Cambodia

Dr. Jean-Marc F. Blanchard's picture

The BRI is Dead? Long Live the BRI? Part I: Present at the Creation

The Belt and Road Initiative (BRI), which consists of two main components, the sea-focused Maritime Silk Road Initiative (MSRI) and the land-focused Silk Road Economic Belt (SREB), came into being in 2013.[1] Since Chinese President Xi Jinping launched the MSRI and the SREB, there has been considerable positive and negative froth about the BRI. Enthusiasts have lauded the BRI as a foundation for building a community of common interests, solving infrastructure gaps in the developing world, helping countries industrialize, expanding people-to-people exchanges, and pluralizing international relations.

Mr. & Mrs. S.H. Wong Center for the Study of Multinational Corporations hosts fruitful workshop on Chinese Overseas Ports in Southeast and South Asia

In mid-December 2022 in the San Francisco Bay Area, the Mr. & Mrs. S.H. Wong Center for the Study of Multinational Corporations (Wong MNC Center) hosted a 1-1/2 day workshop entitled Chinese Overseas Ports in Southeast and South Asia: Profiling Problems and Progress.

Mr. & Mrs. S.H. Wong Center for the Study of Multinational Corporations orchestrates successful workshop on the effect of Chinese outward FDI in Southeast Asia

In early October, the Mr. & Mrs. S.H. Wong Center for the Study of Multinational Corporations (Wong MNC Center) hosted a workshop entitled “The Effects of Chinese Outward FDI in Southeast Asia” in the San Francisco Bay Area (California, USA). This 1-1/2 day workshop, organized and sponsored by the Wong MNC Center, drew leading academics, researchers, and policymakers from China, Malaysia, Singapore, Thailand, and the United States.

MNCs in the News-2022-January

China’s Ministry of Commerce (MOFCOM) touts that China will act to attract foreign direct investment (FDI) despite a challenging environment. In the wake of a backlash following its removal of Xinjiang products from its shelves, Guangdong Administration for Market Regulation fines Sam’s Club for deceptive consumer practices on its app. Beijing municipal government fines 7-Eleven China for the latter’s website maps that have problematic presentations of Taiwan and other territory. China’s work and the presence of dredgers at Cambodia’s Ream naval base concern the United States and others that China’s seeks to station military assets there. Indian tax authority probe causes it to demand Xiaomi India pay unpaid customs duties. Sri Lanka asks China for debt relief on loans used to pay for Belt and Road Initiative projects. Ruling parties from Japan and Taiwan agree to pursue cooperation on semiconductors to alleviate semiconductor shortages and address the China high-tech challenge. Japanese companies remain committed to Myanmar despite the latter’s serious political, economic, and other problems. The chair of Korea’s Fair Trade Commission (KFTC) promises to continue to improve the KFTC’s regulation while supporting innovation. Apple submits plan to Korea Communications Commission that allows alternative in-app payment systems and reduces payment fees.

Dr. Jean-Marc F. Blanchard's picture

Casting after Covid-19 or Premature Predictions about COFDI’s Demise

Last month, I wrote pessimistically about the prospects for foreign direct investment (FDI) in China in the post-coronavirus world. Contrastingly, I am not so pessimistic about the future of Chinese outward FDI (OFDI), though China’s economic situation, the challenged cash flows and balance sheets of Chinese investors (state-owned and private), and China’s ever present worries about capital flight will constrain OFDI amounts. This seemingly pollyannaish view derives from home (China) and host (recipient) country factors shaping Chinese OFDI (COFDI).

