CFIUS

MNCs in the News-2020-03-06

China assures foreign investors measures to “help firms resume operations and restore supply chains” disrupted by the coronavirus epidemic will treat “foreign and domestic companies equally.” Foreign intellectual property filings (invention patents and trademarks) in China show respectable growth in 2019 over the prior year due to legal, regulatory, and processing improvements. Beijing Kunlun on the verge of fulfilling United States (US) Committee on Foreign Investment in the United States (CFIUS) to sell Grindr. CFIUS reportedly has advised US President Donald Trump to block German firm Infineon, who counts China as a major client, planned purchase of Cypress Semiconductor. Japan’s Council on Investment in the Future contemplating ways to protect the economy from supply chains disruption in China caused by the coronavirus epidemic. The Japan Institute for Overseas Investment has concluded a Memorandum of Understanding with Zambia to join a network to facilitate FDI flows to Zambia. Korea Communication Commission develops arbitration proposal that might serve as a template for resolving conflicts between content providers and service providers. Vietnam to quarantine all visitors from South Korea potentially hindering Korean companies that are becoming increasingly prominent investors there.

MNCs in the News-2020-02-14

JPMorgan (China) intends to assume full ownership of all its mainland China operations by 2021 to take advantage of China’s financial sector opening. Chinese regulators approve United States (US) credit card firm Mastercard Inc.’s application to establish a bankcard clearing house joint venture. Peter Navarro urges the US to reduce its reliance on Chinese pharmaceutical and medical supplies. New US regulations expanding the authority of the Committee on Foreign Investment in the United States (CFIUS) with respect to the review of foreign direct investment (FDI) have gone into effect, with notable implications for Chinese FDI in the US. Coronavirus impact on supply chains and production in China accelerates move already occurring because of US-China trade war and rising labor costs in China. Japan is excluded from list of countries exempted from new CFIUS review ambit, but this may change. Merger of Korean shipbuilding giants potentially affected by Japanese filing of World Trade Organization petition, charging illegal subsidies. Korea’s SK Engineering & Construction wins mega-deal to build a beltway in Kazakhstan.

MNCs in the News-2019-09-20

Despite falling global foreign direct investment (FDI), China continues to show strength in attracting inward FDI (IFDI). Shanghai continues to be a magnet not only for IFDI, but also for regional headquarters and research and development facilities. The United States (US) has issued a regulation that will give the Committee on Foreign Investment in the United States new powers to scrutinize FDI which many believe are directed at China. US Senators send Federal Communications Commission a letter asking it to review the operating licenses of Chinese telecommunications providers in the US. Japan’s Fair Trade Commission (FTC) pushes Internet companies “to create a system to eliminate fake news and discriminatory postings.” Regarding Korea’s recent filing of a World Trade Organization complaint related to Japanese export controls, Japan has agreed to consultations. Korea FTC to decide if it will accept Apple Korea’s pledge to fix its alleged illegal collection of advertising fees from mobile carriers. Korea Electric Power Corp.’s coal mine development project in New South Wales rejected by Australia’s Independent Evaluation Committee.

MNCs in the News-2019-05-10

The ongoing China-United States (US) trade war coupled with other economic and political factors drives more firms to consider other locations besides China. China moves to take more steps to protect intellectual property (IP), partly to assuage the concerns of foreign investors. China poured record amounts of investment into US start-ups last year despite Sino-American tensions, but there are dark clouds on the horizon especially in regard to investment screening. Security and other concerns lead US Federal Communications Commission hangs up on China Mobile’s effort to operate and offer service in the US. Not a single European country has joined Washington’s call to boycott China’s Huawei. Japanese banks move to improve their anti-money laundering and terrorist financing practices so as to increase chances of good Financial Action Task Force review. Japanese foreign direct investment in the US surges for political and economic reasons, with some “red states” seemingly benefiting from the former. Seoul police investigate if BMW Korea’s Chairman covered up automobile defects. Lotte Chemical launches USD $3.1 billion ethylene cracker complex in Louisiana with strong political support from Korea and the US.

MNCs in the News-2019-01-11

During a meeting with Tesla CEO Elon Musk, Chinese Premier Li Keqiang stated his country welcomes investments from foreign firms and is open to deepening cooperation with them. An official from the Beijing Central Business District (CBD), which is undertaking steps to attract higher quality firms, touts foreign direct investment (FDI)’s contribution to CBD. Chinese merger & acquisition (M&A) activity in the US in 2018 plummets. Rising Committee on Foreign Investment in the United States (CFIUS) scrutiny of foreign attempts to purchase minority stakes in American companies has fueled a major drop in Chinese venture funding of United States (US) start-ups. Chinese FDI pours into Latin America as US presence wanes and Latin American technology firms thirst for funding. South Korea President Moon Jae-in accuses Tokyo of politicizing recent court decisions over wartime labor. Meeting with his British counterpart, Japanese Prime Minister Abe Shinzo urges the United Kingdom (UK) to avoid a no-deal Brexit. During his New Year Press conference last week, South Korean President Moon reiterated his support for economic cooperation between the two Koreas and called for a lifting of economic sanctions. State-run Korea National Oil Corp. (KNOC) moves to liquidate overseas resources development projects that generated huge losses for the firm in 2017.

