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Making Signals out of Tesla Turns and its Implications for Foreign Firms

Tesla’s top brass, employees, and shareholders must be charged up about the surfeit of good news in the People’s Republic of China (PRC) over roughly the past three months after the world’s most famous electric vehicle (EV) firm hit a slew of potholes there. In late April, PRC Premier Li Qiang hosted Tesla CEO Elon Musk.

Dissecting the Flawed Dissin of No Delisting…of Chinese Companies

The United States (US) Public Companies Accounting Oversight Board (PCAOB), part of the Securities and Exchange Commission, has a variety of duties, one of which is to “inspect registered public accounting firms’ audits and quality control systems.” It had been unable to do this, however, in the case of many US-listed Chinese companies because Beijing would not permit any accounting firms to share Chinese audits.

MNCs in the News-2021-September

China Ministry of Commerce (MOFCOM) looking at negative list for cross-border services trade in the country’s free trade zones (FTZs). China’s Ministry of Industry and Information Technology publishes draft regulations relating to the classification of data and data export restrictions. American Chamber of Commerce in Shanghai indicates members doing well in China, optimistic about their revenue prospects, and have little intention to move outside of China. High-level Chinese official says Pakistan needs to provide high-level security assurances for China-Pakistan Economic Corridor (CPEC). Chinese outward foreign direct investment (FDI) flows into India severely constrained by bilateral tensions, though some Chinese mobile apps have found new ways to resume operations. COSCO Shipping Ports, to acquire a 35 percent stake in container terminal at the Port of Hamburg. To settle a Japan Fair Trade Commission investigation, Apple modifies the payment policies for some App Store apps. Japan protests South Korean court order forcing Mitsubishi Heavy Industries Ltd. (MHI) to sell assets to provide compensation for wartime forced labor. Samsung calls upon United States (US) to increase tax incentives for its semiconductor FDI in the US. European Commission representative travels to Korea to encourage Korean semiconductor markets to establish operations in the European Union. US Department of Commerce demands confidential business information from Korean chipmakers because of concerns about automobile sector chip shortages. China’s measures to limit online gaming time for young gamers have potentially big longer-term implications for Korean gaming companies.

MNCs in the News-2021 January

China receives the largest amount of inward foreign direct investment (FDI) in 2020. China’s 2020 revised catalog of encouraged FDI takes effect increasing the number of encouraged sectors. China issues rules to counteract foreign extraterritorial sanctions affecting its nationals and companies. Renewable energy investments dominate China’s Belt and Road Initiative (BRI) energy infrastructure investments in 2020, though coal remains prominent. India makes ban on dozens of Chinese mobile phone apps permanent due to national security and data privacy concerns. China asks India to clarify its permanent ban against Chinese mobile apps. Japan creates English-language, one stop shop to help foreign financial firms set up operations in Japan. United States (US) sanctions against Huawei and limits on Huawei’s involvement in foreign telecommunications infrastructure projects led Japan’s Sumitomo to turn elsewhere for business. Brexit deal between United Kingdom (UK) and European Union (EU) will keep Nissan producing electric vehicles in the UK. Japan unconvinced Korean President Moon Jae-In’s labeling of a 2018 Supreme Court decision on corporate assets as “undesirable” will solve anything. The head of GM Korea emphasizes labor issues as one of the factors that reduce South Korea’s appeal as a destination for FDI. SK Innovation to invest $895 million into a battery plant in Georgia, a move some feel is about winning a case before the US International Trade Commission. Daewoo Engineering & Construction wins major port facility contracting deal in Iraq. Korea Hydro & Nuclear Power gets contract for major dams in Pakistan.

MNCs in the News-2017-06-09

At the 5th Global CEO Roundtable Summit, Chinese Premier Li Keqiang states that his government will move in several areas to improve the environment for foreign businesses. China’s Ministry of Commerce (MOFCOM) dismisses European Union (EU) Chamber of Commerce in China criticisms of China’s investment environment while opining China still welcomes European investment. ZTE Nigeria denies it is abusing expatriate quota limits and touts its employment practices in the country. Nomura Holding Inc. acquires Venezuelan state oil bonds for USD $100 million provoking strong denunciations by the political opposition. Western Digital abandons plans for a majority share in Toshiba chip division while trying to use the International Court of Arbitration to block Toshiba’s creation of a separate memory chip subsidiary. Hyundai Motors joins smart car partnership with Baidu to foster better Korean-Sino relations. Hyundai Samho Heavy Industries establishes joint venture with Zvezda Shipbuilding to service Russian state-owned enterprise ship needs. Chinese Ambassador to Indonesia seeks support from Indonesian Vice President to implement Jakarta-Bandung bullet train project. United States President invites Thai Prime Minister to visit White House in July to discuss investment and other issues. Sale of Petronas’ 49% share in offshore gas block advances to second round despite political opposition. International Trade and Industry Minister Mustapa urges Malaysians to adopt rational attitude towards its local equity ownership policy. IE Singapore signs memorandum of understanding with Myanmar Investment Commission. Secretary of Ho Chi Minh City Municipal Party Committee welcomes more US investment. Vietnamese Prime Minister promises to improve business environment of his country to attract more Japanese investment.

