Apple

MNCs in the News-2019-01-04

Foreign companies remain cautious about increasing their foreign direct investment (FDI) in China because of the risk of trade war escalation. Multinational corporations (MNCs) in China worry not only about trade war’s impact on sales, but pressures to relocate their factories. China’s National People’s Congress reviews draft law than seems to more aggressively protect foreign investor interests than a previous version. Survey reveals US businesses finding trade war leading them to face increased Chinese non-tariff barriers. China’s State-owned Assets Supervision and Administration Commission and the Chinese Academy of Social Science have produced a report that central State-owned enterprises (SOEs) are delivering equal employment benefits to Chinese and locals. Attorneys representing former South Korean forced laborers for Nippon Steel & Sumitomo Metal file for the seizure of Nippon Steel assets in Korea. South Korean government will tighten rules on the acquisition of Korean companies by foreign firms to limit technology leaks. Seoul to designate OLED equipment and chemical sector as “national core technologies” to gain influence over their sale and export.

MNCs in the News-2018-12-14

Inward foreign direct investment (FDI) into China for the first 11 months of 2018 year-over-year relatively stable. Beijing stops requiring its local governments to support the Made in China 2025 policy. European Union Ambassador to China calls on China to stop requiring companies to transfer technology for market access. Apple considers moving some production out of China due to possibility of increased tariffs on its China-produced smartphones and laptops. 2018 proves a tough year for Chinese outward FDI (OFDI) in the oil sector. Huawei accepts various UK technical requirements “to address risks in its equipment and software.” Following a Japanese government’s decision that effectively excluded China’s Huawei Technologies Co. and ZTE Corp. from public procurement, Japan’s three major mobile phone carriers Softbank Corp., NTT Docomo Inc., and KDDI Corp. plan to stop using various products from these companies. Japanese expert panel calls on Tokyo to take measures to protect the usage of consumer data. Korea Electric Power Corp. report on Northeast Asia power grid notes it would face serious challenges because of sanctions on North Korea. Beginning July 2019, Korea will impose a value-added tax on a wider range of services provided by global technology giants to level the playing field for Korean firms.

MNCs in the News-2018-11-30

China moving to improve the business environment for foreign companies, especially in Free Trade Zones (FTZs). China’s National Development and Reform Commission (NDRC) announces that it will permit foreign banks in China to apply for approval for a quota increase in their medium to long-term foreign debt for 2019. Per Donald Trump, the United States may take a bite out of Apple products coming from China which previously have escaped a special 10 percent tariffs on Chinese goods. China’ Huawei finds Kiwis not so soft after New Zealand’s intelligence agency blocks it supplying 5G mobile network equipment to the major domestic telecom provider. Maldives’ new finance minister criticizes true price of Chinese projects, which has led to the Maldives returning to an “India First” policy. Japan’s Mitsubishi Heavy Industries ordered by South Korea’s Supreme Court to pay USD $365,500 in damages to two groups of South Koreans for forced wartime labor. In post-Carlos Ghosn arrest meeting, France suggests to Japanese official “the head of the Renault-Nissan alliance should be from the French automaker.” European firms with business in South Korea push Seoul to upgrade the country’s business regulations to reach international standards. At the 6th Association of Southeast Asian Nations (ASEAN) Connectivity Forum, South Korea’s secretary-general of the ASEAN-Korea Centre states Korea is looking to improve relations with ASEAN countries especially in infrastructure area.

MNCs in the News-2018-10-26

China’s Ministry of Commerce (MOFCOM) says the country will accelerate its efforts to pass a new foreign direct investment (FDI) law that promotes and protects FDI. China’s Supreme People’s Court plans to act to improve the intellectual property rights protection system in China. Following Apple, Amazon and Super Micro call on Bloomberg to retract its story about Super Micro hardware hacked by Chinese intelligence agencies. United States (US) asset sellers and brokers turn away from Chinese buyers because of the delays and uncertainties that arise when Chinese companies are involved in FDI in the US. Multinationals contemplate moving supply chains out of China if the impact of US tariffs on China becomes too severe. Despite his close links with Saudi Arabia, Masayoshi Son cancels his speech at the Future Investment Initiative after Saudi Arabia admits the killing of journalist Jamal Khashoggi. US Committee on Foreign Investment in the United States torpedoes sale of Japanese Italian subsidiary to a Chinese firm on unclear grounds. Fears of the adverse economic impact of the US-China trade war, US rate hikes, and rising oil prices spur Seoul to announce economic package to fuel jobs and investment. Korean builder Dealim Industrial wins major engineering, procurement, and construction ammonia plant deal in Saudi Arabia.

MNCs in the News-2018-09-14

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.

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-2018-05-11

Apple denies taking a bite out of its customers. Official Chinese data indicate that Chinese outward foreign direct investment (FDI) grew healthily in the 1st quarter of 2018. China Three Gorges charges up to take full control of Portugal’s EDP which is drawing political scrutiny. Chinese investment in Malaysia big election issue. British government proposes USD $18.2 billion in loans for Hitachi’s Wales nuclear plant. Uniqlo to enter Indian market in fall 2019 as Indian government initiatives attract foreign retailers to the country. General Motors to move Asia-Pacific headquarters to South Korea to show Seoul commitment to its revitalized Korean operations. Elliot seeking legal action against Korean government for USD $670 million it claims to have lost from merger of two Samsung affiliates. Mahathir says Malaysia may renegotiate some deals with China following his coalition’s victory.

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-2018-03-02

Apple stores key for accessing Chinese users iCloud data in China raising human rights and privacy concerns. Committee on Foreign Investment in the United States (CFIUS) opposition causes Xcerra to terminate sale to Chinese investment fund. Chinese automakers not braking on their overseas expansion despite legal and regulatory issues facing outward foreign direct investment (FDI). Shanghai government takes over CEFC China Energy. Toyota to build next generation of Auris model cars in England despite worries about effect of Brexit. Kubota Corp. to spend over USD $3.1 billion on three new US production plants in a bid to mitigate foreign exchange risks and jump market barriers. Mounting pressure in the US to impose trade restrictions on various Korean-made products cause Samsung Electronics to consider more US based production facilities. Kumho Tire under pressure to find new majority shareholder given opposition to Chinese investment in a firm that operates defense businesses. Foreign investors charged up about investment opportunities in Indonesian electric vehicle battery sector because of the country's backward energy infrastructure and battery technology. Indonesia's BIBU plans to work with foreign partners/investors to build a new airport in Bali subject to Ministry of Transportation approval. Russia proposes joint innovation fund with Thailand to increase investment in technology. Najib Razak announces Saudi Arabia's state-owned oil and gas conglomerate Aramco will invest USD $7 billion into Malaysia before March 31. Vietnam approves Vietcombank's sale of a 10 percent stake to foreign investors as Hanoi rolls back restrictions on foreign investment in the sector.

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