MNCs in the News-2018-11-23

China working to improve opportunities for foreign players in its insurance sector. Shanghai looks to improve services for foreign companies which have a major presence in the city and are a major contributor to its economic successes. European Union moves forward on inward foreign direct investment (FDI) screening mechanism that is not directed at, but has a lot to do with China. Pursuant to Foreign Investment Risk Review Modernization Act (FIRRMA) the United States (US) Committee on Foreign Investment in the US (CFIUS) will now screen much smaller deals in various sectors newly deemed critical, greatly affecting Chinese deals. Philippines’ President Rodrigo Duterte’s move towards China does not seem to have paid off in terms of increased Chinese outward FDI (OFDI) and infrastructure in the Philippines. US prosecutors investigating Mitsubishi UFJ (MUFJ) for potentially allowing North Korea to launder money. To push forward infrastructure projects, Japanese Prime Minister advisor meets with Filipino officials soon after visit of Chinese President. South Korean manufacturers turn attention from China to Vietnam which offers a better policy, tax, and labor cost environment. South Korea’s POSCO Engineering & Construction Co.-led consortium wins major power plant contract in Malaysia.

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-2018-08-10

Shenmei Energy effort to invest in United States (US) solar power plants blacks out over opposition by Committee on Foreign Investment in the US (CFIUS). Expanding Chinese investment in Bangladesh generates increasing anxieties and opposition in India. Japanese minister says Donald Trump administration’s tariff plans could stall Japanese investment in State of Indiana. MUFG Bank doubles stake in Indonesia’s Bank Danamon after having gained approval from Indonesian financial authorities. Incheon Free Economic Zone facing biggest crisis since establishment in 2003 as it continues to fail to attract FDI. After various investment offers including from Korea’s Lotte Chemical, Pakistan Chemical Manufacturers Association urges government to include chemical industry in first 100 days plan.

MNCs in the News-2018-07-27

China’s Ministry of Commerce (MOFCOM) drafting rules that would subject more foreign direct investments (FDI) to its national security review process. Diverse United States (US) airlines move to comply with China’s order regarding the treatment of Taiwan on their websites and in maps. Chinese mergers and acquisitions activity in the US in the first half of 2018 has plummeted versus the comparable period last year due to political and other factors. Chinese investors kicking out their European soccer club investments due to Beijing’s crackdown on “irrational” overseas FDI. Rosneft, a Russian state-owned firm, files USD $1.4 billion lawsuit against Japanese and other stakeholders in Sakhalin oil and gas project. Just days after Japan passes controversial law allowing development of three new casino resorts, Genting Singapore forms five new subsidiaries in Japan. Laos to investigate possible construction flaws after dam collapse that was built by joint venture involving South Korean, Thai and Lao companies. Korea’s financial regulator helping Korean financial firms expand into overseas markets due to saturated domestic market.

MNCs in the News-2018-06-29

China’s National Development and Reform Commission (NDRC) unveils new nationwide negative list which opens about 17 more sectors and reduces various restrictions. China’s Ministry of Commerce (MOFCOM) and NDRC released a revamped negative list for foreign direct investment (FDI) in China’s free trade zones (FTZs) that has some better features than nationwide negative list. United States apparently to go with enhanced Committee on Foreign Investment in the United States (CFIUS) review process rather than establish mechanisms that specifically focused on restraining Chinese FDI. Nissan picks Thailand as first export market for new hybrid cars which may lead to local production if results and investment incentives are attractive. Sumitomo Mitsui Banking Corporation signs memorandum with Thailand’s governmental agency that the latter hopes will boost FDI. Samsung’s managing leaders recently convened to discuss a growing “China problem” as company confronts various political and regulatory problems. Taiwan’s GlobalWafers intends to follow through on USD $450 million Korean production facility amid increased Sino-US trade tensions. Malaysian government optimistic that investors’ confidence will be restored partly due to Prime Minister Mahathir’ effort to court FDI. Survey reveals Japanese companies interested in setting up manufacturing bases in Malaysia and are looking to invest in new sectors.

Pages