Modi, Tokyo pledged USD $2.8 billion in new loans for seven projects in India including the construction of a high-speed shinkansen system and roads. Recent South Korea Supreme Court ruling that Japan’s Nippon Steel must pay compensation to Korean World War II forced laborers leaves roughly 70 Japanese firms facing similar cases on edge. Samsung pledges to increase its contribution to Vietnam while Vietnam pledges to keep improving business environment for the firm.

MNCs in the News-2017-03-17

Foreign companies change “government” relations practices in China to adjust to the newfound role of the Communist Party. Boeing will work with Commercial Aircraft Corporation of China Ltd., a Chinese state-owned enterprise, to construct a Boeing 737 completion center near Shanghai. During his visit to China, Saudi Arabia’s King Salman signs agreements with a potential value in the tens of billions of dollars, many relating to the construction of petrochemical facilities in China. The head of the People’s Bank of China decries irrational investments in defending the government’s recent imposition of capital controls. Japan and Saudi Arabia agree to study the value of special economic zones as a means to attract Japanese companies to Saudi Arabia. Toshiba’s financial woes, relating to its troubled American Westinghouse unit, are raising all kinds of national security, job, and financial issues for the Japanese and American governments. Japan may use various economic laws to ensure Toshiba’s memory chip unit is not sold to a bidder that may represent a national security risk. Myanmar authorities give KB Kookmin Bank permission to establish a cooperative microfinance venture in the country. Doosan Heavy Industries & Construction Co. wins a USD $408 million deal to upgrade an existing Indonesian power plant. Indonesia runs major investment promotion event in Singapore. Indonesia Tourism Ministry courts Singaporean investment in North Sumatra airport and other infrastructure.

MNCs in the News-2017-01-13

China’s inward foreign direct investment (FDI) increases moderately over 2015, with a major proportion going into the service sector. Chinese outward FDI (OFDI) soared in 2016, hitting new records, with Europe, above all, Germany a key destination. Jack Ma meets with US President-elect Trump and touts Alibaba’s potential to create one million jobs. Takata pleads guilty to one criminal charge and will pay USD $1 billion in fines in conjunction with falsifying test data about its faulty airbags. Honda will invest USD $372 million in an existing facility in Ontario, Canada. Japanese energy producer JX Nippon Oil & Gas and NRG Energy Inc. complete the world’s biggest carbon capture system in Texas. Apparently prodded by Trump’s protectionist rhetoric, Samsung Electronics will build its first home appliance plant in the US. Indonesia modifies it mineral export ban policy because of its challenging economic growth situation. Indonesia and Japan will discuss business and investment cooperation during a visit by Japanese Prime Minister and during post-visit meetings between Indonesia’s President and a large delegation of Japanese CEOs

MNCs in the News-2016-11-11

China approves cyber security law despite intense lobbying by foreign business associations, firms, and governments. China reportedly is considering allowing foreign investment banks to have wholly owned operations on the mainland. China Development Bank Capital (CDBC) and Microsoft have formed a partnership to “promote technology innovation and smart city development.” Germany withdraws approval for a group of Chinese investors’ 670 million euro purchase of Aixtron. The German government is seeking greater powers to investigate and potentially block Chinese acquisitions of German companies. China has expressed concerns about Germany’s seeming new protectionist stance towards Chinese investment. German Vice Chancellor Sigmar Gabriel speaks strongly about protecting German interests and gets the cold shoulder during a visit to China. High-level officials from the United Kingdom (UK) and Britain meet to discuss new investment collaborations in the financial sector. The Japanese government pushes Japanese firms to invest in Russia to help facilitate a resolution of the Russo-Japanese Northern Territories/Southern Kurils dispute. Japanese Trade minister Hiroshige Seko and Russian Far East Development Minister Alexander Galushka agreed to promote economic development projects in Russia’s Far East ahead of a summit between their leaders in December. Japan’s JFE Engineering Corporation will start constructing greenhouses in Primorsky Krai in cooperation with a Russian federal state enterprise. The President of the Japanese chambers of commerce in Britain and the European CEO of Mitsubishi warns that more than general assurances about Brexit are needed to comfort Japanese firms in the UK. Korea and Oman establish basis for Korean companies to participate in almost $27.1 billion in energy and infrastructure projects in Oman. Korea Gas Corporation moving forward on cooperation with China National Petroleum Corporation on natural gas trading, joint international projects, and information sharing. Chinese foreign direct investment (FDI) in Indonesia has jumped following repeated high-level meetings between the Presidents of the two countries. Donald Trump’s victory dampens the opportunities for US energy companies in Indonesia. Jack Ma opts to serve as an advisor to Malaysia rather than Indonesia about the e-commerce economy. Chinese technology giants like Alibaba, Tencent, and Wanda Group have expressed their interests in participating in Malaysia’s digital economy plan. During his recent visit to China, Malaysian Prime Minister Najib Razak signed 14 memorandum of understandings totaling USD $47.5 billion. Pundits note both future opportunities and risks relating to increase Chinese investments in Malaysia.

MNCs in the News-2016-09-30

China’s Ministry of Commerce (MOFCOM) dismisses foreign business concerns about the investment environment for foreign direct investment (FDI). Microsoft, whose Windows 8 was banned two years ago on government computers, is now working on a localized government operating system for China. Outward FDI (OFDI) by Chinese financial institutions jumped 26 percent in 2015 while Chinese OFDI hit a new record. Chinese private firms become the dominant Chinese overseas direct investors in 2015. ChemChina seeks European Union approval of its immense acquisition of Syngenta AG. The parties involved in the Hinkley Point nuclear power complex project, which involves a major Chinese role, finally signed a contract for the deal. China and Thailand struggle to settle issues pertaining to a major joint railway project. China moves to bolster its investment, trade, and other forms of cooperation with Cuba. Japanese business delegation asks China to enhance exit procedures and antitrust rules. Indonesia may impose more than USD $400 tax bill on Google. Foreign pharmaceutical companies pour big money into Indonesia in anticipation of new health care opportunities. FDI accounts for more than 30 percent of Malaysian investment in the first six months of 2016. Thailand is moving to tighten tax collection rules for foreign internet and technology firms. Vietnam moving towards eliminating various caps on foreign involvement in its banking sector. Vietnam’s planned divestiture of Vinamilk could be a very positive sign for the country’s privatization drive.

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