Angela Merkel

MNCs in the News-2020 October

China’s Ministry of Commerce (MOFCOM) says that inward foreign direct investment (FDI) increased 5.2 percent for the first nine months of 2020 when compared to the same period the prior year. China’s National People’s Congress Standing Committee approves revised export control law. Germany says reciprocity needed if there is to be a European Union-China investment agreement and notes barriers facing European companies in China remain too high. State-owned Assets Supervision and Administration Commission (SASAC) of the State Council points out Central State-owned Enterprises (SOEs) contribution to China and the realization of is 13rd Five-Year Plan. Sweden bans Huawei and ZTE from its core 5G mobile networks. Italy prevents Fastweb, the Italian unit of Swisscom, from using Huawei equipment in its core network. Japan will not participate in US initiative to block Chinese companies from participating in its telecommunications systems. Japan’s NEC Corp. will support United Kingdom government in its effort to develop a next generation 5G wireless network. Consortium led by Japan’s Sumitomo Corp. will develop massive $4.29 billion smart-city project in Hanoi. Mitsubishi Motors will work with Thailand agency to develop system that would allow electric vehicle batteries to power homes. Korean Fair Trade Commission to set up plan to investigate Google for potential abuses of its mobile operating system. Seoul to require Korea Resources Corp. to sell off certain assets to improve its financial condition. Samsung Fire & Marine and Samsung Life face criticisms for support of coal projects and investments through project financing, bonds, and insurance underwriting. Korea’s Doosan Heavy Industries & Construction signs $2.2 billion contract with Vietnam’s VAPCO for massive coal power plant.

MNCs in the News-2019-09-06

On the eve of German Chancellor Angela Merkel’s visit to China, China’s Ministry of Commerce (MOFCOM) reports German foreign direct investment (FDI) in China grew more than 60 percent over the first seven months of 2019 year-over-year. Chinese media delivered some packaged criticisms against FedEx for the latter’s alleged shipments of controlled goods and rerouting of packages destined for Huawei. Relatively small-scale protests took place in three Kazakhstan cities against potentially questionable Chinese factory FDI. The United States (US) concludes declaration with Poland for the rigorous evaluation of foreign suppliers involved in 5G networks which some see as directed at China and Huawei. Nissan considers leaving Korea as Korea-Japan frictions make its challenging situation there even worse. Uniqlo partners with the International Labor Organization (ILO) to support research on labor markets and social security systems in some of its production hubs in South and Southeast Asia. Korean economic difficulties due to frictions with Japan encourages Hyundai union to settle with management without a strike. Korean government official meets with LG Group and SK Group executives to try to get them to resolve trade secrets dispute that LG Chem has brought to the US International Trade Commission.

MNCs in the News-2018-08-03

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.

MNCs in the News-2018-07-13

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.

MNCs in the News-2018-07-13

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.

MNCs in the News-2017-07-07

Speakers at event in Beijing argue greater market openness in China might facilitate greater Chinese outward foreign direct investment (FDI) in the United States (US). Iranian, Chinese, and French, public and private firms, sign massive USD $4.8 billion deal to develop Iran’s South Pars (SP11) gas field. US considers applying economic sanctions on Chinese companies that do business with North Korea even if such activities are not prohibited by the United Nations Security Council. Japan and EU agree to broad outlines of new free trade agreement against the backdrop of US protectionist turn. China’s growing labor shortages, flowing from government policies, among other things, provide Japanese robotic manufacturing companies with investment opportunities. Hyundai Heavy Industries signs memorandum of understanding with state owned Saudi Aramco for engine plant in Saudi Arabia. Joint Korean and US Chambers of Commerce business summit results in Korean firms investing USD $12.8 billion in US. PT Freeport’s contract extension yet to be decided by Jakarta contrary to some media reports. Tender for Kuala Lumpur-Singapore high-speed rail attracts strong global interest from potential bidders. Malaysia’s Ministry of Finance issues Request for Proposal for firms interested in developing the Bandar Malaysia project. Singaporean Prime Minister Lee Hsien Long and German Chancellor Angela Merkel discuss enhancing defense, cyber security and trade ties between both countries. Vietnam to cooperate with Saudi Arabia in renewable energy projects, reflecting country’s bid to increase electricity from renewable energy sources. Real estate FDI second most popular sector for foreign investment in Vietnam because of economic growth and new government policies.

