ChemChina

MNCs in the News-2017-04-07

China’s State Council creates seven new free trade zones bringing the total number in the country to 11. China’s State Administration of Foreign Exchange (SAFE) pushes foreign businesses to support its efforts to limit capital outflows from China. Prior to Donald Trump-Xi Jinping meeting, Chinese parliamentarian links the quality of the meeting to Google’s prospects for entering China. European Union regulators approve China National Chemical Corporations (ChemChina)’s massive acquisition of Syngenta while requiring some significant divestitures. Trump administration considers some dramatic steps to keep Westinghouse’s nuclear business out of Chinese hands. Sibanye Gold Ltd.’s proposed investment in Stillwater mining may not be golden because of American concerns over strategic materials access. Iran-Japan Investment Treaty enters into force on April 26 and may spur Japanese energy investment in Iran. Japanese foreign acquisitions hit a new record of almost USD $100 billion in fiscal year 2016, but performance is dubious. South Korea’s installation of the THAAD system continues to affect adversely Sino-Korean economic relations and Korean businesses. The fallout between China and South Korea over THAAD contributes to South Korean car manufacturers reducing production in their Chinese factories. Consortium of Chinese and Indonesian companies signs contract launching the construction phase of the Jakarta-Bandung high-speed train project. Afghan President Ghani encourages Indonesian investors to invest in Afghanistan and stresses the security of foreign investors as a top government priority. Tier-one American aerospace manufacturer may invest in Malaysia stimulating business for small and medium enterprises and creating high-income jobs. India and Malaysia sign investment deals with a value of USD $36 billion. Belgium plans to ramp up green energy investment in Vietnam.

MNCs in the News-2017-02-17

American business community becomes more favorable towards “reciprocity” policy towards China. Hejun Vanguard Group files complaint against sale of McDonald’s China and Hong Kong assets. Chinese firms’ pursuit of investment in critical sectors leads Germany, France, and Italy to ask European Union (EU) to give it more powers to investigate and block investments. The United States (US) Federal Trade Commission asks Syngenta for more information regarding its proposed acquisition by China’s ChemChina. In the face of potential restrictions on Chinese firm investments in non-core businesses, Dalian Wanda eyes European bank deals. Japanese companies face investigation by South Korea’s transport ministry which has begun to investigate more firms in the wake of the Volkswagen emission manipulation scandal. Toshiba will remove itself from work on the UK’s new Moorside nuclear plant. South Korea’s Korea Electric Power Corp. (KEPCO) has started its first wind power plant in Jordan. Korean outward foreign direct investment (FDI) grows significantly in 2016 with a large increase in money flowing to the US. Indonesian loosening of ban on raw mineral ore exports has many implications. Indonesian regional elections have big implications for Indonesia’s inward FDI (FDI)

MNCs in the News-2017-02-10

China’s goal of shifting to a more consumption, service, and higher-valued added economy is reflected in subnational level data. China remains optimistic about Chinese outward foreign direct investment (FDI) in 2017, but plans to guide it to and sees it encountering many challenges. Syngenta believes the ChemChina-Syngenta acquisition will close in second quarter of 2017 despite remaining regulatory hurdles. China halts major Lotte construction projects in northeastern China in apparent punishment for South Korea’s embrace of THAAD. Prior to Japanese Prime Minister Abe Shinzo’s early February meeting with US President Donald Trump, Sharp Corp. announced it would build a liquid crystal display panel plant in the US. Softbank CEO Masayoshi Son touts his progress in fulfilling his job creation promise to U.S. President Donald Trump. Chinese forthcoming revised anti-monopoly guidelines worry South Korean firms which fear they might be used against it. In the face of political pressures, Samsung Electronics will build its first home appliance plant in the US despite fears about the price competitiveness of US production. Moody’s Investor Service upgrades its credit outlook for Indonesia with positive implications for Indonesia’s ability to attract FDI. Indonesian aviation regulatory burdens cause Tigerair to cease its flights to Bali island.