MNCs in the News-2020-02-21

China’s Ministry of Commerce reports that inward foreign direct investment (FDI) in January reflected a small increase over the same period last year, with South Korea’s inward FDI (IFDI) surging and IFDI in medical equipment and instrumentation showing strong increases. Foreign businesses seem attracted by the Greater Bay Area’s promise of market opportunities and ongoing market liberalization, though policy, legal, and regulatory barriers still deter/concern some. The coronavirus’s adverse effect on the movement of goods within and outside China has affected some Belt and Road Initiative projects. Chinese contractors in Indonesia reject foreign media reports coronavirus has had a significant adverse impact on the Jakarta-Bandung high-speed rail project. Japan issues new rules relating to FDI screening in the wake of the passage of its Foreign Exchange and Foreign Trade Act. Japan’s Shimizu and Indonesian state-owned enterprise form joint venture to extend Jakarta’s mass transit system. Korea’s LG Chem wins default judgement from United States (US) International Trade Commission regarding its lawsuit against SK Innovation for violating its electric vehicle rechargeable battery trade secrets. Korea’s Samsung faces Iranian retaliation for restricting Galaxy stores app services to Iranian users.

MNCs in the news-2019-05-03

Inward foreign direct investment (FDI) into China shows decent growth in the first quarter of 2019 with United States (US) FDI showing particularly strong growth. China announces moves to open its banking and financial sectors further. The United Arab Emirates (UAE)’s strategic location allows it to snare USD $3.4 billion Belt and Road Initiative (BRI) deals. Cambodia throws the dice for more China FDI deals while shifting further away from the European Union (EU). Japan ponders proposing rules to increase transparency and responsible financing for infrastructure investment in developing countries during the upcoming Group of 20 (G-20) summit. Lawyers representing South Koreans forced to labor for Japanese corporations during World War II requested a court to sell assets seized from relevant Japanese firms. South Korea Prime Minister Lee Nak-yon lobbies Kuwait to allow more South Korean companies to participate in infrastructure project in the country.

MNCs in the News-2018-07-20

BMW and Tesla roll forward in China as government paves the road to greater ownership stakes. Foreign financial institutions banking on increasing role in China’s Belt and Road Initiative (BRI). Cambodia’s Minister of Agriculture, Forestry, and Fisheries opined that Chinese outward foreign direct investment (FDI) in Cambodia’s agricultural sector was bearing substantial fruit for his country. Sumitomo hopes to use agreements with Japanese local government to entice Japanese manufacturers to use rental plant areas at its Vietnamese industrial parks. Takeda optimistic about getting China’s sign-off for USD $62 billion Shire acquisition deal despite concerns of Chinese retaliation over US tariffs. LG Chem plans new battery plant in Nanjing to take advantage of the Chinese government’s electric car incentives, which are expected to disappear by 2020. New investment wave expected to hit Vietnam’s textile and garment industry boosted by Vietnam-South Korea FTA.

MNCs in the News-2017-10-13

American businesses not uniformly in favor of Washington moving aggressively against China about the latter’s intellectual property right (IPR) violations. China’s Ministry of Commerce (MOFCOM) approves HP-Samsung printer deal subject to conditions. China’s high-speed rail project in Thailand off track due to environmental approval issues. Sinopec to sell Argentine oil assets and incur major losses in the process. Denso Corp. announces plans for USD $1 billion EV plant in Tennessee, designed to meet changing government automobile and environmental demands. Toyota reaffirms intent to build new Auris in UK, provided the British government avoids hard Brexit deal. Chinese investment in South Korea drops due Chinese government restrictions, hitting the South Korean economy. Korean retailers to shift from China to Southeast Asia as business and political tensions between Korea and China show no signs of improvement. Indonesia needs foreign investment to develop 30 ports and airports and Jakarta is supporting great foreign investment through deregulation and other measures. Indonesian and Belgian firms sign three infrastructure development memoranda of understanding to profit from Indonesia’s attractiveness. Sumitomo forms Thai real estate market joint venture (JV) to profit from the Thai government development of the country’s infrastructure. Thailand’s National Legislative Assembly approves new Eastern Economic Corridor stimulus bill in a move to attract foreign investment. Malaysian government attracts Chinese firm to build USD $3 billion steel production plant in the Malaysian state of Sarawak. Vietnam attracted over USD $25 billion in foreign direct investment in the first three quarters of this year owing to its political stability. Asian investors turning to Vietnam for expansion opportunities as domestic markets shrink and Hanoi opens key industries to investors.

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