BRI

MNCs in the News-2020 December

China’s National Development and Reform Commission (NDRC) and Ministry of Commerce (MOFCOM) release revised 2020 catalog of encouraged industries for foreign direct investment (FDI). China’s NDRC issues rules relating to FDI national security reviews. China’s Standing Committee of National People’s Congress considering amendment to criminal law that would increase prison terms for intellectual property rights (IPR) crimes. Chinese outward FDI (OFDI) in Latin America in 2020 a bright spot versus Chinese OFDI (COFDI) in other regions like Europe. China’s Ministry of Foreign Affairs stresses at news briefing that FDI in Belt and Road Initiative (BRI) and CPEC has not declined with many projects showing good results despite Covid-19. United States (US) Congress to provide billions of dollars to fund removal of ZTE and Huawei equipment from US telecommunication carriers’ systems. Japan not succeeding in attracting foreign financial firms due to tax, red tape, language barriers, and other factors. Japan 5G players gain potential new openings due to global crackdown on Chinese companies such as Huawei and ZTE. United Kingdom (UK) and European Union (EU) post-Brexit deal may not prevent Japanese carmakers from leaving the UK. Japanese group to supply $1.8 billion for coal-fired power plant in Vietnam despite complaints about the environmental impact of the plant. Korea Fair Trade Commission (KFTC) will administer a survey to Google Play Store users to accelerate its review of Google’s plan to increase application transactions to 30 percent. Hyundai Heavy Industries Holdings receives Chinese government approval for its $1.8 billion acquisition of Daewoo Shipbuilding and Marine Engineering. Korea electric vehicle (EV) battery makers move to diversify away from China, turning to other countries and local firms for raw materials and components. LG Group has signed a major investment deal with Indonesia that would facilitate its access to EV battery raw materials and product.

MNCs in the News-2020 November

Foreign direct investment (FDI) into China continues to surge despite Covid-19 and other challenges. China’s Ministry of Commerce says China will take further measures to liberalize ownership restrictions for foreign firms in the service sector. Shanghai shows strength in attracting inward FDI (IFDI) and adds to its regional headquarters and research and development center totals. India moves to ban an additional 43 Chinese phone apps including Aliexpress due to concerns about consumer privacy and national security. China states it will continue to support the construction of the China-Pakistan Economic Corridor (CPEC). Malaysian state government of Melaka terminates $10.5 billion Melaka Gateway project. Nissan moves to sell only electric vehicle (EV) or hybrid cars in China to meet Beijing’s goal of all new vehicles being eco-friendly. The Regional Comprehensive Economic Partnership (RCEP) is expected to have notable impacts on Japanese FDI as well as supply chains given its provisions relating to tariffs, rules of origins, and intellectual property. Brexit may lead the European Union (EU) to slap tariffs and other requirements on EVs which have significant adverse effects on Japanese EV production in the United Kingdom. Tokyo Gas and Marubeni will construct a liquefied natural gas fired power plant in Vietnam. Korea’s Fair Trade Commission reportedly has come to the conclusion that Google abused its market position to prevent modified Android operating systems. The labor union at IKEA Korea strikes for similar wage treatment to workers at IKEA workers elsewhere. Some Korean steelmakers return back home due to government subsidy program. Korean consortium wins engineering, construction, and operations contract for $1 billion bridge project in Bangladesh.

Wong MNC Center orchestrated volume entitled China’s Maritime Silk Road, Africa, and the Middle East: Feats, Freezes, and Failures publicized on Palgrave MacMillan

China’s Maritime Silk Road, Africa, and the Middle East: Feats, Freezes, and Failures is now publicized on the Palgrave MacMillan website. This edited volume, initiated and brought to fruition by the Mr. & Mrs. S.H.

