AIIB

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-2018-04-20

China to roll out new negative lists for free-trade zones (FTZs) and other parts of the country during the first half of 2018. Foreign and publicly-listed on foreign exchanges Chinese firms move to accommodate Chinese Communist Party (CCP)’s desire for greater say. China’s Ministry of Commerce (MOFCOM) touts that Chinese outward foreign direct investment (FDI) grew while Chinese outward FDI in irrational areas has collapsed. Chinese investors pour money into American bio-tech firms for a variety of financial, political, and social policy reasons. Indonesia to rely on loans from Japanese government and public-private partnership schemes to fund USD $4.5 billion railway project. Honda experiencing complications with its CR-V recall plan in China as sales continue to drop. Seoul offers to give American carmaker General Motors USD $470 million to continue its Korean operations as bankruptcy looms. Multinational companies operating in South Korea increasingly under government scrutiny for malpractice. AIIB very interested in financing Malaysian infrastructure projects following a meeting between the AIIB President and Malaysia’s Prime Minister. Japan’s Nichirei Corp acquires 40 percent stake in Malaysia’s state-owned Cold Chain Network which facilitates the latter’s effort to address government development objectives.

MNCs in the News-2017-05-12

Germany’s top financial regulator generically welcomes Chinese investment in Germany’s financial sector. Tokyo and Beijing discuss bilateral economic relations and cooperation, as Japan fears potential spillover of China’s economic problems. India’s Finance Minister invites Japanese companies and financial institutions to engage in India’s “Made in India” initiative. POSCO and SeAH Steel join growing list of Korean multinationals joining American Chamber of Commerce Korea. Malaysian federal government’s support increases Johor’s appeal as a foreign direct investment (FDI) destination. Failure of Chinese bailout deal fuels speculation about future of Chinese investments in Malaysia. Formosa accelerates investment in USD $11.03 billion integrated steel mill project in Vietnam. Vietnam’s Prime Minister meets with Hong Kong delegation to promote infrastructure investment in Vietnam.

AIIB’s new robust policy on prohibited practices

Ms. Susan Finder
Posted: Mar 17, 2017

On 8 December 2016, about a month after my previous blogpost entitled “Chinese Companies and the World Bank’s Procurement Blacklists” was published on this website, the Asian Infrastructure Investment Bank (AIIB) re-issued its Policy on Prohibited Practices. The policy has not received much attention outside of China, but is significant for both the legal and business community. In the Policy on Prohibited Practices, the AIIB sets out its rules and procedures. Prohibited Practices are defined in Section 3.2.

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

Chinese Companies and the World Bank’s Procurement Blacklists

Ms. Susan Finder
Posted: Oct 28, 2016

The World Bank and other multilateral development banks have robust fraud and corruption policies relating to procurement and consulting services, with due process procedures that permit the accused firms to challenge the banks’ findings.

Dr. Amitendu Palit's picture

Growing Doubts about China’s Capacity to Finance Overseas Projects and their Political Implications

Dr. Amitendu Palit
Posted: Feb 15, 2016

China’s foreign exchange reserves have been declining in recent months with the surge in capital outflows and the People’s Bank of China (PBOC)’s efforts to protect the Yuan from depreciating. At US $3.2 trillion, China still holds the world’s largest foreign exchange reserves.

Dr. Jan Knoerich's picture

The Importance of China’s Financial Internationalization for the China-UK Relationship

Dr. Jan Knoerich
Posted: Oct 12, 2015

Economic relations between China and the UK have changed substantially since the last time a Chinese president visited Britain.

MNCs in the News-2015-05-29

Hewlett-Packard (HP) sells majority stake in Chinese networking division to Tsinghua University. Beijing will open its service sector to spur greater foreign investment. Blocked Twitter actively courts Chinese companies at Shanghai event. China’s Ministry of Industry and Information Technology contemplates new software security guidelines. Chinese gold miners in Sudan face unexpected loss of business opportunities due to sudden government termination order. Japanese Prime Minister Abe proposed huge increase in infrastructure financing to aid Japanese businesses and counter China. Indonesia’s Investment Coordinating Board and Indonesian Consulate General in Osaka sign agreement to cooperate on attracting Japanese investment into Indonesia’s maritime sector. Indonesia reaffirms it will takeover Total’s Mahakam gas block and a PT Freeport Indonesia controlled gold site. Vietnam expects law changes to spur new foreign direct investment (FDI) flows into its construction sector. Russia and Vietnam probe expanded investment cooperation.

Mr. Naoyuki Haraoka's picture

AIIB Infrastructure Financing and its Impact on Investment Flows to Developing Countries

Mr. Naoyuki Haraoka
Posted: May 21, 2015

The Asian Infrastructure Investment Bank (AIIB), a newly created Chinese-led regional development bank, is now attracting global attention from governments, businesses, and analysts and seems to be at the center of the debate on global governance; that is, whether it should be US- or China-led in the future. The US and Japan have opted not to join this bank since its governance and objectives remain unclear and, in particular, because it is uncertain how the AIIB will cooperate (or compete) with the existing international financial institutions such as the Asian Development Bank (ADB) and the World Bank.