BRI

Executive Director Jean-Marc F. Blanchard to speak at UNIDO New Silk Road Economic Belt event on April 18, 2018

On April 18, 2018, Dr. Jean-Marc F. Blanchard, Executive Director of the Mr. & Mrs. S.H. Wong Center for the Study of Multinational Corporations (Wong MNC Center), will speak at the United Nations Industrial Development Organization (UNIDO) conference on "Fostering Inclusive and Sustainable Industrial Development (ISID) in the New Silk Road Economic Belt: Leveraging potentials of Industrial parks, Zones, and Cities." Dr.

MNCs in the News-2018-03-23

US companies dilute proposed legislation that might have dampened their exports to/sales in China of technology. 2018 China Enterprise Cross-Border M&A Special Report shows decline in both the number and volume of Chinese merger and acquisition (M&A) deals in 2017. China’s crackdown on CEFC Energy throws into uncertainty a proposed mega investment in Russia’s Rosneft. Japanese may loosen regulations on foreign direct investment (FDI) in Japanese broadcasters. Toshiba chip sale deal awaits regulatory approval from China. South Korea company wins multi-billion bridge building contract in Turkey. South Korea and Russian companies lay foundation for cooperation in building transportation and other infrastructure for Korean peninsula and elsewhere. Indonesia’s Environment and Forestry Ministry to sue American mining company Freeport McMoRan for massive environmental damages. Indonesian official embark on road show to bring more private FDI into the country’s underfunded infrastructure projects. Thai government alarms by announcing intention to change the country’s Foreign Business Act. Malaysia finalizes deal bringing USD $7 billion of Saudi FDI into the Pengerang Integrated Complex. UAE company will pour more than USD $1 billion to develop offshore Malaysian gas site. Vietnam’s State Audit Office slaps back taxes bill on just privatized former state-owned enterprises (SOE) Sabeco. Vietnam aims to divest major portion of PetroVietnam Gas to garner strategic investment and massive amounts of funds.

MNCs in the News-2018-03-16

China's Ministry of Commerce (MOFCOM) reports small growth in inward foreign direct investment (FDI), albeit with significant growth in high-tech inward FDI (IFDI). United States (US) President Donald Trump likely to impose USD $60 billion of tariffs on Chinese goods to punish Beijing for forcing American companies to transfer technology. China's financing for Belt and Road Initiative (BRI) energy projects slows significantly in 2017. Chinese report that BRI projects are delivering living standard and work improvements to locals. Panasonic starts mass production of hybrid car batteries in China as Beijing's push for electric vehicles is expected to boost demand. JFTC raids Amazon's Japanese headquarters over suspicions that online retailing giant violated anti-trust regulations. Two Korean builders win order for a USD $740 million smart hospital project in Singapore. Kumho workers stage strike in protest of foreign ownership as Qingdao Doublestar acquires struggling South Korean tire company. Jokowi states that survey reveals that Indonesia ranks second when it comes to the world's attractive countries for investors. China has stated its intent to help fund and build what could become Indonesia's longest bridge. Honeywell repeats commitment to bring investment to and cooperate with Thailand given its plans fit the government's Thailand 4.0 vision. Mercedes-Benz and Thai JV partner to invest $123 million to build EV batteries in Thailand. Vietnamese authorities to review large foreign investment projects in the wake of withdrawal of USD $3.2 billion refinery and petrochemical project. Binh Duong province (Vietnam) grants 15 investment certificates for foreign firms investing in the region.

MNCs in the News-2018-02-23

China to use mechanism of internationalization including inward foreign direct investment (FDI) in mixed ownership reform to enhance ability of state-owned enterprises. For 2018, Guizhou aims for $150 billion in investment money from outside the province including small and medium-sized enterprises from foreign countries. Chinese outward FDI in January 2018 jumps over same period a year earlier. Chinese government constraints on outward FDI become even tighter. Japanese airbag manufacturer Takata receives US court approval for its bankruptcy exit plan. Japanese steelmaker JFE Holdings concerned Trump's protectionist rhetoric could impede own investment plans to build US based plant. Korea Expressway Corporation signs MoU for Indian highway construction following agreement between Korean and Indian government to support USD $10 billion in Indian infrastructure. GM proposes investing USD $2.8 billion in its Korean operations, but calls for government assistance to maintain its remaining plants. Russian diversified energy holding company Inter Rao seeking to develop Indonesia's Bandar Kayangan Global Hub. Finance Minister says Indonesia to revise tax incentives to attract more investment. Thailand's government approaches Japanese robotics maker and other engineering manufacturers to build facilities along its EEC. Manila Water Company acquires 18.72 percent stake in Thailand's Eastern Water to enter Thailand's EEC. Thailand's Superblock Pcl plans to invest USD $1.76 billion to build wind farms in Vietnam in sync with Hanoi's renewables policy.