MNCs in the News-2020 August

On October 1, China will establish a new compliant mechanism that, among other things, will allow foreign business associations to raise concerns about the investment environment. China’s Banking and Insurance Regulatory Commission has given permission for a second foreign asset management joint venture (JV), involving BlackRock and Temasek. Looking to exploit China’s financial sector opening, JPMorgan will spend a huge amount of money to take full control of its China mutual fund JV. Foreign pharmaceutical companies fail to win public hospital bulk medicine purchase contracts in China due to an apparent unwillingness to cut prices to near zero. China based firms such as Foxconn reportedly looking at expanding their presence outside China in countries such as Mexico due to troubled political economic environment. Sino-Indian tensions drive Alibaba to suspend plans for new investments in India. US backlists 24 Chinese firms because of their role in the building of South China Sea artificial islands. Chinese outward foreign direct investment (FDI) in Belt and Road countries jumps nearly 29 percent for the first seven months of 2020 year-over-year. Japan will move to improve administrative procedures, such as allowing English paperwork, to draw in more FDI and improve Japan’s prominence as a financial center. Japan is considering tax and other measures to enhance Japan’s role as an international financial center. A Japanese ruling party official raises concerns about TikTok with respect to data privacy and national security. Japan, Australia, and India are discussing a supply chain resilience initiative. South Korean regulators are watching what the US, Japan, and India do vis-à-vis TikTok before they decide how to address relevant data privacy and national security concerns. India’s exclusion of Chinese telecommunications players like Huawei and ZTE from its 5G network may create openings for Korean players.

Executive Director Jean-Marc F. Blanchard participates in Brazilian Center for International Relations China Analysis Group Webinar on Asian Supply Chains and Decoupling

On May 6, 2020, Dr. Jean-Marc F. Blanchard, Executive Director of the Mr. & Mrs. S.H. Wong Center for the Study of Multinational Corporations (Wong MNC Center) participated in a webinar organized by the China Analysis Group of the Brazilian Center for International Relations (CEBRI). For this timely CEBRI webinar, which focused on the theme of “Asian production chains and technological decoupling,” and included participants representing institutions in Brazil, China, and the United States (US), Dr.

MNCs in the News-2020 May

China’s recently issued Guideline regarding its economy contains numerous favorable, albeit general, offerings for foreign direct investment (FDI). To retaliate against United States (US) exports controls against Huawei, China readies itself to add US companies to an “unreliable entity list” which may subject them to various sanctions. US Chamber of Commerce decries potentially excessive measures by US government to move supply chains away from China. United Kingdom looks to reduce Huawei involvement in its 5G network with Huawei potentially being removed from all telecommunications infrastructure by 2023. Chinese contractors plan to make substantial progress on Indonesia’s Jakarta-Bandung high-speed rail over the balance of 2020. US pressure influences Israel to reject Hong Kong firm’s bid on strategically located, large-scale desalination plant. Japan categorizes firms into three groups as part of its effort to clarify what review processes apply to FDI pursuant to its Foreign Exchange and Foreign Trade Act. New Japanese law requires technology companies operating e-commerce websites and apps to submit annual reports, notifications of contract changes, and establish complaint processes. In quest for supply chain resiliency, Japan will provide subsides to encourage Japanese firms to return to Japan or move to Southeast Asia. Realized inward FDI into Korea in the first quarter 2020 plunges over similar period last year due to shorter worker hours, higher minimum wages, and other factors. South Korean parliament passes legislation that likely forces content providers to share network costs with local internet service providers. US support for the Economic Prosperity Network raises fears among Korean companies they will be pushed to shift FDI to the US. Korean firm to make huge investment in UAE pipeline as part of its consortium’s winning bid.