MNCs in the News-2016-06-17

China’s inward foreign direct investment (IFDI) shows a slight decline in May year-over-year (YOY), though the figures for the first five months of 2016 showed a moderate increase (YOY). Chinese Premier Li Keqiang tells German officials and executives that China plans to improve the investment environment for them as well as others. In China, German Chancellor Angela Merkel calls for independent judiciary and level playing field for foreign firms. XpressWest unilaterally terminates its contract with China Railway International for the construction of a high-speed railway linking Las Vegas and Los Angeles. China National Chemical Corp. (ChemChina) resubmits its Syngenta deal to the Committee on Foreign Investments in the U.S. for national security review. South Korean investigators descend on Lotte Group in connection with allegations of a slush fund. Korea and Azerbaijan agree to expand economic cooperation in areas like investment and infrastructure. South Korea plans to reform government-run energy companies to improve their financial soundness and operating efficiency. Indonesia and Japanese oil giant Inpex reach a deal on the multi-billion dollar Masela onshore liquefied natural gas (LNG) plant which may bring more new opportunities for Japanese business to invest in Indonesia. Japanese firms look very favorably upon Vietnam as an investment destination.

MNCs in the News-2015-11-06

Chinese Premier Li Keqiang promises better environment for German firms in China while seeking greater contributions from them at home and abroad. China announces, albeit with caveats, it will expand negative list system from coastal to interior areas. China’s four free trade zones (FTZs) experience boom in newly registered entities. China’s National Development and Reform Commission moves to draft clearer antitrust guidelines. China promises special operation to protect Disney trademark. Google and other blocks tech firms continue to seek opportunities in China. United States Trade Representative Michael Froman emphasizes TPP’s digital rules are not just about China. China’s China National Nuclear Corp. glows about possible mega nuclear deals with Argentina. HKND plans to move forward with its massive Nicaragua canal plan next year. Takata loses its best client and faces other US penalties for its deceptive actions. Japanese government lobbies Malaysia to go with Japanese high-speed rail option. Korea lobbies foreign firms to set up in Korea as a strategic base to access other countries with whom Korea has free-trade agreements. Volkswagen’s emission data scandal does not dent German car sales in Korea, but its sales plummet. Korea’s Trade Minister promises better environment for foreign business while business representatives press Korea to work harder. Korean Fair Trade Commission investigates Siemen’s Korea healthcare division for unfair trade practices. Korea firms work to secure major expressway project in Myanmar. Indonesia touts its plan to make things better for things in its special economic zones. Indonesia and India work to build cooperation in renewable energy which should provide new investment and trade opportunities. Malaysian officials stress the flexibilities the government won in TPP negotiations and the gains to be had for Malaysian companies. Malaysia’s Prime Minister emphasizes Malaysia’s strong place as a center for Islamic finance. Kedah state government in Malaysia encourages more investment from and cooperation with Qingdao.

MNCs in the News-2015-10-30

On the eve of her trip to China, German Chancellor Angela Merkel faces pressure to push German business interests. Chinese and American negotiators begin another round of BIT negotiations. The City of Beijing moves to implement new rules opening the capital’s service sector to foreign investors. Tianjin orders ConocoPhillips to pay compensation to 21 fishermen who sued the firm for losses suffered as a result of the 2011 Bohai Bay oil spill. Chinese Chamber of Commerce in Germany (CHKD) survey indicates Chinese firms in Germany still optimistic. Mexico’s Jalisco state signs a deal with China Communications Construction Company that could lead to the development of a 500-hectare industrial park in Jalisco. Chinese investment in New Zealand farmland provokes backlash and a heated debate. Korea achieves its highest ever ranking in the World Bank’s business friendly countries' assessment. The World Economic Forum scores Korea poorly in terms of labor market efficiency. The Korea Electric Power Corporation lands Korea’s first big alternative energy project in the Middle East. Malaysian official encourages Malaysian firms to grasp Halal foods opportunities. Malaysia leaps ahead of Indonesia as an Islamic finance hub. Responding to business complaints, Indonesia eliminates rules requiring companies to hire 10 Indonesian workers for every foreign one. Thailand’s position as a business friendly country slips three places in latest World Bank study. Vietnam’s FDI, concentrated in the processing and manufacturing sectors, soars year-over-year. Vietnam shows major drop in World Bank’s business friendly country rankings, though change may be a result of report methodology changes.