MNCs in the News-2015-10-02

Chinese government agencies stress to foreign businesses that they will do more to create a supportive investment environment. China investigates Schindler for possible bribery. Non-governmental organization calls attention to alleged mistreatment of workers at Apple supplier. China’s Ministry of Commerce fines Bombardier and CSR Nanjing Puzhen, for creating a joint venture prior to obtaining necessary approvals. MOFCOM hits Microsoft and its Xbox game console partner Shanghai Oriental Pearl Media for minor violation of antitrust rules. Private and high-tech Chinese firms achieve a newfound high profile in the business delegation accompanying Chinese President Xi Jinping on his state visit to the US. Unisplendor takes 15 percent stake in Western Digital. Indonesia leaning towards China for Jakarta-Bandung medium-speed rail, but keeps the door open for Japan. Foreign investment in Indonesia’s commodity sectors like mining stagnates. At the 13th World Chinese Entrepreneurs Convention, Indonesia calls for Chinese investment in value added manufacturing, infrastructure, and downstream activities. The European Association for Business and Commerce says European firms still see Thailand remains an attractive destination for investment. Singapore’s state-linked infrastructure firm Sembcorp will join with Bangladesh to build a power plant. Vietnamese industrial parks prove successful in drawing in foreign investment. Vietnam becomes a leading investor in Cambodia.

MNCs in the News-2015-09-25

China announces plan to take its “Negative List” nationwide by 2018. Top Chinese leaders stress China’s continuing interest in attracting foreign direct investment. Analysts see Chinese President Xi Jinping’s meetings with hard-pressed American tech executives as a ploy to fend off US commercial espionage sanctions. Cisco moves to strike partnership with Chinese server maker Inspur in order to regain lost ground in China. Microsoft strikes partnerships with politically connected Chinese firms to bolster its business opportunities in China. Boeing strikes multi-billion dollar deal with Chinese firms and will build 737 completion center in China. US Chamber of Commerce executive expresses discontent with China’s new offer regarding a bilateral investment treaty (BIT). Chinese premier Li Keqiang encourages great outward investment and activity by Chinese SOEs. British Chancellor of the Exchequer George Osborne pushes greater Chinese nuclear investment in the U.K. China and France agree to set up joint investment fund to target third countries. Korean government will probe whether Volkswagen and Audi cars sold in Korea have software that manipulates emissions data. Indonesia continues to strike investment and financial deals with China despite cancellation of high-speed rail plan. Indonesian government plans to give investors more opportunities in downstream energy sector. Foreign firms struggle with Indonesia’s ban on export of raw mineral ores. Thailand moves to address demands of Japanese SMEs.

MNCs in the News-2015-09-11

China’s Ministry of Commerce (MOFCOM) reports that inward foreign direct investment (FDI) rose 22 percent in August year-over-year (YOY). Foreign companies express concern about China’s reform direction and stance towards foreign business. US business community hopes Chinese President Xi Jinping’s state visit to the US will push forward a US-China Bilateral Investment Treaty (BIT). Sources report Google will develop China-mainland version of its Google Play online store that meets government requirements. China’s Ministry of Finance charges Apple with underpaying more than $65 million of taxes in 2013, which Apple has since paid. China plans to host major technology meeting in Seattle in late September around the same time as Xi’s state visit to Washington. Taiwan liberalizes rules governing investment by local chip firms on the Chinese mainland. China’s National Development and Reform Commission (NDRC) Guangdong branch fines Dongfeng Nissan and 17 dealers more than $22 million for price fixing. Chinese and Russian firms conclude numerous investment deals on sidelines of China’s 70th anniversary V-Day ceremonies. Pakistan leases 2000 acres of land at Gwadar Port to facilitate China’s construction of the port’s first free economic zone. Indonesia will lengthen from 2 to 10 years the time before a contract expires that mining investors can seek a contract extension. Indonesia opts to retain ban on unprocessed mineral ore exports. Vietnam Decree 60 fails to boost foreign investment.