MNCs in the News-2020-04-24

According to China’s Ministry of Commerce (MOFCOM), more than 1000 companies including many from the United States (US), Germany, and Japan have registered from the 2020 November China International Import Expo. MOFCOM reports that China’s non-financial outward foreign direct investment (FDI) declined less than 1 percent year-over-year when compared to the 1st quarter of 2019. Many interpreted a recent India notification indicating special government scrutiny of FDI from bordering countries as directed against China as a time when Indian companies might be vulnerable. Canyon Bridge, the Chinese owner of the United Kingdom (UK)’s semiconductor designer Imagination Technologies, says the company’s headquarters will stay in the UK. Japan will add the medical sector to the list of sectors where FDI is subject to review pursuant to the Foreign Exchange and Foreign Trade Control Law. Japan’s NEC wins major deal to supply observation satellite to Vietnam. Korea’s Fair Trade Commission needs more time to review Delivery Hero’s deal to acquire Woowa Brothers due to concerns about the anti-competitive effects of the deal. Korea’s GS Engineering & Construction concludes a roughly $450 million deal with the Singapore’s Land Transport Authority to build an Integrated Train Testing Center.

MNCs in the News-2020-04-03

Shanghai touts the signing of USD $16 billion in foreign direct investment (FDI) deals as well as a new investment platform. China’s Ministry of Commerce (MOFCOM) will move to open the oil and gas industry chain in East China’s Zhejiang Pilot Free Trade Zone (FTZ) to, among other things, bring in strategic FDI. Senior managers at the Gwadar Port in Pakistan state the coronavirus has not had a serious negative effect on the port’s operations. Hungarian government moves to classify details of loan to finance Budapest-Belgrade rail project, arguing it would help it secure the loan. The production of Japanese automakers in China plummets in February and global output likely to drop due to factory shutdowns in the United States (US) and Europe. Asashi Group (Japan) has received approved from Australian competition authorities to complete its purchase of Australia’s Carlton & United Breweries subject to certain divestitures. Korea’s HDC Hyundai Development Co. acquisition of Asiana Airlines slowed due to delays in competition authority review work resulting from the coronavirus. Korean battery manufacturers in China to benefit from Beijing’s extension of electric vehicle (EV) battery subsidies because they include foreign battery makers.

MNCs in the News-2020-03-27

The China Council for the Promotion of International Trade (CCPIT) has issued more than 6400 force majeure certificates to help suppliers deal with their inability to meet their contractual obligations. Per China’s Ministry of Commerce, Chinese outward foreign direct investment (FDI) for the first two months of 2020 totaled USD $15.5 billion, a 1.8 percent year-over-year (YOY) increase. China’s MOFCOM reports that Chinese companies put $2.72 billion into 48 countries along the Belt and Road, an 18.3 percent jump YOY. Chinese construction companies prove adept at rapidly building hospitals in countries facing medical infrastructure challenges in coronavirus era. In the first defense product export deal since Japan eased its arms trade ban in 2014, Mitsubishi will sell air radar systems to the Philippines. In an atmosphere where automobile companies are expected to help by producing supplies to deal with Covid-19, Toyota North America moves to step up production of related goods. Samsung Electronics and LG Electronics get exemptions to send engineers to their plants in Vietnam. US International Trade Commissions released documents explaining its default judgement supporting LG Chem’s accusations of trade secret theft by SK Innovation.

MNCs in the News-2020-03-20

China’s National Development and Reform Commission (NDRC) notes China will strive to help foreign businesses resume normal operations, will shorten the negative list for foreign direct investment (FDI), and will advance major foreign-invested projects. Shanghai city government highlights that major foreign financial firms continue to inject FDI into the brokerage, asset management, and securities sectors, among others, despite the Covid-19 epidemic. China State Construction Engineering Corporation places first tower cap in mega skyscraper project for Egypt’s new administrative capital, part of the Belt and Road Initiative. Japan’s Ministry of Finance starts to solicit public comment on future revisions to the Foreign Exchange and Foreign Trade Act. List of Japanese companies suspending operations at factories in the United States (US) due to coronavirus grows. Korea Rail Network Authority (KRNA) wins a bid from Thailand to manage a high-speed railway linking three airports. Hyundai Rotem, a subsidiary of Korea’s Hyundai Motor Group, ordered by Brazil’s Ministry of Labor to pay large fine plus moneys due workers for failing to pay workers overtime pay.

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