MNCs in the News-2018-02-09

Following the Mercedes-Benz Dalai Lama ad incident, China's Ministry of Foreign Affairs asks foreign firms to follow "basic ground rules." China Banking Regulatory Commission promises steps to make it easier for foreign banks to do renminbi business in China. Google China works to win friends by searching for information about Chinese overseas investment opportunities and overseas brand successes. China's capital control have adversely impacted some Chinese investing in the technology sector in the United States. Nissan to invest USD $9.5 billion in China with JV partner Dongfeng Group as carmaker strives to exploit China's production quotas for EVs. MGM Resorts plans to set up integrated resort in Japan's Osaka Prefecture because it plans to establish tourism facilities. Hyundai finally on track to receive Chinese government subsidy for EVs after switching to Chinese battery manufacturers. Seoul Semiconductor files suit against Mouser Electronics for dispensing products that infringe upon patent held by it. Indonesia's investment board cites "frequent and abrupt changes in regulations" as major cause of foreign investor wariness when investing in Indonesia. UAE business delegation met with Indonesia's Industry Minister for preliminary talks for producing compressed natural gas in Indonesia. Thailand's parliament approves USD $45 billion EEC project to stimulate country's underdeveloped east. Nissan working with alliance partner Mitsubishi and Bangkok to produce electric cars and batteries in Thailand for export abroad. Malaysia expects more Chinese investment in real estate, manufacturing and logistics industries as Belt and Road Initiative funds find their way into the country. State run Saudi Aramco and Malaysia's state-owned Petronas are raising USD $8 billion to begin construction on planned Malaysia refinery and petrochemical complex. Edge Glass Joint Stock Company begins construction of USD $220 million Vietnam glass factory encouraged by favorable local government measures. US tax reforms causes Vietnam to worry about future foreign investment prospects.

Dr. Scott MacDonald's picture

The Return of the Great Game and Infrastructure

The Great Game was a geopolitical contest for influence and dominance in Central Asia between Tsarist Russia and the British Empire that occurred in the 19th and early 20th centuries. The game was played out over vast distances, with a mix of spies, money and armies.

MNCs in the News-2018-01-08

Chinese drug approval authorities likely to approve several blockbuster foreign drugs in 2018. Hyundai Motor Group faces declining sales growth in 2018 in large part due to political and economic challenges in China. China State-Owned Assets Supervision and Advisory Commission (SASAC) to issue new guidelines to improve behavior of state-owned enterprises (SOEs) in various areas. United States (US) Committee on Foreign Investment in the United States (CFIUS) concerns leads China’s Ant Financial and US MoneyGram to terminate the former’s acquisition of the latter. Japan’s Toshiba Corp sells floundering US nuclear business Westinghouse, which went bankrupt after regulations and other factors stalled many of its projects, to Canada’s Brookfield. US legal process for Takata Corp.’s US unit coming to completion, which should allow company to make payouts to claimants who suffered from Takata’s faulty airbags. Korea urges US policy makers to reconsider the US International Trade Commission's recommended special tariff on imported Korean washers. Lotte Group struggling to shed its politically troubled Chinese hypermarket chain after talks with Thai conglomerate failed to produce agreeable sale price. Indonesia’s state-owned energy company Pentamina took back control of Indonesia’s largest oil and gas block helping Jakarta to expand its control over domestic energy production. Indonesia’s Investment Coordinating Board launches several measures to spur 10 to 14 percent year on year growth in FDI. Thailand’s Board of Investment expects FDI into its EEC to continue to grow as new EEC policies are implemented and foreign companies become familiar with EEC requirements. Chinese FDI into Malaysia is expected to move out of infrastructure and property development and into new sectors due to China’s Belt and Road Initiative. Japanese Ambassador touts that Japanese firms have a good chance to win Kuala Lumpur-Singapore high-speed rail project. Vietnam’s Ministry of Transport has set a new deadline for long delayed Chinese-funded Cat Linh rail project

Dr. Scott MacDonald's picture

China Needs to Rethink its Game

One factor that has allowed China to expand its global role has been financial diplomacy in the form of loans, business deals and other investments. However, in overlooking issues such as public discontent with dictatorships, corruption and economic mismanagement, Chinese companies have also assumed considerable risk.

Dr. Amitendu Palit's picture

EODB Rankings Augur Well for BRI Investments

The recently released World Bank Ease of Doing Business (EODB) rankings have interesting findings relating to some of the countries involved in China’s Belt-and-Road (BRI) infrastructure project. One of the major groups of countries to have improved EODB rankings since last year is Central Asia. Kazakhstan (+1.06), Azerbaijan (+3.12), Uzbekistan (+4.46), Ukraine (+1.90), Kyrgyz Republic (+0.54) and Tajikistan (0.93) have all moved up the EODB ladder.

MNCs in the News-2017-11-03

The door partly closes on North Korean businesses in China as Beijing tightens sanctions. Analysis reveals Springer Nature has been blocking access to articles in China. Consultancy report highlights expectations of greater Chinese outward investment over the next 12 months with the Belt and Road Initiative anticipated to be a key causal force. The Philippines secures USD $6 billion in Japanese investments after President Duterte’s official visit to Japan. Mitsui Engineering and Shipbuilding Co. to build crane manufacturing plant in Indonesia’s Batam Island free trade zone to take advantage of incentives. South Korean government hopes to prepare host of large-scale investments in China to be announced during upcoming China-South Korea summit. South Korea’s Ministry of Trade, Industry and Energy to decide upon approval of LG Display’s politically sensitive proposed multibillion-dollar OLED production facility investment in China. Indonesia’s FDI shows good growth in the third quarter. Indonesia’s Finance Minister challenges stigmas associated with Chinese investment. Central Group and JD.com announce USD $528 million open system online marketplace JV that links to government’s 4.0 initiative. Thailand’s state-owned PTT Exploration and Production booked another impairment charge due to its delay in moving ahead with investment on its Canadian Mariana Oil Sands project. In its annual report, the Malaysian government stresses positive impacts of the Belt and Road Initiative for the country and the region. Japanese ODA programs increasingly attracting Japanese investors to Vietnam. Vietnam expects USD $30 billion FDI by end of 2017 with majority of investment coming from APEC countries.

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