MNCs in the News-2016-12-09

China’s Ministry of Commerce (MOFCOM) and National Development and Reform Commission (NDRC) have reduced the number of sectors on its foreign investment catalog restricted and prohibited lists by more than 30 percent. China’s State Administration of Foreign Exchange (SAFE) has denied there are restrictions on foreign firms' crossborder profit transfers. The NDRC has imposed a more than $17 million fine on Medtronic for violating China’s anti-monopoly laws. China’s national cybersecurity standards body, The Technical Committee 260, ignores foreign company pleas about its technical standards for operating systems, microprocessors, and office software. China’s concerns about capital flight and money laundering led it to strengthen its review of overseas deals exceeding USD $10 billion and in an overseas entity unrelated to the investor’s core business. China launches $22 billion fund to support overseas investments by Chinese companies. Chinese investment in Europe soars over 2015 totals. Softbank owner Masayoshi Son promises Donald Trump he will make a massive investment in the US. South Korea’s largest steel pipe producer buys two oil country tubular goods (OCTG) related facilitates in the US to escape possible US trade barriers. Indonesia’s Ambassador to Singapore encourages greater investment from Singapore, Indonesia’s largest foreign investor. Chinese investment in Indonesia soars, helping with infrastructure development, but raising some concerns. Chinese delegation from Zhejiang province to travel to Indonesia to assess the political risk environment in the country. Foreign companies in Thailand ask Prime Minister to update its laws pertaining to foreign workers. Official Thai delegation to China hopes to attract more investment, reinforce the relationship, and increase cooperation on China’s One Belt, One Road initiative. Malaysian Prime Minister Najib Razak rejected the notion he was trading the country’s sovereignty for foreign investment. Vietnam’s FDI inflows reach record highs and Vietnam promises steps to attract more investment.

MNCs in the News-2016-10-28

Chinese outward foreign direct investment (FDI) exceeds inward FDI (IFDI) by an increasing amount in September and for the first nine months of 2016. Chinese companies embrace diverse strategies to ensure host country stakeholders embrace their investments. ChemChina’s interactions with the European Union (EU) over its Syngenta acquisition raise new uncertainties about the deal. Chinese FDI flows into Germany now are almost double what they were for the prior ten years! Businesses from the Philippines glom in large numbers onto President Roberto Duterte mid-October trip to China. China Everbright Ltd. CEO criticizes the motives behind some COFDI. Toyota is waiting for news from the United Kingdom (UK) about the post-Brexit tariff situation before making any decisions about future investments in the UK. Despite Brexit, Nissan opts to built its new Qashqai model in the United Kingdom (UK). Japanese firm wins new contract work for Delhi-Mumbai freight railway. Marubeni and Sojitz win multi-billion dollar gas-fired power plant station contract in Indonesia. Korea Electric Power Corporation signs mega-contract to operate four UAE nuclear power plants that it also will build. FDI flows into Indonesia increased 7.8 in the third quarter year over year (YOY). Japanese firms show increasing confidence in increasing their investments in Indonesia. FDI flows into Thailand increase minimally, reflecting limited confidence in the country’s growth prospects. Foreign technology firms push Thailand to undertake various measures to maintain and advanced its status as a “digital nation.” Malaysian Prime Minister Najib Razak will focus on getting more Chinese investment during his trip to China. PowerChina International, Shenzhen Yantian Port Group, and Rizhao Port Group will work with Malaysia on a deep sea port in the Strait of Malacca.

MNCs in the News-2016-09-30

China’s Ministry of Commerce (MOFCOM) dismisses foreign business concerns about the investment environment for foreign direct investment (FDI). Microsoft, whose Windows 8 was banned two years ago on government computers, is now working on a localized government operating system for China. Outward FDI (OFDI) by Chinese financial institutions jumped 26 percent in 2015 while Chinese OFDI hit a new record. Chinese private firms become the dominant Chinese overseas direct investors in 2015. ChemChina seeks European Union approval of its immense acquisition of Syngenta AG. The parties involved in the Hinkley Point nuclear power complex project, which involves a major Chinese role, finally signed a contract for the deal. China and Thailand struggle to settle issues pertaining to a major joint railway project. China moves to bolster its investment, trade, and other forms of cooperation with Cuba. Japanese business delegation asks China to enhance exit procedures and antitrust rules. Indonesia may impose more than USD $400 tax bill on Google. Foreign pharmaceutical companies pour big money into Indonesia in anticipation of new health care opportunities. FDI accounts for more than 30 percent of Malaysian investment in the first six months of 2016. Thailand is moving to tighten tax collection rules for foreign internet and technology firms. Vietnam moving towards eliminating various caps on foreign involvement in its banking sector. Vietnam’s planned divestiture of Vinamilk could be a very positive sign for the country’s privatization drive.

MNCs in the News-2016-08-26

Committee on Foreign Investment in the United States clears ChemChina’s massive acquisition of Swiss agrochemicals giant Syngenta. Indonesia awards Chinese consortium construction permit for the full length of a USD $5 billion Jakarta-Bandung high-speed railway line. Sino-Vietnamese tensions over the South China Sea have affected the operations of Chinese firms in Vietnam, but many Chinese businesspeople still feel Vietnam has investment appeal. Huawei works with Nigerian government to advance the latter’s national ICT objectives. Malaysia’s Sarawak is working on creating an appealing physical ecosystem to ensure it remains one of the favorite investment destinations for foreign investors.

MNCs in the News-2016-06-17

China’s inward foreign direct investment (IFDI) shows a slight decline in May year-over-year (YOY), though the figures for the first five months of 2016 showed a moderate increase (YOY). Chinese Premier Li Keqiang tells German officials and executives that China plans to improve the investment environment for them as well as others. In China, German Chancellor Angela Merkel calls for independent judiciary and level playing field for foreign firms. XpressWest unilaterally terminates its contract with China Railway International for the construction of a high-speed railway linking Las Vegas and Los Angeles. China National Chemical Corp. (ChemChina) resubmits its Syngenta deal to the Committee on Foreign Investments in the U.S. for national security review. South Korean investigators descend on Lotte Group in connection with allegations of a slush fund. Korea and Azerbaijan agree to expand economic cooperation in areas like investment and infrastructure. South Korea plans to reform government-run energy companies to improve their financial soundness and operating efficiency. Indonesia and Japanese oil giant Inpex reach a deal on the multi-billion dollar Masela onshore liquefied natural gas (LNG) plant which may bring more new opportunities for Japanese business to invest in Indonesia. Japanese firms look very favorably upon Vietnam as an investment destination.

MNCs in the News-2016-03-11

China’s Ministry of Commerce (MOFCOM) reports that foreign direct investment flows into China topped USD $22.5 billion in the first two months of 2016. Bristol-Myers Squibb moves to deal with fallout of US Securities and Exchange Commission (SEC) Foreign Corrupt Practices Act settlement relating to its China joint venture. Chrysler to recall nearly 21,000 vehicles in China that have an oil pipe defect. Chinese outward foreign direct investment (COFDI) soars YOY with smaller and private enterprises becoming more important proportionally. Statistics for 2015 show strength of COFDI in Europe. China sees room for more COFDI in Russian agriculture as well as agricultural cooperation. Some believe COFDI in the US has the potential to influence voting patterns in some localities. Chicago Transit Authority awards CSR Sifang America a USD $1.3 billion railcar supply order. Mitsubishi partners with Korean firm on government awarded coal-fired power plant project in Vietnam. Foreign businesses in Korea voice concern about the discretionary legal and regulatory environment and call for greater stability. Korea Trade-Investment Promotion Agency has concluded a Memorandum of Understanding with Italy’s SIMEST that will facilitate more Italian investment in Korea. Korea and Egypt expand their bilateral cooperation increase infrastructure and cooperation opportunities for Korean firms in Egypt. The liberalization of Indonesia’s cinema sector draws increases foreign investor interest in cinema screen construction in the country. The Thai Business Development Department (TBDD) and Franchise License Association (FLA) will cooperate to assist franchise business operators conduct business in ASEAN countries, China, and Japan. State Railway of Thailand (SRT) governor welcomes foreign construction companies to participate in government investment projects provided they find a Thai partner and obey Thai rules and regulations.

MNCs in the News-2016-03-04

According to China’s Ministry of Commerce, China plans to “lower entry barriers for foreign investors.” MOFCOM representatives also indicate that “China will support foreign participation in its drive to reform state owned enterprises (SOEs).” Foreign Ambassadors present letter to China’s Ministry of Public Security to express their anxieties about China’s new counterterrorism law, draft security law, and draft law on the management of foreign non-government organizations. Qualcomm reaches settlement with U.S. Securities and Exchange Commission regarding allegations of improperly hiring the relatives of Chinese officials and giving lavish gifts. According to news reports, in contrast to its battles with the US FBI, Apple is showing great flexibility towards the Chinese government. Three members of the US Congress ask for increased scrutiny of Zoomlion’s purchase of US Terex Corp. Problems caused by increased scrutiny of Chinese outward investments led to deals with unusual termination fees and deal terms. Massive Chinese state-owned enterprise investments in Europe fuel concerns. Olympus Corp. will pay the US Justice Department a $623 million fine due to kickback payments and its giving of luxurious gifts. Korean government-business delegation journeys to Iran and concludes numerous deals. A South Korean wins Bolivian deal to build a new city in Bolivia. Indonesia plans to set up a “China Desk” to better Chinese investors. Vietnam shows substantial increases of FDI during the first two months of 2016. Vietnam needs to provide more information to solve problems of foreign investors.

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